Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 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 PubIc-House Com
mittee Favors Measure
By JAMES p. HoRNADAY.

l. tHlIISc FdNOFS measure.
BY JAMES P. HoRNADAY.
Washington,-Th house committee
| or the judiciary has recommended the
| passage of bill to authorize the
| producers of agricultural products to
form associations for the purpose of
| collectively preparing for market and
marketing their products. Section /
| defines and limits the kind of associa-
tons 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 but one vote
! In his association, irrespective of the
amount he may have invested as cap-
! ital therein, the association must not
cent per annum. This limitation of
3 Per cent is designed to compel pay
| ment to the members of as large a
! part of the proceeds derived from the
sale Of their products as possible, in
stead of paying it as dividend upon
the money used as capital. A number
of farm associations oppose the pay
ment of any dividend on capital, while
others insist that they need capital
and must have the privilege of pay
| ing dividends.
Eight per cent was fixed for the
reason that in many places money
cannot be borrowed at less rate,
and that hence a 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 bill 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 it's present organization nor
does it create any new organizations.
Associations will be formed under
state laws as heretofore.
Protection for the Public.
Section 2 makes applicable to these
associations in a modified form the
provisions of the Clayton act. Briefly,
1t gives the secretary Of agriculture
power to prevent these associations
| from exploiting the public. In the
event that any association should re-
| fuse to comply with the order of the
secretary, a suit may be brought in
| the appropriate district court to en-
force his order. The farmers say
,, they are not asking chance to OPP
press the public. but insist that they
should be given fair opportunity
| 10 meet business conditions ais they ex-
| ist-a condition that is very unfair
under the present law.
The judiciary committee says that
whenever a farmer seeks to sell his
products he meets in the market place
| the representatives of vast aggrega-
| tons of organized capital that largely
determine the price of his products.
Personally he has very little if any,
thing to say about the price. If he
seeks to associate himself with his
neighbors for the purpose of collective
| ly negotiating for a fair price he is
| threatened with prosecution. Many of
| the corporations with which he is COM
PEELED to deal are each composed of
| from 10000 to 10000 members. These
members collectively do business as
zone person The officers of the cor
poration act as agents of these mem
| bers. This bill, if it becomes law,
will allow farmers to form like as
sociations, the officers of which will
act as agents for their members.
Not Glass Legislation.
The committee also says that while
| this bifl confers on farmers certain
privileges, it cannot properly be said
to be class legislation, says the COM
mittee. Business corporations have
under existing law all the powers and
privileges sought to be conferred on
farm organizations by this bill. In
stead Of granting class privilege, it
aims to equalize existing privileges by
changing the law applicable to the or
| binary business corporations so the
| farmers can take advantage of it. In
stead of granting to farmers a special
| privilege, it aims to take from the
business corporations a special priv
| iIege by comforting a like privilege on
farm organizations.
| New York, Pennsylvania, Illinois.
| Wisconsin, Minnesota and number
| Of other states have granted the right
| TO form associations such as those
| contemplated in this bill. But these
states cannot confer any right upon
| their organizations to engage in in
| terstate or foreign commerce This
bill is designed to grant that right
Our New Merchant Marine.
May first the shipping board fleet
consisted of 1850 vessels, of which
| 1852 vessels were steel cargo steam
ers. In addition, there were building
or under contract 4O3 steamers.
| The board has established III regu-
lar shipping lines connecting American
ports with practically all the primary
| and many of the secondary markets of
| the world These routes employ 5l5
/ Ix- fnnS