receipt of this Notice, actionable lots of submitted samples and inbound lots of grain shall not be reported. The reporting of actionable lots of rice and pulses and all other criteria, as defined in GR Notices 1566 and 1602, remain unchanged. L. E. MALONE, Assistant Chief, Inspection Branch. GR Notice 1571 September 25, 1974 U.S. DEPARTMENT OF AGRICULTURE-AGRICULTURAL MARKETING SERVICE, GRAIN DIVISION, HYATTSVILLE, MD. Action by: Official Inspection Agencies, Cooperators, and Grain Division Field Offices. REPORTING OF LOW-QUALITY GRAIN, RICE, AND PULSES TO THE FOOD AND DRUG ADMINISTRATION (FDA) This Notice supplements GR Notice 1566 in the reporting of lowquality grain, rice, and pulses to FDA. Telephone Results. When an official inspection agency, cooperator, or Grain Division Field Office has ascertained that a lot is actionable (see GR Notice 1566), they shall telephone their findings to an FDA District Office. Toll calls by inspection agencies and cooperators may be made collect. Grain Division Field Offices should use the FTS telephone network to report findings to the FDA District Office. When confirming oral report with the written report (see attachment B, GR Notice 1566), be sure to include the address and telephone number of the appropriate FDA District Office so that the applicant for inspection will know who to contact for information about FDA's action. Mailing of Samples.-When requested by FDA to send the work sample, use a USDA-franked mailing tag, "Form GR-258." Grain Division Field Offices shall be responsible for providing official inspection agencies and cooperators with appropriately addressed. franked mailing tags. Once a pattern for sending the work samples to FDA is established, field offices are authorized to locally purchase rubber stamps to aid in the addressing of the mailing tags. Each field office shall also maintain an accountability record of the number of mailing tags used by inspection agencies, cooperators, and the field office for sending samples to FDA. This information is needed to determine the mailing cost of this program and will be called for at a later date. FDA directory.-A limited number of FDA directories (same directory attached to GR Notice 1453) are available for distribution. Copies are attached for official inspection agencies and Grain Division Field Offices. Field offices are responsible for advising cooperators of their correct FDA contact. Effective date. This notice is effective immediately and does not establish a new or revised substantive rule. J. L. O'BRATE, Acting Chief, Grain Inspection Branch. Chief, Commodity Inspection Brunch. GR Notice 1566 September 23, 1974 U.S. DEPARTMENT OF AGRICULTURE, Action by: Field Offices and Official Inspection Agencies. Information for: Interested Parties in the Grain, Rice, and Pulse Industries. INTERIM CRITERIA FOR REPORTING LOW QUALITY INSPECTED GRAIN, RICE, AND PULSES FOR POSSIBLE ACTION BY FDA This notice identifies the interim criteria to be used by official inspection personnel in reporting low quality inspected grain, rice, and pulses for possible action by the Food and Drug Administration (FDA). Final criteria will be issued in writing at a later date. Section A (4) of the AMS-FDA Agreement (see GR Instruction 910-6) states that AMS will report to FDA any lot of grain, rice, or pulses which is found to be actionable under the Federal Food, Drug, and Cosmetic Act. The following quality criteria shall be considered actionable and shall be reported to the appropriate FDA District Office for possible action : Wheat, rye, rice, or pulses containing filth, such as: Bird droppings (2 or more per 1,000 grams); Rodent pellets (2 or more per 1,000 grams); or A combination of filth types (1 or more bird droppings and 1 or more rodent pellets per 1,000 grams). Grain, rice, or pulses containing toxic substances, such as: Crotalaria seeds (3 or more per 1,000 grams); or Treated seeds, such as pink kernels or mercury-treated seeds (20 or more per 1,000 grams). Grain, rice, or pulses which are graded distinctly low quality for any reason. Grain, rice, or pulses with a commercially objectionable foreign odor. Grain containing objectionable foreign matter, such as: Metal fragments (2 or more on basis of lot as a whole or in original sample) Glass fragments (2 or more on basis of lot as a whole or in original sample) Rice or pulses containing objectionable foreign matter, such as: Metal fragments (1 or more on basis of lot as a whole or in original sample) Glass fragments (1 or more on basis of lot as a whole or original sample). Stones: All rice, except rough rice (in excess of 0.1 percent, by weight, of sample) 1 "Inspected" shall include all inspections of graded items under the U.S. Grain Standards Act and Part 68 regulations of the Agricultural Marketing Act of 1946. 3 Grain shall include barley, corn, flaxseed, mixed grain, oats, rye, sorghum, soybears, and wheat. Pulses shall include dry beans, dry lentils, and dry peas. 55-318-75-4 Pulses (in excess of 0.3 percent, by weight, of sample). Rice and pulses which are graded sample grade on account of live or dead insects, insect webbing, or insect refuse. Immediately after ascertaining that a lot is actionable, the office performing the original or appeal inspection (Official inspection agency, cooperator, or Grain Division) shall telephone a report of their findings to the applicant and to FDA. Toll calls to FDA should be made collect. (See attachment A for list of FDA names and telephone numbers to contact. Grain Division field offices shall promptly inform official inspection agencies and cooperators of the specific FDA district office with whom they are to associate.) Calls to FDA district offices should be directed to the following individuals in the indicated preference order: 1. Director, investigations branch. 2. Director, compliance branch. This oral report will be promptly confirmed in writing in the format shown in attachment B. When requested by FDA the sample work portion shall also be forwarded to them, using USDA franked tags. The grade certificate shall, as usual, be presented to the applicant and a copy forwarded to the Grain Division Field Office together with a copy of the written report to FDA. After receiving the above notification, the applicant should promptly contact the FDA district office and discuss with them FDA interest in the commodity and proposed further handling of the commodity. Further communications concerning the commodity should be restricted to FDA officials and the applicant only. All pertinent information shall be included on inspection certificates issued to the applicants. Upon request by an interested party, inspections of grain, rice, and pulses are subject to appeal in accordance with the part 68 regulations under the Agricultural Marketing Act of 1946, and the part 26 regulations under the U.S. Grain Standards Act. In those instances where lots, previously reported by official inspection agencies as actionable, are subsequently appealed by the applicants, the Grain Division field offices shall promptly report appeal findings to both the applicant and FDA. Further communications concerning the commodities should be restricted to FDA officials and the applicants only. This notice implements section A(4) of the AMS-FDA agreement described in GR instruction 910-6, and is effective immediately. On recipt of this notice, Grain Division field offices shall discontinue issuing "unfit notices, form 1, to applicants for inspection and discard all unused copies of the form. [Attachments*] HOWARD WOODWORTH, Questions 21 and 23. Do you see any problem in giving the Grain Inspection Branch the responsibility for the weighing, as well as grading, of grain? If so, explain. What would you suggest as an appeal procedure on grain weights? Answer. We are not in a position at this time to recommend what changes in existing regulations or legislation, if any, may be needed *See appendix D, p. 204. to improve the system for weighing grain-at either port elevators or interior elevators. The Department's responsibility with respect to weighing grain is confined to the administration of the U.S. Warehouse Act. Our responsibility under that statute is explained in the response to question 1.* There have been few complaints about misweighing practices at grain warehouses licensed under the U.S. Warehouse Act. The current investigation by the Department's Office of Investigation and the Department of Justice was initiated because of problems in the grain inspection system. While the investigation is covering related aspects of the storage, handling, distribution and sale of grain, there have been no indictments for misweighing. Thus, before suggesting changes in the weighing system, we would want to evaluate the extent and nature of the problem as developed by the investigation. Further, as you suggest, a change in the U.S. Grain Standards Act to cover weighing would be an option to consider, but such an option cannot be effectively evaluated until it is known what changes will be made in that act. Question 22. What recourse or appeal is available to a buyer-seller who has a dispute on weight under the present system? Answer. On most grain when it is sold or bought, the contract specifies what weight will apply. For example, most grain going to the gulf is sold on "destination" weights. Most grain moving from country receiving points to terminals also is sold on a "destination" weight basis. There are some occasions between terminal grain dealers when grain is sold on "origin" weight. In either event the contract is satisfied by the furnishing of "official" weight of the "destination" or "origin" market as the case may be, "official" weights from markets having either a class 1 or class 2 classification by the AAR. Storage grain delivered to a warehouse or delivered from a warehouse after storage to a depositor generally will be received and delivered under "official" weights if available. The "official" personnel usually will have licenses to weigh under U.S. Warehouse Act as well. If such weights are not available, then weighers licensed under the U.S. Warehouse Act will perform the services. The weights at the warehouse will be controlling, except on CCC grain where destination "official" weights apply. In either event when there is a dispute over weights there is very little that can be done. Unless the grain was put away identity-preserved. which is a most unusual situation, the grain cannot be reweighed as it has been commingled with other grain of like grade. About all that can be done is for the weighing process to be reviewed. "Official" weight markets keep records other than the weight certificate which generally shows the scale over which the grain was weighed, the sequence of its weighing, the individual drafts, seals removed, condition of car when unloaded (leaks-depressions noted, etc. which generally are a matter of a car condition report) and whether or not there were any factors which might contribute to incomplete or faulty weighing. Thus, when a complaint is made, the official weighing agency generally reviews the supporting records and if the car or lot has a clear record there is not much more that can be done. The seller or *See p. 160. buyer must settle on the basis of the agreed upon "origin" or "destination" weights. It is not unusual for two "official" markets to have clear records on the weight of a lot of grain and unless it can be shown that something happened in transit it is a difficult situation to determine which is right or when the difference occurred. If the lot moved by rail and if circumstances warrant, a claim can be filed with the railroad. To our knowledge there are no transportation agencies taking responsibility for intransit losses on truck, barge, or vessel grain. Most State grain dealers associations and the Grain and Feed Dealers National Association have processes of arbitration for disputes between members and this recourse is taken at times. At country points most grain is received by truck and weighed over a platform scale and the owner of the grain or his representative observes the weighing process and can complain if they do not feel that the lot is being weighed correctly or coming out to their expectations. Dial type scales are used extensively and are visible to the owner or his agent. Unlike the U.S. Grain Standards Act, there are no appeal provisions written into the U.S. Warehouse Act for settlement of disputes on weight sand grades. A buyer or seller suspecting weight discrepancies at a given warehouse licensed under the U.S. Warehouse Act may notify personnel of the Warehouse Service Branch. Such complaints would then be looked into by Warehouse Service Branch personnel to determine if a violation of the U.S. Warehouse Act, such as issuance of a false weight certificate or fraudulent weighing, had taken place. If violations are found to have occurred, actions which may be taken include suspension of the weigher's license, revocation of the weigher's license, and recommenations to the Department of Justice to prosecute under section 30 of the U.S. Warehouse Act. Question 24. I understand that an employee of the Grain Division, Willard W. Griffin, made reports to his superiors in 1971 and 1972 about irregularities in the inspection system and the need for better inspection procedures. Would you furnish all such reports made by Mr. Griffin in 1971 and 1972 for the record? Answer. Copies of material relating to this matter have been referred to Mr. Gerald J. Gallinghouse. U.S. attorney, New Orleans, La., because they may be pertinent to the current series of investigations. In the event Mr. Gallinghouse interposes no objection, we will provide the material at the earliest opportunity. CHRONOLOGY OF EVENTS AND ACTIONS ON IRREGULARITIES IN INSPECTION SYSTEM AND NEED FOR BETTER INSPECTION PROCEDURES AS REPORTED BY SPECIAL AGENT WILLARD W. GRIFFIN, REGION V, OFFICE OF THE INSPECTOR GENERAL, TEMPLE, TEX., IN 1971 AND 1972 Date, Event, and Action November 9, 1970.-Special Agent Griffin directed a memorandum to then Assistant Regional Inspector General John P. Cunningham (attachment 1). This memo recites Griffin's suspicions concerning ir |