MR. WHITFORD: Which grades bring the highest prices? MR. MANGELSDORF: The large particles of kernel demand a premium over the smaller sizes. That is one of the discrepancies in the shelling operation, that the material that costs us the least money to produce gives the largest returns. When you have small pieces, the operation of removing the last remaining shells and off-colored particles is much greater than with the large kernels. One large kernel amounts to considerable weight and you may have to pick up many small particles to represent the same weight. PRESIDENT MacDANIELS: We appreciate very much your talk, Mr. Mangelsdorf. One thing that interested me was your statement that having large pieces was an advantage. That question has been argued on the floor of these conventions a number of times and there have been those who claimed that the larger pieces were all ground up anyway and that the varieties from which you can recover large pieces were of no particular merit commercially. The next paper is, "Nut Shells--Asset or Liability?", T. S. Clark of the United States Department of Agriculture, Regional Laboratory, Peoria, Illinois. Nut Shells--Assets or Liabilities T. S. CLARK, _Northern Regional Research Laboratory_,[1] _Peoria, Illinois_ ABSTRACT. The value of nut shells as materials for agricultural and industrial use is discussed. Problems of plant location, shell collection, processing, and hazards are considered. Applications and specifications are illustrated. We are particularly pleased that the Northern Nut Growers Association is presenting this opportunity for a discussion of nut shell utilization. The Northern Regional Research Laboratory feels that it has played an important role in what is now becoming a new industry of increasing magnitude. For the benefit of those who are not already acquainted with the Laboratory, permit me to digress momentarily to explain briefly its organization and functions. The Northern Regional Laboratory at Peoria, Illinois, is one of four large research laboratories established by an act of Congress in 1938 and placed under the administration of the Bureau of Agricultural and Industrial Chemistry. The function of these laboratories is to conduct research and to develop new chemical and technical uses as well as new and expanded markets for the farm commodities and byproducts of the regions in which the laboratories are located. The commodities studied at the Northern Regional Research Laboratory are the oilseeds, cereal grains and agricultural residues which include corncobs, stalks, straws, sugar cane bagasse, hulls and shells of nuts and fruit pits. Because of the great similarity in chemical and physical characteristics of the residues all research on these materials is conducted at the Northern Laboratory.