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TO ESTABLISH STANDARD PACKAGES AND GRADES FOR

APPLES.

COMMITTEE ON AGRICULTURE,

HOUSE OF REPRESENTATIVES,

Wednesday, March 9, 1910.

The committee met at 10.30 o'clock a. m., Hon. Charles F. Scott (chairman) presiding.

The committee had under consideration the following bill:

[H. R. 16919, Sixty-first Congress, second session.]

A BILL To establish standard packages and grades for apples, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That for the purposes of interstate and foreign commerce and commerce within the District of Columbia or the Territories of the United States, the term "closed package for apples" shall apply to any barrel, box, or basket in which the apples can not readily be seen or inspected.

SEC. 2. That the standard closed packages for apples which shall be shipped or delivered for shipment in interstate or foreign commerce or sold or offered for sale within the District of Columbia or the Territories of the United States are as follows: First. The standard box package for apples is a box having a capacity of not less than two thousand three hundred and forty-two cubic inches when measured without distention of its parts.

Second. The standard basket package for apples is a basket having a capacity of not less than two thousand three hundred and forty-two cubic inches, when measured level full, without distention of its parts.

Third. The standard barrel package for apples is a barrel of the following dimensions when measured without distention of its parts: Length of stave, twenty-eight and one-half inches; diameter of head, seventeen and one-eighth inches; distance between heads, twenty-six inches; circumference of bulge, sixty-four inches outside measurement.

SEC. 3. That the standard grades for apples which shall be shipped or delivered for shipment in interstate or foreign commerce or which shall be sold or offered for sale within the District of Columbia or the Territories of the United States are as follows: Apples of one variety, which are well-grown specimens, hand picked, of good color for the variety, normal shape, practically free from insect and fungus injury, bruises, and other defects, except such as are necessarily caused in the operation of packing, or apples of one variety which are not more than ten per centum below the foregoing specifications, are standard grade "U. S. Size A," if the minimum size of the apples is two and one-half inches in transverse diameter; or are standard grade "U. S. Size B," if the minimum size of the apples is two and one-fourth inches in transverse diameter; or are standard grade "U. S. Size C," if the minimum size of the apples is two inches in transverse diameter.

SEC. 4. That apples in closed packages shall be deemed to be misbranded within the meaning of the act approved June thirtieth, nineteen hundred and six, entitled "An act for preventing the manufacture, sale, or transportation of adulterated or misbranded or poisonous or deleterious foods, drugs, medicines, and liquors, and for regulating traffic therein, and for other purposes" (Thirty-four Statutes, page seven hundred and sixty-eight), in the following cases:

First. If the package bears any statement, design, or device indicating that the package is a standard closed package for apples, as herein defined, and the capacity of the package is less than the capacity prescribed by section two of this act for sta. Jard

closed box packages or standard closed basket packages or standard closed barrel packages for apples, as the case may be.

Second. If the capacity of the package is less than the capacity prescribed by section two of this act for standard closed box packages or standard closed basket packages or standard closed barrel packages for apples, unless the package shall be plainly marked on end and side, in the case of boxes, with the words "short box," or with the number of cubic inches the box actually contains; or, in the case of baskets, with the words "short basket," or with words or figures showing the fractional relation which the actual capacity of the basket bears to the capacity prescribed by section two of this act for standard closed basket packages for apples; or, in the case of barrels, with the words "short barrel," or with words or figures showing the fractional relation which the actual capacity of the barrel bears to the capacity prescribed by section two of this act for standard closed barrel packages for apples. The marking required by this paragraph shall be in block letters of size not less than seventy-two point block gothic.

Third. If the package bears any statement, design, or device indicating that the apples contained therein are standard grade. S. Size form to the. Size B," or U. S. Size C," as the case may be, and the apples do not conform to the requirements prescribed by section three of this act for apples of the particular grade.

Fourth. If the package bears any statement, design, or device indicating that the apples contained therein are standard grade "U. S. Size A," "U. S. Size B," or "U. S. Size C," as the case may be, and the package fails to bear also a statement of the name of the variety, the name of the locality where grown, and the name of the packer or the person by whose authority the apples were packed and the package marked.

SEC. 5. That this act shall be in force and effect from and after the first day of July, nineteen hundred and ten.

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The CHAIRMAN. The committee has met this morning at the request of Representative Lafean, the author of the measure we have before us for consideration, the bill (II. R. 16919) "To establish standard packages and grades for apples, and for other purposes.' A number of gentlemen are here desiring to be heard on the measure, and the committee will be glad to listen to what they have to say. Before commencing the oral hearing, however, I desire to call the attention of the committee to the fact that I am in receipt of a large number of communications in relation to the bill; telegrams and letters and resolutions from different organizations from various parts of the country. I take it that, following our usual custom, these communications will simply be placed on file in connection with other data relating to the bill, but will not be made a part of the hearings, inasmuch as they necessarily repeat the same arguments, to a very great extent, and would not particularly enlighten the committee. Mr. Lafean, as the author of this bill I presume you desire. to make a statement in regard to it, and the committee would be very glad to hear you, and would ask you then to introduce other gentlemen whom you wish to have heard.

STATEMENT OF HON. DANIEL F. LAFEAN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF PENNSYLVANIA.

Mr. LAFEAN. Mr. Chairman and gentlemen of the committee, I am the author of the bill H. R. 16919, and we have quite a number of gentlemen here representing the apple shippers' associations, horticultural associations, and fruit growers' associations of all sections of the United States. The bill in itself seems to me a meritorious one, and two points recently have come to my attention that forcibly impress upon my mind the importance of a standardization of the package and the grades.

I desire in this connection to read an editorial that appeared in The Union and Advertiser of Rochester, N. Y., of Tuesday, February 8, 1910, which is as follows:

THE FRUIT-PACKING QUESTION.

The question of the proper packing of fruit is once more brought forcibly to the growers of western New York as a result of recent developments in Germany. Recent official figures show that there has been a decided falling off in the importation of American apples because the people of that country can not trust the American apples to run uniformly. Consul-General Skinner, of Hamburg, states that the Americans could regain their lost ground if they would form fruit associations and combine on the effort to secure proper packing of fruit and accompany the fruit to the foreign markets with certificates vouching for the contents of packages. Germany imports $22,000,000 worth of fruit annually. The Americans are losing the business. They may have it again just as soon as the German people discover that the packers are honest and deliver the goods as recommended. The farmers of this section are waking up to the situation, and the action of the recent fruit conventions in this city in recommending proper legislation shows a determination to fulfill requirements.

That shows the fault of the present system of packing apples. It shows how they are losing ground in foreign countries, and it points out a way to overcome that. The bill which I have introduced seems to cover that ground.

There is another phase of the matter that has come to my attention within the last day or two, which seems to be highly important, and that is with regard to making loans upon packages of apples, and in this connection I want to read you two letters from bankers. The first is from the president of the Central National Bank of Buffalo, N. Y. It reads as follows:

C. P. HUGO SCHOELLKOPF, Esq.,

THE CENTRAL NATIONAL BANK,
Buffalo, N. Y., March 2, 1910.

Care Schoellkopf, Hartford & Hanna Company,

Buffalo, N. Y.

MY DEAR MR. SCHOELLKOPF: Acknowledging the receipt of yours of the 1st instant, I beg to state that I have read the H. R. 16919 very carefully, and believe its passage would be welcomed by all parties interested. I can not see where it would meet with any objection whatever.

It is manifestly better for all concerned to have a uniform size of barrel and basket, and a uniform method of properly marking same as to the quality of its contents. I trust the bill may speedily pass and become a law by its terms on and after July 1 next.

I thank you for calling the matter to my attention.
Very truly, yours,

Believe me,

GEO. F. RAND, President.

Then, I have another letter from the president of the Marine National Bank of Buffalo, N. Y., which reads as follows:

C. P. HUGO SCHOELLKOPF, Esq.,

THE MARINE NATIONAL BANK,
Buffalo, N. Y., February 28, 1910.

Care of Schoellkopf, Hartford & Hanna Company,

Buffalo, N. Y.

MY DEAR SIR: I have your letter of the 18th instant, inclosing copy of House of Representatives bill No. 16919, relative to establishing standard packages and grades for apples, and for other purposes. The bill appears to me to cover a distinct need that is felt by bankers generally whenever an application for loan is made on this kind of collateral, and I trust that you may be successful in your endeavor to see this bill enacted into law.

Yours, very sincerely,

S. M. CLEMENT.

These letters show that the bankers, in loaning money upon a commodity like this, realize the importance of having some standard which would give them additional security for the money that they may loan. Those are two points which it seems to me are strong points in favor of having some national bill providing for the standardization of the package and the barrel.

There are quite a number of gentlemen here who want to be heard. on the various phases of the bill, and I have instructed them to be to the point as much as possible, but not to be so short as not to convey to you the real import of the bill. I feel that this is a bill of national importance, and that it should be given full consideration. I will ask Mr. William L. Wagner, of Chicago, Ill., who represents the International Apple Shippers' Association, to talk to you next. Mr. RUCKER. Before Mr. Lafean takes his seat I would like to ask him a question or two, with his permission.

Mr. LAFEAN. Certainly.

Mr. RUCKER. I did not arrive until a moment ago. I would like to ask you if you have had any information from the producers and growers of apples with reference to this bill?

Mr. LAFEAN. Yes, sir.

Mr. RUCKER. What is their sentiment?

Mr. LAFEAN. They are all in favor of it.

Mr. HAWLEY. Mr. Chairman, I would like to take serious exception to that statement.

Mr. LAFEAN. Generally so, I will say.

Mr. POINDEXTER. Will you allow me to interrupt you just one moment? In the great northwestern part of the country, which has grown to be one of the most important apple-growing and appleshipping sections in the United States, the growers are practically unanimously opposed to this measure, and very strongly opposed to it.

Mr. RUCKER. That is the reason I asked the question, because you said some of the growers were not favorable to it.

Mr. LAFEAN. Oh, yes; it would hardly be fair to suppose that a man could draw a bill that would be satisfactory to everybody.

Mr. RUCKER. That suggestion was emphasized in the suggestion just made.

Mr. LAFEAN. But I think the greater portion of the people of the country are in favor of it.

Mr. RUCKER. The information we received from the growers that they were not in favor of it was somewhat emphasized by the statement I understood a gentleman to make a moment ago, that the bankers were asking for this bill in order to have better security for loans of money that they might make to you.

Mr. LAFEAN. It only shows how they look upon a measure of that kind. They look upon it as being a benefit.

Mr. RUCKER. The sentiment can not be said to be unanimously in favor of the bill, then?

Mr. LAFEAN. No, sir; not unanimous, but the greater proportion of the people are in favor of it.

Mr. HAWLEY. Following the usual custom of the committee, Mr. Chairman, I ask that the witnesses be sworn.

TESTIMONY OF MR. WILLIAM L. WAGNER, OF CHICAGO, ILL.

(The witness was sworn by the chairman.)

Mr. WAGNER. In addressing you, I do so primarily on behalf of the International Apple Shippers' Association. This association is an organization which comprises within its membership some 400 operators and dealers in apples within the United States. They, in their associations, handle probably not less than 75 per cent of the commercial apple crop of the United States. This organization was started because of the lax and irregular methods in the handling of this fruit, and the necessity for having some concerted action toward the regulation of standards, standard packages, and so forth. It was organized some fifteen years ago. It was thought that through their associations and through their efforts the various state horticultural associations, pomological associations, and so forth, might be brought closer together, to the end that we might standardize the method of handling this fruit. That such standardization is necessary is indicated by the magnitude of the industry itself. To those who are not engaged in the industry and are not familiar with it the figures will probably seem larger than might be anticipated. As a matter of fact, the crop of apples grown in the United States from year to year, according to such statistics as have been gathered, has varied from some 26,000,000 barrels to 68,000,000 barrels, making from 150,000 to 450,000 carloads of this fruit, producing in revenue to the railroads more than almost any of our other products.

We found, though, that as time went on our efforts were futile, and that to bring things to the point where our own markets might be conserved and broadened and extended as they should be, national legislation would be required. The necessity for this became more apparent because of the tremendous impetus given to orcharding in this country. As indicated by the best figures obtainable, there were in this country in 1908 something in excess of 201,000,000 apple trees of bearing age. The possibilities in the way of a crop under such figures as these are simply stupendous, and unless Providence should intervene the figures that have been named for the production of this country will very likely in the near future seem small.

Realizing at last that our efforts were futile, the International Apple Shippers' Association took up the question of federal legislation, and the Lafean bill as presented to you is the final outcome of that. The work in this direction was first taken up in the fall of 1907, some two years and a half ago, when a tentative bill was drafted and submitted to the orchardists, the horticultural associations, the dealers, and all similar organizations, through the press and through the mail, and their cooperation and assistance was asked. The first assistance we received was from the New York Fruit Growers' Association, and the Western New York Horticultural Association. In conjunction with them we went over the bill and amended it and changed it. We then again submitted it to the people of the country, calling for a conference in the city of Washington in January of last This conference was attended by all who desired to attend, and the representation was very general, representatives coming from the great States of the Northwest and from all of the large producing States, and those organizations which might be interested in the central west and in the east.

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