The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1929-07-25
FARM RELIEF
DIGEST SHOWS
POINTS OF ACT
Federal Board Given Full
Powers; Emphasis Laid on
Cooperative Associations by
Commodities

have a concise impression of the
recently passed federal Agricultur-
al Marketing act, enbodying the
movement for farm relief, we have
made the following digest of an
analysis of the act put out By a
subcommittee of the federal farm
board. Editors note.
One of the most noticeable fea-
lures of the Agricultural Market
ing act is the many safeguards
that have been placed around all
provisions to keep the entire oper-
alton within the federal farm board
itself. All the activities are fully
protected by the words ''in the
Judgment Of the board" or words
of the same effect.
The board will be composed Of
eight members, with the Secretary
of Agriculture an ex-officio MEM
ber. The policies Of the board are
stated as follows: To minimize
speculation by preventing ineffic-
fient and wasteful methods Of distri-
button, by encouraging the organ
ization Of producers into effective
associations under their own con-
troll, and by promoting and finan-
cling producer owned and producer
controlled cooperative associations.
1t is provided that the board
shall invite cooperatives handling
any agricultural commodity b
form an advisory committee Of sew
en- experienced handlers or pro-
cessors Of the given commodity, to
meet twice year.
Foster Education
The farm board has been given
power to promote education in the
principles and practices of cooper
atives, encourage organization and
improvement in the methods and
development of effective cooper
atives. It also has power to investi-
gate conditions of over-production
of agricultural commodities and 20
advise as to prevention.
Under certain rule, the board
can loan to cooperatives for build
ings and other work of organiza-
tion nature. Before loans can be
made, it must be shown that the
cooperative has an organization
management and business policy
of such character as to insure the
reasonable safety of the loan and
the furtherance of such a policy.
These loans must be made only
when existing facilities are not
adequate, and will not be made in
excess of 80 per cent of the value
of the property. Interest rates will
be between three and half and
four per cent.
Corporations Planned
StabiIization corporations shall be
formed upon application of the ad-
visory committee OF commodity
if the board finds that the market
ing situation makes it necessary.
These stabilization corporations
will be organized under the cor
poration laws of the state, and the
stock viii be owned only by the.
cooperative associations handling
the commodity. The corporation
will act as a marketing agency for
its members in all different mar
keting activities.
When the board finds that any
commodity is not organized into
cooperative associations so extern
sively as to render such assistance
as is desirable, then such assist
ance may be available to other as
sociations and corporations, pro-
ducer owned and controlled.
No Speculation
No board member or employee is
allowed to speculate Hrectly or IN
directly in any agricultural COM
modify or contract relating to it.
The punishment for infringement
of this rule is fine and imprison-
ment.
The subcommittee believes it was
the apparent intention that groups
of growers should be permitted to
organize themselves together Coz
operatively for assembling, grad
ing and packing, or for any one of
these or other similar activities,
and then employ for distribution
the present commercial distribute
ing organizations, without having
to employ manager to handle the
distribution. The subcommittee con-
siders this desirable, though it has
not in the past been regarded as
rnor,orofsxza