"(b) The terms of office of the appointed members of the board first taking office after the approval of this Act, shall expire, as designated by the President at the time of nomination, four at the end of the second year, four at the end of the fourth year, and four at the end of the sixth year, after the date of the approval of this act. A successor to an appointed member of the board shall be appointed in the same manner as the original appointed members, and shall have a term of office expiring six years from the date of the expiration of the term for which his predecessor was appointed.

"(c) Any person appointed to fill a vacancy in the board occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term.

"(d) Any member of the board in office at the expiration of the term for which he was appointed, may continue in office until his successor takes office.

"(e) Vacancies in the board shall not impair the powers of the remaining members to execute the functions of the board, and a majority of the appointed members in office shall constitute a quorum for the transaction of the business of the board. "(f) Each of the appointed members of the board shall be a citizen of the United States, shall be the producer of some one or more agricultural products or shall be interested in and truly representative of agriculture, shall not actively engage in any other business, vocation, or employment than that of serving as a member of the board, and shall receive a salary of $10,000 a year, together with necessary traveling expenses and expenses incurred for subsistence or per diem allowance in lieu thereof, within the limitations prescribed by law, while away from the principal office of the board on business required by this act, or if assigned to any other office established by the board, then while away from such office on business required by this act.

"(d) Shall make an annual report to Congress. "(e) May make such regulations as are necessary to execute the functions vested in it by this Act.

"(f) May (1) appoint and fix the salaries of a secretary and such experts, and, in accordance with the classification act of 1923 and subject to the provisions of the civil service laws, such other officers and employees, and (2) make such expenditures (including expenditures for rent and personal services at the seat of government and elsewhere, for law books, periodicals, and books of reference, and for printing and binding) as may be necessary for the execution of the functions vested in the board.

"(g) Shall meet at the call of the chairman, or of the Secretary of Agriculture, or of a majority of its members.

"(h) Shall keep advised, from any available sources, of crop prices, prospects, supply, and demand, at home and abroad, with especial attention to the existence or the probability of the existence of a surplus of any agricultural commodity or any of its food products, and it may advise producers through their organizations or otherwise in matters connected with the adjustment of production, distribution, and marketing of any such commodity, in order that they may secure the maximum benefits under this act.

"(i) Shall advise producers through their organizations or otherwise in the development of suitable programs of planting

or breeding, so that burdensome crop surpluses may be avoided or minimized, in order that they may secure such benefits.

"COMMODITY ADVISORY COUNCILS

"SEC. 4. (a) Prior to the commencement of a marketing period in respect of any agricultural commodity the board is directed to create for such commodity an advisory council, which shall be a governmental agency composed of seven members fairly representative of the producers of such commodity. Members of each commodity advisory council shall be selected annually by the board only from lists submitted by the cooperative associations and by other organizations representative of the producers of the commodity in each State that produced in the preceding five crop years, according to the estimates of the United States Department of Agriculture, an average of three per cent or more of the average anuual total domestic production of the commodity, and from lists submitted by the governors and by the heads of the agricultural departments of such States. Members of each commodity advisory council shall serve with

out salary but may be paid by the board a per diem compensation not exceeding $20 for attending meetings of the council and for time devoted to other business of the council and authorized by the board. Each council member shall be paid by the board his necessary traveling expenses to and from meetings of the council and his expenses incurred for subsistence, or per diem allowance in lieu thereof, within the limitations prescribed by law, while engaged upon the business of the council. Each commodity advisory council shall be desig nated by the name of the commodity it represents, as, for example, The Cotton Advisory Council.'

"(b) Each commodity advisory council shall meet as soon as practicable after its selection at a time and place designated by the board and select a chairman. The board may designate a secretary of the council, subject to the approval of the council. "(c) Each commodity advisory council shall meet thereafter at least twice in each year at a time and place designated by the board, or upon call of a majority of its members at a time and place designated in the call, notice of such call being sent by registered mail at least 10 days before the date of the meeting.

"(d) Each commodity advisory council shall have power, by itself or through its officers, (1) to confer directly with the board, to call for information from it, or to make oral or written representations to it, concerning matters within the jurisdiction of the board and relating to the agricultural commodity, including the amount and method of collection of the equalization fee, and (2) to cooperate with the board in advising the producers through their organizations or otherwise in the development of suitable programs of planting or breeding so that burdensome crop surpluses may be avoided or minimized, in order to secure the maximum benefits under this act.

"(e) Prior to the commencement or termination of a marketing period with respect to any agricultural commodity and prior to the publication of the amount of any equalization fee with respect to any agricultural commodity, the board shall submit to the advisory council for the commodity a statement of the respective findings or estimate which the board is required to make and of the evidence and facts considered by the board in making such findings or estimate. Within 15 days sider such findings or estimate and shall notify the board of its after receiving such statement, the advisory council shall condetermination made with respect thereto. No marketing period with respect to any agricultural commodity shall be commenced or terminated and no equalization fee with respect to the commodity shall be collected, unless the advisory council for such commodity has determined (1) that the findings or estimate which the board is required to make are supported by the evidence and facts considered by the board, and (2) that the board has considered substantially all the material facts and evidence available for making the findings or estimate.

"LOANS

"SEC. 5. (a) The board is authorized to make loans, out of the revolving fund hereinafter created, to any cooperative association or corporation created and controlled by one or more cooperative associations, upon such terms and conditions as, in the judgment of the board, will afford adequate assurance of repayment and carry out the policy declared in section 1, and upon such other terms and conditions as the board deems necessary. Such loans shall be for one of the following purposes: "(1) For the purpose of assisting the cooperative association or corporation created and controlled by one or more cooperative associations, in controlling a seasonal or year's total surplus, produced in the United States and either local or national in extent, that is in excess of the requirements for the orderly marketing of any agricultural commodity or in excess of the domestic requirements for such commodity.

"(2) For the purpose of developing continuity of cooperative services from the point of production to and including the point of terminal marketing services, if the proceeds of the loan are to be used either (A) for working capital for the cooperative association or corporation created and controlled by one or more cooperative associations, or (B) for assisting the cooperative association or corporation created and controlled by one or more cooperative associations, in the acquisition, by pur chase, construction, or otherwise, of facilities and equipment, including terminal marketing facilities and equipment, for the preparing, handling, storing, processing, or sale or other disposition of agricultural commodities, or (C) for furnishing funds to the cooperative association or corporation created and controlled by one or more cooperative associations for use as capital for any agricultural credit corporation eligible to receive discounts under section 202 of the Federal farm loan act, as amended, or (D) for furnishing funds to the cooperative association or corporation created and controlled by one or more cooperative associations for necessary expenditures in

federating, consolidating, merging, or extending the membership of cooperative associations or corporations created and controlled by one or more cooperative associations. The cooperative association, or corporation created and controlled by one or more cooperative associations, shall repay the loan, together with the interest thereon, within a period of not more than 20 years, by means of a charge to be deducted from the proceeds of the sale or other disposition of each unit of the agricultural commodity handled by the association or corporation, unless some other method of repayment is agreed upon by the board and the association or corporation.

"(b) Any loan under this section shall bear interest at the rate of 4 per cent per annum. The aggregate amount of loans under this section, outstanding and unpaid at any one time, shall not exceed $200,000,000, but

"(1) The aggregate amount of loans for all purposes under paragraph (2) of subdivision (a), outstanding and unpaid at any one time, shall not exceed $25,000,000; and

"(2) The aggregate amount of loans for the purpose of expenditures in federating, consolidating, merging, or extending the membership of cooperative associations or corporations created and controlled by one or more cooperative associations, outstanding and unpaid at any one time, shall not exceed $1,000,000.

"INCREASED PRODUCTION

"SEC. 6. If the board finds that its advice as to a program of planting or breeding of any agricultural commodity as hereinbefore provided has been substantially disregarded by the producers of the commodity, or that the planting or breeding of any agricultural commodity for any year is substantially greater than a normal increase, as determined by the board, over the average planting or breeding of such commodity or the preceding 5 years, the board may refuse to make loans for the purchase of such commodity.

CLEARING HOUSE AND TERMINAL MARKET ASSOCIATIONS

longer necessary or advisable for carrying out the policy declared by section 1.

"(c) A marketing agreement shall provide either"(1) For the withholding by a cooperative association, or corporation created and controlled by one or more cooperative associations, during such period as shall be provided in the agreement, of any part of the commodity delivered to such cooperative association or associations by its members. Any such agreement shall provide for the payment from the stabilization fund for the commodity of the costs arising out of such withholding; or

"(2) For the purchase by a cooperative association, or corporation created and controlled by one or more cooperative associations, of any part of the commodity not delivered to such cooperative association or associations by its members, and for the withholding and disposal of the commodity so purchased. Any such marketing agreement shall provide for the payment from the stabilization fund for the commodity of the amount of the losses, costs, and charges arising out of the purchase, withholding, and disposal, or out of contracts therefor, and for the payment into the stabilization fund for the commodity of profits (after repaying all advances from the stabilization fund and deducting all costs and charges, provided for in the agreement) arising out of the purchase, withholding, and disposal, or out of contracts therefor.

"(d) The board may, in its discretion, provide in any such marketing agreement for financing any withholding, purchase, or disposal under such agreement, through advances from the stabilization found for the commodity. Such financing shall be upon such terms as the board may prescribe, but no such advance shall bear interest.

"(e) If the board is of the opinion that there are two or more cooperative associations or corporations created and controlled by one or more cooperative associations capable of carrying out any marketing agreement, the board in entering into the agreement shall not unreasonably discriminate against any such association or corporation in favor of any other such association or corporation. If the board is of the opinion that there is no such cooperative association or corporation created and controlled by marketing agreement for purchase, withholding, and disposal, one or more cooperative associations capable of carrying out any then the board may enter into the agreement with other agencies but shall not unreasonably discriminate between such other agencies.

tered under this section. Rules for the governance of any such association shall be adopted by the members thereof with the approval of the board.

64 MARKETING AGREEMENTS

"SEC. 8. (a) From time to time upon request of the advisory council for any agricultural commodity, or upon request of leading cooperative associations or other organizations of producers of any agricultural commodity, or upon its own motion, the board shall investigate the supply and marketing situation in respect of such agricultural commodity.

"(b) Whenever upon such investigation the board finds"First. That there is or may be during the ensuing year a seasonal or year's total surplus, produced in the United States and national in extent, that is in excess of the requirements for the orderly marketing of any agricultural commodity or in excess of the domestic requirements for the commodity;

“Second. That the operation of the provisions of section 5 (relating to loans to cooperative associations or corporations created and controlled by one or more cooperative associations) will not be effective to control such surplus because of the inability or unwillingness of the cooperative associations engaged in handling the commodity, or corporations created and controlled by one or more such cooperative associations, to control such surplus with the assistance of such loans; and "Third. That the durability, the conditions of preparation, processing, and preserving, and the methods of marketing of the commodity are such that the commodity is adapted to marketing as authorized by this section ;

then the board, after publicly declaring its findings, shall arrange for marketing any part of the commodity by means of marketing agreements with cooperative associations engaged in handling the commodity or corporations created and controlled by one or more cooperative associations. Such marketing shall continue during a marketing period which shall terminate at such time as the board finds that such arrangements are no

commodity, the board may enter into marketing agreements for “(f) During a marketing period fixed by the board for any the purchase, withholding, and disposal of the food products of such commodity, and all provisions of this section applicable to marketing agreements for the purchase, withholding, and dis

of its food products.

"(g) Any decision of the board relating to the commencement, extension, or termination of a marketing period shall require the affirmative vote of a majority of the appointed members in office.

"(h) The powers of the board under this section in respect of any agricultural commodity shall be exercised in such manner, and the marketing agreements entered into by the board during any marketing period shall be upon such terms, as will, in the judgment of the board, carry out the policy declared by section 1.

"(i) The United States shall not be liable, directly or indirectly, upon agreements under this act in respect of agriculturat commodities, in excess of the amounts available in the stabilization, premium insurance, and revolving funds.

"SEC. 9. (a) In order to carry out marketing and nonpremium insurance agreements in respect of any agricultural commodity without loss to the revolving fund, each marketed unit of such agricultural commodity produced in the United States shall, throughout any marketing period in respect of such commodity, contribute ratably its equitable share of the losses, costs, and charges arising out of such agreements. Such contributions shall be made by means of an equalization fee apportioned and paid as a regulation of interstate and foreign commerce in the commodity. It shall be the duty of the board to apportion and collect such fee in respect of such commodity as hereinafter provided.

"(b) Prior to the commencement of any marketing period in respect of any agricultural commodity, and thereafter from time to time during such marketing period, the board shall estimate the probable losses, costs, and charges to be paid under marketing agreements in respect of such commodity and under nonpremium insurance agreements in respect of such commodity as hereinafter provided. Upon the basis of such estimates, the board shall from time to time determine and publish the amount

of the equalization fee (if any is required under such estimates) for each unit of weight, measure, or value designated by the board, to be collected upon such unit of such agricultural commodity during any part of the marketing period for the commodity. Such amount is referred to in this Act as the 'equalization fee.' At the time of determining and publishing any equalization fee the board shall specify the time during which the particular fee shall remain in effect and the place and manner of its payment and collection.

"(c) Under such regulations as the board may prescribe, any equalization fee determined upon by the board shall be paid, in respect of each marketed unit of such commodity, upon one of the following: The transportation, processing, or sale of such unit. The equalization fee shall not be collected more than once in respect of any unit. The board shall determine, in the case of each class of transactions in the commodity, whether the equalization fee shall be paid upon transportation, processing, or sale. The board shall make such determination upon the basis of the most effective and economical means of collecting the fee with respect to each unit of the commodity marketed during the marketing period.

"(d) When any equalization fee is collected with respect to cattle or swine, an equalization fee equivalent in amount, as nearly as may be, shall be collected, under such regulations as the board may prescribe, upon the first sale or other disposition of any food product derived in whole or in part from cattle or swine, respectively, if the food product was on hand and owned at the time of the commencement of the marketing period: Provided, That any food product owned in good faith by retail dealers at the time of the commencement of the marketing period shall be exempt from the operation of this subdivision. "(e) Under such regulations as the board may prescribe, the equalization fee determined under this section for any agricultural commodity produced in the United States shall in addition be collected upon the importation of each designated unit of the agricultural commodity imported into the United States for consumption therein, and an equalization fee, in an amount equivalent as nearly as may be, shall be collected upon the importation of any food product derived in whole or in part from the agricultural commodity and imported into the United States for consumption therein.

"(f) The board may by regulation require any person engaged in the transportation, processing, or acquisition by purchase of any agricultural commodity produced in the United States, or in the importation of any agricultural commodity or food product thereof

"(1) To file returns under oath and to report, in respect of his transportation, processing, or acquisition of such commodity produced in the United States or in respect of his importation of the commodity or food product thereof, the amount of equalization fees payable thereon and such other facts as may be necessary for their payment or collection.

"(2) To collect the equalization fee as directed by the board and to account therefor.

"(g) The board, under regulations prescribed by it, is authorized to pay to any such person required to collect such fees a reasonable charge for his services.

"(h) Every person who, in violation of the regulations prescribed by the board, fails to collect or account for any equalization fee shall be liable for its amount and to a penalty equal to one-half its amount. Such amount and penalty may be recovered together in a civil suit brought by the board in the name of the United States.

"(i) As used in this section

"(1) In the case of grain the term 'processing' means milling of grain for market or the first processing in any manner for market (other than cleaning or drying) of grain not so milled, and the term 'sale' means a sale or other disposition in the United States of grain for milling or other processing for market, for resale, or for delivery by a common carrieroccurring during a marketing period in respect of grain.

"(2) In the case of cotton the term 'processing' means spinning, milling, or any manufacturing of cotton other than ginning; the term 'sale' means a sale or other disposition in the United States of cotton for spinning, milling, or any manufacturing other than ginning, or for delivery outside the United States; and the term 'transportation' means the acceptance of cotton by a common carrier for delivery to any person for spinning, milling, or any manufacturing of cotton other than ginning, or for delivery outside the United States-occurring during a marketing period in respect of cotton.

"(3) In the case of livestock, the term 'processing' means slaughter for market by a purchaser of livestock, and the term 'sale' means a sale or other disposition in the United States of livestock destined for slaughter for market without intervening

"(4) In the case of tobacco, the term 'sale' means a sale or other disposition to any dealer in leaf tobacco or to any regis tered manufacturer of the products of tobacco. The term 'tobacco' means leaf tobacco, stemmed or unstemmed.

"(5) In the case of grain, livestock, and tobacco, the term 'transportation' means the acceptance of the commodity by a common carrier for delivery.

"(6) In the case of any agricultural commodity other than grain, cotton, livestock, or tobacco, the board shall, in connection with its specification of the place and manner of payment and collection of the equalization fee, further specify the particular type of processing, sale, or transportation in respect of which the equalization fee is to be paid and collected.

"(7) The term 'sale' does not include a transfer to a cooperative association for the purpose of sale or other disposition by such association on account of the transferor; nor a transfer of title in pursuance of a contract entered into before, and at a specified price determined before, the commencement of a marketing period in respect of the agricultural commodity. In case of the transfer of title in pursuance of a contract entered into after the commencement of a marketing period in respect of the agricultural commodity, but entered into at a time when, and at a specified price determined at a time during which a particular equalization fee is in effect, then the equalization fee applicable in respect of such transfer of title shall be the equalization fee in effect at the time when such specified price was determined.

"STABILIZATION FUNDS

"SEC. 10. (a) For each agricultural commodity as to which marketing agreements are made by the board there shall be established, in accordance with regulations prescribed by the board, a stabilization fund. Such fund shall be administered by and exclusively under the control of the board, and the board shall have the exclusive power of expending the moneys in such fund.

"(b) There shall be deposited to the credit of the stabilization fund for any agricultural commodity (1) advances from the revolving fund as hereinafter authorized, (2) profits arising out of marketing agreements in respect of the commodity, (3) repay. ments of advances for financing the purchase, withholding, or disposal of the commodity, and (4) equalization fees collected in respect of the commodity and its imported food products.

"(c) In order to make the payments required by a marketing or nonpremium insurance agreement in respect of any agricultural commodity, and in order to pay the salaries and expenses of experts, the board may, in its discretion, advance to the stabilization fund for such commodity out of the revolving fund such amounts as may be necessary.

"(d) The deposits to the credit of a stabilization fund shall be made in a public depositary of the United States. All general laws relating to the embezzlement, conversion, or to the improper handling, retention, use, or disposal of public moneys of the United States shall apply to the profits and equalization fees payable to the credit of the stabilization fund and to moneys deposited to the credit of the fund or withdrawn therefrom but in the custody of any officer or employee of the United States.

"(e) There shall be withdrawn from the stabilization fund for any agricultural commodity (1) the payments required by marketing or nonpremium insurance agreements in respect of the commodity, (2) the salaries and expenses of such experts as the board determines shall be payable from such fund, (3) repayments into the revolving fund of advances made from the revolving fund to the stabilization fund, together with interest on such amounts at the rate of 4 per cent per annum, and (4) service charges payable for the collection of equalization fees.

66

"INSURANCE

'SEC. 11. (a) In order that a cooperative association han dling any staple agricultural commodity may with reasonable security make payments to its members at the time of deliver! of such commodity by the members, fairly reflecting the current market value of such agricultural commodity, the board is authorized to enter into an agreement, upon such terms and conditions as it may prescribe, for the insurance of such coop erative association against price decline as hereinafter provided. Such insurance agreement may be entered into by the board only with respect to any such agricultural commodity which, in the judgment of the board, is regularly traded in upon an exchange in sufficient volume to establish a recognized basic price for the market grades of such commodity, and then only when such exchange has accurate price records for the com.

modity covering a period of years of sufficient length, in the judgment of the board, to serve as a basis upon which to calculate the risks of the insurance.

"(b) Any such agreement for insurance against price decline shall provide for the insurance of the cooperative association for any twelve months' period commencing with the delivery season for the commodity against loss to such association or its members due to decline in the average market price for the commodity during the time of sale by the association from the average market price for the commodity during the time of delivery to the association. The measure of such decline, where a decline occurs, shall be the difference between the average market price weighted for the days and volume of delivery to the association by its members, and the average market price weighted for the days and volume of sales by the association. In computing such average market prices the board shall use the daily average cash prices paid for the basic grade of such commodity in the exchange designated in the agreement. Any such agreement shall cover only so much of the commodity delivered to the association as is produced by the members of the association and as is reported by the association for coverage under the agreement.

"(c) Whenever in the judgment of the board the use of such insurance agreements in respect of any commodity will stabilize the market substantially in the interest of the producers of the commodity whether or not members of a cooperative association dealing in the commodity, then the board, during the continuance of any marketing period for the commodity as provided in section 8, may enter into nonpremium, or if the board deems it advisable, premium insurance agreements with cooperative associations dealing in the commodity. Whenever in the judgment of the board the use of such insurance agreements will not so

stabilize the market, then the board may enter into premium insurance agreements only with the cooperative associations.

*(d) Payments required under nonpremium insurance agreements in respect of any commodity shall be made out of the stabilization fund for the commodity. Payments under premium insurance agreements in respect of any commodity shall be made out of the premium insurance fund for the commodity to be established by the board under such regulations as it may prescribe.

"(e) For insurance under a premium insurance agreement the cooperative association shall pay a premium, to be determined by the board prior to the making of the insurance agreement, upon each unit of the commodity reported by the association for coverage under the insurance agreement. Such premium shall be calculated with due regard to the past price records in established markets for the commodity. The premiums applicable to the commodity in the successive twelve months' periods shall be adjusted with due regard to the experience of the board under preceding insurance agreements. There shall be deposited in the premium insurance fund for any commodity the premiums paid by cooperative associations under premium insurance agreements in respect of the commodity, and advances from the revolving fund in such amounts as the board deems necessary for the operation of the fund. There shall be disbursed from the premium insurance fund for any commodity (1) the payments required by any premium insurance agreement in respect of the commodity, and (2) repayments into the revolving fund of advances made from the revolving fund to such premium insurance fund, together with interest on such advances at the rate of 4 per cent per annum.

"REVOLVING FUND

"SEC. 12 (a). There is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, the sum of $400,000,000: Provided, That at least $200,000,000 of such sum shall be made available by the board solely for use in making advances to the stabilization funds for agricultural commodities in respect of which marketing periods are commenced; and in the allocation of such amount among the stabilization funds of the several commodities, the board shall take into consideration the values of the respective commodities.

"(b) All moneys appropriated in pursuance of the authorization made by this section shall be administered by the board and used as a revolving fund in accordance with the provisions of this Act. The Secretary of the Treasury shall deposit in the revolving fund such portions of the amounts appropriated therefor as the board from time to time deems necessary.

"EXAMINATIONS OF BOOKS AND ACCOUNTS OF BOARD

"SEC. 13. Expenditures by the board from the stabilization or premium insurance funds shall be made by the authorized officers or agents of the board upon receipt of itemized vouchers therefor, approved by such officers as the board may designate. All other expenditures by the board, including expenditures for

LXIX-555

loans and advances from the revolving fund, shall be allowed and paid upon the presentation of itemized vouchers therefor, approved by the chairman of the board. Vouchers so made for expenditures from the revolving fund or from any stabilization or premium insurance fund shall be final and conclusive upon all officers of the Government; except that all financial transactions of the board (including the payments required by any marketing or insurance agreement) shall, subject to the above limitations, be examined by the General Accounting Office, at such times and in such manner as the Comptroller General of the United States may by regulation prescribe. Such examination in respect of expenditures from the revolving fund or from any stabilization or premium insurance fund shall be for the sole purpose of making a report to the Congress and to the board of expenditures and agreements in violation of law, together with such recommendations as the Comptroller General deems advisable concerning the receipts, disbursements, and application of the funds administered by the board.

"COOPERATION WITH EXECUTIVE DEPARTMENTS

"SEC. 14. (a) It shall be the duty of any governmental establishment in the executive branch of the Government, upon request by the board, or upon Executive order, to cooperate with and render assistance to the board in carrying out any of the provisions of this act and the regulations of the board. The board shall, in cooperation with any such governmental establishment, avail itself of the services and facilities of such governmental establishment in order to avoid preventable expense or duplication of effort.

"(b) Upon request by the board the President, by Executive order, (1) may transfer any officer or employee from any department or independent establishment in the executive branch of the Government, irrespective of his length of service in such

department or independent establishment, to the service of the board, and (2) may direct any governmental establishment to furnish the board with such information and data pertaining to the functions of the board as may be contained in the records of the governmental establishment; except that the President shall not direct that the board be furnished with any information or data supplied by any person in confidence to any governmental establishment, in pursuance of any provision of law or of any agreement with the governmental establishment. "(c) The board may cooperate with any State or Territory, or department, agency, or political subdivision thereof, or with any person. "GENERAL DEFINITIONS

"SEC. 15. (a) As used in this act

"(1) The term 'person' means individual, partnership, corporation, or association.

"(2) The term United States,' when used in a geographical sense, means continental United States and the Territory of Hawaii.

"(3) The term 'cooperative association' means an association of persons engaged in the production of agricultural products, as farmers, planters, ranchers, dairymen, or nut or fruit growers, organized to carry out any purpose specified in section 1 of the act entitled 'An act to authorize association of producers of agricultural products,' approved February 18, 1922, if such association is qualified under such act.

"(b) The provisions of sections 8, 9, and 10 shall not apply to perishable fruits and vegetables.

"(c) Whenever any agricultural commodity has regional or market classifications or types which in the judgment of the board are so different from each other in use or marketing methods as to require their treatment as separate commodities under this act, the board may determine upon and designate one or more such classifications or types for such treatment. 66 ADMINISTRATIVE APPROPRIATION

"SEC. 16. For expenses in the administration of the functions vested in the board by this act, there is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, the sum of $500,000, to be available to the board for such expenses (including salaries and expenses of the members, officers, and employees of the board and the per diem compensation and expenses of members of the commodity advisory councils) incurred prior to July 1, 1929.

"SEPARABILITY OF PROVISIONS

"SEC. 17. If any provision of this act is declared unconstitutional or the applicability thereof to any person, circumstance, commodity, or class of transactions in respect of any commodity, is held invalid, the validity of the remainder of the act and the applicability of such provision to other persons, circumstances, commodities, and classes of transactions shall not be affected thereby.

"COOPERATIVE ASSOCIATIONS ACT

"SEC. 18. (a) Nothing in this act is intended or shall be construed to repeal or modify any provision of the act entitled 'An act to authorize association of producers of agricultural products,' approved February 18, 1922.

46 PENALTIES

"SEC. 19. (a) The provisions of sections 123 and 124 of the Penal Code, approved March 4, 1909, as amended, shall apply to any member, officer, or employee of the board; and, in addition, it shall be held a violation of section 123 of such code if any member, officer, or employee of the board at any time speculates, directly or indirectly, in any agricultural commodity. "(b) It shall be unlawful (1) for any cooperative association, or corporation created and controlled by one or more cooperative associations or other agency if such agency is acting for or on behalf of the board under any marketing agreement, or (2) for any director, officer, or employee of any such association, corporation, or agency, to which information has been imparted in confidence by the board, to disclose such information in violation of any regulation of the board. Any such association, corporation, or agency, or director, officer, or employee thereof, violating any provision of this subdivision, shall be fined not more than $10,000 or imprisoned not more than 10 years, or both.

66 SHORT TITLE

"SEC. 20. This act may be cited as the 'surplus control act.'" And the House agree to the same.

CHAS. L. MONARY, Jos. E. RANSDELL, F. R. GOODING, ARTHUR CAPPER,

Managers on the part of the Senate.

G. N. HAUGEN, FRED S. PURNELL,

T. S. WILLIAMS,

D. H. KINCHELOE,

that if present he would vote as I am about to vote, so I will vote. I vote "yea."

Mr. EDWARDS. I have a pair with the Senator from New Hampshire [Mr. KEYES]. I transfer that pair to the Senator from Louisiana [Mr. RANSDELL], and will vote. I vote "yea." Mr. JONES. I desire to announce that the Senator from Delaware [Mr. DU PONT] is paired with the Senator from Florida [Mr. TRAMMELL].

Mr. WATSON (after having voted in the affirmative). I have a pair with the senior Senator from South Carolina [Mr. SMITH], which I transfer to the junior Senator from Connecticut [Mr. BINGHAM], and will permit my vote to stand. Mr. REED of Pennsylvania (after having voted in the affirmative). I have a general pair with the Senator from Delaware [Mr. BAYARD]. I transfer that pair to the Senator from Maine [Mr. GOULD] and will allow my vote to stand.

Mr. McKELLAR (after having voted in the negative). I inquire if the senior Senator from Ohio [Mr. FESS] has voted? The VICE PRESIDENT. That Senator has not voted. Mr. McKELLAR. I have a pair with the senior Senator from Ohio. In his absence I withdraw my vote.

Mr. BLAINE. I was requested by the junior Senator from North Dakota [Mr. NYE] to announce that his colleague the senior Senator from North Dakota [Mr. FRAZIER] has a general pair with the junior Senator from South Carolina [Mr. BLEASE, and that if the senior Senator from North Dakota were privileged to vote he would vote "nay."

Mr. WALSH of Montana. I am paired with the Senator from Vermont [Mr. DALE]. I transfer that pair to the Senator from Mississippi [Mr. HARRISON] and will vote. I vote "nay." Mr. BROUSSARD. I desire to announce that my colleague [Mr. RANSDELL] is necessarily detained in attendance upon the sessions of the subcommittee of the Committee on Agriculture. If present, he would vote "yea" on the adoption of this conference report.

The result was announced-yeas 51, nays 20, as follows:

Dill

Brookhart George

Simmons Steck Steiwer Stephens Swanson Tyson Vandenberg Wagner Walsh, Mass. Warren Waterman Watson

Sheppard
Smoot
Thomas
Tydings

Walsh, Mont.

Robinson, Ind. Shipstead Smith Trammell Wheeler

Managers on the part of the House.

Mr. ROBINSON of Arkansas. Mr. President, a parliamentary inquiry. Is debate on the conference report precluded by the agreement which has been entered into?

The VICE PRESIDENT. The agreement entered into, on the request of the Senator from Kansas, provides that the conference report shall be voted on without further debate.

Bruce
Capper

Caraway
Copeland
Couzens
Curtis

The report was agreed to.

THE MERCHANT MARINE

The Senate resumed the consideration of the report of the committee of conference on the disagreeing votes of the two Houses on the amendment of the House to the bill (S. 744) to further develop an American merchant marine, to insure its permanency in the transportation of the foreign trade of the United States, and for other purposes.

Black

Blaine

Borah

Ashurst Bayard Bingham Blease Dale

du Pont

Goff

Gould Harrison

Ransdell

So the conference report was agreed to.

SENATORIAL NOMINATION AND ELECTION IN NEW JERSEY Mr. CARAWAY. Mr. President, I send to the desk and ask to have read and adopted a resolution to which I wish to call the attention of the Senator from New Jersey [Mr. EDGE].

The VICE PRESIDENT. The resolution will be read. The Chief Clerk read the resolution (S. Res. 232), as follows: Resolved, That the special committee of five, consisting of three Members selected from the majority political party, of whom one is a Progressive Republican, and of two Members from the minority political party appointed by the President of the Senate, and which

Mr. BROOKHART. I ask for the yeas and nays.

The yeas and nays were ordered, and the Chief Clerk proceeded to call the roll.

Mr. BRATTON (when his name was called). I have a general pair with the junior Senator from Indiana [Mr. ROBINSON]. I am informed that if he were present he would vote as I intend to vote. I am therefore at liberty to vote, and vote "yea."

Mr. WHEELER (when his name was called). I am paired with the Senator from Idaho [Mr. GOODING], and therefore withhold my vote. If at liberty to vote, I should vote "nay." The roll call was concluded.

Mr. KENDRICK. On this question I have a pair with the Senator from Connecticut [Mr. BINGHAM]. I am informed

195 on May 19, 1926, and January 11, 1927, of Senate Resolution 324, by the first and second sessions of Congress (Sixty-ninth), is hereby authorized and instructed immediately to investigate what moneys, emoluments, rewards, or things of value, including agreements or un derstandings of support for appointment or election to office, have been promised, contributed, made, or expended, or shall hereafter be promised, contributed, expended, or made, by any person, firm, corpora. tion, or committee, organization, or association, to influence the nomination of any person as a candidate of any political party organization for membership in the United States Senate, or to con tribute to or promote the election of any person as a Member of the United States Senate from the State of New Jersey at the general election to be held in November, 1928. Said committee shall report the names of the persons, firms, or corporations, or committees, or

or