PACKER ACT AMENDMENTS COMMITTEE ON AGRICULTURE, HOUSE OF REPRESENTATIVES, The committee met, pursuant to adjournment of yesterday, at 10 o'clock a. m., Hon. Gilbert N. Haugen (chairman) presiding. Present: Representatives Haugen (chairman), Purnell, Voigt, Tincher, Williams, Sinclair, Thompson, Clague, Clarke, Ketcham, Aswell, Kincheloe, Jones, Swank, Fulmer, Rubey, Johnson, Doyle, and McSweeney. The CHAIRMAN. The committee will kindly come to order. We have met this morning to consider several amendments to the packers and stock yards act of 1921. Mr. CLAGUE. Mr. Chairman, H. R. 4823 is an amendment to the packers and stockyards act amending section 406; H. R. 4824 is a bill to amend section 304 of the same act, and they are closely related. We will take up the consideration of those two bills together, thereby shortening the hearing. I will not make any statement regarding them at this time, because I have witnesses here and I can make my statement to the committee later. Before we begin taking evidence I would like to ask that the witnesses on these bills-they will be short-be allowed to make their statements first, and then, if anyone has any questions to be asked, they can be asked afterwards. Mr. PURNELL. I think that is very desirable this morning, in view of the fact that the House meets at 11 o'clock. The CHAIRMAN. What arrangement have you made as to the division of time, Mr. Clague? Mr. CLAGUE. I suppose the time should be divided equally between those for and those against. Mr. WILLIAMS. I should think that would be the best way to do it. The CHAIRMAN. Are you going to divide the time or give it all to one side to-day? Mr. WILLIAMS. The time will probably be used up this morning by the proponents, as our time is short. Mr. CLAGUE. The first witness on behalf of the proponents of the bill will be the assistant attorney general of the State of Minnesota, Mr. Victor E. Anderson, who will explain the purposes of the amendment. STATEMENT OF MR. VICTOR E. ANDERSON, ASSISTANT ATTORNEY GENERAL, STATE OF MINNESOTA Mr. ANDERSON. Mr. Chairman and gentlemen. I am appearing in behalf of the State of Minnesota, its legal department, and the railroad and warehouse commission of the State which, under our law, is charged with the regulation of the stockyards within the State to the same extent that they are charged with regulating the railroad interests and transportation within the State. The railroad and warehouse commission is represented here by Mr. O. P. B. Jacobsen, who is its chairman, and Mr. F. W. Matson, one of the commissioners. The State is vitally interested through this commission. I am also acting at the present time as counsel for the Minnesota Farm Bureau Federation, which is vitally interested in the matter. The fault, if any, that the State of Minnesota has to find with the provisions of the packers and stockyards act is not very great, as you will notice from the amendments that are proposed. In H. R. 4824 there is nothing new added, except as appears on page 2, following the words in the second line "such stockyard," the proposed amendment reads "except such as are furnished by a department or agency of a State government pursuant to the law of such State." As the gentleman from Minnesota, Mr. Clague, stated, the provisions of this bill and of H. R. 4823 are very much the same, except that 4823 contains an amendment appearing on page 2, second line, from the word "commission," and in effect covers pretty much the same as the other proposed amendment. The State of Minnesota since 1919 has been furnishing stockyard service and facilities as a part of the State government. This has included weighing of the livestock, and a few other minor incidental services in connection therewith. After the provisions of the stockyards act became effective on August 15, 1921, there were injunction proceedings commenced on behalf of the State in the district court in the district in which the stockyards of Minnnesota, which are located in South St. Paul, are situated. At about the same time, proceedings were commenced in the Federal court, in the fourth division, for the purpose of preventing the State from continuing to furnish stockyards service. The result has been very naturally a clash between the two courts. An arrangement was made, however, that for the period of one year the State was to continue furnishing weighing and other service as they had in the past. Mr. KINCHELOE. Who agreed to that one year? Mr. ANDERSON. That was agreed to by the Secretary of Agriculture, the stockyards company and the State of Minnesota, and, I believe, the livestock exchange. The year expired. The suits were still pending; and then, in the middle of August, 1923, an injunction was granted in the Federal court. That injunction was in effect, or operated, at least as being in effect, for a period of 93 days, during which time the State was prevented in its furnishing of the weighing facilities and service. The State court was given jurisdiction by the Federal court, because the action was commenced there first. That court has passed upon the matter and rendered a decision in favor of the State. I have a copy of the decision here, which I would be glad to leave with the committee. It reviews the situation pretty well as the facts are in connection with the stockyards situation at South St. Paul. I have also a tabulation of the laws of Minnesota, affecting the stockyards situation, tabulated with the provisions contained in the packers and stockyards act, showing that there is very little, and we contend no. conflict. The CHAIRMAN. Without objection, they may be spread on the record. State of Minnesota, County of Dakota. District Court, First Judicial District. State of Minnesota, plaintiff, v. St. Paul Union Stockyards Co., defendant The above-entitled action was tried before the court without a jury on the 17th day of December, 1923, Clifford L. Hilton, attorney general, and Henry C. Flannery and E. C. Carman, appearing as attorneys for the State, and D. L. Grannis and George W. Peterson, appearing as attorneys for the defendant. And the court having heard and considered all the evidence introduced upon the trial of said action and the arguments of counsel and being fully advised, finds as facts herein: I. That the defendant is a corporation organized and existing under the laws of the State of Minnesota. That it owns and operates a stockyards situated at South St. Paul in said State, into which livestock is received for the purpose of sale. That it is doing business therein for compensation and is a public stockyard as the same is defined in the laws of the State of Minnesota. II. That at a special session of the Legislature of the State of Minnesota held in the year 1919, the said legislature duly enacted into law a certain act entitled "An act to provide for the weighing of livestock at public stockyards under the jurisdiction of the railroad and warehouse commission," which said act was duly approved by the governor of said State on or about September 22, 1919, and by its terms became effective on January 1, 1920; that said act was thereafter published and is now known as Chapter 40 of the Special Session Laws of Minnesota for the year 1919." III. That said stockyard at South St. Paul, owned and operated by the defendant herein, constitutes and is the only public stockyard that has been or is doing business as such within the State of Minnesota since the enactment of said chapter 40, Special Session Laws of Minnesota, 1919. During the year 1922 there were received at the said stockyard of the defendant company 71,405 cars of livestock by rail and approximately 2,000 carloads which were driven in. Between 61 and 62 per cent of all said livestock was so shipped or driven in from points within the State of Minnesota. That the stockyard of the defendant company covers a tract of land at South St. Paul, Minn., of approximately 1,924,867 square feet, which contains over 3,000 separate inclosed pens, each pen being of sufficient size to accommodate and hold one carload of livestock of one kind or another. These pens are arranged in blocks separated by runs, alleys, or passageways and are in all cases assigned to and used by the various commission men and dealers and others doing business in said yard. Separate provision is made for the receipt of livestock received at said yard by railroad and by truck or other vehicle. The trains of stock cars containing the livestock arrive on a track known as the unloading track, extending along a platform, known as the unloading platform. As each car is opened the livestock contained therein is driven out of the car by employees of the defendant company and into the chute pens, so called, adjoining the unloading platform. The livestock is then driven out of the chute pens by said employees and counted; then it is driven into one of the pens assigned to the consignee of the shipment where it is delivered to the consignee and receipted for by him. If the car of livestock is consigned for sale, bids are received by the consignee for the same at the pens. After an agreement of sale has been made by the consignee to a purchaser the livestock is driven out of said pen by the employees of the consignee to one of the scales, where it is weighed by an official weigher appointed by the railroad and warehouse commission. Official certificate of weight, showing the name of the consignee, the person purchasing the livestock, the name of the shipper, and also stating the number and kind of animals in the draft and the weight thereof, are issued in triplicate by the official State weigher. A bell is rung by the State weigher when the weight is taken. The stock is then by the owner delivered to the purchaser and the title thereto vests in him. The cattle are then driven off the scale by employees of the purchaser to pens under his control, where they are receipted for by him. Thereafter the buyer has full control of the livestock and makes such disposition of the same as he may desire. Each carload of livestock received at said stockyard which is sold therein is handled in the manner above described and each carload is kept separate from the other livestock during and throughout all said handling up to and including delivery thereof to the buyer as hereinabove described. That, according to the usual custom and manner of handling said livestock as hereinabove described, there is at no time any commingling of livestock shipped and received from points without the State of Minnesota with livestock shipped and received from points within the State of Minnesota; that there is no reason or necessity for any commingling of said livestock shipped and received from points without the State and such livestock shipped and received from within the State at any time after its arrival at the unloading track and while the same remains in the stockyard of the defendant company before delivery to purchaser; that all of said livestock shipped and received from points within the State of Minnesota which is weighed by said official State weighers is so weighed separate and apart from any livestock shipped and received from points without the State of Minnesota; and that likewise all such livestock shipped and received from points without the State of Minnesota which is weighed by said official State weighers is so weighed separate and apart from any livestock shipped and received from points within the State of Minnesota. Each carload of said livestock weighed, from whatever point shipped and received, is weighed by an official State weigher, separate and apart from any other livestock received at said stockyard. That approximately 97 per cent of all livestock received and weighed at said stockyard of the defendant company in South St. Paul, Minn., is transported thereto by railroad; that the remainder of said livestock received and weighed at such stockyard is transported thereto by motor vehicles or means other than railroad transportation and is unloaded onto an unloading platform provided for that purpose and constructed with adjoining receiving pens similar to said railroad unloading platform and pens hereinabove described; that said livestock so transported by motor vehicles or other similar conveyance is handled throughout said stockyard in the same manner as the livestock hereinabove described, which is transported by rail; and that at no time prior to the delivery to the purchaser is there any commingling, nor any reason or necessity for commingling, of such livestock received by truck or similar conveyance from without the State of Minnesota with livestock received from within the State of Minnesota. IV. That on or about January 1, 1920, under and pursuant to the terms of said chapter 40, Special Session Laws of Minnesota, 1919, hereinabove described, the Railroad and Warehouse Commission of the State of Minnesota duly established and installed a system for weighing livestock at the public stockyards situated in South St. Paul, Dakota County, Minn., owned and operated by the defendant in this action, whereby a sufficient number of State weighers to operate the scales were appointed and provision was made for the issuance of weight certificates: that said weighers were, at the time of the trial of this action, and still are engaged in the weighing of all livestock received at said stockyard in South St. Paul, which is weighed and sold thereat, acting under and pursuant to said chapter 40. Special Session Laws of Minnesota, 1919, and rules and regulations of said railroad and warehouse commission made pursuant thereto. That under and by virtue of the authority conferred by said chapter 40, Special Session Laws of Minnesota, 1919, the said railroad and warehouse commission has from time to time prescribed the fees to be paid for the weighing of said livestock, which fees are collected through the commission men consignees from the shipper of the livestock, are based upon the number of livestock weighed and are paid into a fund in the State treasury known and designated as the "livestock weighing fund." That the present scale of charges is 2 cents per head for cattle and 1 cent per head for sheep and hogs; that the scale of charges has been changed from time to time and is always subject to readjustment by the commission so as to yield only the necessary cost of said weighing services hereinabove described. V. That, except as hereinafter expressly stated otherwise, all livestock transported by railroad to and received at the stockyard of the defendant company at South St. Paul, Minn., is transported thereto under bills of lading or other forms of shipping contract wherein the only consignee is a person, corporation, or concern at South St. Paul, Minn., and the only place of consignment and delivery named in said bill of lading or shipping contract is South St. Paul, Minn.; and that the carrier's contract of shipment is in all such cases |