Gentlemen, the business firms of the Greater Philadelphia area contribute roughly 1 percent of all Federal taxes-1 percent of the $13 million needed to take the requested censuses in H. R. 8487 and S. 3121 is $130,000. Such a sum, expended to gather basic benchmark information about our local economy at 5-year intervals, is well worthwhile. Accurate, frequent, and regular benchmark census information means that right decisions will be made by those planning new locations for stores, new industrial plant developments, and related capital investments. The Chamber of Commerce of Greater Philadelphia asks you to put these quintennial censuses of business and manufactures back on the track in 1955. This is one expenditure which will pay for itself many times over. Mr. PERKINS. You made reference a moment ago that you would like to make available to the committee a book entitled "Retail Trade in the Philadelphia Standard Metropolitan Area, 1948." Mr. MITCHELL. Here it is. Mr. PERKINS. May I have a copy for the chairman? Mr. MITCHELL. Certainly. Mr. PERKINS. Is there anything else you would like to add at this time? Mr. MITCHELL. Nothing, except that as a manufacturer, I certainly subscribe to the recommendations made by the census committee in connection with the census study which they made. We are a small company. There are five-hundred-odd employees in our company and it is necessary that we have pretty factual information to guide us in our business judgments, and we have used information published by the Government for many years, and find it very valuable. We strongly support both the census of manufactures and the census of business. Mr. PERKINS. On behalf of the committee, I thank you for your interest in this legislation. PREPARED STATEMENT Chairman BRIDGES. The record will show at this point the statement of John J. Hamel, Jr., who is president of the National Renderers Association. In the interests of saving time Mr. Hamel has asked that this statement be inserted instead of read. (The statement referred to follows:) TESTIMONY OF JOHN J. HAMEL, JR., PRESIDENT, NATIONAL RENDERERS ASSOCIATION The National Renderers Association is an organization composed of approximately 235 member companies which are largely single, independently operated establishments primarily engaged in the production of inedible tallow and grease which is extracted from fat-bearing materials obtained from literally thousands of farms, ranches, feed lots, meatpacking establishments, wholesale slaughterhouses, retail meat shops and chain stores, hotels, restaurants, Government and State institutions and agencies. In submitting this brief for the consideration of your committee, which is in charge of Department of Commerce appropriations, the National Renderers Association desires to present the views of this industry regarding the need for the inclusion of the amounts of tallow and grease used in livestock feeds in the Bureau of the Census Monthly Report on Fats and Oils, M-17-2. This is a new use that could not have been reasonably contemplated by the Bureau of the Census in its request for funds to operate that agency and additional funds may be needed for this purpose. The responsibility for the inclusion of these figures is contained in the provisions of Public Law 243 of the 80th Congress, approved July 25, 1947, which amends the 1916 congressional authorization to the Bureau of the Census in several respects, including the requirement to collect and publish figures on consumption of fats and oils by manufacturers of shortening, margarine, soap, and other principal products which require the use of large quantities of animal fats and oils and greases, fish, and marine mammal oils. It is believed that the use of tallow and grease in the manufacture of formulated feeds will justify the inclusion of the feed industry as a "principal product" requiring the use of large quantities under the language of Public Law 243. The need for collecting and publishing the figures of usage in the feed industry is occasioned by the fact that Government and private research, to which this association has given substantial financial support, has shown that the addition of animal fats to feed formulas has achieved excellent results and has opened a market of very large proportions. In 1952, there were approximately 40 million tons of formulated animal and poultry feeds produced and consumed in the United States. At an average usage of 2-percent fat, which is the level most widely used today, this amounts to a potential consumption in the feed industry of 800,000 tons of tallow and grease yearly. If this usage expands to even half that figure of over 11⁄2 billion pounds yearly it can be seen from the appended table that much of the surplus now dependent on export channels will be readily absorbed in a more economical outlet for the tallow and grease industry, while enhancing the nutritional value of the products of the mixed feed industry. The production of tallow and grease, stimulated by the need for these vital fats under the wartime fat-salvage campaign, expanded by 50 percent during that period and has increased further since then, so that in 1953 nearly 234 billion pounds were produced, an increase of 12 billion pounds over the prewar years. However, use in soap has decreased during this period, so that it has been necessary to rely on exports, which reached over a billion pounds last year, whereas we were net importers in the earlier years. The lowered level of domestic consumption has depressed prices to the extent that tallow and grease have become the cheapest fats in the world market. Now, with a record production, members of the industry, traditionally dependent on soap and glycerine manufacturers for the consumption of the bulk of their production, are having difficulty in staying in business because a substantially decreased demand has largely come about through the displacement of soap and soap products by a new class called synthetic detergents, most of which contain no domestic fats or oils. Ten years ago, with an estimated soap production of 3,507 million pounds, the output of synthetic detergents was only 75 million pounds, whereas last year soap production had declined to 1,984 million pounds and synthetic detergents had risen to 2,134 million pounds. This reduction in soap production necessitates the fullest exploration of the extent of expanding use in the mixed feed industry which is by far the largest potential new use found for inedible animal fats. Whether or not consumption of inedible animal fats in mixed feeds is or will be as large as estimates now being made is a fact that will not be settled until the Bureau of the Census begins to include this use in their fats and oils reports. The Bureau of the Census Monthly Report M-17-2, which at present does not contain the statistics of usage in the feed industry is the only means of furnishing official data showing the extent of this usage. It is extremely important to our industry that these figures be collected and reported, if this can be done without jeopardizing present data contained in M-17-1 and M-17-2. TARLE 9.-Inedible tallow and greases: Apparent production, disposition, and price 15 October-December. 1530 Year. 1954-January-March. 1 Beginning in 1949, soap manufacturers were not required to report the consumption of fats and oils in fat-splitting when such splitting was merely the first step in the production of soap, the resultant production of fatty acids nor the subsequent consumption of fatty acids in soap. Instead, the reported consumption of fats and oils in soap included both the fats and oils used directly and those used in fat splitting if the fatty acids were used in soap. Not available. 31943-46 average. 4 Residual. NOTE.-Totals computed from unrounded data. 1112345BDIS Exports and TABLE 10.—Soap and synthetic detergents: Supply and disposition, 1985 to date Estimated production 1 Civilian per capita Disappearance Year Soap Synthetic Imports of Total shipments of supply soap to United States 1 Based on estimates of the Association of American Soap and Glycerine Producers, Inc. Excludes cleansers and liquid soaps. Data for 1948-53 based on shipment-production relations in 1947, the last year for which data from the census of manufacturers are avail⚫able. Based on factory shipments of 53 companies as reported in the association's sales census who produced 79 to 83 percent of the United States total in census years, adjusted to a United States total basis. Includes only those with characteristics and end uses similar to soap. From Office of Rubber Reserve, Reconstruction Finance Corporation. Estimates based in part on data given in Statistical Yearbook of the Quartermaster Corps for 1947. 1 Less than 1⁄2 pound. • Preliminary. Chairman BRIDGES. The committee will recess until 2 o'clock. (Whereupon, at 12:40 p. m., the committee recessed, to reconvene at 2 o'clock.) AFTER RECESS MARITIME ACTIVITIES TRAINING PROGRAM STATEMENT OF VICE ADM. TELFAIR KNIGHT, UNITED STATES MARITIME SERVICE, RETIRED PREPARED STATEMENT Senator SMITH. The committee will come to order. We will go on to the maritime activities training program. Admiral KNIGHT. Yes, I do. Senator SMITH. Do you wish to read the statement? Admiral KNIGHT. It is only about 10 minutes long, if I may read it. Senator SMITH. Thank you very much. Admiral KNIGHT. Madam Chairman, if I did not feel that I had some specialized knowledge of the training of personnel to man our merchant marine which may be of some benefit to our Government and to this committee, I would not have sought the opportunity to make this statement. The marine disasters to the steamship Morro Castle and the steamship Mohawk revealed the lack of training and skills of their crews. The Congress made a 2-year study of the condition of our merchant marine which resulted in the passage of the Merchant Marine Act of 1936. Section 101 of that act set forth the Federal policy with respect to our merchant fleet. One of the tenets of that policy was that our merchant fleet should be manned with trained and efficient citizen personnel. To implement this policy, the Congress created the United States Maritime Service to set up and conduct a Federal training program under the jurisdiction of the United States Maritime Commission. This was to provide training for both licensed officers and unlicensed crews. The act also established a Federal system of training cadets to become licensed officers which has become the United States Merchant Marine Cadet Corps with its Academy at Kings Point. It was my privilege to be the director of the entire training program from its inception in 1937 to the date of my retirment for age on August 1, 1951. I believe that this experience qualifies me to have authentic views on the subject. TYPE OF TRAINING PROGRAM The attention of this committee is invited to the fact that this was a peacetime and not a war-training program. Without it, however, we would not have been geared for the rapid expansion necessary to provide trained officers and crews to man the 5,000 new merchant vessels that we built during World War II. From the inception of the program in 1937 to the present time, the United States maritime service and the United States Merchant Marine Cadet Corps have supplied training courses to approximately 350,000 merchant marine personnel, and I submit, without fear of successful contradiction, |