January, 1931 



THE I. A. A. RECORD 



Page Seventeen 



Sec'y. Hyde Comments 



On Corn Sugar Rulii^ 



Modification Removes Stigma from 

 Corn Product. 



Sec'r. UrAm 



THE recent ruling by Secretary Ar- 

 thur M. Hyde regarding corn sugar 

 removed a discrimination against the use 

 of this product, which has too long 

 been permitted. In 

 a recent statement 

 Secretary Hyde said: 

 "The requirement 

 heretofore that the 

 presence of corn su- 

 gar as an ingredient 

 in prepared foods be 

 declared on the label 

 was not a matter of 

 law, but was a mat- 

 ter of administrative 

 interpretation of the 

 law. This ruling 

 therefore involves no change in the 

 Federal food and drugs act; nor does 

 it change the rules with reference to 

 labeling of harmful or injurious in- 

 gredients. Labeling of such ingredients 

 still is required. 



"When the Federal food and drugs 

 act was passed 23 years ago corn sugar 

 was a muddy, brown product less than 

 50 per cent sweet. Under conditions 

 existing then, a prejudice existed 

 against it. As a matter of administra- 

 tive procedure, this department ruled 

 that its presence in a prepared food 

 must be declared on the label. 



Now Clean White Product 



"In the last 10 years great progress 

 has been made in refining corn sugar. 

 It is now a clear, clean, white, granu- 

 lated sugar. It is a wholesome and 

 healthful food. It is now about 75 per 

 cent as sweet as cane sugar. It has some 

 properties more valuable than cane 

 sugar. It has no qualities which are in 

 any wise harmful to health. The rea- 

 son for the old departmental ruling has 

 disappeared. It is high time that the 

 discrimination against it, based on an 

 ancient prejudice should disappear also 



"I cannot agree to the proposition 

 that the purchaser of prepared fruits 

 or other foods in which sugar is an 

 element expects or believes that such 

 sugar will always and everywhere mean 

 sucrose. The purchaser of canned 

 f, peaches, for instance, expects to buy 

 primarily canned peaches. There is no 

 declaration on the label that they are 

 sweetened at all, the label declares only 

 peaches. He looks to the manufacturer 

 to guarantee that they will be tasty 

 and appetizing. He expects the Federal 



food and drugs act to insure their 

 wholesomeness. If those requisite* are 

 fulfilled he is far from being deceived. 

 He is entlreljf satisfied. 



No Danger to Manufacturer 



"Nor is there any danger whatever 

 to the manufacturer of special brands 

 whose formulas call for sucrose and 

 whose brands are a guarantee of quality. 

 This ruling cannot affect them. If, on 

 the other hand, its use is beneficial and 

 wholesale without adversely affecting 

 the appearance or taste of the product, 

 the fact that corn sugar is cheaper 

 ought to commend it to the consuming 

 public who are entitled, as a matter of 

 right, to demand food products on the 

 most economical basis. 



"There is also an affirmative economic 

 reason for this change in departmental 

 rulings. American agriculture is over- 

 produced. The fact that production 

 runs ahead of consumption is responsi- 

 ble for most of the ills of agriculture. 

 The Federal Farm Board, farm organi- 

 zations, many of the state colleges, and 

 this department are striving to re-estab- 

 lish the economic balance of agricul- 

 ture. The control and limitation of 

 acreage planted is one method of re- 

 establishing that balance. Finding new 

 uses and new outlets for crops is an- 

 other method. 



Potential Market Opened 



"We produce annually about 2,700,- 

 000,000 bushels of corn. Only about 

 275,000,000 bushels of this ever reaches 

 primary markets. The sale price of this 

 small amount fixes the farm price for 

 the whole crop. 



"There exists a potential market for 

 corn through corn sugar variously esti- 

 mated at from 5,000,000 to 100,000,- 

 000 bushels per annum. The smaller 

 figure represents about 2 per cent of 

 the cash corn reaching primary mar- 

 kets. The larger figure represents about 

 3 5 per cent. It is not likely that the 

 larger figure will be realized for many 

 years. Be the per cent large or small, 

 the opening of this potential market 

 for additional corn is a step in the right 

 direction. If we fail to use all avail- 

 able methods of restoring agricultural 

 balance, whether those methods repre- 

 sent great and spectacular gains, or 

 merely short and unnoticed steps, we 

 shall be derelict in duty. 



"I believe that this modification re- 

 moves an undeserved stigma from corn 

 sugar; that it harms or deceives no 

 one; that it weakens neither the Federal 

 food and drugs act nor its administra- 

 tion; that it is a just recognition of 

 modern progress in refining; and that 

 it will aid in some degree in re-estab- 

 lishing the economic balance of agri- 

 cultural products." 



Board of Trade Pres. 



. ' Issues a Statement 



Ul REGARD the Agricultural Mar- 

 A keting Act with its resultant^ 

 Farm Board and Stabilization Corpora- 

 tion as an expression of Congress in its 



effort to provide re- ^ 

 lief to agriculture," 

 James C. Murray, 

 the new president of 

 the Chicago Board 

 of Trade, said in a 

 recent statement. 



"The success of 

 the venture depends 

 on the results ac- 

 complished. Present 

 facilities should not 

 be discarded or re- 

 stricted before bet- 

 ter facilities are provided. There can 

 be no objection to farmers soundly en- 

 gaging in the business of handling grain 

 or other commodities. Many of those 

 now engaged in the commercial han- 

 dling and processing of grain started 

 life on the farm and their sympathy 

 naturally lies with the farmer. Care 

 must be taken in the using of Govern- 

 ment funds to treat all interests with 

 justice and consideration." 



Mr. Murray, who is vice-president of 

 the Quaker Oats Company, passed upon 

 the advantages of a free and open mar- 

 ket such as the Chicago Board of Trade. 



J. C. Murray 



A. F. B. F. Proposes 



Federal Legislation 



Further regulation of grain ex- 

 changes, opposition to a special session 

 of congress in the spring, and a recom- 

 mendation for permanent funds for 

 agricultural extension work are part of 

 several legislative proposals urged by 

 the American Farm Bureau Federation 

 for enactment before congress adjourns 

 on March 4. ,' :• 



The proposal for further regulation 

 of grain exchanges is embodied in the 

 Caooer-Dickinson bill which follows re- 

 cent recommendations made by Secre- 

 tary Hyde and Chairman Legge of the 

 Farm Board. 



Federal Reserve Board 



President Hoover faces the task of 

 selecting a successor to the late Edward 

 H. Cunningham of Iowa, former mem- 

 ber of the Federal Reserve Board, and 

 one time secretary of the Iowa Farm 

 Bureau Federation. Among those men- 

 tioned for the post are Frank H. Funk, 

 former congressman from McLean 

 county, Illinois; Governor Arthur J. 

 Weaver of Nebraska, and Ernest Moore, 

 banker-farmer of Cedar Rapids, Iowa. 



