AGRICULTURAL RELIEF 
215 
Mr. Mences. When you sell tobacco to foreign countries, you 
guarantee that the grade you sell shall be as claimed? 
Mr. Moran. We certainly do; yes, sir. 
Mr. MEeNGEs. You are not adulterating or mixing it up with 
other stuff, are you? 
Mr. Morcan. I did not catch that last question. 
Mr. MEeNGEs. You are not adulterating the tobacco or mixing it 
with other stuff? 
Mr. Morean. No. We have these 405 grades, and we guarantee 
every hogshead to stand up to that grade. For instance, we sold 
the Portuguese Government three-quarters of a million pounds. We 
guaranteed every hogshead to come up to standard on the dock at 
Lisbon, and every hogshead did. 
Mr. MexGEs. Did you ever have any trouble about having tobacco 
thrown back on your hands because it was not up to the grade you 
had sold? 
Mr. Morgan. Very, very little. We have had a few hardsweated 
hogsheads, or some similar trouble. But we have a report from the 
inspectors that the tobacco from the Dark Tobacco Cooperative 
Association was the best graded and the best-handled tobacco that 
they have ever had in London. 
Mr. Kercaam. A little while ago when you were explaining how 
the equalization fee would work out with tobacco, you stated, as I 
recall it, that you thought 1 cent a pound would be sufficient. 
Mr. MorcaN. Yes, sir. 
Mr. KercHaM. I asked you to explain in detail how that money 
would naturally be collected, and how paid into the Treasury. Did 
I understand you advanced to the committee the theory that that 
would not be reflected back to the producer himself? 
Mr. Morcan. Oh, no; the producer will pay it. 
Mr. KercHaM. You frankly state that the producer pays it but 
the machinery does not require thrt he shall pay it. You state that 
very frankly? 
Mr. Morgan. That 1s my 1dea avout iu. 
Ir. Kercaam. I did not think that point was made sufficiently 
clear. 
Mr. Morgan. If he increases his crop, then the equalization fee 
might have to be 2 cents on next year’s crop. But he would know 
what it was, and he would understand. 
Mr. KErcaaM. And he pays it? 
Mr. MorcaN. Yes; the producer pays it. I think he should. I 
do not think we should load the Treasury down with that. We are 
not asking that. We want to manage our own business, and let the 
farmers bear the burden of it all. 
The CrairMaN. Frequently reference is made to bringing about 
crop reduction. Everybody seems to have abandoned the idea that 
it 1s not possible to bring about curtailed production. 
Another contention is that an equalization fee or stabilizing of the 
price might increase a year’s production. That is quite generally 
hinted at around this table. I believe that the characterization 1s 
that the producers possess enough intelligence to know that the 
larger the crop the larger the surplus and the larger the equalization 
fee, and the less the profit, and advancing a convincing argument 
to restrict production rather than to increase it.