[S. Rept. No. 1578, 85th Cong., 2d sess.] The Committee on Agriculture and Forestry, to whom was referred the bill (S. 3478) to insure the maintenance of an adequate supply of anti-hog-cholera serum and hog-cholera virus, having considered the same, report thereon with a recommendation that it do pass without amendment. This bill would substitute April 1 (or, for any particular manufacturer, any other date between January 1 and May 1 fixed by the Secretary upon application of the manufacturer) for May 1 as the date on which the prescribed minimum inventory of serum is to be on hand under anti-hog-serum marketing agreements. The need for the change results from the fact that for some manufacturers, particularly those in the South, the heavy demand for serum begins in March. The bill is further explained in the report from the Department of Agriculture which favors its enactment. DEPARTMENTAL VIEWS DEPARTMENT OF AGRICULTURE, Hon. ALLEN J. ELLENDER, Chairman, Committee on Agriculture and Forestry, United States Senate. DEAR SENATOR ELLENDER: This is in reply to your request of March 17 for a report on S. 3478, a bill to insure the maintenance of an adequate supply of anti-hog-cholera serum and hog-cholera virus. The Department of Agriculture favors the enactment of S. 3478. The bill would amend existing law that directs the Secretary to enter into marketing agreements to insure the maintenance of an adequate supply of anti-hog-cholera serum and hog-cholera virus. The bill would change May 1 to April 1 of each year as the date manufacturers must have on hand an inventory equal to 40 percent of their previous year's sales. In addition, the bill would authorize the Secretary upon written application by a manufacturer prior to September 1 of the preceding year, to establish other than April 1, a date between January 1 and May 1, if the Secretary finds such action tends to effectuate the purposes of the existing law. The date of April 1 is equally as appropriate as May 1 for requiring the manufacturers of anti-hog-cholera serum and hog-cholera virus to have on hand the 40 percent minimum inventory based upon their previous year's sales. For some manufacturers, particularly those whose business is primarily in the South, there are indications that their inventories should be on hand earlier because their peak requirements occur earlier than April 1, and that if they supply their demand and meet the reserve requirement on the required date, they allegedly are penalized by carrying stock until the next marketing season. For others, May 1 may be a preferable date. This would allow such manufacturers an additional month to manufacture sufficient serum for their reserve. The stipulation requiring an application by September 1 of the preceding calendar year to the Secretary for an alternate date will have the effect of causing such manufacturers to plan production schedules in advance instead of relying on chance and the fluctuations of the livestock market in obtaining suitable production animals. The proposed legislation would modify the language employed in the reserve provision by substituting for "have available" the more explicit term “have in inventory in his own possession." The latter term reflects the Department's long-established interpretation and application of "have available" and we therefore do not consider this change in terminology to be a substantive change. The words "have available" are perhaps more susceptible to misinterpretation by manufacturers than the proposed new phraseology. The Bureau of the Budget advises that there is no objection to the submission of this report. Sincerely yours, E. T. BENSON, Secretary. CHANGES IN EXISTING LAW In compliance with subsection (4) of rule XXIX of the Standing Rules of the Senate, changes in existing law made by the bill, as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new 29255-58-9 matter is printed in italic, existing law in which no change is proposed is shown in roman): ACT OF AUGUST 24, 1935 (7 U. S. C. 853) "SEC. 58. Marketing agreements entered into pursuant to section 57 of this Act shall contain such one or more of the following terms and conditions and no others as the Secretary finds, upon the basis of the hearing provided for in section 57, will tend to effectuate the policy declared in section 56 of this Act: "(a) One or more of the terms and conditions specified in subsection (7) of section 8c of the Agricultural Adjustment Act, as amended. "(b) Terms and conditions requiring each manufacturer to have [available] in inventory in his own possession on [May 1] April 1 of each year a reserve supply of completed serum equivalent to not less than 40 per centum of his previous year's sales of all serum, except that any marketing agreement may provide that upon written application by a manufacturer filed before September 1 of the preceding year, the Secretary may fix another date between January 1 and May 1 on which such manufacturer shall have such inventory if the Secretary finds that such action will tend to effectuate the purposes of this Act. The Secretary may impose such terms and conditions upon granting any such application as he finds necessary to effectuate the purposes of this Act. Serum used in computing the required reserve supply of any manufacturer shall not again be used in computing the required reserve supply of any other manufacturer." STATEMENT OF HON. ROBERT SIKES, A REPRESENTATIVE IN Mr. SIKES. Thank you Mr. Chairman. Mr. MATTHEWS. May I express my profound appreciation for the privilege of having my distinguished colleague from Florida here this morning? Mr. SIKES. Thank you, Mr. Matthews. The CHAIRMAN. We are delighted to have you, Mr. Sikes. You may tell us about the bill. Mr. SIKES. I am appearing in support of H. R. 11415 which is identical with S. 3476, introduced by Senator Symington, and which has been passed by the Senate. These bills have a favorable report from the Department of Agriculture, they are supported by the industry which is affected. Mr. Chairman, in 1935, in an effort to have an adequate supply of hog-cholera serum on hand with which to cope with outbreaks of hog cholera, Congress enacted a law requiring serum producers to have on hand as of May 1 each year an inventory of completed serum equal to 40 percent of their previous year's sales. Since 1935 there have been shifts in hog production, it is no longer concentrated within a period of a few months, it is more constant throughout the year and a higher percentage of hog production has moved into the South. These changing production patterns have brought a change in the demand for hog-cholera serum. As a result, the industry sales data show that the heaviest requirements for hog-cholera serum now begin in March and extend through June. Therefore, serum producers have to produce serium actually to their needs in order to have 40 percent of their annual inventory on hand on May 1. The industry has suffered as a result of this requirement. They have consulted with the Department of Agriculture, and it has been jointly agreed that the existing law could properly be amended in order to have T t the 40-percent inventory moved back to April 1 of each year, and in addition to that change it is proposed to authorize the Secretary of Agriculture upon written application by a producer, to establish a mutually satisfactory date between January 1 and May 1 for the manufacturer to meet with the 40-percent reserve requirement if the Secretary finds that is a proper arrangement. Mr. POAGE. All this bill actually does is to change the date from May 1 to April 1? Mr. SIKES. Essentially that is right. Mr. POAGE. Then it gives the Secretary and the manufacturer the right to make an agreement that if he is in an area where April 1 does not represent his maximum demands but probably February 1 does, that with the Secretary's permission he can establish a different date on which he must have this amount on hand. It does not reduce for any producer in the United States the requirements that he must have on hand at some time during the year Mr. SIKES. That is right. Mr. POAGE. Adequate supplies to meet any possible outbreak? Mr. POAGE. The 40-percent requirement was put in when we thought all over the United States that the 1st of May was the time of year when we were most likely to need these maximum requirements. Mr. SIKES. That is correct. Mr. POAGE. I am sure our friends from the hog areas will agreewe now think that it probably ought to be just a little earlier. Mr. SIKES. That is the situation. Mr. POAGE. We think it ought to be the 1st of April for everybody-certainly, in many of the Southern States it should be earlier than that. Mr. SIKES. Yes. Mr. POAGE. If the Secretary decides it should be the 1st day of February or 1st of March, in Florida or in Alabama, the Secretary can enter into an agreement with the manufacturer. He does not have to do it with anyone unless he wants to? Mr. SIKES. That is correct. The gentleman has stated the situation exactly. Mr. HOEVEN. Mr. Sikes, this is a bill which provides for better planning for the manufacturing of the supply? Mr. SIKES. Definitely so. The CHAIRMAN. We have a favorable report from the Department, and the Senate bill has already been passed. Mr. SIKES. That is correct. The CHAIRMAN. Do you wish to report the Senate bill rather than yours? Mr. SIKES. I would recommend that. Mr. HILL. Let me ask a question. This says "anti-hog-cholera serum and hog-cholera virus." Do you have hogs down in Florida? Mr. SIKES. We not only have hogs, but they get diseases like cholera which undoubtedly come from other States. Mr. HILL. I suppose they get some of the diseases from some of the hog States farther North? Mr. SIKES. We get a lot of strange things that come into Florida, but most of them bring money and we like that. Mr. HILL. Regarding your relations to the Republican Party, I favor that. The CHAIRMAN. Mr. Simpson? Mr. SIMPSON. I would like to ask a question. One of these hogcholera serum plants is located in my county in Illinois. I understand the hog serum must be kept under refrigeration at all times? Mr. SIKES. That is right. Mr. SIMPSON. Down in the South where do they get it? Mr. SIKES. Serum is now manufactured in the South, but some of it, of course, is shipped in from other States. Mr. SIMPSON. I am serious. Every hog-serum plant that I know of located in the Midwest is located there. Mr. POAGE. Oh, no; there is one in Dallas. Mr. SIKES. There are a number of others. They are found all over the country. Mr. HILL. Do not leave me out. We have a large one in Denver. I have no doubt that you get considerable serum from the Franklin Serum Co. ? Mr. SIKES. That is right. This is a nationwide industry. There are producers scattered throughout the Nation. The serum must be kept under refrigerated conditions, as stated by the gentleman from Illinois. That is no major problem. Mr. SIMPSON. They are in Iowa and Illinois and Nebraska and Missouri. And I know the serum must be kept under refrigeration. I know that it is a hardship on the manufacturer to be compelled to keep a high inventory of 40 percent. This was all brought about by agreement when the serum plants were cutting each other's throats and cut the prices. Actually it is a situation whereby they cannot fall below 35. I would like to know where the Serum Producers Association stands on this. Mr. SIKES. The Serum Producers Association is supporting this bill. They are all supporting it, and at their meeting in Washington earlier in the year they went on record for it unanimously. I have heard no objection to it whatever. The companion bill was introduced by a Midwestern Senator, Senator Symington. And as you well pointed out this requirement for 40 percent reserve coming as late as it does, after the peak utilization for the year, means that the manufacturer has to build up his reserve stocks during his maximum sales. That means excess stocks of serum which must be kept under refrigeration until the next selling season. Mr. SIMPSON. For the sake of information on my part I cannot see what difference it makes what date is necessary for this serum to be on hand, for the simple reason that the South has two litters of pigs a year. Pigs go to market every 6 months and they have to be vaccinated. Mr. SIKES. You are better acquainted with the problem of hog production that I am. You are from a State which has a great volume of hog production. Nevertheless, the records show that the greatest demand for anti-hog-cholera serum is during the early part of the year, extending from February until June. The industry and the Department have agreed that it will work a lesser hardship if they can have the 40 percent reserve requirement effective earlier in the year. As it is, their peak selling season is at the time the reserve requirement is highest. Consequently they have to build up a new supply in order to meet the 40 percent reserve requirement and carry that supply over to the next heavy sales season. Mr. SIMPSON. They have to keep it under refrigeration. They have to breed the hog and get a certain amount of blood, and that is a long-drawn-out process. Several years ago, this serum association recognized by the Bureau of Animal Husbandry appeared before the House Agriculture Committee in opposition to bringing out the rabbit virus serum. Does this bill in any way affect the supply of hog vaccine or innoculation? Mr. SIKES. This applies only to anti-hog-cholera serum and hogcholera virus. I know of no connection it would have with any other. Mr. SIMPSON. This seems funny to me. I haven't heard from any one of these hog serum plants in Illinois. The CHAIRMAN. Let us put it aside if it is controversial. We have a letter from the Department favoring the bill and the Senate has already passed it. Mr. SIMPSON. I want to find out from the serum group if they are in agreement with the Department of Animal Husbandry as to this. The CHAIRMAN. It says right here in the bill, the bill changes the date. Mr. HILL. It says further down, the date of April 1 is equally as appropriate as May 1 for requiring manufacturers of anti-hog-cholera serum and hog-cholera virus to have on hand 40 percent. So, evidently, the manufacturers would not be hurt. Mr. SIMPSON. I want to call up this friend of mine, C. S. Greene, at Whitehall, Ill., and ask him. Then I will be ready to vote. I will go out right now. The CHAIRMAN. We do not want to hold up the session until you. return. Mr. SIMPSON. I will go outside and call him up right now. The CHAIRMAN. Mr. Sikes, we thank you very much. We will report the bill out for you as soon as Mr. Simpson gets back. Mr. SIKES. Thank you very much. H. R. 6542 The CHAIRMAN. Mr. Thomson has a bill, and we have a letter from the Department dated May 1, 1958, recommending that the bill be enacted. Are there any questions you want to ask the author of the bill, the distinguished gentleman? (H. R. 6542 and the report are as follows:) [H. R. 6542, 85th Cong., 1st sess.] A BILL To authorize the Secretary of Agriculture to convey certain lands in the State of Wyoming to the town of Dayton, Wyoming Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of Agriculture is authorized and directed to convey quit claim deed, without consideration, to the town of Dayton, Wyoming, all the right, title, and interest of the United States in and to the following described lands located in said town of Dayton, Wyoming: Beginning at the northwest corner of block 9 of the original town of Dayton, Wyoming; thence northerly along the east line of said Main Street 60 feet; thence easterly |