916 GENERAL FARM PROGRAM 



Mr. • Andresen. Let me ask you this : Before the war we had the 

 dairy production marketing organization. 



Mr. Gordon. That is right. 



Mr. Andresen. I understand that functioned very efficiently in 

 buying surplus dairy products in the flush season and selling them in 

 the short season. 



Mr. Gordon. Correct. 



Mr. Andresen. I think they lost no money. 



Mr. HoLMAN. They wound up with $1,000,000 in the Treasury, so 

 they could not have lost money. 



Mr. Andresen. Let me ask you there, Mr. Holman, would it not 

 be feasible to have as a permanent proposition an organization run by 

 the industry itself to take up these surpluses in place of the Govern- 

 ment handling it? 



Mr. HoLMAN. I think that is a fair statement of the general feeling 

 of our people. We have had witnesses come before this committee. 

 You may recall Mr. Brandt has appeared here several times on the 

 self-help method of disposing of surpluses. We have not made much 

 progress. 



Mr. Pace. Industry would run its stamp plan. 



Mr. Holman. They could not run a stamp plan. They could act 

 under contract with the Secretary just like the DPMA did, and do a 

 very fair job, and a much better job, we think, than the Commodity 

 Credit Corporation because it would have more practical people in it. 



May I clear the record? I think there is a slight misunderstanding 

 as to just what I did say concerning the application of a national 

 marketing agreement for certain manufactured products. I said that 

 I thought that the majority of our people would be opposed to a 

 national order for butter and for cheese. I made no reference to 

 evaporated milk because there is some slight disagreement in our 

 ranks over that. The result of that difference of opinion is that the 

 federation officially is absolutely neutral in regard to whether there 

 shall or shall not be an evaporated milk order. I hope my statement 

 is satisfactory to Mr. Perdue who is behind me and very deeply 

 interested in securing a national evaporated milk order. Mr. Perdue 

 represents one of our important member associations. 



Mr. Pace. Is there anything that you want to say right there? 



Mr. Perdue. I think the record has been sufficiently clear. 



Mr. Andresen. I want to get back to this DPMA. I am really 

 interested in having the industry functioning here and getting proper 

 income for the dairy farmers of the country. 



I want the candid opinion of you gentlemen here as to whether or 

 not in lieu of some of the proposals we have on reports if industry 

 itself could not recreate, under the law, the DPMA, and function 

 effectively for the producer and get better returns for the farmers? 



Mr. Holman. You have a tremendous problem of capitalization 

 there. 



Mr. Andresen. Suppose that we put up $1,000,000,000 capital 

 from the Government to handle that proposition. The Brannan plan 

 to get 15-cent milk will be $2,480,000,000. Suppose that you take 

 that and deal with all dairy products. 



Mr. Holman. Let me make a guarded answer to that and I am 

 not sure that I am giving the correct one : If the operation could be so 

 safeguarded that the agency doing this job would be protected from 



