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146

Exhibit A.-Letter from Charles B. Shuman, president of the

AFBF, to Hon. Ezra T. Benson, Secretary of Agriculture........

Exhibit B.-Letter from Mr. Shuman to Secretary Benson.__

Broadbent, J. R., Utah Wool Growers' Association:
Gross income and margin trends in the lamb business.

Consumer cost of lamb, with charts 1955, 1956, 1957, 1958, 1959,
and annual averages-

Brown, J. W., National Lamb Feeders Association:

Resolutions passed at last three annual meetings, Omaha, Nebr.,
December 11, 1957; Kansas City, Mo., December 12, 1958;
Des Moines, Iowa, December 11, 1959.

Cooley, Hon. Harold D.:

72

74-79

65

Atlantic Packing Co., Detroit, Mich., letter of December 23,
1959__

151

Farrell Lines, Inc., New York, N.Y., telegram of January 13,
1960_.

157

Nelson, Helen Ewing, consumer counsel, Governor's office, Sacra-

mento, Calif., telegram of January 12, 1960_ _ .

Staggers, Hon. Harley O., letter of January 12, 1960.
State Board of Control, Austin, Tex., letters of December 29,
1959

148

152-153

University of Kentucky, Agricultural Experiment Station,
Lexington, Ky., letter of January 7, 1960..

153

Dixon, Hon. Henry A.:

Whitbeck, C., Sr., Wellington, Nev., letter of January 7, 1960---

Hagen, Hon. Harlan:

Jennings, Hon. W. Pat:

Smyth County Lamb Pool Committee and Rich Valley Farmers'
Club Committee, Marion, Va., telegram of January 10, 1960__

Virginia Farm Bureau Federation, Richmond, Va., telegram of

January 11, 1960.

Johnson, Reuben, National Farmers Union:

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Josendal, Harold, National Wool Growers Association:

Comparison of New York weekly average prices for U.S. Choice
and U.S. Good carcasses (chart)..

Percent increase in average wholesale and retail lamb prices
(chart)____

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SUSPENSION OF FEDERAL GRADING OF LAMB AND

MUTTON

MONDAY, JANUARY 11, 1960

HOUSE OF REPRESENTATIVES,
COMMITTEE ON AGRICULTURE,
Washington, D.C.

The committee met, pursuant to notice, at 10:10 a.m., in room 1310, New House Office Building, Hon. Harold D. Cooley (chairman) presiding.

Present: Mr. Cooley (presiding), Mr. Poage, Mr. Albert, Mr. Abbitt, Mr. Hagen, Mr. Johnson of Wisconsin, Mr. Bass of Tennessee, Mr. Jennings, Mr. Gathings, Mr. Matthews, Mr. McGovern, Mr. Breeding, Mr. McSween, Mr. Stubblefield, Mr. Levering, Mr. Thompson of Texas, Mr. Coad, Mr. Hogan, Mr. Abernethy, Mr. Grant, Mr. Jones of Missouri, Mr. Hoeven, Mr. Belcher, Mr. McIntire, Mr. Dixon, Mr. Quie, Mr. Short, Mrs. May, Mr. Pirnie, Mr. Latta, and Mr. Teague of California.

Also present: Mr. Berry, of South Dakota, and Mr. Clark Fisher, of Texas.

The CHAIRMAN. The committee will please be in order.
Mr. Miller, will you come forward, please.

I would like to say that because of communications that I received from different people in different parts of the country concerning this matter that you are about to discuss, I requested the Secretary to hold the order in abeyance until we could have an opportunity to have hearings on this matter before the committee.

I want to thank the Secretary for granting that request.

I assure you that I have no preconceived notions about the matter, but it does seem to me that you should testify in these hearings, in which all parties will be given an opportunity to be heard.

I would like for you to explain to the committee just what has been done, what caused it, and what is now contemplated. Tell us something about the old rules and regulations, the regulations that will be changed and modified, and the new regulations that have been talked about for some few months now. Go ahead and give us your prepared statement, and then I am sure that members of the committee will want to interrogate you.

Mr. MILLER. Thank you, Mr. Chairman. We will be delighted to answer questions that you may care to ask. The statement I have recites the series of events over the past year.

1

STATEMENT OF HON. CLARENCE L. MILLER, ASSISTANT SECRETARY OF AGRICULTURE; ACCOMPANIED BY CHARLES W. BUCY, ASSISTANT GENERAL COUNSEL FOR MARKETING AND REGULATORY LAWS; DAVID M. PETTUS, DIRECTOR, LIVESTOCK DIVISION, AGRICULTURAL MARKETING SERVICE; JOHN C. PIERCE, DEPUTY DIRECTOR, LIVESTOCK DIVISION, AGRICULTURAL MARKETING SERVICE; AND NATHAN KOENIG, SPECIAL ASSISTANT TO THE ADMINISTRATOR, AGRICULTURAL MARKETING SERVICE, DEPARTMENT OF AGRICULTURE

Mr. MILLER. We in the Department of Agriculture appreciate this committee's interest in the question of the Federal service for grading lamb and mutton. As you know, this is a voluntary grading program and has been a subject of controversy over the past year.

A request to suspend Federal grading of lamb was brought to the Department's attention by the National Wool Growers Association in a resolution adopted on January 29, 1959, stating that Federal grading was detrimental to the efficient merchandising of lamb and urging that the Department suspend Federal lamb grading immediately. The National Lamb Feeders Association had adopted a similar resolution on January 10, 1959.

In response to this request, the Department called a meeting on April 17, 1959, of individuals representing various organizations, from producers to retailers, which were directly concerned with producing, feeding, and merchandising of lamb. From the statements presented at that meeting, it was apparent that there was widespread interest in the subject and that the entire industry as well as others interested should have an opportunity to comment prior to the Department's taking action on the request to suspend lamb grading. Consequently, notice was published in the Federal Register on May 28, 1959, announcing that the Department of Agriculture was considering the suspension of lamb grading on August 1, 1959, and inviting all interested persons to submit comments by June 22, 1959. By request, the Department extended the time for submitting comments until July 6, 1959, and later extended it until July 20, 1959.

On July 13, 1959, Department officials appeared before the Livestock and Feed Grains Subcommittee of the House Committee on Agriculture to discuss current developments in the lamb grading problem in relation to the consideration being given by the Department to the suspension of the Federal grading service for lamb and mutton on August 1, 1959. The subcommittee was advised that after all comments in response to the Department's formal request were received, the record would be analyzed, carefully reviewed, and thereafter the Department's decision would be announced as promptly as possible. After considering comments of more than a thousand organizations and individuals, and weighing the subject carefully, the Department issued a press release on July 23, 1959, announcing that Federal lamb grading would be continued, and further stating that the Department would proceed promptly to consider revised grade standards for lamb and mutton to eliminate any deficiencies in the then present standards. At that time it was stated that, "If improved grade standards for lamb and mutton are not developed to meet more adequately

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