STATEMENT OF J. D. BRAN SCOME, CHAIRMAN, LIVESTOCK MARKET ING FORUM My name is J. D. Branscome of Grenada, Mississippi. Since I filed a statement with this Subcommittee through my participation in the hearing on the Thornton Bill, H. R. 9482, in Fort Smith, Arkansas, on January 18, 1978, my remarks today will be brief, My interest in the subject of Representative Thornton's Bill is two-fold: I am actively involved in the ownership and operation of Oxford Livestock Market, Inc., of Oxford, Mississippi, a marketing business subject to the Packers and Stockyards Act. In addition, I speak today as Chairman of the Livestock Marketing Forum, a subdivision of the Livestock Laws Reform Commission. The Livestock Laws Reform Commission is a foundation which is concerned with the broad range of laws, federal and state, which affect the marketing sector of the livestock industry and is sponsored by the Livestock Marketing Association. My appearance today evidences the continued interest and concern of myself and the industry in general. These remarks today stem from my individual interest in a marketing business, but I believe you will recognize their general applicability. The Oxford Livestock Market is an independent business whose lifeblood is customers. We have a sale every Monday. Our customers include both seller and buyer. The sellers, of course, are the producers who sell their livestock through our business. We do not have a monopoly. We do not have a territorial franchise. In fact, there are at least 14 other marketing businesses within a 75 mile radius of our business. There is no guarantee that a producer who sold livestock through our business last Monday will utilize our business the next time he has livestock to sell. Neither Mr. Jennings, head of the Packers and Stockyards - AMS, nor Mr. Campbell, the Judicial Officer of the Department of Agriculture, nor Mr. Brinckmeyer, head of the Rates, Services and Facilities Branch of the Packers and Stockyards can guarantee that we will have any customers at all. Can we guarantee customers? Yes, if we can operate our business in such a way as to earn the confidence, and respect, and satisfaction of those who choose to do business with us. We draw customers or earn their business. Who are my regulators? The people that our marketing business serves and strives to serve. The producers know this. As do the organizations to which the producer belongs, at the local, state, and national level, such as a Farm Bureau, or a Grange, or a Cattlemen's Association. Because the producer is an independent businessman, too. Thus, while the Packers and Stockyards - AMS cannot guarantee customers to us, the manner in which they apply their authority can adversely affect our ability to earn and serve our customers. Without satisfied customers, we have no marketing business. Hence, I cannot see that the presently applied rate regulation by the Packers and Stockyards - AMS is applicable to my marketing business in today's livestock industry. Rather than have the Packers and Stockyards personnel in Washington, D. C. apply various formulas to our business in Oxford, Mississippi, we need to be able to utilize a tariff which will fit in with our first and basic objectives of having satisfied customers. Thank you for your attention to this particular area of deregulation and the opportunity to appear before you. 22-929 O-78-6 Mr. HIGHTOWER. Thank you, Mr. Sanders and Mr. Branscome. Mr. KOEHLER. Yes; Mr. Chairman. Mr. HIGHTOWER. Thank you, gentlemen, very much. If you can remain in the room until we have heard from the other witnesses, we would like to call you back for questions. Our next witness is Mr. Robert B. McCreight, president of the American Stockyards Association, Omaha, Neb. Mr. McCreight, we are happy to have you. [The prepared statement submitted by Mr. McCreight follows:] the American Stock Yards Association 805 Livestock Exchange Building, Omaha, Nebraska 68107. The American Stock Yards Association is a national association of major livestock markets or posted stockyards. Most of our members were in business and operating when the Packers and Stockyards Act of 1921 was enacted. Since then, the rates and charges for stockyard services in effect at the various livestock markets operated by our members are and have been continuously subject to the rate making authority of the Secretary of Agriculture, as set forth and contained in the Packers and Stockyards Act of 1921, as amended. We have care fully considered the contents of H. R. 9482, as well as similar bills. Each of those bills would restructure the existing rate supervisory authority of the Secretary of Agriculture with respect to charges for stockyard services by amendment to the Packers and Stockyards Act of 1921, as amended, to only those stockyards which either (b) (a) have an annual sales volume in excess of Either of these proposed formulae present certain practical problems, it seems to us. For example, let us assume that during the calendar month of November, a livestock market obviously exceeds a volume of 100,000 animal marketing units, or 20,000 animal marketing units, as the case may be. Precisely |