The Orlando Sentinel from Orlando, Florida • 9

Fhane '4161 PAGE ONE (B)' THE OKLANDO MORNING SENTINEL, ORLANDO, FLORIDA, SATURDAY. SEPTEMBER 2. 1933. Citrus Growers Hear New Deal Will Bring Prosperity Shows the Way ft. COREY DETAILS MARKET ACCORD CITRUS MARKET CODE APPROVED FLORIDA GIVEN POSTS ON BOARD ROOSEVELT GETS MOST Business Quickens Under His Touch Act Art i 1 1 a 1 Hailed Many Problems Still To Arise 4 1 Into what in less competent hands would be but a scrap of paper, a man who will be fair to all the citrus sections affected, one sincerely devoted to the underlying purposes of this act, and whose grent ambition will be to achieve the price parity for the growers of citrus fruits which congress has attempted to provide for in this legislation.

MISCELLANEOUS PROVISIONS Article XII. Each shipper Is required to apply for a license. After the hearing In Washington, the secretary, if satisfied with the evidence in support of its various marketing- agreements and our provisions, will enter an order that all shippers after the effective date designated by him must procure a license to operate. As mentioned before, tills is the rock upon which various Florida el-forts have been crushed in the past, the Inability to force a small minority to conform to any program (Continued from Page One) of the Florida Citrus drawers' league at Winter Haven. Several hundred growers drove over from Lakeland to attend the league's alter they had taken part in the mass meeting at Lakeland.

Mr. Corey spoke again at Winter" Haven, predicting that the new marketing agreement would do "the thing that for five years wc have needed to correct this frightfully 1 bad marketing situation." FAIR RETURN HIS AIM Asserting that the national administration had been "trying to rescue the Florida citrus industry." thereto shall be eligible for loans from the Reconstruction Finance Corporation art. Such loans shall not be In excess of such amounts as may be authorised by the Agreements. "131 To Issue licenses permitting processors, associations of produrers, and oinrrs to engage In the handling, in the current of interstate or foreign commerce, of any agricultural commodity or product thereof, or any competing commodity or product theril. Such licenses shall be subject to such terms and conditions, not In conflict with existing acts of congress or regulations pursuant thereto, as may be necessary to eliminate unfair practices or charges that prevent or tend to prevent the effectuation of the declared policy and the restoration or normal economic conditions in the marketing of such commodities or products and the financing 'thereof.

The secretary of agriculture may suspend or revoke any such license, after due notice and opportunity for hearing, for violations of the terms or conditions thereof. Any order of the secretary suspending or revoking any such license shall be final If in accordance with law. Any such person engaged in such handling without a license as required by the secretary under this section shall be subject to a fine of not more than $1,000 for each day during which ft ses of conducting the business of the control committee and of Its share of the expenses of the national sUbllU.Lthm committees, the national coordinator and his assistants. Article VIII is drsigned to relieve a parent organization from the penalty of revocation of a license when without consent of Its part a subsidiary unit violates the agreement. The penalty will be imposed only upon such unit.

Article the National Stabilization Plan, was the most discussed problem considered at the national citrus conference in Washington on July 20 and 21, for, for the first time a plan was proposed for a nation-wide agreement covering California, Florida, Texas and Puerto Rico, under which the movement of fruits and practices within the industry in each state should be regulated with regard not only to the growers In those states hut the common Intrrests of all (he growers nf rilrus fruits throughout lite nation. I think there has been finally worked out a lair plan under which the benefits of the Act will be assured to all states, as would not have been possible had each state set up its own organization under the Act without any correlation between the several slates. The two stabilization committees are definitely restricted in the powers which they may exercise as follows: "The Citrus out nil Committee of any stale or of Puerto Itirn shall, and it is herein authorized on behalf nf the shippers and Mr. Corey declared that In his worlc of market distribution. I repeat that now.

under this legislation. in Washington on the citrus deal he. there will be 100 per cent control, nan naa oniy one enrt in view ana that was to get for Florida growers a fair return from their crops." He made these statements in reply to Section 4 requires each shipper to furnish a bond in the amount of $1,000 for the payment of the assessments and for the protection of the growers. Article XIII and XIV. which Inferences that shippers rather than-.

growers had been aided in the agree-; II Merton L. Corey, Florida citrus expert, pointed the way to prosperity for citrus growers in an address at Lakeland yesterday. mum. nv um unit tut: un deal with administrative matters of tionl Rovernment was forced to deal' I the violation continues." I TITTH PI IV Y'T commerce as shall assure a fair return because of the reasonable adjustment of available supply to consumer demand. While it is not included in the marketing agreement for reasons which I shall explain later.

I think there Is a third desirable step in this program, the advertising of citrus fruits to increase consihner demand. CONTRACTS WITH SHIPPERS; GROWERS BENEFICIARIES I believe it is fitting to explain why this is an agreement between shippers and the secretary of agriculture rather than between growers and the secretary. Manifestly the purpose of the legislation is to improve the condition of the growers, but the federal government cannot write contracts with growers, only with those who handle fruit in interstate commerce. Agreements must, therefore, be written between shippers and the secretary of agriculture. It has been made clear to shippers and their representatives in Washington that the marketing agreements muit have regard first of all for the interests of the growers.

For seven weeks, through a course of many, many dralu of the agreement and examination and reexamination of every provision, the experts of the department, a well as your representatives, have considered with particular care every clause in the agreement to make certain that it would contribute to the paramount purpose ol the act to restore prewar parity for the citrus fruits of Florida. THREE GROUPS REPRESENTED While I nominally represent the three shipping groups of Florida, the Florida Citrus Exchange, the clearing house and a group of independent shippers, constituting a volume control of Florida fruits in excess of 75 per cent, I made it clear to them at the beginning that 1 would endeavor insolar as my limited ability permitted to help to write an agreement and build an organization of the character I have wished for Florida for the past five years, and such an organization, in my original and continuing conception of this problem, must have as its foundation the broad benefits to all the growers of tary shall be final and conclusive." Article HI, Grading and Marketing, provides for I. S. Standard grade and park. The important point In this section is this provision: "Any fruit which may be shipped by shipper, either loose or not ronlained in any standard container, shall be Identified as to grade by stamping, marking or branding each Individual fruit with the U.

S. grade thereof." The Florida control committee will propose at the Washington hearing that no fruits be shipped except in a standard container, thus completely eliminating this provision for bulk shipments. Section 2 a likely condition of market gluts from the unrestrained shipment of fruit, which will make it imp'xsible for growers to realize a rc'iirn. The state control committee is given power, First. To restrict the shipment of the least valuable grades or sizes of generally.

Second. To limit ihe shipment if the least valuable grides nr sizes to the auction mark' is. Third. To prorate the volume of all types of fruit among the Florida shippers when a prorate has been declxied by the national committee. Fourth.

To limit and prorate shipments of ail types of fruits lo the auction markets. Fifth. To limit and prorate among shippers tonnage of tangerine whieh may be shipped durirg any period. The Florida committee decided at its meeting Wednesday to add oranges and grapefrui' to this clause, thus giving the local committee full pr irate power without awaiting a national prorate. Section 3 of this same article, headed Alloeati is Important.

In the allocation of fruits to any individual shioper, (lie basis lor the allotment shall be the fruits controlled by Individual shipper as evident' li by written contracts or as past perfoimanc records indicate will be controlled by shipper during the course of the season, beir to the total fruits within the st.ilc. tile department, arc substantially the same as in the deciduous fruits and other agreements already approved by the secretary of agriculture, and have been inserted at the request of the legal department of Hie agricultural adjustment administration. So, hurriedly I have touched the high points in this agreement. ADVERTISING STRESSED I wish now to speak upon a question which is not covered in the agreement, that of advertising. It is the present view of the agricultural adjustment administration that we cannot bind an objecting shipper to the payment of a per box retain for the purpose of setting up an advertising fund.

They have indicated that their view Is not necessarily unalterable and have acceded to our suggestion that we be afforded an opportunity to present a brief in favor of such a provision to be considered at the Sept. 7 hearing In Washington. If such a provision Is not made binding upon all shippers by Inclusion in this agreement with the secretary, I shall still be hopeful thut we can work out an advertising program. We face an immediate serious problem with respect to grapefruit. The Puerto Rico production has been delayed.

It will reach the market about the same lime as Florida and Texas. The market inevitably will be glutted. We face an early proration. I have always held to the view that the present production of grapefruit in Texas, Puerto Rico and Florida is not over-production but underconsumption. I believe that an attractive, practical, well-organized with the shippers who were engaged in interstate commerce and', that "deals" with individual growers could not have been carried out.

Questioned at Winter Haven about, price fixing, Mr. Corey replied thatj he believed economists in the de-; I pnrtnient of agriculture would not. agree to any such plan on the theory' that It was not economically sound: or even good policy. He said original, drafts of the agreement which in-i eluded price fixing clauses had been; re-written. "Citrus is competitive with other fruits and Too high a price would stop sales.1 A well regulated market will net the; grower the top price better than price fixing plan," he declared.

I Little hope for the bulk fruit-dealer was held out by Mr. Coreyj who predicted shipment of citrus; would be prohibited except when'1 packed and graded In a standard container. Heavy applause followed-his statement that bulk fruit would' not be shipped from the state this, year. If wishes of the control com-, mitlee are met. LAUDS PROGRAM "I predict a definite success ofT this new citrus program," Mr.

Corey i asserted. He explained that "the whole underlying spirit of the agree-1 ment Is to bring better returns to the grower." Mr. Corey spoke ex- temporaneously at Winter Haven. League members voted to send A. R.

Sandlin, Leesburg; H. G. Miller, Orlando, and Geo. Spangler, Winter Haven, to Washington to represent the league at the citrus hearing on Sept. 7.

The three men are the league's candidates for places on the board of control. Tire following di- jt rectors were appointed: Ward Clingensmith. Titusville. growers represented by It to file a petition with the secretary asking (hat he direct the appropriate National Stabilization Committee (cither the orange committee or the grapefruit committees to consider und decide either of the following questions: "1. Whether the CunlrnJ Committee or the shippers of any slate or Puerto Rico have operated contrary to the terms of this agreement with the secretary under the Agricultural Adjustment Act.

"2. Whether the market conditions with reference to the commodity of which either National Committee shall have jurisdiction are such as to require National proration of aggregate shipments of said commodity in furtherance of the purposes of the act and the terms of this agreement." The membership of the National Stabilization Coniniitte for oranges is composed as follows: 4 from California, 4 from Florida and one each from Arizona, Texas and Puerto Rico; Likewise, the Grapefruit National Committee is composed of 4 from Florida, 3 from Texas and one each from California, Arizona and Puerto Rico. the hours of employment so that men out of work because of the perhaps too rapid development of machine production might be reemployed. AGRICULTURAL ACT It is with the companion legislation known as the agricultural adjustment act that you as Florida growers and shippers are called upon to deal. Our aim under this act is to accomplish its purposes as expressed in Title 1 under the headings Declaration of Emergency and Declaration of Policy, which I quote as follows: DECLARATION OF EMERGENCY "That the present acute economic emergency being in part the consequence of a severe and increasing disparity between the prices of agricultural and other commodities, which disparity has largely destroyed the purchasing power of farmers for industrial products, has broken down the orderly exchange of commodities, and has seriously impaired the agricultural assets supporting the national credit structure, it is hereby declared that these conditions in the basic industry of agriculture have affected transactions in agricultural commodities with a national public interest, have burdened and obstructed the normal currents of commerce in such commodities, and render imperative the immediate enactment of title 1 of this act." DECLARATION OF POLICY "Sec.

2. It is hereby declared to be the policy of Congress "(1) To establish and maintain such balance between the production and consumption of agricultural commodities, and such marketing conditions therefor, as will reestablish prices to farmers at a level that will give agricultural commodities a purchasing power with respect to articles that farmers buy, equivalent to the purchasing power of agricultural commodities in the base period. The base period in the case of all-agricultural commodities except tobacco shall be the prewar period, August 1909-July 1914. In the case of tobacco, the base period shall be the post-war period, August, 1919 1929." Paragraph 2 requires that the agreements must be made with the shippers. Paragraph 3 has teeth in it in that it will force every shipper who ships a box of fruit the current of interstate or foreign commerce to have a license.

We are now working upon a draft of that license. It will be in substance a practical copy of the agreement itself, which will require, therefore, that every shipper whether or not he signs this marketing agreement will be forced to operate under a license requiring compliance with the terms of the marketing agreement. A failure to comply with its terms will subject such shipper to a fine of $1,000 for each day such offense continues. SPIRIT OF AGREEMENT The marketing agreement has been read. I wish, therefore, briefly to discuss the more important points in this agreement.

Upon concluding I shall welcome whatever questions you may choose to ask. I hope there is something more than personal pride behind my declaration that I think this is a good agreement, that it does give etfect to the purposes of the act, that it is fair to the growers as well as to shippers, and that it does assure to citrus Florida the type of organization which, in common with other men who have wished well for so many years for the industry, I have considered indispensable to make the growing of citrus fruits profitable in this state. I am confident that this agreement, as written in cooperation with the agricultural adjustment administration, will be approved in the hearing in Washington practically as it stands. Doubtless in some respects it might be Improved, but I remind you that we had to work out an agreement that harmonizes with those of the other states, fit it into the national plan, and make it conform to certain definite requirements of the department of agriculture. I think we should approach a consideration of the agreement with no thought of carping and useless criticism.

I do not fear such an approach in considering a work which has been done so conscientiously for the good of the growers of Florida. Nevertheless, I want To me this has been a very happy experience in one respect, that I LAKELAND. Sept. 1 Complete text of the address by Merton L. Corey before the Florida citrus growers and shippers here today, fot- I have corre to Florida in fulfillment of my promise to the administrators of the agricultural adjustment act that I would submit to groners and shippers of Florida of our many weeks of work in preparing a marketing agreement under the terms of the agri-cultural' aflmstment act.

approved Mav 12. 1933 This occasion brings to my mind a message I received from a democratic Irndrr of national prominence upon the news that Woodrow Wilson had been elected president. The nies'-Hte read. "This is the day we long have sought and mourned because we had it not." STUDIED CITRUS PROBLEMS I have known something of the Florida citrus problem since I entered ofticial life in Washington In 1923 in a system for the making of farm loans. Let me say that I am delighted with amendments to the farm loan act which permit the making of loans upon citrus groves.

Florida heretofore has operated under an unnecessarily harsh rule which, fortunately, is now corrected. I trust there will be sympathetic and helpful cooperation on the part of the federal authorities In establishing the system in Florida under the new rules. Liberality of federal agencies in making these rules must depend in part upon the success attending our efforts to organize the industry, lor, after all, loan value is best measured by the capacity of the property to produce an annual net return. MARKETING ORGANIZATION In 1928, after several years of disastrous marketing, all Florida became aroused to necessity for three major organization functions: First, control of distribution to avoid mar-kwtgluts and famines; second, to adopt a standard grade and pack; and triird, to increase consumer demand by advertising citrus fruits. Such a program, even more essential now than then, must depend for its success upon cooperation of all those engaged In production and handling of citrus fruits.

Heretofore we have been forced to rely upon voluntary action. Broad-visioned, unselfish growers and shippers, though they constitute the great majority of all interests in Florida, cannot make a success of a distribution program when, on the outside, are interests which selfishly seize upon reduced market movement as an opportunity to increase their shipments. THE NEW DEAL Fortunately for the well-being of the citrus growers of the entire nation, the new deal has provided a plan which is based upon principle that no man lives unto himself alone, that he has a distinct social and economic obligation to his neighbor and that he cannot be permitted to pursue an individual policy which will be destructive of the best interests of society as a whole. VALIDITY OF 'ACT SUSTAINED This was recognized in the first test of the agricultural adjustment act, which was decided by a judge In the District of Columbia Supreme Court Tuesday, Aug. 29.

in a suit for an injunction brought by milk dealers in the Chicago district against the administrator of the act, seeking to enjoin him from revoking the license of certain milk dealers who refused to comply with the first marketing agreement which the department had approved. The court in announcing his decision said, "The day has passed when absolute vested rights in contract or property are to be regarded as sacrosanct or above the law. Neither the necessities of life nor commodities affected with a public interest can any longer be left to ruthless competition or selfish greed for their production or distribution. The court finds that the agricultural adjustment act is constitutional and the regulations and licenses promulgated and issued thereunder are reasonable ad valid." ROOSEVELT. LEADERSHIP The new administration has been confronted from the very beginning With stupendous problems.

I am sure (hat at this time of crisis in Aurica no man will think that I in a partisan spirit in commending the bribed vision and masterly statesmanship of Pres. Roosevelt. He took rems of government when disaster threatened and despair darkened homes and business houses of most American people. In a short time he has revived new hope; business is getting better and have witnessed a degree of fair ness and consideration for the in advertising campaign, based upon terests of the grower by all the shippers of Florida surpassing my National rui atlon of orange ship-1 ments shall not be ordered except I fondest hopes. I have taken occa demonstrated facts with respect to both grapefruit and oranges can de much to relieve the necessity for sion sometimes in the past, as I felt moves were being made destructive to the best interests of the growers the imposition of early and drastic of Florida, to condemn shippers and shipping groups.

I am far happier that I can take this occasion to commend instead of condemn, for I can truthfully say that all the shippers in the Washington conference and by correspondence have been fair, broadminded and unselfish. We must continue this spirit in the new organization. NEW SOCIAL OBLIGATIONS It has taken us a long time to learn in America that there must prorates. Somebqdy has said with respect to this agreement, "You have provided many ways to keep fruit off the market, but no way is provided to stimulate the of fruit into the market." That criticism is just and it can be met only by a wise advertising policy. The representatives from Texas and Puerto Rico, with whom I have worked In Washington, are fully alive to this situation and are anxious to engage in a Joint advertising program with Florida.

CONCLUSION I have finished this accounting of my stewardship. I hope it meets with your approval. If there have been mistakes, they have been of the mind, not of the heart. I am enthusiastic over the possibilities of this great national machinery to rescue the industry in this state, as well as the- other citrus sections. I believe It is the answer to the REDUCE OVERPRODUCTION An amendment will be proposed permitting the control committee to consider shipper's complete retold rather than rcstrictins It to past performance.

If a shipper, due lo practical conditions In hanalm? the fruit of hi; growers, finds that it is Impractical ta avoid a minor overshipnient lie must reduce his shipment the next stcccedirig w-e'-c ny the amount of f.i.ch or if he docs nu reduce the next succeeding week then In the following week his reduction must Ui doubled. ALLOCATION OF BENE! ITS "Eacl? shipper agrees equitably to distribute to each grower served by shipper the beiuf.ts and burdens cf this agreement- insoiar as the practical operations of shipper permit." Literally, days if not weeks, vuv devoted to a discussion of this clause with the department of agriculture. At least a score of clauses were drafted in an effort to make sure that the shippers would fairly distribute their prorata share among the growers. We have finally sealed upon this provision. The shipper is bound to comply therewith.

If he falls, the grower may appeal to the control committee for relief and if not satisfied with the decision ol the control committee may appeal to the secretary of agriculture himself. The provision for trading ol prorates upon the approval of the control committee Is, of course, designed to move as much volume out of the state as conditions will permit by allowing a shipper to trade his prorate to another during a period when he is unable to use his allotment. The certificates section will provide a conventient form for check Under this legislation, growers of upon the affiramtiVR vote of not less than 7 members of the committee, and of grapefruit except upon the affirmative vote of not than members. If Puerto Rico iails lo complete its marketing agreement by the tune the agreements of California, Texas and Florida are approved, the National Committee shall be set up disregarding Puerto Rico and the vote necessary to order a proration shall be reduced by one, that is to say, 6 voles may declare a national proration for oranges and 5 for grapefruit. Article "Vhe basis for national proration shall he the official estimates of the department of agriculture." This Is a short section, but exceedingly Important.

When the time comes for national proration, human nature being what is Is, whether It's your nature or mine, we recognize that the estimates from Florida as well as those from the other states will be extremely librral. I do not believe that we could prevail upon the other states to accept the estimates of the Control Committee of Florida any more than we would accept their estimates as a hesis for prohibiting the movement of fruits from Florida. We must reiy upon an agency certain basic commodities, to wit: wheat, cotton, field corn, hogs, rice, tobacco and milk and its products are given the power to reduce pro duction for better control of markets, and through a processing tax levied upon consumers or a definite price fixing plan, the machinery is provided for lifting the net re turn to farmers on these classes of products. problems we have been considering In this respect growers of perish able fruits and vegetables and the special crops not defined as basic are less fortunate. If they reduce production no compensation is paid for such commodities as are kept Brevard county; A.

J. Altman, Wau- j. chula, Hardee county; Guy Maxcv, Scoring, Highlands county; A. W. Wilson, Hlllsboro; Eli Walker, Vera i Beach, Indian River county; A.

Sandlin, Leesburg. Lake county: Dr. I G. E. Albright, Wiersdale, Marion county; H.

G. Miller, Orlando, Or-" ange county; Frank J. Senn, Winter Haven, Polk county, and Frank K. Anderson, Altamonte, Seminole county. H.

B. Miller of Orlando, also spokj attacking bulk fruit shipments, and praising advertising as a means oi 5 increasing citrus sales, calling upoii growers to strive for "quality fruit and asking for cooperation from ths citrus industry with state and na tlonal governments. COORDINATOR PLANNED Under a national marketing plait approved by delegations from Florida, California and Texas clt rus fruit shipments from variouj producing areas would be coordlnat ed through national citrus stabillza- tlon committees for oranges and grapefruit. These would cooperat4 5 with a national coordinator appolntj ed by the secretary of agriculture 'j in an effort prevent market glut and Improve and stabilize prices'. Including Puerto Rico In the na tlonal grapefruit plan is provided, in the agreements, but its operation is not contingent on the island's; A participation.

Efforts are being; made to obtain agreement on a marketing plan for the territory, 4 Florida would have four repre i sentatlves on both the orange and grapefruit committees. California would be represented by four on tho orange and one on the grapefruit! bodies; Texas three on the grape-' fruit and one on the orange; and I Arizona and Puerto Rico one on -i each. WOULD LIMIT SHIPMENTS i During periods of serious market- ing conditions, the committees would be empowered lo limit shipments to continental United States a and Canada and allocate on a pro rata basis shipments from each state. Within producing territories, pro- ration would be governed by control committees set up under separate marketing agreements. a Shippers, in turn, would extend the allocating principle to growers.

Shippers' observance of provisions of the proposed agreements would be assured by requiring them to have licenses. The agreements submitted set up codes of competition designed to 1 outlaw certain rade practices, in- eluding price-cutting, and stand- be a degree of modification of our individualistic and capitalistic notions about business and government. I am not thinking in terms of the division of wealth or of the state control of the business and social activities of our people. I have no patience with the depressing doctrine of Soviet Russia that takes from youth its initiative for high endeavor; but I do recognize that the over mechanization of America, the fearfully long ranks of the unemployed, the devastating breath of destruction which has swept through the groves and farms of America have forced upon us the recognition of social obligations requiring some modification of our old individualistic and capitalistic doctrines. Wise business men now have come to realize, as I think the Florida shippers now understand, after weeks of debate and analysis of this law and the agreement we have written in fulfillment thereof, that we are indeed "in the same boat together," that the best way for the shipper to assure his own business success is to cooperate in making certain that the producers of citrus fruits shall secure a fair price return that they may pay then-debts, improve their groves and enjoy the benefits of a regulated instead of suffer from a completely disorganized industry.

out of the current of Interstate commerce. Producers of perishables, particularly, can neither definitely control the supply nor exactly ad Just the marketing to consumer de mand, but it can be approximated ing fruit movements and possibly It was the belief of congress, as I am sure it is the expectation of every student of this legislation that with 100 per cent control of cit rus fruits moving in interstate commerce, the purpose of this legislation, to restore to farmers the prewar parity of all agricultural commodities, will be accomplished. FARMER BUYING POWER Pretty generally, we still have a long way to go to restore agriculture to its prewar basis. I clipped from a Florida paper Tuesday morning a statement of the Bureau of Agricultural Economics at Washington, reporting that purchasing power of farmers as of Aug. 15 was 64 per cent of the average for the you to be as unsparing in your criticism as your Judgment dictates you should, and I request further that now that we have laid this, our completed work before you, that arrangements be made before this meeting adjourns that a committee representative of the growers be selected to attend this hearing in Washington on Sept, 7th.

Personally, I shall be extremely glad to have the benefit of their counsel In the new and troublesome questions which may arise at that hearing. I am sure such a committee, truly representative of the growers of Florida, will cooperate as helpfully as the shippers have in the preliminary work upon this matter. ANALYSIS OF AGREEMENT Now for a brief resume of the agreement. The first page Is devoted to the whereases, reciting of course conditions in this industry making necessary the writing of an agreement under the agricultural adjustment act. Article 1 defines the terms used in the agreement.

Article II provides for the Florida Control committee which shall be composed of 12 members, three to be selected by the clearing house, three by the exchange and three by the shippers not affiliated with the clearing house or the exchange, such members to be shippers as well as growers. The other three are growers only who have no direct or indirect connection with any shipping organization unless it be a cooperative. They are chosen one by the committee of fifty of the clearing house, one by the association of presidents connected with the Florida Citrus Exchange and one by those shippers not connected with either the clearing house or the echange. The manifest purpose of this agreement to protect the interests of the growers is apparent in Section 2 cr Article II. Appeal.

"Section 2. Appeal. Any grower or shipper shall have the right to appeal to the secretary from any decision, determination or order of the Florida control committee. The decision of the seen- for so many years. I am confident that if growers and shippers in Florida continue to be as fair, as unselfish and as progressive as they have been during the past two months, while we have worked out this agreement, the success of this venture is assured.

We now have as our partner in this enterprise the government of the United States Itself. It proposes to cooperate generously with those who work to correct the evils in the industry. It will use the mailed fist upon those whose selfishness blinds them so that they cannot interpret the high purpose of the nation under the new deal to regulate and control the acts of the few for the good of all. We are facing a new and fairer economic reorganization. We shall not turn back.

Our government offers the benefits of this program to all who will cooperate in setting up the necessary machinery. I am confident that Florida will seize this opportunity to correct its citrus marketing situation, with assurance that we shall at last realize the hopes of the many years past that citrus fruit growers may enjoy a fair income from a product, which, under proper organization, is the most promising of all those produced in America. Watermelon Crop Extension Planned LEESBURG, Sept. 1 Among watermelon growers who made good this year and who are already planning their crop for next season, are E. E.

Edge and E. M. Rice of the Groveland district. They are jointly having 150 acres near Empire Church cleared, ready for planting of melons when the proper time arrives, and Mr. Rice is clearing 50 acres on the highway between Groveland and Mascotte.

Clearing the land is affording employment for number. which has no selfish motive to serve and which has a bureau of crop estimates fully equipped to make an impartial estimate of the production in all the territory affected. We have, therefore, selected this agency and Its estimates will be binding upon the State Control Committees and the National Committees. NATIONAL COORDINATOR Article XI. Provision is made for the selertion by the secretary, lo be paid by the industry, of a national coordinator who shall represent the secretary in all matters in which said coordinator is by the secretary authorized to act.

He is authorized to receive data from the various committees, must attend all meetings of the national stabilization commit-, tee, assist said committees in the performance of their duties and advise and assist the control committees of the several states and and Puerto Rico. If the national committees or either of them vote a national prorate but are unable to agree upon a formula for such national prorate, the national coordinator is given power to establish such a formula and is required to assist in the application thereof. He is given power to perform such other duties as either national committee may request. We must recognize that it is quite impossible to anticipate all the problems which may arise during the course of the administration of this agreement. Conditions are constantly changing In the perishable marketing business.

It Is, of course, important, therefore, that a national coordinator be chosen who has the ability to breathe life lor collection of assessments. Article IV, Regulation of Charges. The shippers are held to the three years' average when they have been in business for three years. They may Increase their charges for one or more of three reasons, and then only upon authority of the control committee: 1. That labor costs have Increased.

2. That costs of materials have Increased. 3. That the service rendered is new or special. Article "Reports," needs no special exposition for it provides for detail reports lor the information of the secretary of agriculture and the control cqmmittee to assist them and the national coordinator in the administration of the agreement under the act.

Article VI sets forth eight prohibited trade practices. These are intended to, and I think do, reach certain evils which have grown up in the business. Manifestly they will afford protection to the growers. I think I shall not take the time to discuss each of them and will await questions thereon if any person In the audience does not understand the meaning of any of these provisions. Article VII provides for the collection by the control committee of each shipper's prorata share, based upon volume, of the expen QUOTATIONS FROM THE ACT I quote from the agricultural adjustment act paragraphs two and three of Section 8, because these two sections include most of the provisions of the act upon which we relied in writing the marketing agreement.

"(2) To enter Into marketing agreements with processors, associations of producers, and others engaged in the handling, in the current of interstate or foreign commerce of any agricultural commodity or product thereof, after due notice and opportunity for hearing to interested parties. The making of any such agreement shall not be held to be in violation of any of the anti-trust laws of the United States, and any such agreement shall be deemed to be lawful: Provided, That no such agreement shall remain in force after the termination of this act. For the purpose of carrying out any such agreement the parties ardize grading. will continue to improve and we all, without regard to party affiliations, will applaud the underlying purposes of the new deal. Chief among problems which the new administration faced have been those of returning the 12.000,000 unemployed to work, and the even greater problem of providing not only a living income for farmers and fruit growers but a fair return upon their invested capital that they might keep alive the purchasing power of the millions of people who today share in one form or another ownership of securities representing twelve billion dollars of farmer indebtedness.

Congress provided in the industrial recovery act a plan for increasing the purchasing power of industrial labor and the spread oil prewar period 1909 to 1914. This represents a drop from 71 per cent on July 15. which drop was caused by two conditions; the selling price of the products of the fanner and an increase in the cost of materials and labor engaged in production. Materials on Aug. 15 aver-8ged 12 per cent over prewar prices.

This tells the story with agricultural products 36 per cent below normal and the materials the farmer must buy 12 per cent above normal. We must bridge that gap. It can be accomplished only through, first, the most efficient operation of the farm or grove unit possible at such labor and material costs as will not seriously impair the improved price level we are fighting for; and, second, such a complete organization of the citrus moving into interstate Hearing Unset ALTON, Ga. () Rep. M.

C. Tarver chairman of the house sub-committee named to investigate official conduct of Judge Halstead L. Ritter of the southern, district of Florida, says a hearm? will be held in Miami probably in October. Tho congressman said no dale had yet been set..