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Statement of_Continued

Russell, William W., chairman, legislative committee, accompanied by Pago

Paul C. Blair, assistant, National Apartment Owners' Association - 1444
Schmidt, William, president, Property Owners Association of America
and president, Property Owners League.--

1570
Sherrard, Glenwood J., representing American Hotel Association,
accompanied by Allan C. George and Paul Anderson..

1522

Smith, Paul C., vice president, Swift & Co., representing American

Meat Instituie.

1275

Spiegel, E. M., second vice president, National Association of Home
Builders

1381
Steiwer, W. H., president, National Wool Growers Association, ac-
companied by J. B. Wilson and J. M. Jones

1761
Summer, Alexander, president, National Association of Real Estate

Boards, accompanied by Calvin K. Snyder, secretary, Washington
Realtors' Commiöiee.

1589
Vanderslice, R. L., chairman of the executive committee, National
Apartment Owners Association..

1498

Willoughby, Ray W., president, Texas and Southwestern Cattle

Raisers Association, accompanied by Judge Joe G. Montague---- 1316

Letters, statements, exhibits, etc., submitted for the record by-
Aarons, Robert H., general counsel, United Property Owners:
Letter requesting appearance.

1440
Material regarding rent control

1442
Continued statement.

1443

American Finance Conference: Press release on appearance of Scott

W. Lucas..

1202

American Meat Institute, Paul C. Smith, vice president, Swift & Co.:

statement.

1144

Bamert, Loren C., president, American National Cattlemen's Asso-
ciation: Statement

1309

Benton, William, a United States Senator from the State of Connecticut:

Vacant dwelling units...

1431

Letter from Glenn Cunningham, mayor, Omaha, Nebr.

1637

Article from Topeka Capital, Rent Profiteers Giving Topeka

Reputation It Does Not Deserve..

1638

Letter from Ray J. Sheehan, housing expediter, Wisconsin-

1639

Berkeley-Benton Improvement Association, Los Angeles, Calif.: Letter

to Mr. Aarons_

1442

Besse, Ralph M., on behalf of Edison Electric Institute: Statement
with charts

1808
Blake, William Rhea, executive vice president, National Cotton
Council of America: Statement..

1933

California Associated Civic and Business Clubs, Inc.: Letter to com-

mittee..

1442

Carey, James B., secretary-treasurer, CIO: Information accompany-
ing statement-

1978

Carpenter, Cliff D., president, Institute of American Poultry Insti-

tutes:

Charts concerning production, consumption, and prices of poul-

try -

1689

Statement

1691

Supplemental statement with charis.

1699

DiSalle, Michael V., Director, Office of Price Stabilization: Memo-
randúm on OPS slaughter quotas.--

1302
Federal Trade Commission: Memorandum on stock ownership of
American corporations.

1943

Ford, Peyton, Deputy Attorney General, Justice Department: Leiter

concerning Executive Order 10233.

1761

Franz, Chester B., president, Associated Poultry and Egg Industries:

Statement

1719

Gibson, E. T., Acting Administrator, Defense Production Authority:

Letter on stainless steel..

1816

Harris, Seymour E., professor of economics, Harvard University, on
behalf of Americans for Democratic Action: Siatement.

1565
Hunt, Lester C., a United States Senator from the State of Wyoming:
Statement on meat controls...

1115

Letters, statements, exhibits, etc.—Continued

Hutcheson, William L., president, United Brotherhood of Carpenters Page
and Joiners of America, AFL: Statement and press release

1898
Johnston, Eric, Director, National Stabilization Agency: Cases pend-
ing before Wage Stabilization Board..

1247
Statement on meat controls --

1115
Kentucky Department of Agriculture, Harry F. Walters, Commis-
sioner: Letter to Governor Clements.

1752
Kline, Allan B., president, American Farm Bureau Federation: State-
ment.

1755

La Roe, Wilbur, J., general counsel, National Independent Meat Pack-

ers Association: Meat price control will not work, statement by

association

1082

Lawson, W. D., president, American Cotton Shippers Association:

Report, Secretary of Agriculture, Inaccuracies in grading cotton. 1830
Cost of raw cotton as percent of retail price -

1836
Cotton ceilings won't work, material submitted on cotton.

1837
Lawton, K. B., Major General, USA, Deputy Chief Signal Officer:
Comment on Mr. Carey's testimony.

1982

Maybank, Burnet R., a United States Senator from the State of South

Carolina:

Article, Washington Star, Brannan fears long-range cut in beef

supply

1122

Article, New York Times, Defense to take 75 percent of steel

soon, etc.

1818

Ratio of inventory to sales 1939- March 1951.

1378

McCawley, J. F., representing Property Owners of America, Inc.:

Statement.

1432

Mopsick, Harry, Linden, N. J., representing National Tenants Coun-

cil: Supplementary statement on need for National Rent Advisory

Board

1421

Myers, Francis J., National Foundation for Consumer Credit: State-

ment.

1873

Nathan, Robert R., National Planning Committee, member, AVC:

Statement.

1803

National Association of Manufacturers:

Charts:

Wages compared with prices, 1939 to March 1951

1180

Wages compared with prices, January 1946 to March 1951. 1181

Executive Order 10233_.

1226

Strikes:

Prewar Labor Board period.

1229

War Labor Board period

1229

Summary

1230

1949 compared with 1950.

1230

Settlement of labor disputes and wage stabilization.

1230

Statement on policy for Wage Stabilization Board

1244

Article, New York Times, Wage Board plan passed to Truman.. 1271

Statement on consumer holdings and purchases of durable goods. 1408
Peterson, J. C., president, National Lamb Feeders Association:

Appendixes to statement concerning financial and other data on
sheep and wool production and feeders' costs.

1153

Pickett, A. G., secretary, Kansas Live Stock Association, Topeka,

Kans.: Statement on beef production costs.

1401

Quantity Courts United, Inc.: Statement.--

1984

Robertson, Ben, Emporia, Kans.:

Congress tied wage and price controls together.

1934

Letter to Senator Maybank.

1937

Ruffin, William H., president, National Association of Manufacturers:

Charts:

Wages compared with prices, 1939 to March 1951..

1180

Wages compared with prices January 1946 to March 1951.. 1181

Statement

1190

Russell, William W., chairman, legislative committee, National
Apartment Owners' Association: Statement.

1460

Pago
1378
1764

1523
1524
1527
1528

1396

Letters, statements, exhibits, etc.—Continued

Schoeppel, Andrew M., a United States Senator from the State of
Kansas:

Table and chart, inventories and sales...

Article, New York Times, Wool's Big Four to bolster prices.-
Sherrard, Glenwood J., representing American Hotel Association:

Average occupancy rate 1946-50-
Occupancy rate various cities, March 1950, March 1951.
Percentage increases room rates over previous year.

Increase in prices of supplies and equipment.-

Sparkman, John, a United States Senator from the State of Alabama:

Price rises, last half of 1946---

Gross national production 1940–45.

Index of industrial production, 1940-45-

Meat production, 1940–45..

Comparison of average weekly earnings in manufacturing indus-

tries with buying power in 1939 dollars.,

Spiegel, E. M., second vice president, National Association of Home

Builders:

Statement of George C. Johnson, president, Dime Savings Bank

of Brooklyn.---

Charts:

Total nonfarm housing starts, 1948–51.

FHA new unit applications, 1949–51.

VA appraisal assignments for new construction.--

Steiwer, W. H., president, National Wool Growers' Association:

Letter from J. M. Jones to Mr. Kallick regarding industry ad-

visory committee..

Statement.-

Summer, Alexander, president, National Association of Real Estate

Boards:

Housing in areas adjacent military inst ions and contact

with billeting officers through local committees -

Housing requirements for military and civilian personnel.

Rent control and distribution of income, D. Gale Johnson.

Excerpts, Rent control-Folklore versus economic realty, W. R.

Knight----

Survey on assessed valuations of property under rent control.--

Comments on rent reports of Department of Defense---

Statement-

Usher, John and Richard: Rent control in war and peace.

Vanderslice, R. S., chairman of the executive committee, National

Apartment Owners Association:

Correspondence concerning rent controls on residential hotels---

Statement.

Willoughby, Roy W., president, Texas and Southwestern Cattle
Raisers Association:
Cost of producing a calf:

On 1,700 acres stocked with 100 cows and 3 bulls.
On 640 acres with 32 cows and 2 bulls.
On 640 acres with 30 cows and 1 bull.

400-pound calf on an average ranch -
Woods, Tighe E., Housing Expediter: Rent increases around mili-

tary installations.

1768

1769

1351
1352
1352
1353

1417

DEFENSE PRODUCTION ACT AMENDMENTS OF 1951

THURSDAY, MAY 17, 1951

UNITED STATES SENATE,
COMMITTEE ON BANKING AND CURRENCY,

Washington, D.C. The committee met, pursuant to recess, at 10:30 a. m., in room 301, Senate Office Building, Senator Burnet R. Maybank (chairman) presiding

Present: Senators Maybank, Robertson, Benton, Moody, Bricker, Schoeppel, and Dirksen.

Also present: Senators Hunt and Thye.
The CHAIRMAN. The committee will come to order.

I might say that the American Meat Institute requests that their appearance be postponed. Senator DIRKSEN. Until Monday, because of illness.

The CHAIRMAN. We will be glad to do that, except that Monday will be rather a full day, which they will, of course, understand.

I have a statement here which the Secretary of Agriculture called me up about. I do not know whether they arrived or not. Yesterday they suggested at the conclusion of his testimony if he desired to file anything more for the record to do so, so that those statements will be placed in the record from the Department, without objection.

(The statement referred to will be found on p. 682.)

The CHAIRMAN. The first witness today is the National Independent Meat Packers Association.

Will you have a seat, sir, and will you identify yourself for the record ?

STATEMENT OF WILBUR LaROE, JR., GENERAL COUNSEL,

NATIONAL INDEPENDENT MEAT PACKERS ASSOCIATION

Mr. LaRoE. Yes, sir. If the committee please, my name is Wilbur LaRoe, Jr., general counsel for the National Independent Meat Packers Association, 743 Investment Building, Washington, D. C.

Ours is, I think, the largest association of independent meat packers.

I believe the time of the committee will be conserved if, instead of reading my prepared statement, I go over the high lights of this green booklet.

The CHAIRMAN. The committee will be happy to have you present your testimony in any way you desire, and without objection we will make a part of the record the meat price-control statement by the Independent Packers, and you might enlarge or expand or detail any portion of it you wish.

(The material referred to follows:)

THE NATIONAL INDEPENDENT MEAT PACKERS ASSOCIATION,

Washington 1, D. C., May 17, 1951.

MEAT PRICE CONTROL WILL NOT WORK

It has been proved that meat and animal prices cannot be controlled.
Meat price control is not required by the Defense Production Act.
People are getting more meat than before the war, and at relatively fair prices.
Meat price regulations cause gross unfairness.
There is keen competition in the industry, which assures fair prices.
The black market cannot be policed.

The best protection to the public lies in a continuing increase in livestock production and feeding and in keeping meat in legitimate channels from farm to table.

Price control of meat defeats its own purpose by discouraging production and encouraging the black market.

MEAT PRICE CONTROL IS UNWORKABLE

1. Uniform grading is impossible. Even Government experts often cannot agree on the grade of a beef animal. 2. Uniformity in cuts is unattainable, and if attainable cannot be policed.

3. There are hundreds of different sausage formulas, most of them secret and constituting part of the good will of business. How can uniform prices be imposed?

4. Packers are unable to buy animals in compliance with the regulations because there are always mysterious forces in the market bidding higher. Experience proves that these myterious forces cannot be successfully dealt with.

5. This is a seasonal industry, with many factors, including demand, changing from month to month. It is impossible to devise regulations which reflect all the economic changes.

6. The very existence of regulation discourages production and distorts the channels of distribution, some of them drying up.

PRICE CONTROL OF MEAT IS NOT REQUIRED ACCORDING TO THE STANDARDS OF THE ACT

1. One of the main purposes of the Defense Production Act was to increase production. The effect of price roll-backs is to reduce production and to block channels of distribution. Senator Maybank correctly says: “The effect of the beef order will be to cut back production, thus defeating the primary purpose of the Defense Production Act."

2. It was intended that price control should apply if prices have risen unreasonably. With an average hourly wage of $1.57 in all industries, as compared with 56.6 cents in 1929, 1 hour of work will today buy much more meat. In his recent testimony before the House Committee on Agriculture (April 24, 1951), Secretary Brannan gave the following figures as to the quantity of meat that could be purchased with 1 hour of labor, as follows:

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NOTE.-The above figures were supplied to Secretary Brannan by the Bureau of Labor Statistics.

3. Another criterion laid down by Congress was that it is practicable and feasible to impose price ceilings. It is neither practicable nor feasible to impose price ceilings on meat and live animals, as abundantly proved by experience, for the reasons shown on page 1 of this statement.

4. Another criterion is that the prices shall be generally fair and equitable to sellers and buyers. Meat price control has proved itself to be grossly unfair and inequitable, as will be demonstrated herein.

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