700,000,000 to 950,000,000 pounds, of which lard constitutes about three-fourths. Being now on a deficiency basis, we have reached a point when a tariff on these oils and fats can be made of some benefit to the producers of the country. I think it is generally admitted that when one is importing a tariff does apply. We could also show, if we were on a surplus basis for all of these oils and fats, that because of the cheaper character of the production in the Orient and other places-and I might state that I have been in the Orient and studied this question there at one time that the entire price structure of this country would be lowered as a result of that importation. One further point, gentlemen, before my time elapses: The world trade in the oils and fats is trending toward raw materials. The policy of the western European countries before the war and after the war has been to gather their raw materials in the sources of production, bring them to these countries, convert them there, in order to get the cattle feed supply, to give employment to their labor, and to make the profit in the export trade of the oils. Were there a tariff barrier against these oils, that trend would continue. In other words, if any argument is made before this committee that because of the tariff upon these oils, our importers and our manufacturers are denied a right to go into the markets of the world and purchase their materials by competitive prices, we offer in contradiction of that charts 8, 9, and 10, which show conclusively the historic trend in the western trade. Mr. HADLEY. I understand that you wish to have the committee take your view, that we give you ad valorem rates instead of specific rates? Mr. HOLMAN. Yes, sir, on refined oil and crude oil. Mr. HADLEY. They bear specific rates now? Mr. HOLMAN. They bear specific rates now. Mr. HADLEY. Are you at the moment able to give the committee the specific equivalent of 45 per cent ad valorem on the several items? Mr. HOLMAN. With regard to the major oils, like coconut oil and cottonseed oil, the duty of 4 cents a pound is equivalent to 47 per cent ad valorem on foreign invoice values. A duty of 45 per cent would mean about 3.9 cents on the specific basis. Mr. HADLEY. It is helpful for the committee to get a picture of what the equivalent would be as related to ad valorem duties, so that we could get a picture of what it means without figuring it out. Furthermore, sometimes specific duties are preferable to ad valorem rates where it is practical, but you say in this case it is impractical. Mr. HOLMAN. We worked out a list of specific proposed duties to propose to the committee. We found that the same rate, like 3 cents on the oil or 4 cents on the oil would run, in one oil as low as 37 per cent. In another oil it would run as high as 70 per cent. Knowing the price relationship of these oils, we felt that the best equalizing element would be a uniform ad valorem rate of duty applied to them. Mr. HADLEY. The result of your study that you have in your hand answers the question which I have in mind. It would be informative to put it in the record, not as a suggestion, but as contradicting the practicability of the rates. Mr. HOLMAN. I would be very glad to place in the record a statement showing what 45 per cent ad valorem will work out in terms of specific commodities. Mr. HADLEY. That is just what I wanted. Mr. GARNER. What are the raw materials of this country with which these oils come in competition particularly? Mr. HOLMAN. Cottonseed, flaxseed, hogs, corn, beef fats, peanuts, butterfat, soy beans, an infant industry, and the infant industry of tung trees. It represents the major crops in this country. Mr. MARTIN. I was interested in your suggestion that a duty be placed upon copra coming from the Philippine Islands. Do you believe that we have a legal right to impose duties upon articles coming from the Philippine Islands? Mr. HOLMAN. I do; and at the proper time, in discussing Title III of the act, I shall appear before the committee and give the congressional precedents and Supreme Court decisions with respect to Porto Rico. Mr. CRISP. You did not mention it specifically, but of course we produce a lot of peanut oil in this country. Your request for a duty of 45 per cent ad valorem is asked for on peanut oil? Mr. HOLMAN. At least 45 per cent on peanut oil. There is a possibility that because of peanut oil being so closely in competition with olive oil, perhaps the committee should consider that direct competition there. I was speaking, however, of the major oils and fats. Mr. GARNER. That was the object of my inquiry. I wanted to get your view on that situation, because according to the Tariff Commission who have investigated the tariff on peanut oil with a view to asking an increase, it stated that from 20 to 371⁄2 per cent of the consumption of peanut oil in this country was imported, and that the production is being curtailed. Mr. HOLMAN. Yes, sir. The CHAIRMAN. Are there any further questions? Mr. RAMSEYER. I understand your position to be that you wish to substitute for the specific duties in paragraphs 53, 54, 55, 57, and 58 an ad valorem duty? Mr. HOLMAN. And the subsequent paragraphs wherein these fats and oils occur in the free list. Mr. RAMSEYER. Both animal and vegetable oils referred to in those paragraphs on a straight 45 per cent ad valorem. Mr. HOLMAN. Yes, sir. Mr. CHINDBLOM. To what extent do we produce olive oil in this country? Mr. HOLMAN. I am not advised as to the quantity. It is principally California production. There are some cooperative associations handling olive-oil products in California, but I can not give the domestic production at the present time. Mr. CHINDBLOM. That also would have competition with foreign olive oil? Mr. HOLMAN. Yes, sir; very much. Mr. HULL. If the farmers can avail themselves of these tariff benefits which you propose, and it is your judgment that they can, under the trade and industrial situation, have you in mind an approximation of the amount in dollars that it would be worth to them per year? Mr. HOLMAN. In terms of cottonseed oil, an increase of 1 cent a pound in the price of cottonseed oil can be translated back to the farmer in terms of $3 a ton. I think Mr. Woodall will sustain that, as a crusher, when he speaks. (Mr. Holman submitted the following brief:) BRIEF OF THE NATIONAL COOPERATIVE MILK PRODUCERS' ASSOCIATION AND ALLIED ORGANIZATIONS WAYS AND MEANS COMMITTEE, House of Representatives, Washington, D. C. GENTLEMEN: The undersigned, on behalf of the organizations listed herein, have the honor to file this brief in support of tariff increases on certain items in paragraphs in the tariff act of 1922: The National Cooperative Milk Producers' Federation (316,000 dairy farmers): Arkansas City Milk Producers' Association. Berrien County (Mich.) Milk Producers' Association. California Milk Producers' Association. Challenge Cream and Butter Association (14 creameries). Chicago Equity-Union Exchange (7 centralized creameries). Cooperative Pure Milk Association of Cincinnati. Coos Bay Mutual Creamery Co. Dairymen's Cooperative Sales Co. Dairymen's League Cooperative Association (Inc.). Des Moines Cooperative Dairy Marketing Association. Grays Harbor Dairymen's Association. Illinois Milk Producers' Association. Indiana Dairy Marketing Association. Inland Empire Dairy Producers' Association. Inter-State Milk Producers' Association. Iowa Cooperative Creamery Secretaries' and Managers' Association (120 creameries). Land O'Lakes Cremeries (Inc.) (450 creameries). Lewis-Pacific Dairymen's Association. McLean County Milk Producers' Association. Maryland and Virginia Milk Producers' Association. Maryland State Dairymen's Association. Miami Valley Cooperative Milk Producers' Association. Michigan Milk Producers' Association. Milk Producers' Association of San Diego County. Milk Producers' Association of Summit County and Vicinity. Milwaukee Cooperative Milk Producers. National Cheese Producers' Federation (300 local factories). Northwestern (Ohio) Cooperative Sales Co. Ohio Farmers' Cooperative Milk Association. Pure Milk Association. Scioto Valley Cooperative Milk Producers' Association. Seattle Milk Shippers' Association. Skagit County Dairymen's Association. Snohomish County Dairymen's Association. St. Louis Pure Milk Producers' Cooperative Association. Tillamook County Creamery Association. Twin City Milk Producers' Association. Twin Ports Cooperative Dairy Association. Valley of Virginia Cooperative Milk Producers' Association. Whatcom County Dairymen's Association. Yakima Dairymen's Association. American Dairy Federation, composed of the following national organiza tions: Allied States Creameries Association. American Association of Creamery Butter Manufacturers. Dairy and Ice Cream Machinery & Supplies Association. National Association of Dairy Supply House. National Association of Ice Cream Manufacturers. National Live Stock Producers Association: Thirteen terminal branch agencies, 2,000 local associations. Central Cooperative Association: Seven hundred and fifty local associations. Farmers' Educational and Cooperative State Union of Nebraska: Six hunired and fifty local associations. Missouri Farmers' Association: Four hundred and twenty-five local associations. The above represent 300,000 livestock producers and shippers. American Fish Oil Association: Virginia Fishermen's Association (50 members), United States Fisheries Association. The Pacific Herring Packers' Association. Atlantic Coast Fisheries Co. Bay State Fishing Co. Gordon Pew Fisheries Co. Georgia Farmers' Union. Texas Oil Crushers Association (136 cotton-oil mills). American Farm Bureau Federation: Alabama Farm Bureau Federation. Arizona Farm Bureau Federation. California Farm Bureau Federation. Colorado State Farm Bureau Federation. Connecticut Farm Bureau Federation. Idaho Farm Bureau Federation. Illinois Agricultural Association. Kentucky Farm Bureau Federation. Minnesota Farm Bureau Federation. P Missouri Farm Bureau Federation. New Hampshire Farm Bureau Federation. New Jersey Federation of County Boards of Agriculture. New York State Farm Bureau Federation. Oklahoma Farm Bureau Federation. West Virginia Farm Bureau Federation. The California State Grange. The Massachusetts State Grange. The Nebraska State Grange. The New Hampshire State Grange. The New Jersey State Grange. The New York State Grange. The Ohio State Grange. The Pennsylvania State Grange. The Virginia State Grange. The Washington State Grange. The West Virginia State Grange. The Wisconsin State Grange. The Wyoming State Grange. Farmers' Educational and Cooperative Union of America : Arkansas Farmers' Union. Colorado Farmers' Union. Kansas Farmers' Union. Idaho Farmers' Union. Northern Illinois Farmers' Union. Southern Illinois Farmers' Union. Iowa Farmers' Union. Missouri Farmers' Union. Montana Farmers' Union. Nebraska Farmers' Union. North Dakota Farmers' Union. |