EXHIBIT No. 105 UNITED STATES GOVERNMENT MEMORANDUM APRIL 12, 1961. To: Chairman : Alabama ASC State Committee. The copy of the sale and lease-back contract which you forwarded under cover of the above-described memorandum has been reviewed in the Office of the General Counsel. Such office states that it appears that it is likely to operate as a device for the sale of pooled allotment to a person other than the displaced owner The agreement provides in paragraph 1 that the transfer of the land shall be conditioned upon approval of the transfer of the pooled allotment to such land and that there shall be no personal liability to either party in the event the county committee does not approve the transfer of the pooled allotment. Paragraph 4 of the agreement provides for a lease for three years to the former owner of the land. In addition, if the buyer of the land does not make the first payment on the Note, he may reconvey the land and be released from all personal liability under the contract. However, he retains the first year's lease payment under those circumstances. Accordingly, it appears that the displaced owner may attempt to transfer pooled allotment without any bona fide ownership of the new farm, in exchange for the first year's lease payment. It is the view of the Office of the General Counsel that the displaced owner cannot be considered to be the owner within the meaning of the statute and regulations and the county committee in Texas should not approve the application for transfer of pooled allotment under the foregoing type of sale and lease-back contract. A copy of this memorandum and a copy of the contract which you furnished is being forwarded to the Texas ASC State Committee for its information. We appreciate your calling the matter to our attention. (Source: Alabama State ASCS Office.) EXHIBIT NO. 107 EXHIBIT A.-Persons who sold land in 1960 or 1961 to displaced owners under sale and lease-back arrangements pertaining to the transfer of pooled cotton allotments1 Total number displaced owners transferring to Estes' land.. Total allotment acres transferred by Estes and other persons using plan similar to Estes' plan.. Percent of total allotments transferred from pool in 1961 to persons using the sale and leaseback plan..... Percent of total transfers to Estes and associates. Total regular allotment Estes and associates received (excludes any pooled allotment).... Total cotton allotment for Estes and associates from all sources (includes pooled allotment for 1961). Percent pooled allotment to Estes and associates' farms of total allotment for such farm (includes pooled acreage).... 1 Not available. |