Mr. HIGHTOWER. Thank you, Mr. Jones.

If your schedule will permit, we would appreciate if you would stay until the conclusion of the hearing today.

Mr. JONES. Yes, I will. Thank you.

Mr. HIGHTOWER. Our next witness is Mr. Richard A. Koehler, counsel, Livestock Laws Reform Commission and Livestock Marketing Association, of Kansas City, Mo.

He is to be accompanied by Mr. C. T. Sanders, general manager of Livestock Marketing Association, and Mr. J. D. Branscome, chairman, Livestock Marketing Forum, from Oxford, Miss.

We are glad to have you, gentlemen. You may proceed.

Mr. KOEHLER. Mr. Chairman, at this time I would introduce Mr. C. T. "Tad" Sanders, general manager of the Livestock Marketing Association, who will read a statement.

Mr. HIGHTOWER. Fine. Then Mr. Branscome will follow with his statement.

[The prepared statements submitted by Mr. Sanders and Mr. Branscome follow:]

STATEMENT OF C. T.

TAD'

SANDERS, GENERAL MANAGER, LIVESTOCK MARKET ING ASSOCIATION

I am C. T. 'Tad' Sanders, General Manager of the Livestock

Marketing Association, a national trade association for the marketing sector of the livestock industry, with headquarters in Kansas City, Missouri. Subscribers to the Association include some Twelve Hundred (1, 200) marketing businesses subject to the provisions of the Packers and Stockyards Act, 1921, 7 U. S. C. Sections 181, et seq. and related regulations found at 9 C. F. R. Chapter 2, as registrants with the Secretary of Agriculture. These marketing businesses may sometimes

be referred to as "auction markets," "livestock markets,

yards,

"

"auction stock

"auction barns," as well as "terminal markets. We have fol

lowed closely the progress of the Thornton Bill, H. R. 9482, as well as the recent Rate Policy Hearings of the Packers and Stockyards - AMS. The Association participated in the hearing of January 18, 1978, in Fort Smith, Arkansas, for the Thornton Bill and also participated in the Rate Policy Hearings of the Packers and Stockyards - AMS.

With this background, on behalf of our subscribers and Elected

Officers, I make the following observations:

We heartily and quite earnestly endorse the concept of rate/tariff deregulation, on which Representative Thornton's Bill has focused atten

tion.

We extend our appreciation for Representative Thornton's efforts, and the attention of this Subcommittee. We are also appreciative of the

recent initiative of the Packers and Stockyards AMS for its Rate Policy

Hearings.

In following the recent public hearings on rate policy by the Packers

and Stockyards - AMS, it was our observation:

1. That the preponderance of the testimony and comment from affected marketing businesses favored the basic concept of deregulation;

2. That there was strong testimony and comment from producer groups which supported deregulation. For example, the Marketing Committee of the National Cattlemen's Association adopted a resolution which emphatically favored deregulation and endorsed the concept of "Freedom in Livestock Marketing." The NCA's final resolution and explanatory letter are part of the comment of the Rate

Policy Hearings.

I feel compelled to point out that as of March 2, 1978 the Packers

and Stockyards AMS had received some 208 comments directly, e.g. by wire or letter. Of these 208 comments, 35%, or 73 pieces, came from farmers and/or farmers' wives of Vidalia, Georgia, on mimeographed forms which indicate no origin or organization. While we do not question the integrity or beliefs of those who signed such forms, we do believe that

the origin and circumstances related to that group of comment might war

rant a closer look.

We believe that a marketing business's tariff, its schedule of rates and charges to the producer, should take into consideration such factors as its cost of doing business; its satisfactory business relationships with its producers; and its competition from other businesses in the marketing sector. These basic tenets seem to be in harmony with the opinions expressed by both marketing businesses and producer groups supporting

deregulation.

We do not seek to do away with the authority of the Packers and Stockyards AMS to receive, investigate, and hold an administrative hearing based upon valid complaint.

We believe that a marketing business should post its tariff for the benefit of its producers and see nothing burdensome about having a marketing business file a copy of its tariff with the Packers and Stockyards - AMS, as it is generally handled today.

We do not endorse, or countenance, the charging of exorbitant rates

to any producer by any business in the marketing sector.

We do not believe that the personal beliefs of the Packers and Stockyards AMS personnel should be forced upon the registrants whom such personnel regulate.

We do not believe that the Packers and Stockyards - AMS should be permitted to prescribe a certain type of tariff, such as a per head tariff,

for all registrants.

We believe that a marketing business should be able to utilize a tariff that will stand the test of customer acceptance and satisfaction.

In summary, while we fully support the thrust of Representative Thornton's Bill, we think that the deregulation concept of H. R. 9482 should be extended to all registrants under the Act, without resort to such constraints as animal marketing units, or volume of livestock handled, or proximity of other marketing businesses.

I want to express my appreciation for being permitted to testify before this Committee and express the thanks of the Association and its subscribers and Elected Officers for your attention to this particular area. We are certainly hopeful that your efforts here and those of Representative Thornton will lead to an appropriate deregulation of the rate policy now being applied by the Packers and Stockyards - AMS.