of the law-abiding elements in the meat and livestock industry, the prices of meat could not be controlled. Therefore, it seems ridiculous to me that some segment of this industry can accomplish what all segments-and the Federal Government-failed to do. It is my considered judgment that it is impossible for the livestock producers, the feeders, the packers, the wholesalers or the retailers to control meat prices. It is my further judgment that there is absolutely no monopoly in the meatpacking industry today, nor has there been since I have been connected with the livestock and meat industry. I mentioned that I am a producer and feeder of livestock in California. I am a member of a fourth generation which has produced cattle on the same ranch in the foothills of the San Joaquin Valley. I also have a feeedlot on the floor of the great Central Valley where I feed out approximately 10,000 cattle a year. I feel that I can speak for the western producers of livestock, as well as the western feeders. I am just as interested, as is the Congress, in preserving competition within the meatpacking industry. It has been my experience that aggressive competition does exist and I know this to be true, especially in California where there has been a steady and healthy growth in the meatpacking and meat wholesaling businesses. It is true that the history of the meatpacking industry has been to move closer to the source of livestock supply, and I can assure you that we welcome legitimate meatpacking enterprises which compete aggressively for the livestock we produce. I believe that a check into this situation will show this committee that the facts I have stated are accurate because they are based on the figures of both the State of California and the United States Department of Agriculture. I sincerely urge you and your committee not to take any action which, in my opinion, would be injurious to an arrangement that is now healthy to both the producer of livestock and the consumer of meat. I strongly urge that your committee support H. R. 7743 and that this statement be written into the record. Hon. HAROLD D. COOLEY, MCDOUGAL LIVESTOCK Co., Collinsville, Calif., July 10, 1957. Chairman, House Agriculture Committee, House Office Building, Washington, D. C. DEAR SIR: I oppose the transfer of jurisdiction over the meatpacking industry from the United States Departmeent of Agriculture to the Federal Trade Commission, and urge the committee's support of Hill bill No. 7743. Am enclosing a written statement and request it to be inserted in the record. Very truly yours, H. A. MCDOUGAL. STATEMENT OF MCDOUGAL LIVESTOCK CO., COLLINSVILLE, CALIF. I, Harvey A. McDougal, am president of the McDougal Livestock Co., of Collinsville, Calif.; past president of the California Cattlemen's Association; area vice president of the California Cattle Feeder's Association. I submit the following statement in opposition to the transfer of jurisdiction over the meatpacking industry from the United States Department of Agriculture to the Federal Trade Commission, and urge support of Hill bill No. 7743. I have been identified with the livestock and meat industry all my life and for the last 16 years have operated a commercial feedlot where we feed out cattle for our customers as well as ourselves. Our annual production is 40,000 cattle per year. There is no monopoly in the meatpacking industry. I have always had a free and open market for my cattle. No one could ever corner the market on cattle or any other species. There are too many farmers, too many livestock men, too many packers competing for our livestock, and too many varying conditions that make such a thing impossible. The regulatory authority of the meatpacking industry should remain in the United States Department of Agriculture. It has the knowledge and understanding of the livestock and meat industry to capably look out for our interests. The Packers and Stockyards Act was set up to protect the producer. To split the packers and place them under the Federal Trade Commission can only harm the industry, including the producer and feeder. I have seen the chaos created in the industry by a cousumer-dominated agency with the OPA and OPS, and we do not wish to hazard our welfare by having the packers regulated by the Federal Trade Commission. In my experience of 26 years in the West, I have seen a tremendous growth and expansion of the independent meatpackers in the West, in the volume of livestock and meat they handle, and a shrinking in the business of the packers accused of monopoly. There is no monopoly in the Western States. Both the California Cattlemen's Association and the California Cattle Feeders' Association have passed resolutions opposing this legislation. I strongly urge the support of the Hill bill, No. 7743, which would keep the jurisdiction over the meatpacking industry within the United States Department of Agriculture. I also request that this statement be written into the record. Hon. HAROLD COOLEY, SALT LAKE CITY, UTAH, July 12, 1957. Chairman, House Agriculture Committee, House of Representatives, Washington, D. C.: Would like to advise your committee the executive committee of the Utah Cattlemen's Association has gone on record favoring H. R. 8536, by Congressman Dixon, transferring fair trade practices in the meatpacking industry from the Department of Agriculture to Federal Trade Commission. E. S. CRAWFORD, Executive Secretary. WASHINGTON, D. C., July 12, 1957. Hon. HAROLD D. COOLEY, Chairman, House Agriculture Committee, Washington, D. C.: On behalf of the members of the National Association of Retail Grocers, we urge you and the members of your committee to approve legislation closing the loophole in the jurisdiction of the Federal Trade Commission which permits companies claiming to be under the Packers and Stockyards Act to escape FTC supervision. Fifteen food chains are already in this category, and we expect many more to follow. Please incorporate this statement in the record of the hearings you are holding on this matter. We appreciate your interest and consideration. MARIE KIEFER, Secretary-Manager. SALT LAKE CITY, UTAH, July 12, 1957. Hon. HAROLD D. COOLEY, Chairman, House Agriculture Committee, Washington, D. O.: Understand your committee considering H. R. 8536 today. We endorse this legislation and urge favorable action. Hon. HAROLD D. COOLEY, NATIONAL WOOL GROWERS ASSOCIATION. WASHINGTON, D. C., July 12, 1957. Chairman, House Agriculture Committee, House Office Building, Washington, D. C.: The National Fisheries Institute, representing a great majority of the fishing industry engaged in processing and distribution of fishery products, urges your committee support the Dixon bill, H. R. 8536, to give authority to Federal Trade Commission to regulate trade practices of meatpackers. CHAS. E. JACKSON, General Manager, National Fisheries Institute. WASHINGTON, D. C., July 12, 1957. Hon. HAROLD D. COOLEY, Chairman, House Agriculture Committee, House of Representatives, Washington, D. C.: Imperative Congress equalize competitive processing and distribution by giving Federal Trade Commission jurisdiction over trade practices of meatpackers. Strongly urge your committee report favorably on H. R. 8536. Our organization is opposed to H. R. 7743 because it is inadequate remedy. JAMES E. STINSON, President, National Institutional Wholesale Grocers Association. WASHINGTON, D. C., July 12, 1957. Hon. HAROLD D. COOLEY, Chairman, House Agriculture Committee, House of Representatives, Washington, D. C.: Food processors greatly concerned over special privileges enjoyed by meatpackers with respect to trade practice supervision. Our association heartily in favor of H. R. 8536, which would correct existing inequities. H. R. 7743 does not offer adequate relief on this matter. J. N. MAJOR, Jr., Chairman, Legislative Committee, National Preservers Association. WASHINGTON, D. C., July 12, 1957. HAROLD D. COOLEY, Chairman, House Agriculture Committee, House Office Building, Washington, D. C.: Our organization, representing over 800 candy food distributors throughout the country, wishes to go on record as favoring the transfer of jurisdiction over meat merchandising practices to the Federal Trade Commission. C. M. MCMILLAN, Executive Secretary, National Candy Wholesalers Association, Inc. WASHINGTON, D. C., July 12, 1957. Hon. HAROLD D. COOLEY, Chairman, House Agriculture Committee, House Office Building, Washington, D. C.: The National Federation of Independent Business, today stated that the nationwide membership of the federation has again reiterated the importance of the antitrust laws as they affect small business, as expressed through the nationwide membership poll on S. 1356 sponsored by Senator O'Mahoney (Democrat), Wyoming, and Senator Watkins (Republican), Utah, which bill will give the power over certain unfair practices in the meatpacking industry to the Federal Trade Commission, which power has heretofore been vested with the Department of Agriculture, and the result of that poll was: 75 percent in favor of the legislation; 13 percent against; and 12 percent not voting. The above bill is the Senate version of H. R. 8536 sponsored by Hon. Harold D. Cooley and Congressman Dixon, which bill is now before your committee for consideration. The National Federation of Independent Business is committed by the nationwide vote of its members on the above legislation to support the legislation now before your committee and we urge favorable action. Will you please read this message into the record of the hearing. GEORGE J. BURGER, Vice President, National Federation of Independent Business. KANSAS CITY, Mo., July 12, 1957. Hon. HAROLD D. COOLEY, House of Representatives, Washington, D. C.: The River Markets Livestock Group comprising associations of livestock market agencies at public central markets located at Omaha, Denver, Sioux City, Sioux Falls, St. Louis, St. Joseph, and Kansas City, Mo., and which in 1956 handled 36 percent of all livestock marketed at the 64 posted terminal markets of the United States, respectfully requests the privilege of advising the committee that it stands opposed to H. R. 7743 and in favor of H. R. 8536. We believe that experience as shown that the trade practice jurisdiction given the Department of Agriculture is inconsistent with the proper carrying out of responsibilities placed on the Department under other laws. The responsibility and the duty to investigate unfair competition and to enforce antimonopoly laws should in our opinion have remained with the Federal Trade Commission. This because the Department of Agriculture and the Secretary of Agriculture under many other provisions of our laws are required to engage in activities which require and must demand the full cooperation of those engaged in the food processing industry. There is little wonder that the Department of Agriculture has been inactive in the enforcement of those sections of the Packers and Stockyards Act which require it to punish packers for violation of antitrust laws or unfair trade practices when it also has to work with them in so many of its services. We are satisfied that it cannot be expected that there will be adequate enforcement of laws dealing with unfair competition by packers or real public confidence in the enforcement of such laws until the packers in all of their widely expanded activities are subject to the jurisdiction of a separate agency such as the Federal Trade Commission. FRED OLANDER, Chairman, River Markets Livestock Group. CHEYENNE, Wyo., July 14, 1957. Hon. HAROLD COOLEY, Chairman, House Agricultural Committee, House of Representatives: Livestock producers, feeders, and consuming public are entitled to same protection by the same qualified Federal agencies as all other individuals and business. Department of Agriculture has demonstrated over long period of time that it will not exercise the same honest scrutiny over packers and chainstores as other business that have been subject under Federal Trade Commission. Federal Trade Commission was established for this reason and has trained staff and funds for investigative purposes. We strongly endorse H. R. 8536 as introduced. WYOMING STOCK GROWERS ASSOCIATION, CASPER, WYo., July 15, 1957. Hon. HAROLD COOLEY, Chairman of Committee on Agriculture, House of Representatives, Washington, D. C.: The Wyoming Wool Growers Association after a full discussion has endorsed H. R. 8536 and urge your committee to report this bill out promptly and press for favorable action by the House. This bill transfers the enforcement of the packer provision of the Packer and Stockyards Act from the Department of Agriculture to the Federal Trade Commission as the Department of Agriculture has admitted they have failed to enforce the packer provision of the Packer and Stockyards Act and we believe that producers and consumers alike will benefit greatly by the transfer of the enforcement provisions of the Packer and Stockyards Act to the Federal Trade Commission where it was originally intended to be. This bill has been endorsed by all of the livestock organizations in Wyoming including our own and it is our opinion that livestock producers, feeders, and consumers will all benefit when the Federal Trade Commission is again in position to investigate and proceed against unlawful discriminatory practice. We believe that the enactment of this legislation is more important now than ever before and again urge your prompt and favorable considerations. WYOMING WOOL GROWERS ASSOCIATION, By HOWARD FLITNER, President. GREYBULL, Wyo., July 15, 1957. Congressman HAROLD COOLEY, Chairman, House Agricultural Committee, House Office Building, Washington, D. C.: We urge your committee to support H. R. 8536. The Wyoming Wool Growers very strongly approve the proposal to restore enforcement and jurisdiction of Packers and Stockyards Act as embodied in H. R. 8536 to Federal Trade Commission. WYOMING WOOL GROWERS ASSOCIATION, Hon. HAROLD D. COOLEY, Chairman, Committee on Agriculture, WASHINGTON, D. C., July 17, 1957. House Office Building, Washington, D. C.: Supplementing our testimony of July 12 regarding H. R. 7743 and H. R. 8536, we respectfully urge rejection of suggestions that there should be concurrent jurisdiction in both the Federal Trade Commission and the Department of Agriculture over trade practices of meat packers. What is everybody's business is nobody's business. Trade practices of meatpackers, like those of everyone else in the food business, should be under the Federal Trade Commission, and there is no more reason for giving the Department of Agriculture concurrent jurisdiction over them than there is for giving that Department concurrent jurisdiction over practices of other processors or distributors of agricultural commodities. Regarding the suggestion by Mr. Joseph Parker, of the National Grange, on July 12 that the trade practice provisions in section 202 of title II of the Packers and Stockyards Act be changed to apply to only certain activities when engaged in by "any packer or any live poultry dealer or handler," that is unsound. Given practices in given activities should be subject to the same rules and enforcement agency, regardless of who engages in them. We respectfully submit that H. R. 7743 is inherently bad and cannot be patched up. H. R. 8536 should be favorably reported. We respectfully request inclusion of this telegram in the record of your hearings. HAROLD O. SMITH, Jr.. Erecutive Vice President, United States Wholesale Grocers Association. SHELBY, MONT., July 16, 1957. Congressman HAROLD COOLEY, Chairman of House Committee on Agriculture, House of Representatives, Washington, D. C.: Montana Cattlemen's Association still approves proposal to restore enforcement jurisdiction to Federal Trade Commission. Packers and food chains have been allowed to exploit livestock producers and consumers of meat too long. Growers, feeders, consumers will benefit from the Federal Trade Commission when again in a position to investigate and proceed against unlawful and discriminatory practices by packers and food chains. JACK TOOLE, President, Montana Cattlemen's Association. (Whereupon, at 12: 40 p. m., the committee proceeded in executive session.) |