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616-6. Availability of Department of Agriculture records and facilities to compacting States.—The Secretary is hereby authorized, upon the request of the commission of any compacting State, or at the request of any association referred to in section 5, to make available to the commission of any State or to any such association such records and information, whether published or unpublished, and such facilities of the United States Department of Agriculture as the Secretary deems appropriate in aiding such commission or association. (Apr. 25, 1936, sec. 6, 49 Stat. 1241; 7 U. S. C., sec. 515e.)

616–7. Appropriation; disposition of repayments of loans.-(a) For the purpose of administering this Act there is authorized to be appropriated to the Secretary of Agriculture the sum of $300,000, or so much thereof as may be necessary for that purpose.

(b) Any advances or loans which are repaid to the Secretary by any commission or association pursuant to sections 3 and 5 of this Act shall revert to the general fund of the Treasury of the United States. (Apr. 25, 1936, sec. 7, 49 Stat. 1241; 7 U. S. C., sec. 515f.)

616-8. Agencies to which funds available.-All funds available for carrying out this Act shall be available for allotment to the bureaus and offices of the Department of Agriculture and for transfer to such other agencies of the Federal or State Governments as the Secretary may request to cooperate or assist in carrying out this Act. (Apr. 25, 1936, sec. 8, 49 Stat. 1241; 7 U. S. C., sec. 515g.)

616–9. Effect of compacts between States producing cigar tobacco on Puerto Rican commerce.--If, pursuant to this Act, any compact entered into among three or more of the States of Pennsylvania, Ohio, Wisconsin, Massachusetts, Florida, and Connecticut, becomes effective, or if any association or associations are formed, the membership of which includes at least two-thirds of the producers of cigar-filler tobacco and cigar-binder tobacco in three or more of said States, commerce in cigar-filler tobacco produced in Puerto Rico shall be regulated during the period in which any such compact remains effective or such associations continue to operate, as follows:

(a) The Secretary shall determine for each crop year, by calculations from available statistics of the United States Department of Agriculture, the quantity of cigar-filler tobacco produced in the continental United States and Puerto Rico which is likely to be consumed in all countries of the world during such crop year, increased or decreased, as the case may be, by the amount by which the world stocks of cigar-filler tobacco (produced in the continental United States and Puerto Rico) at the beginning of such crop year are less than or greater than the normal stocks of such cigar-filler tobacco, as determined by the Secretary. For the purposes of this section, the Secretary shall specify as a "crop year” such period of twelve months as he deems will facilitate the administration of this section.

(b) The Secretary shall determine a marketing quota for Puerto Rico for cigar-filler tobacco for each crop year in which the provisions of this section are operative. Such quota shall be that quantity of cigar-filler tobacco which bears the same proportion (subject to such adjustment, which may be cumulative from one crop year to another, not exceeding 5 per centum of said proportion in any one year, as the Secretary determines is necessary to correct for any abnormal conditions of production during any three normal crop years during the last ten years for trends in production during such crop years and

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for trends in consumption since such crop years) to the total quantity of cigar-filler tobacco produced in the continental United States and Puerto Rico and required for world consumption (as determined pursuant to paragraph (a) of this section) as the average production of cigar-filler tobacco in Puerto Rico in such crop years bore to the average of the total production of cigar-filler tobacco in the continental United States and Puerto Rico in such crop years.

(c) The Secretary shall establish for each farm in Puerto Rico for each crop year a tobacco-marketing quota, giving due consideration to the quantity of cigar-filler tobacco marketed from the crops produced on such farm and by the operator thereof in past years; to the land, labor, and equipment available for production of tobacco on such farm; to the crop-rotation practices on such farm; and to the soil and other physical factors affecting production of tobacco on such farm: Provided, That the total of the marketing quotas established for all farms in Puerto Rico for any crop year shall not exceed the marketing quota for Puerto Rico for such crop year.

(d) The marketing quota established for Puerto Rico and the marketing quotas established for farms in Puerto Rico for any crop year pursuant to paragraphs (b) and (c) of this section shall be subject to such uniform adjustment during the crop year, not exceeding 10 per centum of said quotas, as the Secretary shall determine to be necessary to establish and maintain normal world stocks of cigar-filler tobacco produced in the continental United States and Puerto Rico and otherwise to effectuate the purposes of this Act.

(e) The Secretary shall, under such terms and conditions and in accordance with such methods as may be established in regulations prescribed by him, issue, to buyers or handlers of tobacco from any farm in Puerto Rico, marketing certificates for an amount of tobacco cqual to the marketing quota established for such farm, and, for any tobacco marketed in excess of such quota for such farm, sell, to the buyer or handlers of such excess tobacco, marketing certificates for a charge equal to one-third of the current market value of such tobacco, and the Secretary may require the buyer or handler of such excess tobacco to deduct the charge for marketing certificates from the price or proceeds of or advances on such tobacco.

(f) From the proceeds received from the sale of marketing certificates pursuant to paragraph (e) of this section, the Secretary shall make payments to the producers of tobacco on farms in Puerto Rico from which the sales of tobacco, because of weather or diseases or loss by fire affecting the tobacco crops thereon adversely during any crop year, are less than the marketing quotas for such farms for such crop year. Such payments shall be at a rate per pound of such deficit as shall be determined by dividing the funds remaining after deduction of such amount as the Secretary estimates to be necessary for the payment of administrative expenses incurred in administering the provisions of this section by the total number of pounds by which the sales of tobacco from all such farms fall below the marketing quotas for such farms.

(g) The sale, marketing, purchase, or transportation of any cigarfiller tobacco produced, sold, or marketed in Puerto Rico during any period of time when this section shall be in effect is hereby prohibited unless a marketing certificate has been issued for such tobacco

by the Secretary pursuant to the provisions of this Act. (Apr. 25, 1936, sec. 9, 49 Stat. 1241; 7 U.S. C., sec. 515h.)

616–10. Disposition of receipts under section 9 for paying administrative expenses, etc.—Any receipts by the Secretary under section 9 of this Act shall be held in a separate fund and used by the Secretary for the purpose of paying administrative expenses and expenditures incurred or made in connection with section 9 of this Act. (Apr. 25, 1936, sec. 10, 49 Stat. 1242; 7 U. S. C., sec. 515i.)

616–11. Separability of provisions.-If any provision of this Act, or the application thereof to any person or circumstance, shall be held invalid, the validity of the remainder of the Act and the application of such provision to other persons or circumstances shall not be affected thereby. (Apr. 25, 1936, sec. 11, 49 Stat. 1242; 7 U. S. C., sec. 515j.)

616–12. Rules and regulations.—The Secretary shall prescribe such rules and regulations as he may deem necessary to carry out the provisions of this Act. (Apr. 25, 1936, sec. 12, 49 Stat. 1242; 7 U.S. C., sec. 515k.)

FOREIGN AGRICULTURAL SERVICE 618. Foreign Agricultural Service.—[Foreign Agricultural Service was transferred to Department of State and consolidated with Foreign Service, and functions of Secretary of Agriculture with respect thereto (other than functions pertaining to activities in the United States and to compilation, publication, and dissemination of information) were transferred to Secretary of State by Reorganization Plan No. II, sec. 1 (a), (b), effective July 1, 1939, the full text of which appears following paragraph 115–31 of this volume. See also sec. 402 of this plan for provisions relating to transfer of functions, records, property, personnel, and funds. ]

619. Same; clerks and assistants to officers.—[Transfer of Foreign Agricultural Service and functions to Department of State, see note under paragraph 618, ante.]

620. Same; expenses for travel and subsistence.—[Transfer of Foreign Agricultural Service and functions to Department of State, see note under paragraph 618, ante.]

621. Authority of Secretary of Agriculture as to regulations, cooperation with various departments and agencies, and expenditures for rent, supplies, and so forth.- [Transfer of Foreign Agricultural Service and functions to Department of State, see note under paragraph 618, ante.]

AGRICULTURAL ADJUSTMENT ACT

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NOTE.--- Following the decision of the United States Supreme Court in United States v. Butler et al., Receivers of Hoosac Mills Corp., 297 U. S. 1, a large portion of the Agricultural Adjustment Act of 1933, as amended, became inoperative. Certain sections were also repealed by acts of Congress. The sections set forth under the foregoing headings are, in part, those currently in effect. For the remainder of the effective provisions of the original Agricultural Adjustment Act refer to paragraphs 630-12 to 630–28 herein, which include the marketing agreement and order phases of the Act, the declarations of emergency and policy, administrative provisions, appropriations, separability provisions, and provisions relating to imports, etc. The Agricultural Adjustment Act of 1938, as amended, is set out in paragraphs 630–120 to 630-20 The provisions of the Act of June 22, 1936, secs. 601 to 690, inclusive, relating to refunds of taxes collected under the Agricultural Adjustment Act have been omitted from this compilation, inasmuch as these provisions are administered by the Treasury Department.

630–1. Cotton Option Contracts; Government owned cotton; transfer to Secretary of Agriculture; powers of Secretary.—The Federal Farm Board and all departments and other agencies of the Government, not including the Federal intermediate credit banks, are hereby directed

(a) To sell to the Secretary of Agriculture at such price as may be agreed upon, not in excess of the market price, all cotton now owned by them.

(b) To take such action and to make such settlements as are necessary in order to acquire full legal title to all cotton on which money has been loaned or advanced by any department or agency of the United States, including futures contracts for cotton or which is held as collateral for loans or advances and to make final settlement of such loans and advances as follows:

(1) In making such settlements with regard to cotton, including operations to which such cotton is related, such cotton shall be taken over by all such departments or agencies other than the Secretary of Agriculture at a price or sum equal to the amounts directly or indirectly loaned or advanced thereon and outstanding, including loans by the Government department or agency and any loans senior thereto, plus any sums required to adjust advances to growers to 90 per centum of the value of their cotton at the date of its delivery in the first instance as collateral to the department or agency involved, such sums to be computed by subtracting the total amount already advanced to growers on account of pools of which such cotton was a part, from 90 per centum of the value of the cotton to be taken over as of the time of such delivery as collateral, plus unpaid accrued carrying charges and operating costs on such cotton, less, however, any existing assets of the borrower derived from net income, earnings, or profits arising from such cotton, and from operations to which such cotton is related; all as determined by the department or agency making the settlement.

(2) The Secretary of Agriculture shall make settlements with respect to cotton held as collateral for loans or advances made by him on such terms as in his judgment may be deemed advisable, and to carry out the provisions of this section, is authorized to indemnify or furnish bonds to warehousemen for lost warehouse receipts and to pay the premiums on such bonds.

When full legal title to the cotton referred to in (b) has been acquired, it shall be sold to the Secretary of Agriculture for the purposes of this section, in the same manner as provided in (a).

(c) The Secretary of Agriculture is hereby authorized to purchase the cotton specified in paragraphs (a) and (b). (May 12, 1933, Title I, sec. 3, 48 Stat. 32; 7 U.S. C., sec. 603.)

630–2. Borrowing money; expenditures of funds; authority of Secretary of Agriculture.-(a) The Secretary of Agriculture shall have authority to borrow money upon all cotton in his possession or control and may, at his discretion, deposit as collateral for such loans the warehouse receipts for such cotton.

(b) The Secretary of the Treasury is authorized to advance, in his discretion, out of any money in the Treasury not otherwise appropriated, the sum of $100,000,000 to the Secretary of Agriculture, for paying off any debt or debts which may have been or may be

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incurred by the Secretary of Agriculture and discharging any lien or liens which may have arisen or may arise pursuant to part 1 of this title, for protecting title to any cotton which may have been or may be acquired by the Secretary of Agriculture under authority of part 1 of this title, and for paying any expenses (including, but not limited to, warehouse charges, insurance, salaries, interest, costs, and commissions) incident to carrying, handling, insuring, and marketing of said cotton and for the purposes described in subsection (e) of this section. This sum shall be available until the cotton acquired by the Secretary of Agriculture under authority of Title 1 of this Act, including cotton futures, shall have been finally marketed by any agency which may have been or may be established by the Secretary of Agriculture for the handling, carrying, insuring, or marketing of any cotton acquired by the Secretary of Agriculture.

(c) The funds authorized by subsection (b) of this section shall be made available to the Secretary of Agriculture from time to time upon his request and with the approval of the Secretary of the Treasury. Each such request shall be accompanied by a statement showing by weight and average grade and staple the quantity of cotton held by the Secretary of Agriculture and the approximate aggregate market value thereof.

(d) It is the purpose of subsections (b) and (c) to provide an alternative method to that provided by subsection (a), for enabling the Secretary of Agriculture to finance the acquisition, carrying, handling, insuring, and marketing of cotton acquired by him under authority of section 3 of this Act. The Secretary of Agriculture may at his discretion make use of either or both of the methods provided in this section for obtaining funds for the purposes hereinabove enumerated.

(e) The Secretary of Agriculture is authorized to use in his discretion any funds obtained by him pursuant to the provisions of subsection (a) or (b) of this section or of section 5 for making advances to any agency which may have been or may be established by the Secretary of Agriculture for the handling, carrying, insuring, or marketing of any cotton acquired by the Secretary of Agriculture, to enable any such agency to perform, exercise, and discharge any of the duties, privileges, and functions which such agency may be authorized to perform, exercise, or discharge.

(f) The proceeds from the sale of cotton shall be held for the Secretary of Agriculture by the Treasurer of the United States in a special deposit account and shall be used by the Secretary of Agriculture to discharge the obligations incurred under authority of part 1 of this title. Whenever any cotton shall be marketed the net proceeds (after discharge of other obligations incurred with respect thereto) derived from the sale thereof shall be used, to the extent required, to reimburse the Treasury for such portion of the funds hereby provided for as shall have been used, which shall be covered into the Treasury as a miscellaneous receipt. If when all of the cotton acquired by the Secretary of Agriculture shall have been marketed and all of the obligations incurred with respect to such cotton shall have been discharged, and the Treasury reimbursed for any and all sums which may have been advanced pursuant to subsection (b), there shall remain any balı ance in the hands of the Secretary of Agriculture, such balance shall be covered into the Treasury as miscellaneous receipts.

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