Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-28
LAW STUDY MADE
BY COTTON GROUP
Corporations Legal StruC-
ture Before Representatives
Making Market Plan.
BY the Associated Press.

BY the Associated Press.
Development of an alright legal
structure for the $4,000 900 cotton
corporation was the chief task of the
Federal Farm Board and cotton repre-
sentatives as they went forward today
with the mai draft OF charter and
bylaws.
Frank Burford of Oklahoma CITY.
counsel for the national organization
committee, and Stanley Reed, general
counsel Of the board, were to confer on
program that would comply with pro-
visions of the Capper- Volstead act and
report to the subcommittee preparing
the draft Members said the board
was substantially in accord on the
aims of the corporation, but that a
number OF highly technical questions
OF organization and operation were yet
to be settled.
A summary of the more intricate fea-
lures. was outlined by Carl Williams,
board member, representing cotton.
Can Buy Outright.
Heretofore, he said, co-operatives
nave been authorized to pay their men,
Ders only a certain per cent of the
value OF their crop when delivered. the
remainder being paid when the COM
modify moved into market channels,
Now. 1t has been proposed that a ma
tionai marketing agency be set up to
buy the product outright If so desired.
Such procedure was authorized bv the
agricultural marketing act and it now
mas become important to work out a
program that will not conflict with
State laws.
| Another question, he said, is whether
the national agency is to be q sales
corporation and sterilization corpo-
ration In one, or whether they are to
pc separate entities. Little mention has
| been made OF sterilization CORPORA
ton. It is that body, financed entirely
by the Government, which would take
over whatever part Of q commodity the
market branch could not sell. The
sales corporation. for which the Gov
eminent would guarantee a capital Of
$3O,OOO,OOO, would be financed by menu
Der co-operattves through purchases Of
stock. The agricultural marketing act
prescribed that the sterilization cor
poration be kept in the background and
inactive unless the assistance was ne
cesSitated by an emergency.
Stock at 81 Bale.
1t has been proposed, Williams said.
That all cotton co-operatives become
members. of the National Marketing
| corporation, each subscribing for stock
on the basis of 81 for each bale handled
this year. Co-operativeS handled an
proximately $1,250,O0O bales, or aboilt
10 per cent Of the 1929 crop. At that
rate, he pointed out, the corporation
could start operation with a paid-ir
capital Of $1,250,000. Unlike the CO.
operatives as they now exist, the cor
poratlon would be permitted to handle
the product OF on-members in a GUAM
| tity equal tc the amount handled for
members, theoretically giving the cor
poration 20 per cent Of the total cotton
crop in its first year of operation.
5. L. Morley of Oklahoma City, chair
man OF the subcommittee, said that
while the conference with the board
may last from a week to 10 DAYS he
believed the path fairly clear of OBJ
stacles other than those which might
temporarily rise in connection with
legal problems. He asserted the cor
poration would be operating in time to
handle the 1880 crop.