(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. The Corporation may, whenever it deems it necessary or desirable in the conduct of its business, consent to the modification of any term or condition of any contract or agreement of any kind to which it is a party. 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 and 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.

(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.

(k) Shall have authority to make final and conclusive settlement and adjustment of any claims by or against the Corporation or the accounts of its fiscal officers.

(1) May make such loans and advances of its funds as it deems necessary or desirable in the conduct of its business.

(m) May conduct researches, surveys, and investigations relating to the conduct of its business.

(n) Shall have such powers as may be necessary or appropriate for the exercise of the powers specifically vested in the Corporation, and all such incidental powers as are customary in corporations generally.

SEC. 5. SPECIFIC POWERS.-In the fulfillment of its purposes and in carrying out its annual budget programs submitted to and approved by the Congress pursuant to the Government Corporation Control Act (31 U. S. C., 1940 edition, Supp. V, 841), the Corporation is authorized to use its general powers only to(a) Support the prices of agricultural commodities through loans, purchases, payments, and other operations.

(b) Make available materials and facilities required in connection with the production and marketing of agricultural commodities.

(c) Procure agricultural commodities for sale to other Government agencies, foreign governments, and domestic, foreign, or international relief or rehabilitation agencies, and to meet domestic requirements.

(d) Remove and dispose of or aid in the removal or disposition of surplus agricultural commodities,

(e) Increase the domestic consumption of agricultural commodities by expanding or aiding in the expansion of domestic markets or by developing or aiding in the development of new and additional markets, marketing facilities, and uses for such commodities.

(f) Export or cause to be exported, or aid in the development of foreign markets for, agricultural commodities.

(g) To the extent specifically authorized by law, make payments with respect to, or purchases for resale at a loss of, agricultural commodities, for the purpose of maintaing the maximum prices established under the Emergency Price Control Act of 1942, as amended.

(h) Carry out such other operations as the Congress may authorize or provide for.

SEC. 6. EXISTING STATUTES APPLICABLE TO THE CORPORATION.-The Federal statutes applicable to Commodity Credit Corporation, a Delaware corporation, shall be applicable to the Corporation. Commodity Credit Corporation, a Dela

ware corporation, shall cease to be an agency of the United States as provided in section 7 (a) of the Act of January 31, 1935, as amended (15 U. S. C., 1940 edition, Supp. V, 713 (a)).

SEC. 7. CAPITAL STOCK.-The Corporation shall have a capital stock of $100,000,000, which shall be subscribed by the United States. Such subscription shall be deemed to be fully paid by the transfer of assets to the Corporation pursuant to section 16 of this Act. The Secretary is hereby authorized and directed to receive such stock and to exercise, on behalf of the United States, any and all rights of the United States arising out of the ownership of such stock.

SEC. 8. FUNDS.-The Corporation is authorized to use in the conduct of its business all its funds and other assets, including capital and net earnings therefrom, and all funds and other assets which have been or may hereafter be transferred or allocated to, borrowed by, or otherwise acquired by it.

SEC. 9. DIRECTORS.—The management of the Corporation shall be vested in a Board of Directors (hereinafter referred to as the "Board"), subject to the general direction and control of the Secretary, who shall be a director and serve as Chairman of the Board. The Board shall consist of not less than three or more than eleven persons employed in the Department of Agriculture, who shall be appointed by and hold office at the pleasure of the Secretary. The directors so appointed shall receive no compensation for their services as directors. Nothing herein contained shall preclude any director from serving the Corporation in any other capacity and receiving compensation therefor.

SEC. 10. PERSONNEL OF CORPORATION.-The Secretary shall appoint such officers and employees as may be necessary for the conduct of the business of the Corporation, define their authority and duties, delegate to them such of the powers vested in the Corporation as he may determine, require that such of them as he may designate be bonded and fix the penalties therefor. The Corporation may pay the premium of any bond or bonds. With the exception of experts, appointments shall be made pursuant to the civil-service laws and the Classification Act of 1923, as amended (5 U. S. C., 1940 edition, 661).

SEC. 11. COOPERATION WITH OTHER GOVERNMENTAL AGENCIES.-The Corporation may, with the consent of the agency concerned, accept and utilize, on a compensated or uncompented basis, the officers, employees, services, facilities, and information of any agency of the Federal Government, including any bureau, office, administration, or other agency of the Department of Agriculture, and of any State, the District of Columbia, any Territory or possession, or any political subdivision thereof. The Corporation may allot to any bureau, office, administration, or other agency of the Department of Agriculture or transfer to such other agencies as it may request to assist it in the conduct of its business any of the funds available to it for administrative expenses. The personnel and facilities of the Corporation may, with the consent of the Corporation, be utilized on a reimbursable basis by any agency of the Federal Government, including any bureau, office, administration, or other agency of the Department of Agriculture, in the performance of any part or all of the functions of such agency.

SEC. 12. UTILIZATION OF ASSOCIATIONS AND TRADE FACILITIES.-The Corporation may, in the conduct of its business, utilize on a contract or fee basis, committees or associations of producers, producer-owned and producer-controlled cooperative associations, and trade facilities.

SEC. 13. RECORDS: ANNUAL REPORT.-The Corporation shall at all times maintain complete and accurate books of account and shall file annually with the Secretary a complete report as to the business of the Corporation, a copy of which shall be forwarded by the Secretary to the President for transmission to the Congress.

SEC. 14. INTEREST OF MEMBERS OF THE CONGRESS.-The provisions of section 1 of the Act of February 27, 1877, as amended (41 U. S. C., 1940 edition, 22), shall apply to all contracts or agreements of the Corporation, except contracts or agreements of a kind which the Corporation may enter into with farmers participating in a program of the Corporation.

SEC. 15. CRIMES AND OFFENSES.

FALSE STATEMENTS; OVERVALUATION OF SECURITIES

(a) Whoever makes any statement knowing it to be false, or whoever willfully overvalues any security, for the purpose of influencing in any way the action of the Corporation, or for the purpose of obtaining for himself or another money, property, or anything of value, under this Act, or under any other Act applicable to the Corporation, shall, upon conviction thereof, be punished by a fine of not more than 10,000 or by imprisonment for not more than five years, or both.

EMBEZZLEMENT, AND SO FORTH; FALSE ENTRIES; FRAUDULENT ISSUE OF OBLIGATIONS OF CORPORATION

(b) Whoever, being connected in any capacity with the Corporation or any of its programs, (i) embezzles, abstracts, purloins, or willfully misapplies any money, funds, securities, or other things of value, whether belonging to the Corporation or pledged or otherwise entrusted to it; or (ii) with intent to defraud the Corporation, or any other body, politic or corporate, or any individual, or to deceive any officer, auditor, or examiner of the Corporation, makes any false entry in any book, report, or statement of, or to, the Corporation, or draws any order, or issues, puts forth or assigns any note or other obligation or draft, mortgage, judgment, or decree thereof; or (iii) with intent to defraud the Corporation, participates or shares in, or receives directly or indirectly any money, profit, property, or benefits through any transaction, loan, commission, contract, or any other act of the Corporation, shall, upon conviction thereof, be punished by a fine of not more than $10,000 or by imprisonment for not more than five years, or both.

LARCENY; CONVERSION OF PROPERTY

(c) Whoever shall willfully steal, conceal, remove, dispose of, or convert to his own use or to that of another any property owned or held by, or mortgaged or pledged to, the Corporation, shall, upon conviction thereof, be punished by a fine of not more than $10,000 or by imprisonment for not more than five years, or both.

CONSPIRACY TO COMMIT OFFENSE

(d) Whoever conspires with another to accomplish any of the acts made unlawful by the preceding provisions of this section shall, upon conviction thereof, be subject to the same fine or imprisonment, or both, as is applicable in the case of conviction for doing such unlawful acts.

GENERAL STATUTES APPLICABLE

(e) All the general penal statutes relating to crimes and offenses against the United States shall apply with respect to the Corporation, its property, money, contracts and agreements, employees, and operations: Provided, That such general penal statutes shall not apply to the extent that they relate to crimes and offenses punishable under subsections (a), (b), (c), and (d) of this section: Provided further, That sections 114 and 115 of the Act of March 4, 1909, as amended (18 U. S. C., 1940 edition, 204, 205) shall not apply to contracts or agreements of a kind which the Corporation may enter into with farmers participating in a program of the Corporation.

SEC. 16. TRANSFER OF ASSETS OF COMMODITY CREDIT CORPORATION, A DELAWARE CORPORATION.-The assets, funds, property, and records of Commodity Credit Corporation, a Delaware corporation, are hereby transferred to the Corporation. The rights, privileges, and powers, and the duties and liabilities of Commodity Credit Corporation, a Delaware corporation, in respect to any contract, agreement, loan, account, or other obligation shall become the rights, privileges, and powers, and the duties and liabilities, respectively, of the Corporation. The enforceable claims of or against Commodity Credit Corporation, a Delaware corporation, shall become the claims of or against, and may be enforced by or against the Corporation.

SEC. 17. DISSOLUTION OF DELAWARE CORPORATION.-The Secretary, representing the United States as the sole owner of the capital stock of Commodity Credit Corporation, a Delaware corporation, is hereby authorized and directed to institute or cause to be institued such proceedings as are required for the dissolution of said corporation under the laws of the State of Delaware. The costs of such dissolution of said corporation shall be borne by the Corporation.

SEC. 18. CORPORATION ADMINISTRATIVE ACCOUNTS.-In the event that the personnel or facilities of any bureau, office, administration, or other agency of or within the Department of Agriculture, including the Corporation, are utilized in the performance of functions, including those of the Corporation, for which separate funds are available, the Secretary of the Treasury is authorized and directed, upon the request of the Secretary, to establish one or more separate accounts into which there may be transferred, by advance payment or reimbursement, all or any part, as determined by the Secretary, of the funds available

for administrative expenses in the performance of such functions. The funds so transferred shall be expended only for the purpose for which appropriated or made available.

The CHAIRMAN. S. 1322 undertakes to provide a plan for a Federal charter for the Commodity Credit Corporation.

The measure has the approval of the Department of Agriculture, and Mr. Dodd, the Under Secretary of the Department of Agriculture, is here and will make a statement in support of the program. Mr. Dodd, how long has this Commodity Credit Corporation been in existence?

STATEMENTS OF N. E. DODD, UNDER SECRETARY OF AGRICULTURE;
JESSE B. GILMER, ADMINISTRATOR, PRODUCTION AND MARKET-
ING ADMINISTRATION, AND PRESIDENT, COMMODITY CREDIT
CORPORATION; AND W. CARROLL HUNTER, SOLICITOR, UNITED
STATES DEPARTMENT OF AGRICULTURE, WASHINGTON, D. C.
Mr. DODD. Since 1933, I think, Senator.
May I read the short statement I have?

The CHAIRMAN. Yes; we will be glad to have your statement. Mr. DODD. The Commodity Credit Corporation has, during its existence, played a vital role in stabilizing and protecting farm income and prices, assisting in the maintenance of balanced and adequate supplies of foods, feeds, and fibers, and facilitating their orderly distribution. It is in my opinion, essential to American agriculture that the Commodity Credit Corporation be continued as a Federal agency with flexible authority to meet problems as they arise.

Bill S. 1322 which has been introduced by Senator Capper and which is being considered by this committee, is designed to grant the Corporation a Federal charter. We recommend the proposed bill and believe it will furnish the Corporation with necessary basic authority.

The present Corporation was incorporate in 1933 under the laws of the State of Delaware, pursuant to an Executive order issued by the President under the authority vested in him by the National Industrial Recovery Act of 1933. It originally was operated as an affiliate of the Reconstruction Finance Corporation, but it was transferred to the Department of Agriculture in 1939 and was placed under the general direction and supervision of the Secretary.

The CHAIRMAN. The Reconstruction Finance Corporation is still in operation?

Mr. DODD. Oh, yes; and I understand they either have completed or have just about completed their hearings on a Federal charter. I think they have a Federal charter at this time.

The CHAIRMAN. The position of both these agencies on the Commodity Credit Corporation is that it more properly belongs in agriculture.

Mr. DODD. In agriculture.

The Reconstruction Finance Corporation has to do with industry, business, railroads, and what have you, and the Commodity Credit Corporation which deals with agricultural problems was transferred to the Department of Agriculture in order to facilitate the coordination and integration of all farm programs of the Government.

The Corporation's stock is owned by the United States and the rights arising out of the ownership of the stock are exercised by the secretary.

The Corporation under its present charter is authorized, among other things, to engage in buying, selling, lending, and other activities with respect to agricultural commodities, products thereof, and related facilities.

Acts of Congress have ratified the Delaware charter and continued the Corporation as an agency of the United States until June 30, 1948. Congress has also assigned specific responsibilities to the Corporation, and has prescribed policies and established limitation with respect to various phases of its activities.

Congress specifically directed the Corporation to carry out certain operations, such as the price support program.

Senator YOUNG. There are so many statements in the press, so many statements by columnists, to the effect that the Commodity Credit Corporation is, for instance, supporting the price of wheat at the present.

None less than Mr. Mark Sullivan, in a column last week, made that statement.

In the case of wheat the facts are just the opposite. The price of wheat is held down by two methods:

By the limitation of foreign allocations and by this 150,000,000 bushels of material conservation.

Mr. DODD. There is no question about that.

If you went clear back to the beginning of the production of the 1947 crop, Senator Young, you might say that wheat was supported by the Commodity Credit Corporation.

Before you planted last year, you had assurance that if nobody else would buy your wheat, you could get $1.94 for it from the Government; is that not true?

Senator YOUNG. That is right; yes.

Mr. DODD. This fall we knew, for instance, we wanted a pretty good acreage of fall wheat planted. Lots of farmers said, "What is the price going to be? Is it going to crash?"

The fact that you had a support program at 90 percent of parity assured them the price was going to be about $1.85 or $1.90 for the harvest next year.

I think you can compare the United States farm production and the production in other countries such as Canada to the north of us and Argentina to the south of us.

Their production has been gradually going down. Their farmers have less acres and less yield, while in the United States our production has been going on.

Senator THYE. An important reason why you have had that increased production is that the increased acreages were planted or held at a high level because of the assurance that farmers would receive parity. The wheat situation today would otherwise have been more critical by far because there would not have been the number of acres planted if this safety measure to the producer had been lacking. Mr. DODD. You are right.

I suppose theoretically you could say that the price of wheat was supported by the Commodity Credit Corporation,