10 
AGRICULTURAL RELIEF 
loan whatever happens, and they may not be unwilling, under the 
other forms of legislation, that permit them to create corporations 
to which the loans are to be made, with no legal liability on the 
members individually in the cooperative to repay them. : 
Mr. Gray. We do not want that obligation removed from the 
corporation itself. We do not want any merger of cooperatives in 
such way, corporative or cooperative, that can borrow money from 
Uncle San: and be not obligated to return that money with interest 
on it. That is business. 
Mr. Fort. Neither do we. 
Mr. Gray. And so far as protecting the individual member of the 
cooperative is concerned, we are in absolute harmony with what you 
have in mind. 
Mr. Fort. Then your loan provision in section 5 is not what you 
want? 
Mr. Gray. In what particular? 
Mr. Fort. Because you are, in your section 5, making it purely a 
legal obligation, without any reference to any limitation on the repay- 
ment or terms for repayment other than obligatory terms which 
may be imposed by the board if they collect it by way of equalization 
fee, in fact, if not legally so. 
Mr. Gray. We are trying to confine the loans of this bill to loans 
to be used for disposing of surpluses, and that is shown in the language 
of section 5, where it says loans for the purpose of assisting’ the 
cooperative associations only in controlling the surplus of any agri- 
cultural commodity in excess of requirements for orderly marketing. 
There is the basis of our program—Iloans not for things other, but 
for things relative to the surplus disposition. Mr. Settle will intro- 
duce in good time, he being our chairman, at least for the day, some 
gentlemen who will have some amendments to the loan section 
which we will recommend. 
Mr. Chairman, I have presented all of the amendments which were 
delegated to me to present. However, there are two other amend- 
ments, one on the loan section and one relative to insurance, which 
our chairman for to-morrow. will have presented for consideration of 
the committee. 
So far as I am concerned, if the committee pleases, unless you want 
me to appear again, I have said all that I desire to say, and I can 
sum 1t up in one sentence: We want H. R. 7940 enacted into law, but 
first reported out from this committee with a favorable report, includ- 
ing the amendments which we are suggesting to you. I thank you. 
Mr. WiLriams of Illinois. Mr. Chairman, I want to insert a brief 
statement in the record, if I may. 
During the session of the committee yesterday morning Mr. Earl S, 
Smith, chairman of the Illinois Agricultural Association called me 
from Chicago on the telephone. In the course of our conversation I 
said to Mr. Smith that I had heretofore as a member of this committee 
and a Member of the House consistently supported the equalization 
fee. That I believed it was workable and was the best method yet 
suggested to procure the necessary funds for the stabilization of 
agriculture. That if there was even a remote chance for us to have 
that scheme written into law at this time I would give it my earnest 
support. I stated further that owing to conditions here which are 
perfectly obvious and which everv one recocnized. the enactment of