any inspections, including but not limited to, copies of any inspection, reinspection, or appeal inspection certificates issued, records of such certificates, applicant's accounts, or other information relating to the work of any office of inspection shall not be made available to, or be opened for examination by, any person who is not connected with the inspection service provided by the regulations in this part, and such records shall be held strictly confidential and for reference only by the Director, the inspector in charge of such office of inspection, his assistants, and such inspector's supervising inspector. Summarized reports which do not disclose the operations of any individual grower, shipper, or other interested party and which are identified clearly as to source and contents may be released to the public: Provided, That, when so released, they shall be published in such manner and in such media as will make the information available alike to all interested parties.

§ 68.52 Political activity. All inspectors are forbidden, during the period of their appointments or licenses to take an active part in political management or in political campaigns. Political activity in city, county, State, or national elections, whether primary or regular, or in behalf of any party or candidate, or any measure to be voted upon, is prohibited. In addition to licensees, this applies to all appointees, including, but not being limited to, temporary and cooperative employees, and employees on leave of absence with or without pay. Willful violation of this section will constitute grounds for dismissal or other disciplinary action in the case of appointees, and suspension or revocation of licenses in the case of licensees.

§ 68.53 Identification. All inspectors and official samplers shall have in their possession and present upon request, while on duty, the means of identification furnished to them by the Department.

Sec. 101.91

Assets and bond; combination warehouses. 101.92 Amendments.

AUTHORITY: §§ 101.1 to 101.92 issued under sec. 28, 39 Stat. 490; 7 U. S. C. 268.

SOURCE: §§ 101.1 to 101.92 contained in SRA, BAE 126, Apr. 27, 1931, amended at 7 F. R. 6806 and 13 F. R. 8731. Exceptions are noted following sections affected.

CROSS REFERENCES: Cotton classifications under United States Cotton Futures Act: See Part 27 of this chapter. Cotton Standards: See Part 28 of this chapter.

DEFINITIONS

§ 101.1 Meaning of words. Words used in this part in the singular form shall be deemed to import the plural, and vice versa, as the case may demand.

§ 101.2 Terms defined. For the purpose of this part, unless the context otherwise requires, the following terms shall be construed, respectively, to mean:

(a) The act. The United States Warehouse Act, approved August 11, 1916 (39 Stat. 486; 7 U. S. C. 241-273), as amended.

(b) Person. An individual, corporation, partnership, or two or more persons having a joint or common interest.

(c) Secretary. The Secretary of Agriculture of the United States or any other officer or employee of the Department to whom authority has heretofore lawfully been delegated, or may hereafter lawfully be delegated, to act in his stead.

(d) Administrator. The Administrator of the Administration or any other officer or employee of the Administration to whom authority has heretofore lawfully been delegated, or may hereafter lawfully be delegated, to act in his stead. (e) Designated representative. The Administrator.

(f) Regulations. Rules and regulations made under the act by the Secretary.

(g) Department. The United States Department of Agriculture.

(h) Administration. The Production and Marketing Administration of the Department.

(i) Linters. As far as applicable the regulations in this part shall include linters.

(j) Warehouse. Any building, structure, or other protected inclosure in which cotton is or may be stored for in

terstate or foreign commerce, or, if located within any place under the exclusive jurisdiction of the United States, in which cotton is or may be stored.

(k) Warehouseman. A person lawfully engaged in the business of storing cotton.

(1) License. A license issued under the act by the Secretary.

(m) Licensed warehouseman. A warehouseman licensed as such under the act.

(n) Licensed warehouse. A warehouse for the conduct of which a license has been issued.

(0) Licensed warehouseman's bond. A bond required to be given under the act by a licensed warehouseman.

(p) Licensed classifier. A person licensed under the act to classify according to grade or otherwise and certificate the grade or other class of cotton.

(q) Licensed weigher. A person licensed under the act to weigh and certificate the weight of cotton.

(r) Cotton examiner. An officer of the Department of Agriculture designated by the Administrator for the purpose of hearing cotton appeals, under §§ 101.75-101.85.

(s) Receipt. A warehouse receipt. (t) Bale. A bale or other package. (u) State. A State, Territory, or District of the United States.

(v) Licensed sampler. A person, employed by a licensed warehouseman, licensed under the act to draw samples from cotton stored in the licensed warehouse at which such person is employed. [SRA, BAE 126, as amended at 13 F. R. 8728]

WAREHOUSE LICENSES

§ 101.3 Application forms. Applications for licenses under sections 4 and 9 of the act and for amendments of licenses under section 5 of the act shall be made to the Secretary upon forms prescribed for the purpose and furnished by the Administration, shall be in English, shall truly state the information therein contained, and shall be signed by the applicant. The applicant shall at any time furnish such additional information as the Secretary or the Administrator shall find to be necessary to the consideration of his application.

§ 101.4 Grounds for not issuing license. A license for the conduct of a warehouse shall not be issued if it be

found by the Secretary, or his designated representative, that the warehouse is not suitable for the proper storage of cotton, that the warehouseman is incompetent to conduct such warehouse in accordance with the act and the regulations in this part, or that there is any other sufficient reason within the intent of the act for not issuing such license.

§ 101.5 Net assets required. Any warehouseman conducting a warehouse licensed or for which application for license has been made, shall have and maintain above all exemptions and liabilities net assets liable for the payment of any indebtedness arising from the conduct of the warehouse, to the extent of at least $5 per bale of the maximum number of bales that the warehouse will accommodate when stored in the manner customary to the warehouse as determined by the Administrator, except that the amount of such assets shall not be less than $5,000, and need not be more than $100,000. In case such warehouseman has applied for licenses to conduct two or more warehouses in the same State, the assets applicable to all of which shall be subject to the liabilities of each, such warehouses shall be deemed to be one warehouse for the purposes of the assets required under this section. the purposes of this section only, paid-in capital stock, as such, shall not be considered a liability. Any deficiency in the required net assets may be supplied by an increase in the amount of the warehouseman's bond in accordance with § 101.12 (b).

For

§ 101.6 License shall be posted. Immediately upon receipt of his license or of any modification or extension thereof under the act, the warehouseman shall post the same, and thereafter, except as otherwise provided in the regulations in this part, keep it posted until suspended or terminated, in a conspicuous place in the principal office where receipts issued by the warehouseman are delivered to depositors.

§ 101.7 Suspension or revocation of warehouse licenses. Pending investigation, the Secretary, or his designated representative, whenever he deems necessary, may suspend a warehouseman's license temporarily without hearing. Upon written request and a satisfactory statement of reasons therefor, submitted by a warehouseman, the Secretary, or his designated representative, may, without hearing, suspend or cancel the

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license issued to such warehouseman. The Secretary, or his designated representative, may, after opportunity for hearing has been afforded in the manner prescribed in this section, revoke a license issued to a warehouseman, when such warehouseman (a) is bankrupt or insolvent; (b) has parted, in whole or in part, with his control over the licensed warehouse; (c) is in process of dissolution or has been dissolved; (d) has ceased to conduct such licensed warehouse; or (e) has in any other manner become nonexistent or incompetent or incapacitated to conduct the business of the warehouse. Whenever any of the conditions mentioned in paragraphs (a) to (e) of this section shall come into existence, it shall be the duty of the warehouseman to notify immediately the Administrator of the existing condition. Before a license is revoked for any violation of, or failure to comply with, any provision of the act or of the regulations in this part, or upon the ground that unreasonable or exorbitant charges have been made for services rendered, the warehouseman involved shall be furnished by the Secretary, or his designated representative, a written statement specifying the charges and shall be allowed a reasonable time within which he may answer the same in writing and apply for a hearing, an opportunity for which shall be afforded in accordance with § 101.89.

§ 101.8 Return of suspended or revoked warehouse license. In case a license issued to a warehouseman terminates or is suspended or revoked by the Secretary, or his designated representative, such license shall be returned to the Secretary. At the expiration of any period of suspension of such license, unless it be in the meantime revoked, the dates of the beginning and termination of the suspension shall be indorsed thereon, it shall be returned to the warehouseman to whom it was originally issued, and it shall be posted as prescribed in § 101.6; or in the discretion of the Administrator a new license may be issued.

§ 101.9 Lost or destroyed warehouse license. Upon satisfactory proof of the loss or destruction of a license issued to a warehouseman, a duplicate thereof may be issued under the same number.

§ 101.10 Unlicensed warehousemen must not represent themselves as licensed. No warehouse or its warehouse

man shall be designated as licensed under the act and no name or description conveying the impression that it or he is so licensed shall be used, either in a receipt or otherwise, unless such warehouseman holds an unsuspended and unrevoked license for the conduct of such warehouse.

WAREHOUSE BONDS

§ 101.11 Time of filing. Unless the warehouseman has previously filled with the Secretary the bond required by § 101.12, he shall file such bond within a time, if any, specified by the Secretary, or his designated representative, said bond to cover all obligations arising thereunder during the period of the license.

§ 101.12 Basis of amount of bond; additional amounts. (a) Exclusive of any amount which may be added in accordance with this section, the amount of such bond shall be at the rate of $5 per bale of the maximum number of bales that the warehouse will accommodate when stored in the manner customary to the warehouse for which such bond is required, as determined by the Administrator, but not less than $5,000 nor more than $50,000. In case a warehouseman has applied for licenses to conduct two or more warehouses in the same State, the assets applicable to all of which shall be subject to the liabilities of each, and shall desire to give a single bond meeting the requirements of the act and the regulations in this part for the said warehouses, such warehouses shall be deemed to be one warehouse for the purposes of the bond required.

(b) In case of a deficiency in net assets under § 101.5, there shall be added to the amount of the bond determined in accordance with paragraph (a) of this section an amount equal to such deficiency.

(c) In case the Secretary, or his des→ ignated representative, finds the existence of conditions warranting such ac-` tion, there shall be added to the amount determined in accordance with paragraphs (a) and (b) of this section a further amount fixed by him, to meet such conditions.

§ 101.13 Amendment to license. In case an application is made under § 101.3 for an amendment to a license and no bond previously filed by the warehouseman covers obligations arising under such amendment, the warehouseman

shall, when notice has been given by the Secretary, or his designated representative, that such amendment will be granted upon compliance by such ware'houseman with the act, file with the Secretary, within the time, if any, fixed in such notice, a bond complying with the act. In the discretion of the Secretary, a properly executed instrument in form approved by him, amending, extending, or continuing in force and effect the obligations of a valid bond previously filed by the warehouseman and otherwise complying with the act and the regulations in this part may be filed in lieu of a new bond.

§ 101.14 New bond required each year. Whenever a license has been issued for a period longer than one year, such license shall not be effective beyond one year from its effective date unless the warehouseman shall have filed a new bond in the required amount with, and such bond shall have been approved by, the Secretary, or his designated representative, prior to the date on which said license would have expired had it been issued for but one year, subject to the provisions of § 101.13.

§ 101.15 Approval of bond. No bond, amendment, or continuation thereof shall be accepted for the purposes of the act and the regulations in this part until it has been approved by the Secretary, or his designated representative.

WAREHOUSE RECEIPTS

§ 101.16 Form. (a) Every receipt, whether negotiable or non-negotiable, issued for cotton stored in a licensed warehouse shall, in addition to complying with the requirements of section 18 of the act, embody within its written or printed terms the following: (1) the name of the licensed warehouseman and the designation, if any, of the warehouse; (2) the license number of the warehouse; (3) a statement whether the warehouseman is incorporated or unincorporated, and, if incorporated, under what laws; (4) in the event the relationship existing between the warehouseman and any depositor is not that of strictly disinterested custodianship, a statement setting forth the actual relationship; (5) the tag number given to each bale of cotton in accordance with § 101.31; (6) a statement conspicuously placed, whether or not the cotton is insured, and, if insured, to what extent, by the warehouseman,

against loss by fire and lightning; (7) the words "Not Negotiable," or "Negotiable," according to the nature of the receipt, clearly and conspicuously printed or stamped thereon; and (8) a blank space designated for the purpose in which the length of staple may be stated.

(b) Except as to warehouse receipts issued on or before August 30, 1944, or when an expiration date authorized by the Department is shown on the face of the receipt, every negotiable receipt issued for cotton stored in a licensed warehouse shall be effective until surrendered for delivery of the cotton, and every nonnegotiable receipt shall be effective until surrendered for delivery of the cotton or until all cotton covered by the receipt has been delivered in response to proper delivery orders of the person rightfully entitled to the cotton: Provided, That nothing contained in this section shall prohibit a warehouseman from legally selling the cotton when his accrued storage and other charges approach the current market value of the cotton.

(c) Every negotiable receipt issued for cotton stored in a licensed warehouse shall, in addition to complying with the requirements of paragraphs (a) and (b) of this section, embody within its written or printed terms the following: (1) If the cotton covered by such receipt was classified by a licensed classifier or weighed by a licensed weigher a statement to that effect, and (2) a form of indorsement which may be used by the depositor, or his authorized agent, for showing the ownership of, and liens, mortgages, or other encumbrances on, the cotton covered by the receipt.

(d) Whenever the grade or other class of the cotton is required to be, or is, stated in a receipt issued for cotton stored in a licensed warehouse, such grade or other class shall be stated in the receipt in accordance with §§ 101.68-101.73 as far as applicable.

(e) If a warehouseman issue a receipt omitting the statement of grade on request of the depositor, such receipt shall have clearly and conspicuously stamped or written on the face thereof the words "Not graded on request of depositor."

(f) If licensed receipts are issued covering linters such receipts shall be clearly and conspicuously marked "Linters," and all references to cotton shall be eliminated effectively from the receipts.