ISSUANCE OF TREASURY BILLS JUNE 6, 1929.-Ordered to be printed Mr. HAWLEY from the committee of conference, submitted the following CONFERENCE REPORT [To accompany H. R. 1648] The committee of conference on the disagreeing votes of the two Houses on the amendments of the Senate to the bill (H. R. 1648) to amend section 5 of the second Liberty bond act, as amended, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: That the House recede from its disagreement to the amendment of the Senate, and agree to the same with amendment as follows: In lieu of the matter proposed to be inserted by the Senate amendment, insert the following: (b) All certificates of indebtedness and Treasury bills issued hereunder (after the date upon which this subdivision becomes law) shall be exempt, both as to principal and interest, from all taxation_(except estate and inheritance taxes) now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taring authority; and the amount of discount at which Treasury bills are originally sold by the United States shall be considered to be interest within the meaning of this subdivision. And the Senate agree to the same. W. C. HAWLEY, ALLEN T. TREADWAY, J. W. COLLIER, Managers on the part of the House. STATEMENT OF THE MANAGERS ON THE PART OF THE HOUSE The managers on the part of the House at the conference on the disagreeing votes of the two Houses on the amendments of the Senate to the bill (H. R. 1648) to amend section 5 of the second Liberty bond act, as amended, submit the following written statement in explanation of the effect of the action agreed upon by the conferees and recommended in the accompanying conference report: The House bill increased the tax exemptions of the present law so as to exempt any gain from the sale or other disposition of certificates of indebtedness or Treasury bills, and also denied any loss. The Senate amendment strikes out this provision of the House bill and grants an exemption only as to principal and interest, as under the present law, and adds a provision that the amount of discount at which Treasury bills are originally sold by the United States shall be considered to be interest within the meaning of the subdivision. Although the House bll would result in considerable simplification, would result in interest rates more favorable to the United States, and in the end would very likely not affect the revenues, the Senate took the position that the provision was an entering wedge toward the exemption of capital gains. Under the present law, when tax-exempt securities are sold at a discount in lieu of interest, any increase in value realized by the original purchaser is tax exempt; but no exemption is granted a subsequent holder. In order to prevent the application of this rule, the Senate amendment provides for the computation of interest at the original discount rate for the period during which the security is held, whether by the original purchaser or any subsequent holder. In other words, the original discount rate at which the security is sold is substituted for the interest rate fixed by the security itself in the case of an interest-bearing obligation. The amount of taxexempt interest is apportioned among the holders according to the periods of their holdings. Any gain in excess of this amount is taxable and any loss resulting from a sale or other disposition is allowed as a deduction. The House recedes with an amendment correcting a typographical omission. W. C. HAWLEY. ALLEN T. TREADWAY. AGRICULTURAL MARKETING ACT JUNE 6, 1929.-Ordered to be printed Mr. HAUGEN, from the committee of conference, submitted the following CONFERENCE REPORT To accompany H. R. 1] The committee of conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H. R. 1) to establish a Federal Farm Board to promote the effective merchandising of agricultural commodities in interstate and foreign commerce, and to place agriculture on a basis of economic equality with other industries, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: That the House recede from its disagreement to the amendment of the Senate and agree to the same with an amendment as follows: In lieu of the matter proposed to be inserted by the Senate amendment insert the following: DECLARATION OF POLICY SECTION 1. (a) That it is hereby declared to be the policy of Congress to promote the effective merchandising of agricultural commodities in interstate and foreign commerce, so that the industry of agriculture will be placed on a basis of economic equality with other industries, and to that end to protect, control, and stabilize the currents of interstate and foreign commerce in the marketing of agricultural commodities and their food products (1) by minimizing speculation. (2) by preventing inefficient and wasteful methods of distribution. (3) by encouraging the organization of producers into effective associations or corporations under their own control for greater unity of effort in marketing and by promoting the establishment and financing of a farm marketing system of producer-owned and producer-controlled cooperative associations and other agencies. (4) by aiding in preventing and controlling surpluses in any agricultural commodity, through orderly production and distribution, so as HR-71-2-VOL 1-24 to maintain advantageous domestic markets and prevent such surpluses from causing undue and excessive fluctuations or depressions in prices for the commodity. (b) There shall be considered as a surplus for the purposes of this Act any 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 distribution of the agricultural commodity or is in excess of the domestic requirements for such commodity. (c) The Federal Farm Board shall execute the powers vested in it by this Act only in such manner as will, in the judgment of the board, aid to the fullest practicable extent in carrying out the policy above declared. FEDERAL FARM BOARD SEC. 2. A Federal Farm Board is hereby created, which shall consist of eight members to be appointed by the President, by and with the advice and consent of the Senate, and of the Secretary of Agriculture, ex officio. In making the appointments the President shall give due consideration to having the major agricultural commodities produced in the United States fairly represented upon the board. The terms of office of the appointed members of the board first taking office after the date of the approval of this Act shall expire, as designated by the President at the time of nomination, two at the end of the first year, two at the end of the second year, one at the end of the third year, one at the end of the fourth year, one at the end of the fifth year, and one at the end of the sixth year after such date. A successor to an appointed member of the board shall have a term of office expiring six years from the date of the expiration of the term for which his predecessor was appointed, except that 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. One of the appointed members shall be designated by the President as chairman of the board and shall be the principal executive officer thereof. The board shall select a vice chairman who shall act as chairman in case of the absence or disability of the chairman. The board may function notwithstanding vacancies, and a majority of the appointed members in office shall constitute a quorum. Each appointed member shall be a citizen of the United States and shall not actively engage in any other business, vocation, or employment than that of serving as a member of the board; nor shall any appointed member during his term of office engage in the business (except such business as is necessary to the operation of his own farm or farms) of buying and selling, or otherwise be financially interested in, any agricultural commodity or product thereof. Each appointed member shall receive a salary of $12,000 a year, together with necessary traveling and subsistence expenses, or per diem allowance in lieu thereof, within the limitations prescribed by law, while away from his official station upon official business. ADVISORY COMMODITY COMMITTEES SEC. 3. (a) The board is authorized to designate, from time to time, as an agricultural commodity for the purposes of this Act (1) any regional or market classification or type of any agricultural commodity which is so different in use or marketing methods from other such classifications or types of the commodity as to require, in the judgment of the board, treatment as a separate commodity under this Act; or (2) any two or more agricultural commodities which are so closely related in use or marketing methods as to require, in the judgment of the board, joint treatment as a single commodity under this Act. (b) The board shall invite the cooperative associations handling any agricultural commodity to establish an advisory commodity committee to consist of seven members, of whom at least two shall be experienced handlers or processors of the commodity, to represent such commodity before the board in matters relating to the commodity. Members of each advisory committee shall be selected by the cooperative associations from time to time in such manner as the board shall prescribe. No salary shall be paid to committee members, but the board shall pay each a per diem compensation not exceeding $20 for attending committee meetings called by the board and for time devoted to other business of the committee authorized by the board, and necessary traveling and subsistence expenses, or per diem allowance in lieu thereof, within the limitations prescribed by law for civilian employees in the Executive branch of the Government. Each advisory committee shall be designated by the name of the commodity it represents, as, for example, the "Cotton Advisory Committee." (c) Each advisory committee shall meet as soon as practicable after its selection, at a time and place designated by the board. Each advisory committee shall meet thereafter at least twice a year upon call of the board, and may meet at other times upon call of a majority of the members thereof. Each advisory committee shall select a chairman and secretary. (d) Each advisory committee may by itself or through its officers, (1) confer directly with the board, call for information from it, or make oral or written representations to it, concerning matters within the jurisdiction of the board and relating to the agricultural commodity, and (2) cooperate with the board in advising the producers through their organizations or otherwise in the development of suitable programs of planting or breeding in order to secure the maximum benefits under this Act consistent with the policy declared in section 1. GENERAL POWERS OF BOARD SEC. 4. The board (1) shall maintain its principal office in the District of Columbia, and such other offices in the United States as in its judgment are necessary. (2) shall have an official seal which shall be judicially noticed. (3) shall make an annual report to Congress upon the administration of this Act and any other matter relating to the better effectuation of the policy declared in section 1, including recommendations for legislation. (4) may make such regulations as are necessary to execute the functions vested in it by this Act. (5) may appoint and fix the salaries of a secretary and such experts, and, in accordance with the Classification Act of 1923, as amended, and subject to the provisions of the civil service laws, such other officers and employees, as are necessary to execute such functions. (6) may 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 are |