1 - American Memory

206
Consumers had to pay higher prices for food during June, July,
and August of 1971 than the same months during 1970. However, part
of the increase in tlie Consumer Price Index for food may be traced
to inflationary factors and to severe droughts on the mainland and
in Maui. The national wage-price freeze, which was in effect during
the strike, also helped keep prices down. Only in the case of raw agri-
cultural produce were merchants allowed to raise prices.
Hawaii's food and feed requirements, which are virtually dependent
on U.S. mainland suppliers for food and animal feed needs were also
affected. Hawaii produces less than one-half of her meat, poultry, pork,
and fruit and vegetable requirements, and virtually no animal feeds.
Rice, a major staple item in Hawaii, and all canned meats and canned
and frozen fruits and vegetables must be imported into the State.
Under normal circumstances Hawaii's food and feed suppliers main-
tain average inventories of 4 to 6 weeks' supply. In situations where
a transportation disruption is expected, suppners attempt to build up
a ."J months' inventory.
Transportation disruptions or even fear of a disruption causes
hoarding of major food and feed items. This situation creates a serious
imbalance in food and feed distribution with a resulting rapid decline
in available supplies during the early days of a transportation
disruption.
The possibility of strikes occurring also raises the cost of doing busi-
ness in Hawaii. Businesses need to keep large inventories as well as
discount expected profit rates of return on investments to make allow-
ances for snipping interruptions. These result in higher costs which
inevitably are passed on to consumers and contribute to this State's
exceptionally high cost of living.
H.R. 7189, if it does not tread on the principle of free collective
bargaining or violate existing and effective concepts embodied in Fed-
eral laws relating to maritime commerce, can insure the maintenance
of normal supply lines to Hawaii while providing additional time
necessary for the settlement of any future disputes.
We respectfully urge your committee's favorable consideration of
H.R. 7189, bearing in mind the importance of preserving our State's
economic integrity and security as a requirement for the continued
progress and security of our entire Union.
I thank you for the opportunity to make this statement.
Mr. DiNOELL. I think you have done a very excellent job of making
the presentation here.
You have given us a most able and carefully presented statement.
The Chair certainly commends you. I want you to convey to Acting
Governor Ariyoshi our appreciation for your presence. Again the
committee wants you to know the high regard we have for Mr. Mat-
sunaga, who is one of the most outstanding and able Representatives in
the Congress, and Mrs. Mink who in the view of all of us is without
peer in this body.
I want you to know their interest in this bill is the reason that we
are holding the hearing today.
It may he as matters proceed we will have additional questions. We
hope you will remain so that if we do, we can direct them to you.
Mr. Matsunaga.