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the general fund of the Treasury Department as required by the statutes relating to the disposition of effects and unpaid wages of deceased seamen on American vessels, it appearing that each of the German nationals referred to lost his life while in the service of the American merchant marine, and asking that I indicate whether the action proposed in the report is in harmony with the financial policy of the President.

In reply I have to advise you that the proposed request for legislation authorizing an appropriation of $461.59 for the purpose stated is not in conflict with the financial program of the President. Sincerely yours,


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DECEMBER 19, 1927.-Ordered to be printed



SD—70-1—vol 24—20


AN ACT To amend the act prohibiting agreements in restraint of trade (com

monly called the Sherman Antitrust Act); to authorize the actual producers of farm products, livestock, and livestock products to fix a reasonable price upon the sale of commodities produced by them; and to impose a tax on certain sales under the conditions hereinafter provided.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled:

SECTION 1. In the manner and under the conditions hereinafter stated actual farmers and stock raisers may fix on any crop or farm produce, livestock or product thereof, produced by them a fair and reasonable price upon the sale of the same.

Sec. 2. A fair and reasonable price is hereby declared to be such price upon any such crop, or farm product, livestock or product thereof, of average standard quality as will pay the cost of production of the same under average conditions as to efficiency of management and operation, suitability of soil, climate, and environment; such cost of production to include the labor of such farmer or livestock producer or of any member of his family to the extent in which the same shall enter into the production of such product, together with all other costs of such production under such average conditions; and it shall also include an allowance for interest at 6 per cent per annum upon the average value of land of average quality suitable for the production of such commodity and upon the average value of the equipment of buildings, machinery, livestock, etc., reasonably necessary for the production of such commodity, together with the cost of transportation of such commodity from the place of production to the most available market, together with a reasonable allowance for estimated average loss by depreciation of buildings, stock, machinery, and other equipment used in the production of such commodity or in case of a tenant farmer, a fair average rental shall be included in the cost of production.

SEC. 3. In order to enable actual farmers and stock raisers to exercise the privileges conferred by this act, they are hereby permitted to form a corporation to be called "National Farm Crop Marketing Corporation,” for which a national Federal franchise is hereby granted. The said corporation shall have power to appoint an agent in each of the following cities: Seattle, Tacoma, Portland (Oregon), San Francisco, Los Angeles, Spokane, Denver, Phoenix, Helena, Cheyenne, Albuquerque, Bismarck, Sioux Falls, Omaha, Topeka, Guthrie, Dallas, Minneapolis, Des Moines, Kansas City (Missouri), Little Rock, New Orleans, Milwaukee, Chicago, Detroit, Indianapolis, Louisville, Memphis, Jackson, Birmingham, Cleveland, Wheeling, Pittsburgh, Philadelphia, Buffalo, New York, Boston, Baltimore, Richmond, Charlotte, Charleston (South Carolina), Atlanta, Jacksonville. Every such agent shall have power, subject to the rules and directions of the national farm crop, marketing corporation, when it is deemed advisable by him or by said corporation, to fix a reasonable price in accordance with the provisions of this act, which shall be the minimum price to be considered as such reasonable price in the city in which said agent is located or in any market in the vicinity of the said city to any actual farmer or stock raiser for such crop or farm product, livestock or product thereof, produced by bim upon which the said reasonable price may be fixed. Each of said agents shall be paid a salary of $10,000 per annum.

SEC. 4. The national farm crop marketing corporation may be organized in such form, consistent with the terms of this act, as the farmers and stock raisers of the United States may determine, by means of a national convention, or through the agency of existing farm organizations, or of a committee to which a delegate may be appointed by a convention of farmers in each State, or by such other means as they may elect.

Sec. 5. In addition to the powers hereinbefore provided, it shall be the duty of the national farm crop marketing corporation and of its agents to aid actual farmers and stock raisers in the sale of their crops and products by way of information as to supply and demand in various markets, study and advice as to the best method and place of marketing their crops and products, and especially as to the storage, preservation, and other disposition of any surplus production thereof.

SEC. 6. Before said corporation shall have power to act, it shall file with the Secretary of Agriculture a copy of its articles of incorporation, constitution, and by-laws, if any, together with a list of its officials, and shall receive the approval of the Secretary of Agriculture and a written statement to that effect.

Sec. 7. Any person, agent, corporation, dealer, or other individual who shall purchase from any actual farmer or stock raiser any crop, farm product, livestock, or product thereof, for a less price than a reasonable price as defined in this act and fixed in pursuance thereof, in such place where such purchase shall be made, shall pay to the United States Government an excise tax on such purchase and sale equal to double the amount of the difference between the price so paid and the reasonable price so fixed. This tax shall be collected in each State by the United States collector of internal revenue for that State.

SEC. 8. An appropriation of $2,000,000 a year to be expended under the direction of the Secretary of Agriculture in aid of the national farm crop marketing corporation in the performance of the duties and the exercise of the powers provided by this act is hereby authorized.

Sec. 9. The corporation to be formed under this act shall have no stock. It shall not engage in business for profit and it shall own no property except such as may be reasonably necessary for the efficient exercise of the powers conferred upon it by this act. For that purpose only it may acquire and hold title to real and personal estate. It shall be organized in such form and manner consistent with the terms of this act as shall be determined by the actual producers of farm products acting through a convention or committee as herein suggested or in such other manner or by such other agency as may be determined. It shall be empowered to hold and expend for the purposes defined in this act such funds as may be contributed to it by the Federal Government or from any other source and it may raise funds for the prosecution of its work by membership fees and assessment upon its members as may be provided in its constitution or bylaws. The qualification of members shall be declared in the by-laws.

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