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Show JXPLAINS LICENSING v 0F THE FARM EQUIP- MENT INDUSTRY SMiry Houton States Drfcnt'iPolkyin '' LUrtoPubDiisher tj Mnr Wfart to V Mtfe to Amok Mmimtn of Baffly, to Assist (f 'iiitiUtfMfaran, Facilitate , PBlntBUrt.. ad Correct Abaeee la response to a letter from a publisher pub-lisher "of a trade Journal requesting lifermatlon 'la retard to the Hcens-lag Hcens-lag of the farm-equipment Industry aider the recent proclamation of the-president, the-president, Secretary, Houston, of the Department of Agriculture, charged with the administration of the regulation reg-ulation has, written that "every effort ef-fort wlUube made to assure to farmers farm-ers 'an adequate and continuous supply sup-ply of farm machinery and equipment equip-ment at reasonable costs to assist Manufacturers In securing the requisite re-quisite quantity of raw materials, to facilitate the shipment of these materials ma-terials to the manufacturers and of the finished products to the distributer! distrib-uter! and to farmers, and to correct aay abuses that may exist which the Feed Control Act gives power to deal . with." The Secretary's reply in full Is as fellows: Disacaltlee la Securing Material ;."The production of an adequate supply of farm machinery and equipment equip-ment and Its distribution to farmers at treasonable prices are at all times matters of great moment and of special spe-cial Interest to the nation. In the emergency through which we are passing It is of even greater moment mo-ment and Interest. You are aware, off course, since the European war began, and especially since we entered en-tered the war, not only that prices '. 4v greatly increased, but also that sj manufacturers have experienced difficulties in different directions difficulties in securing at all times a! sufficient quantity of raw material and prompt transportation. I "There Is evidently much disturb-alee disturb-alee among the farmers of the nation na-tion over the matter. Many representations repre-sentations are made that the prices of farm machinery are unduly high. Others are made that difficulties are experienced in securing certain kinds of machinery within a reasonable time. Clearly, there are many ques-:,Ueus ques-:,Ueus that sL'b determined only 15 bjrj Impartial authority, and It seems highly wise, in the present situation that all matters of such Interest should be considered formally by the government, and not only that all abases, If any exist, should be corrected, cor-rected, but that all proper assistance should be furnished to all parties in carrying on their legitimate enterprises enter-prises under as favorable circumstances circum-stances as possible, "Partly for the reasons Indicated the farm machinery industry, like a number of other Industries of the nation, Is being placed under license under the terms of the act, commonly known asNhe Food Conrtlo Act, which was approved on August 10, 19'l7. Section S of that act Is the licensing section, and its language Indicates the purpose 'in mind. As indicated, in-dicated, the president is authorised to issue licenses and prescribe regulations regu-lations for the same and 'requirements 'require-ments for systems of accounts and auditing of accounts to be kept by I, licenses, submission or reports by HiSTaVl Bm, with or without oath or at- I firmatlon, and the entry and inspec- tlott of the president's duly author- I ixed agents of the place of business I oti licensees. Whenever the presl- I deal shall find that any storage H charge, commission, profit or prac- tice, of any licensee is junjust, or un- reasonable, or, discriminatory and bbb unfair, or wasteful, and shall order H sueh licensee, within a reasonable H Uaie fixed in the order, to dlscon- Unite, the same, unlets aucb artier;' H whisk shall recite the facts found, H I moke or aspesdeef rack leea sbbbbbV see shall, within the time prescribed in the order, discontinue such unjust, unreasonable, discriminatory and unfair un-fair storage charge, commission, profit or practice. The president may, la lieu, of any sach unjust, unreasonable, un-reasonable, dlscrltslaatory and unfair storage charge, commission, profit, or practice, find what Is a Just, reasonable, reas-onable, nondiscriminatory aid fair storage charge, commission, profit er practice and In any proceeding brought In any court track order of the president snail be prima fade evidence.' To Sarvlve the Industry "Thl taction' also provides proper penalties. It will therefore be necessary nec-essary to survey the Industry with a view to take such action as may be necessary with reference to accounting account-ing to discover whether the commissions commis-sions profits or prices In the Industry are unjust, unreasonable discriminatory discrimina-tory and unfair; and if so to cause their discontinuance. "I aeed scarcely Bay that It will be the aim of the authorities handling hand-ling this matter, while protecting the consumers nglnst profiteering and attempting to aid them in securing their epulpment at fair prices, to deal absolutely fairly and justly with the Industry and to assist It, In any way, In cesuiing the requisite materials and the necessary transportation and In promoting such economies as may be feasible. "You will observe that the law does not provide for direct price fixing fix-ing for farm machinery. It Is unquestionably un-questionably true, however that the power to prevent unfair commissions profits, or practices may Indirectly materially affect prices. "I am inclosing, for your information, inform-ation, a copy of a statement which explains what Is meant by the phrase those specifically exemp from obtaining ob-taining a licence under the Food-Control Food-Control Act. "It is imposlble at this stage to give any detailed satement regarding the action to be taken by he department depart-ment under he President's proclaim-. tlon proa natiox t an nly , y assure to farmers an adequate and continuous supply of farm machinery machin-ery and equipment at reasonable costs, to assist manufacturers In securing se-curing the requisite puanlty of raw materials, torttae manufactures and of the finished products o the distributors distrib-utors and to farmers and to correct any abuses that may exist which the Food-Control Act blves power to deal with. The Food-Control Act expressly exempts ex-empts retailers as muck, from the licensing requirements aatMines a retailer as "a person, copartaerhslp, firm corporatoln of association not engaging In the holesalo business whose grpss sales do not exceed $100 OQO per annum." Hawover, under the, provisions of the Food-Control Act retailers will not be allowed to profiteer; profit-eer; under the regulations Issued with the President's proclamation retailers engaging in such practlca will not be able to secure a supply of farm equipment. The regulations provide that a licensee shall not, wlthont the express ex-press sanction of the Secretary of Agriculture, sell any form equipment to any person engaged in the business busin-ess or selling or utilizing such equipment, equip-ment, if (be licensee has knowledge that such person, after the regulations regula-tions became effective has violated' the provisions of the Food-Control Act by making an unjust or unreason able rate or charge In selling or orterwlse handling or dealing In such equipment or by holding, contracting con-tracting for, or arranging for a quantity in acess of the reasonable requirements or .his business for ubc or sale by him for a reasonable time. |