AGRICULTURAL RELIEF
exactly what you are talking about, as I have not read the bill with
your question in mind.

Mr. FuLMmER. Supposing you have a loss under your loan scheme,
how would you get your money then?

Mr. Fort. The provisions in the former bills that I have believed
in have been, Mr. Fulmer, that the Government would make the
loans to the corporations for the purpose of carrying the surplus,
presuming, in the first instance, as shown by Mr. Bledsoe’s figures
there, that in 15 out of 20 years, for example, in cotton, that the
operations would produce a profit, that the profit in the 15 out of
the 20 years will far more than carry the loss in the other years.

Mr. FuLmer. That is in the case of cotton. Are you taking the
other farm products?

Mr. Fort. I have not analyzed the statistics in all of them.
Therefore, the Government can assist in the organization of such a
corporation with the absolute assurance that with any sort of intelli-
gent management the profits over a period of years will not only
wipe out the losses, but will eventually produce a capital fund for
the corporation itself, which will render further loans, unnecessary.
In Mr. Bledsoe’s figures, as I pointed out in the beginning, in the last
20-year period, the cotton corporation would have total profits of
something over $50, and total losses of something around $11, and
would wind up on its average transactions throughout the period of
20 years with $39 profit.

Mr. BLepsor. That was in cents that I gave you, 39 cents.

Mr. Fort. It is $39 in twenty years.

Mr. FuLmER. But the handling of cotton would be quite different
to the handling of the other farm products, because we export about
85 per cent of our cotton.

Mr. BLEDSOE. I am not talking about that.

Mr. Fort. I am talking about whether the corporation, intel-
ligently managed, will make or lose money. I will say I think it
will make money, and I think we would be thoroughly justified in
loaning money to these corporations.

Mr. FuLMER. If you get the money you will not have to ask for
the equalization fee.

Mr. Fort. I am wondering whether to take the chance of passing
something that we do not want.

Mr. ULMER. If you have a loss, you will have something to take
care of 1t.

Mr. RuBeY. You were asked by Mr. Fort, I believe, with reference
lo the equalization fee plan. I don’t think you want that over a
period of years, do you?

Mr. BLEDSOE. Yes.

Mr. RuBey. You would stimulate production unless the equali-
zation fee is set down.

Mr. BLEpsoE. I would put some limitations on that. Senator
McNary’s bill provides that there shall be no operation with equali-
zation fee, or otherwise, if the acreage is increased. I would say
I will stand behind him, if they increase the acreage, on that point.

Mr. Kercram. In your discussion with reference to your coop-
erative I think you said that you handled approximately 30 per cent
of the crop.

Mr. BLepsoE. I think it is between 28 and 30.

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