Russell, William W., chairman, legislative committee, accompanied by Paul C. Blair, assistant, National Apartment Owners' Association__ Schmidt, William, president, Property Owners Association of America Sherrard, Glenwood J., representing American Hotel Association, Smith, Paul C., vice president, Swift & Co., representing American 1570 1522 Spiegel, E. M., second vice president, National Association of Home 1381 Steiwer, W. H., president, National Wool Growers Association, ac- 1761 Summer, Alexander, president, National Association of Real Estate 1589 Vanderslice, R. L., chairman of the executive committee, National Willoughby, Ray W., president, Texas and Southwestern Cattle Raisers Association, accompanied by Judge Joe G. Montague_ Letters, statements, exhibits, etc., submitted for the record by- 1498 1440 1442 1443 Bamert, Loren C., president, American National Cattlemen's Asso- 1309 Letter from Glenn Cunningham, mayor, Omaha, Nebr Letter from Ray J. Sheehan, housing expediter, Wisconsin. Berkeley-Benton Improvement Association, Los Angeles, Calif.: Letter 1442 Besse, Ralph M., on behalf of Edison Electric Institute: Statement 1808 Blake, William Rhea, executive vice president, National Cotton 1933 Carey, James B., secretary-treasurer, CIO: Information accompany- 1978 DiSalle, Michael V., Director, Office of Price Stabilization: Memo- 1302 Federal Trade Commission: Memorandum on stock ownership of 1943 Harris, Seymour E., professor of economics, Harvard University, on 1565 Hunt, Lester C., a United States Senator from the State of Wyoming: 1115 Kline, Allan B., president, American Farm Bureau Federation: State- Letters, statements, exhibits, etc.-Continued Hutcheson, William L., president, United Brotherhood of Carpenters Kentucky Department of Agriculture, Harry F. Walters, Commis- La Roe, Wilbur, J., general counsel, National Independent Meat Pack- ers Association: Meat price control will not work, statement by Lawson, W. D., president, American Cotton Shippers Association: Cotton ceilings won't work, material submitted on cotton. Page 1898 1247 1115 1752 1755 1830 1836 1837 1982 Ratio of inventory to sales 1939-March 1951. McCawley, J. F., representing Property Owners of America, Inc.: Mopsick, Harry, Linden, N. J., representing National Tenants Coun- cil: Supplementary statement on need for National Rent Advisory Settlement of labor disputes and wage stabilization. Statement on policy for Wage Stabilization Board. Article, New York Times, Wage Board plan passed to Truman.. Statement on consumer holdings and purchases of durable goods. Pickett, A. G., secretary, Kansas Live Stock Association, Topeka, 1408 Russell, William W., chairman, legislative committee, National 1460 Letters, statements, exhibits, etc.-Continued Schoeppel, Andrew M., a United States Senator from the State of Table and chart, inventories and sales... Page 1378 Article, New York Times, Wool's Big Four to bolster prices.--. 1764 Average occupancy rate 1946–50. 1523 Occupancy rate various cities, March 1950, March 1951. 1524 1527 Increase in prices of supplies and equipment... 1528 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 Statement of George C. Johnson, president, Dime Savings Bank 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: Summer, Alexander, president, National Association of Real Estate 1768 Housing in areas adjacent military installations 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. Survey on assessed valuations of property under rent control... Comments on rent reports of Department of Defense. Usher, John and Richard: Rent control in war and peace.. Vanderslice, R. S., chairman of the executive committee, National Correspondence concerning rent controls on residential hotels___ Willoughby, Roy W., president, Texas and Southwestern Cattle Woods, Tighe E., Housing Expediter: Rent increases around mili- 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, MEAT PRICE CONTROL WILL NOT WORK It has been proved that meat and animal prices cannot be controlled. People are getting more meat than before the war, and at relatively fair prices. 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: 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, |