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$201.67 Packers or dealers not to own or finance selling agencies. No packer subject to the act, or independently operated and separately registered dealer, shall have an ownership interest in, finance, or participate in the management or operation of a market agency registered to sell livestock at posted stockyards on a commission basis; nor shall such a market agency permit such a packer, or independently operated and separately registered dealer, to have an ownership interest in, finance, or participate in the management or operation of such market agency.

$201.68 Packers not to own or finance order buyers. No packer subject to the act shall have an ownership interest in, finance, or participate in the management or operation of a market agency registered to purchase livestock at posted stockyards on a commission basis; nor shall such a market agency permit a packer to have an ownership interest in, finance, or participate in the management or operation of such market agency.

§ 201.69 Furnishing information to competitor buyers. No packer, dealer, or order buyer, in connection with transactions subject to the provisions of the act, shall, in person, or through employed buyers, for the purpose of restricting or limiting competition, manipulating livestock prices, or controlling the movement of livestock, prior to, or during the conduct of, his buying operations: (a) Furnish competitor packers, dealers, order buyers, or their buyers or representatives, similarly engaged in buying livestock, with information concerning his proposed buying operations, such as the species, classes, volume of livestock to be purchased, or prices to be paid; or (b) furnish any other buying information to competitor buyers.

$201.70 Restriction or limitation of competition between packers and dealers prohibited. Each packer subject to the act shall conduct his buying operations at posted stockyards, and at other locations, in competition with, and independently of, other packers. Each packer, and dealer engaged in purchasing livestock at posted stockyards, in person or through employed buyers, shall conduct his buying operations at such stockyards in competition with, and independently of, other packers and dealers similarly engaged.

SERVICES

§ 201.71 Accurate weights. Each stockyard owner, market agency, or licensee who weighs livestock at a posted stockyard or live poultry in a designated area shall install, maintain, and operate the scales used for such weighing so as to insure accurate weights.

§ 201.72 Scales; testing of. Each stockyard owner, market agency or licensee who weighs livestock at a posted stockyard or live poultry in a designated area for purposes of purchase or sale or who furnishes scales for such purposes shall cause such scales to be tested properly by competent agencies at suitable intervals in accordance with instructions of the Chief, copies of which will be furnished to each stockyard owner, market agency, or licensee.

$201.73 Scale operators to be competent. Stockyard owners, market agencies, and licensees shall employ only competent persons of good character and known integrity to operate scales at posted stockyards or in designated areas for weighing livestock or live poultry for the purpose of purchase or sale. They shall require such employees to operate the scales in accordance with instructions of the Chief, copies of which will be furnished to each stockyard owner, market agency, or licensee who employs persons to operate scales used for the purposes herein indicated. They also shall require such employees to "rotate" in their weighing assignments at stockyards operating three or more scales. Any person found to be operating scales incorrectly, carelessly, in violation of instructions, or in such manner as to favor or injure any party or agency through incorrect weighing or incorrect weight recording shall be removed from his weighing duties.

$201.74 Scales; reports of tests and inspections. Each stockyard owner, market agency, or licensee who weighs livestock at a posted stockyard or live poultry in a designated area for purposes of purchase or sale, shall furnish reports of tests and inspections of scales used for such purposes on farms which will be furnished by the Chief on request. The stockyard owner, market agency, or licensee shall retain one copy of such form when executed, shall cause one copy to be retained by the agency conducting the test and inspection of the scales, and shall deliver the third copy to the District Supervisor having charge of the work under the act in the particular district in which the scales being tested are located. In case the test and inspection of scales as herein required are conducted by an agency of a State or municipality or other governmental

subdivision, the forms ordinarily used by such agency for reporting tests and inspections of scales shall be accepted in lieu of the forms furnished for this purpose by the Chief: Provided, That the test and inspection forms used by the State or other governmental agency contain substantially the same information as that required by the official form.

$201.75 Scales; repairs, adjustments, or replacements after inspection. No scale shall be used by any stockyard owner, market agency, or licensee, at a posted stockyard or in a designated area, unless it has been found upon test and inspection to be in a condition to give accurate weights. If any repairs, adjustments, or replacements are made upon such a scale it shall not be placed in use until it has again been tested and inspected in accordance with these regulations.

$201.76 Reweighing. Stockyard owners, market agencies, and licensees, or their employees, shall reweigh livestock or live poultry on request of duly authorized representatives of the Secretary.

§ 201.77 Weighing for purposes other than purchase or sale. Every stockyard owner, market agency, and licensee who weighs livestock or live poultry, at a posted stockyard or in a designated area, for purposes other than purchase or sale, shall show on the scale tickets or other records used in connection with such weights the fact that they are not weights for the purpose of purchase or sale.

$201.78 Packer scales. Packers owning or operating scales on which livestock is weighed for purposes of purchase in commerce for slaughter shall install, maintain, and operate such scales so as to insure accurate weights. They shall cause such scales to be tested properly by competent agencies at suitable intervals in accordance with instructions of the Chief and shall submit to the District Supervisor copies of reports on at least two scale tests made during the year. They shall employ only competent persons of good character and known integrity to operate such scales and shall require such employees to operate the scales in accordance with instructions of the Chief. Any employee found to be operating scales incorrectly, carelessly, in violation of instructions, or in such manner as to favor or injure any party or agency through incorrect weighing or incorrect weight recording shall be removed from his weighing duties. For each draft of livestock weighed for purposes of purchase or sale a scale ticket shall be issued showing, in addition to the weight of the livestock and the amount of dockage, if any, the name of the seller, the name of the buyer, the species, number of head, initials of weigher, and date of weighing. Scale tickets shall be executed at least in duplicate, one copy being supplied the seller and one copy being retained by the packer for a period of not less than six months. Scale tickets printed on type-registering weigh beams shall conform to the specifications of the National Bureau of Standards. No scale shall be used by any packer in weighing livestock for purchase unless it has been found, upon test and inspection, to be in condition to yield accurate weights. If any repairs, adjustments, or replacements are made upon such a scale it shall not be used until it has been retested and found accurate.

$201.79 Facilities and services at posted stockyards or designated cities, markets, or places-(a) Facilities and services at posted stockyards or designated cities, markets, or places; discrimination prohibited. No stockyard owner shall discriminate unfairly with respect to the utilization of pens, alleys, buildings, or facilities for the yarding, weighing, or handling of livestock, or of space for packing, rendering, and other establishments, or otherwise in furnishing services and facilities at his stockyard. No licensee shall discriminate unfairly with respect to the utilization of facilities for the handling of live poultry at designated cities, markets, or places, or discriminate unfairly in the weighing or handling of live poultry or otherwise in furnishing services and facilities thereat. (b) Assignment of pens and facilities. Each person registering to operate as a market agency or dealer shall, before commencing or engaging in the business for which he is registered, apply to the stockyard owner for, and receive assurance of, the use of pens and facilities necessary in the conduct of his business. Every stockyard owner shall, upon reasonable request, or upon his own initiative, without unfair or unjust discrimination, assign to market agencies desiring to engage in selling livestock on a commission basis at the stockyards and to dealers desiring to engage in buying and selling livestock at the stockyard reasonable pens and facilities to be used connection with the holding, feeding, watering, sorting, or selling of livestock consigned to market agencies or the buyng, selling, or receiving of livestock by dealers at such stockyard: Provided, That if conditions warrant the stockyard owner may assign reasonable pens or other facilities to

be used jointly or in common by two or more of such dealers. Assignments of pens and facilities shall be made, reviewed annually or oftener, if conditions warrant, and adjusted or changed, in number or location, on the basis of the availability of pens and facilities, the need of the registrant for such assignment, volume and kind of livestock handled, the number, size, character, and kind of consignments received or lots purchased, the seniority of the market agency or dealer, the operating conditions of the stockyard, and other pertinent considerations: Provided, That no assignment, adjustment, or change shall unfairly or unjustly discriminate against any market agency or dealer or impair the efficiency of operations or the reasonableness of stockyard services furnished patrons of the market.

(c) Dealers required to operate in assigned pens. Dealers engaged in buying and selling livestock at a posted stockyard shall receive, handle, feed, water, hold, sort, trade on, or sell all livestock bought or received by them at such stockyard, and otherwise carry on their dealer operations in pens and facilities assigned to them by the stockyard owner. This shall not prohibit dealers from consigning livestock to, or bona fide planting livestock with, registered market agencies at the stockyard for sale: Provided, That, if conditions at a particular market require such action, the market agencies and the stockyard owner shall prescribe reasonable hours within which dealer-owned livestock may be held in pens assigned to the market agencies.

$201.80 Stockyard facilities or services to be furnished only to unsuspended, properly registered, and bonded parties. No stockyard owner or operator shall, after notice, furnish services or facilities at his stockyard to any person who attempts to engage in the business of a market agency or dealer at his stockyard without being properly registered and bonded as required by the act and these regulations or whose registration is under suspension.

§ 201.81 Suspended or revoked registrant or licensees. No stockyard owner, packer, registrant, or licensee shall, after notice, employ any person whose registration or license has been suspended or revoked to perform activities at a posted stockyard or in a designated area during the period of such suspension or revocation. No stockyard owner, registrant, or license shall, at a posted stockyard or in a designated area, after notice, furnish services or facilities or sell livestock or live poultry to or buy livestock or live poultry from any person required by the act and these regulations to be registered and bonded, or licensed, who is not so registered and bonded, or licensed, or whose registration or license is suspended or revoked.

$201.82 Livestock; care and promptness in yarding, feeding, watering, weighing, and handling. Each stockyard owner and registrant, shall exercise reasonable care and promptness in respect to yarding, feeding, watering, weighing, or otherwise handling livestock to prevent waste of feed, shrinkage, injury, death, or other avoidable loss.

§ 201.83 Live poultry; care and promptness in feeding, watering, weighing, transporting, and handling. Each licensee shall exercise reasonable care and promptness in respect to unloading, placing in coops, feeding, watering, weighing, transporting, or otherwise handling live poultry to prevent waste of feed, shrinkage, injury, death, or other avoidable loss.

$201.84 Feed and water furnished livestock or live poultry. Each stockyard owner, market agency, or licensee, who furnishes feed or water to livestock at posted stockyards or live poultry in designated areas shall see that it is wholesome and fit for the purpose. They shall collect for feed so furnished according to actual or carefully estimated weigh only and in accordance with their schedules of rates and charges filed under the act.

$201.85 Livestock auctions; requirements as to accommodations and persons entering auction ring. Stockyard owners and market agencies shall furnish adequate accommodations for the public to see and place bids on livestock offered for sale at auction: but only those persons whose presence is necessary to the proper handling, buying, or selling of the livestock shall be permitted in the auction ring while the auction is in progress.

INSPECTION OF BRANDS

$201.86 Application for authorization by State agencies and duly organized State livestock associations; requisites. A department or agency of a State, or a duly organized livestock association of a State, in which branding or marking of livestock, or both, as a means of establishing ownership prevails by custom or statute, which desires to obtain an authorization to charge and collect at any stockyard subject to the provisions of the act a reasonable and nondiscrimi

natory fee for the inspection of brands, marks, and other identifying characteristics of livestock originating in or shipped from such State for the purpose of determining the ownership of such livestock shall file with the Deputy Administrator an application in writing for such authorization. The application shall set forth clearly facts showing the necessity for inspection and shall show that branding or marking, or both branding and marking, livestock as a means of establishing ownership prevails by custom or statute in the State. The application shall set forth additional information, including facts showing the experience, extent and efficiency of the organization, possession of necessary records, and any other factor relating to the ability of the applicant to perform the proposed service and, in addition, in the case of a duly organized livestock association, the financial responsibility of the applicant and evidence of its organization. The application shall further state the names of the stockyards at which the applicant proposes to perform this service and the fee which the applicant proposes to charge for rendering the service.

$201.87 Two or more applications from same State; procedure. In case two or more applications for authorizations to collect a fee for the inspection of brands, marks, and other identifying characteristics of livestock, for the purpose of determining the ownership of such livestock, are received from the same State, and the facts set forth in the applications show such action to be necessary in order to reach a proper determination, a hearing will be held in conformity with the applicable rules of practice governing proceedings under the act.

§201.88 Registration and filing of schedules. Upon the issuance of an authorization to an agency or an association, said agency or association shall register in accordance with the provisions of § 201.10 and shall file a schedule of its rates and charges for performing the service in the manner and form prescribed by §§ 201.17 to 201.26, inclusive.

§201.89

Records of authorized agencies or associations. Authorized agencies or associations shall maintain adequate records showing in detail the income derived from the collection of authorized fees, the disbursement of such funds as expenses for conducting the services, the inspections performed, and the results thereof, including records showing a full description of brands, marks, and other identifying characteristics of livestock which have been inspected. They shall also maintain currently records of the brands, marks, and other identifying characteristics of livestock located in the State from which such agency or association will operate, and with reference to which the authorization has been granted.

§ 201.90 Fees; deduction and accounting. Persons registered as market agencies selling livestock on a commission basis, at stockyards where an agency or association has been authorized under the provisions of section 317 (a) of the act to collect a reasonable fee for the inspection of brands, marks, and other identifying characteristics of livestock, shall deduct from the proceeds of the sale of such livestock on which such inspection has been performed the fee as set forth in the tariffs filed by the agency or association and in effect at the time the services are rendered and shall pay over to the authorized agency or association the amount of such fees. Said market agencies in accounting to the owner or consignor of the livestock on which such fees are collected shall clearly show the amounts deducted from the proceeds for the payment of such fees and the purpose for which the payments are being made. All other persons receiving at posted stockyards livestock which is subject to inspection by an agency or association which has been authorized under the provisions of section 317 (a) of the act to collect a reasonable fee for the inspection of brands, marks, and other identifying characteristics of livestock, shall pay, upon demand, to such agency or association the fees authorized by the act to be assessed and collected.

$201.91 Inspections; reciprocal arrangements by authorized agencies or associations. An authorized agency or association may make arrangements with an association or associations in the same or in another State, where branding or marking livestock prevails by custom or statute to perform inspection service at posted stockyards on such terms and conditions as may be approved by the Deputy Administrator: Provided, That such arrangements will tend to further the purposes of the act and will not result in duplication of charges or services. $201.92 Maintenance of identity of consignments; inspection to be expedited. All persons having custody at a posted stockyard of livestock subject to inspection shall make it available to the inspection agency authorized under the act in such manner as to preserve the identity of the consignment until inspection has been completed. Agencies authorized to conduct such inspection shall perform the work as soon after receipt of the livestock as practicable and as rapidly

as is reasonably possible in order to prevent delay in marketing, shrinkage in weight, or other available losses.

§ 201.93 Existing contracts between authorized agencies; recognition and continuation. The provisions of existing contracts between agencies authorized to collect fees and market agencies engaged in selling livestock on a commission basis, with reference to disposition of proceeds arising from the sale of livestock as to which ownership has been questioned, shall not be affected by these regulations to the extent that such contracts contain no provisions which are in conflict with the act or such regulations. Copies of all such contracts shall be filed promptly with the Chief at Washington, D. C.

GENERAL

8 201.94 Information as to business; furnishing of by packers, stockyarα owners, registrants, and licensees. Each packer, stockyard owner, registrant, and licensee shall give to the Secretary or his duly authorized representatives in writing or otherwise, and under oath or affirmation if requested by such representatives, any information concerning the business of the packer, stockyard owner, registrant, or licensee which may be required in order to carry out the provisions of the act and these regulations within such reasonable time as may be specified in the request for such information.

§ 201.95 Inspection of records and property of packers, stockyard owners, registrants, and licensees. Each packer, stockyard owner, registrant, and licensee shall, upon proper request during ordinary business hours, permit authorized representatives of the Secretary to enter the place of business and examine records requested pertaining to the business of the packer, stockyard owner, registrant, or licensee as such, and to make copies thereof, and inspect such property of persons subject to the act as is necessary to carry out the provisions of the act and these regulations. Any necessary facilities for such examination of records and inspection of property shall be extended to authorized representatives of the Secretary by the packer, stockyard owner, registrant, or licensee, his agents and employees.

GENERAL

§201.96 Packers, stockyard owners, registrants, or licensees; information concerning business not to be divulged. No agent or employee of the United States shall, without the consent of the packer, stockyard owner, registrant, or licensee concerned, divulge or make known in any manner, except to such other agent or employee of the United States as may be required to have such knowledge in the regular course of his official duties or except insofar as he may be directed by the Secretary or by a court of competent jurisdiction, any facts or information regarding the business of any packer, stockyard owner, registrant, or licensee which may come to the knowledge of such agent or employee through any examination or inspection of the business or records of the packer, stockyard owner, registrant, or licensee or through any information given by the packer, stockyard owner, registrant, or licensee pursuant to the act and regulations.

$201.97 Annual reports. Every packer, stockyard owner, market agency, dealer, and licensee shall file annually with the Branch a report on prescribed forms not later than March 15 following the calendar year end or, if the records are kept on a fiscal year basis, not later than 60 days after the close of his fiscal year. The Chief on good cause shown or on his own motion may waive the filing of such reports in particular cases.

Mr. PETTUS. Not all of them are directly applicable to the stockyards. They also apply to people who operate in the stockyards, such as buyers, packers, commission men, and dealers.

Mr. WHITTEN. The fellow who is operating the stockyards is subject to the regulations, which cover some 20 pages. I think it is quite natural for him to want the other fellow to have that, too. Mr. PETTUS. I presume it is natural.

Mr. WHITTEN. In the case of these people who are now posted, did they request it, or was that a case of the Government stepping in and imposing it on them?

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