Senator CAPEHART. Did they follow all your recommendations? Mr. PICKELL. No; they shoved the price back. We tried to tell them if they were to continue production at a heavy rate of production they had to put a ceiling on that would reflect a profit on the basis of the cost. Senator CAPEHART. What do you recommend we do with this legislation? Mr. PICKELL. Throw OPS out, and we will be very happy. Senator FREAR. Do you think the consumers of this country would agree to that, and I realize that many of the producers are consumers, too? Mr. PICKELL. I think that in the long run they would; yes. The CHAIRMAN. Would they agree to it before November? Mr. PICKELL. If you throw OPS out right now, so far as livestock and grain and agricultural products are concerned, it would not make the slightest difference. Senator CAPEHART. Is it a fact that all pork products are selling below ceiling? Mr. PICKELL. At about 75 percent of parity; yes, Senator. Senator CAPEHART. And live hogs are 40 percent below parity? Mr. PICKELL. Well, I had not quite figured it that low. Senator CAPEHART. And cattle are selling below the permissible ceiling. Packers are paying the farmers less than the permissible OPS ceiling! Mr. PICKELL. That is right. Senator CAPEHART. And is it not a fact that as of 1952 we have more cows 2 years old and older on the farms and ranches than ever before in the history of the Nation? Mr. PICKELL. That is right. Senator CAPEHART. Is it not a fact we have more steers, except for 1920? Mr. PICKELL. That is right. Senator CAPEHART. And is it not a fact we have more calves? Mr. PICKELL. Than ever before in history; yes, sir. Senator CAPEHART. Therefore we have big production, and prices, generally speaking, in meats, the wholesale price, and the price being paid to the farmer is below the permissible ceiling. Mr. PICKELL. I would not know about the retail price, Senator. Mr. PICKELL. Wholesale, yes. Senator CAPEHART. We are getting the same story on meats as we have on everything else, that they are all below ceiling. Mr. PICKELL. That is right. Senator CAPEHART. And there is a big production, and a big inventory. Mr. PICKELL. That is right; and if you would just give us a chance and let us do as we have done to build this country big, we will keep on producing. Senator CAPEHART. Would you be satisfied with a suspension formula, or a decontrol formula, where you were decontrolled if and when you are under ceilings? Mr. PICKELL. If the price is under ceiling? Senator CAPEHART. Yes. 96315-52-pt. 1-29 Mr. PICKELL. And then put it back on? Senator CAPEHART. If they got above that; yes. Mr. PICKELL. Senator, the most dangerous time to put a ceiling price on anything is when the commodity is short in supply. That is the thing which you just do not seem able to get. Senator FREAR. You would not need it at any other time, would you? Mr. PICKELL. That is right. When you do not need it Senator BENTON. Operating in a free economy, the witness is wholly correct. Senator CAPEHART The facts are if you want to be honest with yourself, you do not need price and wage controls unless you are going to ration the products that you are going to control. Mr. PICKELL. Unless we are going on the basis of British socialism or Stalinism, we do not need them. Senator CAPEHART. The shortage ought to be such that you are forced to ration before you do it. Unless you have to ration the goods, I wonder if you ought to fool with price and wage control. Mr. PICKELL. And then invariably you will get black markets. They just do not work. They are the most dangerous thing you could possibly have, particularly in war. I never knew a country, a defeated country, where the money was worth the paper it was printed on. Production is paramount, and price controls will limit production. The CHAIRMAN. I never have known defeated countries that were helped so much by victor countries as has been the case in the last 4 years, either. Senator BENTON. I have a brief comment and statement I would like to make before the witness leaves. The CHAIRMAN. Would you want to ask the witness a question, because he has to catch a train. Senator BENTON. I think the witness may want to comment on this statement, Mr. Chairman. The CHAIRMAN. What time did you have to leave? Mr. PICKELL. In 5 minutes, maximum. Senator BENTON. I do not want the witness to miss his train. However, I want to read, Mr. Chairman, to the committee two excerpts from two communications from the association which the witness represents. These letterheads show him as executive secretary-treasurer of the Corn Belt Livestock Association. I think these letters and their attachments are very revealing because they show clearly to the public the kind of propaganda operation that is being aimed against the Congress in order to repeal this act, or at least to amend the act, to weaken it. A great many of our citizens do not appreciate the high skill of organization and propaganda which is going into developing these pressures against the Congress, pressures to which the Congress all too often unhappily yields. Here is a letter dated January 31, written to other trade associations, on the letterhead of this association which says: Your association wants to get rid of OPS and price controls. All of the different associations and organizations, embracing many millions of members and practically every branch of industry, north, south, east, and west, as listed on the enclosed sheet to which this invitation is being sent, want to get rid of OPS and price controls. But this is bigger than just livestock. And in some phases at least, all branches of business should work together in a well-planned fight. Now, this letter is an invitation, Mr. Chairman, to a meeting, and attached to this letter is the prospectus for the program. This prospectus is headed "Take the shackles off production-OPS must go," which, as you see is the slogan on the little card we've all been given today. These are the eight points: 1. Form the Production, Processing, and Distribution Council. Membership in this informal council would consist of all organizations opposed to OPS who desire to work together in a hard, well-planned campaign during these next 10 months. * * Mr. Pickell, in reading this material, I am not suggesting that you are not within your rights in doing what you are doing in your association, but I think it is well for the public to understand what is going on, and how the business and trade associations are operating, in their own interests, as they understand their interests. Now for the second point in the program. * 2. Each affiliated organization would start an immediate campaign of its own through speeches, radio programs, press releases, etc., showing up the OPS program. The deliberate and planned attempt would be to make it as unsavory to the public as was OPA. It would be emphasized and reemphasized that controls cut production and shortages in production bring high prices. Senator MOODY. I would like to see these documents from which he is reading inserted in the record when he completes it, as part of the record. I think they ought to be in in their entirety. The CHAIRMAN. I see no objection. I do not think the committee would see objection to placing the documents in the record, and without objection they will be inserted. Senator BENTON. They are not very long, Senator, but even so I shall skip some of the sections. Now here is the third point. 3. That program would be started by all affiliated organizations in March. On a set, specific day, not later than April 15, all members of all of the affiliated associations, north, south, east, and west would be asked to paste in their car a windshield sticker carrying the slogan of the campaign, "Take the Shackles Off Production-OPS Must Go." 4. Each State would have its chairman who would work with the executive committee of the council in handling material to be released in that StateI must say I cannot refrain from congratulating the association for the care with which this program is worked out He would see to it that each delegate to the national conventions of both parties is visited by a strong group representing different industries and affiliated with all branches of that industry, to impress on that delegate that the voters in his district believe that price controls are dangerous in time of peace and could be disastrous in time of war. The CHAIRMAN. But we will have to pass price controls before we have the conventions. Senator BENTON. This chairman would alsc see to it that letters are poured into each Member of Congress from his State in a steady stream, all demanding that when and if the Defense Production Act of 1950, as amended, is to be reviewed, that it first be amended to drop from that act the OPS. The State chairman would see to it that material is placed in the hands of capable speakers to use in appearances before civic and women's organizations in each community, particularly stressing that price controls are an integral part of the British socialism program which proved disastrous to England and have proved disastrous here. 5. When hearings are called for on continuation of the Defense Production Act, not only should there be a perfect flood of demands to be heard, but each appearance should be sure to include material stressing: (a) Controls cut production. (b) Shortages of production bring high prices. (c) OPS must go. 6. Businessmen must be persuaded to go in a steady stream to Washington to visit their Congressmen and Senators and tell them the same story. 7. National committemen of both political parties must be sought out ahead of the conventions and told the same story. So much members of the platform committees being visited at their homes by strong delegations embracing many industries. 8. A strong plank condemning production and price controls must be drafted and presented to the platform committees of both political parties, and every influence possible be used to get adoption of that plank in the party platforms. And every method possible should be used to impress that failure to adopt the plank will endanger to that party the votes of millions and millions of people. Now, Mr. Chairman, this first communication was followed by a letter stating that: 串 But nevertheless we believe the fight should be made in the hope and expectation that at least the Republicans will put a plank into their political platform condemning price and production controls-and if our campaign is smart enough and we can get enough people north, east, south, and west to display our slogan to "Stand Up and Be Counted," we just might be able not only to get the Democratic Party to adopt a similar plan, but to drop OPS rather than carry it into a Presidential campaign. In many ways the most interesting, and the last one of these four documents, Mr. Chairman, at least the most interesting document to me, coming from a State which buys the products produced by the membership of these various associations, because Connecticut is manifestly a very heavy importer of foodstuffs, is this document showing the program for the conference to take the shackles off production, OPS must go, in the Crystal Room, Hotel Sherman, Chicago. The CHAIRMAN. I have been to Chicago, but where in the Crystal Room? Senator BENTON. In the Hotel Sherman, Mr. Chairman. The CHAIRMAN. I would only suggest that I would like to know who would have charge of the convention, either Democratic or Republican, who would know what group would be willing to write it, or not write it. That is what I have been trying to find out. Senator MOODY. It would be nice to know that. Senator BENTON. Here is the program: 10 a. m.: Call to order by C. B. Watson, De Kalb, Ill. Mr. Watson is president of the Corn Belt Livestock Feeders Association and was 1951 governor of the Illinois-eastern Iowa district of the Kiwanis International. 10:10 a. m.: Concrete proposals for united action. By Mark W. Pickell. Mr. Pickell is executive secretary of the Corn Belt Livestock Feeders Association and editor of the Pickell-Daniel Grain Market Bulletin. 10:25 a. m.: OPS and retail meat and grocery trade. By Charles F. Bromann, executive secretary, Associated Food Dealers of Greater Chicago, an organization of some 5,500 retail meat and grocery stores. 10:40 a. m.: OPS and cotton. By John F. Maloney, Memphis, Tenn., National Cottonseed Products Association. 11 a. m.: Proposals of the Institute of American Poultry Industries to fight for elimination of OPS. By Cliff D. Carpenter, Chicago, president of the institute. 11:20 a. m.: Proposals of the packing industry for elimination of OPS. By C. B. Heineman president of the National Independent Meat Packers Association. 11:40 a. m.: The dairy industry and OPS. By M. G. Van Buskirk, executive secretary, Illinois Dairy Products Association, Inc. 12 noon: The retail druggists and OPS. By Mr. Sletterdahl, editor, NARD Journal, representing J. W. Dargavel, executive secretary, National Association of Retail Druggists. 12:30 p. m.: Luncheon. Arrangements have been made for luncheon as a group. 2:30 p. m.: What are we going to do about it? Now, Mr. Chairman, I bring these four documents before our committee, not that there is anything particularly newsworthy in them to any member of this committee, because we are on the receiving end of the pressures from the various trade and business groups, but because these happen to be the first documents that I have seen from anyone of the associations which so clearly and simply set out the problem in terms of the public interest, and in terms of future congressional action. Last year we were besieged, as these documents indicate, by pressures generated by such groups. We do not, to any appreciable extent, have the offsetting pressures from consumers as a whole, who, of course, are our first responsibility. (The documents referred to follow :) CORN BELT LIVESTOCK FEEDERS ASSOCIATION, POLICY COMMITTEE, Your association wants to get rid of OPS and price controls. All of the different associations and organizations, embracing many millions of members and practically every branch of industry, north, south, east, and west, as listed on the enclosed sheet to which this invitation is being sent, want to get rid of OPS and price controls. All are doing excellent work individually. Various groups within industries, such as the National Livestock and Meat Industry Conference Group are doing most excellent work. By all means it must be continued. But this is bigger than just livestock. And in some phases at least, all branches of business should work together in a well-planned fight. An idea for such a fight is given on the enclosed memo. modified according to the judgment of those joining in to make that fight. This idea can be If you like the idea of making a well-planned fight, if you are willing to work with other organizations yet retain your own identity, then please attend a meeting at Chicago on February 28. This will be a confidential meeting without publicity. And please come prepared for action. The time is short. This association is prepared to place $1,000 into a fund to carry on a united well-balanced campaign. United, we believe there is better than a 50-50 chance to win. Will you stand up and be counted? Let's hear from you favorably. Cordially yours, CHAUNCEY B. WATSON. President, Corn Belt Livestock Feeders Association. CORN BELT LIVESTOCK FEEDERS ASSOCIATION POLICY COMMITTEE TENTATIVE PROGRAM FOR CONFERENCE TO TAKE THE SHACKLES OFF PRODUCTION— OPS MUST GO 10 a. m.: Call to order by C. B. Watson, De Kalb, Ill. Mr. Watson is president of the Corn Belt Livestock Feeders Association and was 1951 governor of the Illinois-Eastern Iowa district of the Kiwanis International. 10:10 a. m.: Concrete proposals for united action, by Mark W. Pickell. Mr. Pickell is executive secretary of the Corn Belt Livestock Feeders Association and editor of the Pickell-Daniel Grain Market Bulletin. 10:25 a. m. : OPS and retail Meat and Grocery Trade, by Charles F. Bromann, executive secretary, Associated Food Dealers of Greater Chicago, an organization of some 5,500 retail meat and grocery stores. 10:40 a. m.: OPS and Cotton, by John F. Maloney, Memphis Tenn., National Cottonseed Products Association. |