PRODUCTS NOW SUBSIDIZED WHICH SHOW PROMISE OF EARLY COMMERCIAL ACCEPTANCE Cotton Bagging. Since cotton bagging for bale covers has been manufactured under new-use programs, the rate of payment has been reduced from 28 cents per bale cover in 1939, and 25 cents per bale cover in 1940 to 15 cents for the program now in effect. The percent that the payment is of raw material cost has likewise decreased from 82% in 1939 and 52% in 1940 to 33% in 1941. The most important factor which stands in the way of almost universal unsubsidized use of cotton bagging for cotton bales is the practice of grossweight trading which tends to penalize the farmer who markets his cotton in lighter weight cotton bagging. A large number of mills and other cotton handlers have already agreed to make a proper allowance for the lighter tare of cotton-wrapped bales and as others join in the practice, this unwarranted discrimination against cotton wrapped in cotton will tend to disappear. Legislation has been proposed for compulsory net weight trading and the Department of Agriculture has gone on record in favor of such legislation. Cotton for Fine Writing Paper. When the 1940 cotton-for-paper program was first made effective, doubt existed in the minds of processors as to whether lint cotton was mechanically or chemically adaptable for paper-making purposes. Preliminary conclusions derived from that program indicate that cotton paper not only compares favorably in quality to paper made from rags and clippings but also that cotton utilization offers possibilities for economics in the normal processes of ragcontent paper production. These economies include savings in the preliminary treatment of raw stock, smaller quantities of chemicals and bleach needed, reduction in the required cooking time and cooking pressure, and savings in power consumed in the washing, heating and jordaning processes. The amount of subsidy paid by the Department under the 1940 program averaged about 62 cents per pound of cotton. Consideration is now being given to a new program under provisions of which payments would be considerably below the 1940 rate and would be made on only a portion of the cotton purchased and actually used (42 cents per pound on 75% of the cotton used by each manufacturer). Although some payment is still needed to encourage continued mill investigations of cotton, present indications are that the use of lint cotton for paper making purposes will become permanently established after definite determinations are derived relative to costs, proper processing techniques and the qualities of cotton best adapted, both physically and economically, for paper making purposes. Macerated Dates. The marketing of dates grown in Southern California and Arizona offers an instance of the development of new uses for a product so old that its use extends further into the past then any recorded history. Under a diversion agreement with the Secretary of Agriculture, substandard dates are withheld from commercial channels with benefit payments being made for this diversion. Prior to the institution of this program, many dates which were substandard in respect to dryness and degree of maturity, were "hydrated" and then sold in competition with first quality fruit. Under the diversion program such dates are macerated and the resulting product is sold for manufacture of bakery goods and confections. Considerable expansion of this new use has occurred. In the past, there has also been some diversion of dates to such outlets as stockfeed, alcohol and brandy. Other new uses include the preparation of date flakes, date sugar and date crystals. At present stock feed is not included in the program. Cotton Insulation. Following announcement of the 1941 cotton insulation program arrangements were made between the participating manufacturer and a large national organization for the commercial distribution of cotton insulation. It is anticipated that such distribution will be extended gradually until it includes the entire country. The agreement to act as sales agency for cotton insulation followed careful investigation of the entire insulation field and of the ability of cotton to compete on a commercial basis without subsidy by the Department of Agriculture after it becomes widely introduced. Such an agreement, therefore, is evidence that the manufacturer and the distributor believe that they can make and sell cotton insulation on a competitive basis without subsidy in competition with mineral and other forms of insulation. The potential use of cotton for this purpose is estimated at 450,000 bales. SUMMARY The new use programs of the Department are centered on developing entirely EXHIBIT No. 2808 (Introduced in connection with statement of Donald E. Montgomery, supra, INDUSTRIAL OUTPUT Highest and Lowest Output in 1940, Compared with Highest Monthly Output, (Introduced in connection with testimony of Donald E. Montgomery, supra, p. 439.) Activities: EXHIBIT No. 2809 STANDARD ACTIVITIES OF FEDERAL AGENCIES 1. Establish standards used by others 2. Establish standards for own use 3. Establish standards as basis for loans 4. Research or operations provide basis for standards 5. Check commodities in commerce for compliance 6. Use standards of others in own activities 7. Maintain grading or inspection service 8. Check supplies or equipment against standards for purchases, loans, etc. 10. Further the use of standards |