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Senator JOHNSTON. One of the witnesses said something about how it deteriorates and something made it so that the companies didn't want it.

Mr. WILLIAMSON. That is the first I had heard of it, sir, that it is deteriorating.

Senator JOHNSTON. I had heard of it 2 or 3 times; I have had people writing to me with the problem. I want my people in South Carolina growing tobacco they can sell and have no question about. If there is a question about it we will get in trouble.

The CHAIRMAN. What I understand from the witness, the tobacco grown is too good. It strikes me the companies ought to invite good tobacco and make better cigarettes.

Mr. WILLIAMSON. They have learned, after all, a cigarette is just good if a smoker likes it and we have been trained to like the cigarettes made out of part low, part medium, and part high.

Senator JOHNSTON. From all the reports, do you not think it would be well to have the companies give us their opinion on it and let us know what their opinion on it is so we will know what to advise you tobacco growers? I don't want to do something that might get you in some trouble.

Mr. WILLIAMSON. One further comment on that variety.

The CHAIRMAN. Are you suggesting any legislation for tobacco? Mr. WILLIAMSON. Yes, sir; I am going to suggest some.

The CHAIRMAN. Let's have it.

Mr. WILLIAMSON. He asked about the variety. May I finish clearing that up?

The CHAIRMAN. Yes.

Mr. WILLIAMSON. Senator Johnston, we in our area, and you, have heard this year the companies didn't like 139. I am sure we all heard it.

Senator JOHNSTON. Yes.

Mr. WILLIAMSON. There are two criticisms of it. One is that it didn't have the aroma. The other criticism was that they didn't know what its keeping qualities were. It is a new variety and, Senator, tobacco is kept, some of it, 21⁄2 years before it is used. None of that is proven, it is a matter of speculation.

Senator JOHNSTON. Haven't had time?

Mr. WILLIAMSON. That is right. The feeling of the tobacco people is tobacco variety is all right. Any variety of tobacco should not be planted throughout the whole area a hundred percent. The companies in that event wouldn't have the choice of blending of flavors. Senator JOHNSTON. They have to mix it up?

Mr. WILLIAMSON. Yes; they need to mix it. What percentage is safe to have in one variety I don't know.

The CHAIRMAN. Who will decide?

Mr. WILLIAMSON. Nobody.

The CHAIRMAN. I thought you folks were working hand in hand with the tobacco people.

Mr. WILLIAMSON. We can probably get a recommendation on it. On the subject of legislation due to the high yields this year-I will drop back. The national quota on tobacco was set in June for the 1956 planting. The quota when allotted to farms amounts to 12 percent reduction in acreage for 1956. That national quota was based on the expectation that the 1955 crop would produce 1,275 million

pounds of tobacco. Actually the 1955 crop produced one-thousandfive-hundred-forty-odd-million pounds of tobacco. We have 270 million pounds of tobacco more than was used in the calculation that resulted in a 12-percent reduction.

It is my opinion that we are going to further need to reduce tobacco acreage on 1956 further. We have to get our supply situation back in line. This isn't mandatory to get it back in line in 1 year, but we need to begin on a program of reducing our surplus. We have gotten in an unhealthy condition of tobacco surplus.

The CHAIRMAN. I thought that was the purpose of the few laws we passed this year. That was the argument put up for their passage. Won't those laws do that?

Mr. WILLIAMSON. We made in my opinion a serious mistake which was done by precedent and done by pressure from growers. But the national quota was calculated in June before the size of this crop was known. Had it been calculated in December the proper calculation could have been made. Under the law, under the present law, these individual farm allotments cannot be reduced once they are announced and voted on and approved. We approved a 12-percent reduction. What we want is a chance to vote on a further reduction.

The CHAIRMAN. I don't see how you could do that. Congress meets in January and to put a law through to change that and then give you time to vote, you would be planting your crop.

Mr. WILLIAMSON. We will have time to do it if you

The CHAIRMAN. Then your program has worked well except for this year; has it not?

Mr. WILLIAMSON. It has worked well on the basis of helping supply in line with demand.

The CHAIRMAN. You produced too much per acre. I do not believe I would worry too much if I were you about the time that the announcement is made because you have had 1 year-your program has been in effect how long?

Mr. WILLIAMSON. It has been in effect

The CHAIRMAN. For 18 years now.

Mr. WILLIAMSON. Yes.

The CHAIRMAN. One in eighteen is not too bad an average.

Mr. WILLIAMSON. We were getting in a bad surplus position already.

The CHAIRMAN. That is because you used too much fertilizer. You are planting your tobacco closer. Every farmer does that.

Mr. WILLIAMSON. We got too efficient in growing tobacco. Senator JOHNSON. This year you had an unusual year as far as weather conditions went and it brought you in a tremendous crop. That helped build it up too.

Mr. WILLIAMSON. Senator, I want to stress that point. It is important with tobacco growers. For example on a 12-percent acreage reduction we voted over 95 percent for it. All we want is a chance to have the figures presented to us as to what we need to get in a good sound position and vote on it again.

This same thing, I mean.

The CHAIRMAN. I am telling you that I don't think you have any time to do that. Congress meets in January, and it takes quite a while to make the announcements and to vote again and by the time you

do that your crop would be ready to almost harvest, or I mean you would be cultivating.

Senator JOHNSTON. Here is something else to remember. You start this and make this a precedent, changing right before the crop, you are going to find they will want to change it the other way some time and then is when the trouble begins.

Mr. WILLIAMSON. I think one thing we learned our lesson on this year is not to guess on the following year's production in June of the preceding year.

Sir, I think you understand the situation and I think if Congress is favorable to what is being asked that it can be done and can be put through in plenty of time. It was done last year in the case of burley tobacco.

The CHAIRMAN. We might look into it, but I doubt that it can be done. We will be glad to look into it. We will try to do it if it is at all possible, but I don't see how it will be. That has to go through the gamut of being looked into by the Department and has to be usually O. K. by the Agriculture Department. My guess is they will say no, because you have already had your vote.

Senator JOHNSTON. After the bill is introduced they get a report back, they make a study and it comes back and that prolongs the matter.

Mr. WILLIAMSON. I understand it would take fast action and pretty complete agreement among people from the tobacco area to get it done.

The CHAIRMAN. You would be surprised at the other areas that might object. You have had it nice but other areas may not have had the good weather you have had.

Mr. WILLIAMSON. I don't see how anybody could object to our cutting our production. It is not going to interfere with anybody else. The CHAIRMAN. You mean just South Carolina?

Mr. WILLIAMSON. Just the tobacco area.

weather.

The CHAIRMAN. How about Kentucky?

They have had good

Mr. WILLIAMSON. We are not asking for Kentucky. That is in the burley area and they are in a different program.

The CHAIRMAN. Let us look into it. No use to argue about it. (The following information was obtained from the Department of Agriculture :)

When the 1956 flue-cured quota of 1,130 million pounds was determined and proclaimed on July 1, 1955, by the Secretary, stocks on hand were estimated at 2,025 million pounds but turned out to be 2,056 million pounds. Of much greater significance, however, the figure used as the estimated for the 1955 crop (based on average yields) was 1,275 million pounds whereas the November estimate is 1,514 million pounds. The total supply of flue-cured tobacco (carryover stocks plus 1955 crop) is, therefore, 270 million pounds greater than was estimated at the time the quota was announced.

As of July 1, 1955, there was no estimate by the Crop Reporting Board as to the 1955 yield, and the reasonable thing to do appeared to be to use the 5-year average yield times the 1955 farmers intentions to plant. The reason for announcing the quota on July 1, 1955 is that grower representatives insisted on the announcement prior to the opening of the 1955 markets. Of the 9 referendums on flue-cured tobacco, 6 have been held in July.

On October 13, 1955, a 15-man committee representing growers and handlers of flue-cured tobacco advised the Secretary that "in our opinion this emergency necessitates our requesting your cooperation in securing legislation which will

permit a redetermination of the 1956 (flue-cured) quota in the light of existing conditions."

If such legislation is enacted it will be necessary to hold a referendum to determine whether the redetermination of the flue-cured quota is acceptable to the growers. The referendum should be held prior to planting time. While weather conditions are an influencing factor, planting usually begins about March 1 in Georgia and Florida areas. The referendum can be held in about 30 days following enactment of the legislation.

Mr. WILLIAMSON. Thank you.

A point that is being discussed some, getting some publicity in the newspapers, I don't know how much support it has, is that in the event there is a further reduction that it not be uniform and across the board. The tobacco program that we voted so strongly in favor of over these base years involves a principle of adjustment to everybody alike percentagewise. I don't know just why there should be any change at this time from that principle.

The CHAIRMAN. You mean make it apply to the minimum acreage too?

Mr. WILLIAMSON. That is right. There is some publicity now favoring a minimum allotment in tobacco.

The CHAIRMAN. I don't believe there is any disposition to make any change in the tobacco program. So let's sleep on that for a while and give us something on a commodity that is more in trouble than tobacco, if you have any suggestion to make.

Mr. WILLIAMSON. No, sir; I believe that about covers what I have to say. I would like to comment on the soil bank.

The CHAIRMAN. That is all right. You are for it?

Mr. WILLIAMSON. I am for it, sir.

The CHAIRMAN. Do you have anything else to add to what has been said?

Mr. WILLIAMSON. I want to emphasize that we want the program for the other crops within it. We want to be able to have our tobacco program as it is and the soil program superimposed on it. We want our adjustment program for cotton as it is and the soil fertility bank more to handle the problem of diverted acres and that phase of it.

I would like to emphasize what has already been said, that we are certainly in a price squeeze from both ends.

The CHAIRMAN. I know that. I wish the witnesses would give us some new matter now. We all want what you suggest, and in fact there are many witnesses who testified so far as to the program they would like and we have had those same matters suggested to us throughout the country. We have quite a bit of evidence on that.

Mr. WILLIAMSON. One point on the soil bank. The whole proposition looks good to me with this exception: I am not too familiar with it. But I wonder whether the thing will be effective on a voluntary basis. I would raise that question. I haven't got the answer.

The CHAIRMAN. That remains for Congress to decide. You would want it on a mandatory basis?

Mr. WILLIAMSON. I would want it so it would work.

The CHAIRMAN. That is the only way you could do it, make it mandatory.

All right, sir, thank you.

At this point I wish to put in the record a telegram addressed to Senator Olin D. Johnston from Congressman John L. McMillan,

Member of Congress from this State, indicating that because of illness in his family he could not be here.

(Mr. McMillan's telegram follows:)

Senator OLIN D. JOHNSTON,

Columbia, S. C.:

WASHINGTON, D. C., November 14, 1955.

Regret impossible to join your committee today on account of illness in my family. Very important that small farmer be heard. He is almost forced off farm by continuous acreage reduction.

JOHN L. MCMILLAN,
Member of Congress.

The CHAIRMAN. Mr. Thomason, please. I understand you have a statement you want to file for the record.

STATEMENT OF GEORGE A. THOMASON, GREENWOOD, S. C.

Mr. THOMASON. Yes, sir; it is a specific prescription, and you asked for a specific prescription. I know it is not perfect. It is an attempt-do you want it read?

The CHAIRMAN. You can file it for the record. It will be put in the record as though you read it unless you want to highlight it.

Mr. THOMASON. I would like to highlight it. It may not be any good but I might like some questions that might not be covered by it. I think it will be very short.

The CHAIRMAN. All right. I understood you wanted to file the statement. Sit down, sir, and proceed.

Mr. THOMASON. Yes, sir.

These are proposals for a national farm adjustment act.

The CHAIRMAN. What is your occupation?

Mr. THOMASON. I am a construction engineer. I have got 125 acres of land. At one time I had 750 acres.

The CHAIRMAN. Did you ever farm?

Mr. THOMASON. I had 120 cows, 750 acres of land, 200 hogs. I even had a mortgage on the place.

The CHAIRMAN. What became of that? Did you lose it?

Mr. THOMASON. I lost the place selling milk at 7 or 8 cents a gallon. And the year it was during the depression-and the year that the drought come in when they shipped all the cattle into the State from out West I paid $2,000 a month for hay. I had a little, I have been worrying about the farm situation ever since and I have some definite suggestions.

The CHAIRMAN. Did those suggestions grow out of your failure? Mr. THOMASON. Out of the present conditions, too.

The CHAIRMAN. All right, proceed.

Mr. THOMASON. Step 1: (a) Each individual qualified working farm to be issued an individual numbered franchise upon application and qualification. (b) This franchise must be complete with scale map of all producing and nonproducing areas, divided into measured fields and fully acquainted to administrative agency. Such procedure is at present in active use by farm conservation and other governmental agencies.

I have 85 acres covered by exactly that, the thing is laid off on a farm conservation. I have got about 20 acres of it in hay, the rest of it

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