450 AGRICULTUR.VL APPROPRIATION BILL, 1924. 



issued for nonfunsjible products unless the depositor renuested other- 

 wise, leaving it optional with tlie depositor as to whetlier the grade 

 and class should be stated. In that connection it is interesting to 

 note that the depositor is fast getting to the place where he is having 

 his grade phiced on the receipt, but it should be pointed out that the 

 option is only with the depositor and not with the warehousemen; 

 in other words, if a depositor says nothing with respect to grade, it 

 must be noted on the receipt. 



Mr. Anderson. Do these warehousemen maintain inspectors for 

 determining the specific grades or do they have Federal inspectors ? 



Mr. YoTiE. No; they have their omti graders and inspectors; in 

 fact, we will not license a warehouseman until he has satisfied us that 

 he has someone who is capable of grading under the law, and provision 

 is made for licensing inspectors. The same is true with respect to 

 graders. 



In administering this act and in our relation with the War Finance 

 Corporation we have recognized that, of course, the War Finance 

 Corporation could not very well say it would not accept as collateral 

 any form of warehouse receipt urless it was issued by a federalized 

 warehouse, and to meet the War Finance Corporation in that respect 

 we have assisted in a great many instances by giving information with 

 respect to the warehouses which might be used but which were not 

 licensed, as well as information as to the -management and financial 

 responsibility of the warehouses, and in a great many instances we 

 have undertaken to supervise and inspect nonlicensed warehouses 

 which might be used by different associations. 



APPLICATIONS FOR LICENSES PENDING. 



Mr. Anderson. How many applications for license have you 

 pending now not acted upon ' 



Mr. YoHE. I should imagine not more than 15 or 20 that have 

 not been acted on as far as we can act. By that I mean to say that 

 a considerable number of other papers must be filed besides applica- 

 tions. These are cases where the application had been fded, and we 

 have not had an opportunity yet to make inspections of the plants, 

 or where the warehouseman has not been able to file a bond, or 

 because there is some other difficulty in the way. 



WAREHOUSE RECEIPTS. 



It has occurred to me that, perhaps, I can best show the growth 

 of the work and tlie result of the work of the department with the 

 bankers, in getting them interested in tliese federalized warehouse 

 receipts, and getting tliem to the place where they fully appreciate 

 what the receipts mean, by reading to the committee a few extracts 

 from tlie minutes of the American flankers' Association, wliicli was 

 in session the other week at New York. This part of the minutes 

 is a part of some resolutions prepared by a subcommittee of the 

 committee of commerce and marine of the association. It reads in 

 part as follows: 



IlcaU/.inc; tho groat iin]>ortanro of pnal)liiif? (ho (armors to markot thoir crops nioro 

 or(l<>rly aiifl in closer relation to the consuininjj; nootls of tlie country, your conunission 

 han (ieoiiied it appropriate to consider and coiunient briotly upon iho I'nited States 

 wariihouHo act passed by (.Congress in lillG. 



