AGRICULTURAL RELIEF

599
It would be almost impossible to get that information, because vou
would have to go to the processing people, the same as you would
have to go to the packing people.
3 Mr. KercaaM. You have given the amount involved in distribu-
tion?

Mr. Yoakum. Distribution; that is Exhibit A.

Mr. KerceEaM. Can you recall what the totals of distribution are?

Mr. Yoakum. Yes, I can. I will give them, the total charge.
Mr. KercraMm. I would like to have it put right there. at that
point in your statement.

Mr. YoakuM. I have got it here, tabulated.

Mr. Kercaam. That will be exactly what I want.

Mr. Yoakum. I refer to Exhibit A, and I am going to insert it.
If you want, it can be placed right where you want it.

(The statement referred to and subnutted bv Mr. Yoakum is as
follows?)
EXHIBIT A
Farmers received for 17 standard products
(Department of Agriculture.)
For the same food products consumers paid

37, 500, 000, 000
292 500. 000. 000
Cost of distributing the above seven and one-half billion dollars
of food products:

For transportation of this foodstuff, for which consumers
paid the above enormous cost the railroads received 4 per
cent of total cost to consumers, or____ _. i}

After the products were delivered at destination terminals,
liberally estimated, the cost of trucking from terminals to
warehouses, cold storage, and exnressage, 10 per cent of
total cost to consumers, or______.. _- -

Allowing liberal profits and commissions to distributers who
turn their business at least once a month, this being equal
to 20 per cent of total to consumers, or_ _

900. 000. 000

2 250. 000. 000

1. 500, 000, 000
A legitimate distribution cost aside from transportation between
- producer and consumer amounting to__________._. ._.___._.
Added to this the amount received bv the farmers was____.

7, 650, 000, 000
2 £00. 000. 000
The total amount received by farmers and a legitimate

cost for distribution_ ____. _ —__.__ 15,150. 000, 000
Adding the many unjustifiable and unnecessary commissions,
profits, rake-offs, etc., between the farm and the table makes
the farmers’ income less than thev should actually receive by.

7, 350, 000, 000
Total of these amounts_ ...___. _. ._. oe _.___._ 22,500, 000, 000

Amount received by farmers for 17 standard food products is actual. (Depart-
ment of Agriculture report.)

Item No. 1 is actual. (Interstate Commerce Commission report.)

Ttems Nos. 2 and 3 are results of close and careful investigation.

Mr. Yoakum. Would the farmers combine in such an association?
If not, why? First it will be the farmers’ own organization, con-
trolled and operated by themselves in their own interest. It would
improve marketing, direct shipments more effectively, and stabilize
prices, enabling them to get more for their wheat and a dependable
return.

It is hardly necessary to comment on that. But that is the basis
of credit. So long as the producers are not organized and prices are
not stabilized, the banker does not know whether the farmer is going
to et 85 cents or $1.25. Just as in the other commercial propositions.