"TITLE III

"SEC. 14. (a) The Federal Farm Board is authorized and directed to ascer tain and make public the part of the domestic production of any agricultural product which is needed for domestic consumption. Such portion of any agricultural product shall enter commerce at a price per unit not less than the cost of production of such commodity as ascertained by the Federal Farm Board for the year during which such commodity was produced. The remaining or surplus portion, if any, shall be exported, withheld from market, or otherwise disposed of as directed by the Federal Farm Board, except that it shall not be disposed of in the domestic market. The portion of any agricultural commodity, produced by any farmer, which may enter commerce at a price per unit not less than the cost of production shall bear the same relation to the entire production of such crop by such farmer in any year as the quantity of such crop in the Nation as a whole which enters commerce at a price per unit not less than the cost of production bears to the total quantity of such crop for the same year.

"(1) To the end that the policy declared in this act may be effectuated, the Federal Farm Board is authorized, whenever it finds that the importation into the United States of any such agricultural products or their substitutes produced outside of the United States materially affects or is likely to materially affect the sale in the domestic market of any such agricultural products at a price not less than the cost of production, to proclaim that fact and thereafter it shall be unlawful to import, directly or indirectly, any such products or their substitutes into the United States.

"(2) From time to time, whenever the Federal Farm Board shall find it essential to license the purchase, importation, or storage of any agricultural products in order to carry into effect the purposes of this act, it shall publicly so announce, and, after the date fixed in such announcement, no person shall engage in or carry on any such business specified in the announcement unless he shall first obtain a license issued pursuant to this act. The regulations prescribed pursuant to this title may include requirements with respect to the issuance of licenses, systems of accounts, auditing of accounts to be kept by licensees, submission of reports by them, and the entry and inspection by the duly authorized agents of the Federal Farm Board of the places of business of licensees. It shall be unlawful for any licensee to purchase any agricultural products at a price less than the cost of production proclaimed by the Federal Farm Board.

"(3) Any person who, without a license issued pursuant to this section, intentionally or knowingly engages in or carries on any business for which a license is required pursuant to this section or intentionally or knowingly makes any purchase in violation hereof, and any person who intentionally or knowingly violates anh other provision of this title shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be fined not more than $500, or imprisoned for more than six months, or both.

"SEC. 15. As used in Title I, Title II, and Title III

"(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 carrier occurring 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 holding for feeding (other than feeding in transit) or fatteningoccurring during a marketing period in respect of livestock.

"(4) In the case of tobacco, the term 'sale' means a sale or other disposition to any dealer in leaf tobacco or to any registered 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 specify the particular type of processing, sale, or transportation which are to operate.

"(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.

"(8) The term 'cost of production' shall include the costs of labor and interest on investment.

"(9) The board is authorized to prescribe such regulations in addition to those hereinbefore authorized as it may deem proper for carrying out the provisions of Title I, Title II, and Title III of this act.

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

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

Mr. BANKHEAD. Gentlemen, we have not a quorum here yet, but we have only 25 minutes this morning, and if you are ready to go ahead we will hear you now.

Mr. MCCLINTIC. Mr. Chairman, may Mr. Mead make a statement to the committee?

Mr. BANKHEAD. Certainly. You appreciate the situation we are in this morning in reference to time.

STATEMENT OF HON. JAMES MEAD, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW YORK

Mr. MEAD. Mr. Chairman and members of the committee, during the last few weeks some of the Members of the House have been meeting to consider the farm problem, first of all, perhaps, from the standpoint of their own desire to become more familiar with it; in the second place, to cooperate with the Committee on Agriculture in trying to bring the matter to the attention of the House.

So, representing a committee of five, selected by the chairman of our group, Mr. Sumners of Texas, I am here, as are my associates on that committee, to ask you to give us a rule, as suggested and outlined by the chairman of the Committee on Agriculture, with an opportunity to offer amendments, so that those of us who are interested in the question may, when the matter is before the House, consider and perhaps pass a bill which will be agreeable to the House.

So our committee of five, representing a group of 50 or 60 Members of the House are here, and through me, are asking you for the rule, as suggested by the chairman of the Committee on Agriculture. And we want you to know we are in no way interfering with the chairman of the Committee on Agriculture or his committee, but we want to cooperate with them and supplement their efforts.

Mr. MICHENER. Did you people appear before the Committee on Agriculture?

Mr. MEAD. I imagine a great many of our group have appeared before that committee, because they explained in detail their ideas of the question at different meetings of the group, of which I am a member. Personally, I did not appear before the Agricultural Committee.

Mr. MICHENER. The only reason I ask that question is this: This bill brings together all the suggested remedies for agriculture which we have had in the last four years and put them in one bill, to bring

them before Congress. The purpose seems to be to write a bill on the floor of the House which could not be written by a committee of experts, and we have recently had an experience along that line which might indicate that that might not be entirely successful.

Mr. MEAD. That is true, but I am of this opinion, Mr. Michener; it may be that the involved wisdom of these plans would be a suggested expansion of the currency, or something like that. But the Congress, including both bodies, would be relied upon, if they have already sent a bill to the White House, in adopting a measure which involved some of the provisions of this bill, to so perfect the bill that it would not duplicate anything that has been done.

Mr. PURNELL. The committee you speak for is familiar with this bill?

Mr. MEAD. Yes; we have had several conferences and discussed the allotment plan, th equalization fee and the debenture plan, and the plan suggested by Mr. Fulmer and Mr. Kleberg, and personally I am very much in favor of that plan.

Mr. PURNELL. Which one is that?

Mr. MEAD. Mr. Fulmer began to discuss it yesterday, and so did Mr. Kleberg, and I imagine, if you have an opportunity you ought to ask the authors of those measures to go into detail, because in my judgment that is a very sound proposition. It involves none of the controversial matters that have been either defeated or delayed on the floor of the House within the last few years. So there is some hope for that plan, if the bill is opened up for amendment, that it may receive serious consideration.

But we are here this morning representing this group of 50 to 60 Members vitally interested in agriculture, to ask for the rule as suggested by Mr. Jones.

Mr. BANKHEAD. Mr. Jones, we have not any rule prepared. You have not prepared any rule. It is very indefinite, as far as the evidence which has been presented, what type of rule you gentlemen

want.

I do not think the committee is going to be able to act on it this morning, because we have not got a quorum here, and for other reasons. Could not you gentlemen this morning get together and set out exactly what you have in mind with reference to the rule, and introduce it to-day? You could get the assistance of the clerk of the committee and anyone else you may desire to have assist you.

STATEMENT OF HON. MARVIN JONES, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF TEXAS, AND CHAIRMAN OF THE COMMITTEE ON AGRICULTURE

Mr. JONES. I will be very glad to do that Mr. Chairman. The only reason we had not prepared a rule in advance is the fact that we wanted to come before the committee for the purpose of talking it over, thinking perhaps we might be able to draft it more in accordance with the wishes of the Committee on Rules.

Mr. BANKHEAD. The Committee on Rules has no wishes about it, so far as I know. We do not know enough about the proposition to come to any conclusion individually about it, and what we are entitled to have is the form of the rule you gentlemen desire. That is usually the case, to have a rule introduced when it is requested, and inasmuch

as this is a rather complicated proposition, I suggest that you gentlemen get together to-day and agree on a rule.

Mr. BANKHEAD. Mr. Hart, if you desire to make a statement the committee will be glad to hear you.

STATEMENT OF HON. MICHAEL J. HART, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MICHIGAN

Mr. HART. Mr. Chairman, referring to H. R. 11866, as far as I am concerned, as an agriculturist, I prefer to have no rule.

I think it would take the wisdom of Solomon and the power of Mussolini to put this into effect.

I have had 30 years' experience in marketing farm products, and it simply could not be done. There are many things in there that I have had good attorneys tell me are absolutely unconstitutional. Mr. PURNELL. You refer to Title III, the allotment plan?

Mr. HART. Yes; and the equalization fee is about as bad. So far as the debenture is concerned, it is workable, but it will be a heavy drain on the Treasury, and I do not think it will be put into law.

But if there is a rule drawn, we want the opportunity to offer an amendment in reference to the time of the act going into effect, because that is a very vital thing.

You have in this country merchants who are carrying consignments of cotton for spinners all over Europe, and these merchants might be destroyed, if you put it into effect, say, within 30 days, or within 60 days, because they would not have the opportunity to dispose of their stock. They would have to bring it back here, and they would not have an opportunity to dispose of it. They sell to European spinners, and you would have to protect them, or else they would be destroyed.

As to any rule that might be brought in covering the debenture plan, I would like to see plenty of opportunity provided for amend

ment.

Mr. BANKHEAD. You need not have any apprehension about that. Mr. HART. That is all I want to say on the subject, Mr. Chairman. This bill known as the Fulmer bill is practically impossible of execution.

Mr. FULMER. May I say, Mr. Chairman, my bill is not before the committee.

(Thereupon the committee proceeded to the consideration of other business.)