1,973,000,000 pounds of tobacco sold on these auction markets were inspected under these acts. A set of three graders, an average of three graders, are used for each of the 218 sets of buyers. In other words, you have to have a set of inspectors for a set of buyers, and that is the purpose for which most of the money is spent under this act—to provide for the inspection of tobacco as it is sold at auction through these markets. Mr. WHITTEN. I will ask that pages 377, 378, 379, 380, and 381 be included in the record at this point. (The pages referred to are as follows:) STATUS OF PROGRAM CURRENT ACTIVITIES The purpose of the tobacco acts is to assure tobacco farmers a fair price for their product, in relation to quality and the current market, by providing: 1. Inspection services (grading tobacco). 2. Market news. 3. Technical assistance in sorting and preparing tobacco for market. 4. Standardized grades for tobacco. 5. Tobacco inventory and statistics reports. 6. Export permits. Current activities under the acts include: 1. Inspection and market news services at auction markets: Federal inspection and market news services are provided in the following manner at the auction markets which have been designated by the Secretary of Agriculture for mandatory inspection service after approval by two-thirds of those voting in a referendum of farmers who sell their tobacco at the market: (a) Shortly before the sales begin, current price and market news reports are made available to farmers on warehouse floors (which vary in size up to 6 acres in floor area). Current price information is also made available through the facilities of the press and radio and established mailing lists. (b) Immediately before the sales begin, Federal inspectors examine each pile or basket of tobacco and designate the grade of each according to group, quality, color, and size. A ticket indicating grade is placed on each pile or basket. (c) As the sale begins, a set of buyers follows the auctioneer to each lot of tobacco. The advance distribution of market information enables the farmer to compare bids with the prevailing market price and withdraw his tobacco for resale if the highest bid is not considered adequate. A check of rejections and resales conducted in the past showed increased returns to farmers varying from 21 to 36 percent over the original bid. 2. Technical assistance to farmers in preparing tobacco for market: This assistance includes demonstrations at farms and schools, exhibits at county fairs and farm conventions, and bulletins on the preparation of tobacco for market. Through this assistance the farmer is: (a) Informed of the grade standards applicable to his crop; (b) taught how to obtain the best grades by sorting the tobacco leaves into groups with like characteristics; (c) instructed in applying market news reports to the price bid for his tobacco. School demonstrations, given in cooperation with teachers of vocational education in rural schools, include: (a) Instruction in and study of typical grade samples, (b) Supplying suitable literature for reference purposes, (c) Special demonstrations for veterans who are engaged in producing tobacco. 3. Establishment of standards in grading of tobacco benefit both producer and tobacco trade: (a) By providing an incentive to farmers to improve tobacco quality in order to secure better grades and higher prices; (b) by providing a quality standard against which tobacco buyers may measure the quality of tobacco they wish to purchase. Examples of progress and volume of activity 1. Inspection and certification service.-(a) Number of markets and volume of tobacco inspected: A set of tobacco graders (averaging 3) is required for each set of buyers. (b) Volume of inspection of tobacco by class for fiscal year 1949: 1 Excludes Ellerbe, N. C., designated but not inspected. 5 174, 024, 000 2, 146, 793, 889 * Includes Dunn, N. C., not designated in fiscal year 1949; (designated July 15, 1949). 3 Includes 239,078 pounds sold at Ellerbe, N. C., and not inspected. Includes Somerset, Ky., and Sparta, Tenn., undesignated markets. Includes 5,000,000 pounds Wisconsin cigar leaf, and 12,000,000 pounds of Puerto Rican cigar leaf. (c) Inspection of tobacco for proposed new sales is being provided for reasonable periods of time, pending a determination as to whether an "auction sale" is established. 2. Market news.- -(a) Daily and weekly tobacco market news service complements tobacco inspection. Farmers, the trade, and others are provided with current average prices by United States grades, and other pertinent market information by types of tobacco. This service enables farmers to know if the price bid for their tobacco is in line with current prices. (b) Farmers were furnished 860,000 copies of reports directly at the time their tobacco was offered for sale. This was 80 percent of the reports distributed. A 15-percent decrease in distribution of reports, as compared with the previous year, was attributed principally to the smaller crop and the resultant shorter selling season. (c) Preparation and distribution of market news reports, fiscal years 1947-49: 3. Technical assistance to farmers in preparing tobacco for market.―(a) Volume of activity, fiscal years 1947-49: (b) Farm demonstrations, for the purpose of instructing farmers in the proper preparation of their tobacco for market, were held during the past year on farms and at other rural points in 13 tobacco-producing States, 2 more than in 1948. (c) Farmers' meetings were held at night at rural high schools and other country points to explain to farmers the Federal grades for tobacco and to indicate how these grades, together with tobacco price reports showing current grade averages, can be used to obtain higher prices in selling their tobacco. Through the insistent demand, general throughout the tobacco-producing States, for more farmers' meetings, about twice as many meetings, with five times the attendance, were held in the fiscal year 1949 as in the previous year. (d) School demonstrations, carried out in cooperation with teachers of vocational education in rural high schools, provided for students instruction similar to that given farmers. Typical grade samples were studied and students were furnished suitable reference material. (e) Farm contacts were made by demonstrators in response to requests of farmers seeking further aid in improving their facilities for the better handling of their crops for market. 4. Stocks statistics, grade standards, and export permits.-(a) Stock statisties: A quarterly tobacco stocks report provided an inventory of the classes and types of tobacco held by manufacturers and dealers in the United States and Puerto Rico. An annual report furnished a compilation of tobacco statistics for the crop year, as compared with previous years. (b) Grade standards: Tentative grades were established for the leading Puerto Rican type of tobacco, type 46a. (c) Export permits: Thirty-two certificates were issued during the year for the exportation of tobacco seeds for experimental purposes only. 5. Revenue, fiscal year 1949.-Fees of $6,250 were collected and deposited into the Treasury in connection with permissive inspection services. (The Tobacco Inspection Act of August 23, 1935, provides that no fee shall be charged for inspection at designated auction markets.) Includes reimbursements to "Administrative expenses, Commodity Credit Corporation, Department of Agriculture": 1949, $100,304; 1950, $111,320; 1951, $112,195. Mr. WHITTEN. I notice you are asking for the same amount for 1951, with an increase of $13,400 for the purpose of carrying out the terms of the Public Law 429 on a full-year basis. Here again I would like to have pages 384, 385, 386, and 387 included in the record. I believe that is probably a better description of the work that is done than we could get by question and answer. Are there any questions in connection with that? (The pages referred to are as follows:) STATUS OF PROGRAM CURRENT ACTIVITIES The Cotton Statistics, Classing, Standards, and Futures Acts serve and safeguard the interests of cotton farmers, ginners, spinners, merchants, and ultimate consumers of cotton through (1) quality standardization, (2) classification and grading, (3) market news, (4) quality and price reports, and (5) related activities. Activities under the Cotton Acts include: 1. Classing services.—(a) Providing classing services to cotton farmers, manufacturers, and merchants who submit samples for quality classification. (b) Classification of cotton produced by members of groups organized to promote the improvement of cotton, enabling them to obtain full premiums for improved quality. (c) Classing of all cotton intended for delivery in settlement of futures contracts, to provide assurances to purchasers of futures contracts that cotton delivered will be of tenderable qualities and that no deliveries will be made at overvaluation. (d) Licensing and supervision of licensed classers of spot cotton and linters. 2. Preparation and distribution of standards.-(a) For measuring quality wherever American cotton and linters are sold by grade. 3. Market information and quality statistics.-(a) Current market news on supplies, demand, and prices, enabling farmers to bargain advantageously. (b) Supervising of commercial differences used in settlement of futures contracts by working closely with the 10 spot cotton exchange quotations committees who are responsible for accurate quotations for more than 200 different qualities, scrutinizing quotations and making necessary corrections. (c) Preparation of quality reports annually on carry-over, and periodically on current crop supply to provide: (1) information to farmers concerning those qualities which may be grown and marketed to best advantage, and (2) a basis for adjusting production to needs, especially those types best suited to the requirements of manufacturers and consumers. Examples of progress and volume of program activity: 1. Volume of classing.—(a) Cotton classifications made by Federal employees and by licensed classers (federally supervised under the cotton acts) for the fiscal years 1947-49: |