AGRICULTURAL RELIEF

347
cause of having a surplus, was depressed down to about 10 or 11
cents? Under your bill you would simply add 2 cents to that price?

Mr. Goss. That and nothing more.

Mr. Foumer. And there would not be anything in your bill to take
care of the surplus or to bring about a fair price?

Mr. Goss. I explained before you came in, Mr. Fulmer, that we
are in hearty sympathy with that method of orderly marketing
which has been mcorporated in a number of bills which have come
before you. We have had bills ourselves. But we have felt that
there were two distinct principles, and we have not put them both
into the same bill. We believe that cotton can be served well by some
system of orderly marketing just as you have pointed out, here.

Mr. Former. In other words, if you simply add 2 cents to the 11-
cent price you would still be perhaps 5 cents a pound under cost of
production of the cotton?

Mr. Goss. That is correct. This bill does not aim in any way to
establish orderly marketing. If in the judgment of the committee
it seems wise to provide those conditions under the same bill, it is en-
tirely acceptable to us. We have felt there were two subjects which
should be in two different bills, and it was not my purpose to discuss
that question here further than to say that we are in hearty sym-
pathy and in accord with the principles of orderly marketing which
are in a number of bills which have been presented.

Mr. Forumer. I say, unless there is something to take care of the
surplus so as to bring about orderly marketing and a fair price, it
would not help the cotton situation very much.

Mr. KincueLoe. You have your debenture here on tobacco at 10
cents ad valorem?

Mr. Goss. Ten cents ad valorem.

Mr. Kixcueroe. The tariff on tobacco is at different rates on difter-
ent kinds of tobacco. I was just wondering why vou just put it
flatly on 10 per cent ad valorem?

Mr. Goss. The reason for that, Mr. Kincheloe, was this: Some of
the tariff rates on tobacco are so high that if it were put on the per
pound basis it would result in exporting some of the lower grades
and the collection of debenture on those grades of a value more than
the value of the tobacco. So we have put it entirely on an ad valorem
basis; and it might be well if in the judgment of your committee they
thought so, to establish an ad valorem price on evervthing for the
purpose of simplicity.

Mr. KincHELOE. 1 think if it ever becomes a law vou would have
to divide this tobacco up specifically in some language. 1 think it
pught to be amended.

Mr. Goss. That is probably true: but those are details that would
have to have the consideration of your committee in the utmost detail
in the question of tobacco. It is the main principle that we are try-
ing to bring before you; and we have written the rates in the bill,
which, we feel. without adequate investigation, are nearest to the fair
rates.

Mr. KincHELOE. I think it would work out less on tobacco than
any other commodity, do you not?

Mr. Goss. You mean there would be more difficulties in the way of
tobacco 2