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919 STATE OF NEW YORK |

opy 1: DEPARTMENT OF FARMS AND MARKETS
DIVISION OF FOODS AND MARKETS

DR. EUGENE H, PORTER, Commissioner

ALBANY

PROVISIONS
of
Article II of the Agricultural Law
Secs, 55 to 63 inclusive

relating to

MILK DEALERS’ LICENSES

S919

Regulation
in re pur-
chase of
milk and
cream,

License.

Application
require-
ments.

License fee.

ARTICLE 3
Dairy Products

Section 55. Licensing of milk gathering stations where milk is
bought.
56. Power of commissioner to investigate.
57. Granting and revoking licenses.
58. Certiorari to review.
59. Records to be kept.
60. Right of review. a
61. Offenses.

§ 55. Licensing of milk gathering stations where milk is bought.
On and after September first, nineteen hundred and thirteen, no
person, firm, association or corporation, shall buy milk or cream
within the state from producers for the purpose of shipping the
same to any city for consumption or for manufacture unless such
business be regularly transacted at an office or station within the
state and unless such person, firm, association or corporation be
duly licensed as provided in this and the ensuing sections of this
article. Every such person, firm, association or corporation be-
fore engaging or continuing in the business of buying milk or
cream for the purposes aforesaid, shall, annually, on or before
August first, file an application with the commissioner of agri-
culture for a license to transact such business. The application
shall state the nature of the business, as hereinabove set forth, the
full name of the person or corporation applying for the license,
and, if the applicant be a firm or association, the full name of
each member of such firm, or association, the city, town or village
and street number at which the business is to be conducted, and
such other facts as the commissioner of agriculture shall prescribe.
The applicant shall further satisfy the commissioner of his or its
character, financial responsibility and good faith in seeking to
carry on such business. The commissioner shall thereupon issue
to such applicant, on payment of ten dollars, a license entitling
the applicant to conduct the business of buying milk and cream
from producers for the purpose aforesaid at an office or station at

2. ot we
SEP 99 1919

OF B87

; N 4. 5
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~ the place named in the application until the first day of Septem-

» ber next following; provided, however, that if the application be
presented in the month of July, and if the applicant so elects,

5)

such license may be granted to begin on the first day of September

~ next following and run for a term of one year. A license shall
not be issued, however, to any applicant if during the year pre-
ceding the filing of the application a complaint from any pro-
ducer and seller of milk or cream shall have been filed with the
commissioner against such applicant for any of the grounds speci-
fied in section fifty-seven hereof, and such complaint shall have
been established as true and just to the satisfaction of the com-
missioner after such complaint shall have been investigated by the
commissioner in the manner provided by section fifty-six hereof.
A license shall not be issued as provided in this section, on and
after the taking effect of this section, unless the applicant for such
license shall file with the application a good and sufficient surety
bond, executed by a surety company, duly authorized to transact
business in this state, in a sum not less than five thousand dollars,
or shall be relieved from such requirement as provided herein.
Such bond shall be approved as to its form and sufficiency by the
commissioner of agriculture.

Such applicant may in lieu of such bond deposit with the com-
missioner of agriculture money or securities in which the trustees
of a savings bank may invest the moneys deposited therein, as
provided in the banking law, in an amount equal to the sum
secured by the bond required to be filed as herein provided.

The bond required to be filed hereunder shall be given to the
commissioner of agriculture in his official capacity and shall be
conditioned for the faithful compliance by the licensee with the
provisions of this chapter, as-hereby amended, and for the pay-
ment of all amounts due to persons who have sold milk or cream to
such licensee, during the period that the license is in force. The
money or securities deposited with the commissioner of agricul-
ture, as above provided, shall constitute a separate fund and shall
be held in trust for, and applied exclusively to, the payment of
claims against the licensee making such deposit, arising from the
sale of milk or cream to such licensee.

Duration of
license.

Ground for
refusing to

issue
license.

Bond,

Securities
in lieu
of bond.

Conditions
of bond,

Disposi.
tion and
use of se-
curities,

Default in
payment. by
licensee.

Creditor
may

file verified
claim or
transcript
of judg-
ment

with com-
missioner.

Time of
filing.

Action by
commis-
sioner,

Enforce-
ment of
judgment.

Proof of
claim in
judgment.

Applica-
tion of
proceeds
of bond.
First.

Second.

Applica-
tion of
money ang
securities.
First.

4 .

Upon default by the licensee in the payment of any money due
for the purchase of milk or cream, which payment is secured by a
bond or the deposit of money or securities as hereinbefore pro-
vided for, the creditor may file with the commissioner of agri-
culture, upon a form prescribed by him, a verified statement of
his claim. If such creditor shall have reduced such claim to judg-
ment or shall thereafter and before the commencement of the
action by the commissioner of agriculture, as hereinafter pro-
vided for, reduce such claim to judgment, a transcript of such
judgment shall also be filed with such commissioner.

Such statements may be filed at any time during the period of
the license for purchases made during such period and within
ninety days from the termination of such period.

After the expiration of ninety days from the termination of any
license period the commissioner of agriculture shall, by proper ac-
tion wherein all such creditors and any surety upon any bond
given as hereinbefore provided for and the licensee shall be parties,
proceed to determine the amount due each such creditor, and the
judgment rendered in such action shall be enforced ratably for
such creditors against the surety on the bond, if one there be, or
against the moneys or securities deposited as hereinbefore pro-
vided for. If any such creditor shall have reduced his claim to
judgment such judgment shall be presumptive proof of the amount
due such creditor in any action brought by the commissioner of
agriculture as hereinbefore provided for.

Every bond given pursuant to the provisions hereof shall be ap-
plicable, in the first instance, to the payment of all claims arising
during the license period for which such bond shall continue, and
filed either during such period or within ninety days after the
expiration thereof. If all such claims shall be paid the balance
available upon such bond shall be devoted to the extinguishment
ratably of claims arising during such license period, but for which
statements shall not have been filed until after ninety days after
the expiration of such period.

All moneys and securities, deposited as herein provided for,
shall be applicable, in the first instance, to the extinguishment of
claims, properly filed, arising during the license period for which
such moneys or securities were originally deposited and if, after
the extinguishment of such claims, there shall be a surplus remain-

5

ing such surplus shall be devoted to extinguishment of claims aris- *°°"*
ing during any preceding license period which were properly filed

as hereinbefore provided, all claims for any one license period to

be of a parity. Any surplus remaining after the extinguishment oe irae
of such prior claims shall be added to the moneys or securities then

on deposit with the commissioner of agriculture or, if there be at

that time on file with such commissioner a bond given pursuant

to this section, or if there be then on deposit with such commis-
sioner additional moneys or securities deposited as herein provided

for, and if such bond or such moneys or securities, as the case may

be, shall, in the opinion of the commissioner of agriculture, be
sufficient, such surplus shall be returned to the licensee.

A person or corporation licensed hereunder shall make a veri- Ststement
fied statement of his or its disbursements during a period to be Pus*mens.
prescribed by the commissioner of agriculture, containing the
names of the persons from whom such products were purchased,
and the amount due to the vendors thereof. Such statement shall
be submitted to the commissioner of agriculture when requested
by him and shall be in the form prescribed by such commissioner.

If it appears from such statement or other facts ascertained by Ferm ot.
the commissioner of agriculture, upon inspection or investigation

of the books and papers of such licensee as authorized by section
fifty-six of this chapter, that the security afforded to persons sell-

ing milk and cream to such licensee by the bond executed or de-

posit made by such licensee as herein provided does not adequately

protect such vendors, the commissioner of agriculture may re-

quire such licensee to give an additional bond or to deposit ad- Additional
ditional money or securities, to be executed or deposited as above security
provided, in a sum to be determined by the commissioner, but not ""°*
exceeding by more than twenty-five per centum the maximum
amount paid out by such licensee to sellers of milk in any one

month: Provided, however, that the maximum amount of the Maximum
bond or deposit required from any applicant under the provisions
of this section shall be one hundred thousand dollars; and that
any applicant filing a bond or depositing money or securities in
such maximum amount shall be exempted from filing either the sxception.
statements of milk purchased, or the statements of disbursements

in this section provided for.

Excep-
tion as
to bend.

Definitions,

On com-
plaint or
by his
own
motion.

Examina-
tion of

documents.

Adjust-
ment,

Service of
complaint.

Time and
place of
service.

6 .

If the applicant for a license under this section be a person or a
domestic corporation, the commissioner of agriculture may, not-
withstanding the provisions of this section, if satisfied from an
investigation of the financial condition of such person or domestic
corporation that such person or corporation is solvent and pos-
sessed of sufficient assets to reasonably assure compensation to
probable creditors, by an order filed in the department of agri-
culture, relieve such person or corporation from the provisions
of this section requiring the filing of a bond.

The term “station” or “milk gathering station,’ as used in
this and the ensuing sections of this article, shall include an estab-
lished office where the business of buying milk or cream as herein
provided is carried on, with or without a place or premises in
connection therewith for the physical handling of milk or cream.
(As amended by chapter 651 of the Laws of 1915.)

§ 56. Power of commissioner to investigate. The commissioner
and his assistants shall have power to investigate upon the com-
plaint of any interested person, or of his own motion, the record
of any person, firm or corporation applying for or holding a li-
cense, or any transaction involving the purchase by such applicant
or licensee or attempted purchase of milk for shipment as pro-
vided in section fifty-five; and for such purpose may examine the
ledgers, books of account, memoranda or other documents of any
such person, firm, association or corporation applying for or hold-
ing a license and may take testimony therein under oath; but
information relating to the general business of any such person,
firm, association or corporation, disclosed by such investigation
and not relating to the immediate purpose thereof shall be deemed
of a confidential nature by the commissioner, his assistants, rep-
resentatives and employees. When a complaint is filed with the
commissioner, he shall attempt to secure an explanation or adjust-
ment, and, failing this within ten days, he shall cause a copy of
the complaint, together with a notice of the time and place for a
hearing thereon, to be served personally or by mail upon said ap-
plicant or licensee. If served by mail, such complaint and notice
shall be directed to the applicant or licensee at his place of busi-
ness, with postage fully prepaid thereon. Such service shall be
made at least seven days before the hearing. At the time and
place appointed for such hearing, the commissioner or his as-
sistants shall hear the parties to the complaint, shall have power
to administer oaths and shall enter in the records of the office of

7

the commissioner of agriculture a decision either dismissing such
complaint or specifying the facts which he deems established on
such hearing. (As added by chapter 408 of the Laws of 1913.)

§ 57. Granting and revoking licenses. The commissioner of
agriculture may decline to grant a license or may revoke a license
already granted when he is satisfied of the existence of the follow-
ing cases or either of them:

1. Where a money judgment has been secured by any milk
producer and has been entered against such applicant or licensee
and remains unsatisfied of record.

2. Where there has been a failure to make prompt settlements
to persons from whom he buys milk, with intent to defraud.

3. Where there have been combinations to fix prices.

4, Where there has been a continual course of dealing of such
nature as to satisfy the commissioner of the inability of the ap-
plicant or licensee to properly conduct the business or of an in-
tent to deceive or defraud customers.

5. Where there has been a continued and persistent failure to
keep records required by the commissioner or by law. (As added
by chapter 408 of the Laws of 1913.)

§ 58. Certiorari to review. The action of the commissioner of
agriculture in refusing to grant a license, or in revoking a license
granted under section fifty-five, shall be subject to review by writ
of certiorari, and if such proceedings are begun to review the
revocation of license, the license shall be deemed to be in full
force and effect until the final determination of certiorari pro-
ceedings and all appeals therefrom. (As amended by chapter
651 of the Laws of 1915.)

§ 59. Records to be kept. Every proprietor of a milk gathering
station shall keep, in such form as the commissioner of agricul-
ture may prescribe, a record of transactions of purchases of milk
or cream by him and he shall, at least semi-monthly, deliver to
each person from whom he receives or purchases milk or cream,
and in the unit of measure used in computing the amount due
therefor, an itemized statement of the several amounts or quan-
tities of such milk or cream so received or purchased at such milk
station from such person during the prior half month or, if state-
ments are delivered more frequently than semi-monthly during
that period of time which has elapsed since the delivery of such
last prior statement. If the milk or cream is purchased or re-

Hearing.

Judgment
against
applicant.

Intent to
defraud
vendor.

Combina-
tions.

Intent to
defraud
customers.

Failure
to keep
records.

Semi-
monthly
statements.

LIBRARY OF CONGR

TOO

ceived on a butter fat basis, such statement shall tee aa i
centage, or average percentage of butter fat contained in said
milk or cream as determined by tests periodical or otherwise.
Every such proprietor of a milk gathering station shall post in a
conspicuous place in such milk station, a schedule of the prices
being paid for milk or cream including the premiums paid or de
ductions made, if any, for milk or cream containing milk fat
either in excess or in lesser amount than the agreed standard, and
shall keep a correct account of all the milk or cream daily received
or purchased from each person at such milk station which account
shall be open to inspection by said person. (As amended by
chapter 651 of the Laws of 1915.)

Dissatis- § 60. Right to review. If either party to the transaction of

fied party x ;
may apply purchase and sale between a milk producer or a milk seller and a

gation. licensed buyer of milk shall be dissatisfied relative to any trans-
action of purchase and sale of milk between a milk seller and a
licensed buyer of milk, he may apply to the commissioner of
agriculture, in writing, within sixty days after the delivery of
such milk to the licensed buyer, for investigation. The commis-
sioner of agriculture shall treat such application as a complaint,
and shall cause a full investigation of the transaction complained
of to be made either by himself or one of his assistants, in the
manner provided by section fifty-seven. (As added by chapter 408
of the Laws of 1913.)

§ 61. Offenses. Any person who, being a buyer of milk for
shipment for the purposes set forth in section fifty-five, whether
such person be licensed or whether his business be transacted at a
station or otherwise, shall (a) fail to make prompt payments for
milk purchased, with intent to defraud, or (b) shall make any
false or misleading statement or statements enumerated in sec-
tions fifty-five to fifty-nine inclusive, with intent to deceive, or
(c) enter into any combination to fix prices, or (d) not being
licensed, shall conduct the business of buying milk for shipment

icneanors, 48 provided in section fifty-five, or (e) being licensed or otherwise,
engages in such business without having a station or office there-
for, or (f) fails to conform to any requirement of or violates any
provision of sections fifty-five to fifty-nine, inclusive, with intent
to deceive a seller of milk, shall be guilty of a misdemeanor. (As
added by chapter 408 of the Laws of 1913.)

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