GENERAL FARM PROGRAM 1057 



5. Used in manufacture of all medical catheters purchased by the armed forces. 



6. Used as a necessary base for marine paints. 



7. Used for waterproofing shells and other ammuntion. 



No substitutes for tung oil have been found which will fill the above require- 

 ments. Thus it appears that tung oil is a critical war material. 



In addition to the above war uses, it is used as a drying oil in paints and varnishes 

 and in the manufacture of hnoleum and printing ink. During the war, however, 

 it was diverted from these uses for war purposes only. 



NEED FOR PRICE SUPPORT 



Having shown the necessity of this oil in time of war, I will now attempt to 

 show the need for aid to the domestic growers. 



Prior to the war, the cost of production was from $27 to $32 per acre. The cost 

 of milling or extraction of the oil from the nuts at this time was $8 to $9 per ton. 

 The price per pound of oil was from 21 to 28 cents. 



Now the cost of production, due to high wages, increase in cost of fertilizers, 

 machinery, etc., is from $56 to $62 per acre or from $29 to $30 per acre more than 

 before the war. The cost of milling is now $15 to $17 per ton or an increase of 

 approximately $7 per ton. The price is now down to 19 cents per pound or a 

 decrease of from 4 to 9 cents per pound. 



Thus, it is readily apparent that the producers cannot stay in business with less 

 income and more expense. 



Moreover, the domestic tung is in an area of the South that is in great need of a 

 more diversified agricultural program and of the industrial growth of the crushing 

 mills and new paint plants that follow. If the areas in tung are bankrupt, these 

 lands will be put into crops upon which there is parity and, of course, as follows 

 that large private capital will be wasted. 



CAUSE OF PRICE DECREASE 



China is the principal producer of tung oil. There the trees grow wild and labor 

 is very cheap, making the cost to the owner very little. Their oil is inferior to 

 domestic oil and will not keep as well in storage. As you gentlemen well know, 

 China is now being overrun by Russian-dominated Communists. The wealthy 

 Chinese owners, in an effort to convert their oil into American dollars before con- 

 fiscation by Communists, dumped their oil on our market and offered it for sale at 

 practically any price. Naturally the American consumer purchased at the 

 distress price. 



The Communists, no doubt, in an effort to obtain the American dollar, wiU 

 continue to dump the oil on our market. This will mean that our local producers 

 will not be able to sell their oil for a rpturn sufficient to even pay expenses. Then 

 only two things can happen: (1) Bankruptcy of the producer, or (2) they will, in 

 order to cut expenses, curtail their cultivation and use of fertilizers, thus allowing 

 their groves to depreciate and decrease the supply. 



Why not buy from China and allow industry to benefit from reduced prices? 

 Why help local producers if they cannot compete with coolie labor and low cost of 

 production? It must be borne in mind that tung oil is a critical war material and 

 our domestic supply must not be endangered. We well know that in event of war 

 with Russia we could not possibly obtain oil from Russian-dominated China. If 

 we do not protect our domestic producers, we may well be denied the use of this 

 most important strategic material. 



Great Britain, in order to assure a supply in event of war with Russia, is now 

 spending $4,000,000 in planting of tung trees in South Nysaland, where they now 

 have a produ'ction of about 400 tons of nuts per year. They are planting sufficient 

 acreage, which, when it comes into full production, will assure a supply of 7,360 

 tons annually. 



Should we sit idly by and allow our production of this strategic material to be 

 endangered by Russian-dominated Communist China? 



INVESTMENT OF TUNG GROWERS IN THE SECOND CONGRESSIONAL DISTRICT OF THE 



STATE OF FLORIDA 



In my congressional district there are seven tung groves containing about 

 7,550 acres. Most of these groves are now of good bearing age. The average 

 cost to bring the present groves to good bearing age is $350 per acre. This will 

 represent an investment of $2,642,500 in this district. The first commercial grove 

 planted in Florida was planted in this district. Had not the owners of these groves 



