The Madison journal. (Tallulah, Madison Parish, La.) 1888-current, 1920-06-19

1T AUTHORIZES FORMATION OF
ASSOCIATIONS FOR coLLEc-
TIVE MARKETING.
DIVIDENDS TO Be LIMITED
Secretary OF Agriculture Given Power
10 Keep These Organizations From
Exploiting the Public-House Com
mittee FaVors Measure
ey JAMES p. HoRNApAY.

ey JAMES p. HoRNADAY.
Washingt0n.-The house committee
OF the judiciary has recommended the
passage Of bin 10 authorize the
producers Of agricultural products 70
form associations for the purpose ~
collectively preparing for market and
marketing their products. Section
defines and limits the kind Of associa-
tiCns 10 which the legislation applies.
These Limitations are aimed 70 exclude
from the benefits Of this legislation all
hut actual farmers and all associations
not operated for the mutual help Of
their members as such producers. In
less each member has but one vote
In his association, Irrespective Of the
amount he may have invested rs cap
ital therein. the association must not
paw dlvideHs of 70 exceed per
cent per annum This Limitation Of
g Per cent IS designed TO compel pay
ment 10 the members Of as large a
part Of the proceeds derived from the
sole 81 their products as possible. in
stead Of paying II as Il dividend upon
the money used rs 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 dlvlderes.
Eight per cent was fixed for the
reason that I'm many places money
cannot be borrowed at n less rate,
and that hence less rate would pre-
vent some Of these associations from
obtaining the necessary funds 10 carry
on their business. The aim has been
"a make the provisions Of the bill suf-
tive farm associations operated In
good faith for the benefit Of members
might avail themselves Of the provi-
siOns Of the hill. The bill does not.
however. compel the association to
change its present organization nor
does II create any new organizations.
Associations will be formed under
state laws as heretofore
Protection for the Public. I
Section makes Applicable 10 these
associations I'm modified form the
provisions Of the Clayton act. Briefly,
II gives the secretary of agriculture
power 10 prevent these associations
from exploiting the public Tn the
event that any association should re-
fuse 10 comply with the order of the
secretary n suit may he brought I'm
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 he given n fair opportunity
So meet business conditions as they ex-
ist-a condition that is very unfair
under the present law.
The Judiciary committee says that
whenever farmer seeks 10 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.
thing to say about the price. II he
seeks 10 associate himself with his
neighbors. for the purpose Of collective
ly negotiating for 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
one person. The officers of the cor
poration act as agents of these men,
bers. This bill. II II becomes n law,
will allow farmers to form like as
sociations the officers Of which will
act as agents for their members.
Not Class Legislation.
The committee also SAYS that while
this bill confers on farmers certain
privileges. II cannot properly he said
10 he class legislation. says the COM
mittee. Business corporations have
under existing law all the powers and
privileges sought TO he conferred on
farm organizations by this hill. In
stead of granting class privilege. II
aims to equalize existing privileges nv
changing the law applicable to the or
binary business corporations so the
farmers can take advantage OF IL. In
stead Of granting to farmers a special
privilege. II aims to take from the
business corporations n special priv
l'ege by comforting like privilege on
farm organizations.
New York. Pennsylvania. Illinois.
Minnesota and number
NJ other states have granted the right
to form associations such as those
in this hill. But these |
sfates cannot confer any right upon
their organizations to engage In in
ferstate or foreign commerce. This !
bill Is designed to grant that right.
Our New Merchant Marine.
May first the shipping board feet
of 1850 vessels. of which
l.oo2 vessels were steel cargo steam
ers. In addition, there were building
or under contract 403 steamers.
The board has established 1871 reru- |
ar shipping lines connecting American |
ports with practically all the primary |
md many Of the secondary markets Of
he world. These routes employ 515
steamers Of practically 100000 tons. !
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