594 
AGRICULTURAL RELIEF 
instance—I am going to ask that names be not used, because I am 
not criticizing, because it is good business. If we were in that busi- 
ness we would be just as anxious and glad to make this money as 
they are. But what I am trying to do is to fix a way that the pro- 
ducers will stand hand in hand and on an equal basis with corpora- 
tions. They are purchasers; they are not doing a bad business. 
Here is one just out, $35,000,000." They show $14,000,000 net profit. 
And so it goes on through several of them. 
But here is the point that I am making to you that I have not 
made in my little document. This is interstate. Here are two big 
concerns, one of them doing business in 25 different places in the 
United States and the other in 18; and all of them have all the way 
from 5 to 12 different locations scattered throughout the country 
where their product is most available. 
Mr. Apking. They are handling some of the farm products? 
Mr. Yoakum. These are all farm products; nothing else. 
Mr. KincaELOE. Mr. Yoakum, they buy the raw product. Do 
the most of them process it before they sell it? 
Mr. Yoakum. Both. TI will just relate this. I have the resolu- 
tion in print somewhere but I have lost it, by what are known as the 
Binghamton, N. Y., the northern New York dairy people. They 
have 400 members in that association. They had their meeting in 
August, and a committee that was appointed to look into this ques- 
tion (because the dairymen find they are going to the wall there every 
day) reported that their product was sold in New York City at 200 
per cent more than they were getting. They can not control that. 
It is all idle talk to talk about cooperation in a local way. They can 
not control prices, because their product comes from every section. 
Right in the same milk district there are eight big organizations. 
They can break the price. All they have to do is to name a price 
and that fixes the price for the entire territory; and so it goes through- 
out the United States. In that case they have got Canada to contend 
with, but they are now preparing to control Canada. 
Mr. Crarke. Have you figures there on the amount of capital of 
the different companies that are handling dairy products in amounts 
between $250,000,000 and $300,000,000, such as Borden, Sheffield. 
Mr. Yoakum. Yes, sir; it is all taken from Moody’s. It is actual; 
it is over $500,000,000. Here it is just within the last eight months: 
There is $10,000,000 issued by one corporation, here is $20,000,000 
by another; these are securities offered; I want to read you something 
on that; and this goes right on through. There are $171,000,000 
securities sold to handle only one thing, that is, farm products, and 
sold by the best bankers in the United States. 
Here is something which I believe will impress you gentlemen from 
an investment standpoint. A couple of days ago a corporation came 
out offering 20-year 5 per cent debentures. They sold those at 9714, 
an interest-bearing security of 5.20; and securities, as you all know, 
that will sell at 5.20 income are regarded as the best in this country. 
First-mortgage bonds do not sell for that. Their earnings, which they 
show, are 9.3 times interest requirements, that is, their earnings 
are sufficient to pay the dividends on this 9.3 times. That is what 1s 
going on; and it is not out of line. It is legitimate; it is business. | 
Mr. KercHaM. Net earnings? 
Mr. Yoakum. Yes, sir: that is the interest 9.3 times.