AGRICULTURAL RELIEF

677
pay the equalization fee, but we know that ; ¢
to have to pay it if benefited under this ba he Sther Jellow 1S going
So, you are here f 1 $0 lof thom poy hol,

, y e here for a selfish motive—I do not say that in an offensive
way—but you are here trying to keep as many as you can out of th
dairy business and at their own expense? of the

Mr. Soxupes, Yes.

r. AsweLL. Mr. Kincheloe, I think when the ti
the dairy industry produces a surplus that the dairy hon will be hot

Mr. KiNCHELOE. Absolutely; and we all know that is the only
reason the tariff is effective, because they do not produce any surplus,

Mr. AsweLL. Will not that be time enough to come?

Mr. MEenGgEs. I would like you to tell me whether you export milk
products?

Mr. SEXAUER. Yes, there are some milk products exported—not
a very large amount, and just why I am not in a position to say
whether it 1s because of a particular special market that some one has
built up or not, but there has been some milk products exported dur-
ing the past year. The amount of exports as compared with the
amount of imports 1s at the ratio of about 6 to 1; there are about six
times as much imported as there is exported.

i MenGEs. What prices are you getting for your export prod-

Mr. SEXAUER. I can not tell you that. As an organization we do
not export and the companies who do export are not telling us what
they get.

Mr. Menges. You do not know what products constitute the most
of the exports?

Mr. SExAavEiR. No; I haven't that information; it is available, but
I haven't it.

2k Menges. That would be mostly canned milk and powdered
milk?

Mr. Sexaver. Most of that would be in the form of condensed
milk and evaporated milk. Presumably somebody has a market
they have built up over a period of years. It is, however, a preferred
market where they sell advertised brands and might be able to get a
sufficient amount for a certain quantity to reimburse them for
exporting.

Mr. MENGEs. Is not that exportation largely to Australia?

Mr. SEXAUER. I can not tell you—to Australia? I would not
think so. But I can not tell you.

Mr. MENGES. What I am getting at is whether the Canadians are
not endeavoring to get more of that export trade than we are?

Mr. SEXAUER. Practically all the condensers to-day who are
exporting milk to establish plants in Canada for the purpose of
exporting—I refer to thé large condensers who were built up in this
country—are manufacturing practically all of their milk in Canada
for export, except such as, for instance, the Carnation Co. under
a certain export trust law which we have passed in this country
have been allowed to form the American Milk Co.; and they
have established some plants in Europe to take care of their export
trade; and the Borden Co. operating for the exportation of Borden's
Condensed Milk; and practically the entire amount of that is manu-
factured to-day in Canada. We are losing that business. because
we can not compete In costs.