Williams, Joe R., Director, Tobacco Division, Commodity Stabiliza- tion Service, United States Department of Agriculture_ Altman, J. Eugene, Columbia, S. C., letter of August 5, 1957___ American Suppliers, Inc., Durham, N. C., letter of August 8, 1957- Defee, Wilbur A., Olanta, S. C., letter of August 2, 1957- Calloway, Virgil, Lydia, S. C., letter and photostat of August 2, Horton, R. F., Manning, S. C., letter of August 7, 1957. Piedmont Leaf Tobacco Co., Inc., Winston-Salem, N. C., letter Privette, W. H., Darlington, S. C., letter of August 3, 1957. Rogers, Ceorge L., and Lawren W. Floyd, Dillon, S. C., telegram Spivey, Ed, et al., Mullins, S. C., telegram__ Stackhouse, Steed, Dillon, S. C., letter of August 5, 1957. Stanton, D. B., Sr., Mullins, S. C., letter of August 2, 1957. Floyd, Lanue, Kingstree, S. C., letter of August 5, 1957. Harrelson, William L., Columbia, S. C., telegram of August 1, 11 PRICE SUPPORT ON CERTAIN VARIETIES OF FLUE-CURED TOBACCO TUESDAY, AUGUST 6, 1957 HOUSE OF REPRESENTATIVES, TOBACCO SUBCOMMITTEE OF THE The subcommittee met, pursuant to call, at 10: 15 a. m., in room 445, Old House Office Building, Hon. Watkins M. Abbitt (chairman of the subcommittee) presiding. Mr. ABBITT. The meeting will come to order. We have called this meeting to discuss with officials from the Department of Agriculture, tobacco producers, and other people interested in the trade, aspects of the price support on certain varieties of flue-cured tobacco. We have with us Mr. Clarence Miller, Associate Administrator of the Commodity Stabilization Service; Mr. Joseph R. Williams, Director of the Tobacco Division, Commodity Stabilization Service; and other officials from the Department. I see that we also have a number of people interested in the production and sale of tobacco. We welcome Senator Thurmond of South Carolina, Congressman Scott, and our other tobacco friend from North Carolina, Congressman Lennon, who is also interested in this matter. The meeting was called at the request of Congressman McMillan, a member of the subcommittee. I should like at this time to recognize Congressman McMillan for such statement as he cares to make. STATEMENT OF HON. JOHN L. McMILLAN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF SOUTH CAROLINA Mr. MCMILLAN. Mr. Chairman and members of the committee, I recently visited South Carolina and happened to be in the State the day the market opened. I was down there for 4 days. There was much confusion and resentment over the manner of administration of the regulation which was promulgated by the Department of Agriculture pertaining to the outlawing of "blacklisted" tobacco, and I felt it necessary we call this meeting to find out from the Department if they were using their best efforts to outlaw this tobacco to the satisfaction of all persons concerned. The farmers in my district and, I believe, practically all the producers of tobacco in the Sixth District of South Carolina are very much disappointed over the manner in which this regulation is being enforced. First, they cannot understand how tobacco experts can be trained in 3 days or 2 weeks. Next, they cannot understand why the big tobacco companies are not per mitted to bid on this tobacco and why the Government is having to purchase all this blacklisted tobacco. There are a number of other problems that I shall mention later on today. Mr. Chairman, members of the Tobacco Subcommittee, my special reason for urging the committee to have this hearing was the fact that I found a state of confusion existing among the farmers, warehousemen, and the public in general. I came to the conclusion that this confusion and dissatisfaction existing among the farmers was a result of a regulation issued by the Department of Agriculture calling for the enforcement of certain types of tobacco by variety rather than by grade. The people in my State deeply resent the so-called tobacco policemen entering the tobacco fields without their permission and cutting down and breaking leaves off of stalks of tobacco. I, and I believe the majority of the House Agriculture Committee, requested at the Agriculture Committee meeting that was held here in Washington on December 3 that this regulation be enforced by grade rather than by variety, as we could foresee the confusion and dissatisfaction that is existing among the farmers today. The farmers in my State have complied with this regulation approximately 992 percent; however, the entire farm population is disturbed and distressed over the fact that the Department of Agriculture has granted its authority to have the tobacco fields in South Carolina and the other surrounding fluecured States policed by inspectors with 3 days' training. They are further disturbed over the fact that the old-line tobacco companies are not bidding on this tobacco when it is understood from reliable sources that this type of tobacco is in demand by the majority of the manufacturers of cigarettes. We all feel that there is some conspiracy between either the warehousemen and the tobacco buyers or the Department of Agriculture, the warehousemen, and the tobacco companies in an effort to see that all the tobacco is purchased by the Stabilization Corporation and will later be purchased by the tobacco companies at a lower price than they could purchase same on the warehouse floor. We are also distressed over the fact that the tobacco companies are not paying the differential they should give the farmers between tied and untied tobacco. We also feel that the Federal tobacco graders are not grading the tobacco high enough since the tobacco companies are purchasing this tobacco at an average of 5 or 6 cents above the support price. I am submitting a number of letters and telegrams I have received on this subject and hope that this meeting will cause the tobacco companies, the Department of Agriculture and the warehousemen to take a greater interest in seeing that the farmer is treated as a human being and is paid what he justly deserves for his tobacco. (Without objection by the chairman the letters and telegrams referred to above are inserted in the record at this point :) Congressman JOHN L. MCMILLAN, PIEDMONT LEAF TOBACCO Co., INC., House of Representatives Office Building, Washington, D. C. DEAR CONGRESSMAN MCMILLAN: While flying from Bangkok to Djakarta on a recent business trip, I had the pleasure of reading an article entitled "Cotton |