Milford chronicle., 1928-03-02
FEDERAL WAREHOUSE
FOR DEL-MAR-VA
[Continusd from first bagr]

of the act, DR.. Bomberger quoted H.
S. Yohe, in charge of Administra-
ton 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
products. The law itself does not
provide for government funds, but
provides for the issuance of ware
house receipts which are generally
acceptable to bankers as collateral
for loans. In fact, these receipts
are preferred by most bankers.
Many Gamers who have been using
them have not only found the bank
ers seeking loans supported by the
Federal Warehouse receipt but they
have secured cheaper money.
"The first step would be to ar
range with the warehOusemen to
store the product. This does not
mean necessarily 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 individ-
ual, partnership or corporation,
which agrees to operate the building
as a public warehouse for the stor-
age 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
warehouseman unless it is satisfied
that the applicant is honest, has GER
tain financial responsibilities and is
competent and capable of conduct
ing the warehouse in proper man
ner The Gamer must execute
bOnafide lease and record it. The
party to whom the warehouse is
leased should have no connection
with the cannery. The warehouse |
man, when not in position to give
a Gamers warehouse his personal
attention must have some one to
serve as his representatives or GUS
todian 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 custodian |
ship of the products.
"A man who is competent to in /
Spect the grade and quality must be
available in connection with each .
He may be an employee
Of the Gamer, but warehouse re-
ceipt will have just that much bet
ter standing if the grading be per-
formed by some disinterested party.
The warehouseman, of course, be-
comes responsible for the grading
If the goods because no receipt can
De issued without it's carrying the
statement of the grade and condi-
ion of the goods.
"The warehouse receipt is the
which the Gamer will
'eceive from the warehouseman
md present to the banker as collat-
raj. The Federal Warehouse re-
.eipt is outstanding in that it con-
aims not only specific information
II the form of definite contract
,etween warehOuseman and Gamer,
'uit it gives specific and definite !
as to location of the
.oods, the quantity, grade and con- !
ition of the pack. 1t is issued I'M
er authority of law which has
ack of it severe penalties for GER I
ain wrongful acts, which, in the .
asst have given certain other ware
ouse receipts anything but good
anne in the eyes of the bankers.
Every warehouseman must Tile I
bond with the government and
lust personally submit to a close I
; closely Investigated before he is 9
censed, and then supervision is
xercised over the warehOusen:an, Z
ne inspectors, and graders cy the I
ederal Department of Agriculture.
hese Federal warehouses are in
pected by Federal employees from
me to time and the products them
elves are inspected and graded to (
ee that they actually grade in con-
)rmity with the statement shown
n the warehouse receipt as to (
rade. The Department of Agricul-
Ire advises that it has received I
ute a number of inquiries in the
asst year from bankers in different
arts of the country relative to 4
practices. 1t has found
distinctly favorable reaction on q
lie part of bankers toward the form
warehouse receipt which is is
led to a Gamer when his products
e stored in a licensed, or Federal
arehouse." g
In expressing his personal views,
r. Bomberger said:
This system of warehousing
ould recommend itself to Gamers,
okers, bankers and growers of
w products because it provides a
stem of safe storage, cheap credit q
i'd stabilizes the canned goods 8
arket by preventing the dumping
a large part of the pack on the q
arkets in early fall months. It
rmits orderly marketing which q
turally provides for the grower
receive more for his raw stock,
d it will inevitably tend to raise
e standard of canned products g
own on this Peninsula. This will q
far toward restoring the reputa-
N of our canned goods which has
Perforated during the last few 2
ars."