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FISHERY CREDIT ACT

TUESDAY, JUNE 29, 1937

HOUSE OF REPRESENTATIVES,
COMMITTEE ON THE MERCHANT MARINE AND FISHERIES,

Washington, D.C. The committee met at 10 a. m., Hon. Schuyler 0. Bland (chairman) presiding

The CHAIRMAN. Gentlemen, we have met to consider H. R. 6039 and H. R. 7309, the last bill, H. R. 7309, to establish a Fishery Credit Corporation, clearly being intended as a substitute for the first bill, and that has been referred to the Bureau and there has been no report submitted up to this time. .

[H. R. 6039, 75th Cong. 1st sess.) A BILL To establish a Fishery Cooperative Loan Corporation, to promote the cooperative

production and merchandising of aquatic products in interstate and foreign commerce, and to provide for organizations within the Bureau of Fisheries of the Department of Commerce for services in connection therewith

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

DECLARATION OF POLICY

Section 1. That it is hereby declared to be the policy of Congress to promote cooperative activity among producers of aquatic products in the collective planting, cultivating, propagating, producing, harvesting, catching, taking, collecting, or gathering of aquatic products, and the effective merchandising of aquatic products or the byproducts thereof, or produced therefrom, in interstate and foreign commerce, so that the fishery industry 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 aquatic products and the byproducts thereof or produced therefrom

(1) By minimizing speculation;
(2) By preventing inefficient and wasteful methods of distribution;

(3) By encouraging the organization of producers of aquatic products 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 fishery marketing system of producer-owned and producer-controlled fishery cooperative associations and other agencies; and

(4) The Secretary of the Department of Commerce shall execute the powers vested in the Department of Commerce by this Act in such manner as will in his judgment aid to the fullest practicable extent in carrying out the policy above declared.

ESTABLISHMENT OF THE “FISHERY COOPERATIVE LOAN COTPORATION”.

SEC. 2. The Secretary of Commerce, hereinafter referred to as the Secretary, is hereby authorized and directed to organize and charter a corporation to be known as the “Fishery Cooperative Loan Corporation”, with its principal office in the District of Columbia and such other offices as in the opinion of the Secretary may be necessary.

BOARD OF FISHERY COOPERATIVE LOAN CORPORATION

SEC. 3 (a) The board of directors of the Fishery Cooperative Loan Corporation shall consist of seven members, one of whom shall be the Commissioner of the Bureau of Fisheries, ex-officio chairman, Chief of the Division of Fishery Industries of the Bureau of Fisheries, and the Director of Fishery Cooperative Marketing Work of the Bureau of Fisheries, hereinafter provided, who shall be executive secretary of the board and administrative officer of the Fishery Cooperative Loan Corporation. The other six directors shall be appointed by the Secretary, of whom the successors of three directors first appointed shall be appointed from nominees selected by borrowers as provided in subsection (b). The terms of the directors first appointed shall be for one, two, and three years as designated by the Secretary at the time of appointment and their successors shall hold their offices during a term of three years, but a director appointed to fill a vacancy shall hold his office for the unexpired term of the director whose place he is selected to fill. Any appointed director may at any time be removed for cause by the Secretary. No compensation shall be paid any director as a director of the Corporation but the Corporation, subject to the approval of the Secretary, may allow directors a reasonable per diem and expenses.

(b) The successors of three of the directors first appointed shall be selected one each year by the Secretary from among individuals nominated by bor

The Secretary shall, not less than sixty days prior to the end of the term of any director whose successor is to be appointed from among nominees as herein provided, or as soon as practicable after a vacancy occurs in the office of such director other than by the expiration of his term, cause notice of the vacancy to be sent to each borower eligible to vote for nominees. Each such borrower shall be eligible to cast one vote. The Secretary shall not count any ballot received after the expiration of thirty days after the sending of notice. From those (not exceeding three) receiving highest number of votes, as shown by his count, the Secretary shall appoint the director.

rowers.

POWERS OF CHAIRMAN AND BOARD

SEC. 4.The chairman of the board of the Corporation shall be the executive officer of the Corporation and the powers of the board of directors shall be such powers as may be prescribed in the charter and bylaws of the Corporation. The executive secretary of the board shall be the administrative officer and his duties and responsibilities shall be delegated by the chairman and the board.

CAPITAL STOCK OF FISHERY COOPERATIVE CORPORATION

SEC. 5. The capital stock of the Corporation shall be in such amount as the Secretary determines is required for the purpose of meeting the credit needs of eligible borrowers from the Corporations as provided herein, and the Secretary may from time to time increase or decrease such amount in accordance with such needs. The stock of such corporation shall be divided into shares of $100 each. Out of the revolving fund provided herein, the Secretary, on behalf of the United States, shall subscribe for and make payments for stock in the Corporation and such payments shall be subject to call in whole or in part by the chairman of the board of the Corporation with the approval of the Secretary.

LENDING POWER OF FISHERY COOPERATIVE LOAN CORPORATION

SEC. 6. (a) Upon application by any fishery cooperative association, the Fishery Cooperative Loan Corporation is authorized to make loans to it subject to the conditions and limitations set forth in this Act, and to make loans, by way of discount or otherwise in accordance with such terms and conditions as may be prescribed by the articles of incorporation and the board of directors of the Fishery Cooperative Loan Corporation to assist it in

(1) The collective planting, cultivating, propagating, producing, harvesting, catching, taking, collecting, or gathering of aquatic products;

(2) The effective merchandising of aquatic products, the byproducts thereof, or manufactured therefrom, and the financing of its operations; and

(3) The construction or acquisition by purchase or lease, or refinancing the cost of such construction or acquisition of physical facilities.

(b) No loan shall be made to any fishery cooperative association unless, in the judgment of the Secretary, the loan is in furtherance of the policy declared

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