CONTENTS Statement of— Page Alt, Fred, Merchants Refrigerating Co., New York, N. Y. 202 Baker, Don, manager, Huntington Chamber of Commerce, Hunting- 156 Banov, Abel, editor, Food Trade News, Philadelphia, Pa Bateman, J. W., representing the commission of agriculture, Louisiana Colon-Torres, Ramon, commissioner of agriculture and commerce, 170 Cribb, Troy H., manager, South Carolina Peach Growers Association, 151 Custis, Emerson C., president, Emerson C. Custis, Inc., realtors, 54, 92, 284 Johnson, Jerry P., 400 D Street SW., Washington, D. C., representing the National Association of Refrigerated Warehouses, Washington, Johnston, Rolla, Parkersburg, W. Va Kalish, William, I. Kalish & Sons, Philadelphia, Pa. Kuehn, Philip G., vice president, Wisconsin Cold Storage Co., Mil- Leonard, John C., jobber and property owner, Philadelphia, Pa... Lewis, M. Oldham, secretary, Wholesale Perishable Market Improve- Loos, Karl D., California Fruit Growers Exchange, Los Angeles, Calif Martin, Robert H., secretary, Greenville County Marketing Com- Maxton, Dr. J. L., extension agricultural economist, Blacksburg, Va Meek, J. H., director, division of markets, Virginia Department of Meyers, C. E., member of the legislative committee, National Asso- ciation of Produce Market Managers, Richmond, Va McDonald, J. B., commission of agriculture, State of Texas, Austin McLaughlin, J. B., commissioner of agriculture, Charleston, W. Va Nold, Truman, executive secretary, National Apple Institute.. Rabinowitz, Sidney, Colonial Provision Co., Boston, Mass. 151 132 Rochford, Paul T., Indianapolis Produce Terminal, Inc., Indianapolis, Rothstein, Israel, Philadelphia, Pa. 57 31 Slamp, K. R., representing National Association of Marketing Officials Souby, J. M., general solicitor, Association of American Railroads Williams, Samuel H., manager, transportation department, chamber of 155 DEVELOPMENT AND IMPROVEMENT OF TERMINAL MARKETING FACILITIES TUESDAY, JUNE 6, 1950 HOUSE OF REPRESENTATIVES, Washington, D. C. The committee met at 10 a. m., Hon. Harold D. Cooley (chairman) presiding. The CHAIRMAN. The committee will be in order. We have for consideration this morning H. R. 8320, introduced May 2, 1950, a bill to encourage the improvement and development of marketing facilities for handling perishable agricultural commodities. The bill was introduced by the chairman after this committee had conducted hearings in different parts of the country and had visited many of the central terminal markets through which perishable agricultural commodities are marketed. (H. R. 8320 follows:) [H. R. 8320, 81st Cong., 2d sess.] A BILL To encourage the improvement and development of marketing facilities for handling perishable agricultural commodities Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Marketing Facilities Improvement Act." DECLARATION OF POLICY SEC. 2. It is found and declared that the marketing of perishable agricultural commodities affects the public welfare and is a matter of grave national concern; that vast quantities of fruits, vegetables, and other perishable agricultural commodities shipped from various producing areas located throughout the United States and foreign countries pass through and are handled in public marketing facilities located in large consuming areas which are in most instances inadequate and obsolete; that the handling of perishable agricultural commodities in such facilities is attendant with many uneconomic practices, greatly increasing costs and causing undue losses, excessive waste, spoilage, and deterioration, which result in producers receiving prices far below the reasonable value of their products, in unduly and arbitrarily enhancing costs of operations in such markets, and increasing the price of food to consumers; that the prices of all perishable farm commodities are directly affected by the prices made on these public markets and are adversely affected by the unduly burdensome costs resulting from obsolescent and inadequate facilities; that obsolete and antiquated facilities create such an undue restraint and unjust burden on interstate commerce as to make it imperative that appropriate measures be taken to free such commerce from such burdens and restraints and to protect producers and consumers aginst oppressive costs resulting from the use of such facilities; that modern facilities would make possible the saving of millions of dollars annually by removing the cause of many of the unnecessary costs and burdens; that in spite of the great need for improved facilities, efforts in the past have failed to bring about a satisfactory solution to the problem; that this failure has been due largely to the inability of farmers, dealers, brokers, commission merchants, and others, 1 individually or collectively, to obtain through regular financial channels the relatively large amounts of capital necessary for the construction of modern facilities. In consequence of the conditions referred to above, it is hereby declared to be the policy of Congress through the powers herein conferred upon the Secretary of Agriculture, to aid in the establishing of such public marketing facilities for the wholesale handling of fresh fruits and vegetables, poultry, eggs, sea food, dairy products, and other perishable agricultural commodities as will be conducive to orderly and efficient distribution, increased consumption, and a reduction in the spread between prices paid by consumers and those received by farmers. GENERAL PURPOSE SEC. 3. It is the purpose of this Act to facilitate, encourage, and assist municipalities and political subdivisions of States, public agencies, and instrumentalities of one or more States or municipalities, public corporations and boards, and private enterprise in the creation and development of modern and efficient public wholesale markets for the handling of perishable agricultural commodities in areas where such markets are found to be needed and where Federal assistance is requested and authorized as prescribed in this Act, to the end that unnecessary costs and burdens attendant with the marketing of perishable agricultural commodities caused by inadequate or obsolete facilities may be eliminated and that the spread between the amount received by producers and the amount paid by consumers may be reduced. DEFINITIONS SEC. 4. For the purposes of this Act (a) "Market facility" means all the facilities used in connection with the operation of a public wholesale market, including the land, buildings, fixtures, equipment, and other appurtenances necessary or incidental to the operation of a public wholesale market for perishable agricultural commodities constituting a single integrated market located in a substantially contiguous area, not including public cold-storage warehouses of more than ten thousand cubic feet capacity, or facilities for handling livestock. (b) "Public wholesale market" means a place which serves as the major source of supply of perishable agricultural commodities consumed in a large consuming area and which is operated primarily for the purpose of selling or otherwise disposing of perishable agricultural commodities at wholesale for resale to others. (c) "Perishable agricultural commodities" means agricultural commodities and products thereof, consisting principally of fresh fruits and vegetables, handled alone or in combination with poultry, eggs, meats, seafood, and dairy products. (d) "Mortgage" means a first mortgage on real estate, in fee simple or on a leasehold under a lease for not less than ninety-nine years which is renewable; and the term "first mortgage" means such classes of first liens as are commonly given to secure advances on, or the unpaid purchase price of, real estate under the laws of the State in which the real estate is located, together with the credit instruments, if any, secured thereby. (e) "Mortgagee" means the original lender under a mortgage, and his successors and assigns approved by the Secretary. (f). "Mortgagor" means the original borrower under a mortgage and his successors and assigns approved by the Secretary. (g) "Maturity date" means the date on which the mortgage or loan indebtedness would be extinguished if paid in accordance with periodic payments provided for in the mortgage or credit instrument. (h) "United States" includes the several States of the United States and the District of Columbia. "Secretary" means the Secretary of Agriculture. (j) "Eligible borrower" means any municipality or political subdivision of a State, public agency, or instrumentality of one or more States or municipalities, public corporation or board, or private corporation engaged in operating a single public wholesale market facility which meets the eligibility requirements of this Act. MARKET RESEARCH AND ANALYSIS SEC. 5. In order to effectuate the objectives of this Act and assist in the development of proper, adequate, and efficient marketing facilities in the United States, the Secretary under the authority of, and with funds made available pursuant to the Agricultural Marketing Act of 1946, shall undertake, and disseminate the results of, research, relating to design plans, location, methods of operation, |