AGRICULTURAL RELIEF

119

Mr. BLepsoEk. If you put this plan in operation with a cooperative
marketing association which handles seventy-five to eighty per cent
of the commodity, your question can be answered. If you get the
75 or 80 per cent,I do not think there would be any argument about
carrying the surplus for the other twenty. I think that thoroughly
answers your question; I think it would solve the problem.

Mr. Fort. Right there; you say the equalization fee in effect may
be needed to finance the insurance fee.

Mr. BLEpsoE. No.

Mr. Fort. In event the premium is not big enough.

Mr. BLepsoe. No. In case the equalization fee was in effect,
the storage, insurance and interest——you understand the difference
between a cooperator and a non-cooperator. The cooperator carries
the surplus and pays the storage, insurance and interest costs; he runs
the risk, and the non-cooperator gets the benefit of the market.

Mr. Fort. He carries his own storage, insurance and interest,
and the non-cooperator——

Mr. BLEDSOE (interposing). He takes advantage of the market,
while the cooperator is carrying out this other plan.

Mr. Fory. But, your insurance plan is designed to promote orderly
marketing, primarily.

Mr. BLEDSOE. Yes, sir.

Mr. Fort. If it is to promote the orderly marketing, it will pre-
vent, under your idea, the seasonal din to some extent that now
occurs at harvest time.

Mr. BLEpsoe. It would not prevent it over a period of years;
there is a natural dip, bound {uv pe, you understand, if you aregoing
{0 carry on.

Mr. Fort. Of course, there is a difference between the price one
day for actual sales, and the price for six months ahead, when the
other fellow is getting that actual six months ahead.

Mr. BLEpsok. That is sometimes the fact.

Mr. Fort. There 1s a difference in the values?

Mr. BLEDSOE. Yes, surely, there is bound to be, and then you
have the carrying charges.

Mr. Fort. That is because of the orderly marketing of the product?

Mr. BrepsoE. No, sir; there is naturally the increase, because to
the price you have to add storage, insurance and interest every day.

Mr. Fort. That is true; but, that does not affect the actual value
of the cotton. If the cotton is stored and you get fifteen cents, to
that you have to add, say, one cent carrying charge, that makes
sixteen cents that you get for the cotton; whereas, if you had sold 1t
originally at fifteen cents, and saved the carrying charges, you would
be just as well off. The point I am trying to get at is whether you
would profit with your. insurance feature by eventually bringing the
men into the cooperative associations; whether that will or will not
make the harvest time price a better price.

Mr. BLepsog. I think if you take the weight of the cotton off of
the exchanges, or set up any other device to take that weight off,
you will relieve the pressure on the market at delivery season.

Mr. Fort. And you think the harvest time price will improve for
everybody, for cooperator and non-cooperator alike?

Mr. BLEpsoE. Yes.