Mr. BROSSARD. May I finish this statement?

Chairman ROBINSON. Yes. I did not intend to interrupt you. Mr. BROSSARD. Nebraska 1,026.4, Colorado 1,036.8, Utah 914.9, Idaho 946.8, and California 1,096.3. That makes the cost rate per hour of horse labor, dividing the total costs of keeping the horse by the hours he worked, 15.4 cents in Michigan, 13.4 cents in Ohio, 11.3 cents in Nebraska, 12.6 cents in Colorado, 12 cents in Utah.

Chairman ROBINSON. How many hours did the horse work?
Mr. BROSSARD. In which State?

Chairman ROBINSON. In any State. Take any illustration.

Mr. BROSSARD. It ranged from 721.6, Senator, to 1,096.3. Continuing, the rate per hour was, in Idaho, 10.6 cents; California, 16.2 cents; Montana, 11.7 cents; and Wyoming, 12 cents.

Chairman ROBINSON. Mr. Brossard, how did you arrive at the conclusion that it cost $177 a year to keep a horse in California on the farm?

Mr. BROSSARD. We went to the farmers in California.

Chairman ROBINSON. Did you get those figures from the farmer? Mr. BROSSARD. Yes, sir.

Chairman ROBINSON. Did it occur to you that in no place in the United States, on a farm, does it cost anything like $177 to keep a horse?

Mr. BROSSARD. No, sir.

Chairman ROBINSON. Unless it is some show place?

Mr. BROSSARD. No, sir. I think the figures are quite accurate.
Chairman ROBINSON. You do?

Mr. BROSSARD. Yes, sir.

Chairman ROBINSON. Do you really believe it costs $177 a year in California on a farm to keep a horse?

Mr. BROSSARD. I have no reason for doubting the accuracy of these data.

Chairman ROBINSON. And yet you have lived on a farm.

Mr. BROSSARD. Yes; and grew up there.

Chairman ROBINSON. And know the conditions that exist there? Mr. BROSSARD. Yes, sir.

Chairman ROBINSON. Well, we will pass to another subject.

(The data submitted by Mr. Brossard on the cost of keeping a horse are as follows:)

It will be noted that the figures for total cost of keeping a horse in Montana and Wyoming are missing and also the total hours worked per horse per year for these two States. These data have been mislaid in moving the files of the agricultural division of the commission and are not at present available. The rates per hour are available, however, as they were included in the tables of the beet reports now in the hands of the Government Printer.

The horse labor cost per acre in Michigan on the average for the three years 1921, 1922, and 1923 was $13.25. These data are shown in Table 14, page 32 of the commission's sugar-beet report for Michigan. Monday I testified that the horse cost per acre of sugar beets was about $13. I though the members of the committee would be glad to have this accurate statement in the record instead of my approximation.

Total cost of keeping a horse, hours worked per horse per year, and cost of horse labor per hour, on sugar-beet farms of the United States, 1922

Mr. BROSSARD. The data submitted also at the request of Senator Robinson on the sugar factory contracts for the purchase of sugar beets from the farmers.

There is submitted herewith, according to the request of Senator Robinson, a table and statement showing the type of participating contracts based on sugar content of beets and price of sugar. This is representative of the contracts that have been in general use up to 1924.

There are also submitted herewith statements from the 1926 contracts of two companies representing the new type of contracts now in use in most of the sugar-beet producing regions.

The first statement gives the so-called 50-50 participating contract, and the second statement gives the so-called 45-55 contract used in contracting for the production of sugar beets. There are three tables here, Senator.

Chairman ROBINSON. All right; it will be submitted. (The three statements referred to are as follows:)

PARTICIPATING CONTRACT BASED ON SUGAR CONTENT OF BEETS AND PRICE OF SUGAR

The price per net ton of beets will be based on the average sugar content and the average net return f. o. b. factory received for sugar manufactured and sold by the factories located in the Arkansas Valley in Colorado on the line of the Atchison, Topeka & Santa Fe Railway (subject to any tax affecting the net return received f. o. b. factory, not now but hereafter imposed by law), during the period of 12 months beginning September 1, 192-, as per the following table:

Initial payment of $6 per ton will be made on the 15th of each month for beets delivered during the previous calendar month and as much more as sugar returns warrant after taking into consideration deliveries and payments previously made, further payments to be made from time to time as the average net returns received for sugar sold may justify. Final adjustment showing net amount due grower from company, or due company from grower in event of previous overpayment, will be made not later than October 1, 192—, such adjustment, however, not to reduce the price to be paid for beets below the minimum payment of $6 per ton.

50-50 PARTICIPATING CONTRACTS IN REGARD TO THE GROWING OF SUGAR BEETS

All beets delivered at factory or designated receiving station in good condition of 80 per cent purity or more and containing 12 per cent sugar or more will be paid for by the company on the following basis:

There will be appropriated to the growers one-half of the net returns received by the company from the sale of its entire output produced from beets grown under this contract, the net returns to be determined by deducting from the gross sales price all such charges and expenditures as are regularly and customarily deducted from the gross sales of price of sugar, in accordance with the system of accounting heretofore established, showing net returns from sugar sold.

For example: If the company manufactures 125,000 bags of sugar from 50,000 tons of beets purchased, the average extraction per ton would be 250 pounds. One-half, or 125 pounds, would be the grower's portion. If the average net return from sugar sold is 7 cents per pound, the grower would receive 7 cents multiplied by 125 pounds, or $8.75 per ton for his beets.

Initial payment will be made on the 15th of each month for beets delivered during the previous month and will be as high as sugar returns warrant after taking into consideration deliveries and payments previously made. Further payments to be made from time to time as the average net returns received for sugar sold may justify, and final payment will be made not later than October 1, 192—.

45-55 PARTICIPATING CONTRACT IN REGARD TO THE GROWING OF SUGAR BEETS

The company shall pay the grower for each ton of beets delivered under this contract by the grower, subject to tare for dirt and improper topping, an amount equal to 45 per cent of the value of the sugar packed from an average net ton of all beets received by the Columbia Sugar Co., at its plant in Paulding, Ohio, said amount to be determined as illustrated by the following:

Example: If the total net tonnage received by the Columbia Sugar Co. (Paulding plant) is 50,000 tons and the granulated sugar packed is 12,000,000 pounds, the average extraction per ton of beets will be determined by dividing the total number of pounds of sugar packed by the total net tonnage received; 12,000,000 pounds divided by 50,000 tons equals 240 pounds extraction per net ton of beets; 45 per cent of 240 pounds equals 108 pounds. If the average net sales price arrived at as stated below is $8 per 100 pounds of sugar, the amount to be paid to the grower for beets would be $8.64 per ton of 2,000 pounds.

The net weight of beets delivered by each grower for this company shall be determined by the net tons registered on the records of the Columbia Sugar Co.

The value of the sugar packed per net ton of beets delivered for the purpose of this contract shall be ascertained by multiplying the average quantity of sugar packed per net ton of beets, as defined above, by the average net market price of beet sugar for the months of October, November, and December, 1926, and January, 1927.

The average market price of sugar shall be ascertained by adding the daily New York market net cash quotations on beet sugar covering the Central States territory (Michigan, Ohio, Indiana, and Illinois, for the period mentioned) as compiled or published by Willett & Gray, and dividing the total by the total number of days on which quotations were made.

Mr. BROSSARD. Then you asked me specifically for copies of typical contracts. I do not know whether you want those inserted in the record or not.

Chairman ROBINSON. Well, let us see first what the value of them is. Are they forms of contracts used in the various areas?

Mr. BROSSARD. Yes.

Chairman ROBINSON. Are they substantially the same throughout, or do they differ, and in what general important aspects do they differ?

Mr. BROSSARD. The contracts differ in the various regions depending to some extent upon the sugar content of the beets, and depending upon the sugar extracted from the beets, and also upon the tonnage of sugar beets that the farmers are able to produce per acre, I suppose.

Chairman ROBINSON. Does that relate to the form that is used? Mr. BROSSARD. That relates to the contract.

Chairman ROBINSON. The substance. But the form is the same practically everywhere?

Mr. BROSSARD. The form is adjusted, of course, to the various local conditions, but there is some uniformity. There are, however, in nearly all cases differences.

Chairman ROBINSON. What I would like to have, if you are prepared to furnish it, are illustrative forms of contracts that would fairly reflect, those used in the various areas which you investigated.

Mr. BROSSARD. I can give you three of these. There is one here, from a Kansas factory, which would not be representative at all, because we did not take any records in Kansas. But I have here a contract for the Columbia Sugar Co. in Michigan and the Columbia Sugar Co. in Ohio, and the Amalgamated Sugar Co. used in Idaho. Chairman ROBINSON. Very well. Let them go into the record. Will you mark on the tops of them, those to be printed in the record, the areas or States at least in which they are used, so that at a glance one can tell that?

Mr. BROSSARD. I will do so.

(The copies of contracts referred to are as follows:)

MICHIGAN-COLUMBIA SUGAR CO., BAY CITY PLANT, SUGAR-BEET CONTRACT CONCERNING RAISING AND DELIVERY OF SUGAR BEETS FOR CAMPAIGN OF 1922

in section

town

The undersigned hereby agrees to plant, cultivate, harvest, and deliver during the year commencing with the spring of 1922, to the Columbia Sugar Co. (Bay City plant), for its factory in Bay City, Mich., acres of sugar beets on the following-described lands, to wit: ship of -, in the county of, State of Michigan. At least 15 pounds of seed per acre shall be planted which seed shall be furnished by the Columbia Sugar Co. at 15 cents per pound and the cost of same is to be deducted from the first payments made for beets delivered. The title to said seed and to said crop of beets from the time when the same begin to grow shall be and remain in the company.

The beets are to be given due care, and the grower will follow instructions of the company in regard to preparing the soil, seeding, caring for, harvesting, and delivering the crop.

In case the grower does not give the said beets due care, or does not follow the instructions from the company regarding the caring for, or the harvesting

of the crop, then the company shall have the right to enter upon the lands above set forth, and to care for, cultivate, harvest, and retain the crop and charge the expense thereof to the grower.

All beets delivered under this contract shall be as free from dirt as possible. without weeds and leaves, and shall be properly topped by the grower by passing the knife under the lowest leaf mark at right angles to the longitudinal axis of the beet.

Said beets shall be harvested and loaded by the grower for the company on cars, or delivered at factory sheds, at such time and in such quantities as may be directed by the company. The company will not be liable to receive or pay for beets which do not test 12 per cent sugar, are rotten, or otherwise unfit or undesirable for making sugar.

It is understood and agreed that all beets delivered from wagons or trucks shall be unloaded as directed by the company, and if forked into piles, all beets scattered on ground by the grower shall be picked up by him and thrown on to pile before wagon or truck is moved.

Beets delivered under this contract and loaded on cars by the grower will be paid for subject to tare and dirt and improper topping, in accordance with the following table:

If the average price of beet sugar are hereinafter determined is $5.25 per 100 pounds, the total compensation for beets will be $5.50 per ton beets; $5.50 per 100 pounds, $5.75 per ton beets; $5.75 per 100 pounds, $6 per ton beets; $6 per 100 pounds, $6.25 per ton beets; $6.25 per 100 pounds, $6.75 per ton beets; $6.50 per 100 pounds, $7 per ton beets; $6.75 per 100 pounds, $7.25 per ton beets; $7 per 100 pounds, $7.75 per ton beets; $7.75 per 100 pounds, $8 per ton beets; $8 per 100 pounds, $9 per ton beets.

Fractional advances in the average price of beet sugar above $5.25 per 100 pounds will be paid for in the same proportions as set out in the above table. If, however, the average price of beet sugar as hereinafter determined is less than $5.25 per 100 pounds, then the company will pay $5.50 per ton for beets grown and delivered under this contract.

Preliminary payments to the grower will be made at the rate of $5.50 per ton for beets grown and delivered under this contract and will be made on the 15th of each month for beets delivered up to and including the 15th of the preceding month.

If the average price of beet sugar as hereinafter determined exceeds $5.25 per 100 pounds, then an additional price per ton above $5.50 will be paid by the company on February 15, 1923, so that the total price paid per ton for beets grown and delivered under this contract shall be as set forth in the above table.

For beets delivered and unloaded by the grower in beet bins at the factory, an additional 75 cents per ton will be paid.

Said average price of beet sugar shall be determined from the official New York net cash market quotations of Willet & Gray covering the Central States territory (Michigan, Ohio, Indiana, and Illinois) during the months of October. November, and December, 1922, and January, 1923, by adding together the prices of beet sugar so quoted for the working days of the said period and dividing the total by number of days quoted.

All wagons or trucks used by the grower in the hauling and delivering of said beets shall have boxes with tight bottoms, also tight sides and ends for four inches above bottoms, and be free from holes and cracks of sufficient size for dirt to sift through. Beets must be forked from wagon or truck by grower with a regular beet fork, and all dirt remaining in wagon or truck must be weighed out with wagon or truck.

All samples for tare must be forked into tare baskets in the regular manner and must be a fair average of load.

This contract not valid until approved by an officer of the company or its field superintendent, and no agent of the company has any authority to change or alter the terms and conditions of this contract.