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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 rag. content 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 642 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 (442 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
new uses for agricultural products. Every expenditure made on a successful new
use results in a continuing annual increase of consumption of the product without
further aid from the Government. While there can be no question of the necessity
and importance of more direct aid to growers of individual crops in particular
years, I feel that to the extent new uses programs are feasible they offer a signifi-
cant long run aid to domestic agriculture.

EXHIBIT No. 2808
(Introduced in connection with statement of Donald E. Montgomery, supra,
p. 441.)

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.)

1936-1939 inclusive

KEY TO INDUSTRIAL OUTPUT CHART

1. Industrial Production
2. Mineral Production
3. Manufactures

4. Non-durable

5. Durable
6. Iron and Steel

7. Pig Iron

8. Steel Ingots
9. Machinery
10. Transportation Equipment

11. Locomotives
12. Automobiles
13. Railroad cars
14. Shipbuilding

15. Aircraft
16. Nonferrous Metals and Products

17. Lead shipments
18. Copper smelting
19. Zinc shipments
20. Nonferrous metal smelting
21. Tin deliveries

22. Copper deliveries
23*. Lumber and Products

24. *Lumber

25. Furniture
26. Stone, Clay, and Glass Products

27. Polished plate glass
28. Glass containers
29. Common brick
30. Common and face brick

(all)
31. Face brick

32. Cement
33. Textiles and Products

34. Silk deliveries
35. Carpet wool consumption
36. Woolen yarn
37. Wool textiles (all)
38. Rayon deliveries
39. Textile fabrics (all)
40. Worsted yarn
41. Cotton consumption
42. Woolen and worsted cloth
43. Apparel wool consumption

44*. Manufactured Food Products

45. Cane sugar meltings
46. Wheat flour
47*. Veal
48*. Lamb and Mutton
49*. Beef
50*. Ice cream
51*. Butter
52*, Cheese
53*. Manufactured Dairy Prod-

ucts (all)
54*. Other manufactured foods
55*. Meat packing (all)
56*. Pork and Lard

57*. Canned and dried milk
58. Leather and Products

59. Calf and kid leathers
60. Goat and kid leathers
61. Leather tanning (all)
62. Shoes

63. Cattle hide leathers
64. Alcoholic Beverages

65. Whiskey
66. Malt liquor
67. Other distilled spirits

68. Rectified spirits
69. Tobacco Products

70. Cigars
71. Manufactured tobacco and

snuff
72. Cigarettes
73. Paper and Products

74. Paperboard containers
75. Fine paper
76. Paperboard
77. Paper (all)
78. Wrapping paper
79. Printing paper
80. Tissue and absorbent paper
81. Paper and pulp (all)
82. Groundwood pulp
83. Soda pulp
84. Newsprint production
85. Pulp (all)
86. Sulphate pulp
87. Sulphite pulp

88. Petroleum and Coal Products

89. Lubricating oil
90. Petroleum refining (all)
91. Gasoline
92. Fuel oil
93. Byproduct coke
94. Coke (all)
95. Kerosene

96. Beehive coke
97. Chemicals
98. Rubber Products

99. Inner tubes
100. Tires and tubes (all)
101. Pueumatic tires

102. Rubber consumption
103*. Fuels

104*. Bituminous coal
105*. Anthracite

106*. Crude petroleum
107. Metals

108*. Iron ore shipments
109. Silver
110. Lead
111. Gold
112. Copper

113. Zinc
Iron and Steel Manufactured Products

114. Boilers, galvanized range
115. Boilers, cast iron round
116. Castings, steel
117. Radiators, cast iron ordi-

nary
118. Castings, malleable
119. Barrels and drums, steel

heavy
120. Boilers, cast iron square
121. Steel products (all)
122. Pipe and tube, steel

123. Sheets, steel
Machinery
124. Pumps and water systems

(shipments)
125. Fuel oil burners
Nonferrous Metal Products
126. Brass and bronze ingots

(deliveries)
127. Brass and bronze wire

cloth (shipments)

* Monthly data seasonally adjusted

Lumber

128. California redwood
129. West Coast woods
130. Maple, beech and birch

flooring
131. Hardwood (all)
132. Western pine
133. Softwood (all)
134. Oak flooring

135. Southern pine
Textile Products

136. Dyed cotton cloth, black
137. Printed cotton cloth
138. Dyed cotton cloth, colors
139. Bleached cotton cloth, plain

140. Hosiery
Petroleum Products

141. Wax

142. Asphalt
Chemicals

143. Sulphur
144. Denatured alcohol
145. Sulphuric acid

146. Ethyl alcohol
Oils, Fats and Byproducts

147. Shortenings and compounds
148. Crude cottonseed oil
149. Oleomargarine
150. Linseed oil
151. Flaxseed oil
152. Vegetable oils (all)
153. Animal fats
154. Greases
155. Crude cocoanut and copra

oil
Miscellaneous

156. Cellulose-acetate plastics
157. Nitro-cellulose plastics
158. Washing machines (ship-

ments)
159. Floor vacuum cleanerg

(shipments)
160. Ironers, household (ship

ments)

EXHIBIT No. 2809

STANDARD ACTIVITIES OF FEDERAL AGENCIES
Activities :

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.
9. Establish test methods
10. Further the use of standards

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