A REPORT ON THE Flour and Hay Inspection LAWS OF THE STATE OK LOUISIANA TO THE COMMITTEE ON LEGISLATION OF THE NEW ORLEANS PRODUCE EXCHANGE. — P.Y— C. B. BUDDECKE. Digitized by the Internet Archive in 2017 with funding from University of Illinois Urbana-Champaign Alternates https://archive.org/details/reportonflourhayOObudd 33 * ) B New Orleans, May 26th, 1888. To the Honorable Committee on Legislation of the New Orleans Produce Exchange: Gentlemen, Permit me to submit the following views on the subject of the Hour and hay inspection laws of the State of Louisiana. These laws present for consideration a question of very grave importance, as they involve a principle of the highest character, and affect materially the general welfare of the people of the City of New Orleans and of the State of Louisiana. They create and justify only a principle of evil, and form precedents for a series of endless evils. The character of this principle of evil is easily illustrated by applying it to its fullest extent. The same principle which justifies a forced inspec¬ tion of Hour and hay and a tax on them, also justifies a forced inspection of all other articles of commerce and a tax on same. To subject all articles of commerce to such inspec¬ tion and taxation could only tend to the ruin of all commerce. These laws require the forced inspection of all Hour and hay coming to and sold in the city of New Orleans and impose a direct tax of two cents on every barrel of Hour and ten cents on every bale of hay. sold in the City of New Orleans. j 751300 4 Their practical operation and result have been and are a direct tax on the commerce, trade and business of the City of New Orleans, amounting annually to a very large sum of money for which the public has never received and can never receive the least benefit To the extent of the taxes thus imposed, the com¬ merce, trade and business of New Orleans are handi¬ capped, defeated and prohibited. Such laws interfere with, and oppose obstacles to commercial business, and deprive the individual citizen of his individual liberty, and freedom of ac¬ tion, with regard to his own private property and business affairs. They are arbitrary, harsh, unnecesssary restric¬ tions, and a heavy, grievous and oppressive burden on the commerce of New Orleans. The useless farce of present forced inspection of flour can be easily realized from the notorious fact, well known to the flour trade, that all traces of such inspection very quickly disappear after the flour has been inspected, whereby any benefit to the final buyer or actual consumer of the flour is ren¬ dered impossible. Flour in the New Orleans market is not sold by means, or on the faith of any inspection, but solely on the faith, guarantee and responsibility of the seller, like as in the case of all other merchandise. Flour, when offered for sale, like all other mer¬ chandise, by force of law, must be sound and mer¬ chantable. Existing laws provide ample remedies 5 for the fullest redress of any injury resulting from fraud or any other illegal act of the seller. The extreme hardship of such laws is clearly shown by the case of a merchant of New Orleans in the sale of Hour. A New Orleans flour merchant annually is compelled by law to pay besides other taxes, liberal State and City license taxes, for the privilege and permission of selling flour. In addition to such license taxes he is also by the flour inspection law compelled to pay to the State Flour Inspectors monthly tax hills for the tax on flour sold by him, amounting to twenty-live, fifty, one hundred, or more dollars per month, according to the quantity of flour sold. To the extent the merchant pays such tax on the flour sold by him, to same extent must the profits of the sale of such flour only decrease. The merchant, his employees and all parties in¬ terested in the flour trade thereby naturally can only suffer. Such grievous taxes on the flour trade of New Orleans are such a heavy burden as to render the flour business unprofitable. The harder the struggle of the merchant for suc¬ cessful business results, the greater the discourage¬ ment from such a constantly increasing amount of flour inspection taxation. These inspection laws are claimed to be derived from the police power of the State which can be, and always is presumed to be exercised, only, for the public* good—for the pro¬ tection of the public health. 6 The flour and hay inspection laws truly render no benefit to the public and no protection for the public health. Where no public benefit—no protection for the public health is afforded, all reason for such laws naturally fail. The hay inspection law, influenced and created by the same principle of evil of the flour inspection law, is subject to the same objections opposed to the latter law. The same considerations and reasons which reject the flour inspection law, also reject the hay inspection law. In the case of the hay inspection law, it has been claimed that the tax or charge on hay lias been reduced and now only covers a moderate compen¬ sation for the weighing of the hay. Such claim, however true, can not justify the gross injustice of the absolute denial of the right of the owner of the liay to weigh his own hay himself, or to have it weighed for one-fourth of the cost of the charge fixed by law. A chief characteristic feature, common to both of these inspection laws, is that they apply to and are confined only to one particular locality of the whole State of Louisiana and — only to the City of New Orleans, the entire remainder of the State being re¬ lieved of their onerous provisions. All of the people of the entire State of Louisiana outside of the City of New Orleans, therefore, re¬ quire no forced inspection of flour and hay, and, thereby evidence most emphatically the truth of the fact that such inspection laws are a useless farce fraught only with evil, what is also further confirmed by the fact that throughout the United States there cannot be found another city, afflicted in the same manner as New Orleans has been and is. The taxation resulting from these laws is thus shown to be most unequal and unjust and clearly in violation of constitutional law. The offices created by these inspection laws are, truly and substantially, pure, naked political sine¬ cures, intended and designed originally solely as a reward to political partisans for polical partisan services. These inspection laws, more appropriately, could be called and termed laws for the forced charity wrung from a victimized public and for the reason that the revenues collected under these laws are not paid into the public treasury, but simply provide an easy support and a comforatble living for the incumbents of the offices established by these laws. These State Boards of Inspection in the past, as political institutions, have been infamous political abuses, and have been used, most shamefully, for the severe oppression and great injury of the commerce, trade and business of New Orleans. These laws and the offices created and maintained by them, are relics of the corrupt reign of the period of reconstruction, and remain still in force, for the reason that until now they have accidentally escaped all chances for honest judicial or legislative test of their merits and validity. The subject of flour and hay inspection is justly and legitimately a business subject and as such should be viewed and treated. Hie New Orleans Produce Exchange, a commer¬ cial corporation under the laws of the State of Louisiana, composed of, and representing a large number of the most intelligent merchants of the commercial community of New Orleans, are chiefly and most directly interested in this subject of flour and hay inspection. Such body of intelligent mer¬ chants are amply competent to deal with this legiti¬ mate business subject, which should be lett entirely to them for their action, and the adoption of such necessary measures, rules and regulations as may be required by the demands and wants of the trade in¬ terested. Every principle of equity, justice and law condemn such infamous laws, and every one inter¬ ested in the general welfare of the Citv of New Orleans and State of Louisiana, can only demand their total, absolute repeal, whereby much will be accomplished for the eradication of a principle of endless evil, which in the past has done much harm, and in the future can only do more harm. For some twenty years past the commercial com¬ munity of New Orleans have been struggling for relief from such and many other political abuses and it is hoped that some relief will now be obtainable. Yours respectfully, i> HIDDEOK E.