obstacles in the Packers and Stockyards Act which effectively stopped us and that is why we are here. This restriction affects only posted and terminal markets and does not affect markets in many States. A number of States are now collecting and supporting this movement by a 10-cent-per-head markoff at point of sale. Incidentally, some are using 5 cents but that is the choice of the State. To achieve ultimate success, all States must inaugurate this program, and all producers must voluntarily participate. A few examples of the need and benefits of this program are demonstrated by the success of those now engaged in this activity. The American Dairy Association in 1955 spent $5 million advertising milk and dairy products and their budget for 1957 is $6,250,000. The annual gross business of the dairy association in 1955 was about $5 million a year. Today the surplus of butter has been completely dissipated and generally speaking, dairymen are in a more secure financial position than for many years. Citrus farmers have a $340 million a year annual business. They spend $11 million a year advertising their products. The National Cotton Council operates on funds provided by a 10cent-per-bale markoff at the gins, and has done an excellent job in defending cotton's position in the textile and fiber world. They are now in the process of expanding this program by increasing the markoff to 20 cents per bale, all on a voluntary basis, a wholly justified move based on results obtained and additional promotion now so vitally needed in this country. Poultry producers and others are successfully employing this method to advertise and sell their production, to the increased benefit of the producers. Cattlemen and all livestock producers are now faced with the absolute need to engage in this same type of program in order to protect and defend their vital economic interests and to guarantee their fair share of the American consumer's food dollar, and this must be done on a single purpose and single industry basis. May I interpose this with regard to a statement made by the assistant secretary? We do not call this fragmentation. The beef-cattle industry is a separate and distinct industry. We do not call ourselves a part of it no more than the feed men and the swine are separate. We cannot put all of these boys in the same pot and have them agree to advertise beef this week and pork and lamb next week. You would end up in a dog fight and would not get your job done. Mr. POAGE. I am glad to have you say that. Mr. BARTLETT. It is necessary to support any program to have the people who are interested and who pay the bills as part of it. So I think in the end we will have to have State organizations to support the national. But I share the same feeling you expressed sometime ago, we must work that out and I think it is within the industry itself. The money to be effective must be spent on a national basis but we must look to the boys back home for their support in the collection of the funds. I think it is a problem that will have to be worked out within the industry alone. If you try to work it out by law, we might be 10 years in getting the job done. In that respect we would all be broke before we got started. If the people in the industry themselves haven't got the integrity and the courage to settle their differences, this program will not work, anyway, because the people who support it and who make the voluntary contribution will stop making the contribution. And you cannot run a business. That is why it must be on a singleindustry basis. To proceed, a survey by a Mr. Arno Johnson, economist with J. Walter Thompson & Co., of New York, established these facts. Prior to 1940 there were approximately 22 million families in the Nation with what he terms "discretionary spending power" meaning funds over and above the necessities of living and taxes, and these families constitute on a per capita basis, a substantial proportion of our annual red-meat consumption. Today there are 34 million families in this category with the “discretionary spending power" to enjoy and pay for a far higher standard of diet. The fact that the curve designating the consumption of red meat. has stayed about level, indicates clearly that the people in this group have not changed their eating habits, and the red-meat producers consequently are suffering a decreased trend in what could be their share of this increased consumer buying power. This is our market and we must pursue it diligently on a self-help, self-paid-for basis, securing the vital and needed funds from an automatic but voluntary markoff on all cattle and livestock sold throughout the Nation. The National Beef Council will support existing organizations engaged in the vital research on the beneficial human uses of beef. Each red meat specie will have their own promotional program on a specie basis and will support to a greater extent the research and educational work of the National Livestock and Meat Board. In every single State I have been familiar with so far we have all designated the continuation in the collection of the money to the National Livestock and Meat Board. It is being paid into that Board now by the State in which collected. The marketing agencies are a vital part of the success of this program, for producers must look to them to make the necessary deduction at point of sale. It naturally follows that they, too, will benefit from the successful accomplishment of this program, as a marketing agency's income is based on a percentage of the total take at sales, and this should help to compensate for the service they will perform in aiding the successful accomplishment of this program. This same practice now exists in all segments of agriculture now operating a sales-promotion program and collection of funds on a markoff basis, and the bookkeeping needed should not be any more difficult in the livestock field than is encountered by marketing agencies in other segments of the agricultural field. This has been done for the National Livestock and Meat Board for 33 years. The original intent was to get the National Livestock and Meat Board to enlarge their action to take in this program. They have on two occasions I know of, passed strong specific resolutions stating the position that they cannot do so and I quote here the last action taken by them in December 1956: RESOLUTION OF THE NATIONAL LIVESTOCK AND MEAT BOARD Adopted following presentations by the American Farm Bureau and National Livestock Promotion Board in answer to a telegram from the California Cattlemen's Association The National Livestock and Meat Board unanimously passed a resolution reaffirming its established policies not to accept or segregate funds for specific industry species-i. e., beef, lamb, or pork-promotion. It will not accept funds or engage in paid advertising. But it will continue to cooperate with all industry organizations requesting assistance in a program of meat research, education, and promotion. I was not engaged in any activity of any kind that would in any way jeopardize or minimize the activities of the National Livestock and Meat Board. I believe in that organization. And I want to get them more money and not less. We understand there is opposition to this program on the part of the Farm Bureau leadership on a national basis. We deeply regret this and are unable to understand it. We encountered wholehearted support on the part of the livestock members of the Farm Bureaus, particularly in livestock States, in favor of this program. The other gentlemen here will speak for their own States, but I would like to submit herewith the resolution of the Mississippi Farm Bureau passed at its annual meeting last December. May I interpose that in the record? Mr. POAGE. Without objection, it will be received. (The resolution is as follows:) RESOLUTION PASSED BY MISSISSIPPI FARM BUREAU, ANNUAL MEETING, DECEMBER 1956 We urge Mississippi Farm Bureau support the program of the National Beef Council as originated by the American National Cattlemen's Association, and urge the American Farm Bureau to lend all support to the program and to permit a deduction, with sellers permission, on each head of cattle sold through sales barns; to promote consumption of beef, and to use all possible influences to remove any present legislative restrictions now in force that in any way prevents or retards the rapid organization and growth of this program. Mr. BARTLETT. It is no longer a question of advantage or desirability in the ready acceptance and application of this plan-it has become a vital necessity, if the livestock producers of this Nation are to share in the expanding economy of this Nation and in fact secure even a fair share of the wealth they struggle to create on a free market basis without Government support or control. To this end we urgently request favorable consideration of the Congress in the passage of this bill as soon as possible, because cattlemen are badly in need of relief now; or any bill that removed the restriction that won't let us act now. I include that. In fact, that is what inspired the creation of this whole program. Mr. Chairman, whether or not we use this money or do this job or collect a dime, I think in order to preserve the old American tradition of fair play to everyone that some action must be taken by Con gress to put us in the same boat with others in the agricultural field now doing these things. We seem to be segregated unintentionally by an act of Congress passed 35 years ago. And for that reason pray your indulgence and your effort to put us back in the same boat with our competitors, so we can do an old-fashioned American job. Just one more thing why you must do this: I have a little report I got from St. Louis the other day: "Livestock Analysis. "The return to livestock showed today 660 of parity.' That is on beef cattle. That is too low, Mr. Chairman, in this present world situation. I thank you. Mr. POAGE. Thank you very much, Mr. Bartlett. And now we will hear from Mr. Don Collins, who is president of the American National Cattlemen's Association. STATEMENT OF DON C. COLLINS, RANCHER, KIT CARSON, COLO., PRESIDENT, AMERICAN NATIONAL CATTLEMEN'S ASSOCIATION Mr. COLLINS. Mr. Chairman and members, I have a statement to file. I would like to make a short statement. Mr. POAGE. Without objection your statement will be filed and we will be glad to have you make any other statement that you care to make. (The statement is as follows:) STATEMENT OF DON C. COLLINS, KIT CARSON, COLO., PRESIDENT OF THE AMERICAN NATIONAL CATTLEMEN'S ASSOCIATION, WITH HEADQUARTERS AT DENVER, COLO. Mr. CHAIRMAN AND GENTLEMEN: I am Don C. Collins, a rancher from southeastern Colorado, where I have spent my entire life working on the ranch established by my father early in this century. I am president of the American National Cattlemen's Association, an organization established by the cowmen of the West in 1898. I am proud to say my father was active in this organization years ago and at one time its president. Today this association represents 28 State cattle associations of the Nation, more than 100 local associations, representing a total of approximately 200,000 cattlemen. Gentlemen, I am very proud, as a western cowman, to represent the American National Cattlemen's Association at this hearing today. I appreciate the opportunity to appear before you and thank you for the consideration you are giving to this matter that is of great importance to the livestock industry. Recently, we cowmen realized that if we were to keep abreast of rapid progress in the economy of our Nation we would have to adopt a means to advertise the need and value of our product, encourage research, and promote consumption of beef, we would have to raise money, within our industry, to accomplish these purposes. The American National Cattlemen's Association started a beef promotion program and encouraged the cattle States to do the same. Our auxiliary associations, the national and State cowbelle associations, responded wonderfully. It was soon evident that these associations could not properly finance a nationwide program with their limited association funds. With the excellent cooperation of the States, State beef councils were formed, and representatives of these State councils were selected to form a National Beef Council in accordance with a request expressed in a resolution approved at the 1955 convention of the American national held during January in Reno, Nev. These State beef councils were made up with representatives from livestock organizations, marketing associations, farm organizations, packers, and livestock financial organizations. Naturally the national council was composed of these representative people. But the need of financing this program was very evident. Because voluntary deductions had been successfully made from income of sale of livestock in many instances it was felt that a very small voluntary deduction should be made at all public markets from all livestock sales. By voluntary deduction, gentlemen, I mean that when the deduction is made at the market, the shipper is advised that if he objects to this withheld payment it will be refunded immediately. This practice in the past had shown very, very, few requests for return of a 5-cent or 10-cent per head deduction. The American National Cattlemen's Association in three annual conventions has approved such a procedure. The following is a resolution approved at the 60th annual convention in Phoenix, Ariz., January 7–9, 1957: "BEEF PROMOTION FUNDS "Whereas we reaffirm our position that the beef producers are directly concerned with the promotion of beef to bring about an increased consumer demand for beef through an augmented and enlarged producer program of education, research, merchandising, and promotion; and "Whereas the primary obstacle to financing an effective beef-promotion program is the restricting provisions of the Packers and Stockyards Act with respect to voluntary deductions from proceeds of sale of livestock at public markets: Therefore be it "Resolved, That we support proposed legislation amending the Packers and Stockyards Act whereby any marketing agency may, upon request of a responsible State livestock producer organization, make voluntary deductions, not exceeding 10 cents per head on cattle, payable to the aforesaid livestock producer organization." Many States are now collecting a voluntary deduction of 5 cents to 10 cents per head on cattle payable to their State beef councils. The State beef councils are in turn paying proportionate amounts of their money so collected to the National Livestock and Meat Board, the National Beef Council, and to its own treasury. There have been only a few requests for the refund of this deduction and for ridiculously small amounts. Let me emphasize here that in every instance of a deduction a statement is clearly printed on the marketing agency account of sale that a deduction of so much per head-not over 10 cents-has been made and that it will be refunded if requested. We have been advised that this practice of checkoff is not in accordance with the Packers and Stockyards Act at points of sale under jurisdiction of that act. We are here today to support legislation that, if enacted, will permit a voluntary checkoff at the markets. This has already been proved acceptable by the stockmen. Let me again emphasize that we support only a voluntary checkoff method. Since being elected president of the American National in January of 1956 I have attended 20 State cattlemen's association conventions and have found their memberships are extremely interested in a sound self-help beef program. I would like to emphasize that in requesting the legislation we are not asking for any tax money or handouts but only for the privilege of assessing ourselves to do a promotion job for our own product for the benefit of the entire industry. Mr. POAGE. Before you start, I would like to introduce to our visitors the chairman of the Agriculture Committee, Mr. Harold Cooley, of North Carolina. We are delighted to have you with us, Harold. Mr. COOLEY. Thank you, Mr. Chairman. Mr. POAGE. We have had a most interesting discussion and we are glad to have you hear it. Mr. COLLINS. First of all, I would like to say my name is Don C. Collins, and I am president of the American National Cattlemen's Association. We have 28 States affiliated with us, nearly 100 local associations, and close to 200,000 members directly and indirectly affiliated with us through these local and State associations. For the last 3 years the American National has passed a resolution at 3 national conventions, and at this time I would like to read this resolution. |