[Letter from John T. Todd to Allen J. Ellender and Harold D. Cooley, June 12, 1965] Page: 3 of 12
6 p. ; 28 x 21 cm.View a full description of this letter.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
collateral security to CCC for price support loans and especially to cotton which
i redeemed and sold without being acquired by the Government. The warehouse
representatives urged with equal fervency, and voluminous documentary support,
that the rates on all CCG-owned cotton and on loan caton which is acquired by CCC j
should be substantially increased. (1natead of granting any increase, C;CC again
reduced by 3l per bale per month the -torage rate on cotton which (C: has owned
for one year or more.) We were not irormed of the Jepartment's decisions prior
to its news release at noon, May 12.
:n the merits of the matter, two basic factors are involved:
(1) The lack of any legal power or authority in the Department to fix or
regulate storage rates; and (4) the level of storage rates in relation to operating
coats.
1: With respect to the legal factor:
Prior to 1948, when the Federal CCC Charter Act was enacted, the price
support laws conferred no authority on the CCC or U,3A for the regulation of rates,
charges or activities of the cotton warehouse industry.
The UsDA practice of fixing rates for the storage of CCC-controlled cotton
began in 1934 when the prescribed rate was 2# per bale per month higher than the
average of published tariff rates for the United states as determined by the Depart-
ment. From 1934 through 1956 (except for some aberrations caused by operations
of the Office of Price Administration) the storage rates on CCC-controlled cotton
were consistently fixed at or about the level of the published tariff rates applicable
in the five Mississippi Valley States. The CCC rates during that period ranged
from Z' below to 29 above the average of storage rates for the entire United states
as compiled and published by the Department.
A decided legal change was effected with enactment in June 1948 of the
Federal CCC Charter Act (replacing its previous Delaware Charter).
The pertinent provisions are found in Title 15, U. S. Code S 714b "General
Powers of Corporation" and 1 714c "Specific Powers of Corporation'. &ubsection (d)
of section 714b provides that the Corporation "may enter into and carry out such
contracts or agreements as are necessary in the conduct of its business ." Sub-
section (h) provides that the Corporation "may contract for the use, in accordance
with the usual customSof trade and commerce of plants and facilitief'r th
physical handlin, storage, processing, and transportation of the agricultural
commodities subject to its control . . . and further, that nothinjcontained in this
subsection shall limit the dutyof the carpar to the maximum extent practicable
consistent with the fulfillmthe crpratin's prpoes and the effective and
efficient conduct Of its business to utilize the usual and custon ar1rchannels,
facilities and arrangements of trade and commerce in the warehou;ng of commodities:
(kmpha its added)
Upcoming Pages
Here’s what’s next.
Search Inside
This letter can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Letter.
National Cotton Compress & Cotton Warehouse Association. [Letter from John T. Todd to Allen J. Ellender and Harold D. Cooley, June 12, 1965], letter, June 12, 1965; (https://texashistory.unt.edu/ark:/67531/metapth1425490/m1/3/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Rosenberg Library.