MR. MANGELSDORF: He receives his pay on the basis of the whole nut that he delivers to the plant, and we try to exercise some control over the quality of the delivery. Samples are taken and cracked, and if most of the nuts are rotten or the quality is very low, we may reject buying that entire lot, or we may discount the lot of nuts a certain amount, depending upon the percentage of the nut meats that are salvaged. MR. MURPHY: Do you pay a premium for cultivated nuts? MR. MANGELSDORF: That I can't answer, but I don't believe that they have this past season. I wouldn't want to go on record as to that. There is a tremendous difference in the flavor of what we call the "eastern" black walnut in comparison with the California or western black walnut. We think that the flavor of the California walnut is not at all comparable to the eastern black walnut. MR. MCDANIEL: You don't notice any difference, do you, between the Missouri and the Kentucky nuts? MR. MANGELSDORF: No, not in my experience, but there is a tremendous difference in flavor between the eastern and western. MR. ROHRBACHER: On what basis do you buy black walnuts? MR. MANGELSDORF: I understand that each individual sale is an individual "horse-trading" deal, the price paid, depending upon the quality of nuts, moisture content, color and other factors. Of course, our aim is to buy the nuts as cheaply as possible and the object of the fellow selling the nuts is to get the greatest return that he can from what he has to offer. So we try to reach a happy medium in our dealings, and a lot of concessions might be made one way or the other with special lots that are offered for sale. MR. WHITFORD: What sizes and grades of kernels do you have? MR. MANGELSDORF: We have the large, medium, small and granules. Granules are very small pieces. Usually the prices paid for the nuts are not determined, actually, until the crop starts to move. Everybody has an idea what the market price will be for the nuts, but nothing is crystallized or brought to a focus until the first nuts are actually on the market. Then the nuts sold are examined as to quality, giving some idea of the future quality of deliveries that might be made in that section, and then prices can be established. As I say, it's a nutty business. I haven't grown very many gray hairs yet, but I expect to have many before I am through. And each new problem that arises in this nut business, when you reach a solution for it, invariably there are two other problems that are created, and if you are not wide awake, one of these problems can be much greater than the one that you just had a solution for. MR. DAVIDSON: Do you know anything as to the bearing of black walnuts this year as compared to previous years? MR. MANGELSDORF: Mr. Walker and Mr. McDonald are out at the present time making a crop inspection tour of the various localities, and I have had no report as to what the condition of the crop will be this year.