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BXECUnVE tXJMMITTEE 

 (By Congrenional EMMrlcu) 



Ut to lltil WUliam Webb, Route One, JoUct 



12th G. F. Tullock, Rockford 



13th.. ..> C. B. Bamborouch, Polo 



I4th W.H.Moody. Port Byron 



15th B. H. Teylor, Rapetee 



IMh A. R. Wricht, Varna 



I7th F. D. Barton, Cornell 



Igth , R. F. Karr, IroquoU 



19th J. L. Whianand, Charlcaton 



20th Charlea Borgelt, Havana 



21st Samual SorrclU, Raymond 



22nd Frank Oezner, Waterkxi 



23rd , W. L. Cope, Salem 



24th Oiarles Marshall. Belknap 



j5th R. K. Loomls. Makanda 



Prsaklent, Earl C. Smith . 

 Vlco-P - — - 



OFFICERS 



>-Pr<aident, Charles R. Finley Hoopeston 



Treaaurcr, R. A. Cowlcs > Bkiomincton 



Secretary, G«o. A. Foi Sycamore 



■ IjIjINOIS 



ICCLTUKAL ASSOCIAI 



■RECORD— 



To mdf m n e * tht pttrpOM for whUh thm fann Bureau wmt ofgan- 

 itmd, fwm«ly, to promott, protwct and reproMtnt the businm$t, 

 mconomic, social and aducational intwrmstM of the farmers of 

 lUinoU and tht t%ation, and to davmtop agriculture. 



DIRECTORS OF DEPARTMENTS 



Co-operative Accountins Geo. R. Wicker 



D«iry Markctins A. D. Lynch 



Finance R. A. Cowlcs 



Fruit and Vecetablc MartcctSng A. B. Leeper 



General Office J- H. Kelker 



Information Harry C. Butcher 



Lecal Counael Donald Kirkpa trick 



Live Stock Marketing Wm. E. Heidgcock 



Organization G. E. Mctxgcr 



Phoephate-Limeatonc C J- R- Bent 



Poultry and Egg Marketing F. A. Gougler 



Taxation and Statistics J. C Watson 



Transportation L. J Quasey 



-Pablished onee s month at 404 North Wesley Ave., Mount Morris, lUioois, by the Illinois Agricultural AMociation. Edited by Department of Information, Harry C. Butcher, Director, 008 South Dearbortl 

 Street, Chicago. lUioois. Entered as second-class matter October 20. 1025 at the poet office at Mount Morris, IlJinois, under the Act of March 3, 1879. Acceptance for mAiliDR at special rate of i>oetace proinded 

 for in Section 412, Act of February 28. 1925. autbonied October 27, 1925. The individual membership fee of the Illinois Agricultural Association is five dollars a year. The fee includes payment of fifty cents 

 for subscription to the Illinois Agrirultural Association Record Poetmsater: In returning an uncalled fw or missent copy, pf^ase indicate key number on ad(uess as is required by law. 



.\tl<ire(*s \il ( 'innmunicntions to IlUncis Agriculture! A•^.'>l'^iation, fi'lS S Dcarbnm St , ('hiruKu, III 



i'i'WP«iiaaaa»s»iiSityy«?^iaffi>»i"i^^^ 



Tentative Draft of 



Farm Relief BUI 



(Committee Print No. 1) 



69tl] 



la tll|» Hovse of Representatives 

 March — , 1926 



March 16, 1926 

 CONGRESS — 1st Session 

 H. R. 



Mr. . introduced the 



foUowiiff bill; which was referred to the 

 Committee on Ag^ricolture and ordered 

 to' be p inted: 



A BILL 

 To esta bliah a Federal Farm Board to 

 Aid ii 1 the orderly marketing and in 

 the < ontrol and disposition of the 

 •urpl ises of, agricaltural commodi- 

 ties, ind for other purposes. 



Be it enacted by the Senate and House 

 of B epresentatives of the United 

 Stateii of America in Congress as- 

 sembl ^d. 



Declaration of Policy 



SECIION 1. It is hereby declared to 

 be the policy of Congress, in order to 

 promote the general welfare of the 

 United States, to promote the orderly 

 marketing of agricultural, commodi 

 ties; ta enable producers of agricul- 

 taral dommodities to stablize their 

 markets against undue and excessive 

 An^t^noflnnv and minimize speculation 

 _.. . 1 ._.:-. j; to encourage 



falM trKAf^ i.*Uva *''■ Mucers of agri- 

 .catt'i**:4 M^n.'-'Jtiitl'^s nto co-operative 

 „;.__.'_ Jor.fl; iL I protect domestic 



markets! against world prices by pro- 

 viding |or the control and disposition 

 of the sbrpluses of agricultnral commo- 

 dities. L 



Fade ral Farm Adviaory Council 



Sec. 2, (a) There is hereby estab- 

 lished a Federal Farm Advisory Coun- 

 cil (he -einbf ter referred to as the 

 "council ') to consist of five members 

 from ea;h of the twelve Federal land 

 bank districts. The members of the 

 council ,from each district shall be 

 elected' tty the bona fide farm organiza- 

 tions a^d co-operative associations in 

 such district at a convention of such 

 organizations and associations, to be 

 held at jthe office of the Federal land 

 bank in such district or at such other 



ftlace in the city in which such Federal 

 and barik is located as the convention 

 may adjourn to. 



(b) The Secretary of Agriculture 

 shall anitually, with the advice and as 

 sistance of the president of the Amer- 

 ican Fartn Bureau Federation, the mas 

 ter of tlie National Grange, and the 

 president of the Farmers* Educational 

 and Co-o>erative Union of America, fl) 

 fix the date on which such conventions 

 shall be held, (2) designate the farm 

 orga>izat ions and co-operative associa- 

 tions in each district eligible to par 

 ticipate n such conventions, and (3) 

 designate the number of representa- 

 tives and the number of votes to which 

 each sac i organization or association 

 shall be i entitled. The Secretary of 

 Agricultiire shall mail, at least fifteen 

 days pridr to the date on which a con- 

 vention ^ to be held, to each organi- 

 zation add association eligible to par- 

 ticipate \r such convention, notice of 

 the date land place of such convention. 

 The conventions first held after the 

 date of enactment of this Act shall be 

 held witun forty-five days after such 

 date. Trie Secretary of Agriculture 

 shall prascribe uniform regulations for 

 the proctjdure at such conventions and 

 for the ttroper certification of election 

 of the m^bers of the council. 



(c) Th^ term of office of each mem 

 ber first elected shall expire one year 

 from the date of his election, and the 

 term of office of all successors shall 

 expire oiie year from the date of the 

 expiration of the preceding term. Any 

 member in office at the expiration of 

 the term for which he was elected may 

 continue in office until his successor 

 takes office. 

 .\ (d) Tf e members of the council shall 



serve without salary but may be paid 

 by the Federal Farm Board (estab- 

 lished in section 4 and hereinafter re- 

 ferred to as the "board") a per diem 

 compensation not exceeding $26 for at- 

 tending meetings of the council. Each 

 member shall be paid by the board his 

 necessary traveling expenses to and 

 from the meetings of the council and 

 his actual expenses while engaged upon 

 the business of the council. 



Duties of Council 



Sec. 3. (a) The council shall— 



( 1 ) Meet and organize as soon as 

 practicatUe after the enactment of this 

 Act and select a chairman, secretary 

 and such other officers as it deems nec- 

 essary. 



(2) Nominate to the President three 

 individuals from each of the twelve 

 Federal land bank districts, eligible for 

 appointment to the board. 



(5 ) Meet thereafter at least twice 

 in each year at a time and place desig- 

 nated by the Secretary of Agriculture; 

 or upon a petition duly signed by a ma- 

 jority of the individuals elected to the 

 council at a time and place designated 

 therein. 



(4) Nominate individuals to fill va 

 cancies occurring in the board. * 



(6) Submit to the board such recom 

 mendations, and co-operate with the 

 board in such manner, as the council 

 deems most effective to carry out the 

 purposes of this Act. 



(b) The individuals to be nominated 

 for appointment to the board from any 

 district shall be selected by the mem 

 bers of the council from such district. 



Federal Farm Board 



Sec. 4. (a) There is hereby estab- 

 lished in the Department of Agriculture 

 a board to be known as the Federal 

 Farm Board and to be composed of 

 twelve members, one from each of the 

 twelve Federal land bank districts, ap- 

 pointed by the President, by and with 

 the advice and consent of the Senate 

 from the individuals nominated as pro- 

 vided in section 3. 



( b ) The Secretary of Agriculture 

 shall be ex-officio member of the board 



Appointment and Qualisation of 

 Members 



Sec. 5 (a) The terms of office of the 

 appointed members first taking office 

 after the enactment 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 enactment of this Act. A successor 

 to an appointment member shall be ap- 

 pointed by the President, by and with 

 the advice and consent of the Senate, 

 from the individuals nominate, as pro- 

 vided in subdivision (d) of this section, 

 for a term expiring six years from the 

 date of the expiration of the term for 

 which his predecessor was appointed. 



(b) Any person appointed to fill a 

 vacancy occurring prior to the expira- 

 tion of the term for which his prede- 

 cessor was appointed shall be appointed 

 for the remainder of such term. 



(c) Any member in office at the ex- 

 piration of the term for which he was 

 appointed may continue in office until 

 his successor takes office. 



(d) Whenever a vacancy occurs in 

 the board or whenever, in the opinion 

 of the chairman of the board, a vacancy 

 will soon occur, he shall notify the 

 council thereof and request that the 

 council nominate three individuals 

 qualified to fill such vacancy. Upon 

 receipt of such nominations he shall 

 submit their names to the President as 

 the nominees for such vacancy. 



(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 ap- 

 pointed members in office shall con- 

 stitute a quorum for the transaction of 

 the business of the board. . 



(f) Each of the appointed member^ 

 shall be a citizen of the United States, 

 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 in- 

 curred for subsistence, or per diem al- 

 lowance in lieu thereof, while away 

 from the principal office of the board 

 on business required by this Act. 



General Powers of Board 



Sec. 6. The board: 



(a) Shall annually designate an ap- 

 pointed member to act as chairman of 

 the board. 



(b) Shall maintain its principal office 

 in the District of Columbia. 



(c) Shall have an official seal which 

 shall be judicially noticed. 



(d) Shall make an annual report to 

 the 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 sal- 

 aries of such experts and, in accordance 

 with the Classification Act of 1923 and 

 subject to the provisions of the civil 

 service laws, a secretary and such other 

 officers and employees, and (2) make 

 such expenditures (including expendi- 

 tures for rent and personal services at 

 the seat of government and elsewhere, 

 the law books, periodicals, and books of 

 reference, and for printing and bind- 

 ing), as may be necessary for the exe- 

 cution of the functions vested in the 

 board. All expenditures of the board 

 shall be allowed and paid upon the pre- 

 sentation of itemized vouchers therefor 

 approved by the'chairman. 



Special Powers and Duties 



Sec. 7 (a) The board shall meet at the 

 call of the chairman at least weekly, 

 and at such other times as the Secre- 

 tary of' Agriculture or the chairman 

 deems advisable. 



(b) The board is authorized — 



(1) To obtain from any available 

 sources, information in respect of crop 

 prospects, supply, demand, current re- 

 ceipts, exports* imports, markets, trans- 

 portation costs and facilities, and prices 

 of agricultural commodities, and eco- 

 nomic legal and financial information 

 in respect of the organization, progress, 

 and business methods of co-operative 

 associations in the United States and 

 foreign countries. 



(2) To disseminate any such infor- 

 mation, or analyses or summaries there- 

 of, from time to time, among co-opera- 

 tive associations and farm organizations 

 in the United States. 



(3) To advise co-operative associa- 

 tions, farm organizations, and produc- 

 ers in the adjustment of production in 

 order to secure the maximum benefits 

 under this Act. 



Control and Disposition of Surplus 



Sec. 8 (a) The board shall keep ad- 

 vised by investigations, from time to 

 time, made upon its own initiative or 

 upon petition of any co-operative asso- 

 ciation or farm organization, of the do- 

 mestic and world prices and the exist- 

 ence or tberprobability of the existence 

 of a surplus of any agricultural com- 

 modity or any food product thereof. 



(b) The board shall furnish, upon re- 

 quest, to any co-operative association 

 or farm organization, or to any pro- 

 ducer of any agricultural commodity, 

 or to any person owning or controlling 

 any of such commodity, its recommen- 

 dations upon the disposition of such 

 commodity, or any surplus thereof,* and 

 upon the available methods of financ- 

 ing. Whenever the board is of opinion 

 that the provisions of this Act applic- 

 able to a basic agricultural commodity 

 (as defined in subdivision (c) of this 

 section) should be made applicable to 

 any other agricultural commodity, it 

 shall submit its report thereon to Con- 

 gress. 



(c) Whenever the board finds fl) 

 that there is or may be during the en- 

 suing year a surplus above domestic re- 

 quirements of cotton, wheat, cattle, or 

 swine (hereinafter referred to as "basic 

 agricultural commodity"), or any food- 

 product of wheat, cattle or swine, and 

 (2) that substantial number of co- 

 operative associations or other or- 

 ganizations representing the pro- 

 ducers of such basic agricultural com- 

 modity are in favor thereof, the board 

 shall determine upon and declare an 



operation period and prepare for its 

 operations in respect of such basic agri- 

 cultural commodity. 



(d) During such operation period 

 the board shall assist in removing or 

 withholding from the domestic market 

 the surplus above domestic require- 

 ments of such basic agricultural com- 

 modity or food product by entering into 

 agreements with co-operative associa- 

 tions engaged in handling such basic 

 agricultural commodity, or with a cor- 

 poration or association created by one 

 or more of such co-operative associa- 

 tions, or with persons engaged in pro- 

 cessing such basic agricultural -'com- 

 modity, for the payment, out of the 

 equalization fund hereinafter estab- 

 lished, or losses, and the payment into 

 the equalization fund of profits, arising 

 out of the purchase, storage, sale, or 

 other disposition, and or contracts for 

 the purchase, storage, sale or other dis- 

 position (after such agreement has been 

 entered into and in accordance with the 

 terms and conditions thereof) of such 

 basic agricultural commodity of food 

 product, except that — 



(1) If the board is of the opinion 

 that there is no such co-operative as- 

 sociation capable of carrying out any 

 such agreement, the board, prior to the 

 expiration of two years from the en- 

 actment of this Act, shall enter into 

 such agreements with other agencies ; 

 and 



f 2 ) Such agreement shall pro^de, 

 among other things, that no payQ^nt 

 of losses shall be made unless the pur- 

 chase or contract for the purchase is 

 made at a price which in the opinion 

 of the board is not in excess of a fair 

 and reasonable price, and that no sale 

 or contract for sale shall be madle in 

 respect of which a loss would be sus- 

 tained unless such sale or contract is 

 authorized by the board. 



(c) If the board is of the opinion 

 that there are two or more co-opera- 

 tive associations capable of carrying 

 out any such agreements the board, in 

 entering into such agreements^ «hatl not 

 discriminate unreasonably against any 

 such association and in favofi of any 

 other such association. 



Purposes of Equalization Fee 



Sec. 9. In order that the producers 

 of each basic agricultural .commodity 

 may pay ratably their equitable share 

 of the losses and expenses to be paid 

 by the board in respect of such opera- 

 tion period; in order to prevent any 

 unjust discrimination against, any 

 direct burden or undue restraint upon, 

 and any suppression of, commerce in 

 basic agricultural commodities with 

 foreign nations in favor of interstate or 

 intrastate commerce; and in order to 

 encourage and stimulate the normal 

 and usual current of foreign and inter- 

 state commerce in basic agricultural 

 commodities, an equalization fee shtill 

 be apportioned and paid, as hereinafter 

 provided, during the operation period 

 in respect of such basic agricultural 

 commodity. 



Determination of Amount of Fee 



Sec. 10. Prior to the operation period 

 in respect of any basic agricultural 

 commodity, the board shall estimate 

 the probable losses and expenses to be 

 paid in respect of such operation period. 

 Having due regard to such estimates, 

 the board shall determine and publish 

 the amount for each unit of weight, 

 measure, or value designating by it to 

 be collected upon the processing of 

 such basic agricultural commodity dur- 

 ing such operation period. Such amount 

 is hereinafter referred to as the "equal- 

 ization fee." 



Payment and Collection of Fee 



Sec. 11 (a) During ^he operation 

 period in respect of any basic agricul- 

 tural commodity, the equalization fee 

 shall be paid, under such regulations as 

 the board may prescribe, upon the pro- 

 cessing (as hereinafter defined) of such 

 basic agricultural commodity. 



(b) The board may by regulation re- 

 quire any person engaged in processing 

 such basic agricultural commodity, dur- 

 ing such operation period, to file re- 

 turns under oath and to report, in re- 

 spect of his purchases and processing 

 of such basic agricultural commodity. 



the amount of the equalization fees 

 payable thereon, and any other facts 

 wh4ch may be necessary for the pay- 

 ment or collection of the equalization 

 fees. 



(c) Every person who, in violation 

 of the regulations prescribed by the 

 board, fails to account for any equali- 

 zation fee shall be liable for such fee 

 and to a penalty equal to one-half the 

 amount of such fee. Such fee and pen- 

 alty may be recovered together in a civil 

 suit brought by the board in the name of 

 the United States. 



Equalixation Fund 



Sec. 12. (a) In accordance with reg- 

 ulations prescribed by the board, there 

 shall be established an equalization 

 fund for each operation period and for 

 each basic agricultural commodity, into 

 which the equalization fees aad the 

 profits for such operation period shall 

 be deposited. 



(b) The board, in anticipation of the 

 collection of the equalization fees for 

 any operation period, and in order to 

 provide for the prompt payment of the 

 losses agreed to be paid, of the salaries 

 and expenses of exports, and of the re- 

 funds on exportation (as provided in 

 section 16), in respect of such opera- 

 tion period, may advance to the equali- 

 zation fund of any basic agricultural 

 commodity, out of the revolving fund 

 hereinafter established, such amounts 

 as may be necessary. 



(c) Prom such equalization fund, the 

 losses agreed to be paid in respect of 

 such . operation period by the board 

 shall be disbursed, the salaries and 

 expenses of such experts as the board 

 de^rmhies should be payable therefrom 

 shall be disbursed, and any amounts ad- 

 vanced from the revolving fund (here- 

 inafter established) and remaining un- 

 paid (together with interest on such 

 amounts at the rate of 4 per centum 

 per annum) in respect of such basic 

 agricultural commodity, shall be re- 

 paid. Any- balance remaining in such 

 fund shall be transferred to the equali- 

 zation fund of such basic agricultural 

 commodity for the next operation 

 period. 



Audits of Books and Accounts of 

 Board 



Sec. 13. The books and accounts of ' 

 the board showing the payments of the 

 losses and profits under agreements 

 entered into under section 7, salaries 

 and expense of experts, and refunds 

 on exportation shall be audited at least 

 once every year at such times and by 

 such auditors as the board may direct. 

 Tiie report of such auditors shall be 

 included in the annual report to the 

 Congress. 



Co-operation With Executive 

 Departnnents 



Sec 14 (a) It shall be the duty of jiny 

 governmental establishment in the ex- 

 ecutive branch of the Government, upon 

 request by the board, or upon Execu- 

 tive order, to co-operate with and 

 render assistance to the board in carry- 

 ing out any of the provisions of this 

 Act and the regulations of the beard. 

 The board may, in co-operation with 

 any such governmental establishment, 

 avail itself of the services and facili- 

 ties of such governmental establish- 

 ment in order to avoid preventable ex- 

 pense or duplication of effort. 



(b) The President may by Executive 

 order direct any such governmental 

 establishment to furnish- the board with 

 such information and data pertanniAg 

 to the functions of the board as may 

 be contained in the records of such 

 governmental establishment. The order 

 of the President may provide such 

 limitations as to the use of the infor- 

 mation and data as he deems desir- 

 able. 



(c) The board may co-operate with 

 any.$tate or Territory, or department, 

 agen<^, or political subdivision thereof, 

 or with any person. 



Definitions and Short Title 



Sec. 15 (a) As used in this Act — 

 (1) In the case of wheat, the term 

 "processing** means the milling for 



V 



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