The inauguration of this newly devised system of proposed relief to the entire agricultural industry of the United States, carries with it numerous beneficial features, especially in the way of lower transportation rail and water rates, in the handling and final disposition of all agricultural surplus farm products all of which would accrue to the producers thereof, as follows: First, by a subdivision of the territory between the Mississippi River and the Atlantic Seaboard, thereby giving all shippers the benefit of the short haul rail rates to the regional district concentrating points either on the Atlantic coast or the Missis sippi River. The same benefits would obtain on shipments from all regional operating districts in the northwest section of the Mississippi Basin, viz, Minnesota, North and South Dakota, Nebraska, Kansas, Iowa, and Missouri, as well as Oklahoma and Arkansas, and possibly a part of Texas and Louisiana located in the southwest section of the Mississippi River Basin, eastern Montana, Wyoming, and Colorado would be grouped with the northwest section of the Mississippi Basin States. As an example of the benefit that would be derived from low water rates, I will cite the following illustration:

The carload rate on wheat from Bismarck and Mandan, N. Dak., to St. Paul, is 0.231⁄2 cent per hundredweight and the water rate St. Paul to New Orleans, La., is 0.140 cent per hundredweight, making a through rate of 0.3810 cent per hundredweight on wheat for export, while the all-rail rate from same points based on St. Louis is 0.581⁄2 cent per hundredweight, the difference of 0.2010 cent being in favor of the shippers (farmers) which is equivalent to 12.12 cents per bushel on wheat carloads for export which represents a saving in transportation alone of $180 per carload of 90,000 pounds.

Under the McNary-Haugen scheme the shipper would pay a tax of 11 cents per bushel or $165 per car on wheat to aid in fixing the domestic price which would, no doubt, be a total loss.

The next benefit to the shippers (farmers) would be practically free service in the handling of all specific agricultural surplus farm products when received at and shipped out of the regional operating districts, viz., on shipments received free weighing, inspection, elevation and storage. On same shipments loaded out of the regional operating districts, the loading, inspection, and weighing service would also be free, and no insurance charges would be assessed against any shipments handled the first year of operation, and probably not at all after that time. The surplus commodities that would come the free service rules are wheat, corn, rye, barley, oats, flaxseed and rice; cotton and tobacco, would come under a little different arrangement not yet fully determined.

The third benefit to the shippers (farmers) under this new plan of farm relief would be the increased market value of all agricultural surplus commodities as named herein, resulting from cleaning, drying, mixing, or otherwise treating or conditioning, in order to put them in prime condition for sale in domestic or foreign commerce.

This plan of proposed permanent relief to American agriculture further contemplates the handling of other agricultural surplus commodities after the first three or four years of the operation thereof, contingent, however, upon the prosperity and volume of business handled during that period of time, and subject to consideration of the farmer's national agricultural marketing association (that would be formed) as to the additional expense incident to the handling of other agricultural commodities. This extension of business under the direc tion of a Government executive body in control of operation and financing would also be subject to the consideration and concurrence of Congress and ratification of the President of the United States. The additional agricultural surplus commodities that would be handled under such an extension of commercial business are butter, eggs, and cheese in straight carloads of prime products from the producers or their representatives to be handled under much the same principles as the commodities included in this original plan as to market prices, etc., viz, under direction of the market and surplus department to be known as the dairy and dressed-meat division. The commerce sales director and his assistants would have full jurisdiction in the marketing of these commodities in domestic and international commerce. The profits and losses would be handled in the same manner as the grain and miscellaneous products.

In addition to the handling of dairy products this plan of farm relief also contemplates the handling of dressed beef, pork, and poultry in carloads only to be shipped by the producers or their representatives in refrigerator cars during the cold months of the year only, viz: December to March, inclusive. The handling of these commodities would also be subject to consideration of members

of the farmers national agricultural marketing association and other conditions as mentioned in connection with dairy products and eggs.

The handling of perishable commodities, as referred to herein, is but a preiminary outline of possibilities that might be accomplished if found to be feasble in operation, and is briefly mentioned to show the full intent of this plan as to agricultural products, for the information of the producers at large.

It is considered very unwise to overload a project of this kind by taxing the operation of it in an effort to carry too many commodities in the beginning, which It is certain would result in a depressing effect on the general progress of the entire system, as well as an additional heavy cost of facilities and extra labor, all of which would be apt to represent a material loss that the farmers could not afford to lose.

It is of course obvious the paramount question with respect to the marketing of specific farm and plantation surplus commodities as mentioned hercin, is to establish a permanent, feasible, economic, concrete, and systematic plan of centralizing and concentrating such commodities, wherethey can be conditioned and otherwise refined as prime products, for immediate or future disposition through the channels of domestic and foreign commerce, but without restraint or interference with the well-established rules and regulations of interstate commerce and the general operation of our orderly marketing system as far as may be found practical and in keeping with operation requirements.

My newly devised system of relief to American agriculture is distinctly different from any other form of farm relief that has been submitted to the Committee on Agriculture for consideration heretofore. It is largely coordinated with the lines of water transportation and carries with it the benefit of short line rail rates that would be applicable from shipping points to concentrating points, all of which would serve to give shippers the benefits of a material reduction in the cost of transportation alone.

My plan of farm relief is a simple, feasible, economical system devised to meet the needs and expectations of the farm and plantation industries at large, to promote and enlarge their capacity for handling staple surplus products as progressively and efficiently as it is possible to do so with the united cooperation of the farmers to the end that they may eventually attain permanent prosperity and their mutual independence.

The plan of farm relief I have devised and drafted is not a subsidy in any sense, nor is it a debenture plan. It is so vastly different from any other form of farm relief that has been introduced during the past two years or longer, owing to numerous rare advantages offered by its provisions, that I feel assured the Committee on Agriculture will be disposed to give it reasonable consideration from an impartial point of view.

The original draft of my agricultural surplus act has been revised and materially augmented, and now carries the title name of "A consolidated Federal farm relief measure and farm loan certificate system," consisting of three title acts as hereinafter described.

Inasmuch as this new system of farm relief has been devised specifically for the benefit of the farmers at large, it is earnestly hoped they will give it their fullest consideration through their representatives, and if favorably considered by them and Congress, and it is later ratified by the President of the United States, it will be operated wholly in the interest of the members of their association without discrimination or preference to their political affiliations or otherwise.

There are three or four potential considerations that are contemplated by me in connection with my proposed system of relief to American agriculture, in fact, I consider they are the crowning features of the whole plan, that would no doubt be of vital interest to the entire national farm association (that would be formed). However, as they are not incorporated in my plan, I shall withhold advice on them for the present pending further developments. I simply refer to them at this time to let the farmers know there are far greater possibilities in store for them.

Until such time as the farmers reorganize into a national association headed by an efficient executive organization, vested with sufficient power to take the necessary action to properly regulate the orderly marketing of agricultural grain crops to a point where thay can successfully control the marketing and final disposition of the excess production of such crops, known as the surplus, there will always be the condition of a depressed market, which usually occurs at the harvest time when farmers are obliged to sell their grain below the cost of production, resulting in a material loss.

If the farmers of this great Nation would only reorganize into a national association and stand firmly together, they would eventually become the ruling power in the marketing of their staple agricultural surplus products, viz: grain, livestock and dairy products, including planatation commodities.

Another beneficial feature of my plan is the appointment of two traveling organizers in each regional operating district, who would be placed in the field for the purpose of soliciting members in the new organization (that would be formed) in order to increase the membership as rapidly as possible, also to educate all members of their association in the fundamental principles of this newly devised system of farm relief, including diversification of their grain crops.

The fundamental principles of my new plan of farm relief and farm loan certificate system as now drafted are as follows:

A. Reorganization of national cooperative associations, farm bureaus, and shipping associations, together with independent and nonmember farmers engaged in the industry of agriculture, all to be united into one major national body under the name of "The Farmers National Agricultural Marketing Association of North America."

B. Location and construction of adequate regional district operating facilities on the direct lines of water transportation and efficient operation of same.

C. Centralized concentration of specific agricultural surplus commodities. D. Free service and storage of agricultural surplus commodities at regional operating, districts including free insurance.

E. Systematic stabilization of domestic market prices on a graduated scale, and judicious disposition of specific agricultural surplus commodities in domestic and foreign commerce under the jurisdiction of a commerce sales director assisted by deputy sales agents at all export points.

F. Appointment of six or more efficient foreign sales agents to be located in the principal countries of Europe with a view of expediting sales of agricultural surplus stocks of grain, dressed meats, poultry, eggs, and dairy products, with a view of disposing of each fiscal year's surplus production of these commodities, in order to obviate the possibility of a heavy carry-over of any of these products. G. Readjustment of freight rates on grain and other commodities entitled to export rates, including plantation commodities, giving shippers the benefit of export rates on all shipments destined to regional district operating facilities that are intended for export.

H. Distribution of the annual excess surplus production of wheat from 17 producing States to 32 States that are deficient in production of that commodity, through interstate commerce by use of the inland waterways corporation as far as practical.

I. All members of the farmers national agricultural association would be subject to an annual membership fee of about $2.50 to $3.50 each, based on 30 or 35 per cent of the net farm owned population of the United States which would be required in order to guarantee the interest on the finance that would be furnished by the United States Treasury Department periodically as needed for construction of the permanent operating facilities.

J. The members of the farmers national agricultural marketing association (that should be organized) would have the option of paying a membership fee of $5 to $6.50 each, for the first three years in advance, covering the cost of construction of regional district operating facilities which would give them full ownership of same. By paying for these facilities as soon as completed at the close of each year of construction there would be a saving of approximately $1,300,000 in interest.

A CONSOLIDATED, FEDERAL FARM RELIEF MEASURE, AND FARM LOAN CERTIFICATE SYSTEM, CONSISTING OF THREE TITLE ACTS AS FOLLOWS:

Title No. 1: A Federal Agricultural Surplus Act.

Title No. 2: A Federal Emergency Protective Reserve Appropriation Fund. Title No. 3: A Federal Farm Loan Certificate System.

TITLE No. 1

An act to create a Federal National Executive Organization for the purpose of promoting agriculture, and to regulate as far as possible the manner of marketing agricultural commodities in domestic commerce, and essentially to devise adequate means and facilities for the judicious handling and final disposition of a

limited seasonal supply of specific surplus farm and plantation products to be transported in interstate and foreign commerce.

TITLE No. 2

An act to provide for an emergency appropriation reserve fund, solely for the purpose of protecting the operation of all regional district operating facilities against unforeseen contingencies that might arise periodically or otherwise, as outlined in section 9, article 5, paragraphs 1 to 9, inclusive.

TITLE No. 3

An act to establish a Federal farm loan certificate system, providing for direct short-time loans for six months to needy members of the farmers national agricultural marketing association (that should be organized), for the purpose of defraying their harvesting and threshing expenses each seasonal crop year, at a low rate of interest of 4 per cent per annum. The finance that would be furnished by the United States Treasury Department to be judiciously administered by the Federal national executive organization, as hereinafter outlined in section 11, articles 1 to 13, inclusive.

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

DECLARATION OF POLICY

TITLES 1, 2, AND 3

Section 1, article 1: It is hereby proclaimed to be the firm intent of Congress of the United States of America to improve the ordinary sale of specific agricultural commodities in domestic and foreign commerce, and to devise adequate means and facilities for the proper handling, and final disposition of a limited supply of such surplus commodities, in order to assist producers of same in stabilizing their markets, and to guard against inordinate and unfair fluctuations in prices, due to erroneous quotations in central domestic markets, and further to maintain beneficial domestic prices for staple agricultural commodities.

To discourage speculation in market prices as far as possible, and to avoid unnecessary waste in marketing of all surplus commodities.

To advocate the organization of growers of agricultural products, by urging them to reorganize and join a National Agricultural Marketing Association (that should be organized) and to encourage the principles of diversified farming in the planting of staple crops, biennially, and triennially or otherwise.

To establish an adequate, feasible and economical system of moderately financing the needy farmers of the Continental United States by making direct short time loans to them each seasonal crop year at a low rate of interest. Such loans to be administered under direction of the Federal national executive organization to members only of the farmers national agricultural marketing association, and on sound acceptable security, as hereinafter described in Title acts, 1, 2, and 3.

A FEDERAL NATIONAL EXECUTIVE ORGANIZATION

Section 2, article 1: Under this newly devised plan of proposed relief to Amercan agriculture, and in conformity with the title of these three Federal acts and the declaration of policy thereunder as outlined in section 1 thereof, there shall be established "A Federal national executive organization" composed of the Secretary of Agriculture of the United States, acting as a member ex officio, and six other members, to be appointed by the President of the United States, with the concurrence of the Senate body of Congress, as fully outlined in section 3, articles 1 to 9, inclusive, of this act.

Section 2, article 2: Under this newly devised plan of proposed relief to American agriculture, and in conformity with the intent of these three Federal acts and the declaration of policy as outlined thereunder in section 1 thereof, there shall also be established 15 independent regional district operating facilities, which shall be pl ced under the direction of a district superintendent of facilities at each point, together with the necessary forces to operate same, including two traveling district organizers, as further described in section 6, articles 1 to 6, inclusive, of this act.

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Section 2, article 3: Each district superintendent of facilities shall be appointed by the President of the United States in the same manner as the members of the executive organization and under the same provisions as outlined in section 3, articles 1 to 8, inclusive, except that district superintendents are not executive positions.

Section 2, article 4: For convenience in describing the different organizations and departments necessary for operation under the direction of a Federal national body, the following designations shall be used in the order named: The executive organization, construction of regional district facilities, the subordinate organizations, operation of district facilities, financing the Federal organization, and general accounting of the executive department, including the capital accounts for regional district sites and facilities or other permanent properties that may be acquired or disposed of. Also a Federal farm loan certificate system.

THE FEDERAL NATIONAL EXECUTIVE ORGANIZATION

Section 3, article 1: A Federal organization of executive officers is hereby created that shall be composed of the Secretary of Agriculture of the United States acting as a member ex officio, together with six other members, viz: A general attorney, general manager, secretary to the general manager, treasurer, auditor, and commerce sales director, to be appointed by the President of the United States with the consent and approval of the Senate body of Congress in executive session.

Section 3, article 2: With a view of securing thoroughly competent men to fill the various executive positions in this organization, they shall be secured by advertising in the daily newspapers in each regional district for 10 days subsequent to the passage of this act, if ratified by the President. This manner of filling the executive positions named herein is preferable in order to extend fair and impartial opportunities to farmers and nonfarmers alike, without discrimination or preference to their political affiliations, or otherwise.

Article 3, Aspirants for the various executive positions named herein will be required to present formal applications for same to the Secretary of Agriculture personally, giving their experience in domestic agricultural industry, viz.: Cultivating or tilling of crops, harvesting and marketing of same, together with their time of service in buying and selling of agricultural commodities, if any, and their accounting for same in clerical office experience or otherwise. They will also be required to state their previous experience in other lines of occupation, or positions of trust, if any, giving references to their former employers and bonding or security companies they may have been protected by, if any.

Article 4: The Secretary of Agriculture will be required to pass on the fitness of applicants for the executive positions named herein, after which he will refer them to the Senate body of Congress with his recommendations, if any. The Senate, after due consideration, will submit them to President Hoover for his consideration and the appointment of his choice of applicants qualified to fill the various executive positions.

Section 3, article 5: The terms of office of the duly appointed members of the executive organization shall be for a continuous period of six years' service for each member from the date of appointment by President Hoover, contingent, however, upon an extended date depending on the fitting up of a general office building for services of the full organization. The date of commencement of operations of the executive body shall determine the basis for the maximum terms of service for each of the six appointed executive officers.

Article 6: In the event of the death, resignation, or dismissal from service of any of the executive officers, a successor shall be appointed in the same manner as the original appointed members. He shall perform the duties of that office for the unexpired term of his predecessor, provided he demonstrates his ability to execute the requirements of that office.

Article 7: The absence or vacancy of any member of the executive officers except the general manager, due to sickness or other unavoidable causes, will not lessen the judicial powers of the other members to transact business of an imperative nature. A majority of the executive body will be considered a quorum for the proper transaction of business.

Article 8: All members of the executive organization appointed by the President must be citizens of the United States, not under 25 years of age, who are not employed, and shall not engage in any other occupation, profession, vacation. or employment of any nature whatsoever, at the time of their appointment to the executive body. They should have had at least a high-school