Agricultural relief: Agricultural relief

Bibliographic data

Multivolume work

Identifikator:: 1831932415

Document type:: Multivolume work

Title:: Agricultural relief

Place of publication:: Washington

Publisher:: Gov. Pr. Off.

Year of publication:: 1928

Collection:: Economics Books

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Volume

Identifikator:: 1831935244

URN:: urn:nbn:de:zbw-retromon-232156

Document type:: Volume

Title:: Agricultural relief

Volume count:: Pt. 8

Place of publication:: Washington

Publisher:: Gov. Pr. Off.

Year of publication:: 1928

Scope:: III S., S. 591 - 642

Digitisation:: 2022

Collection:: Economics Books

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Chapter

Document type:: Multivolume work

Structure type:: Chapter

Title:: Statement of B. F. Yoakum, New York City

Collection:: Economics Books

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.

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