44 DEPARTMENT OF AGRICULTURE




 General Legislation Affecting

 Agricultural Cooperation

 Most cooperatives are interested in three types of
general legislation. The first class includes the cooperative
marketing acts and other acts permitting the formation and
operation of cooperatives on a basis not permitted under the
general cooperation laws. The second class of laws include
such features as found in the exemption provisions of the
Federal Revenue Act, in the financing features of the Farm
Credit Act, and in the anti-trust exemption contained in
the Capper-Volstead Act. The third class embraces the
many laws, both State and Federal, which regulate business
and business practices, which impose taxes, and which
govern the relations between employed and employee. Ex-
amples of this type of legislation are the Robmson-Patman
Act, Social Security Act, Wagner-Connery Labor Act, and
laws such as governing cold storage and warehouse com-
panies.

 The Robmson-Patman Act prohibits discrimination in
price between purchasers of commodities of like grade and
quality. To accomplish this, certain discrimination in
price and advertising and brokerage allowances have been
made unlawful. This law requires a seller to treat all of
his customers equally, or at least on proportionately equal
terms. It applies to every transaction of interstate com-
merce and it applies indirectly to intrastate sales. Those
responsible for the management of cooperatives engaged
in buying or selling goods in intrastate commerce, should
become familiar with the provisions of this act and endeavor
to keep up to date with the rules and regulations imposed by
the agency responsible for its administration.

 The Social Security Act is legislation of a different
character. It provides, among other things, for old-age