Department of Agriculture Appropriations for 1964

the Agency shall post in at least one conspicuous public place and otherwise make known publicly to prospective purchasers a record or list of all Choice (A cotton available for sale by it (hereinafter called "the Agency's catalog"). As provided in Sales Announcement CN-A and any instructions issued by CCC, the cotton covered by the Agency's catalog shall be offered for sale on an individual bale basis or in lots, as the Agency determines will maximize the sales of and prices for the cotton being offered for sale.

3. The Agency shall prepare and post in at least two conspicuous public places and otherwise make available to prospective purchasers a typewritten or printed Notice of Sale specifying (a) that all Choice (A) cotton available for sale will be sold in accordance with the provisions of Sales Announcement CN-A and that a copy thereof will be made available by the Agency upon request, (b) that all offers to purchase such cotton shall be on an offer form for Choice (A) enttin. CCC Cotton Form 81, (e) that all offers shall be submitted in duplicate in a sealed envelope addressed to the Agency and identified as an offer for Choice (A) cotton, (d) the date, time, and place of the opening of such offers, (e) the name and address of the custodian bank, (f) where the Agency's catalog is available for examination, (g) whether samples of the cotton are available for inspection and, if so, where located, (h) whether offers at identical prices on the same lot (s) of cotton will be allocated on the basis of the quantity covered by each offer or awarded to the first offer received, (i) that the Agency will receive, open, consider, and accept or reject on behalf of CCC the offers received by the Agency within the time specified in the notice, and (j) that the Agency will notify each successful offerer which of his offers are accepted.

4. All offers shall be opened by the Agency at the time designated in the Notice of Sale. The offers opened at each opening of bids shall be identified as instructed by CCC. The original of each offer, the envelope in which it was received, and a listing of all offers received shall be forwarded to the New Orleans Office immediately upon opening of offers. The duplicate of each offer shall be retained by the Agency. The Agency shall consider the offers, determine acceptable offers in accordance with the provisions of Sales Announcement CN-A and any other instructions issued by CCC, and notify each offerer which of his offers are accepted and which are not accepted. A list showing the successful offerers shall be released by the Agency to the public immediately after each sale and a copy of such list shall be forwarded to the New Orleans Office. The list shall be prepared in accordance with instructions from the New Orleans Office.

5. The Agency may obtain one sample from each bale of cotton being offered for sale from the warehouseman storing the cotton. Any charges made in connection with obtaining the samples will be for the Agency's account. If the Agency has samples which represent the cotton, it must make such samples available for inspection by prospective purchasers upon request.

6. When an offer for cotton is accepted, the Agency shall deliver to the custodian bank (a) two copies of an invoice, prepared in accordance with instructions from CCC, covering the sale, (b) three copies of a tag list of the cotton sold. and (c) a sight draft drawn on the purchaser payable to CCC for the amount of the invoice. The sight draft shall be drawn for payment at the bank designated by the purchaser in his offer. The custodian bank will attach to the sight draft the warehouse receipts indicated on the tag list received from the Agency and will release the sight draft, with invoice, tag list, and warehouse receipts attached, to the purchaser upon payment of the invoice amount or forward the draft with documents attached to the other bank specified by the purchaser for collection.

7. If the sales proceeds received by CCC for cotton sold by the Agency are deficient because of failure of the Agency to accept the highest offer, because the Agency sold the cotton at less than the minimum sales price, because of understatement of the sales value on the invoice prepared by the Agency, or because of any other failure of the Agency to carry out properly its responsibilities under this agreement, the Agency shall pay the amount of such deficiency to CCC upon demand.

8. On April 30 of the calendar year following the year in which the cotton was produced, unless such date is extended by CCC, the Agency shall discontinue sales of cotton hereunder, and the warehouse receipts held in custody representing unsold cotton will be delivered to CCC by the custodian bank upon receipt of a tag list covering such cotton. The custodian bank will, at any time prior to such date, also deliver to CCC any warehouse receipts designated by Agency or CCC and covered by a tag list furnished to the custodian bank and the cotton represented by such warehonge receipts shall not thereafter be offered for sale by the Agency

9. Upon notice from CCC, the Agency shall discontinue sales hereunder for such period of time as CCC shall specify or with respect to such cotton as CCC shall specify.

10. CCC shall have the right to prescribe additional or specific terms and conditions of sale of its cotton by the Agency under this agreement in order to maximize the sales of and prices for the cotton being offered for sale or as otherwise determined by CCC to be desirable.

SECTION II. COMPENSATION

1. The compensation to be paid the Agency for sale of cotton for CCC pursuant to this agreement shall be the following:

(a) A fee computed at the rate of $1 for each bale of cotton sold under this agreement. Such fees will be paid monthly by CCC.

(b) A commission of 10 percent of the amount by which the sales price of the cotton sold exceeds the minimum sales price prescribed by CCC, but in no event shall such commission exceed $1.50 on any bale. Commissions earned hereunder will be paid at the end of the marketing year or after all the cotton available for sale by the Agency has been sold or the warehouse receipts covering the unsold cotton have been delivered to CCC at the New Orleans Office, whichever is the earliest.

2. The compensation accruing to the Agency under this section II shall constitute full payment for all services performed and expenses incurred hereunder by the Agency, and the Agency shall not make any other charge of any kind to CCC or purchasers of cotton for any services rendered by it in connection with the sale of choice (A) cotton for CCC under this agreement.

SECTION III. PERFORMANCE GUARANTEE

Prior to making any sales of cotton hereunder, the Agency shall furnish CCC (1) a cash deposit, (2) a bond in form and with sureties satisfactory to CCC, or (3) a performance type letter of credit satisfactory to CCC. The deposit, bond, or letter of credit shall be in such amount as determined by CCC to be necessary to fully protect the interests of CCC in connection with this agreement, and CCC may require an increase in the amount of such deposit, bond, or letter of credit at any time it determines that such increase is necessary to protect the interests of CCC.

SECTION IV. MISCELLANEOUS

1. Any instruction, direction, request, consent, authorization, approval, demand, or notice required or given under this agreement must be in writing.

2. No Member of or Delegate to Congress, or Resident Commissioner, shall be admitted to any share or part of this agreement or to any benefit that may arise therefrom, but this provision shall not be construed to extend to such persons in their capacity as cotton producers nor to this agreement if made with a corporation for its general benefit.

4. The Agency shall maintain such files, records, and controls and shall furnish such information and reports in connection with transactions relating to this agreement as may be requested by CCC. Such files and records shall, at all reasonable times, be open to audit and inspection by authorized representatives of CCC. 5. Nothing contained in this agreement shall be construed as limiting the right of CCC to amend the Cotton Custodian Agreement.

SECTION V. TERMINATION

Either CCC or the Agency shall have the right to terminate this agreement by giving the other 24 hours' prior notice of its intention so to do, but such termination shall not affect the obligations of the parties hereto with respect to the cotton sold by the Agency for CCC prior to the effective date of such termination.

Upon and after the effective date of such termination, the Agency shall cea to sell cotton for CCC pursuant to this agreement.

In Witness Whereof, the parties hereto have executed this agreement in duşêcate as of the

day of

-19

This Agreement made and entered into by and between Commodity Credit Corporation, an agency of the United States (hereinafter called “CCC”), and

Whereas CCC will conduct a program to sell Choice (A) upland cotton purchased from producers under Cotton Purchase Programs of CCC;

Whereas CCC, in carrying out such sales program, desires to utilize sales agences with experience in merchandising cotton during 1957 or 1958, which have entered into Cotton Sales Agency Agreements with CCC;

Whereas the Agency desires to make its facilities available to CCC in connection with such programs; and

Whereas the Agency desires to be eligible to purchase any cotton being offered for sale by CCC, including cotton being offered for sale by the agency for CCC under this agreement;

Now, therefore, in consideration of the premises and of the mutual covenants and agreements herein contained, the parties hereto agree as follows:

SECTION I. SALES PROCEDURE

1. Subject to the terms and conditions hereinafter set forth, the terms and conditions of sales by local sales agencies of Choice (A) cotton for unrestricted use (Sales Announcement CN-A) and any amendments thereto issued by CCC, and such instructions as CCC may from time to time issue, the Agency is authorized, on and after August 1, 1959, to act as agent for CCC in the sale of Choice (A) upland cotton purchased by CCC from producers under cotton purchase programs of CCC. The cotton available for sale by the Agency shall be all of the cotton represented by warehouse receipts held in custody for CCC by the bank designated by the Agency and approved by CCC (hereinafter called "the custodian bank") for sale locally by the Agency for CCC. All such cotton shall be offered for sale by the Agency at each opening of offers during the period beginning August 1, 1959, or one week after delivery of the warehouse receipts to the custodian bank, whichever is later, and ending when the cotton is sold or sales are to be discontinued in accordance with paragraphs 8 and 9 of this section I. There shall be an opening of offers at least once a week at such time and on such days as may be selected by the Agency, taking into account the time and days other local agencies are opening offers.

2. At least 24 hours in advance of the time specified for each opening of offers, the Agency shall post in at least one conspicuous public place and otherwise make known publicly to prospective purchasers a record or list of all Choice (A) cotton available for sale by it (hereinafter called "the Agency's catalog"). As provided in Sales Announcement CN-A and any instructions issued by CCC, the cotton covered by the Agency's catalog shall be offered for sale on an

individual bale basis or in lots, as the Agency determines will maximize the sales of and prices for the cotton being offered for sale.

3. The Agency shall prepare and post in at least two conspicuous public places and otherwise make available to prospective purchasers a typewritten or printed Notice of Sale specifying (a) that all Choice (A) cotton available for sale will be sold in accordance with the provisions of Sales Announcement CN-A and that a copy thereof will be made available by the Agency upon request, (b) that all offers to purchase such cotton shall be on an offer form for Choice (A) cotton, CCC Cotton Form 81, (c) that all offers shall be submitted in duplicate in a sealed envelope addressed to the custodian bank and identified as an offer for Choice (A) cotton being offered for sale by the Agency, (d) the date, time, and place of the opening of such offers, (e) the name and address of the custodian bank, (f) where the Agency's catalog is available for examination, (g) whether samples of the cotton are available for inspection and, if so, where located, (h) whether offers at identical prices on the same lot(s) of cotton will be allocated on the basis of the quantity covered by each offer or awarded to the first offer received, (i) that the custodian bank will receive and open offers as directed by CCC, and (j) that the Agency will consider and accept or reject on behalf of CCC the offers received by the custodian bank within the time specified in the Notice and will notify each successful offerer which of his offers are accepted.

4. CCC will enter into a Cotton Custodian Agreement with custodian bank providing that all offers will be opened by the custodian bank at the time designated in the Notice of Sale, that the offers opened at each opening of bids will be identified by the custodian bank as instructed by CCC, that the original of each offer, the envelope in which it was received, and a listing of all offers received will be forwarded to the New Orleans CSS Commodity Office (hereinafter called the New Orleans Office) by the custodian bank immediately upon opening of offers, and that the duplicate of each offer and a copy of the listing of all offers received will be furnished to the Agency immediately upon the opening of offers. The Agency shall consider the offers, determine acceptable offers in accordance with the provisions of Sales Announcement CN-A and any other instructions issued by CCC, and notify each offerer which of his offers are accepted and which are not accepted. A list showing the successful offerers shall be released by the Agency to the public immediately after each sale, and a copy of such list shall be forwarded to the New Orleans Office. The list shall be prepared in accordance with instructions from the New Orleans Office.

6. When an offer for cotton is accepted, the Agency shall deliver to the custodian bank (a) three copies of an invoice, prepared in accordance with instructions from CCC, covering the sale, (b) three copies of a tag list of the cotton sold, and (c) a sight draft drawn on the purchaser payable to CCC for the amount of the invoice. The sight draft shall be drawn for payment at the bank designated by the purchaser in his offer. The custodian bank will attach to the sight draft the warehouse receipts indicated on the tag list received from the Agency and will release the sight draft, with invoice, tag list, and warehouse receipts attached, to the purchaser upon payment of the invoice amount or forward the draft with documents attached to the other bank specified by the purchaser for collection.

8. On April 30 of the calendar year following the year in which the cotton was produced, unless such date is extended by CCC, the Agency shall discontinue sales of cotton hereunder, and the warehouse receipts held in custody repre senting unsold cotton will be delivered to CCC by the custodian bank upon receipt of a tag list covering such cotton. The custodian bank will, at any time prior to such date, also deliver to CCC any warehouse receipts designated by Agency or CCC and covered by a tag list furnished to the custodian bank,

and the cotton represented by such warehouse receipts shall not thereafter be offered for sale by the Agency.

9. Upon notice from CCC, the Agency shall discontinue sales hereunder for such period of time as CCC shall specify or with respect to such cotton as CCC shall specify.

SECTION II. COMPENSATION

1. The compensation to be paid the Agency for the sale of cotton for CCC pursuant to this agreement shall be a fee computed at the rate of $1 for each bale of cotton sold under this agreement. Such fees will be paid monthly by CCC.

SECTION III. PERFORMANCE GUARANTEE

Prior to making any sales of cotton hereunder, the Agency shall furnish CCC (1) a cash deposit, (2) a bond in form and with sureties satisfactory to CCC. or (3) a performance type letter of credit satisfactory to CCC. The deposit. bond, or letter of credit shall be in such amount as determined by CCC to be necessary to fully protect the interests of CCC in connection with this agree ment, and CCC may require an increase in the amount of such deposit, bond, or letter of credit at any time it determines that such increase is necessary to protect the interests of CCC.

SECTION IV. MISCELLANEOUS

1. Any instruction, direction, request, consent, authorization, approval, de mand, or notice required or given under this agreement must be in writing. 2. No member of or Delegate to Congress, or Resident Commissioner, shall be admitted to any share or part of this agreement or to any benefit that may arise therefrom, but this provision shall not be construed to extend to such persons in their capacity as cotton producers nor to this agreement if made with a corporation for its general benefit.

3. The Agency warrants that it has not employed any person to solicit or secure this contract upon any agreement for a commission, percentage, brokerage, or contingent fee, and that no such consideration or payment has been or will be made. Breach of this warranty shall give CCC the right to annul the contract, or at its discretion, to deduct from the contract consideration the amount of such commission, percentage, brokerage, or contingent fees. This warranty shall not apply to commissions payable by the Agency upon contracts secured or made through bona fide employees or bona fide established commercial or selling agencies utilized by the Agency for the purpose of securing business. 4. The Agency shall maintain such files, records, and controls and shall fur st such information and reports in connection with transactions relating to this agreement as may be requested by CCC. Such files and records shall. at al reasonable times, be open to audit and inspection by authorized representatives of CCC.

5. Nothing contained in this agreement shall be construed as limiting the right of CCC to amend the Cotton Custodian Agreement.

SECTION V. TERMINATION

Either CCC or the Agency shall have the right to terminate this agreement be giving the other 24 hours' prior notice of its intention so to do, but such termination shall not affect the obligations of the parties hereto with respect to the cotton sold by the Agency for CCC prior to the effective date of such termination. Upon and after the effective date of such termination, the Agency shall cease to sell cotton for CCC pursuant to this agreement.

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Department of Agriculture Appropriations for 1964: Hearings Before the ...