AGRICULTURAL RELIEF

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fees, as you have said, is not only just and by which you will not only
raise the money to make the farmers carry the surplus, but don’t
you think that it will deter overproduction, and don’t you think that
the only thing yet offered will deter overproduction?

Mr. Brepsoe. Well, now, you are asking me to go into a subject
that is to be discussed latter; I am not scheduled to discuss that.
Our vice president is here to discuss that particular matter, and that
is something that he will bring to your attention.

Mr. KiNcHELOE. And you would rather not go into that?

Mr. BLEDpsoE. No; just let me speak on the insurance feature.

Mr. KincHELOE. You think one of the greatest incentives would
be to get more growers of the commodity into the cooperative, for
two reasons; one, because there would be insurance against his loss,
and the second reason—and to me it is the greatest reason—that he
would get his money, cash?

Mr. BLepsoEe. That is it, and reduce the operating expense to the
cooperative.

Mr. Fort. Let me ask you this as to your suggestion, provided
it is sound, and I am not saying it isn’t sound, if you suffer any
losses you are going to collect the insurance, of course.

Mr. BLEpsoE. It is a business proposition, just like old-line
insurance; that is all.

Mr. Forr. If you make any profit, not a single cent of that goes
to the Government, but the only person benefited by it is the man
who is producing this commodity. Supposing there were an amend-
ment In here giving this board the discretion to pay your losses to the
extent of 75 or even 80 per cent, and the further provision that the
board would also have to agree as to when you should sell; do you
chink that would be of any help?

Mr. BLEDSOE. I can answer you this way.

Mr. KiNncHELOE. I am trying to get something to agree on.

Mr. BLEDSOE. It is a real insurance proposition, just like any
old line insurance proposition. It is as Mr. Fort brought out in our
conferences about the weighted sales price. Mr. Fort, as an insurance
man, says that he does not want the cooperative to have the right
to select the time of sale.

Mr. KincHELOE. That is what I have had running in my mind.

Mr. BLEDSOE. It can be eliminated very easily by providing that
the average price during the delivery season will not be more than the
average price during the selling season, the prices to be based on an
exchange representing the world’s market.

Mr. Fort. I think that cures one of the things that has been
troubling me.

Mr. BLEpsoe. Does that answer you, Mr. Fort, satisfactorily?

Mr. Fort. I think it does.

Mr. KiNcHELOE. That doesn’t answer the point I am making. 1
am asking you about another proposition.

Mr. BLEDSOE. Yes.

Mr. KiNcHELOE. Then, you would make that a condition precedent
to sale?

Mr. BLepsoe. What?

Mr. KincueLoE. The hypothesis upon which you put it, you
would make that a condition precedent to the sale of this product?

86160—28—SER E, PT 2———5