The enforcement of a license depends to a large extent upon the committee operating in full compliance with the provisions of the license. In some instances committees have disregarded this principle and have thus made it impossible for the Administration to enforce committee actions because these have been taken outside of the authorization of the license or have been invalidated by failure to adhere to the provisions of the license. The degree of voluntary compliance with the provisions of agreements and licenses has been satisfactory and has greatly contributed to their effective operation. A number of agreements have been operated throughout an entire season without a single request for enforcement by the Administration. This cooperation can be attributed largely to a realization by all concerned that a marketing agreement and license provide a practical method for improving prices to producers and for handling other problems common to all individuals. The principle of endeavoring to secure compliance rather than to punish violators has been followed with distinct success. ENFORCEMENT UNDER LICENSE PROVISIONS The most common method of enforcement which has been followed has been that of administrative enforcement under the license provision of the Adjustment Act. This involves the issuance of an order to show cause why the license of an alleged violator should not be revoked, a hearing by a representative of the Secretary at which the alleged violator is given every opportunity to defend his actions, and a subsequent finding and order by the Secretary in accordance with the record of the hearing. Up to December 31, 38 orders to show cause have been issued. Hearings have been held in 33 cases. Twelve are now awaiting decision by the Secretary. Of the balance, 8 licenses have been revoked, 5 suspended, and 3 licensees have been found guilty of serious violation and excluded from a subsequent license. Charges have been dismissed in 4 cases and action has been withheld in 3 instances on assurance of compliance. Compliance has also been secured in two cases through court injunctions. V. CODES OF FAIR COMPETITION Four codes of fair competition relating to general crops are now in effect. The fair trade practice provisions of these codes are under the supervision of the Agricultural Adjustment Administration. Other provisions of the codes, such as wages, hours of labor, and budget assessments, are under the supervision of the National Recovery Administration. FRUIT AND VEGETABLE CODE The code of fair competition for the fresh fruit and vegetable industry became effective July 16, 1933. It contains fair trade practice and credit provisions for the distribution of fresh fruits and vegetables throughout the country. Approximately 20,000 firms are affected by the code which offers a means of preventing disastrous price wars in the fruit and vegetable industry, and supplements the more direct influence of marketing agreements. CODE FOR ANTI-HOG-CHOLERA SERUM AND VIRUS INDUSTRY The code of the producers of anti-hog-cholera serum and hog-cholera virus became effective March 6, 1934, and affects about 50 producing concerns in an industry whose whole business is valued at approximately $10,000,000 per annum. Serum and virus are manufactured under licenses issued by the United States Department of Agriculture, because the vaccines were a discovery of the Department. The code is designed to prevent destructive price wars which have been prevalent in the industry, and to provide consumers with adequate supplies of serum and virus during hog-cholera epidemics. COMMERCIAL BREEDER-HATCHERY CODE The commercial breeder and hatchery code became effective December 27, 1933, and affects about 13,500 hatcheries in the United States. It contains provisions prohibiting unfair trade practices such as destructive price cutting, misrepresentation of products, and false advertising. Since the code has been in operation, improvement in the price situation, quality of produce, and reliability of hatchery output, have been effected. NEW YORK LIVE-POULTRY CODE Undesirable trade practices which have been experienced by the live-poultry industry of New York City, have been handled under the New York live-poultry code which became effective April 23, 1934. While this code has been in operation only 8 months, it has effected savings of approximately $252,000 to shippers of live poultry through the reduction of coop and cartage charges. It has also brought about an appreciably greater degree of stability in the live-poultry market in this area. PROPOSED NORTHEASTERN LIVE-POULTRY CODE On December 5, 1934, a public hearing was held in New York to discuss a proposed code for the live-poultry industry in the State of New Jersey and the metropolitan areas of Philadelphia, Boston, and Providence. This proposed code contains provisions similar to those in the New York live-poultry code. CHAPTER 14 COMMODITY LOANS SALIENT FACTS ABOUT COMMODITY LOANS 1. Loans disbursed on cotton direct by Commodity Credit Corpora tion up to Dec. 31, 1934: Disbursed on 1933 cropLoans on 1934 crop repaid Disbursed on 1934 crop Loans on 1934 crop repaid 2. Approximate loans on cotton disbursed by lending agencies under Corporation's purchase guarantee: Disbursed on 1933 cotton crop.. 3. Loans disbursed on corn direct by Corporation: Disbursed under 1933 program_. 4. Approximate loans on corn disbursed by lending agencies under Corporation's purchase guarantee: Disbursed under 1933 program. 5. Loans disbursed on gum turpentine and rosin Disbursed direct by Corporation__ Disbursed by agencies under Corporation's purchase guar antee.. $99, 498, 491 88, 964, 689 15, 342, 121 98, 751 21, 000, 000 207, 901, 509 120, 493, 034 119, 949, 367 3, 576, 798 108, 196 1, 350, 000 6, 025, 901 4, 559, 752 2, 102, 301 2, 457, 451 The Commodity Credit Corporation was created under the laws of the State of Delaware on October 17, 1933, pursuant to the President's Executive order of October 16, 1933. Its entire capital stock of $3,000,000 was subscribed by the Secretary of Agriculture and the Governor of the Farm Credit Administration, who hold it jointly for and on behalf of the United States. Funds for this purpose have been made available by the President's allocation of $3,000,000 out of the $100,000,000 appropriation authorized by section 220 of the National Industrial Recovery Act, and by the Fourth Deficiency Act of the fiscal year 1933, approved June 16.8 Under its bylaws the Corporation is permitted to make loans only upon such commodities as may from time to time be designated by the President. These loans have contributed support to farm prices by enabling producers to retain title to products which might have been dumped upon the market with price-depressing effect. They have made it possible for producers themselves to gain the advantage of price increases which otherwise would have been lost to them through enforced marketing, and have contributed to orderly marketing. Under the policy established by the board of directors, loans have been made only upon commodities in connection with which adjustment or marketing programs of the Agricultural Adjustment Administration have been developed. The loan plan adopted permits banks Public No. 77, 73d Cong. and other lending agencies to carry the loans on the prescribed form of note under a purchase guarantee, the Corporation agreeing to purchase eligible producers' notes when tendered on or before a specified date, usually 30 days prior to the notes' maturity date. The loans are extended at 4 percent interest. LOANS ON 1933 COTTON CROP Loans on the 1933 cotton crop were approved October 18, 1933, on the basis of 10 cents per pound for cotton Low Middling in grade and % inch or better in staple, and 8 cents per pound for such grades with staple less than % inch. These loans originally matured July 31, 1934, but the maturity date was extended to February 1, 1935. Disbursements by the Corporation in loans to producers on 1933 crop cotton aggregated $99,498,491.26 on 1,920,759 bales. As of December 31, 1934, loans repaid aggregated $88,964,689.33 on 1,717,620 bales, leaving the outstanding loans to producers on 1933 crop cotton at $10,533,801.93 on 203,139 bales. In addition to the loans disbursed by the Commodity Credit Corporation, banks and other lending agencies made loans aggregating approximately $21,000,000 on approximately 420,000 bales. These loans were repaid direct to such lending agencies. Thus the total loans made on 1933 crop cotton aggregated approximately $120,498,491.26 on approximately 2,340,759 bales. The following statements (tables 40, 41, and 42) show the disbursements and repayment of 1933 cotton loans, by months, the number of bales of cotton pledged and released, by months, and the average monthly price for Middling %-inch cotton at New Orleans. It will be noted that the price of Middling %-inch cotton at New Orleans showed a steady advance from October 1933, the month in which the loan program began functioning; and that repayments of loans were made principally in the months in which the higher average prices obtained. This indicates that the producers, through the help of the loans, were enabled to carry their cotton through the harvesting season when comparatively low prices obtained, and to realize the benefits of the higher prices which prevailed after January 1934. TABLE 40.-Loans to cotton producers, by months 1 1 The increase in "loans disbursed" during May, June, and July is due chiefly to purchase of notes from banks and other lending agencies. TABLE 41.-Bales of cotton pledged and released, by months TABLE 42.-Average prices (New Orleans) for Middling %-inch cotton, by months LOANS ON COTTON IN PRODUCERS' POOL Loans to the manager, Cotton Producers' Pool, of 4 cents per pound on cotton held by him, were approved November 18, 1933. These loans aggregated $38,991,041.76 on 1,949,552,088 bales of cotton and were repaid in full at maturity, July 31, 1934. LOANS ON 1934 COTTON CROP On September 6, 1934, loans of 12 cents per pound on cotton Low Middling in grade and 1⁄2 inch or better in staple, and 11 cents per pound on such grades of cotton with staple below % inch were approved. As of December 31, 1934, advices received indicated that loans made aggregated $223,243,631.09 on 3,643,354 bales of cotton. Of this amount $15,342,121.19 had been disbursed by the Commodity Credit Corporation and the balance was held by banks and other lending agencies. As of the same date, repayments reported aggregated $820,335.57. These loans mature July 31, 1935. Loans to the manager, Cotton Producers' Pool, of 2 cents per pound on cotton held by the pool manager were approved November 13, 1934. A commitment of $20,000,000 was secured from the Reconstruction Finance Corporation for these loans. As of December 31, 1934, loans made to the manager, Cotton Producers' Pool, aggregated $4,562,125.11. |