Price Support on Certain Varieties of Flue-cured Tobacco

FOOD MARKETING COSTS

TUESDAY, OCTOBER 8, 1957

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON CONSUMERS STUDY

OF THE COMMITTEE ON AGRICULTURE,

New York, N. Y.

The subcommittee met at 10:30 a. m., pursuant to notice, in room 220, United States Customs House, New York, N. Y., Hon. Victor L. Anfuso (chairman of the subcommittee) presiding.

Present: Representatives Anfuso (presiding), Cooley (chairman of the full committee), Grant, Mrs. Knutson, Jennings, and McIntire. Also present: Francis LeMay and Walter W. Wilcox, staff consultants, and John Heimburger, counsel.

Mr. ANFUSO (presiding). Will the committee come to order, please. Ladies and gentlemen, in opening these hearings of the Consumers Study Subcommittee of the House Committee on Agriculture, in this city, we are grateful for the cooperation of Mayor Wagner and his Commissioner of Markets, Mr. Masciarelli, for their wholehearted cooperation, and to Mr. Lester Wolff for his unselfish contribution to the work of this committee.

It is needless for me to say that New York City is my hometown and I am sure that no one would mind if I am a little bit partial toward it.

Before I introduce the very distinguished body of lawmakers at this table, and before the taking of any testimony, let me give you a little history of the Consumers Subcommittee. It was created only a few months ago by the distinguished chairman of the Committee on Agriculture, Hon. Harold D. Cooley, who traveled all night to be here to attend this meeting.

I was given the honor to head this subcommittee. It is composed of 4 Democrats and 3 Republicans. One distinguishing feature of this committee and I should like to relate it to you-is that we set out from the very beginning to seek the problems facing the committee, not as Democrats or Republicans, but as Americans placing the security and well-being of our country foremost. As a result, all of our decisions, all of our reports thus far, have been unanimous.

Part of our job today and tomorrow is to receive testimony showing the spread between what the farmer gets and what the consumer pays for food products.

Last evening the committee and its staff, together with Commissioner Masciarelli, and others, visited the New York produce market at the highest point in its activities and learned a great deal which will be helpful to the committee and the Congress in recommending and passing new legislation beneficial to the people of the city of New

York. I am sure that our chairman, Hon. Harold Cooley, who introduced a long time ago a marketing bill, will have something to say about it. And if he had seen the conditions that we observed last night, he could not help but feel that conditions here in New York City for marketing are horrible, a total mess-not the responsibility of the public officials because I know they have been trying time and time again to do something about the problem. But the consumer is paying a great deal more than she should because there are so many unnecessary steps taken before the product gets to her, that if they were removed the cost would come down appreciably.

We found out last night that in a short space of 5 blocks from the terminal to the market a truck is unloaded and reloaded sometimes 2 or 3 times, all at an expense, I understand that costs about $250,000 a day and if that could be eliminated you can calculate for yourself what the tremendous savings would be to the consumer.

Prior to this hearing and prior to last evening and, more particularly, from September 20 to September 30, I went throughout the State at my own expense to study the problems facing the farmers. and consumers of New York City. I mention that in the presence here of my colleagues at a time when Congress is adjourned to prove that a Congressman's job is today a full-time one and not a part-time job as it was years ago.

For the benefit of the witnesses who will testify in future hearings in Washington and throughout the country, let me tell you what we are aiming for. This is a constructive study. The Committee on Agriculture today has the power of subpena, obtained through the efforts of our distinguished chairman. We have not used it yet. We do not intend to use it unless we have to. We are not looking for headlines.

As I said last night at the dinner which was given to the committee, we are looking for cooperation on the part of all people that have something to do with the food industry. If we get the kind of cooperation that we expect I am sure that all will be happy.

First of all I want to categorically state as to the studies that we have already made that the farmer is not at all responsible for the increased cost of living. Of that we are sure. If anything, he has not shared equally with all of the other distributing factors making up the cost. As a matter of fact, he has been shortchanged because of a lack of bargaining power and understanding to the point where it is difficult for him to make both ends meet. Remember, that the farmer is a consumer, too, and if he cannot buy what we in the cities produce, industry suffers. So it is a two-way street, no matter what side you

are on.

Remember, too, that the last depression started with a lack of buying power, farm mortgage foreclosures, and so forth. Let us not have it happen again. No one can say that the United States is beyond that. There is not so much in the prosperity of America that all may take something out at any time and have something left. Capital, industry, and labor have great challenges facing them. They cannot afford to fight each other. They must work together to stabilize our economy and prevent inflation. We must stop prices from going higher and higher, or our dollar will become as depreciated or as valueless as the French franc.

What good is it to be paid in large figures if those dollars can buy so little?

And may I conclude my opening remarks, ladies and gentlemen, by saying to you, that business and labor and industry in our system of private and independent initiative has been responsible for many new inventions beneficial to mankind. This system, however, is now being challenged by a power which has enlisted all individuals under its domination to work not privately, as we do, or independently, but for the so-called state.

Can the free world survive such challenge, let alone advance as we did before, with this powerful enemy breathing down our necks. unless we all tighten our belts and sacrifice a little?

Now let me introduce the very distinguished panel of lawmakers who have come so far and wide to be here at these New York City hearings.

On my right is Mrs. Coya Knutson, of Minnesota; next is Mr. George Grant, of Alabama; on my left, Mr. Pat Jennings, of Virginia; Mr. Cliff McIntire, of Maine; and our distinguished chairman, Mr. Harold Cooley, of North Carolina.

Now, as the first order of business, I am going to recognize a very distinguished lady in our State who has done a great deal on behalf of the consumers of New York State, whom Governor Harriman saw fit to appoint as the consumers' counsel and a member of his cabinet, who is here as she has been throughout the State studying consumer problems. Only yesterday, at a luncheon with Governor Harriman, he and I at his home discussed the problems facing the farmers of New York State. I assure you, ladies and gentlemen, that the Governor of this State and the mayor of this city are both vitally interested in consumer problems. May I ask this very charming lady, Dr. Persia Campbell, if she will be so good as to introduce the three charming ladies she has brought here who have performed a mission on behalf of her committee.

STATEMENT OF DR. PERSIA CAMPBELL, GOVERNOR'S CONSUMERS' COUNSEL, NEW YORK STATE

Dr. PERSIA CAMPBELL. Congressman Anfuso, Mr. Cooley, and members of the Consumers Subcommittee on Agriculture.

As you requested, I asked the ladies to buy some food in different types of stores, primarily produce foods. They will give you the prices they paid on a comparative basis in a few of the different stores. They will explain several of the problems the consumers have in the quality of it and of the price today. I am sure they will answer such questions as they can about the current shopping situation.

May I present Mrs. S. Werbell of the Henry Street Settlement, on problems of the lower income group. Mrs. Walton Pryor who is chairman of the Consumers Protective Committee, and Mrs. R. D. Persinger, representative of the YWCA who has helped in the middle income group. I am sure you will be interested in asking them questions.

Mr. ANFUSO. Thank you, Dr. Campbell. Not only have you brought us very charming ladies, but very representative ladies, judging from the organizations which they represent.

Mrs. Werbell, may I ask you to tell us something about the basket that you brought here?

York. I am sure that our chairman, Hon. Harold Cooley, who introduced a long time ago a marketing bill, will have something to say about it. And if he had seen the conditions that we observed last night, he could not help but feel that conditions here in New York City for marketing are horrible, a total mess-not the responsibility of the public officials because I know they have been trying time and time again to do something about the problem. But the consumer is paying a great deal more than she should because there are so many unnecessary steps taken before the product gets to her, that if they were removed the cost would come down appreciably.

We found out last night that in a short space of 5 blocks from the terminal to the market a truck is unloaded and reloaded sometimes 2 or 3 times, all at an expense, I understand that costs about $250,000 a day and if that could be eliminated you can calculate for yourself what the tremendous savings would be to the consumer.

Prior to this hearing and prior to last evening and, more particularly, from September 20 to September 30, I went throughout the State at my own expense to study the problems facing the farmers and consumers of New York City. I mention that in the presence here of my colleagues at a time when Congress is adjourned to prove that a Congressman's job is today a full-time one and not a part-time job as it was years ago.

For the benefit of the witnesses who will testify in future hearings in Washington and throughout the country, let me tell you what we are aiming for. This is a constructive study. The Committee on Agriculture today has the power of subpena, obtained through the efforts of our distinguished chairman. We have not used it yet. We do not intend to use it unless we have to. We are not looking for headlines.

As I said last night at the dinner which was given to the committee, we are looking for cooperation on the part of all people that have something to do with the food industry. If we get the kind of cooperation that we expect I am sure that all will be happy.

First of all I want to categorically state as to the studies that we have already made that the farmer is not at all responsible for the increased cost of living. Of that we are sure. If anything, he has not shared equally with all of the other distributing factors making up the cost. As a matter of fact, he has been shortchanged because of a lack of bargaining power and understanding to the point where it is difficult for him to make both ends meet. Remember, that the farmer is a consumer, too, and if he cannot buy what we in the cities produce, industry suffers. So it is a two-way street, no matter what side you

are on.

Remember, too, that the last depression started with a lack of buying power, farm mortgage foreclosures, and so forth. Let us not have it happen again. No one can say that the United States is beyond that. There is not so much in the prosperity of America that all may take something out at any time and have something left. Capital, industry, and labor have great challenges facing them. They cannot afford to fight each other. They must work together to stabilize our economy and prevent inflation. We must stop prices from going higher and higher, or our dollar will become as depreciated or as valueless as the French franc.

What good is it to be paid in large figures if those dollars can buy so little?

And may I conclude my opening remarks, ladies and gentlemen, by saying to you, that business and labor and industry in our system of private and independent initiative has been responsible for many new inventions beneficial to mankind. This system, however, is now being challenged by a power which has enlisted all individuals under its domination to work not privately, as we do, or independently, but for the so-called state.

Can the free world survive such challenge, let alone advance as we did before, with this powerful enemy breathing down our necks unless we all tighten our belts and sacrifice a little?