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As Forbes magazine states in the September 1963: "The Nation's hotelmen are in trouble *** the motelmen are having a rough time, too ** hotels and motels by the score already have gone bankrupt this year *** most hotel and motel men consider themselves lucky if they're even barely in the black."

As explained to you, we are not accustomed to charging or being able to charge the room rates and meal prices that prevail in the large northern metropolitan

areas.

Can't you see us getting $16 per day single either at the Battery Park or the George Vanderbilt? I hope this has given you a brief insight of the danger facing our industry if this bill passes. As I said above when we are financially able to get a secretary around April 1, I will write in more detail regarding the Battery Park and the effect it would have on us.

Cordially yours,

GEORGE L. CHUMBLEY, Jr.,
Manager.

STATEMENT BY FRED P. COREY, EXECUTIVE VICE PRESIDENT, NATIONAL APPLE INSTITUTE, APPLE GROWERS OF AMERICA

The National Apple Institute, Apple Growers of America, is the national federation of State and regional applegrower organizations representing fruitgrowers in 32 States. National Apple Institute has offices at 2000 P Street NW., Washington, D.C.

We are strongly opposed to the removal or stringent modifications of the present exemptions and provisions of the act, as pertains to the first handling, packaging, canning, or other processing of apples.

We refer specifically to section 301 of the act amending section 7(b) (3) which provides for partial exemption from overtime for 14 weeks for employees in an industry found by the Secretary of Labor to be of a seasonal nature; and which would repeal section 7 (c) of the act which provides for a complete exemption from overtime payment for 14 weeks in the case of an employer engaged in the first processing of or in canning or packing perishable fresh fruits and vegetables.

Section 303 of the bill would repeal section 13 (a) (10) which provides for total exemption from both minimum wage and overtime for any individual employed within the area of production, as defined by the Secretary of Labor, in handling, packing, storing, canning, or otherwise preparing in their raw or natural state, agricultural or horticultural commodities.

Growers are both directly and indirectly involved and vitally concerned in fresh fruit packing operations and in first canning, freezing, or other processing of apples into apple products.

Growers produce and market a very parishable commodity. The production of apples varies with the unpredictableness of the weather, both in total seasonal production and condition and in short run changes within any season, due to high or low temperatures, excessive rain, drought, hail, or other weather factors which affect rate of maturity, quality, or condition and dictate the time and speed necessary for handling and storing and packing and processing the fruit.

The Congress has been most wise and considerate in recognizing the seasonal nature of a commodity such as apples and in providing exemptions from strict wage and hour regulations, as applied to a commodity and an industry such

as this.

Growers and other segments of the apple industry have survived and "made out" as well as they have, in large part, because of these wise exemptions and special provisions of the act which have made it practical and applicable to industries working with such perishable commodities as apples.

Even if the additional actual and reserve labor were potentially available and sufficiently skilled, and producers and first processors could adjust to the changes which this bill (H.R. 9824) would mandate (and this is highly questionable and would pose extreme problems), either the cost to the consumer or loss to producer would have to absorb the much increased cost of such changes; not only the increased cost of additional labor, less efficiently utilized, but increased cost of less efficiently operated plants and facilities, and loss of food which would result from the lesser efficiency and timeliness of operation. In effect, the changes provided for in this bill, so far as the apple industry is concerned, would effectively curtail the ability of operations to adjust to daily and seasonal

demand changes due to the perishability of the commodity. History has demonstrated, too often to be ignored that the highly probable result would be further loss to the grower, or since increased costs to every extent possible, would be passed back to the producer of the product being processed.

The grower vitally needs at least the maintenance of existing provisions in our necessary laws and regulations which adapt and adjust them to fit the instability of our seasonal and perishable food production industries.

The farmer, apple producer included, has done a very remarkable job in feeding America. Economic adjustments in farmer numbers, consolidations of production and marketing, efficiencies in operation, etc., are keeping abreast of changes in our Nation and still presenting a most reasonable food bill to Mr. and Mrs. Consumer. To permit these necessary adjustments, with a minimum of accelerated damage and increased unemployment in industries which are seasonal in production, which produce perishable commodities; certain exemptions and/or variations from laws and regulations governing far less perishable products are both wise and necessary.

We strongly urge that present exemptions and provisions for such industries in the Fair Labor Standards Act, not be modified or eliminated.

UNITED STATES SUGAR CORP.,
Clewiston, Fla., March 4, 1964.

Hon. SAM M. GIBBONS,
Member of Congress,

House Office Building, Washington, D.C.

DEAR CONGRESSMAN GIBBONS: We observe that section 302 of H.R. 9824, introduced by Congressman Roosevelt, provides for the repeal of section 7 (c) of the Fair Labor Standards Act. This action would result in a severe blow to Florida's sugar industry.

The processing of sugarcane into raw sugar (not refined) is a continuous process from time of cuting until the finished product (raw sugar) is accomplished. The sugar content of the cane deteriorates rapidly after the stalks are cut; therefore, these should be conveyed to the mill as soon as possible and be ground immediately. Storage of cane is not possible for it would result in heavy losses of sucrose by inversion.

Harvesting operations in Florida usually begin the latter part of October and continue until late March or April of the following year. During this period the processing establishment (factory) operates 24 hours per day, 7 days per week. As indicated above, this type of operation is essential in order to avoid heavy losses of sucrose. Personnel in the factories work a schedule of 8 hours per day, 7 days per week, during this processing period. The processing of sugarcane into sugar (but not refined sugar) has been exempt from payment of overtime after 40 hours during the period of time that such processing was taking place. This exemption does not apply during the so-called repair season.

We are aware that other sections of Congressman Roosevelt's proposed measure provide for exemptions from the payment of overtime for periods of not more than 14 workweeks in the aggregate in any calendar year in an industry found to be of a seasonal nature. This is fine, but, inasmuch as our processing operations run for more than 14 workweeks in any calendar year, it is not broad enough to provide us with an exemption for our entire season.

We sympathize with the administration in its desire to provide more employment. We believe the Florida sugar industry has already accomplished its share in providing additional employment for people as a result of our expansion during the past 3 years. Efforts to introduce a fourth shift into our operations would present no end of difficulties, to say nothing of reducing the take-home pay of the current employees in the industry from the equivalent of 56 hours per week to the equivalent of 42 hours per week for this period of time.

We hope you, as a member of the House Committee on Education and Labor, will favorably respond to our request for the preservation of section 7(c) as it now appears in the act.

Sincerely yours,

H. T. VAUGHN, President.

STATEMENT BY BUREN E. BRICE, PRESIDENT, THE FLORIDA FORESTRY ASSOCIATION

Mr. Chairman and members of the committee, the Florida Forestry Association is a statewide organization in the great State of Florida, made up predominantly of small businessmen engaged in the business of growing and harvesting forest products. The purpose of the association is to gather and disseminate information in regard to forests, their production, conservation, care, and management, so that enough timber will be grown for industrial needs, along with protecting and improving the other natural resources of the State.

The association respectfully invites your attention to the dangers that the elimination of the 12-man forestry and logging exemption would bring to the small forest-products operators and small tree farmers located throughout Florida. The small forest-products operators presently operates with a minimum of light, mobile equipment which can be quickly moved from one small tree farm to another. He also, in general, pays his woodsworkers on a piecework basis. These small operators are not doing the volume of business necessary to justify the supervision and recordkeeping that would be involved if H.R. 9824 is passed. Even if these operators did the volume of business necessary, the supervision would still be impractical because of the very nature of the work.

It is not uncommon to find a small wood-harvesting crew working in the flatwoods of Florida under conditions where they are not visible to each other, a distance of more than a few hundred feet, because of the dense growth of palmettos present on most of the timberland in the State. The point the association is trying to make here is that close supervision under these conditions is very hard, if not impossible.

As we have previously mentioned, the small forest-products operator would not be alone in his plight if the measure is passed. The small tree farmer would find himself in a similar position with the small forest-products operator. Doing away with piecework and forcing the small operator out of business would cause large companies to establish highly mechanized crews that, due to economic necessity, could not possibly purchase timber from the small tree farmers because of volume and acreage limitations. Besides putting thousands of woodsworkers on unemployment, a trust would be betrayed to the small tree farmer. He has been encouraged by both the Federal and State governments, and especially by the soil bank program and Commodity Credit Corporation program, to plant more trees and practice conservation. These small landowners, finding themselves with a depressed market for their forest products, would have to think again in terms of row cropping wihch would add further to the problems now existing in agricultural surplus.

Another vitally important group of people in the rural areas of Florida, many of whom are members of the association, are the small businessmen directly dependent upon the small timber operator and small tree farmer for their livelihood. These are the people such as the operators of service stations, hardware stores, chain-saw shops, truck dealerships, etc. that would surely have to fold up if the large companies are forced to form large, highly mechanized crews for the harvesting of forest products.

Very little, if any, additional pay would be realized by woodsworkers if they were paid on an hourly basis as was indicated by the survey made on woodsworkers by the Bureau of Labor Statistics in the spring of 1963. This was when the minimum wage was $1.15 per hour. No new figures have been released since the minimum was raised to $1.25, but the association believes that another survey would reveal the same facts. It is quite probable that the remaining woodsworkers would make less money because their incentive to work harder and make more money would be lost if the 12-man exemption is not retained.

In conclusion, the Florida Forestry Association appreciates the opportunity to express its views on this vital issue. It is respectfully requested that, if this measure passes your committee, the House of Representatives, and the U.S. Senate, the 12-man forestry and logging exemption be retained and that this statement be included in the official records of this hearing.

Mr. DENT. The committee stands adjourned. The committee will reconvene on the 6th of April for a 1-day hearing on the problems of the blind.

(Whereupon, at 12:15 p.m., the committee adjourned, to reconvene on April 6, 1964.)

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