920.10 Amendment, suspension, or termination of order, as amended.

AUTHORITY: $$ 920.0 to 920.10, inclusive, issued under 48 Stat. 31, 670, 675, 49 Stat. 750, 50 Stat. 246; 7 U.S.C. 601 et seq.

SOURCE: §§ 920.0 to 920.10, inclusive, contained in Order 20, Secretary of Agriculture, Aug. 26, 1941, effective Sept. 1, 1941; 6 F.R. 4432, except for amendments noted in brackets following sections affected.

NOTE: For notice of hearing on this part, see 6 FR. 2471. For determination of the Secretary of Agriculture, approved by the President of the United States with respect to this part, see 6 F.R. 4454, 6195.

§ 920.0 Findings. (a) (1) That the prices calculated to give milk handled in the marketing area a purchasing power equivalent to the purchasing power of such milk as determined pursuant to section 2 and section 8e of the Agricultural Marketing Agreement Act of 1937, as amended, are not reasonable in view of the available supplies of feeds, the prices of feeds, and other economic conditions which affect the supply of and demand for such milk, and that the minimum prices set forth in this part, as amended, are such prices as will reflect such factors, insure a sufficient quantity of pure and wholesome milk, and be in the public interest;

(2) That this part, as amended, regulates the handling of milk in the same manner as, and is applicable only to handlers specified in, the tentatively approved marketing agreement, as amended, upon which hearings have been held; and

(3) That the issuance of this part, as amended, and all of its terms and con

ditions will tend to effectuate the declared policy of the act.

(b) Pursuant to the powers conferred upon the Secretary by Public Act No. 10, 73d Congress (48 Stat. 31), as amended and as reenacted and amended by the Agricultural Marketing Agreement Act of 1937 (50 Stat. 246), it is hereby ordered that such handling of milk in the La Porte County, Indiana, marketing area, as is in the current of interstate commerce or which directly burdens, obstructs, or affects interstate commerce, shall, from the effective date hereof, be in compliance with the following terms and conditions.

§ 920.1 Definitions. The following terms shall have the following meanings:

(a) The term "act" means Public Act No. 10, 73d Congress (48 Stat. 31), as amended and as reenacted and amended by the Agricultural Marketing Agreement Act of 1937 (50 Stat. 246).

(b) The term "Secretary" means the Secretary of Agriculture of the United States.

(c) The term "La Porte County, Indiana, marketing area," hereinafter called the "marketing area," means all of the territory within the boundaries of La Porte County, Indiana.

(d) The term "person" means any individual, partnership, corporation, association, or any other business unit.

(e) The term "producer" means any person, irrespective of whether such person is also a handler, who produces milk which is received at a plant from which milk is disposed of in the marketing area.

(f) The term "handler" means any person, irrespective of whether such person is also a producer, who purchases or receives milk from producers, associations of producers, or other handlers, all, or a portion, of which milk is disposed of as milk in the marketing area, and who, on his own behalf or on behalf of others, engages in such handling of milk as is in the current of interstate commerce or which directly burdens, obstructs, or affects interstate commerce in milk and its products.

(g) The term "market administrator" means the person designated pursuant to § 920.2 as the agency for the administration of this part.

(h) The term "delivery period" means the current marketing period from the first to, and including, the last day of each month.

(1) The term "base" means the quantity of milk calculated for each producer pursuant to § 920.7 (c).

§ 920.2 Market administrator—(a) Designation. The agency for the administration hereof shall be a market administrator, who shall be a person selected by the Secretary. Such person shall be entitled to such compensation as may be determined by, and shall be subject to removal at the discretion of, the Secretary.

(b) Powers. The market administrator shall have power:

(1) To administer the terms and provisions hereof; and

(2) To receive, investigate, and report to the Secretary complaints of violations of the terms and provisions hereof.

(c) Duties. The market administrator, in addition to the duties hereinafter described, shall:

(1) Keep such books and records as will clearly reflect the transactions provided for herein and shall surrender the same to his successor or to such other person as the Secretary may designate.

(2) Submit his books and records to examination by the Secretary at any and all times;

(3) Furnish such information and verified reports as the Secretary may request;

(4) Within 45 days following the date upon which he enters upon his duties, execute and deliver to the Secretary a bond, conditioned upon the faithful performance of his duties, in an amount and with surety thereon satisfactory to the Secretary;

(5) Publicly disclose to handlers and to producers, unless otherwise directed by the Secretary, the name of any person who, within 15 days after the date upon which he is required to perform such acts, has not (i) made reports pursuant to § 920.5 or (ii) made payments pursuant to § 920.8;

(6) Employ and fix the compensation of such persons as may be necessary to enable him to administer the terms and provisions hereof;

(7) Obtain a bond with reasonable surety thereon covering each employee who handles funds entrusted to the market administrator; and

(8) Promptly verify the information contained in the reports submitted by handlers.

§ 920.3 Classification of milk-(a) Use classification. Milk received by each handler, including milk produced by him, if any, shall be classified by the market administrator, as follows:

(1) Class I milk shall be all milk, regardless of butterfat content, disposed of in the form of milk and milk drinks, whether plain or flavored, and all milk not specifically accounted for as Class II milk, Class III milk, and Class IV milk.

(2) Class II milk shall be all milk used to produce cream (for consumption as cream), creamed buttermilk, and creamed cottage cheese.

(3) Class III milk shall be all milk specifically accounted for as used to produce a milk product other than those specified in Class II milk and Class IV milk.

(4) Class IV milk shall be all milk specifically accounted for (i) as being used to produce butter, and (ii) as actual plant shrinkage but not to exceed 3 percent of the total receipts of milk from producers.

(b) Interhandler and nonhandler sales. Milk disposed of by a handler to another handler, or to a person not a handler, but who distributes milk or manufactures milk products, shall be considered to be Class I milk. In the event that such selling handler on or before the date fixed for filing reports pursuant to § 920.5 furnishes proof satisfactory to the market administrator that such milk has been disposed of by such purchaser other than as Class I milk, then such milk shall be classified in accordance with such proof.

(c) Computation of butterfat in each class. For each delivery period, the market administrator shall compute for each handler the butterfat in each class, as set forth in paragraph (a) of this section, as follows:

(1) Determine the pounds of butterfat received as follows: (i) multiply the weight of the milk received from producers by its average butterfat test; (ii) multiply the weight of the milk produced

by him, if any, by its average butterfat test; (iii) multiply the weight of the milk received from handlers, if any, by its average butterfat test; and (iv) add together the resulting amounts.

(2) Determine the pounds of butterfat in Class I milk as follows: (i) convert to quarts the quantity of milk disposed of in the form of milk and milk drinks, whether plain or flavored, and multiply by 2.15; (ii) multiply the result by the average butterfat test of such milk; and (iii) if the quantity of butterfat so computed when added to the pounds of butterfat in Class II milk, Class III milk, and Class IV milk, computed pursuant to subparagraphs (3), (4), and (5) of this paragraph, is less than the pounds of butterfat received, computed in accordance with subparagraph (1) of this paragraph, an amount equal to the difference shall be added to the quantity of butterfat determined pursuant to (ii) of this subparagraph.

(3) Determine the pounds of butterfat in Class II milk as follows: (i) multiply the actual weight of each of the several products of Class II milk by its average butterfat test; and (ii) add together the resulting amounts.

(4) Determine the pounds of butterfat in Class III milk as follows: (i) multiply the actual weight of each of the several products of Class III milk by its average butterfat test; and (ii) add together the resulting amounts.

(5) Determine the pounds of butterfat in Class IV milk as follows: (i) multiply the actual weight of the product of Class IV milk by its average butterfat test; (ii) subtract the pounds of butterfat in Class I milk, Class II milk, and Class III milk, computed pursuant to (ii) of subparagraph (2) and pursuant to subparagraphs (3) and (4) of this paragraph, and the pounds of butterfat computed pursuant to subdivision (i) of this subparagraph, from the pounds of butterfat computed pursuant to subparagraph (1) of this paragraph, which resulting quantity shall be allowed as plant shrinkage for the purposes of this subparagraph (but in no event shall such plant shrinkage allowance exceed 3 percent of the total receipts of butterfat from producers by the handler); and (iii) add together the resulting amounts.

(6) Determine the classification of the butterfat received from producers as follows:

(i) Subtract from the pounds of butterfat in each class the total pounds of butterfat which were received from other handlers and used in such class.

(ii) In the case of a handler who also distributes milk of his own production, subtract from the pounds of butterfat in each class a further amount which shall be computed as follows: Divide the pounds of butterfat in said class by the pounds of butterfat in all classes and multiply by the pounds of butterfat produced by him.

(d) Computation of milk in each class. For each delivery period, the market administrator shall compute for each handler the hundredweight of 3.8 percent butterfat content equivalent of milk in each class, which was received from producers and to which the prices set forth in § 920.4 apply, as follows:

(1) Divide the pounds of butterfat computed for each class in accordance with paragraph (c) (6) of this section by 3.8.

§ 920.4 Minimum prices-(a) Class prices prior to August 1, 1941. Each handler shall pay producers, at the time and in the manner set forth in § 920.8, for the 3.8 percent butterfat content equivalent of milk received at the handler's plant, rot less than the following prices:

(1) Class I milk-$2.10 per hundredweight: Provided, That with respect to Class I milk disposed of by such handler (1) to persons or families receiving relief from recognized relief agencies, or (ii) under a program approved by the Secretary for the sale or disposition of milk to low-income consumers, including persons on relief, the price shall be $1.80 per hundredweight.

(2) Class II milk-$1.80 per hundredweight.

(3) Class III milk-The price per hundredweight resulting from the following computation by the market administrator: Multiply by 3.8 the average price per pound of 92-score butter at wholesale in the Chicago market. as reported by the United States Department of Agriculture for the delivery period during which such milk was received, and add 30 percent thereof.

(4) Class IV milk-The price per hundreaweight resulting from the following computation by the market administrator: Multiply by 3.8 the average price per pound of 92-score butter at wholesale in the Chicago market, as reported by the United States Department of Agriculture for the delivery period during which such milk was received, and add 10 percent thereof.

(b) Class prices subsequent to July 31, 1941. Each handler shall pay producers, at the time and in the manner set forth in § 920.8, for the 3.8 percent butterfat content equivalent of milk received at the handler's plant, not less than the following prices:

(1) Class I milk-$2.35 per hundredweight: Provided, That with respect to Class I milk disposed of by such handler (i) to persons or families receiving relief from recognized relief agencies, or (ii) under a program approved by the Secretary for the sale or disposition of milk to low-income consumers, including persons on relief, the price shall be such price less 30 cents.

(2) Class II milk-$2.05 per hundredweight.

(3) Class III milk-The price per hundredweight resulting from the following computation by the market administrator: Multiply by 3.8 the average price per pound of 92-score butter at wholesale in the Chicago market, as reported by the United States Department of Agriculture for the delivery period during which such milk was received, and add 30 percent thereof.

(4) Class IV milk-The price per hundredweight resulting from the following computation by the market administrator: Multiply by 3.8 the average price per pound of 92-score butter at wholesale in the Chicago market, as reported by the United States Department of Agriculture for the delivery period during which such milk was received, and add 10 percent thereof.

[Preceding section, in small type, superseded by following section during period covered by this Supplement]

§ 920.4 Minimum prices-(a) Class prices. Each handler shall pay producers, at the time and in the manner set forth in § 920.8, for the 3.8 percent butterfat content equivalent of milk received at the handler's plant, not less than the following prices:

(1) Class I milk. The price per hundredweight for Class I milk shall be the price for Class III milk determined by the market administrator pursuant to subparagraph (3) of this paragraph, plus 50 cents: Provided, That with respect to Class I milk disposed of by such handler (i) to persons or families receiving relief from recognized relief agencies, or (ii) under a program approved by the Secretary for the sale or disposition of milk to low-income consumers, including persons on relief, the price shall be such Class I price less 30 cents.

(2) Class II milk. The price per hundredweight for Class II milk shall be the price for Class III milk determined by the market administrator pursuant to subparagraph (3) of this paragraph, plus 20 cents.

(3) Class III milk. The price per hundredweight for Class III milk shall be the price resulting from the following computation by the market administrator: determine the arithmetic average of the basic, or field, prices per hundredweight ascertained to have been paid for milk of 3.8 percent butterfat content received during the delivery period at the following plants:

Concern

Location of plant

-

Goshen Milk Condensing Co. Goshen, Ind. Litchfield Creamery Co-- Warsaw, Ind. Gordon Baking Company Nappanee, Ind. Niles Creamery Company---- Niles, Mich. Provided, That if any of such plants fails to report to the market administrator the basic, or field, price paid for milk received during the delivery period, the price per hundredweight for Class III milk shall be the price resulting from the following computation by the market administrator: determine the arithmetic average of the basic, or field, prices, as reported to the United States Department of Agriculture, paid during the delivery period to farmers at the following places or evaporated milk plants where milk is received for evaporating purposes:

Berlin, Wis.

Location of evaporated milk plants and places
Mt. Pleasant, Mich.
Sparta, Mich.
Hudson, Mich.
Wayland, Mich.
Coopersville, Mich.
Greenville, Wis.
Black Creek, Wis.
Orfordville, Wis,
Chilton, Wis.

Richland Center, Wis. Oconomowoc, Wis. Jefferson, Wis. New Glarus, Wis. Belleville, Wis. New London, Wis. Manitowoc, Wis. West Bend, Wis. (4) Class IV milk. The price per hundredweight resulting from the following computation by the market administrator: multiply by 3.8 the average price per pound of 92-score butter at wholesale in the Chicago market, as reported by the United States Department of Agriculture for the delivery period during which such milk was received, and add 30 percent thereof. [As amended Dec. 2, 1941, effective Dec. 5, 1941; 6 F.R. 6166]

§ 920.5 Reports of handlers-(a) Periodic reports. On or before the 5th day after the end of each delivery period each handler, with respect to milk or cream which was, during such delivery period, received from producers, received from handlers, or produced by such handler, shall report to the market administrator,

in the detail and on forms prescribed by the market administrator, as follows.

(1) The receipts at each plant from producers who are not handlers and the quantity of such receipts which represents the total of all milk received from producers in excess of their respective bases;

(2) The receipts at each plant from any other handler, including any hanIdler who is also a producer;

(3) The quantity, if any, produced by such handler; and

(4) The respective quantities of milk which were disposed of for the purpose of classification pursuant to § 920.3.

(b) Reports as to producers. Each handler shall report to the market administrator:

(1) Within 10 days after the market administrator's request, with respect to any producer for whom such information is not in the files of the market administrator, and with respect to a period or periods of time designated by the market administrator, (i) the name and address, (ii) the total pounds of milk received, (iii) the average butterfat test of milk received, and (iv) the number of days upon which milk was received; and

(2) As soon as possible after first receiving milk from any producer, (i) the name and address of such producer, (ii) the date upon which such milk was first received, and (iii) the plant at which such milk was received.

(c) Reports of payments to producers. Each handler shall submit to the market administrator on or before the 20th day after the end of each delivery period his producer pay roll for such delivery period which shall show for each producer (i) the net amount of such producer's payment with the prices, deductions, and charges involved, (ii) the total delivery of milk with the average butterfat test thereof, and (iii) the portion of such delivery which was in excess of the base of such producer.

(d) Verification of reports. Each handler shall permit the market administrator or his agent, during the usual hours of business, to (i) verify the information contained in reports submitted in accordance with this section, and (ii) weigh milk received from each

producer and sample and test milk for butterfat.

§ 920.6 Handlers who are also producers. (a) With respect to each hanIdler who is also a producer:

(1) The market administrator, subject to the conditions set forth in subparagraph (2) of this paragraph, shall exclude from the computations made pursuant to § 920.7 (a), the quantity of milk produced by a handler which is disposed of by such handler: Provided, That where any such handler has received milk from other producers the value of the milk so received shall be computed under § 920.7 (a) as follows: The quantity of such milk shall be ratably apportioned among such handler's total Class I, Class II, Class III, and Class IV milk (after excluding the receipts, if any, from other handlers) and multiplied by the Class I, Class II, Class III, and Class IV prices, respectively.

(2) The market administrator, upon prior written notice from such handler of the exercise thereof, shall grant the option of having all milk produced by such handler included in the computations made pursuant to § 920.7 (a), in lieu of the provisions of subparagraph (1) of this paragraph.

(3) The market administrator, in computing the value of milk for any handler pursuant to § 920.7, shall consider as Class IV milk any milk or cream disposed of in bulk by any such handler, who has not exercised the option set forth in subparagraph (2) of this paragraph, to another handler operating a bottling or a processing plant. If such receiving handler disposes of such milk or cream other than as Class IV milk, the market administrator, with respect to the total value computed for such receiving handler pursuant to § 920.7 (a), shall add the difference between (i) the value of such milk or cream at the Class IV price and (ii) the value according to its actual

use.

§ 920.7 Determination of uniform prices to producers-(a) Computation of the value of milk for each handler. For each delivery period the market administrator shall compute, subject to the provisions of § 920.6, the value of milk disposed of by each handler, which was not received from other handlers, as follows: