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the retail stores direct. Jiany peddlers collect the empty containers from 

 retailers and restaurants. Second-hand dealers or "junkies" arrange v;ith 

 trash collectors to separate the containers and scrap pieces from the other 

 material. The largest group collecting used containers consists of chain 

 stores. Used package dealers buy containers from the "junkies," peddlers, 

 and chain stores and sort them into the various types. These dealers also 

 repair damaged packages and remake others into types more generally in demand. 

 The dealers resell these sorted and repaired packages to farmers in the nearby 

 districts, or to large second-hand wholesalers who may distribute them into 

 the market garden districts of adjacent cities or to other production centers. 



The remaking of other types of containers from such packages as 

 orange and apple boxes has become an established business in the larger 

 cities. From material in these boxes, crates are made for the packing of 

 cabbage, beans, carrots, onions, and other vegetables. Reconditioning, as 

 well as remaking, is an important enterprise. Reclaimed pieces of contain- 

 ers, second-hand nails and wire t.re used to repair dai.iaged hampers, baskets 

 or covers. A second-hand v.'ire handle, a bent nail or tv/o, with a salvaged 

 slat, v/ill many times restore a useless damaged container to good condition. 



In addition to collecting, remaking and remodeling, careful hand- 

 ling by all dealers all along the line to prevent needless damage is im- 

 portant. Many parts of potentially good containers which might be used are 

 thrown on fires in the markets on cold mornings* Attention to all of these 

 factors in regard to used containers will increase the supply of fruit and 

 vegetable packages and perrait the use of material, which v;ould otherwise be 

 required for new containers, to be used for other vital uses. Therefore, 

 the program which is operatiiig rather smoothly in the large cities should 

 be expanded and similar types should be developed in the smaller centers. 



TliE VICTOR Y T.^ 



H. P. Gilmore of IVestboro submits the following joint ruling recently 

 issued by the Bureau of Internal Revenue and the Vfar Labor Board. 



"(1) The paj^ent by an employer of tlie five percent Victory Tax on behalf 

 of his employees v.'ithout deducting it from the employees' pay is a wage or 

 salary increase requiring the prior approval of the Board or the Commissioner 

 pursuant to Executive Order No. 9250 and the Regulations of the Director of 

 Economic Stabilization* 



"(2) On January 23, the Commissioner of Internal Revenue issued a ruling 

 interpreting the Revenue Act so that vrhere the National Yfar Labor Board or 

 the Commissioner of Internal Revenue avmrds or approves an increase in wages 

 or salaries retroactive to 1942, the tax need not be withheld on that portion 

 of the increase v/hich is applicable to v:ork performed in 1942. 



"(3) Vihether the five percent tax will ultimately be collected on such 

 retroactive pay is a matter to which the Congress may give its attention 

 during the current session." 



Quoting from Hr. Gilmore 's letter, "Apple growers are not required to 

 deduct and pay the Victory Tax, but our employees are required to pay it at 

 t''e end of the year." 



