The affidavit, incidentally, said $3 per unit.

However, I know him well, and his mixup in his figures is pardonable and understandable. The thing that is reprehensible and unpardonable is the attempt to portray him as an exploited person whose only income is from pulpwood production.

McKinley Barnes has a school bus route. Therefore, for 9 months out of the year, he can be fairly accurately placed as being at the local schoolhouse at 8 a.m., in the morning, and as school is out around 3 p.m., in the afternoon, he has to be there somewhere near that time to take the children home. His working day is naturally curtailed to great extent under those circumstances, and cannot be considered a full day's work. He received pay for his services to the school. In addition, he has 40 acres of land, is a farmer, raises cucumbers for the pickle market, has a 5.2-acre cotton allotment, and raises some truck crops. Nothing about all of these other activities are mentioned in his affidavit. This is what I mean about "half-truth's" being used. I wonder if the person obtaining his statement bothered to ask about his other activities, or was this statement carefully contrived so that, true to a point, it might serve as a false accusation.

The statement also includes a graph which can go in the record, Mr. Chairman, showing how Mr. McKinley Barnes worked at pulpwood production and you can see that his work in pulpwood production only increased during the periods when he was not driving the school bus. This is merely one sample of what we found, and if you will permit it being entered in the record we would appreciate having it made a part of the record.

Mr. ROOSEVELT. Without objection, it is so ordered. (The statement referred to follows:)

To Whom It May Concern:

MARCH 30, 1964.

Over 30 years ago, a man mortgaged his home for the necessary capital to start a new business-a business new both to him and to the area in which he lived. A hardboard mill had started operating in the vicinity, and he had talked the procurement manager of the new mill into giving him a contract to supply pulpwood, so he became a wood dealer. He obtained this contract because he had been in the lumber business, had a reputation for fairness and honesty, and was well known throughout the area from which he would supply pulpwood.

Into this new job he put all of his energies. Pulpwood was a new product, and he had to start from scratch, contacting people, advising them of the new cash market that was available, and then working with them to find out the quickest, easiest, and best method of producing pulpwood. Most of his producers at that time started out cutting their own timber, but that was exhausted, and they needed a new supply to work in. If they had difficulty, he would help them locate favorable tracts, and if it were necessary, he would help them with their financing. Gradually, through custom, he became sort of a clearinghouse for pulpwood timber-for people with timber to sell would contact him, and he would pass that information on to producers.

The area in which he bought pulpwood was primarily an agricultural area. and during the planting season and the harvesting season, practically everyone was engaged in agricultural occupations, so he had to work out arrangements with the mill to stockpile wood during the seasons when the farmer was not engaged in agriculture, so that he would ship to the mill an even flow of wood. He purchased, or leased, suitable blocks of land along the railroad in his supply area so that the producers would have room to store this wood, and thus the woodyard was born. Gradually, as the mill grew, his business grew, and at certain railside locations he was able to hire someone to check the pulpwood trucks as they came in, and pay the producer on the spot. On remote and small yards, he met the producer on certain set days, and paid him for his wood.

As improvements in timber cutting were made, he saw that these advantages were passed on to his producers through education and demonstration, and

as timber handling improved through the use of trucks, winches, and allied power equipment. he saw that the producer was informed.

In so many cases, financing couldn't be arranged by these producers, as their farms were tied up through agricultural financing at the local bank; so, in a limited way he assisted the producer in buying needed equipment by supplying money.

After a while, competitive dealers from other mills came into his area, and this created a highly competitive buying market. The dealer with the most experience and ability became the most successful, as in any other competitive business in our economy. Because of this, he prospered.

During this long period, a new concept came into prominence throughout the southland-conservation and tree farming-and like other dealers with foresight, he was a leading figure in his area in promoting this program. He helped on a State legislative level to see that timber taxation rates were just and proper, and that fruitful legislation on conservation was enacted.

All sorts of problems arose during these years-problems in the woods, problems in timber and pulpwood handling, and problems from the mill level. To all of these problems, this man was one of many dealers who applied their time and effort to seek satisfactory solutions, and their contributions were many and varied.

In 1950, death brought an end to these activities. I know these facts to be true, and can speak with authority about this man's career, for I was very close to him during this time-he was my father.

After his death, I took over, and new improvements were made, as technical information became known. New methods were discovered for handling pulp wood in bulk, and as paved highways and larger and better trucks became available, the need for many small yards dwindled. I was able to construct two large concentration yards, with railside facilities, and mechanical equipment to unload the trucks, store the wood, then load it on the car for shipment.

With my own money, I personally designed, and oversaw the construction of my yards, putting a lot of time and effort on arrangements for the quickest and easiest means of handling pulpwood. I own and operate these yards myself, and they represent the sum total of a lot of years of hard word. My employees on these yards are fully covered by the wage and hour, and all other laws. Today, I am still a dealer, supplying pulpwood from a three-county area to pulp and hardboard mills.

The history of our business can be duplicated by many dealers in Mississippi. We think we, as dealers, have offered a distinct service to mills, producers, and small land owners, which began many years ago, and continues through today. All of this time, first my father, and then I, thought that we were legitimate businessmen, aiding and assisting in the economy of our area. You can imagine my surprise when, in testimony before the U.S. House of Representatives, Labor Subcommittee, I and others of my profession were classified, to put it mildly, as "illegitimate children" of the pulp industry. Although I can recite and prove 30 years of uninterrupted operation in this particular field, by my father and myself, we are classified as "Johnny-come-lately's," who have appeared on the scene recently, just to cirmumvent the wage and hour law. We are depicted as tyrants who control everything in our respective areas with an iron hand. Last year, I purchased pulpwood from 383 different producers at my two yards, and I am just not rich enough, strong enough, and physically capable of personally superintending the lives of that many individuals, especially when they are scattered over three or four counties. We buy wood on a competitive open market and no one has been forced by any means to do business with me.

A great hue and cry is made over the use of quotas for dealers. Now I am no mill expert, but I think anyone with sense enough to get in out of the rain can understand that any manufacturing plant must have some orderly method of supplying wood to its machinery. I personally receive an order for so much wood per week from the mills, and it changes only about twice a year. I then inform my producers of tthe types of wood that we are buying, and with my large storage facilities, I can iron out the difficulties caused by inclement weather, and the seasonal disruption in wood supply due to agricultural activities. In this respect, an affidavit was obtained from one of my producers which is very typical of the "half truth" type of attack being made on the dealer. In

testimony before Congress, this producer was represented by a Mr. A. F. Hartung, president of the International Woodworkers of America, as being a typical small pulpwood producer. With this contention that he does typify a wood producer in my area-I agree. This producer, named McKinley Barnes, testified that he sold me 74 loads of wood, and couldn't make enough to support his family of 12. Now honestly, that is a pretty tall order for any undertaking, for it takes a lot to support 12. I'm sure he meant no perjury when he called my yard the Masonite Woodyard-for, although I own this yard lock, stock, and barrel, it is natural that I would be identified with Masonite after 30 years of supplying them from this area. Barnes made his affidavit in March of 1963, so I presume he was testifying as to 1962. My records indicate that he hauled 106 loads of wood in that year, grossed $2,038.84 on pulpwood alone, and until the last part of the year, he asked that we deduct from his check and pay to various landowners. stumpage at the rate of $2 per unit. However I know him well, and his mixup in his figures is pardonable and understandable. The thing that is reprehensible and unpardonable is the attempt to portray him as an exploited person whose only income is from pulpwood production.

McKinley Barnes has a school bus route. Therefore, for 9 months out of the year, he can be fairly accurately placed as being at the local schoolhouse at 8 a.m. in tthe morning, and as school is out around 3 p.m. in the afternoon, he has to be there somewhere near that time to take the children home. His working day is naturally curtailed to great extent under those circumstances, and cannot be considered a full day's work. He received pay for his services to the school. In addition, he has 40 acres of land, is a farmer, raises cucumbers for the pickle market, has a 5.2-acre cotton allotment, and raises some truck crops. Nothing about all of these other activities are mentioned in his affidavit. This is what I mean about "half truths" being used. I wonder if the person obtaining his statement bothered to ask about his other activities, or was this statement carefully contrived so that, true to a point, it might serve as a false accusation. The attached graph of the pulpwood sold to me by McKinley Barnes, by weeks, points up the close correlation of agricultural employment and pulpwood production in this area. It is self-evident that during his school bus operation and farming operation periods, he was engaged in pulpwood production only on a sporadic part-time basis-although I was needing wood at the time. McKinley Barnes only went into it seriously during the summer season between planting time and harvesting time. We did shut down for 2 months that particular year, as he testified, but the shutdown was caused by my lack of markets. In fact, if I and other dealers had not purchased and stockpiled wood during the period prior to September 1, the usual advent of harvesting in this area, this man would not have been able to operate during the summer. However, we knew that most producers, and Barnes is a prime example of this, would be out of the pulpwood business during harvesting season, so we tried to arrange it to the best interests of all concerned. That fact is not mentioned in the affidavit, either.

I do not know all of the economic factors in the pulpwood business. However, under the present system, the dealer, with his freedom from corporate strictures, and embodying the flexibility of free-enterprise operation, makes a valuable contribution to the welfare of both purchasing mills and producers. I do know that if the 12-man exemption is dropped, then the system of procurement that now exists, and has existed for over 30 years, will have to be discontinued. I cannot police the 383 different men who sold me wood last yearneither can anyone else it is phyisically impossible, scattered as they are. Any other system of producing wood would mean a small number of heavily mechanized operations, being forced by economics to work only on the larger timber tracts. Those men who sold me wood last year-such men as McKinley Barnes-will not have a market for their wood, so they will have no job. either full or spare time as it may be. There will be little or no incentive to continue in the practice of growing fairly small blocks of timber on farm acreage that is unsuited for agricultural purposes, as a large-scale mechanized operation would certainly find these tracts too small to fool with. In short, the economy of my area will be dealt a crippling blow by the elimination of the 12-man exemption, and the very ones who are ostensibly supposed to be protected will be the first to feel the cutting edge of the consequences.

Mr. BROMLEY. I don't know if we want to quickly go over the summary of these others. We can mention them by name.

Mr. ROOSEVELT. We will leave the record open for such ones as you wish to put into the record and without objection that will be done. (The information referred to follows:)

STATEMENT SUBMITTED BY WILLARD S. BROMLEY, EXECUTIVE SECRETARY, AMERICAN PULPWOOD ASSOCIATION

For the record we wish to include the following statements which are in response to affidavits filed by Mr. Hartung on March 13, 1964.

REGARDING RICHARD SMITH'S AFFIDAVIT (REPORT BY MEMBER OF AMERICAN PULPWOOD ASSOCIATION)

His statement "I do not even have an opportunity to participate in an insurance program for the protection of my family" implies that he is not covered by any insurance whatever. This is incorrect as to workman's compensation, in all probability. Langston, having regularly a crew from 30 to 35 men, must certainly carry workman's compensation insurance (and crewmembers, including Richard Smith, are under coverage of Wage and Hour Act since crew exceeds 12 men. Smith's affidavit has no bearing on the 12-man exemption). His statement "I work *** 52 weeks a year ***" is necessarily erroneous, though to what exact extent we cannot say. Due to weather conditions, demand for wood and other variables, none of the contractors or producers work crews in every one of the 52 weeks of a year.

Regarding Luther Hall's affidavit

(Report by member of American Pulpwood Association)

We cannot verify the statements in his affidavit about his employment by the company, because his personnel file is not here. If, as he says, he was employed on the "company railroad" that probably accounts for the fact that his personnel records are absent. The company railroad was the Franklin and Carolina and was sold to the Atlantic Coast Line May 31, 1958, and all personnel records of the Franklin and Carolina employees were turned over to the Coast Line.

He may be right in his affidavit in saying that he has been working "in the woods over 13 years," but according to the memory of our people he never was a part of the company's woodland crews. He was employed only on the railroad. The implication of his statement about insurance program is probably incorrect as to workman's compensation insurance, as stated under the Richard Smith affidavit above commented on.

His affidavit that he works 52 weeks a year is subject to the same comment the same point under Richard Smith's affidavit (and Luther Hall is also em