1214 GENERAL FARM PROGRAM 



Mr. Jones. Correct, sir. 



Mr. Pace. Do you agree with me about that, Air. Poage? 



Mr. PoAGE. While I agree we cannot fix all of the details, I do not 

 know how many we might want to wi'ite in. 



Mr. Granger. Mr. Jones, where are you going to propose that 

 you have the support price level? Is it going to be on the clean basis, 

 the grease basis, or what? 



Mr. Jones. I think, Congi'essman Granger, as far as the law is 

 concerned, it would continue to have to be on the grease basis as now 

 established, because parity is calculated on the grease basis, and I 

 think perhaps we have to accept that as the proper basis. 



Mr. Granger. You heard the question yesterday that indicated 

 there is some confusion about what effect it would have on market 

 co-ops. Would you care to say anything about that? 



Mr. Jones. Yes. We think this program would be equally as 

 advantageous for marketing co-ops as any other program we could 

 have. We look at it from the standpoint of the normal operation. 

 We anticipate wool would go in on consigmnent as much and even 

 more under this program, because the grower would hesitate to sell his 

 wool if he felt the price was too low and there was a chance of bringing 

 it up. We do have some opposition — and I want frankly to admit we 

 do have some opposition — I would not say from the co-ops neces- 

 sarily, but from some groups who are in the business of storing wool. 

 It follows that the stock pile which is being built up costs the Govern- 

 ment a great deal of money. If the Government has 100,000,000 

 pounds of wool in storage, it costs the Government $1,000,000 a year, 

 and it does not produce anything. If, like Congressman Alurray's 

 cheese, would improved with age, it would be a little different proposi- 

 tion, but it deteriorates with age, and those who are receiving returns 

 as a result of storage perhaps would be opposed to this program, 

 because it is quite a lucrative business. But we think we can save the 

 Government money, and if we save $1,000,000 a year on 100,000,000 

 pounds of wool, if we have 500,000,000 pounds of wool, it is $5,000,000 

 saved, and that would go a long way, we think, in probably doing the 

 thing Congress wants to do in supporting the price for the producers 

 when they need it. 



Mr. PoAGE. As I understand the marketing of wool, even now, 

 where wool is sold, each man has his identical clip of wool and gets a 

 separate sales slip and a separate check for it. 



Mr. Jones. That is correct. 



Mr. PoAGE. Whether it is sold through a cooperative or sold 

 through a private wool buyer. 



Mr. Jones. That is correct. 



Mr. Andresen. Mr. Jones, as I understand the program to which 

 you have subscribed, the farmer would sell his wool in the open market. 



Mr. Jones. Yes, sir. 



Mr. Andresen. And as long as he would receive a separate pay- 

 ment for the difference between the price he sold at and the support 

 price, he could sell it at any price, could he not? 



Mr. Jones. He could sell it at any price. I think the tendency, 

 Congressman Andresen, would be to sell it at just as high a price as he 

 possibly could, for two reasons, of course the main reason being that 

 is where the most of the money, we would hope, would come from, and 

 if this program is put in on a percentage calculation basis, it means he 



