New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1920-06-04
BILL FOR FARMER
MAY Be PASSED
1T AUTHORIZES FORMATION OF
ASSOCIATIONS FOR coLLEc-
TIVE MARKETING.
DIVIDENDS TO BE LIMITED
Secretary Of Agriculture Given Power
to Keep These Organizations From
Exploiting the PubIic-House Com
mittee Favors Measure.
BY M p. HoRNApAv.

BY JAMES p. H~ORNADAY.
Washington.-The house committee
or the judiciary has recommended the
passage of n bill to authorize the
producers OF agricultural products t.
form associations for the purpose OF
collectively preparing for market and
marketing their products. Section |
defines and limits the kind of assOcia.
lions to which the legislation applies
These limitations are aimed TO exclude
from the benefits of this legislation all
but actual farmers and all associations
not operated for the mutual help of
their members as such producers. I'm
less each member has hut one vote
In his association, Irrespective of the
amount he may have invested as cap
itai therein. the association must not
pay a dividend of to exceed 8 per
cent per nnnum. This limitation of
3 Per cent is designed to compel pay-
ment TO the members of ms large a
part of he proceeds derived from the
sale OF their products ms possible. in
stead OF paying II as n dividend upon
the money used as capital. A number
Of farm associations oppose the pny-
mpnt Of any dividend on capital. while
others Insist that they need n capital
and must have the privilege of pay
ing dividends.
Eight per cent was fixed for the
renSon that In many places none
cannot he borrowed at a less rate,
and that hence n less rate would pre-
vent some Of these associations from
obtaining the necessary funds to carry
on their business. The aim has been
To make the provisions Of the hill suf-
~ficiently liberal so that all co-opera-
tive farm associations operated In
good faith for the benefit Of members
might avail themselves Of the provi-
siOns Of the bill. The bill does not,
however, compel the association to
change IFS present organization nor
does II create any new organizations.
Associations will he formed under
state laws M heretofore.
Protection for the Public.
Section . makes applicable to these
associations in n modified form the
provisions Of the Clayton act. Briefly,
II gives the secretary of agriculture
power to prevent these associations
from exploiting the public. In the
event that any association should re-
ftis" TO comply with the order of the
secretary. n suit may be brought In
the appropriate district court to en-
force his order. The farmers say
they are not asking q chance to op-
press the public. hut insist that they
should he given n fair opportunity
70 meet business conditions ms they ex-
lst-a condition that Is very unfair
under the present law.
The Judiciary committee says that
whenever n farmer seeks 10 sell his
products he meets In the market place
the representatives Of vast aggregn-
IONS of organized capital that largely
determine the price Of his products.
he has very little n any.
hing to say about the price. n he
seeks to associate himself with his
for The purpose Of collective
" negotiating for n fair price he is
threatened with prosecution. Many Of
corporations with which he Is com
10 deal are ench composed of
from 10000 10 40.OOO members. These
members collectively do business as
one person. The officers Of the cor
noration act ms agents Of these MEM
hers. This bill. II II becomes n law.
will allow farmers to form like as-
soclntIons. the officers OF which will
,ct as agents for their members.
Not Class Legislation.
The committee also says that while
his bill confers on farmers certain
privileges. 1t cannot properly he said
he class legislation. says the COM
"Business corporations have
indcr existing law nli the powers and
sought 70 he conferred on
arm organizations by this hill. In
tend Of granting n class privilege. II
inns 70 equniIze existing privileges nv
hanging the law applicable to the or
Iinnry business corporations so the
armers can take advantage Of II. In A.,
tead Of granting to farmers n special
.'rivilece. II aims 10 take from the A.,
.rsiness corporations n special priv /
iege Ivy comforting n like privilege on $
arm organizations. f,
New York. Pennsylvania. Illinois. a
Wisconsin. Minnesota and a number 7
{ other states have granted the right /;
n form associations such ms those .
In this hill. But these 4
fnfes ann confer any right upon 1,
heir organizations to engage In In r
or foreign commerce. This .
III is designed to grant that right. N
Our New Merchant Marine. $
MAY first the shipping board feet p
insisted Of 1.cS0 vessels. Of which n
.052 vessels were steel cargo steam h
RS. In addition. there were building e
r under contract 403 steamers. u
The board has established 131 regu- a
n shipping lines connecting American p
DrtT with practically all the primary v
many of the secondary markets Of "A
le world. These routes employ SIS
eamers Of practically 4.OOO.OO tons.
about half the fleet. the other half n