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of livestock feed. (Sept. 1, 1937, ch. 898, title II, § 212, 50 Stat. 909.)

PROCLAMATION No. 2551

April 13, 1942, 7 F. R. 2826
SUSPENSION OF OPERATION OF SECTIONS 1111-1122
Proclamation provided in part:

"Whenever the President finds and proclaims that a national economic or other emergency exists with respect to sugar or liquid sugar, he shall by proclamation suspend the operation of title II or III above, which he determines, on the basis of such findings, should be suspended, and, thereafter, the operation of any such title shall continue in suspense until the President finds and proclaims that the facts which occasioned such suspension no longer exist ..."; and

"WHEREAS the outbreak of war has resulted in dislocation of sugar supplies from certain customary sources; and a shortage of sugar required to meet the needs of consumers; and

"WHEREAS such dislocation of supplies has brought about a shortage of sugar required to meet the needs of consumers; and

“WHEREAS it is possible to obtain sugar from areas not included, or not adequately

included, in the quota provisions of that Act: "Now, THEREFORE, I, FRANKLIN D. ROOSEVELT, President of the United States of America, acting under and by virtue of the authority vested in me by the foregoing provision of the Sugar Act of 1937, as amended, do hereby find and proclaim that a national economic emergency exists with respect to sugar and do by this proclamation suspend the operation of title II of that Act."

SUBCHAPTER III.-CONDITIONAL-PAYMENT PROVISIONS § 1131. Conditions of production.--The Secretary is authorized to make payments on the following conditions with respect to sugar or liquid sugar commercially recoverable from the sugar beets or sugarcane grown on a farm for the extraction of sugar or liquid sugar:

(a) Child labor.--That no child under the age of fourteen years shall have been employed or permitted to work on the farm, whether for gain to such child or any other person, in the production, cultivation, or harvesting of a crop of sugar beets or sugar cane with respect to which application for payment is made, except a member of the immediate family of a person who was the legal owner of not less than 40 per centum of the crop at the time such work was performed; and that no child between the ages of fourteen and sixteen years shall have been employed or permitted to do such work, whether for gain to such child or any other person, for a longer period than eight hours in any one day, except a member of the immediate family of a person who was the legal owner of not less than 40 per centum of the crop at the time such work was performed. The Secretary is authorized to make payments, notwithstanding a failure to comply with the conditions provided in this subsection, but the payment made with respect to any crop shall be subject to a deduction of $10 for each child for each day, or a portion of a day, during which such child was employed or permitted to work contrary to the foregoing provisions of this subsection, in the 1940, and subsequent crops.

(b) Wage standards. That all persons employed on the farm in the production, cultivation, or harvesting of sugar beets or sugarcane with respect to which an application for payment is made shall have been paid in full for all such work, and shall

have been paid wages therefor at rates not less than those that may be determined by the Secretary to be fair and reasonable after investigation and due notice and opportunity for public hearing; and in making such determinations the Secretary shall take into consideration the standards therefor formerly established by him under sections 601-608, 608a-608c, 608d-612, 613619, 620, 623, 624 of this title, and the differences in conditions among various producing areas: Provided, however, That a payment which would be payable except for the foregoing provisions of this subsection may be made, as the Secretary may determine, in such manner that the laborer will receive an amount, insofar as such payment will suffice, equal to the amount of the accrued unpaid wages for such work, and that the producer will receive the remainder, if any, of such payment.

(c) Proportionate share production.—That there shall not have been marketed (or processed) an amount (in terms of planted acreage, weight, or recoverable sugar content) of sugar beets or sugarcane grown on the farm and used for the production of sugar or liquid sugar to be marketed in, or so as to compete with or otherwise directly affect interstate or foreign commerce, in excess of the proportionate share for the farm, as determined by the Secretary pursuant to the provisions of section 1132 of this title, of the total quantity of sugar beets or sugarcane required to be processed to enable the area in which such sugar beets or sugarcane are produced to meet the quota (and provide a normal carry-over inventory) as estimated by the Secretary for such area for the calendar year during which the larger part of the sugar or liquid sugar from such crop normally would be marketed.

(d) Payment of producer by processor.That the producer on the farm who is also, directly or indirectly, a processor of sugar beets or sugarcane, as may be determined by the Secretary, shall have paid, or contracted to pay under either purchase or toll agreements, for any sugar beets or sugarcane grown by other producers and processed by him at rates not less than those that may be determined by the Secretary to be fair and reasonable after investigation and due notice and opportunity for public hearing.

(e) Soil preservation.—That there shall have been carried out on the farm such farming practices in connection with the production of sugar beets and sugarcane during the year in which the crop was harvested with respect to which à payment is applied for, as the Secretary may determine, pursuant to this subsection, for preserving and improving fertility of the soil and for preventing soil erosion, such practices to be consistent with the reasonable standards of the farming community in which the farm is situated.

The conditions provided in subsection (a) and in subsection (b) with respect to wage rates, of this section shall not apply to work performed prior to the enactment of this chapter; and the condition provided in subsection (c) of this section shall not apply to the marketing of the first crop harvested after the enactment of this chapter from sugar beets or sugarcane planted prior to such enactment. (Sept. 1, 1937, ch. 898, title III, § 301,

50 Stat. 909; June 25, 1940, ch. 423, 54 Stat. 571; Dec. 26, 1941, ch. 638, § 2, 55 Stat. 872.)

PAYMENTS TO MAINLAND PRODUCERS FOR 1940 CROPS EXCEEDING

PROPORTIONATE SHARES Res. Oct. 10, 1940, ch. 839, § 1, 54 Stat. 1092, provided: “That no payment under the Sugar Act of 1937 with respect to the 1940 crop shall be withheld from any producer in the mainland cane-sugar area, because of the marketing (or processing) of sugarcane in excess of the proportionate share for the farm, if the acreage of sugarcane grown on the farm and marketed (or processed) for sugar in the crop year 1940 is not in excess of the acreage of sugarcane for sugar planted prior to January 1, 1940 but payments shall be made only with respect to the proportionate share acreage established for the farm under the provisions of such Act, and the following deductions shall be made from such payments, on account of any acreage of sugarcane grown on the farm and marketed (or processed) for sugar in the crop year 1940 which is in excess of (1) 110 per centum of the proportionate share for the farm, or (2) the proportionate share for the farm plus twenty-five acres, whichever is the greater; for so much of such excess as does not exceed five hundred acres, a deduction of $10 per acre; for so much of such excess as exceeds five hundred acres, a deduction of $20 per acre: Provided, That the foregoing provision shall be effective only if the Secretary determines that the actual production from the 1940 crop acreage shall not exceed the estimated production of the 1940 proportionate share acreage of five hundred and five thousand tons."

CROSS REFERENCE Delegation of regulatory functions of Secretary of Agriculture, see section 516a et seq. of Title 5, Executive Departments and Government Officers and Employees.

§ 1132. Quantity of sugar; time for payments (a) Amount as determined by Secretary.—The amount of sugar or liquid sugar with respect to which payment may be made shall be the amount of sugar or liquid sugar commercially recoverable, as determined by the Secretary, from the sugar beets or sugarcane grown on the farm and marketed (or processed by the producer) not in excess of the proportionate share for the farm, as determined by the Secretary, of the quantity of sugar beets or sugarcane for the extraction of sugar or liquid sugar required to be processed to enable the producing area in which the crop of sugar beets or sugarcane is grown to meet the quota (and provide a normal carryover inventory) estimated by the Secretary for such area for the calendar year during which the larger part of the sugar or liquid sugar from sạch crop normally would be marketed.

(b) Determination of proportionate share of farm. In determining the proportionate shares with respect to a farm, the Secretary may take into consideration the past production on the farm of sugar beets and sugarcane marketed (or processed) for the extration of sugar or liquid sugar and the ability to produce such sugar beets or sugarcane, and the Secretary shall, insofar as practicable, protect the interests of new producers and small producers and the interest of producers who are cash tenants, share-tenants, adherent planters, or share-cropners.

(c) Date payments to commence.—Payments shall be effective with respect to sugar or liquid sugar commercially recoverable from sugar beets and sugarcane grown on a farm and which shall have been marketed (or processed by the producer) on and

after July 1, 1937. (Sept. 1, 1937, ch. 898, title III, § 302, 50 Stat. 910.)

CROSS REFERENCE Delegation of regulatory functions of Secretary of Agriculture, see section 516a et seq. of Title 5, Executive Departments and Government Officers and Employees.

8 1133. Acreage abandonment and crop deficiency. In addition to the amount of sugar or liquid sugar with respect to which payments are authorized under subsection (a) of section 1132 of this title, the Secretary is also authorized to make payments, on the conditions provided in section 1131 of this title, with respect to bona-fide abandonment of planted acreage and crop deficiencies of harvested acreage, resulting from drought, flood, storm, freeze, disease, or insects, which cause such damage to all or a substantial part of the crop of sugar beets or sugarcane in the same factory district (as established by the Secretary), county, parish, municipality, or local producing area, as determined in accordance with regulations issued by the Secretary, on the following quantities of sugar or liquid sugar.: (1) With respect to such bona-fide abandonment of each planted acre of sugar beets or sugarcane, one-third of the normal yield of commercially recoverable sugar or liquid sugar per acre for the farm, as determined by the Secretary; and (2) with respect to such crop deficiencies of harvested acreage of sugar beets or sugarcane, the excess 80 per centum of the normal yield of commercially recoverable sugar or liquid sugar for such acreage for the farm, as determined by the Secretary, over the actual yield. (Sept. 1, 1937, ch. 898, title III, § 303, 50 Stat. 911.)

§ 1134. Computation of payments; recipients thereof-(a) Base rates.—The amount of the base rate of payment shall be 80 cents per hundred pounds of sugar or liquid sugar, raw value.

(b) Farm unit as basis of calculation.—All payments shall be calculated with respect to a farm which, for the purposes of this chapter, shall be a farming unit as determined in accordance with regulations issued by the Secretary, and in making such determinations, the Secretary shall take into consideration the use of common work stock, equipment, labor, management, and other pertinent factors.

(c) Total payment. The total payment with respect to a farm shall be the product of the base rate specified in subsection (a) of this section multiplied by the amount of sugar and liquid sugar, raw value, with respect to which payment is to be made, except that reduction shall be made from such total payment in accordance with the following scale of reductions: That portion of the quantity

Reduction of sugar and liquid sugar

hundredweight of such following intervals of short

portion :

$0.05 700 to 1,000.

.10 1,000 to 1,500.

.20 1,500 to 3,000.

.25 3,000 to 6,000.

.275 6,000 to 12,000

.30 12,000 to 30,000.

.325 More than 30,000.

.50

in the base rate of payment DET

which is included within the

tons, raw value:

350 to 700.

(d) Persons entitled to payments.-Application for payment shall be made by, and payments shall be made to, the producer or, in the event of his death, disappearance, or incompetency, his legal representative, or heirs: Provided, however, That all producers on the farm shall signify in the application for payment the per centum of the total payment with respect to the farm to be made to each producer: And provided further, That payments may be made, (1) in the event of the death, disappearance, or incompetency of a producer, to such beneficiary as the producer may designate in the application for payment; (2) to one producer of a group of two or more producers, provided all producers on the farm designate such producer in the application for payment as sole recipient for their benefit of the payment with respect to the farm; or (3) to a person who is not a producer, provided such person controls the land included within the farm with respect to which the application for payment is made and is designated by the sole producer (or all producers) on the farm, as sole recipient for his or their benefit, of the payment with respect to the farm. (Sept. 1, 1937, ch. 898, title III, § 304, 50 Stat. 911; Dec. 26, 1941, ch. 638, § 3, 55 Stat.)

§ 1135. Cooperation with Secretary by certain agencies In carrying out the provisions of Subchapters II and III of this chapter, the Secretary is authorized to utilize local committees of sugar beet or sugarcane producers, State and county agricultural conservation committees, or the Agricultural Extension Service and other agencies, and the Seoretary may prescribe that all or a part of the expenses of such committees may be deducted from the payments herein authorized. (Sept. 1, 1937, ch. 898, title III, § 305, 50 Stat. 912.) $ 1136. Finality of Secretary's determinations.

The facts constituting the basis for any payment, or the amount thereof authorized to be made under this subchapter, officially determined in conformity with rules or regulations prescribed by the Secretary, shall be reviewable only by the Secretary, and his determinations with respect thereto shall be final and conclusive. (Sept. 1, 1937, ch. 898, title III, § 306, 50 Stat. 912.)

§ 1137. Territorial application.—This subchapter shall apply to the continental United States, the Territory of Hawaii, Puerto Rico, and the Virgin Islands. (As amended Dec. 26, 1941, ch. 638, § 4 (a), 55 Stat. 873.)

SUBCHAPTER V.-GENERAL PROVISIONS

8 1171. Powers of Secretary --For the purposes of this chapter, except Subchapter IV, the Secretary shall

(a) Appointment of officers and employees.—Appoint and fix the compensation of such officers and employees as he may deem necessary in administering the provisions of this chapter: Provided, That all such officers and employees, except attorneys, economists, experts, and persons in the employ of the Department of Agriculture on the date of the enactment of this chapter, shall be subject to the provisions of the civil-service laws and

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