REPORT OF SUBCOMMITTEE 5D ON COSTS, PRICES, AND READJUSTMENTS IN THE DAIRY REGIONS.

The cost of production of dairy products steadily increased until 18 months ago. In spite of the recent reduction in the cost of feeding material, the cost is still largely in excess of that in 1914. The dairy industry is now in a period of declining prices. This will prove serious to the entire industry and disastrous to many if it continues unless accompanied by important readjustments.

We would point out that the cost of labor, of machinery, of equipment, and the fixed charges on investments are still high and must be reduced, as they are large factors in preventing serious loss to dairying.

READJUSTMENTS.

Whereas low-price feed and frequent cash income for milk and cream are stimulating increased production, which with other factors have reduced prices of dairy products: Therefore be it

Resolved, (1) That it is important that the cost of production must be reduced by developing more efficient dairy practices, especially through the elimination of poor cows and better feeding and breeding.

2. The greater uniformity and excellence of quality must be developed.

3. That all agencies, public and private, emphasize the need of milk products in human diets and encourage consumption for the public good, in keeping with the suggestion of the newer scientific research.

4. That due consideration of these facts should influence the selection of foodstuffs for shipment to the needy of Europe.

5. That the eradication of contagious diseases, particularly tuberculosis and contagious abortion, is essential to a lower cost of a necessary human food and justifies increased expenditures of public funds.

Whereas the prices of market milk were much higher when the present freight rates were made, the decline in the prices of market milk makes the freight rates relatively 100 per cent higher-that is, in comparison with the prices which the producer receives for market milk now. The same principle applies in varying degrees to other dairy products: Therefore be it Resolved, That we urge a reduction in the rate consistent with the maintenance of efficient public carrier service.

LEGISLATION NEEDED.

We respectfully submit the following resolutions and urge their adoption by the full committee and by the committee on costs, prices, and readjustments:

Resolved, That the Senate of the United States is hereby requested and urged to pass the Capper-Volstead cooperative marketing bill in substantially the same text as it passed the House of Representatives.

Resolved, That the manufacture, sale, and use of food compounds consisting of milk with the butter fat taken therefrom and vegetable oil substituted therefor is a growing menace to the public health and to the dairy industry of the country, and that this conference urge the enactment of laws to prohibit the manufacture of imitation dairy products.

Resolved, That we ask for a Federal law defining adulteration of commercial compound feeding stuffs sold in interstate commerce and requiring manufacturers and dealers therein to furnish the Department of Agriculture with formulæ showing materials used and proportions of each, subject to the inspection of said department.

Resolved, That we urge the enactment of a schedule of tariff rates which will adequately protect the American dairy industry, based on a rate of not less than 10 cents a pound on butter and with the duty on other dairy products in line with the rate on butter.

REPORT OF SUBCOMMITTEE 5E ON COSTS, PRICES, AND READJUSTMENTS IN THE RANGE COUNTRY.

We believe that a constructive national live-stock policy to relieve the present distressed situation in the live-stock industry should extend from the birth of the animal on the range or farm to the plate of the consumer and should include the following provisions:

1. Provision for more adequately financing live-stock producers with special provisions for men of small live-stock holdings. This should be provided for by legislation, extending the present powers of the War Finance Corporation in the following respects:

(a) An extension of time of at least one year in which applications for loans under the present law may be made.

(b) Legislation which will authorize the War Finance Corporation in extending credits to live-stock producers to take into consideration lands owned or leased or equity therein and the improvements thereon as additional security, and provisions for making loans direct to borrowers wherever and whenever regular banking or loan. company facilities are not available to such borrowers.

(c) Provision that for the purpose of properly maturing stock loans should be made for a period of not exceeding five years and interest at a rate not exceeding 7 per cent.

FREIGHT RATES.

2. We demand reduction of live-stock freight rates by removal of advances made in Ex parte 74, and further reductions to the prewar rates as nearly as possible, and as reduction in operations expenses may justify, so as to be commensurate with the present prices of live stock, and further that railroads be allowed by the Labor Board the opportunity to employ labor at reasonable wages and with reasonable rules, which will enable such reduction of operating expenses that the railroads can be required while earning a fair return to make rates that will afford the opportunity for live-stock producers to likewise make a fair return for their labor and investment, which under present prices and costs is impossible.

COOPERATIVE ASSOCIATIONS.

The thorough organization of live-stock producers into county and State associations, cooperating in matters of national policy through national associations, and the regular distribution to members of such association through Government cooperation complete information as to market, feed, and transportation conditions, cooperating and furnishing this information whenever practicable with the existing farm and live-stock organizations. We also encourage the plan for cooperative shipping and marketing live stock as worked out by the farmer's live-stock committee of 1915.

(a) The establishment through the above associations of a practicable exchange system by which the demands of feeder communities may be promptly supplied by the range and breeding districts and the supply and class of feeders fitted to the demand.

INDORSE PACKERS AND STOCKYARDS ACT.

(b) We indorse the packer and stockyards act, which provides for such thorough and practical supervision of stockyards as shall insure high standards of prompt, impartial, and efficient service, including feed supplies of proper quality at just prices, ample water and weighing facilities, impartial allotment of space, proper returns for dead or injured animals, and every opportunity for open and competitive marketing, and recommend prompt reduction of existing yardage, live-stock commission charges, and schedules to reasonable levels.

NATIONAL FOREST POLICY.

5. We are opposed to any transfer of the administration of grazing on national forests from under the jurisdiction of the Department of Agriculture. We favor the appraisal of grazing values on the different national forests, but we maintain that the present fees charged shall be the maximum charge and that in such cases where reappraisals are made that any readjustment of grazing fees shall be downward for inferior forests and not upward for superior forests, until at least such time as the live-stock grazing industry is on a profitable basis.

STANDARD GRADING.

6. We recommend that the Secretary of Agriculture as soon as possible inaugurate a system whereby all animals, meat products. and wool may be classified and brought to standard grades.

FRENCH-CAPPER TRUTH IN FABRICS BILL.

7. We recommend the passage by Congress at the earliest possible moment of the French-Capper truth in fabrics bill, now pending in Congress.

EDUCATION ON MEAT CONSUMPTION.

8. We indorse an educational campaign looking toward increased consumption of meats and meat products, setting forth the food values of said meats and meat products.

PRICES OF MEATS AND MEAT PRODUCTS.

9. We again call attention to the wide and unreasonable spread between the prices received by the live-stock producers and the prices paid by the ultimate consumers for live-stock products.

TARIFF.

10. Because of depreciated foreign exchange and its effect in subsidizing exports to the United States, to the detriment of American agriculture and industry, we favor the American valuation plan be applied to importations into the United States.

After mature investigation in full detail of necessary tariff rates properly protective to the live-stock industry, we recommend the following duties:

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On meat and meat products, 20 per cent ad valorem, with a minimum of 4 cents per pound; live cattle, 30 cents ad valorem; hides, dry, 6 cents per pound; green, 3 cents per pound, with an ad valorem minimum of 20 cents; wool used for clothing or wearing apparel purposes in whatever form, imported, 33 cents per pound of clean content; mutton, 3 cents per pound; lamb, 5 cents per pound; live sheep, $2 per head.

REPORT OF SUBCOMMITTEE 5F ON COSTS, PRICES, AND READJUSTMENTS IN THE TOBACCO DISTRICTS.

Subcommittee (5F) on costs, prices, and readjustments in the tobacco districts has carefully considered the subjects, and wish to submit the following recommendations for your consideration in preparing your report to the National Agricultural Conference:

The committee recommends that the Federal Government, in cooperation with State agencies, conduct such investigations as may be necessary to determine the most economic methods of producing and marketing tobacco, particularly with respect to

(a) Statistics on cost and amount of production, stocks on hand. and rate of consumption by form, types, and grades as far as practicable.

(b) Information relative to varieties of tobacco most suitable for particular soils, kinds of fertilizer most suitable, and the best methods of controlling insect pests and plant diseases.

(c) Establishing standards for the classification of tobacco of the different types.

(d) Standardizing the warehouse system under appropriate regu

lations.

REPORT OF SUBCOMMITTEE 5G ON COSTS, PRICES, AND READJUSTMENTS IN SUGAR PRODUCTION.

It is impossible, with the cost of production as it is in the United States, for the growers of either sugar cane or sugar beets to meet the costs of Cuba and other tropical countries, and since the price of sugar depends upon the price the Cuban producer may charge and as through cheaper labor he has greatly reduced his costs and increased his production until he can furnish all the sugar the United States can consume, it is necessary for a complete readjustment to be made. of the conditions governing the agricultural position of this industry in this country.

It is the unanimous opinion of this committee that this readjustment must consist of a change in the tariff now in effect against tropical sugars.

To meet the competition of other crops and give adequate inducement to the American sugar farmer, a tariff of $2 a hundred pounds must be levied against sugar coming from Cuba. Any reduction from this figure reduces directly the return from the farm.

From a study of the history of sugar production and consumption in this country, we boldly affirm that this increased tariff will be for the benefit of the consumer of food in this country, as well as the consumer of sugar, as it has been demonstrated more than once and recently quite acutely that but for the competition of the American

production the cost of sugar to the consumer would be considerably higher than when the source of supply was so restricted.

In addition to this, one of the lessons we learned from the war was that this country should be self-sustaining as far as its food supply is concerned, and right painfully all of us remember how we were seriously hampered because of a great shortage of this important food.

THIS MUST NEVER HAPPEN AGAIN.

Further, as an evidence of the necessity of such a tariff, the producers of cane sugar have been told by their bankers that any measure of tariff less than that asked for will result in their complete withdrawal of financial support.

Further, that the study of beet-sugar production in this and foreign countries has demonstrated that the effect of the growing of sugar beets in the cycle of crop rotation has proved most beneficial and should be encouraged as one of the methods of increasing our acreage production of food products.

Resolved unanimously, That a material increase be made in the appropriation for the scientific investigation of the technical problems that are involved in safeguarding and developing the growing and marketing of our sugar crops. REPORT OF SUBCOMMITTEE 5H ON COSTS, PRICES, AND READJUSTMENTS IN FRUIT AND VEGETABLE PRODUCTION.

We find that the cost of production and prices vary so much with local conditions and geographical placement that we can submit no report that would be of value along these lines.

Marketing conditions must be improved and taken advantage of along with the institution of the best methods of production to insure a profit. We find certain fixed expenses over which the grower exercises little or no control. These costs are of labor, packages, freight or express, drayage, and commission. All of these, except the last, vary little with light or heavy crops when considered on a package basis.

Your committee finds that present high freight rates is the large and important factor standing in the way of a return to normal conditions. Long-distance shipments are ofttimes prohibited by the freight rates, and numerous instances can be cited where growing crops would have been a less loss to the producers if they had been left to rot upon the ground.

As an instance of inequality between rail and water rates of transportation, it was stated to the committee that apples were sold to the canners at Pacific coast points for from $17 to $20 per ton, then canned and shipped to New York City by vessel on a rate of freight equal in amount to the rate by rail from Rochester to New York City, where they came into competition with canned apples taking the same rate of freight and sold to Rochester canners from $45 to $60 per ton for the apples at the cannery.

With reference to long-distance rates by rail, we find that shipments are being curtailed on account of excessive freight rates and that production is being put out of business, which is alike injurious to the producer and consumer. Short-distance rates are increased to such an amount that much of this freight is being handled by trucks. With the building of hard roads, therefore, the railroads