Federal Reincorporation of Commodity Credit Corporation

FEDERAL REINCORPORATION OF COMMODITY CREDIT

CORPORATION

TUESDAY, APRIL 13, 1948

HOUSE OF REPRESENTATIVES,

COMMITTEE ON BANKING AND CURRENCY,

Washington, D. C.

The committee convened at 10 a. m., Hon. Jesse P. Wolcott, chairman, presiding.

Present: Messrs. Wolcott, Smith, Kunkel, Talle, Sundstrom, Hull, Banta, Fletcher, Nicholson, Spence, Brown, Folger, Hays, Buchanan, and Multer.

The CHAIRMAN. The committee will come to order.

We will take up this morning the subject of the continuance of Commodity Credit Corporation.

You will recall that last year we continued Commodity Credit Corporation for 1 year without rechartering it.

Section 304 (b) of the Government Corporation Control Act of the Seventy-ninth Congress provides that—

No wholly owned Government corporation created by a clause of any State shall continue after June 30, 1948 * * as an agent of the instrumentality of the

United States.

That section also provides that wholly owned corporations may be reincorporated by an act of Congress.

The prime bill before us incorporates the Commodity Credit Corporation as a Government-chartered corporation, whereas it is now a Delaware corporation.

So we will have before us H. R. 6214, which does that, and also we will have before us the bill introduced last year by Mr. Brown of Georgia, H. R. 30, to continue Commodity Credit Corporation as a permanent agency, as does H. R. 6214, when and if it is reincorporated.

We also have before us, dealing with the farm price-support program, H. R. 5131, introduced by Mr. Murray of Wisconsin; H. R. 5152, introduced by Mr. H. Carl Andersen of Minnesota; H. R. 5156, introduced by Mr. Curtis of Nebraska; H. R. 5157, introduced by Mr. Miller of Nebraska; H. R. 5160, introduced by Mr. Stefan of Nebraska; H. R. 5179, introduced by Mr. Talle of Iowa; H. R. 5218, introduced by Mr. Cunningham of Iowa.

I think all of those price-support bills would continue the pricesupport program for 2 years with the exception of the bill introduced by Mr. Talle, which I understand is for 4 years.

(The bills referred to are as follows:)

[H. R. 30, 80th Cong., 1st sess.]

A BILL To continue Commodity Credit Corporation as an agency of the United States on a permanent basis

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the first sentence of subsection (a) of

section 7 of the Act approved January 31, 1935 (49 Stat. 4), as amended, is amended by striking out the following: ", until the close of business on June 30, 1947, or such earlier date as may be fixed by the President by Executive order,".

[H. R. 5131, 80th Cong., 2d sess.]

A BILL To extend the applicability of certain provisions affecting the price-support program for agricultural commodities, and to extend the life of the Commodity Credit Corporation

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 8 (a) of the Stabilization Act of 1942, as amended (U. S. C., 1940 edition, Supp. V, title 50, sec. 968), is amended by striking out "before the expiration of the two-year period beginning with the 1st day of January immediately following the date upon which the President by proclamation or the Congress by concurrent resolution declares that hostilities in the present war have terminated" and by inserting in lieu thereof "on or before December 31, 1950."

SEC. 2. Section 4 (b) of the Act entitled "An Act to extend the life and increase the credit resources of the Commodity Credit Corporation, and for other purposes", approved July 1, 1941 (U. S. C., 1940 edition, Supp. V, title 15, sec. 713a-8), is amended by striking out "the expiration of the two-year period beginning with the 1st day of January immediately following the date upon which the President by proclamation or the Congress by concurrent resolution declares that hostilities in the present war have terminated" and by inserting in lieu thereof "December 31, 1950."

SEC. 3. The first sentence of subsection (a) of section 7 of the Act entitled "An Act to extend the functions of the Reconstruction Finance Corporation for two years, and for other purposes", approved January 31, 1935, as amended (U. S. C., 1940 edition, Supp. V, title 15, sec. 713), is amended by striking out "June 30, 1948" and inserting in lieu thereof "December 31, 1950.”

[H. R. 5152, 80th Cong., 2d sess.]

A BILL To extend the applicability of certain provisions affecting the price-support program for agricultural commodities, and to extend the life of the Commodity Credit Corporation Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 8 (a) of the Stabilization Act of 1942, as amended (U. S. C., 1940 edition, Supp. V, title 50, sec. 968), is amended by striking out "before the expiration of the two-year period beginning with the 1st day of January immediately following the date upon which the President by proclamation or the Congress by concurrent resolution declares that hostilities in the present war have terminated" and by inserting in lieu thereof "on or before December 31, 1950".

[H. R. 5156, 80th Cong., 2d sess.]

by striking out "before the expiration of the two-year period beginning with the 1st day of January immediately following the date upon which the President by proclamation or the Congress by concurrent resolution declares that hostilities in the present war have terminated" and by inserting in lieu thereof “on or before December 31, 1950."

SEC. 2. Section 4 (b) of the Act entitled "An Act to extend the life and increase the credit resources of the Commodity Credit Corporation, and for other purposes," approved July 1, 1941 (U. S. C., 1940 edition, Supp. V, title 15, sec. 713a-8), is amended by striking out "the expiration of the 2-year period beginning with the 1st day of January immediately following the date upon which the President by proclamation or the Congress by concurrent resolution declares that hostilities in the present war have terminated" and by inserting in lieu thereof "December 31, 1950."

SEC. 3. The first sentence of subsection (a) of section 7 of the Act entitled "An Act to extend the functions of the Reconstruction Finance Corporation for two years, and for other purposes," approved January 31, 1935, as amended (U. S. C., 1940 edition, Supp. V, title 15, sec. 713), is amended by striking out "June 30, 1948" and inserting in lieu thereof "December 31, 1950."

[H. R. 5157, 80th Cong., 2d sess.]

A BILL To extend the applicability of certain provisions affecting the price-support program for agricultural commodities, and to extend the life of the Commodity Credit Corporation

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 8 (a) of the Stabilization Act of 1942, as amended (U. S. C., 1940 edition, Supp. V, title 50, sec. 938), is amended by striking out "before the expiration of the two-year period beginning with the 1st day of January immediately following the date upon which the President by proclamation or the Congress by concurrent resolution declares that hostilities in the present war have terminated" and by inserting in lieu thereof "on or before December 31, 1950".

SEC. 3. The first sentence of subsection (a) of section 7 of the Act entitled "An Act to extend the functions of the Reconstruction Finance Corporation for two years, and for other purposes", approved January 31, 1945, as amended (U. S. C., 1940 edition, Supp. V, title 15, sec. 713), is amended by striking out "June 30, 1948" and inserting in lieu thereof "December 31, 1950".

H. R. 5160, 80th Cong., 2d sess.]

A BILL To extend the applicability of certain provisions affecting the price-support program for agricultural commodities, and to extend the life of the Commodity Credit Corporation

in the present war have terminated" and by inserting in lieu thereof "December 31, 1950".

[H. R. 5179, 80th Cong., 2d sess.]

A BILL To extend the life of the Commodity Credit Corporation and to extend certain provisions affecting the price-support program for agricultural commodities

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the first sentence of subsection (a) of section 7 of the Act approved January 31, 1935 (Public Law Numbered 1, Seventyfourth Congress), as amended (U. S. C., 1940 edition, Supp. V, title 15, sec. 713), is amended by striking out "June 30, 1948" and inserting in lieu thereof "December 31, 1952'.

SEC. 2. Section 8 (a) of the Stabilization Act of 1942, as amended (U. S. C., 1940 edition, Supp. V, title 50, sec. 968), is amended by striking out "before the expiration of the two-year period beginning with the 1st day of January immediately following the date upon which the President by proclamation or the Congress by concurrent resolution declares that hostilities in the present war have terminated" and by inserting in lieu thereof "on or before December 31, 1952".

SEC. 3. Section 4 (b) of the Act entitled "An Act to extend the life and increase the credit resources of the Commodity Credit Corporation, and for other purposes", approved July 1, 1941 (U. S. C., 1940 edition, Supp. V, title 15, sec. 713a-8), is amended by striking out "the expiration of the two-year period beginning with the 1st day of January immediately following the date upon which the President by proclamation or the Congress by concurrent resolution declares that hostilities in the present war have terminated" and by inserting in lieu thereof "December 31, 1952".

[H. R. 5218, 80th Cong., 2d sess.]

A BILL To extend the applicability of certain provisions affecting the price-support program for agricultural commodities, and to extend the life of the Commodity Credit Corporation

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 8 (a) of the Stabilization Act of 1942, as amended (U. S. C., 1940 edition, Supp. V, title 50, sec. 968), is amended by striking out "before the expiration of the two-year period beginning with the 1st day of January immediately following the date upon which the President by proclamation of the Congress by concurrent resolution declares that hostilities in the present war have terminated" and by inserting in lieu thereof "on or before December 31, 1950."

SEC. 2. Section 4 (b) of the Act entitled "An Act to extend the life and increase the credit resources of the Commodity Credit Corporation, and for other purposes," approved July 1, 1941 (U. S. C., 1940 edition, Supp. V, title 15, sec. 713a-8), is amended by striking out "the expiration of the two-year period beginning with the 1st day of January immediately following the date upon which the President by proclamation or the Congress by concurrent resolution declares that hostilities in the present war have terminated" and by inserting in lieu thereof "December 31, 1950."

SEC. 3. The first sentence of subsection (a) of section 7 of the Act entitled "An Act to extend the functions of the Reconstruction Finance Corporation for two years, and for other purposes," approved January 31, 1935, as amended (U. S. C., 1940 edition, Supp. V, title 15, sec. 713), is amended by striking out "June 30, 1948" and inserting in lieu thereof "December 31, 1950."

[H. R. 6214, 80th Cong., 2d sess.]

A BILL To provide a Federal charter for the Commodity Credit Corporation Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Commodity Credit Corporation Charter Act."

SEC. 2. CREATION AND PURPOSES.-For the purpose of stabilizing supporting, and protecting farm income and prices, of assisting in the maintenance of balanced and adequate supplies of agricultural commodities, products thereof, foods, feeds, and fibers (hereinafter collectively referred to as "agricultural commodities"), and of facilitating the orderly distribution of agricultural commodities, there is hereby created a body corporate to be known as the Commodity Credit Corporation (hereinafter referred to as the "Corporation"), which shall be an agency and instrumentality of the United States, within the Department of Agriculture, subject to the general direction and control of its Board of Directors.

SEC. 3. OFFICES.-The Corporation may establish offices in such place or places as it may deem necessary or desirable in the conduct of its business.

SEC. 4. GENERAL POWERS.-The Corporation—

(a) Shall have succession in its corporate name.

(b) May adopt, alter, and use a corporate seal, which shall be judically noticed. (c) May sue and be sued, but no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against the Corporation or its property. The district courts of the United States, including the district courts of the District of Columbia and of any Territory or possession, shall have exclusive original jurisdiction of all suits brought by or against the Corporation: Provided, That the Corporation may intervene in any court in any suit, action, or proceeding in which it has an interest. Any suit against the Corporation shall be brought in the District of Columbia, or in the district wherein the plaintiff resides or is engaged in business. No suit against the Corporation shall be allowed unless it shall have been brought within two years after the right accrued on which suit is brought. All suits against the Corporation shall be tried by the court without a jury. Notwithstanding any other provision of this Act, the Federal Tort Claims Act (Public Law 601, Seventy-ninth Congress) shall be applicable to the Corporation.

(d) May adopt, amend, and repeal bylaws, rules, and regulations governing the manner in which its business may be conducted and the powers vested in it may be exercised.

(e) Shall have all the rights, privileges, and immunities of the United States, including, but not limited to, the right to priority of payment with respect to debts due from insolvent, deceased, or bankrupt debtors, and immunity from the imposition of court costs, fees, and charges, from the allowance of interest on claims and judgments, and from State and local statutes of limitations on suits, actions, or proceedings. The Corporation may assert such rights, privileges, and immunities in any suit, action, or proceeding.

(f) Shall be entitled to the use of the United States mails in the same manner and upon the same conditions as the executive departments of the Federal Government.

(g) May enter into and carry out such contracts or agreements as it deems necessary or desirable in the conduct of its business. State and local regulatory laws or rules shall not be applicable with respect to contracts or agreements of the Corporation or the parties thereto to the extent that such contracts or agreements provide that such laws or rules shall not be applicable, or to the extent that such laws or rules are inconsistent with such contracts or agreements.

(h) May in any manner acquire, hold, and dispose of such real or personal property or any interest therein as it deems necessary or desirable in the conduct of its business.

(i) May borrow money subject to any provision of law applicable to the Corporation: Provided, That the total of all money borrowed by the Corporation, other than trust deposits and advances received on sales, shall not at any time exceed in the aggregate $4,750,000,000. The Corporation shall at all times reserve a sufficient amount of its authorized borrowing power which, together with other funds available to the Corporation, will enable it to purchase, in accordance with its contracts with lending agencies, notes, or other obligations evidencing loans made by such agencies under the Corporation's programs. (j) Shall determine the character of and the necessity for its obligations and expenditures and the manner in which they shall be incurred, allowed, and paid.

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