SENATE COMMITTEE PjRINT ^^3dSessfon^^} INVESTIGATION OF CONCENTRATION OF ECONOMIC POWER TEMPOEAEY NATIONAL ECONOMIC COMMITTEE A STUDY SUBMITTED BY A COMMITTEE APPOINTED BY THE SECRETARYOFAGRICULTURE, TO THE TEMPO- RARYNATIONALECONOMIC COMMITTEE,SEVENTY-SIXTH CONGRESS, THIRD SESSION, PURSUANT TO PUBLIC RESO- LUTIONNO.113(SE\T:NTY-FIFTH CONGRESS),AUTHORIZING AND DIRECTING A SELECT COMMITTEE TO MAKE A FULLAND COMPLETE STUDYANDINVESTIGATIONWITH RESPECTTOTHECONCENTRATIONOFECONOMICPOWER IN, AND FINANCIAL CONTROL OVER, PRODUCTION AND DISTRIBUTION OF GOODS AND SERVICES MONOGRAPH No. 23 AGRICULTURE AND THE NATIONAL ECONOivIY Printedfortheuseofthe TemporaryNationalEconomicCommittee UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1940 TEMPORARY NATIONAL ECONOMIC COMMITTEE (CreatedpursuanttoPublicRes.113,75tbCong.) JOSEPHC.O'MAHONEY,SenatorfromWyoming,Chairman HATTONW.SUMNERS,RepresentativefromTexas,ViceChairman WILLIAMH.KINO,SenatorfromUtah WALLACEH.WHITE,Jr.,SenatorfromMaine CLYDEWILLIAMS,RepresentativefromMissouri B.CARROLLEEECE,RepresentativefromTennessee THURMANW.ARNOLD,AssistantAttorne;'General •WENDELLBERGE,SpecialAssistanttotheAttorneyGeneral RepresentingtheDepartmentofJustice JEROMEN.FRANK,Chairman •SUMNERT.PIKE,Commissioner RepresentingtheSecuritiesandExchangeCommission GARLANDS.FERGUSON,Commissioner *EWINL.DAVIS,Chairman RepresentingtheFederalTradeCommission ISADORLUBIN,CommissionerofLaborStatistics »A.FORDHINRICHS,ChiefEconomist,Bur-^auofLaborStatintics RepresentingtheDepartmentofLabor JOSEPHJ.O'CONNELL,Jr.,SpecialAssistanttotheGeneralCounsel •CHARLESL.KADES,-SpecialAssistanttotheGeneralCounsel RepresentingtheDepartmentoftheTreasury ,RepresentingtheDepartmentofCommerce LEONHENDERSON,EconomicCoordinator DEWEYANDERSON,ExecutiveSecretary THEODOREJ.KREPS,EconomicAdviser MONOGEAPHNo.23 AGRICULTURE AND THE NATIONAL ECONOMY ALBERTL.MEYERS REPRINTED BY WILLIAM S HEIN & CO., INC. BUFFALO. N. Y. 1968 ^ ACKNOWLEDGMENT Thismonographwaswrittenby ALBERT MEYERS L. SeniorEconomist, UnitedStatesDepartment ojAgriculture TheTemporary National Economic Committeeisgreatly indebted to this author for his contribution to the literature of the subject underreview. Thestatusofthematerialsinthisv.olumeispreciselythesameasthatof othercare-fullypreparedtestimony hengivenbyindividualwitnesses;itis information submittedfor Committee deliberation. No matter what the official capacity ofthe witness or author may be, tht publication ofhis testimony,report, ormonographbythe Committeeinnowaysignifiesnor impliesassentto,.orapprovalof,anyofthefacts,opinionsorrecommenda- tions, nor acceptance thereofin whole or in part by the members ofthe Temporary National Economic Committee, individually or collectively. Sole and undivided responsibilityfor every statement in such testimony reports, ormonographsrests entirely-upontherespectiveauthors. (Signed) Joseph C. O'Mahoney, Chairman, TemporaryNationalEconomic Committee. TABLE OF CONTENTS Page Letteroftransmittal vii CHAPTER I TheAgriculturalSituation 3 CHAPTER II ConcentrationofControlinAgriculturalProduction 9 Factorstendingtoincreaseconcentrationofproduction 13 Factorstendingtoretardorreduceconcentration 13 Controlofproductionbymeansotherthanownership 14 Controlofproductionby Governmentagencies 14 CHAPTER III ConcentrationofControlin MarketingAgriculturalProducts 17 Concentrationofcontrolatlocalshippingpoints 17 Creditcontrolandmarketfreedom 19 Restrictionsontradeinterminalmarkets 19 Barrierstointernaltradeinfarmproduce 21 Concentrationofcontrolinfoodprocessing 22 Concentration ofcontrolinretailoutlets 25 CHAPTER IV ConcentrationofControlinSuppliesPurchasedbytheFarmer 29 Concentrationofcontrolinretailingtothefarmer , 30 CHAPTER V MethodsofReducingtheFarm MarketSpread . 33 Marketingagreements 35 Methodsofreducingpricesfarmerspay 36 CHAPTER VI TheFarmerandthe NationalEconomy 37 Bibliography • 43 Index '.. 45 V SCHEDULE OF TABLES Page. 1. Average per capita consumption of principal agricultural products, 1920-37 3 "2. HarvestedacreageofcropsfortheUnitedStates, 1924r-39 4 3. Thechangingrelativeimportanceofdomesticandforeigndemandfor farmproducts 6 4. Percent distribution of number of f^rms,bysi,zeoffarms,in various censusyears and changes in distribution 9 5. Percent distribution of all land in farms, bysizeoffarms,in various censusyearsand changes in distribution.- 10 6. Farms,500to999adresand1,000acresandover,aspercentofregional totalfarmacreage 10 7. Estimated numberofgrowers and approximateannualfarm value of cropsforwhichmarketing-agreementprogramswereineffectduring thefiscalyear 1939 12 8. Commercial-trucking rates for haulingspecified fruits and vegetables from railroads or docks to principal wholesale markets within the city L 20 9. Percentagesof various types offarm machinery sold-by largest com- paniesin 1936 ... 30 10. Indexesofindustrialproduction, agriculturalproduction, and ratio of pricesfarmersreceivetopricesfarmerspay 39 VI