Evening star., 1927-02-25

| ttle method Oh cOHCCtlUn ana ufSpDSI-
ton of these great sums OF money are
to be detarmints by the board with
out any effective check or review from
! the Executive or Congress- delega-
| tion OF powers under which our form
! of Government cannot continue.
No time limit is placed upon the
| contracts which The board may make.
| Such contracts might easily he for q
term of years ana in some commodi.
| ties. as, for example, cotton at the
| present time. must necessarily be for
IL considerable period since the surplus
| cannot he disposed of in single
Tear. During the continuance of any
such contract. the equalization fee
| must continue TO he levied unless the
whole burden of continuing opera
zion is tn be borne by the producers
of the first crop. Consequently thu.
suggestion often made that the scheme
should be tried, and If it fails be re-
| pealed. loses al force. This sugees-
tion is FAULTY in another respect,
| namely, that failure would be demon
strated only bv the accumulation of
huge surplus in storage. The diston.
tinuance Of operations. while vast
supply remained in storage. would re-
| suit in Il prolonged depression Of price
| through the surplus being fed, into
the markets or through fear of it's
| sale
Fails to Restrict Contracts.
| "While the bill authorizes an appro-
priation of $259,000 600. it fails to re-
| strict the contracts of the board with
| IN that sum and nowhere denies the
liability of the United States for addi-
| tlonal sums of money. If the board
had begun operating in the 1925 cot
| ton crop when prices were around 90
| nt,f - 4 4.
to held up the price on the 1926 crop
at level which induced the picking
of the whole crop. the whole $3.50. 900
| 600 would have been spent and great
| commitments beyond that figure have
been entered into. The ALLEGATION of
S100. .O00. 900 to cotton in last years
bill, plus the suggested fee of IS a
bale. would have been completely ex-
h8usted long before the 1926 crop
| came into the market. @ And, if the
| equalization fee should prove uncon-
stitutional or otherwise uncOlectible
| the Treasury would have been com
mitted by contracts to a liability to
the extent of the whole revolving
fund.
Apart from the necessity of con-
tracing with the packers, the bill con
fers upon the board unlimited power
as to the nature, extent and dura ton
Of contracts with other professors.
1t does not even enjoin an absence of
"unrea soma BILE" discrimination be-
tween them. although it does prohibit
unreasonable discrimination be-
tween co-operatives. The board would
therefore possess an absolute power
Of life and death over many legitimate
business" organizations, since none
could compete against professor en-
loving a contract with the board pro-
tecting ii against loss. The board
could so unlimitedly into processing
for it's own account. If 1t so desired.
No such unrestricted powers have ever
been conferred upon any board.
THE insurance proposal amounts to
a straight Government agreement to
pay to the cooperative associations
any loss which they may inctir in with
holding commodities from the market,
no matter how high the price may go
in the meantime. For example.
wheat cooperative may. in year of
shortage, take wheat from member
on a day when 1t is selling at $3.50
bushel Under this bill it may decide
to hold 1t for 50, but be insured that
il the market breaks the Government
viii pay it the difference between $3.50
and the price at which the co-opera-
tive actually disp0ses of the wheat.
Nothing more destructive of all or
OCTlE PROGRESSES VI tTdue COulu UG
agined, and nothing more unfair to
the non-member OF the cooperative,
since his equalization fee would be
used to pay the losses.
Let us see how the bill is to be put
into operation. This act provides that
before operations as to any one of
these commodities shall begin it shall
be necessary to obtain an expression
from the producers Of the commodity
through State convention of such
producers. This applies in any State
where not so many as so per cent of
the producers of the particular COM
modify are members Of cooperative
associations or other organizations.
The best estimate that can be made
is that this would apply to every State
in the Union. 1 quote from the Record
with reference to this provision to
show that this construction was given
| to 1t. The Congressional Record Of
February II, page 1902, reads as fol.
| lows:
MIR. McKellar. Immediately fol.
lowing that amendment 1 offer an.
other amendment on behalf of the
senior Senator from North Carolina
| (Mr. Simmons) =, a. .
1.-The Vice President The amend.
ment will be stated.
The Chief Clerk On page s, line
| 10, after the word Commodity" insert
the following previso:
"''Provided, That in any State
| where not az many as so per cent of the
| producers OF the commodity are mem.
bers Of such cooperative associations
or other organizations, an expression
| from the producers of the commodity
shall be obtained through State con-
| ventiOn OF such producers, to be called
by the head OF the Department of
Agriculture Of such State, under rules
and regulations prescribed by him."
Reed. .Mckellar Debate Cited.
"'Mr. Reed Of Missouri Mr.. Presi.
| dent, will the rules permit an inquiry
of the Senator from Tennessee at this
point? Does the last amendment read
| fix 1t 80 that IL less than a majority
| are in favor of the scheme it may be
adopted? Is 1t planned to call State
| convention, a minority of which may
| be able to accomplish the result de-
| sired?
| "'Mr. McKellar. No.
"'Ms. Reed Of Missouri. Then what
| does 1t mean?
"'Mr. McKellar. 1t means exactly
what il says, that such convention
shall pass on it before it is put into
| operation. Page 3605.
Mr.. McKellar: I offer an amend
| ment on behalf Of the senior Senator
from North Carolina (Mr. simmons).
1.-THE Vice President. The clerk
will state the amendment. amend
ment repeatedly
| "'Mr. Reed of Missouri. Mr.. Presi.
dent, do not desire to delay the
| Senate, but I ask for q record vote on
these important amendments. / call
| for the yeas and nays.