2. In consideration of the loan evidenced by the aforementioned note, the undersigned represents to and agrees with all holders of the note as follows:

That the cotton represented by the warehouse receipts listed herein is of the crop of 1933; was produced or acquired by or for the undersigned as landowner, landlord, or tenant; that he is the owner; has the legal right to pledge same; and that the beneficial title thereto is and always has been in the undersigned producer.

LIST OF LIEN HOLDERS AND THEIR WAIVER AND CONSENT TO PLEDGE

The party making this loan agreement certifies that the cotton covered by this agreement is free and clear of any and all liens and encumbrances except in favor of the lien holders listed herein below. If no liens, insert "None." Names of lien holders, including Fed-on eral Agencies:

BANK OF Edinburg.
ELI LANGFORD.

I (we) certify that I (we) are the herein-named holders of liens on the cotton covered by this agreement and hereby authorize (1) the pledge of the same in accordance with this agreement, and (2) redelivery of warehouse receipts payment of the loan, and (3) payment of any proceeds of this loan and of the proceeds of the sale of such cotton to the party making this loan agreement. Signatures of lien holders (or agents with duly executed authority firmly attached) ELI LANGFORD.

3. Any holder may declare the note immediately due and payable upon the occurrence of any of the following events:

(a) When and so long as the price of middling %-inch spot cotton on the New Orleans market, as determined by the Bureau of Agricultural Economics of the United States Department of Agriculture, shall be at or above 15 cents per pound.

(b) Upon discovery that the undersigned has made any misrepresentation herein or in connection with the loan evidenced by said note.

(c) Upon any failure on the part of the undersigned to comply with the agreements referred to in paragraph ten (10).

4. After July 31, 1934, or on the happening and continuance of any of the foregoing events, any holder is authorized to place all or any part of said cotton in any pool or pools with any other cotton held by the holder under generally similar loan agreements, and, either by pool or separate contract, to sell, assign, transfer, and deliver the cotton or cotton documents, evidencing title thereto, at such time, in such manner, for cash or upon such terms and conditions, as such holder may determine, at any cotton exchange, or elsewhere, or through any agency, at public or private sale, for immediate or future delivery, and without demand, adverwisement, or notice of the time and place of sale or adjournment thereof or othersiwe; and upon such sale, the holder may become the purchaser of the whole or any part of such collateral security.

5. In case of any sale of collateral, after deducting all fees, costs, and expenses, incident to insuring, carrying, handling, and marketing the collateral and accounting for the proceeds thereof, including reasonable attorney fees, the holder shall apply the residue toward the payment of the above-mentioned note, returning the overplus, if any, only to the undersigned, or his personal representatives, without right of assignment or substitution of any other party. The undersigned shall be and remain liable to the holder for any deficiency only in the event that he does not reduce cotton acreage or production in accordance with the plan or program of the Secretary of Agriculture as referred to herein, or has made any misrepresentations herein or in connection with the loan represented by the above-mentioned note.

6. Upon purchase by the Commodity Credit Corporation, any holder of the above-mentioned note may receive, in lieu of insurance, 5 cents per bale of cotton for each whole month or part thereof from the date of the note to the first day of the month of purchase, and any amount so paid by the Commodity Credit Corporation shall be a charge on the cotton.

7. The undersigned agrees that if any Federal agency or instrumentality shall become the holder of the above-mentioned note, it may, before or after maturity, move the collateral cotton from one storage point to another and pay freight; may compress the commodity; may store separately, in block, or otherwise; may insure or reinsure against any risks, or otherwise handle or deal with the commodity, as may be deemed appropriate and proper, subject to the terms of this loan agree

ment, releasing, substituting, and obtaining any and all instruments and documents, and paying or discharging any accrued or accruing charges or expenses as may in any way be appropriate or necessary therefor. Any costs and expenses connected with such handling shall be a charge against the commodity, payable out of any proceeds thereof.

8. The undersigned, and the holder by acceptance of this agreement, agree that any factor, cooperative marketing association, broker, commission merchant, or other selling agency (all hereinafter in this paragraph called the "agent"), with whom the cotton described herein is listed or delivered for sale, shall have the right to sell, subject to the terms of this agreement, said cotton at any commission agreed upon between the agent and the undersigned; except that if the sale is made while the note is in default the charges paid said agent shall not exceed 85 cents per bale or 2 percent of the gross sale price, whichever is less. The name and address of said agent must appear in the space at the end of this paragraph and an original copy of the contract, containing a consent to this paragraph, signed by the undersigned and the agent, must be attached hereto. Upon the failure of the agent to comply promptly with the directions of the holder, said right of sale shall immediately terminate without obligation of any kind on the holder or undersigned. For such commission the agent agrees to perform all customary services of marketing and factoring, including without limitation, listing, sampling, classing, showing, selling, and accounting to the holder. After maturity of the above-mentioned note, the holder shall have the right to direct the price, time, manner, and other details of sale. The holder may at any time terminate this agreement upon payment of 35 cents per bale on unsold cotton to the agent for handling as provided in this paragraph.

(Name-Agent)

(Address)

9. The undersigned further warrants for the benefit of any holder of the note, other than the payee, that he has no defenses to said note or set-offs or counterclaims against the payee; that none will be claimed which may hereafter arise against any prior party and that in case of any judicial proceedings on said note by any such holder he hereby waives the right to any and all defenses, counterclaims, or set-offs against any or all prior parties.

10. Inasmuch as said note is eligible for discount or purchase by the Commodity Credit Corporation, an agency of the United States Government, the undersigned agrees, with and for the benefit of the United States, to enter into such agreements, to do and perform such acts, and to reduce his acreage or production of cotton in such amounts and in such manner as may be required, to conform to and participate in any general plan or program presented by the Secretary of Agriculture for the reduction in acreage or production of cotton for market in 1934; provided, such required reduction shall not exceed forty percent (40%) of the average cotton acreage, planted by the undersigned during the 5 years ending December 31, 1932; and provided further, that such reduction agreement makes provision for the payment of such rentals and/or benefits as are provided for in the 1934 acreage reduction program. Neither the payment of said note nor any actions taken pursuant to this agreement shall discharge or terminate the obligations under this paragraph 10.

11. The undersigned, all lien holders and their agents, by executing waiver and consent in paragraph two (2), and all warehousemen, by executing certificate and waiver in paragraph one (1) agree that they and each of them have full knowledge of the provisions of section 16 (a) of the Reconstruction Finance Corporation Act as amended,' and have made the representations and statements contained in this loan agreement, for the purpose of influencing the Reconstruction Finance Corporation to acquire the above-mentioned note by purchase, discount, or rediscount, or as security for a loan to the payee or its assignees, or otherwise, or to extend or renew credit in reliance thereon.

12. Unless the note is made payable to the Commodity Credit Corporation the undersigned represents he received on the day the above-mentioned note is dated the full amount thereof, without deductions for interest, commissions, storage, insurance, or other charges, except deduction of a charge for handling the documents, which has not exceeded fifteen (15) cents per bale, including

1 Section 16 (a) of the Reconstruction Finance Corporation Act provides: "Whoever makes any statement knowing it to be false, or whoever willfully overvalues any security, for the purpose of obtaining for himself or for any applicant any loan, or extension thereof by renewal, deferment of action, or otherwise, or the acceptance, release, or substitution of security therefor, or for the purpose of influencing in any way the action of the Corporation, or for the purpose of obtaining money, property, or anything of value, under this act, shall be punished by a fine of not more than $5,000, or by Imprisonment for not more than 2 years, or both."

any bank exchange, and hereby acknowledges that he has received a copy of this agreement and the above-mentioned note. Read, considered, and signed.

(Endorser sign exactly as written in above endorsement)

The Commodity Credit Corporation or Reconstruction Finance Corporation may refuse to recognize or accept endorsements containing additions, erasures, or alterations.

76TH CONGRESS 3d Session

SENATE

{

REPORT No. 1830

C. B. REAGH

JUNE 12 (legislative day, MAY 28), 1940.—Ordered to be printed

Mr. TOWNSEND, from the Committee on Claims, submitted the

following

REPORT

[To accompany H. R. 2513)

The Committee on Claims, to whom was referred the bill (H. R. 2513) for the relief of C. B. Reagh, having considered the same, report favorably thereon with the recommendation that the bill do pass without amendment.

The facts are fully set forth in House Report No. 1857, Seventysixth Congress, third session, which is appended hereto and made a part of this report.

[H. Rept. No. 1857, 76th Cong., 3d sess.]

The Committee on Claims, to whom was referred the bill (H. R. 2513) for the relief of C. B. Reagh, having considered the same, report favorably thereon with an amendment and recommend that the bill as amended do pass.

The amendment is as follows:

At the end of the bill add: ": Provided, That no part of the amount appropriated in this Act in excess of 10 per centum thereof shall be paid or delivered to or received by any agent or attorney on account of services rendered in connection with this claim, and the same shall be unlawful, any contract to the contrary notwithstanding. Any person violating the provisions of this Act shall be deemed guilty of a misdemeanor and upon conviction thereof shall be fined in any sum not exceeding $1,000."

The purpose of the proposed legislation is to pay the sum of $500 to C. B. Reagh, of Belden, Miss., in full settlement of all claims against the United States for losses sustained on account of personal injuries received by his minor son, Robert Reagh, when he was struck on May 6, 1937, near Acton, Tenn., by a motor vehicle in the service of the Civilian Conservation Corps.

STATEMENT OF FACTS

On May 6, 1937, a Government vehicle, operated in connection with War Department activities of the Civilian Conservation Corps, was proceeding in a southerly direction on the Shiloh-Corinth Highway, about one-fourth of a mile north of Acton, Tenn. At the time the Government driver was engaged on official business, transporting enrollees of Camp MP-7, Corinth, Miss., from the work project to the camp for lunch.