committee shall disregard any transactions which it finds were not bona fide, or were made for the purpose of influencing its action improperly, or for other good reasons do not represent truly the commercial values of spot cotton in its market. The time or times of ascertaining and publishing such prices or values and differences shall be uniform in all the bona fide spot markets and shall be fixed subject to the approval of the Administrator so as to carry out the purposes of sections 5 and 6 of the act. The committee shall cause its action to be communicated at once to each futures exchange and to the Administration.

§ 27.98 Duties of quotation committees. Each such quotation committee shall provide itself with or have ready access to a full set of the practical forms of the official cotton standards of the United States for grade and color of upland cotton, each box of which shall contain a certificate of the Secretary of Agriculture which is not more than 18 months old and which has not been canceled as provided elsewhere in this subpart. Such committee, or a person authorized to act for it, shall obtain complete and satisfactory information not later than the close of business on each business day as to all sales of spot cotton since the close of the next preceding business day, including the grades, the prices or price basis, and other terms of sale in sufficient detail to enable the committee to perform its duties accurately. Such committee shall also have access to the samples representing the cotton involved in such sales. Any record of such information shall be subject to examination at any reasonable time by a duly authorized representative of the Administration, and the samples of the cotton as long as they remain in the possession of any party to the transaction in such market shall also be available for such examination.

$ 27.99 Value of grade where no sale; determination. Whenever no sale of a particular grade of cotton shall have been made on a given day in a particular bona fide spot market, the value of such grade in that market on that day, which shall be used in calculating the commercial differences to be applied, pursuant to section 6 of the act, in the settlement of a section 5 contract, shall be determined in accordance with § 27.100.

§ 27.100 Values of grades. (a) If on such given day there shall have been in such market both a sale of any higher grade and a sale of any lower grade, the average of the declines, or advances, or decline and advance, as the case may be, of the next higher grade and the next lower grade so sold shall be deducted from, or added to, as the case may be, the value, on the last preceding business day, of the grade the value of which on such given day is sought to be ascertained.

(b) If on such given day there shall have been in such market a sale of either a higher or a lower grade, but not sales of both, the decline or advance of the next higher or the next lower grade so sold shall be deducted from or added to as the case may be, the value on the last preceding business day of the grade the value of which on such given day is sought to be ascertained.

(c) If on such given day there shall have been in such market no sale of spot cotton of any grade, the value of each grade shall be deemed to be the same as its value therein on the last preceding business day, unless in the meantime there shall have been bona fide bids and offers, or sales of hedged cotton, or other sales of cotton, or changes in prices of future contracts made subject to the act, which in the usual course of business would clearly establish a rise or fall in the value of spot cotton in such market, in which case such rise or fall may be calculated and added to or deducted from the value on the preceding business day of cotton of all grades affected thereby.

§ 27.101 Values; expression. For the purpose of this subpart values shall be expressed in terms of cents and hundredths of a cent. A fraction of a hundredth, when equal to, or greater than, the half thereof, shall be treated as a hundredth, and when less than a half of a hundredth shall be disregarded.

§ 27.102 Administration. The details of the method of carrying out the provisions of this subpart in each bona fide spot market shall be subject to the approval of the Administrator or shall be prescribed by him.

AVAILABILITY OF FORMS OF OFFICIAL
STANDARDS

§ 27.103 Official cotton standards; forms. Practical forms of the official cotton standards of the United States will be furnished to any person requesting them, subject to the provisions of

the regulations of the Secretary of Agriculture under the United States Cotton Standards Act. [4 F. R. 4147]

PUBLICATIONS

§ 27.107 Information and investigations. Information as to official cotton standards and investigations under the act shall be published from time to time.

SUBPART B-STANDARDS

CROSS REFERENCE: For regulations of the Secretary of Agriculture under the United States Cotton Standards Act, see Part 28.

OFFICIAL COTTON STANDARDS OF THE UNITED STATES FOR THE GRADE OF AMERICAN UPLAND COTTON

AUTHORITY: §§ 27.151 to 27.186 issued under sec. 6, 42 Stat. 1518, sec. 1926, 53 Stat. 213; 7 U. S. C. 56, 26 U. S. C. 1926.

SOURCE: §§ 27.151 to 27.186 appear at 11 F. R. 4777, redesignated at 13 F. R. 8728.

WHITE COTTON

§ 27.151 No. 1 (or Middling Fair). No. 1 or Middling Fair shall be American upland cotton which in color, leaf, and preparation is better than No. 2, or Strict Good Middling.

§ 27.152 No. 2 (or Strict Good Middling). No. 2 or Strict Good Middling shall be American upland cotton which in color, leaf, and preparation is within the range represented by a set of samples in the custody of the United States Department of Agriculture in the District of Columbia in a container marked "Original Official Cotton Standards of the United States, American Upland, No. 2 or Strict Good Middling, effective August 1, 1947."

§ 27.153 No. 3 (or Good Middling). No 3 or Good Middling shall be American upland cotton which in color, leaf, and preparation is within the range represented by a set of samples in the custody of the United States Department of Agriculture in the District of Columbia in a container marked “Original Official Cotton Standards of the United States, American Upland, No. 3 or Good Middling, effective August 1, 1947."

§ 27.154 No. 4 (or Strict Middling). No. 4 or Strict Middling shall be American upland cotton which in color, leaf, and preparation is within the range represented by a set of samples in the custody of the United States Department of Agriculture in the District of Colum

bia in a container marked "Original Official Cotton Standards of the United States, American Upland, No. 4 or Strict Middling, effective August 1, 1947."

§ 27.155 No. 5 (or Middling). No. 5 or Middling shall be American upland cotton which in color, leaf, and preparation is within the range represented by a set of samples in the custody of the United States Department of Agriculture in the District of Columbia in a container marked "Original Official Cotton Standards of the United States, American Upland, No. 5 or Middling, effective August 1, 1947."

§ 27.156 No. 6 (or Strict Low Middling). No. 6 or Strict Low Middling shall be American upland cotton which in color, leaf, and preparation is within the range represented by a set of samples in the custody of the United States Department of Agriculture in the District of Columbia in a container marked "Original Official Cotton Standards of the United States, American Upland, No. 6 or Strict Low Middling, effective August 1, 1947."

§ 27.157 No. 7 (or Low Middling). No. 7 or Low Middling shall be American upland cotton which in color, leaf, and preparation is within the range represented by a set of samples in the custody of the United States Department of Agriculture in the District of Columbia in a container marked “Original Official Cotton Standards of the United States, American Upland, No. 7 or Low Middling, effective August 1, 1947."

§ 27.158 No. 8 (or Strict Good Ordinary). No. 8 or Strict Good Ordinary shall be American upland cotton which in color, leaf, and preparation is within the range represented by a set of samples in the custody of the United States Department of Agriculture in the District of Columbia in a container marked "Original Official Cotton Standards of the United States. American Upland, No. 8 or Strict Good Ordinary, effective August 1, 1947."

§ 27.159 No. 9 (or Good Ordinary). No. 9 or Good Ordinary shall be American upland cotton which in color, leaf, and preparation is within the range represented by a set of samples in the custody of the United States Department of Agriculture in the District of Columbia in a container marked "Original Official Cotton Standards of the United States, American Upland, No. 9

or Good Ordinary, effective August 1, 1947."

EXTRA WHITE COTTON

§ 27.160 No. 3 Extra White (or Good Middling Extra White). No. 3 Extra White or Good Middling Extra White shall be American upland cotton which in leaf and preparation is No. 3 or Good Middling, but which is whiter than No. 3 or Good Middling.

§ 27.161 No. 4 Extra White (or Strict Middling Extra White). No. 4 Extra White or Strict Middling Extra White shall be American upland cotton which in leaf and preparation is No. 4 or Strict Middling, but which is whiter than No. 4 or Strict Middling.

§ 27.162 No. 5 Extra White (or Middling Extra White). No. 5 Extra White or Middling Extra White shall be American upland cotton which in leaf and preparation is No. 5 or Middling, but which is whiter than No. 5 or Middling.

§ 27.163 No. 6 Extra White (or Strict Low Middling Extra White). No. 6 Extra White or Strict Low Middling Extra White shall be American upland cotton which in leaf and preparation is No. 6 or Strict Low Middling, but which is whiter than No. 6 or Strict Low Middling.

§ 27.164 No. 7 Extra White (or Low Middling Extra White). No. 7 Extra White or Low Middling Extra White shall be American upland cotton which in leaf and preparation is No. 7 or Low Middling, but which is whiter than No. 7 or Low Middling.

§ 27.165 No. 8 Extra White (or Strict Good Ordinary Extra White). No. 8 Extra White or Strict Good Ordinary Extra White shall be American upland cotton which in leaf and preparation is No. 8 or Strict Good Ordinary, but which is whiter than No. 8 or Strict Good Ordinary.

§ 27.166 No. 9 Extra White (or Good Ordinary Extra White). No. 9 Extra White or Good Ordinary Extra White shall be American upland cotton which in leaf and preparation is No. 9 or Good Ordinary, but which is whiter than No. 9 or Good Ordinary.

TINGED COTTON

§ 27.167 No. 3 Tinged (or Good Middling Tinged). No. 3 Tinged or Good Middling Tinged shall be American up

land cotton which in leaf and preparation is No. 3 or Good Middling, but which in color is within the range represented by a set of samples in the custody of the United States Department of Agriculture in the District of Columbia in a container marked "Original Official Cotton Standards of the United States, American Upland, No. 3 Tinged or Good Middling Tinged, effective August 1, 1947."

§ 27.168 No. 4 Tinged (or Strict Middling Tinged). No. 4 Tinged or Strict Middling Tinged shall be American upland cotton which in leaf and preparation is No. 4 or Strict Middling, but which in color is within the range represented by a set of samples in the custody of the United States Department of Agriculture in the District of Columbia in a container marked "Original Official Cotton Standards of the United States, American Upland, No. 4 Tinged or Strict Middling Tinged, effective August 1, 1947."

§ 27.169 No. 5 Tinged (or Middling Tinged). No. 5 Tinged or Middling Tinged shall be American upland cotton which in leaf and preparation is No. 5 or Middling, but which in color is within the range represented by a set of samples in the custody of the United States Department of Agriculture in the District of Columbia in a container marked "Original Official Cotton Standards of the United States, American Upland, No. 5 Tinged or Middling Tinged, effective August 1, 1947."

§ 27.170 No. 6 Tinged (or Strict Low Middling Tinged). No. 6 Tinged or Strict Low Middling Tinged shall be American upland cotton which in leaf and preparation is No. 6 or Strict Low Middling, but which in color is within the range represented by a set of samples in the custody of the United States Department of Agriculture in the District of Columbia in a container marked "Original Official Cotton Standards of the United States, American Upland, No. 6 Tinged or Strict Low Middling Tinged, effective August 1, 1947."

§ 27.171 No. 7 Tinged (or Low Middling Tinged). No. 7 Tinged or Low Middling Tinged shall be American upland cotton which in leaf and preparation is No. 7 or Low Middling, but which in color is within the range represented by a set of samples in the custody of the United States Department of Agriculture in the District of Columbia in a container marked "Original Official Cotton Stand

ards of the United States, American Upland, No. 7 Tinged or Low Middling Tinged, effective August 1, 1947.”

SPOTTED COTTON

§ 27.172 No. 3 Spotted (or Good Middling Spotted). No. 3 Spotted or Good Middling Spotted shall be American upland cotton which in leaf and preparation is No. 3 or Good Middling, but which in spot or color or both is between No. 3 or Good Middling, and No. 3 Tinged or Good Middling Tinged.

§ 27.173 No. 4 Spotted (or Strict Middling Spotted). No. 4 Spotted or Strict Middling Spotted shall be American upland cotton which in leaf and preparation is No. 4 or Strict Middling, but which in spot or color or both is between No. 4 or Strict Middling and No. 4 Tinged or Strict Middling Tinged.

§ 27.174 No. 5 Spotted (or Middling Spotted). No. 5 Spotted or Middling Spotted shall be American upland cotton which in leaf and preparation is No. 5 or Middling, but which in spot or color or both is between No. 5 or Middling and No. 5 Tinged or Middling Tinged.

§ 27.175 No. 6 Spotted (or Strict Low Middling Spotted). No. 6 Spotted or Strict Low Middling Spotted shall be American upland cotton which in leaf and preparation is No. 6 or Strict Low Middling, but which in spot or color or both is between No. 6 or Strict Low Middling and No. 6 Tinged or Strict Low Middling Tinged.

§ 27.176 No. 7 Spotted (or Low Middling Spotted). No. 7 Spotted or Low Middling Spotted shall be American upland cotton which in leaf and preparation is No. 7 or Low Middling, but which in spot or color or both is between No. 7 or Low Middling and No. 7 Tinged or Low Middling Tinged.

ton which in leaf and preparation is No. 4 or Strict Middling, but which in color is deeper than No. 4 Tinged or Strict Middling Tinged.

§ 27.179 No. 5 Yellow Stained (or Middling Yellow Stained). No. 5 Yellow Stained or Middling Yellow Stained shall be American upland cotton which in leaf and preparation is No. 5 or Middling, but which in color is deeper than No. 5 Tinged or Middling Tinged.

GRAY COTTON

§ 27.180 No. 3 Gray (or Good Middling Gray). No. 3 Gray or Good Middling Gray shall be American upland cotton which in leaf and preparation is No. 3 or Good Middling, but which is more gray in color than No. 3 or Good Middling and no darker in color than the dullest bale in No. 6 or Strict Low Middling.

§ 27.181 No. 4 Gray (or Strict Middling Gray). No. 4 Gray or Strict Middling Gray shall be American upland cotton which in leaf and preparation is No. 4 or Strict Middling, but which is more gray in color than No. 4 or Strict Middling and no darker in color than the dullest bale in No. 7 or Low Middling.

§ 27.182 No. 5 Gray (or Middling Gray). No. 5 Gray or Middling Gray shall be American upland cotton which in leaf and preparation is No. 5 or Middling, but which is more gray in color than No. 5 or Middling and no darker in color than the dullest bale in No. 8 or Strict Good Ordinary.

§ 27.183 No. 6 Gray (or Strict Low Middling Gray). No. 6 Gray or Strict Low Middling Gray shall be American upland cotton which in leaf and preparation is No. 6 or Strict Low Middling, but which is more gray in color than No. 6 or Strict Low Middling and no darker in color than the dullest bale in No. 9 or Good Ordinary.

GENERAL

§ 27.184 General. American upland cotton which in color, leaf, and preparation is within the range of the standards established by this subpart, but which contains a combination of color, leaf, and preparation not within any one of the definitions herein set out, shall be designated according to the definition which is equivalent to, or if there be no exact equivalent is next below, the average of all the factors that determine the grade of the cotton: Provided, That in no event

819574 49

shall the grade assigned to any cotton or sample be more than one grade higher than the grade classification of the color or leaf contained therein.

§ 27.185 Trading in futures contracts. Irrespective of the foregoing provisions of this subpart, continued trading may take place at any exchange, board of trade, or similar institution or place of business in particular cotton futures now traded in at such place of business and calling for deliveries subsequent to 12:01 a. m., e. s. t., August 1, 1947, subject to settlement by the delivery of cotton according to the standards now in effect (§ 27.151 et seq.).

§ 27.186 Alternate title for standards. Since these standards have been agreed upon and accepted by the leading European cotton associations and exchanges, they may also be termed and referred to as the "Universal Standards for American Cotton."

OFFICIAL COTTON STANDARDS OF THE UNITED STATES FOR LENGTH OF STAPLE AUTHORITY: §§ 27.201 to 27.205 issued under sec. 6, 42 Stat. 1518, sec. 1926, 53 Stat. 213; 7 U. S. C. 56, 26 U. S. C. 1926.

SOURCE: §§ 27.201 to 27.205 contained in SRA, BAE 117, except as noted following sections affected.

§ 27.201 Measurement; humidity; temperature. The length of staple of any cotton shall be the normal length by measurement, without regard to quality or value, of a typical portion of its fibers under a relative humidity of the atmosphere of 65 percent and a temperature of 70° F.

§ 27.202 Terms of designation. The length of staple of any cotton shall be designated by that one of the following terms which expresses its measurement in inches and fractions of an inch in accordance with § 27.201:

“Below ; ; 1316; 8; 232; 15/16; 31/32; 1; 132: 116; 1332; 1%; 15%2; 1316; 12; 14; 12; 15/16; 112; 1%; 11332; 1716; 11532; 11; 11732; 116; 11932; 1%; 12132; 111/16; 12332; 14; and upward in like manner in gradations of thirty-seconds, disregarding any fraction less than a thirty-second."

§ 27.203 Original representations of staple lengths. The lengths of staple designated as 34, s, 15/16, 1, 132, 116, 1332, 1%, 1532, 116, 132, 14, 132, 15/16, 11132, 1% and 11⁄2 inches, respectively, are each

represented by a quantity of American upland cotton suitably contained and marked "Original Representation of official cotton standards of the United States (American Upland) Length of Staple", followed in each instance by the appropriate designation of staple length and the effective date, August 1, 1929; each of the lengths of staple designated as 13/16, 2932, and 332 inches by a quantity of American Upland cotton similarly marked and followed in each instance by the appropriate designation of staple length and the effective date, August 1, 1933; each of the lengths of staple designated as 11⁄2, 116, 1%, and 14 inches by a quantity of American Egyptian cotton suitably contained and marked "Original Representation of official cotton standards of the United States (American Egyptian) Length of Staple", followed in each instance by the appropriate designation of staple length and the effective date, August 1, 1929; each of the lengths of staple designated as 1% and 116 inches by a quantity of American Egyptian cotton suitably contained and marked "Original Representation of official cotton standards of the United States (American Egyptian) Length of Staple", followed in each instance by the appropriate designation of staple length and the effective date, August 10, 1943; and each of the lengths of staple designated as 12, 1%, 15% and 1/4 inches by a quantity of Sea Island cotton suitably contained and marked "Original Representation of official cotton standards of the United States (Sea Island) Length of Staple", followed in each instance by the appropriate designation of staple length and the effective date, August 10, 1939. Said quantities of cotton are to be kept in the custody of the United States Department of Agriculture. [7 F. R. 6177]

§ 27.204 Over 34-inch staple. Cotton which is more than three-fourths of an inch in length of staple, but is not exactly one of the measurements specified in § 27.202, shall be designated by that one of such measurements which comes nearest under its true measurement.

§ 27.205 Bale of different staple lengths. Whenever the length of staple of cotton taken from one part of a bale is different from that taken from another part of the same bale, the length of staple of the cotton in such bale shall be that of the part which is the shorter.