Chap. 357.—An ACT to amend and re-enact sections 1257, 1258, 1260, 1261,
1264 and 1265 of the Code of Virginia in relation to the sale of farm
produce on commission. [S B 185]

Approved March 19, 1920.

1. Be it enacted by the general assembly of Virginia, That sections
twelve hundred and fifty-seven, twelve hundred and fifty-eight, twelve
hundred and sixty, twelve hundred and sixty-one, twelve hundred and
sixty-four and twelve hundred and sixty-five of the Code of Virginia
be amended and re-enacted so as to read as follows:

Sec. 1257. Definitions as used in this chapter.—The term “com-
mission merchant,” as used in this chapter, shall include every person,
firm, exchange, association or corporation accepting or receiving farm
produce on consignment, or who sells or offers for sale such farm
produce on commission within this State, except where such farm
produce is sold for consumption and not for re-sale.

This chapter shall not apply to the sale of farm produce at public
auction by a duly licensed auctioneer, acting as the agent of another
to whom such farm produce shall have been consigned; nor to the
sale by sheriffs, constables and other officers and fiduciaries and court
officials ; nor shall this act apply to seeds sold at retail.
The term farm produce shall include all agricultural, horticultural
and other products of the soil, live-stock, meats and meat products,
poultry, eggs, dairy products, nuts and honey, but shall not include
timber products, floricultural products, tea or coffee, peanuts, or cotton
when sold under the supervision of a chartered exchange.

Sec. 1258. Sale of farm produce on commission; certificate ot
registration therefor—No person, firm, exchange, association or cor-
poration shall accept or receive farm produce on consignment, or sell
or offer for sale such farm produce on commission within this State,
without having first obtained from the commissioner of agriculture
and immigration of the State of Virginia, a certificate of registration,
as hereinafter provided. Every person, firm, exchange, association or
corporation in this State accepting or receiving farm produce on con-
signment, or selling or offering for sale such farm produce on commis-
sion, shall annually on or before the first day of May, file an applica-
tion, with satisfactory reference, with the commissioner of agriculture
and immigration for a certificate of registration to do a commission
business in farm produce. :

Such applicant shall maintain an office or place of business in the
State of Virginia, and shall state the kind or kinds of farm products
which the applicant proposes to handle, the full name of the person,
firm, exchange, association or corporation applying for such certificate
of registration, and if the applicant be a firm, exchange, association or
corporation, the full name of each member of the firm, or the names
of the officers of the exchange, association or corporation, and the
name of the local agent of the exchange or association, and the city,
town or village and street number at which the business is to be con-
ducted. Such applicant shall further satisfy the commissioner of agri-
culture and immigration of his or its charter, responsibility and good
faith in seeking to carry on a commission business. The commissioner
of agriculture and immigration shall thereupon issue to such appli-
cant, on payment of five dollars, and the execution and delivery of a
bond, a duly registered certificate, entitling the applicant to conduct
the business of receiving and selling farm produce on commission at
the place named in the application until the first day of May next
following. - |

Sec. 1260. Power of commissioner of agriculture and immigration
to investigate——The commissioner of agriculture and immigration, or
his assistants, shall have power to investigate, upon the verified com-
plaint of an interested person, the record of any person, firm, exchange,
corporation or association applying for or holding a registration certi-
ficate, or any transaction involving the solicitation, receipt, sale or at-
tempted sale of farm produce on a commission, basis, the failure to
make proper and true accounts and settlements at prompt and regular
intervals, and making of false statements as to conditions, quality or
quantity of goods received or while in storage, the making of false
statements as to market conditions, with intent to deceive, or the
failure to make payment for goods received or other alleged injurious
transactions ; and for such purpose, may examine at the place of busi-
ness of the holder of such registered certificate that portion of the
1920. | ACTS OF ASSEMBLY. 533

ledgers, books of account, memoranda or other documents relating to
the transactions involved of any commission merchant and may take
testimony therein under oath.

The commissioner of agriculture and immigration is hereby au-
thorized, in his discretion, to designate one or more fit and proper
persons, in any city or county in this State, who shall be known as
“official weighers of agricultural produce.” Upon the request of any
consignor of farm produce, which is sold by weight, the commissioner
shall require an official weigher of the city or county to which the
said produce is shipped, to supervise the weighing of the said produce.
The said weigher shall thereupon prepare, in triplicate, upon forms
furnished by the commissioner, a certificate of the actual weight of
such produce; one copy of the said certificate to be left with the con-
signee, one copy mailed by the commissioner to the consignor and
the third copy to be kept on file by the commissioner. In all questions
arising under the provisions of this act, the certificate of the weigher,
when duly sworn to, shall be prima facie evidence of the fact or facts
therein certified. The commissioner is hereby authorized, by and with
the consent of the board of agriculture and immigration, to adopt rules
and regulations necessary to carry out the foregoing provisions and
to fix the compensation of the said official weighers, and for their
services in weighing and certifying the weights of agricultural produce,
as herein above provided, the said weighers shall be paid such sum
as may be fixed by the said commissioner, said compensation to be paid
from such appropriation as may be made for the purpose of carrying
out the provisions of this act..

When a consignor of farm produce fails to obtain satisfactory set-
tlements in any transaction within thirty days after receipts of returns
on any consignment he shall make written complaint to the commission
merchants. Failing to secure a satisfactory adjustment, a certified
complaint may be filed within ten days to the commissioner of agri-
culture and immigration. The commissioner of agriculture and immi-
gration shall attempt forthwith to secure an explanation or adjust-
ment; failing this, within seven days he shall cause a copy of such
complaint, together with a notice of a time and place for hearing on
such complaint, to be served personally, or by mail, upon such com-
mission merchant. Such service shall be made at least seven days
before the hearing, which shall be held in the city or county in which
is situated the place of business of the holder of the registered certi-
ficate. At the time and place appointed for such hearing, the com-
missioner, or his assistant, shall hear the parties to such complaint,
shall have power to administer an oath, and shall enter in the office
of the commissioner of agriculture and immigration, at Richmond,
a decision either dismissing such complaint or specifying the facts
which he deems established on such hearing, and in case such facts
are established as cause him to revoke such certificate, he shall bring
an action on the bond within sixty days of the filing of such decision.

Sec. 1261. Granting and revoking certificates—The commissioner
of agriculture and immigration may decline to grant a certificate, or
may revoke certificate already granted where he is satisfied of the
existence of the following causes or any of them:

(1) Where a money judgment has been entered against such
commission merchant and upon which execution has been returned
unsatisfied. | |

(2) Where false or improper charges have been imposed for
handling or for services rendered. : .

(3) Where there has been a failure to account promptly and
properly or where settlements have been made with intent to defraud,
where there has been a failure to comply with any of the provisions
vr requirements of this act.

(4) Where there have been any false or misleading statements
as to condition, quality or quantity of goods received or held for sale
on commission when the same might be known on reasonable in-
spection.

(5) Where there has been false or misleading statement or state-
ments as to market conditions with intent to deceive.

(6) Where there has been combination or combinations to fix
prices.

(7) Where the commission merchant directly or indirectly pur-
chases the goods for his own account without prior authority in writ-
ing therefor from the consignor; provided, however, this shall not
apply to tobacco warehousemen, when the consignor is present in
person at the sale of his tobacco, or represented by a duly authorized
agent.

(8) When the certificate shall have been revoked in accordance
with the provisions of this chapter, the commissioner of agriculture
and immigration shall publish in a daily paper to be selected by him in
the city of Richmond, Virginia, once a week for two successive weeks,
the fact of such revocation and the cause therefor; and also in the
next bulletin issued by the commissioner of agriculture.

Sec. 1264. Offenses; how punished.—Any person, firm, exchange,
association or corporation who shall receive or offer to receive, sell,
or offer to sell on commission, within the State, any kind of farm
produce without a registered certificate, except as in this chapter per-
mitted, or any person, who being a commission merchant in the farm
produce shall (a) impose false or improper charges for handling, or
for services in connection with farm produce, or (b) fail to account
for such farm produce promptly and properly and to make settlement
therefor, or shall make false or misleading statement or statements,
as to market condition with intent to deceive, or (d) enter into any
combination or combinations to fix prices, or (e) directly or indirectly
purchases for his or its own account, goods received by him or it upon
consignment without prior authority, in writing therefor from the
consignor; provided, however, this shall not apply to tobacco ware-
housemen, when the consignor is present in person at the sale of his
tobacco, or represented by a duly authorized agent; or (f) any such
person handling, shipping, or selling farm produce who shall make
false statements as to grade, condition, markings, quality or quantity
of goods shipped, or packed in anv manner, shall be guilty of a misde-
meanor and shall be subject to a fine of not less than twenty-five
dollars, or to exceed five hundred dollars, in the discretion of the
court or jury trying the case.

Sec. 1265. Board of agriculture and immigration to adopt rules
and regulations——The board of agriculture and immigration of this
State shall adopt all needful rules and regulations providing for the
collection of all fees, forfeitures and fines hereunder and shall require
the same to be deposited in the treasury of the State, except where
otherwise prescribed by law and to be drawn therefrom so far as may
be necessary to pay the expenses of carrying out the provisions of the
eight preceding sections upon warrants on the auditor of public ac-
counts, issued by the commissioner of agriculture and countersigned
by the president of the said board, provided the said commissioner of
agriculture, under the directions of said board, shall keep an itemized
account of all such receipts and expenditures.

Any law now existing requiring the licensing and the payment of
a fee by commission merchants before doing business in this State
shall remain in force, the requirements of this chapter being in addition
thereto.