The managers on the part of the House at the conference on the disagreeing votes of the two Houses on the amendment of the House to the bill (S. 1384) to amend the Emergency Farm Mortgage Act of 1933, to amend the Federal Farm Loan Act, to amend the Agricultural Marketing Act, and to amend the Farm Credit Act of 1933, and for other purposes, submit the following statement in explanation of the effect of the action agreed upon and recommended in the accompanying conference report: Section 1, subsections (a), (b), (d), and (e) of section 2, sections 4, 5, 6, 7, 8, 9, 10, 12, 13, 14, 15, and 16, and subsections (a) and (b) of section 17, of the Senate bill are the same in substance as the corresponding sections and subsections of the House amendment. Section 25 of the Senate bill is the same as subsection (c) of section 17 of the House amendment, and section 27 of the Senate bill is the same as section 18 of the House amendment. Certain clarifying changes were made in some of these sections in the House amendment and the conference agreement retains these sections as clarified. Section 2 (c) of the Senate bill authorized the Land Bank Commissioner to make loans under section 32 of the Emergency Farm Mortgage Act of 1933 to corporations engaged in the raising of livestock with the restriction that no such loan should be made unless all the stock of the corporation was "owned by persons themselves personally actually engaged in the raising of livestock on the land to be mortgaged as security for the loan," except where the Commissioner permitted such a loan if at least 75 percent of the stock was so owned. There was also a restriction that no such loan should be made to a corporation which was a subsidiary of, or affiliated (either directly or through substantial identity of stock ownership) with, a corporation ineligible to procure a loan in the amount applied for. There were no corresponding provisions in the House amendment. The conference agreement retains the provisions of the Senate bill and adds a further restriction that no loan shall be made to any such corporation unless the owners of at least 75 percent of the stock assume personal liability for the loan. Section 3 of the Senate bill provided for reducing the amount of interest-reimbursement payments by the Secretary of the Treasury to the Federal land banks for each quarter subsequent to 1934, by the amount of savings in interest payable by the banks effected through bond refunding operations subsequent to June 30, 1934. There was no corresponding provision in the House amendment. The conference agreement eliminates this provision of the Senate bill. Section 3 of the House amendment provided for reducing the interest rate paid by Federal land-bank borrowers whose loans were obtained through national farm-loan associations or were outstanding on May 12, 1933, to a maximum of 3%1⁄2 percent per annum for all interest payable on installment dates occurring within a period of 1 year commencing July 1, 1935, and to a maximum of 4 percent per annum for all interest payable on installment dates occurring within a period of 2 years commencing July 1, 1936. Corresponding reductions were also made in the maximum rates of interest payable during the same periods by Federal land-bank borrowers who obtained loans direct or through branches. Section 26 of the Senate bill provided for reducing the interest rate payable by Federal land-bank borrowers to 31⁄2 percent per annum during the 5-year period beginning July 11, 1933, and ending July 11, 1938, in cases where loans were outstanding on May 12, 1933, or were made thereafter through national farm-loan associations. It also extended the benefits of this interest reduction, and of the automatic deferment of principal provided for in existing law, to borrowers who obtained loans after May 12, 1935. Corresponding benefits were granted to borrowers who obtained loans direct or through Federal land-bank branches. The conference agreement retains the provisions of section 3 of the House amendment. Section 11 of the Senate bill contained a provision providing that the rate of interest on any loan made by the Governor of the Farm Credit Administration or a bank for cooperatives to any cooperative association on the security of commodities should conform, as nearly as may be practicable, to the prevailing interest rate of commodity loans charged borrowers from the Federal intermediate credit bank of the district in which the principal office of the association was located. There was no corresponding provision in the House amendment. The conference agreement retains the provision of the Senate bill. Section 18 of the Senate bill provided that obligations incurred by the Federal Farm Mortgage Corporation must be within the estimates submitted to and approved by the Director of the Budget. There was no corresponding provision in the House amendment and the conference agreement eliminates the provision of the Senate bill. Section 19 of the Senate bill provided for loans through the Federal land-bank system to corporations, with the restriction that no such loan should be made (1) unless the persons who owned all the stock of the corporation were actually engaged in the cultivation or operation of, or in the ra sing of livestock on, the farm to be mortgaged as security for the loan, except where such loans were permitted by the Land Bank Commissioner if at least 75 percent of the stock of the corporation was owned by persons actually so engaged, and (2) unless the owners of at least 75 percent of the stock assumed personal liability for the loan. There was a further restriction that no loan should be made to any corporation which was a subsidiary of, or affiliated (either directly or through substantial identity of stock ownership) with, a corporation ineligible to secure a loan in the amount applied for. The House amendment contained no such provision. The conference agreement retains the provision of section 19 of the Senate bill with one exception, namely, that the corporations which are eligible for such loans are restricted to those which are engaged in the raising of livestock. Sections 20, 21, and 22 of the Senate bill contained amendments of a technical character necessary to permit Federal land-bank loans to be made to corporations. These provisions, which were not contained in the House amendment, are restored under the conference agreement in order to carry into effect the action taken with respect to section 19 of the Senate bill. Section 23 of the Senate bill contained a provision requiring that in determining the earning power of land used in the raising of livestock, due consideration should be given to the extent to which the earning power of the fee-owned land was augmented by a lease or permit for the use of a portion of the public lands. This was intended to express in legislative form the policy followed in the appraisal of such land. No comparable provision was contained in the House amendment. The conference agreement retains this provision of the Senate bill. Section 24 of the Senate bill contained a provision rendering ineligible for appointment or election as an administrative or executive official or as a member of the board of directors of a Federal land bank or affiliated institutions, any person who had been finally adjudged guilty of a felony, or finally adjudged liable in damages in any civil proceeding for fraud, in a State or Federal court. There was no similar provision in the House amendment. The conference agreement retains the provision of the Senate bill. MARVIN JONES, J. ROLAND KINZER, NATIONAL LABOR RELATIONS BOARD MAY 20, 1935.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. CONNERY, from the Committee on Labor, submitted the following REPORT [To accompany H. R. 7978] The Committee on Labor, to whom was referred the bill H. R. 7978, having considered the same, report favorably thereon without amendment and recommend that the bill do pass. A bill (H. R. 6288) to promote equality of bargaining power between employers and employees, to diminish the causes of labor disputes, to create a National Labor Relations Board, and for other purposes, was referred to the Committee on Labor and was made the subject of extended hearings. H. R. 7978, a somewhat amended version of the original bill, conforms to the considered views of the committee after consideration of H. R. 6288, and H. R. 7978 is herewith favorably reported. The provisions and objects of this bill have been subjected to preposterous exaggerations and misrepresentation. Various associations of employers have expressed unwonted solicitude for the rights of employees, which they profess to believe are jeopardized by the bill. But the bill is merely an amplification and further clarification of the principles enacted into law by the Railway Labor Act and by section 7 (a) of the National Industrial Recovery Act, with the addition of enforcement machinery of familiar pattern. Curiously, few opponents of the bill have had the hardihood to avow an opposition to the principles of section 7 (a); they take alarm, however, when a serious effort is proposed to enforce the mandate of that law. Upon the passage of the National Industrial Recovery Act it was hailed by the President as giving to workers "a new charter of rights long sought and hitherto denied." Section 7 (a) provided: Every code of fair competition, agreement, and license approved, prescribed, or issued under this title shall contain the following conditions: (1) That employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be free from the interference, restraint, or coercion of employers of labor, or their agents, in the designation of such |