Smyrna times., 1928-03-07
PLAN FEDERAL WAREHOUSE
Packers Would Be Better Able to FL
nance Pack Tri-State Gamers
and Market Bureau Active

members of the Trl-State Packers
Association and others interested in
The canning industry, held at Easton,
recently, a resolution was adopted
asking the Tri-State Association and
the Marketing Bureau Of the Del
Mar-Va Eastern Shore Association to
| promote an extension of the United
States Warehouse act to canned fruits
and vegetables grown on the Peninsu-
Ia. County meetings under the joint
direction Of the Tri-State Packers As
sociation and the Marketing Bureau
of the Del-Mar-Va Association are be-
/ ing arranged for the immediate future
to stimulate adoption Of the Federal
Warehouse plan.
! DR.. F. B. Bomberger, Executive Di-
rector of Administration and Market
ing of the Del-Mar-Va Association,
presided at the meeting. Interesting
facts showed an early activity on the
Peninsula to secure this Federal
| Warehouse system as Sen. n. H.
Fooks, early in 1926, when president
Of the Tri-State Packers Association,
appointed a committee with f. G.
Cover, as chairman, to take up the
placing of canned fruits and veget-
ables on the list of products eligible
| for storage under the Federal Ware
house act. The committee placed this
before the National Gamers AssOcia-
tion with the result that the Secretary
Of Agriculture on August 18th, 1926,
compiled with the request. In June,
| 1927, Mr.. Cover established the first
Federal Storage Warehouse on the
Peninsula, and it was accepted as be-
ing suitable by Washington. This was
known as warehouse "No. II" Short
~ afterward second warehouse was
established BY partitioning off a sec
tion in a large storage plant at Cor
dova. Both proved extremely popular
and profitable. These warehouses
were placed in charge of w. H. Hop
kins and a properly appointed custo-
dian. The rate for storing was one
cent a case for the first month with
a two cents maximum charge for
year. In the six months existence Of
| tile COrdova warehouse more than
| S430,00O worth Of tomatoes have been
stored. The local banks have been
eager to loan money on the Federal
| warehouse receipts up to seventy-five
or eighty per cent of their value.
DIR. Bomberegr Explains the Act
In outlining the detailed purposes
of the act, DR. Bomberger quoted H.
s. Yohe, i'll charge Of Administration
Of the United States Warehouse Act.
He said:
THE primary purpose Of the law is
to provide a method of financing on
the basis of stored agricultural prod
ucts The law itself does not provide
for government funds, but provides
for the issuance Of warehouse receipts
which are generally acceptable to
bankers a. collateral for loans. In fact
| these receipts are preferred by most
| bankers Many Gamers who have
been using them have not only found
the bankers seeking loans supported
by the Federal Warehouse receipts
but they have secured cheaper money.
'"The first step would be to arrange
with the warehousemen to store the
product. This does not mean neces-
sarily that the Gamer could not store
his product in his own warehouse, if
the building were acceptable to the
government. A great many Gamers
who are using the warehouse act do
so by leasing their own warehouse to
an individual, partnership or cor
poration, which agrees to operate the
building az a public warehouse for the
storage Of canned goods. The party
who leases the warehouse must be ac-
! ceptable To the Department Of Agri-
| culture for it will not license any or
ganization unless it is satisfied that
the applicant is honest, has certain
financial responsibilities and is COM
petent and capable of conducting the
/ warehouse in a proper manner. The
Gamer must execute a bonafde lease
and record it. The party to whom the
| warehouse IL leased should have no
connection with the cannery. The
warehouseman, when not in a posi-
tion to give Gamers warehouse his
! personal attention must have some
one to serve as his representatives or
/ custodian of the warehouse. This Gus
| todian must not be related or con-
nected with the Gamer in any way
This requirement is necessary to ac-
complish a disinterested custodianship
Of the products.
IA man who Is competent to inspect
the grade and quality must be avail
able in connection with each ware
house. He may be an employee of
the Gamer, but a warehouse receipt
will have just that much better stand
ing if the grading be performed by
some disinterested party. The ware
houseman, Of course, becomes respon-
sible for the grading of the goods be-
cause a receipt can be issued without
its carrying the statement of the