652 IOWA DEPARTMENT OF AGRICULTURE 



counts showed a loss to the firm. I think there is a very sub- 

 stantial lot of them that did. I know of quite a number that did. 



I would like to ask, also, if the Bureau of Markets revoked the 

 licenses of those two firms that were expelled from the Chicago 

 exchange. 



Mr. Bray : In answer to the first question : The Bureau of 

 Markets did find a loss in a number of firms' books on their feed, 

 and as 1 said before, they found that a large number of commis- 

 sion firms were keeping their books straight and didn't make 

 any profit from their feed account. And I wish to emphasize 

 again that the number who have engaged in this practice are 

 comparatively few. 



In answer to the other question. The Bureau of Markets did 

 not revoke the licenses of the firms accumulating the large over- 

 charge in their feed accounts, for the reason as explained in my 

 earlier remarks, that the Bureau of Markets had authority only 

 to revoke licenses in that case and leave them go with all this 

 money which they had accumulated, but the Bureau of Markets 

 thought, as I stated before, that the ends of justice toward the 

 people who had been injured would be more properly served if 

 this money was prorated back to the people from whose accounts 

 it had come. In doing that the Bureau of Markets divested itself 

 of authority to revoke the licenses, but by continuing the com- 

 bined supervision of the live stock markets the Bureau of Mar- 

 kets was assured, in co-operation with these other people, that 

 they didn't do it any more. 



I understand that the live stock exchange in expelling these 

 people did the only thing that was in their authority to do, and I 

 have no criticism, and so far as I know the Department of Agri- 

 culture would have no criticism of the apparent inconsistency in 

 which the case was handled. 



In the other case referred to where false returns were made 

 to the shippers, as soon as the matter was brought to the atten- 

 tion of the firm that the Bureau of Markets was handling the 

 case in the way that it was, and it was shown that our intention 

 was to deal with the case until it was finished, this firm quit 

 business immediately and surrendered their license, thereby ren- 

 dering the Department of Agriculture powerless to revoke their 

 license. 



I believe that was the information you wanted, wasn't it? 



Member : I would like to ask the gentleman, what is the dif- 

 ference between the nature of the cases of, we will say, Rappell 



