Omaha daily bee., 1922-02-09

Bill Passed
Senate
COOPERATIVE Measure Placing
Control Of Associations With
Secretary of Asricul.
iurc Approved.
Victory for Farm Bloc

Washington. Feb. S,-The hou~
cooperative bill. designed 10 aid the
agricultural interests and pressed hy
the farmer bloc, was passed by the
senate late today.
Only one vote, that oi Senator
Gerry, democrat, Rhode Island. VA,
cast against the measure. Two othet
senator's, Brandeaer. republican
Connecticut. and King. democrat
Utah. were paired against the meas
ure aud withheld their votes.
The vote was 5s TO aud the sen.
ste's action was regarded by soms
as the most sweeping Of the vie.
tories yet attained by the farm bloc
since. in accepting the house bill, th.
senate OVERRIDE its own judiciary
committee which had reported
substitute measure. The substitute
was defeated 50 TO 4. The bill now
goes TO conference.
As passed by tho senate, the bill
retains the provisions which relieve
the cooperative associations from
the application OF the law prohibit
ing trusts or unfair business prac-
tiees, placing the authority 10 deter
mine when such acts have been
committed with the secretary OF
agriculture. The senate substitute
would have made the associations
amcndable 10 the present laws and
It was around this point that debate
reyolycd.
Norris Defends Bill.
During the close hours OF debate,
reference was made to the bloc's
power. This brought from Senator
Norris. republican, Nebraska. the
statement that he had heard the bill
had administrative support.
1T is the first time in many, many
months that the majority has come
over to my side" he added. at
happens so almighty seldom that |
feel ] must make note Of it. Maybe
the administration is behind this bill.
If it is so, then ] am glad they have
come over into the same wagon with
me, Whether they came because OF
ME or in spite of me, do not know,
but | welcome them here"
The bill was introduced simul-
taneously in the house and senate
last April. 1t was soon acted on by
the house, but when it reached the
senate it lay in committee several
months. More delay came after it
was reported out.
The most important amendment
accepted by the senate was one pro-
viding that the associations shall
not deal in products Of nonmem-
bers to an amount greater in value
than such as are handled by it for
members"
Prohibits Closed Corporations.
This, it was alleged, makes it in1
possible for cooperative associations
to be Stolen" by group of in
dividuals who merely by declining
to admit new members, resolve them
selves into closed corporation.
Without the amendment the group
would be able. according to senator's.
to engage in competitive trade. The
lliiiilS di'y doSONidtloll ~
the handling of the commodities OF
nonmembers SO that what was de-
scribed as a throttle of local busi-
ness could not be obtained
Other important provisions pre-
scribe that no member of all asso-
ciation lfss:5- Saxe more than one vote
in directing its ac.uities, regardless
OF the amount of stock he holds. nor
can any association pay dividends on
stock or membership carasal in ex-
cess Of 8 per cent year.
With respect to the authority
granted the secretary of agriculture
to control attempts to ,monopolize
or restrain trade. the bill provides
that notice of charges of alleged
violations must be served on the of
tending association and it must be
given an opportunity to defend it
self If found guilty, the secretary
may order the association to cease
and desist" and in event OF its fail
ure to do so, the case then may be
referred to the federal courts for en-
forcement of the order.