AMEND THE AGRICULTURAL ADJUSTMENT ACT SO AS TO INCLUDE HOPS AS A BASIC AGRICULTURAL COMMODITY APRIL 11, 1935.-Ordered to be printed Mr. McNARY, from the Committee on Agriculture and Forestry, submitted the following REPORT [To accompany S. 626] The Committee on Agriculture and Forestry, to whom was referred the bill (S. 626) to amend the Agricultural Adjustment Act so as to include hops as a basic agricultural commodity, having considered the same, recommend that the bill do pass without amendment. The committee considers the report of the Department of Agriculture as sufficient for its report and quotes it as follows: In order to assist your committee in its considerations of the above-mentioned amendment to the Agricultural Adjustment Act, this Department has made a preliminary investigation of the situation existing in the hop industry with a view of determining the effect of such legislation on the industry and furthermore of determining the feasibility of such a program from the administration viewpoint. The tentative conclusions of this preliminary investigation are reported as follows: Prices paid to producers for hops have been below parity for several years. A program of processing taxes and benefit payments would tend to restore parity prices to producers. Such a program appears to be feasible from an administrative standpoint. ECONOMIC STATUS OF HOP INDUSTRY 1. Prices paid to producers for hops have been below parity during recent years, with the exception of a part of the 1933 marketing season. After a rapid rise during the first half of 1933, hop prices declined to 13 cents per pound by the middle of November 1934. This was only 38 percent of parity. 2. At the present time over 95 percent of the hops grown in the United States are produced in the three Pacific Coast States or Oregon, California, and Washington. In 1933 the United States produced approximately 38,500,000 pounds, which was one-third of the world's total hop crop. 3. Total exports of hops from the United States declined from an average of 12,654,000 pounds during the 5 years, 1925-29, to 3,007,000 pounds in 1932. Exports in 1933, however, amounted to 7,700,000 pounds. 4. During the year ended August 31, 1934, approximately 5,700,000 pounds of foreign hops came into the United States. This was the largest quantity imported during any 12 months' period since 1920. 5. More than 90 percent of the domestic hop crop normally enters into interstate and foreign commerce. EFFECTS OF THE PROGRAM ON THE HOP INDUSTRY 1. An average of less than a pound of hops is used per barrel of beer by domestic brewers. The cost of hops, therefore, constitutes a very small part of the total cost of beer to the consumer. It is believed that a processing tax would not decrease domestic consumption of hops in any appreciable amount. 2. As long as this country has an exportable surplus of hops, prices paid by domestic brewers cannot fall materially below the export price, nor is there any reason to expect the domestic price to rise materially above the export price. This situation would not be materially affected by a processing tax. Thus, it would appear a processing tax paid by domestic brewers would not be passed back to the producers through lower prices. Furthermore, if domestic production is controlled so as to avoid material increases in our exportable surplus, a processing tax should not affect the export price. 3. A processing tax on all hops used by domestic brewers probably would have very little effect on the quantity of hops imported. 4. A careful study of the situation should be made, of course, before the amount of a processing tax is established. For the purpose of illustration, however, a figure of 10 cents per pound is used. At 10 cents per pound the amount of tax collected on imported hops probably would more than pay the cost of administration thus permitting the entire amount of the tax collected on domestic hops to be passed back to producers in the form of benefit payments. Benefit payments on hops at 10 cents per pound added to a sale price of 15 cents per pound should increase total returns to growers, on that portion of the crop used domestically, by approximately 67 percent. 5. It is impossible to determine the extent to which a processing tax on hops would be reflected in the retail price of beer. However, if the entire tax of 10 cents per pound were passed on to the consumer the retail price of beer would be increased by less than 1 percent. ADMINISTRATION OF PROGRAM 1. A program of processing taxes and benefit payments on hops appears to be feasible from an administrative standpoint. 2. Production is concentrated in relatively small areas. located without difficulty. Growers could be 3. The production of hops by contracting producers during a base period would not be especially difficult to determine. 4. The tax could be collected from brewers through machinery already set up to collect the Federal taxes on beer. 5. A processing tax and benefit payments on hops should be accompanied by a production-control program. 74TH CONGRESS 1st Session } SENATE { REPORT No. 469 AUTHORIZING APPROPRIATION OF FUNDS FOR PUBLIC ORDER AND PROTECTION OF LIFE AND PROPERTY DURING CONVENTION OF IMPERIAL COUNCIL OF THE MYSTIC SHRINE IN THE DISTRICT OF COLUMBIA APRIL 11, 1935.-Ordered to be printed Mr. KING, from the Committee on the District of Columbia, submitted the following REPORT [To accompany S. J. Res. 97] The Committee on the District of Columbia, to whom was referred the Senate joint resolution (S. J. Res. 97) authorizing the appropriation of funds for the maintenance of public order and the protection of life and property during the convention of the Imperial Council of the Mystic Shrine in the District of Columbia June 8, 1935, to June 17, 1935, both inclusive, having considered the same, reports it back to the Senate and recommends that the resolution be adopted. STATEMENT OF FACTS The purpose of the joint resolution is to authorize the appropriation of necessary funds for maintenance of public order and protection of life and property during the sixty-first annual session of the Imperial Council of the Ancient Arabic Order of the Nobles of the Mystic Shrine, to be held in Washington during the month of June 1935. The days of the session are June 11, 12, and 13, but the activities in connection therewith will consume the entire week commencing Sunday, June 9. The joint resolution (S. J. Res. 49) approved February 28, 1935, authorizes the use of public parks, reservations, and other public space in the District of Columbia and the use of tents, cots, flags, and other decorations or property of the United States by the Washington D. C., 1935 Shrine Committee, Inc. The annual Shrine convention and session attracts visitors in excess of 100,000 to the place of assemblage. The Imperial Council session at Washington in June will bring to Washington delegates from all of North America, including the United States and Canada, and from the Canal Zone, Mexico, and Hawaii. It is estimated that not less than 100,000 persons will come to Washington either by boat, train, or automobile, and most of them will be here for a considerable portion of the week. The hotels belonging to the Hotel Association of the District of Columbia were engaged months ago for the period of the Shrine convention. Large listings of private rooms are now being made. In 1923 the Shriners were quartered on boats docked in the Potomac River and on Pullman trains, in addition to the hotels and rooms used for lodging purpose. One-fourth of the entire rolling sleeping equipment of the Pullman Co. was located at Washington for the period of the convention in 1923. The records of the traction companies show that there was an increase of 800,000 passengers transported during the week. Millions of dollars of outside money poured into the city, and the bank clearings showed an increase of $12,000,000 for the week. The police department was taxed to the extent of its capacity. It is recognized that groups of pickpockets, gamblers, peddlers, racketeers, and other undesirable persons with criminal records follow large convention groups of this sort, necessitating additional police protection. It is recognized that the matter of handling of traffic for the coming convention will be a serious problem. Special requirements governing the handling of traffic and the matter of police protection during the period are being promulgated by the Commissioners. Thousands of persons will come to Washington by railroad, but undoubtedly many of the thousands who came by railroad in 1923 will come by automobile this year. The public schools in several of the close-by States will have closed by the time of the convention this year. On the occasions of large public gatherings at Washington, such as for the inaugural ceremonies, it has been found necessary for Congress to authorize the use of funds for additional police protection, etc. In 1923 Congress appropriated $54,000 for this purpose for use during the Shrine week, and $52,000 of the amount appropriated was actually spent. All of the money appropriated is used for the maintenance of public order and the protection of life and property during the convention week. The convention itself is financed solely from private source. 74TH CONGRESS 1st Session SENATE { REPORT No. 470 TO STABILIZE THE BITUMINOUS-COAL-MINING INDUSTRY, PROMOTE INTERSTATE COMMERCE IN BITUMINOUS COAL, PROVIDE FOR THE GENERAL WELFARE, AND FOR OTHER PURPOSES APRIL 11, 1935.-Ordered to be printed Mr. NEELY, from the Committee on Interstate Commerce, submitted the following REPORT [To accompany S. 2481] The Committee on Interstate Commerce, to whom was referred S. 1417, by means of a subcommittee of its members, held exhaustive hearings on the bill and subsequently amended it in many particulars. The bill as amended was reprinted and renumbered. It is now S. 2481. The committee reports the latter with the recommendation that it be passed. The objects of the bill are: 1. To stabilize the bituminous-coal-mining industry and promote interstate commerce in bituminous coal; 2. To provide for cooperative marketing of bituminous coal; 3. To levy a tax on bituminous coal and provide for a drawback under certain conditions; 4. To declare the production, distribution, and use of bituminous coal to be affected with a national public interest; 5. To conserve the bituminous-coal resources of the United States and to establish a national bituminous-coal reserve; 6. To provide for the general welfare, and for other purposes. The production of bituminous coal constitutes one of this country's greatest basic industries. Upon its service the successful operation of our transportation facilities and the prosperity of a majority of all our other important industries depend. The relationship of the coal industry to the health, comfort, and happiness of the people is immediate and inescapable. Twelve years ago the United States Coal Commission, authorized by Congress, made its report, which, after detailing the intimate relationship of bituminous coal to the national economy, says: It is this indispensable service which the coal mine performs that gives the largest social value both to the property and to its product, and in turn this social |