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MINUTES OF REGULAR QUARTERLY MEETING
OF THE BoaRD OF DIRECTORS AT
VALDOSTA, GEORGIA ON
FEBRUARY 25, 1963

A regular quarterly meeting of the Board of Directors of the Association
was held in the Conference Room of Ashley Oaks Restaurant in Vali osta, Georgia
on Monday, February 25, 1963, at 10:30 o'clock A.M.

There were directors present:

Judge Hattey Langdale, presidng

R. M. Newton

W. L. Rhodes

Wiliiam Knabb

E. R. Pilkinton

W. B. Nagle

S. 0. Spooner

H. Lindsay Grace,
constituting a quorum; also, Milton S. Briggs, Downing Musgrove, J. Lundie
Smith, J. E. Thompson, Jr., and Ora B. Hemmingway. Directors absent:
J. L. Gillis, Jr., and M. C. Stallworth, Jr.

The minutes of the meeting held on August 22, 1962 were read and
approved.

The treasurer presented a general balance sheet as of January 31, 1963,
and a statement of income and expenses for the fiscal year beginning February 1,
1962 and ending January 31, 1963. The balance sheet reflected net worth of
$103,370.35, an increase of $7,82h.17 over net worth at the beginning of te
fiscalyear.

Judge Langdale called on Mr. Smith to present the proposed 1963 Price
Support Program, and to explain the alternatives provided by the Loan
Agreement between the Association and Commodity Credit Corporation.

The two outstanding changes noted by Mr. Smith were: 1. The maturity
date, as a fixed date, was removed, the loans now being subject to call by CCC.
2. The Loan Agreement provides that the Association may either make loans

to its members against pledged collateral, which the producer would have the

right to redeem by repaying the loan, as under previous programs; or the

Association may make advances to producers delivering rosin to the Support
Program for ultimate sale by the Association, and the producer would have
no right to recover such rosin so delivered. Mr. Smith pointed out that

individual producer redemptions under a loan program allow producers

' exercising such rights to "victimize" other producers.

Mr. Briggs commented that, if the "advance" program is adopted, it would
represent the greatest single improvement in any loan program. He urged
recognition of the fact that the Association represents 25% of a $180,000,0606

enterprise, and that this segment could not compete successfully with large
chemical corporations except on a "big business" basis. He noted that for-
eign production is now in strong hands, and that an unprecedented degree
of stability is now being maintained, as it has been in the~gum industry.
for the past two years. Gum turpentine has found its place in industrial
uses, and this will increase as long as the price is competitive. He
felt strongly that within the next five years there will be a great need
to produce more gum to meet the requirements for rosin am well as for
turpentine, and that gloom was not called for.

It was the feeling of Judge Langdale that an "advance" program, rather
than a "loan" program would further the aims for which the Association
was first organized. He stressed that a stabilized price is a must for
the consuming industry as it is for producers.

Upon motion by Mr. Rhodes, seconded by Mr. Nagle, the Board
unanimously adopted the "producer advance" program.

Upon motion duly made and seconded, the Board adopted a resolution,
attached hereto as Exhibit "A", authorizing the execution of the 1963
Gum Naval Stores Loan Agreement with CCC, and all other acts pursuant
thereto.

There being no other business to come before the Board, it stood
adjourned.

Respectfully submitted,

TEs Neeser

Secretary ie J

EXHIBIT "A"

'

BE IT RESOLVED by the Board of Directors of the American Turpentine Farmers

Association Cooperative in meeting assembled at Valdosta, Georgia, on this 25th

day of February, 1963:

1. That the President and the Secretary be, and they are hereby, authorized, directed,

and empowered in the name of this Association and on its behalf:
(a) To execute and deliver a 1963 Loan Agreement with Commodity Credit
Corporation implementing the 1963 Gum Naval Stores Loan Program approved
by the Secretary of Agriculture on January 23, 1963, whereunder there
is to be made available to the Association a loan of $17,000,000, the  |
said Loan Agreement to be generally similar to like agreements hereto-
fore entered into between the Association and Commodity Credit Corpor-
ation, the form and details of such agreement to rest in the sound
discretion of the Association's. President;
(b) To execute and deliver, from time to time, any necessary or desirable
amendments of or supplements to the said Loan Agreement; and
(c) To enter into, with warehousemen, processor-warehousemen, and othex,
all contracts and agreements necessary or desirable in effectuating the
purposes of the said Loan Agreement.

2. That they, or either of them be, and they are hereby, authorized:
(a) To enter into Producer's Marketing Agreements with the members of
this Association in order that the proceeds of the aforesaid loan from
Commodity Credit Corporation may be mdde available to the members of
this Association in the form of advances upon naval stores tendered by
them to the Association for loan;
(b) In general, to do all and any thing that may be useful in or necessary
to the successful operation of the 1963 Loan Program pursuant to the 1963

Loan Agreement,
3. That the President be, and he is hereby, authorized and empowered to employ,

and to fix the compensation of, such additional stenographic, clerical and accounting
personnel as, in his judgment, may be necessary to the efficient discharge of the
Association's duties and obligations under the said Loan Agreement.

h. That the Assistant Secretary be empowered to do any thing herein authorized or
prescribed to be done by the Secretary.

5. That the Manager be, and he is hereby, authorized to do all or any of the things
authorized to be done in Item 2(a) and Item 2(b) hereof.

6. That any and all things that may have heretofore been done by any officer of

the Association in furtherance of the purposes and intent of this Resolution be,

and they are, in all respects ratified and confirmed.

CERTIFIED TO BE A TRUE AND EXACT COPY OF A RESOLUTION PASSED BY THE BOARD OF DIRECTORS

OF THE AMERICAN TURPENTINE FARMERS ASSOCIATION COOPERATIVE at a meeting in

Ri Nib es

Valdosta, Georgia, on February 25, 1963.

This 26th day of February, 1963.
Ro |

MINUTES OF REGULAR ANNUAL MEETING
OF THE BOARD OF DIRECTORS IN THE
CONFERENCE ROOM OF THE AT-FA BUILDING

APRIL 16, 1963 ~ a

 

The regular annual meeting of the Board of Directors of the Association
was held in the Conference Room of the Association's Offices in Valdosta,
Georgia on Tuesday, April 16, 1963, at 2:30 o'clock P.M.

There were present: Directors:
Judge Hatley Langdale, Presiding
William Knabb
W. B. Nagle
M. C. Stalworth, Jr.
. R. Pilkinton
. O. Spooner
. Lindsay Grace
. M. Newton
Others:
Downing Musgrove
J. Lundie Smith
James E. Thompson, Jr.
Milton S. Briggs
Ora B. Hemmingway, Secretary

Drmnm

Directors absent were: J. L. Gillis, Jr., and W. L. Rhodes

Mr. J. C. Greene, representing Southern Railway, had requested and was
pa permission to appear before the Bozrd to discuss proposed legislation
scheduled for hearings by a House Committee on April 30, and by a Senate
Committee on May 3. He read a prepared statement, which is appended hereto,
The effect of the Bills (S.1061 and H.R.l700) would be to exempt from minimum
rates prescribed by Interstate Commerce Commission the transportation of all
bulk commodities, affecting all carriers instead of just water carriers as
is presently in effect.

A discussion of its effect on the movement of naval stores ensued; Mr.
Stallworth pointed out that a determination had already been made that gv
saving of as much as 10 cents per bushel on corn would be effected as a
result of the proposed legislation; and it was the consensus that naval stores
would be comparably favored by the enactment of the legislation.

Upon motion duly made and seconded, the Board adopted unanimously a
resolution in support of the aforesaid Bills, and instructed that copies of
the resolution, attached hereto in its full text, be mailed to all members
of the Congress representing the states of Georgia, Florida, Alabama,
Mississippi, Louisiana, and North and South Carolina.

When Mr. Greene had retired from the Conference Room, minutes of the

meeting of February 25, 1963 were read and approved.
Copies of the report of the regular annual audit performed by Mr.
Ralph B. Finney, C.P.A., were furnished to the members of the Board.
Upon review and discussion of the report, the financial operations of
the Association for the year were approved by the Board.

Upon motion duly made and seconded, the amount of the college
scholarship to be awarded to the 1963 "Miss Gum Turpentine" was fized
at $500.

Judge Langdale called on Mr. Smith to submit for consideration by
the Board certain changes thought to be desirable and/or necessary in
the Association's By-Laws.

Mr. Smith pointed out that the latest composite printing of By-Laws
was dated 1951, that amendments had been adopted by the membership fram
time to time since that date, and that a studious review of the By-Laws
in their entirety had been made by him. From this review, his conclusions
were that the By-Laws should be revised, amended and otherwise brought
up to date to more clearly reflect the Association's current operations.

Booadly, the proposed changes would (Art. 6, Sec. 2) eliminate the
provision for nomin ating committees in Sub-Districts of District No.

1 (Georgia); (Art. 6, Sec. h) clarify the language applicable to

voting procedure, particularly with respect to directors! authority

in the manner of tabulating ballots cast; (Art. 6, Sec. 6) eliminate
"lame duck" directors by changing the term of newly elected directors
to commence and end on the date of Annual Meetings or as otherwise
provided; (Art.6, Sec. 9) to provide for compensation to directors for
expenses incurred in their official capacity other than in attendance
at directors meetings; (Art.8} Sec. 1(b) authorize the President to
designate another person to sign on his behalf Association checks with
the treasurer; (Art. 8, Sec.6) provide for emeritus office" for any
Association officer who has served continuously for as long as 15 years;
(Art. 11) change rate of dues to 15 cents per standard barrel, from
present rate of 20 cents with 15 cents applicable if paid by 10th of
month; (Art. 15) change basis of determining number of votes to which

a member is entitled from present "one vote per unit" to one vote for
every five (5) standard barrels produced on which dues have been paid;
and generally to modify the language of the mtehliie By-Law s where
considered necessary or desirable to clarify the intent of such By-Laws.

Pursuant to a full discussion relating to the nature and purpose

of the proposed changes, a res@lution, duly made and seconded, was
323

unanimously adopted, approving the proposed changes in full, and directing
the General Counsel to present the proposed changes to the membership in
convention on April 17, 1963, for adoption in full or in part; and further
authorizing and directing the Association's Secretary and General Counsel
to proceed with the preparation and printing,in full text, of the By-
Laws as finally adopted by the membership.

It was indicated that more effective work on naval stores research
at Olustee could possibly be achieved through a closer liaison between
the Association and research personnel, whereupon Mr. Nagle was appointed
a committee of one to maintain close contact with the Research Center
and make recommendations to the Board based on his observation of the
Center's needs and achievements.

There being no further business to come before the Board it stood

adjourned.

Respectfully submitted,

Ue 7 a

Secretary


A RESOLUTION EXPRESSING THE INTEREST OF THE AMERICAN
TURPENTINE FARMERS ASSOCIATION CO-OPERATIVE IN THE
TRANSPORTATION SYSTEM OF OUR NATION

WHEREAS, our attention has been called to the Message from the
President of the United States to Congress, relative to the Transportation
System of our Nation, and

WHEREAS, the President of the United States has recommended the en-
actment of legislation to extend to all carriers the exemption from the
approval or prescription of minimum rates under the Interstate Commerce
Act for the transportation of bulk commodities--now enjoyed only by water
carriers--which will permit the forces of competition anc equal opportunity
to replace cumbersome regulation for these commodities while protecting
the public interest by retaining Interstate Commerce Commission control
over maximum railroad rates and other safeguards such as the prohibition
against discrimination, requirements governing car service and common
carrier responsibility, and

WHEREAS, the President of the United States has further recommended
the enactment of legislation to exempt from the approval or prescription
of minimum rates under the Interstate Commerce Act for the transportation
of agricultural and fishery products-~enjoyed now only by the motor
carriers and freight forwarders--the Interstate Commerce Commission to
retain control of maximum railroad rates and other safeguards to protect
the public interest, and

WHEREAS, the President of the United States has said that "The com-
bined effect of extending these bulk and agricultural exemptions will be
to reduce drastically and equalize fairly the regulation of freight rates
in this country and that "Freed to exercise normal managerial initiative,
carriers will be able to rationalize their operations and reduce costs;
and shippers should consequently enjoy a wider choice, improved service
and lower rates", and

WHEREAS, Bills S, 1061 and H. R, 1700 have been introduced in the
Senate and in the House of Representatives, respectively, of the United
States for the purpose of carrying into effect the President's recommen-
dations respecting the necessity of relieving the railroads and other
modes of transportation from regulation of minimum rates for the trans-
portation of bulk commodities and agricultural and fishery products but
with continuing control by the Interstate Commerce Commission of maximm
rates and other safeguards to protect the public interest, and

WHEREAS, The American Turpentine Farmers Association Co-operative,
with more than four thousand five hundred (4,500) members throughout
Georgia, Florida, Alabama, Mississippi, Louisiana, North and South
Carolina, acting by and through its Board of Directors, deem it to the
best interest of the Nation, as a whole, to have the aforesaid Bills
enacted into law by the present Congress.
NOW, THEREFORE, BE IT RESOLVED that copies of this Resolution in
support of aforesaid Bills be sent to all members of the Senate and
Congress representing the States of Georgia, Florida, Alabama, Mississippi,
Louisiana, South Carolina and North Carolina, with the request that at
the appropriate time they support and vote in favor of passage of afore-
said Bills.

RESOLVED this the 16th day of April 1963 in the City of Valdosta,
Georgia, at which a quorum of Directors was present.

President

ATTEST:

Secretary i Y

J An Address by
J. C. Greene, Division Freight Agent
Southern Railway System
Valdosta, Georgia
Before the

Executive Committee and Members of the

Board of Directors of American Turpentine
Farmers Association Co-operative, Inc.,
Valdosta, Georgia, April 16th, 1963.

The Minimum Rate Bill

Mr. President, Members of the Executive Committee, and Board of
Directors: I am grateful for the opportunity of appearing before you today and
discussing with you a matter of serious importance to the Nation and which could
affect your industry. I am sure many of you here have heard of and are familiar
With the President's address to the Congress recommending statutory changes in
the antiquated transportation law under which we are living today. Bills have
been introduced into the Congress known as S. 1061 and H.R. 700 or generally
referred to as the "Minimum Rate Bills." We prefer to call them "Reduced Rate
Bills."

First, let me assure you that these are not railroad sponsored Bills;
it affects all common carriers -- rail and truck. Let's analyze these Bills a
little. Under present regulations and laws, only railroads mst publish and
observe their published rates on both bulk and agricultural commodity traffic,
whereas, Barge lines can charge any price they choose for handling such bulk
commodities. Published rates do not govern -- they can and do charge one price
for one customer and a different price for the next customer. The common carrier
interests are only interested in having this disability removed and be allowed

to compete. Competition and less regulation is what is needed.

me 
Many of you here are familiar with the Southern Railway's recent
"Grain Case" and what it will eventually mean to you -- the consuming public,
in savings, How was this done? Simply by providing a new type of equipment
known as the "Big John" cars capable of handling a hundred tons of grain and
these rates are now in effect on single cars, With the favorable decision of
the U. S. Supreme Court yesterday concerning these multiple grain rates, it is
hoped that these can quickly be made effective, thus affording the consuming
public additional savings in transportation costs, Other special equipment
has been provided for other commodities and more are on the drawing boards.

I shall not attempt to elaborate further due to the limited time allotted.

It seems strange, indeed, that the common carrier interests should
have to ask the support of the public and such organizations as yours to assist
us in our effort to cut transportation costs, It is morally and economically
wrong that you, as shippers, and the public, as consumers, should be forced to
pay unnecessarily high freight charges because transport legislation is out-
dated and has no application in view of present technological advances. The
railw ads, through such new equipment, services and cost control, can make re-
duction in freight rates and show a profit. Present laws force us to keep our
rates higher than necessary, thus forming an umbrella under which unregulated
carriers peg their rates just far enough to get the business, yet return a fat
profit. We are prevented under present laws from pricing our services competi-
tively and saving the shipping and consuming public money in the process.

I repeat: This is not railroad legislation as such. We are talking
about freeing minimum rates from regulation. Control over rate increases will

remain with the Commission and should do so. Let me urge your support and
influence with your Senators and Members of Congress from your respective

States, This is in the public interest. At present, our laws deny true

competition and result in high rate robbery -- repeat: rate robbery and not

highway, and it is costing the American people billions of dollars annually.
I have prepared a resolution which I shall read at this time.

(Read Resolution)

Let me urge adoption and support. This is your fight, too!

Thank you!


MINUTES OF SPECIAL MEETING
OF THE BOARD OF DIRECTORS
APRIL 175 1963

The incumbent members of the Board of Directors having been
re-elected by the membership, the Board met in special session at
the Association's offices at ):00 o'clock P.M., April 17, 1963,
for the purpose of electing officess for the ensuing year, in
accordance with the By-Laws.

Present at the meeting were:

Judge Harley Langdale, presiding
S. 0. Spooner
M. C. Stallworth, Jr.
W. B. Nagle
William Knabb
H. Lindsay Grace
S. 0. Spooner
R. M. Newton,
constituting a quorum.

Absent directors were: W. L. Rhodes and J. L. Gillis, Jr.

Upon motion, duly made and seconded, the present officers, namely,
Harley Langdale, as president; R. M. Newton, as vice-president; and
Ora B. Hemmingway, as Secretary-Treasurer, were unanimously re-elected.

There being no further tusiness to come before the Board, it stood
adjourned.

Respectfully submitted,

Nea ee

Ora B. Hemmingway, Secretary

~



Team acca 4
RESOLUTION AMENDING THE BY-LAWS OF AMERICAN TURPENTINE
FARMERS ASSOCIATION COOPERATIVE, ADOPTED IN ANNUAL
MEETING AT VALDOSTA, APRIL 17, 1963.

BE IT RESOLVED, by the members of American Turpentine Farmers
Association Cooperative in regular Annual Meeting assembled in
Valdosta, Georgia, on April 17, 1963 - -

That the By-Laws of this Association be, and they are hereby,
amended in the following particulars:

ARTICLE 6 AMENDED,

Section 2: The final paragraph of Section 2 of Article 6
is hereby amended so that, as amended, the said paragraph shall
read as follows:

"Each individual member shall be entitled to cast his total
vote in the District or Sub-District in which such member resides;
each member-partnership shall be entitled to cast its total vote
in that District or Sub-District in which is located the office
or place of business of such partnership as indicated by the
records of the Association; and each corporate member shall be
entitled to cast its total vote in the District or Sub-District
in which its principal office is located or (in the case of a
corporate member the principal office of which is not located
in the territory served by the Association) in the District or
Sub-District in which is located its principal place of business
within such territory as indicated by the records of the Association.
No member shall have the right to vote in more than one District
or Sub-District, regardless of the extent of the territory covered
by the member's operations."

Section 2 Further Amended: Such Section 2 of Article 6 of

these By-Laws is hereby further amended by repealing and rescinding

in toto the amendment thereto adopted by this Association on the
16th day of April, 1952, having to do with the appointment of
nominating committees for the several Sub-Districts of District

Number 1.
Section : Section ) of Article 6 is hereby amended so that,
as amended, such Section ); shall read as follows: 

"The Directors apportioned to the several Districts and
Sub-Districts shall be elected by the vote of the members within
the respective Districts and Sub-Districts as provided in Section
2 hereof; and no Director shall be deemed to have been duly elected
and qualified unless, at the time of his election, he was a bona
fide resident of the District or Sub-District to which his office
is apportioned or with respect to which he was elected.

"At least thirty days before the Annual Meeting of the Association,
the Secretary shall mail to each member of the Association a ballot
whereon there shall be designated the District (and, if applicable,
Sub-District) in which the member is entitled to vote, the number of
Directors apportioned to such District or Sub-District, and the number
of votes which such member is entitled to cast as determined by the
Secretary in accordance with the provisions of Article 15 of these
By-Laws.

"Votes shall be cast by mailing the ballots to the Secretary
in envelopes provided for that purpose by the Secretary. The Secretary
shall carry the ballots so received, unopened, to the Meeting, where
the same shall be opened and counted by or under the supervision of
the Secretary and a Committee appointed for that purpose by the President
from among the members present. Elections shall be by plurality and
without nominations; and the results thereof shall be declared by the
President and attested by the Secretary, pursuant to the report of the
ballot count made by or under the supervision of the Secretary and
Committee as hereinabove provided, copies of which declarations of
election results shall be mailed by the Secretary to those elected.

"The Secretary and the Committee so appointed by the President
shall have the authority conclusively to resolve all questions as to
the number of votes to which a member is entitled, the District or
Sub-District in which a member is entitled to vote, the eligibility of a

member to vote, and the entitlement of any ballot to be counted under
any provisions or requirements of these By-Laws.

"Despite the provisions herein made for the casting of ballots
by mail, any member actually present at any Annual Meeting who has not
theretofore cast a ballot by mail with respect to the election held
in connection with such meeting may then and there cast the number of

votes to which he may be entitled; but the acceptability of any such

ballots so cast shall be a matter for final determination by the Secretary
and the aforesaid committee.

"Any other provision of this Article or of these By-Laws to the
contrary notwithstanding, the President or the Board of Directors may
promulgate such rules and regulations governing the form of such ballots
and the manner of casting, canvassing, and counting the same as will
insure a secret and accurate vote and facilitate or expedite the de-
termination of the results thereof."

Section 6: Section 6 of Article 6 is hereby amended so that, as amended,
the same shall read as follows:

"Directors shall serve for the term hereinafter defined or until
their successors have been elected and qualified. The terms of Directors
shall commence upon the adjournment of the Annual Meeting at whichtthey
were elected and shall end upon the adjournment of the next succeeding Annual
Meeting."

Section 9: Section 9 of Article 6 is hereby amended so that, as
amended, the same shall read as follows:

"The Board of Directors shall serve without compensation; provided,
however, members of said Board shall be reimbursed from the funds of the
Association for their actual expenses incurred in attending meetings of
the Board and for other travel expenses incurred in the Association's
sole behalf."

ARTICLE 8 AMENDED.

Section 1: Sub-Section b of Section 1 of Article 8 of these
By-Laws is so amended that, as amended, such Sub-Section shall read as
follows:

"b, Sign on behalf of the Association, as President, with the
Secretary, all deeds and other instruments of comparable dignity; and,
with the Treasurer, all notes and other commercial paper evidencing
indebtedness of the Association. The President or his designee shall,
with the Treasurer, sign all checks in behalf of the Association."

Section 3: Sub-Section b/of Section 3 of Article 8 of these
By-Laws is so amended that, as amended, the same shall read as follows:

"b, Sign with the President all deeds and other instruments of
comparable dignity on behalf of the Association."

Section lh: Sub-Section b of Section ) of Article 8 of these By-Laws
is so amended that, as amended, the same shall read as follows:

"bd, Sign with the President all notes and other commercial paper
evidencing indebtedness of the Association; and with the President or
his designee, all checks of the Association."

Section 6 (Added): Article 8 shall be further amended by adding

thereto a new Section to be designated Section 6, which section shall
read as follows:

"Section 6: The Board of Directors may, in its discretion, in the
case of any individual who has been an officer of the Association con-
tinuously for as long as fifteen years, appoint such person to hold
emeritus office thereafter at the pleasure of the Board; and upon such
appointment such person shall have the title of the office last actively
held by him, followed by the word "Emeritus". Such officer emeritus shall
have no regularly prescribed duties, and shall hold such office without
compensation, except that the Board of Directors may provide for compen-
sation upon a per diem or other equitable basis when the performance of

active service is requested of such officer emeritus."
ARTICLE 10 AMENDED.

Article 10 of these By-Laws is amended by transferring thereto, to

constitute the second paragraph thereof, that paragraph which has
heretofore constituted Paragraph c of Article 11 of these By-Laws, having
to do with the continuance and voluntary termination of contracts of member-

ship.

ARTICLE 11 AMENDED.

Article 11 of these By-Laws is so amended that, as amended, the
same shall read as follows:

"Every member of the Association shall pay dues to the Association,
for the purpose of maintaining it and for other purposes within the dis-
cretion of the Board of Directors in the sum of fifteen cents (15) for
each standard barrel of 35 pounds net of crude gum produced by him.

"Such dues shall be due and payable not later than the 10th of the
calendar month next following the month in which such crude gum was

produced."

ARTICLE 13 AMENDED.

Article 13 of these By-Laws is amended by changing the period at
the end of the Article as it now exists to a semi-colon and by adding
after such semi-colon the following language:

"PROVIDED, HOWEVER, surplus funds or profits in the hands of the
Association arising from the sale of products of the members shall be
distributed in accordance with the Pooling Program or Marketing Agree-

ment pursuant to which such products were so sold."

ARTICLE 15 AMENDED.

Section 2 of Article 15 of these By-Laws is amended so that, as
amended, such Section shall read as follows:

"Section 2. Every member shall have one vote for every five
standard barrels of 35 pounds net of crude gum produced by him during
the calendar year proceding the date on which such ballot is cast and
with respect to which dues as prescribed in Article 11 thereof shall

have actually been paid by or for the account of the member prior to
the date on which applicable ballots have been mailed by the Secretary."
ARTICLE 16 AMENDED.

Article 16 of these By-Laws is amended by striking therefrom the
second paragraph of such Article as it has heretofore existed, and by
amending or modifying the language of the first paragraph of such Article,
so that such Article, as so amended, shall read, in its entirety, as follows:
"The term 'Producer' as used in these By-Laws means any person, firm,

or corporation engaged, within the territory defined in Section 2 of these

By-Laws, in the business of producing crude gum or oleoresin by the scarifica-

tion of living pine trees."
GENERAL PROVISIONS.

BE IT FURTHER RESOLVED, by the authority aforesaid, that the Secretary
of the Association and its General Counsel be, and they are hereby, directed
to incorporate the amendments hereinabove adopted, together with all other
amendments to these By-Laws adopted since the issuance of the printed edition
of the Association's By-Laws under date of September 12, 1951 (except as
such subsequent amendments shall have been repealed or modified hereby)
into a composite to constitute the Association's By-Laws as of the date of
this Annual Meeting, to cause such composite to be certified by the Secretary
as true and complete, and to procure the same to be printed in appropriate
form and in adequate number to meet the reasonably to be anticipated need
for copies of the same. A manually certified copy shall be carefully pre-
served by the Secretary to constitute the Master Copy or official set of

the By-Laws of this Association.

CERTIFIED that the within and foregoing Resolution providing for the
amendment of the Association's By-Laws and for the preparation and publication
of a composite of all of the Association's By-Laws in effect as of the adjournme
the Annual Meeting of the Association on April 17, 1963, was duly submitted

to the membership and adopted, a quorum being then and there present.

This (Yb day of April, 1963.
tr
Lm

Secretary, American Turpedting Farmers
Association Cooperative.

MINUTES OF REGULAR MEETING
OF THE BOARD OF DIRECTORS
OCTOBER 7, 1963

Pursuant to call by the president, the Association's Board of Diretors
met in quarterly session in the Conference Room of the AT-FA Building at
10:00 A.M., October 7, 1963.

Directors present were: Harley Langdale, presiding
. M. Newton

. L. Rhodes

. B. Nagle

. R. Pilkinton and

. Lindsay Grace,

aHafsaa

comprising a quorum.

Absent directors were: J. L. Gillis, Jr., M. C. Stallworth, Jr.,
William Knabb, and S. 0. Spooner.

Others present were: Downing Musgrove, J. Lundie Smith, James E.
Thompson, Jr., and Ora B. Hemmingway, Secretary.

Minutes of the April 16-17, 1963 meetings were read and approved.

Judge Langdale explained that the meeting normally held in June or
July had been postponed, since it usually called for a joint session
with U.S. Forest Service officials to consider a Naval Stores Conservation
Program for the ensuing year and, there being no changes proposed by
either USFS officials or the Association, it had been mutually agreed
that no such joint session was needed this year.

Mr. Nagle reported that he, accompanied by Downing Musgrove, had
made one visit to the Olustee Research Center since April, and had made
a written report on their observations of the work in progress. Mr.
Newton recommended that more frequent visits be made in the future.

Upon motion duly made and seconded, the following resolution was
unanimously adoped:

"RESOLVED, that, pussuant to the provisions of Section ) of Artice 3

of the Association's By-Laws, the President be, and he is hereby, authorized

to determine and declare, in his discretion, any member or members of the
Association to be "no longer in good standing" for failure or refusal to

pay Association dues."
The matter of a more satisfactory method of collecting members* -
dues, and means of determining the amounts due was discussed, and,
at the request of Judge Langdale, Mr. Smith, General Counsel, read
a Memorandum dated August 12, 1963, which he had submitted to Judge
Langdale, and a copy of which is appended hereto. The recommendations.
embodied in the Memorandum would, if adopted, have the desired effects
of providing the Association with current information as to the
production of its members, and a basis for determining the amount of
dues payable on such production. Further, it would insure timely
and accurate remittances of members! dues to the Association.

Upon motion dtily made and seconded, the following resolution was
unanimously adopted:

"RESOLVED, that this Board approves and adopts the "Recommendations"
in the matter of production information and dues collections embodied
in the General Counsel's Memorandum of August 12, 1963, to Judge
Langdale in those regards as such Recommendations are set out on pages
5 through 9 of such Memorandum.

"All officers and employees concerned with the formulation of
policies and procedures under any 196) CCC Program are authorized and
directed to endeavor, by all reasonable means, to insure the incor-
poration of such Recommendations into such Program.

"This Resolution does not constitute, either directly or by
implication, this Board's adoption or approval of the remaining portions
of the General Counsel's Memorandum."

Moving to a discussion of a loan program for 196, upon motion
duly made and seconded, the Board authorized the Association's president,
together with such other persons as he might designate, to confer with
CCC officials for the purpose of obtaining a 196), Gum Naval Stores Loan
Program. The date of the conference and the terms of the program were
left to Judge Langdale's discretion, except that the terms should be he
most favorable obtainable, all factors considered.

Noting that sales from the Redemption Pools were virtually non-
existent, it was ppoposed that approval be sought from CCC officials
to offer low grades of rosin for sale from 1962 stocks at locations
where no 1961 stocks, or where quantities of one or more such grades
of 1961 stocks, remain, redemptions to be made from 1961 stocks with

appropriate transfer to 1962 Program, until such time as the 1961 Pool

is completely liquidated. Upon motion duly made and seconded, the

proposal was approved unanimously.
The treasurer submitted a balance sheet as of August 31, 1963, and
a statement of income and expenditures for the seven months from February
1 through August 31, 1963. While some concern was expressed over the
decrease in income from members' dues, proportionate to the decrease

-in production this year, with no offsetting reduction in expenditures,
it was felt that, with careful attention to expenditures, the
Association would encounter no serious financial difficulties during
the approaching "lean" months of low production and a corresponding
decreased income.

The secretary reported that the By-Laws had been re-composed,
incorporating all of the proposed amendments as adopted by the membership
on April 17, 1963, and printed copies of the revised By-Laws as of
April 17, 1963 were distributed to the directors in attendance,

There being no further business to come before the Board, it
stood adjourned.

Respectfully submitted,

i -

Secretary
AMERICAN TURPENTINE FARMERS ASSOCIATION COOPERATIVE

VALDOSTA, GEORGIA

August 12, 1963
MEMORANDUM TO JUDGE LANGDALE: DUES COLLECTIONS.

You will recall that at a recent Association Steff meeting
you assigned to me the problem of effecting, or at least sug-
gesting, improved procedures in the matter of the collection of
Association dues. The problem then immediately before the
meeting had to do with complications arising out of "gum platform"
delinquencies. However, in this memorandum I am taking the position
that it will avail us little to attach the problem piecemeal.
In order to set the problem in proper vabiesative: I wish
to review matters that are fully as well known to you as to me:
Throughout the padded of thie Association's existence, the
matter of dues collections has been accepted by the Association,
tacitly at least, as being one beyond all solution. There have been
several reasons for this: First, the only information that the
Association has ever had with respect to tha amount of dues "owed"
by any producer was his own statement of his anticipated production.
This statement of anticipated production as set forth on the
PMA whereunder the producer qualified for loan was usually optimis-
tically high. In some cases we have had reason to suspect that this
was done for the deliberate purpose of affoxting a producer enough
Dues: Collections. -2- August 12, 1963

latitude to enable him to purchase ineligible gum and introduce it
into the Program in his owmm name, In other cases, we have had occas-
ion to suspect that it was done to bolster the voting power of a
producer, Regardless of the reason, or whether there was any 
reason at all, the fact remains that these statements of predicted
production afforded little more than the broadest kind of basis

for estimating the amount of dues which the Association was entitled
to receive from a producer.

When, on the other hand, the Association had occasion to point
out to a producer that his dues payments in no wise accorded with
his estimated production, we were met with all kinds of explanations
for why production fell below estimate, ranging all the way from
unfavorable weather, unavailable labor, illness in the family,
preoccupation with other businesses, and work in the shipyards.

In short, the Asseciation has endeavored for 25 years to
collect "debts" from its members with Little more than the most remote
idea of the amount of the "debt", This, surely, must be wmique in
the history of business transactions. .

A second element in the problem, has consistently arisen out ot
an attitude on the part of many members that they did not owe, either
legally or morally, any dues with respect to quantities not introduced
into the Program; that gum sold commercially was simply none of the
Association's business.

DUES COLLECTIONS -3- August 12, 1963

Another, and probably the most vicious of all the slanted, has
arisen from the fact that the hewcatation, under heretofore existing
arrangements, has depended, first upon the factors and later upon
the processors, to collect the dues owed the Association, I have
referred to this element as a "vicious" one because it has constantly
handicapped the Association in asserting with force and vehemence
principles adverse to the interest of the dues collecting instru-
mentalities because those instrumentalities held the whole source of
our income in the palms of their hands, Metaphorically speaking, one
is understandably reluctant to slap the banker who holds the mortgage
on his home,

Other aspects of this last situation have operated to the
detriment of the Association: One has been the feeling on the part
of the processors, in the matter of dues collections, which ranges
from sheer indifference, through poorly concealed irritation, ell
the way to virtually open hostility.

Another such collateral element has involved the willingneas of
some processors to use their failure to take out" Association dues
as a competitive weapon against processors who were duly collecting
and remitting Association dues.

This dad and sorry picture has more or less recently been
aggravated by the introduction of the so called obuying platforms"
into the picture--many of which seem to acknowledge no responsibility |
DUES COLLECTIONS whe

to anybody.

The situation here outlined hes, for 25 or more years, kept
this Association constantly on its knees" before every other branch
of the industry. It has robbed the Association of its independence,
and kept it in the humiliating position of constantly whining for
"eooperation", which other branches of the industry have consistently
interpreted to mean "You do what I want you to do; I do as I please".

I say, for your most cawful consideration, that I feel that the
Association must, in the very near future, take what may epobar to
be drastic steps to rectify this situation, or condemn itself ta
continuation of its posture of abject puinasetehees

I take the liberty of reminding yous hae'he producer has ever
borrowed one cent of money from CCC. All of the money loaned by CCC
has been Loaned to this Association, The processors or warehousemen
receive their money because, and solely because, the producer has
executed an instrument wherein those eipiies are named as apeignese
to whom Program proceeds are to be paid. We have, without exception,
honored those designations.

In the matter of dues, the Association is similarly the
"designee" of every producer-member of this Association, in that his
membership agreement directs factors and processors to withhold and
pay over to the Association, for his account, the dues owed in his
behalf to the Association. In short, we are just as much designees
DUES COLLECTIONS -5-

as are the processors, The difference lies in the fact that we
diligently honored theirs, and they have failed or refused to manifest
like diligence in honoring ours.

RECOMMENDATIONS.

I recommend that the Association cease having, and hereafter
decline to have, any kind of relationships with gum buying platforms.
The Association has no contracts with these instrumentalities; we
have no CCC approval to make any such contracts; but, on the other
hand, we do have a positive CCC inhibition againet the use of forms
or agreements other than those previously approved by CCC.

I do not regard this recommendation as being of merely
academic significance, The Producer's Marketing Agreement stipulates
that eligible Naval stores shall be deemed to have been "tendered __
for advance" only when such Naval stores have been "placed in storage
in the custody of a warehousemen who has entered into and is fully
complying with the Warehouse Agreement". Any tacit recognition by
the Association of any aspect of Program proedure anterior to such
storage, persisted in over a period of time, ebuld establish a
gourse of dealing" which could conceivably prove extremely
embarrassing to the Association.

I further recommend that ccc be induced so to modify existing
Program procedures that checks issued by CCC to cover Program Advances _
DUES COLLECTIONS -6-

be sent, not to the individual processors, warehousemen, or
ndesiguess", but that, on the other hand, one such cheek be Lowvbd,
payable to the order of the Association, to cover the loan
aggregate of any particular group of sets of Program dootninke
with respect to which such check should be issued. For example,
if ten sets of Program papers are sent to the CCC disbursing ,
instrumentality as a gruup, the disbursing office would send to the
Association, for distribution by it, one check representing the
aggregate or total of the collateral value represented by such
ten sets of documents.

I further recommend that the Warehousemen or Processor furnish
to the Association, with every set of Program documents, either (a)
the cumulative quantity of standard bareeke of crude gum acquired
by the Warehousemen from. the producer with respect to whom wach docu-
ments are submitted, Ghrough and ineluding the quantities represented
by such documents; or (b) furnish the Association ascurate and current
information enabling it to maintain atich cumulative totals through
the medium of its ow records, Such brocumulative total" means and
intends, of course, all quantities of crude gum received by the
Warehousemen from the producer, whether purchased by the Warehousemen
or introduced into the Program.

Should the warehousemen prefer to furnish to the Association
simply the cumulative total, broken down as between program and
purchase quantities, it would seem that a relatively simple "ledger card

DUES COLLECTIONS 7=

maintained by the warehousemen would dapity permit the furnishing
of that information. Should the warehousemen prefer to furnish
the Association the information necessary to permit the Aasoiation
to maintain such a cumulative total, a modified carbon copy of the
account of sales" on each transaction, mailed to the Association,
would effect that result.

Should you have any doubts about the contractual right of the 
Association to require this arrangement I invite your attention te ~
the provisions of paragraph 12 of the Warehouse Agreement which :
stipulate, in relevant part, that "The Warehousemen shall keep such
records and shall furnish such reports in such form and at such
times as may be requested by the Association on Commodity". |

I anticipate your objection that, with respect to purchased

quantities, the Warehousemen might not know producer names and
quantities involved in outright purchases made Chreeah gum platforme.,.
In anticipation of this possible objection, I jenkadiak your own
statement that all of these platforms have direct affiliations with
warehousemen and their correspondingly aubject to the control of
the warehousemen, It was alao suggested by one member of the staff
that if all warehousezen required gum platforms to furnish this
information, it would be furnished, whether any such affiliation
existed or not,

I further recommend that an understanding be arrived at, through
correspondence or other convenient means, with the various warehousemen

establishing fiscally convenient periods for their remittance to the
DUES COLLECTIQNS -8-

association of withheld dues. Such periods might be every thirty

or sixty days. Obviously, in making distribution to designee-Warehouse-
men, the Associativa could make appropriate deductions to cover any
then existing delinquencies.

I must further anticipate an objection which has been, from time
to time, voiced by CCC against the use of Government funds to enforce
dues collections by a co-operative, The firet answer that occurs to
both of us is the requirement that Program Advances be made only in
behalf "of members of this Association "in good standing". So far
from using Government funds for a coercive eanghets it may well be
that the Association has been derelict in making Government funds
available to members not actually in good standing" in contraven-+
tion of the provisions of the PMA, not deliberately, of course, but
for want of adequate precautions in determining the good standing
status of Program participants.

Secondly, the Association has recently undertaken to eliminate
items heretofsre charged against loan administrative expenses by the
use of its own funds. This it cannot do, or continue to do, in the
face of any obstruction of reasonable means taken by it to insure the
payment of ita dues.

Thirdly, the Association's Membership Agreement with ite manbiewey
containing the members direction for the payment of his dues, is
among the forma approved by COC. |

Fourthly, the statistical information represented by what I have
referred to as the cumulative total" would constitute the only real
DUES COLLECTIONS -9-

safeguard that the Association has ever had against the introduction
of ineligible quantities into the Program.

I repeat my hope that you will give this your most careful
consideration. If, after such consideration and such further staff
discussions as you may think desirable, these recommendations are
found acceptable in their present or any modified form, I further
recommend that whatever steps are necessary be taken to insure their
incorporation inte the Program. _

Very truly youre,

3. LUNDIE SMITH
JLs /ew

Certified a true and exact copy as read to the Board of

Directors in session on October 7, 1963.

Secretary