Capital journal. (Salem, Or.) 1919-1980, 1922-08-29
TO REVISE
WAREHOUSE LAW
IS CONSIDERED
BY ] Bart Campbell


Washington, Aug. 29-The House
committee on agriculture is expect
ed soon to take up the tight amend
ments to the United States Ware
house Act proposed by Senator
Harris of Georgia, and already ag-
reed to in the Senate. The main
amendment broadens the warehouse
act to make it possible for the
storing of any agricultural product,
in the discretion of the Secretary
of Agriculture, instead of only cot
ton, wool, grain, tobacco and flax
seed, as provided in the present
law passed in August 1916.
The Harris amendments would re-
move the present limit of one
year for licenses to warehouses, ex-
tend a system of licensing persons
to inspect and sample products,
increase the penalties for violation
of the law and make it possible for
a farmer suffering from losses
through wrongdoing to receive
payment as a penalty as well as the
forfeiture of the bonds Of ware
housemen.
Sentor Harris said nearly all
legislation now proposed for the
extension of rural credits and as
sistanee to agriculture possessed
features touching on the eligibil.
ity of federal warehouse receipts,
and it was necessary the ware
house act be made as broad as pos
sible TO render the greatest possi-
BILE assistance to farmers.
when warehouse becomes Ii
censed under federal act the pat
rons of the warehouse will enjoy
a 25-per-cent reduction in insur-
anee rates, and the warehousemen
themselves will be granted a reduc-
tion of 25 per cent in such rates
on both the warehouse and their
equipment" said Senator Harris.
"The benefits coming to the ware
houses under licenses are many, and
the rapid progress in the past two
years shows the licensing pro-
visions are being seriously sought
by warehousemen.
''Such agricultural products as
cotton seed, peanuts, beans and
other things may be stored if the
Hrris bill becomes law. In Geo
rgia and the South as a whole di-
versification of crops to get away
from cotton entirely has brought
stimulated interest in crops other
than cotton.
'"The department feels that it
is unnecessary work for it and the
warehousemen to have applications
made each year for license, and
my amendment would have the liz
cense continue until terminated at
any time for failure to observe the
law. The licensing of persons TO
inspect and sample products and to
certify their condition makes it
possible for proper classification of
products TO get the greatest values.
An instance is cotton, where the
value depends on the grades, and
under proper showing larger ad-
vances may be made on the ware
house receipt showfnl. the exact
grade of cotton. This can be done
under proper regulation for in
spectors and samplers.
Receipts are Valuable
'The value of receipts under the
act is shown by the fact
that the War Finance Corporation,
in making its loans covering va
rious products, has not refused in
a single case to accept federal
receipts as security for
loans which it has made to pro-
dueers.
"The penalty features for viola
tions of the warehouse law are ex-
tended so as to have salutary as
we'll as deterring influence upon
who may attempt to
go wrong. The department ad-
the law did not think
i advisable to increase the amount
If bond to be required, but the
penalty was increased from a fine
If $500 to $4,000 and from six
months in prison to one year. A
feature was added which permits
he owner Of the product lost TO be
-eimbursed ont Of the fine, which
nay be double the value Of the
product if the value exceeds sl0,
'OO."