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H. R. 10514. A bill to transfer to the Secretary of Agriculture certain

alcohol-producing facilities of the United States, to require him to

produce alcohol from surplus agricultural products and certain corn and

wheat, to provide for the disposal of such alcohol, and for other purposes.-

H. R. 11189. A bill to provide for the transfer to the Department of

Agriculture of a certain Government-owned alcohol plant, for the pur-

chase and use of grains in connection with the operation of such plant,

and for other purposes.

H. R. 11753. A bill to provide for the transfer to the Department of

Agriculture of a certain Government-owned alcohol plant, for the pur-

chase and use of grains in connection with the operation of such plant,

and for other purposes.

Statement of

Berger, Walter C., Division of Commodity Stabilization Service,

executive vice president of the Commodity Credit Corporation..

Jensen, Hon. Ben F., a Representative in Congress from the Seventh

Congressional District of the State of Iowa.

Johnson, Joseph G., engineer and owner-operator of the plant under

consideration, accompanied by Leroy Welsh, Chairman of the

Commission on Increased Industrial Use of Alcohol; Lewis Smith-

berger, grain dealer and elevator operator, Stanton, Nebr.; and

Sidney Caughey, United States Department of Agriculture

Miller, Hon. Å. L., a Representative in Congress from the State of

Nebraska --

Thone, Charles, administrative assistant to United States Senator

Roman Hruska...

Thye, Senator Edward J., of Minnesota.

Weaver, Hon. Phil., a Representative in Congress of the First District

of the State of Nebraska.

Additional data submitted to the committee by-
Department of Agriculture:

Report of the task group on industrial alcohol from grain of the

Presidential Commission on Increased Industrial Utilization of
Agricultural Commodities, April 25, 1957...

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ALCOHOL PLANT TRANSFER

MONDAY, MARCH 31, 1958

HOUSE OF REPRESENTATIVES,
COMMITTEE ON AGRICULTURE,

Washington, D.C. The committee met pursuant to notice at 10 a. m., in room 1310, New House Office Building, Hon. W. R. Poage presiding.

Present: Representatives Poage, Gathings, Albert, Thompson, Jones, Watts, Hagen, Johnson, Matthews, Hill, Hoeven, Simpson, Belcher, Harrison, Dixon, Smith, and Quie.

Also present: Representatives Harrison (Nebraska), McGovern, and Krueger; John Heimburger, counsel; Mabel C. Downey, clerk.

Mr. PoAGE. The committee will please come to order.

The full committee is meeting here this morning to consider legislation of an emergency nature which several of our colleagues have introduced on the matter of using soft corn for the production of alcohol which would involve reopening of a Government-owned alcohol plant at Omaha, Nebr.

There are, I think, a number of bills that have been introduced on this same subject matter. There is one by Mr. Harrison and one by Mr. McGovern, as well as one by Mr. Hoeven, a member of this committee, and there may be others who have introduced legislation on this same subject matter. The bills will be inserted in the record at this point. (The bills referred to are as follows:)

[H. R. 11753, 85th Cong., 2d sess.) A BILL To provide for the transfer to the Department of Agriculture of a certain Gov

ernment-owned alcohol plant, for the purchase and use of grains in connection with the operation of such plant, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, notwithstanding any other provision of law, the Administrator of the General Services Administration is hereby authorized and directed to transfer to the Secretary of Agriculture, without reimbursement or transfer of funds, the Government-owned alcohol-producing plant at Omaha, Nebraska, known as Plancor Numbered 1608, together with the equipment, facilities, and other property pertaining thereto.

SEC. 2. The Secretary of Agriculture is authorized, upon such terms and conditions as he deems reasonable, and notwithstanding the provisions of any other law, to operate such plant or provide for the operation of such plant under Government supervision by lease or other arrangement, for the purpose of manufacturing alcohol from grains which, in the opinion of the Secretary, are inferior, damaged, deteriorated, or in immediate danger of damage or deterioration.

Sec. 3. The Secretary of Agriculture is authorized to procure such grain by purchase without regard to the provision of law governing the making of contracts and by transfer, without reimbursement, of Commodity Credit Corporation owned stocks.

SEC. 4. The Secretary of Agriculture is directed to operate the plant, or cause it to be operated, in such manner as to utilize to the fullest extent possible grains of the type specified in section 2 hereof. Any arrangement for the operation of the plant shall be under such terms and conditions as will further the purpose of this Act and may include provision for reimbursement by the payment of a fee or otherwise for any losses incurred by the operator thereof. In the event it is determined by the Secretary that no appreciable amount of grains which are inferior, damaged, deteriorated or in immediate danger of damage or deterioration are available either from private interests or from Commodity Credit Corporation owned stocks, he may operate the plant (1) for the manufacture of alcohol from surplus grains regardless of the condition of such grains, and/or (2) for conducting research into new and improved uses of surplus grains for industrial uses. Any grains used in the operation of the plant may be obtained by the Secretary of Agriculture in accordance with the provisions of section 2 hereof.

Sec. 5. The Secretary of Agriculture may store alcohol manufactured at such plant or sell it at such price as he deems reasonable. All proceeds from the sale of such alcohol shall be deposited into the Treasury of the United States as miscellaneous receipts.

Sec. 6. There are hereby authorized to be appropriated such sums as may be necessary to carry out the provisions of this Act. The Secretary of Agriculture may also transfer from funds available to the Commodity Credit ('orporation such sums as may be necessary to carry out the purposes of this Act.

[H. R. 10514, 85th Cong., 2d sess.) A BILL To transfer to the Secretary of Agriculture certain alcohol-producing facilities of

the United States, to require him to produce alcohol from surplus agricultural products and certain corn and wheat, to provide for the disposal of such alcohol, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress as80mbled, That there shall be transferred to the Secre tary of Agriculture (hereinafter referred to as the “Secretary") the Governmentowned alcohol-producing facility at Omaha, Nebraska, known as plancor numbered 1608, and any other Government-owned facility useful in any program authorized by this Act, upon request for such transfer by the Secretary. The Secretary shall request the transfer of all such facilities within a reasonable time after the date of enactment of this Act but not later than January 1, 1959.

Sec. 2. The Secretary shall operate the facilities transferred to him pursuant to the first section of this Act to manufacture alcohol from surplus agricultural products and from corn and wheat purchased under section 6 of this Act.

SEC. 3. No officer or employee of any department, agency, or independent establishment of the Government of the United States shall purchase any motor fuel for use by such department, agency, or independent establishment unless at least 5 per centum of such fuel, by volume, is alcohol manufactured under section 2 of this Act.

SEC. 4. The Secretary shall sell for any use, other than human consumption, any alcohol which is not disposed of under section 3 of this Act at a price equal to the cost to the United States of manufacturing such alcohol.

Sec. 5. The Secretary shall, in addition to the manufacture of alcohol as required by section 2 of this Act, conduct experimental programs for manufacture of butadiene from alcohol produced from surplus agricultural products and from corn and wheat purchased under section 6 of this Act for the purpose of demonstrating the commercial feasibility and ascertaining the cost of such production, and shall carry on such other research as may be necessary to carry out the programs authorized by this section, including the development of improved processes and the development and commercial production of byproducts.

Sec. 6. The Secretary is authorized to purchase for use in manufacturing alcohol under section 2 of this Act and for carrying out the programs authorized by section 5 of this Act, any corn and any wheat which by reason of its high moisture content is ineligible for purchase by the Commodity Credit Corporation under any other provision of law.

Sec. 7. Section 3 of this Act shall not apply to any purchase of motor fuel during any period when the Secretary certifies that, by reason of a lack of surplus agricultural products or of corn or wheat eligible to be purchased under section 6, he is unable to produce sufficient alcohol to meet the requirements of section 3 of this Act.

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SEC. 8. As used in this Act

(1) The term “motor fuel" means any petroleum product (including gasoline, kerosene, naphtha, benzine, and crude oil) which (A) has a specific gravity of thirty-six degrees or above, Baumé scale, and (B) is suitable for use as fuel in an internal-combustion engine.

(2) The term “United States” includes the States, Territories, and possessions of the United States, and the District of Columbia.

(3) The term "surp agricultural products” means so much of the supp of any agricultural product acquired by the Commodity Credit Corporation in the course of providing price supports for such product as the Secretary determines to be in excess of the normal needs of the United States,

(H. R. 11189, 83th Cong., 2d sess.) A BILL To provide for the transfer to the Department of Agriculture of a certain Govern

ment-owned alcohol plant. for the purchase and use of grains in connection with the operation of such plant, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, notwithstanding any other provision of law, the Administrator of the General Services Administration is hereby authorized and directed to transfer to the Secretary of Agriculture, without reimbursement or transfer of funds, the Government-owned alcohol-producing plant at Omaha, Nebraska, known as Plancor Numbered 1608, together with the equipment, facilities and other property pertaining thereto.

SEC. 2. The Secretary of Agriculture is authorized, upon such terms and conditions as he deems reasonable, and notwithstanding the provisions of any other law, to operate such plant or provide for the operation of such plant under Government supervision by lease of other arrangement, for the purpose of manufacturing alcohol from grains which, in the opinion of the Secretary, are inferior, damage, deteriorated, or in immediate danger of damage of deterioration.

SEC. 3. The Secretary of Agriculture is authorized to procure such grain by purchase without regard to the provision of law governing the making of contracts and by transfer, without reimbursement, of Commodity Credit Corporation owned stocks.

SEC. 4. The Secretary of Agriculture is directed to operate the plant, or cause it to be operated, in such manner as to utilize to the fullest extent possible grains of the type specified in section 2 hereof. Any arrangement for the operation of the plant shall be under such terms and conditions as will further the purpose of this Act and may include provision for reimbursement by the payment of a fee or otherwise for any losses incurred by the operator thereof. In the event it is determined by the Secretary that no appreciable amount of grains which are inferior, damage, deteriorated or in immediate danger of damage or deterioration are available either from private interests or from Commodity Credit Corporation owned stocks, he may operate the plant (1) for the manufacture of alcohol from surplus grains regardless of the condition of such grains, and/or (2) for conducting research into new and improved uses of surplus grains for industrial uses. Any grains used in the operation of the plant may be obtained by the Secretary of Agriculture in accordance with the provisions of section 2 hereof.

SEC. 5. The Secretary of Agriculture may store alcohol manufactured at such plant or sell it at such price as he deems reasonable. All proceeds from the sale of such alcohol shall be deposited into the Treasury of the United States as miscellaneous receipts.

Sec. 6. There are hereby authorized to be appropriated such sums as may be necessary to carry out the provisions of this Act. The Secretary of Agriculture may also transfer from funds available to the Commodity Credit Corporation such sums as may be necessary to carry out the purposes of this Act.

Mr. Poage. All of us want to do something on this problem of using this soft corn. I think that everybody wants to use this soft corn if it can be done effectively, economically, and practically and if it can be done profitably.

However, there have been several questions in the minds of some that I know, of the public and I am sure of people from the Corn Belt as to

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