PKICE SUPPOKT THEOUCtH USE OF PEODUCTION 

 PAYMENTS 



TUESDAY, JUNE 7, 1949 



House of Representatives, 

 Special Subcommittee of the 



Committee on Agriculture, 



Washington, D. C. 

 The subcommittee met at 10 a. m., Hon. Stephen Pace (chairman) 

 presiding. 



Mr. Pace. The committee will please come to order. 

 I would like to state the committee invited representatives of the 

 producers of the six commodities which are now under study to ap- 

 pear today and tomorrows We had hoped to conclude the Secretary's 

 testimony yesterday. There are seven gentlemen, most of whom are 

 from out of town, to be heard this morning. I am therefore express- 

 ing the very earnest hope that we will be able to excuse the Secretary 

 not later than 11 o'clock. 



We had not concluded on the subject of hogs. Mr, Andi*esen, do 

 you have some questions? 

 Mr. Andresen. Yes, sir. 



STATEMENT OF HON. CHARLES F. BRANNAN— Resumed 



Mr. Andresen. Mr. Secretary, you made an estimate yesterday 

 that the hog purchase program would cost around $234,000,000. 



Secretary Brannan. $230,000,000 in round figures, to get about 

 1,000,000,000 pounds of finished pork into refrigeration. There 

 would be a continuing charge after that time. 



Mr. Andresen. Is it your estimate that would be a total loss? 



Secretary Brannan. Let me say it this way: it has potentials of 

 amounting to almost a total loss. If we can find offshore purchasers 

 for it, then, of course, to the amount we could sell it offshore, we would 

 recoup or offset the initial $230,000,000 of investment in the meat. 

 But it is obvious, I am sure, to the committee — it does not even need 

 to be said, I suppose — that you cannot sell it back into the domestic 

 market, because if we were to sell it back into the domestic market, 

 we would still keep the prices depressed below the support level and 

 we would, in effect, be acting as a funnel for buying the pork and put- 

 ting it back in the domestic market. 



Mr. Andresen. If it is your opinion that would be virtually a total 

 loss, that would be just as bad as killing off the pigs. 



Secretary Brannan. You are under no impression that I am ad- 

 vocating that, are you? 



Mr. Andresen. Oh, no; but I say the result would be the same. 



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