Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-07-03
PRODUCE AGENCY LAW
BY FREDERIC J. HASKIN.

One thing that Congress did for
the farmers at its last session was to
pass what Is known as the produce
agency act to protect them against the
practices OF INSCRIPTIONS commission
merchants. This law becomes effective
July 1.
Under its provisions farmers will be
assured that they will get a square
deal when they ship perishabIe prod
ucts on consignment. For years there
have been numerous complaints that
farmers have been cheated or dealt
with unfairly by individuals and firms
whom they trusted to market their
produce on the commission basis, and
In many instances there has been
abundant evidence that the complaints
were justified, but there was nothing
that could be done about it.
Under this system of marketing, the
farmer ships q carload Of melons or
potatoes or any quantity of those or
any other OF his products to an agency
to be sold at the best obtainable price,
the agency to receive a stipulated
commission. The transaction Is wholly
at the farmers risk. If his produce
does not arrive In good condition, If
1t spells before 1t can be sold, il it ar
buyer cannot be found for it. or If
the best price obtainable is SO low that
the proceeds will not even pay the
freight, he Is out Of luck. Moreover,
In the past he has had to take the
agency's word for it If for any rea-
son he did not realize what he had
hoped or expected from the shipment
He might be told, for example, that
his melons were In bad condition when
received and had to be sold for little
or nothing. He would have no means
Of making sure whether this were
true, for before he could get any trace
OF his melons they would not only
have been sold, but consumed, and
he would find 1t an exceedingly diff
cult matter to prove at what price
his particular lot of melons had been
sold. He might even be told that it
had been found necessary to dump or
destroy his melons, and all he could
do would be to curse his luck and
pick another agency for his next con-
signment.
Dumped to Hold Up Prices.
There have been cases in which per-
fectly good produce has been dumped
or destroyed in order to hold prices
at higher levels than could be main.
tanned IL regulated solely by the law
Of supply and demand. This is where
the consuming public becomes inter-
ested in the matter, for 1t has to pay
more for the produce than is justified
by actual market conditions.
OF course. reputable commission men
do not indulge in practices such as
have been complained Of, and it is
conceded that the great majority of
those in the business are reputable.
1t IL equally true that the farmer
who Is shipping regularly and in con-
siderable quantities has little or no
trouble in making marketing connec-
tons that are satisfactory in the long
run. But there are some crooks in
the commission business, and they
have found easy marks in the small
farmers who have not the resources
to fight for their rights.
Under the new law, however, the
commission crooks will find that in
stead of having few indignant tillers
Of the soil after them they will have
all the powers of the Federal Govern
ment on their trail and that If they
are caught they will incur penalties
sufficiently severe to make them
hesitate long before indulging again
in sharp practices.
The law covers three important
propositions. It makes 1t a misde-
meanor for any one receiving perish
able farm products in interstate com.
merce, for on on behalf of another,
to dump, abandon or destroy the
products so received without good and
sufficient cause therefor; to fail,
knowingly with intent to defraud. to
account truly and correctly for the
products; or to make any false state
ment, knowingly and with intent to
defraud, concerning the handling,
condition. quality, quantity. sale or
disposition OF the products. The
products concerned include fruits.
vegetables, melons, dairy or poultry
products or any other perishable farm
produce.
Any person found guilty Of violat.
ing the act may be punished by fine
Of not less than 800 and not more
than $500. or by imprisonment for
period not exceeding one year. or by
both fine and imprisonment. The Sec
rotary Of Agriculture is charged with
the enforcement OF the act and with
the making Of rules and regulations
necessary to carry out its provisions.
I'm considering the act and the
regulations" says Lloyd s. Tenny,
chief Of the Bureau of Agricultural
Economics numerous questions will