Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1936-01-23
OBSERVATIONS
BY Cong. ELMER ]. RYAN

1
The trend of hog prices paid, pro-
ducers and pork prices charged by
packers to dealers since the AAA de-
cision which ended processing taxes
on January 6, is an interesting study
from the standpoint of both consumer
and hog producer.
For the week ending January f.,
just before the decision, the price of
live hogs at Chicago averaged $3.50
per hundred.
For the week ending January H.,
the week Immediately after the de-
cision, the price to producers was
1921 per hundred,
The wholesale price charged by
packers for pork products during the
predecision week was $11.97 and dur
ing the week following the decision
$11.5S was charged.
Thus in the week after the decision,
prices rose CSC per hundred to pro-
ducers and dropped 39c per hundred
to retailers.
The rise to producers and drop to
retailers totals &c. Prior to the de-
cision a processing tax of $2.25 was
paid to the government for benefit
payments. Subtracting the total in
crease to producers plus the decrease
to consumers from the processing tax
leaves a net increase in the spread,
or profit, of $1.5S for the week ending
January II.
Unless there exists some explain
alton which does not appear on the
face of the matter, the packer made,
during the week ending January II,
| a profit of $1.58 per hundred pounds
over that which he made when the
taxes were in force.
During the first three days of the
week in which this is written, prices
to producers have averaged $3.50 and
about $10.S3. The reason why pro-
ducers prices have not showed a
greater rise is ascribed by the De-
partment of Agriculture to the fact
that recent receipts of hogs in all
the leading markets of the country
have been far in excess of normal.
1t may be that there is an explain
alton which would effect the conclu-
sions drawn in the foregoing price
analysis. If so, we stand, ready to
give consideration thereto.
Secretary of Agriculture Henry
Wallace speaking at meeting Of the
dicted a temporary increase of hog
prices due to the adjustment of pro-
cessing taxes.
Wallace stated that only a small
part of the processing taxes were
passed on to the consumer, the great
er portion being taken out of prices
paid farmers. Eventually, however.
in the opinion of the secretary, ac-
cumulating SURPRISES without any
| form of control program will have the
effect of greatly depressing prices.
The price trend above mentioned
brings one back to the theory that
an important point in the explana-
| tion of high costs to consumers and
low prices to farmers is the profit
from price manipulation and the
| spread which goes to professors and
middlemen.
On August 81, 1885, Public Resolu-
tion No. 81 was approved by the Pres
ident. This res luton directed the
Federal Trade Commission to make
an investigation with respect to agri-
cultural income with particular re-
gard to the middleman's excessive
profits, mOnopolistic methods and
practices. violation of antitrust laws,
excessive salaries and similar abuses.
The resolution also requested in
vestigation of the practiceability Of
development of increased cooperative
marketing and warehousing facilities.
Whenever an effort is made to in
vestigate the handlers of farm pro-
ducts difficulty is encountered in Sc
carry out the work. This was the
case when the Investigation of milk
distribution profits were under dis
| cussion last session.
This same trouble was encountered
in providing funds for the investiga-
| tion under Res. 81 and although an
appropriation of $150,000 was in