370

AGRICULTURAL RELIEF
Mr. Stewart. We have to recognize the fact that cotton is put into
a container comprising bagging and bands, which as a rule stay with
that particular bale of cotton until it reaches the mill, where the
bands are cut, the bagging removed and the cotton consumed.

Mr. AswerL. As a matter of fact, Doctor Stewart, I do not think
there is any likelihood of passing a bill giving a debenture greater
than the tariff on commodities generally regarded as covered by
the tariff. o

Mr. Stewart. Very true. What I am saying 1s perhaps academic,
but the fact is that cotton is one of the very few commodities which
are put into identifiable units which retain their identity from the
time that they are first put together until they reach the mills where
the bands are cut. It is the only commodity that has been brought
into the picture in farm relief discussions of which that is true.

The significance of this can be made clear with respect to the
experience of an exporter in Memphis. This exporter had taken to
certain European markets, I believe he said, 10,000 bales of cotton.
Price conditions shifted so that he wanted to bring that same cot-
ton back into the United States. He was faced with the necessity
of paying two-fifths of a cent a pound as fumigation fee, unless he
could show that this was cotton of United States growth. He took
the matter up with the Federal Horticultural Board, which ad-
ministers the fumigation regulations in the case of cotton, and was
able to make clear by markings on the cotton bales, after it had
made its missionary trip to Europe, that it was cotton of United
States growth. You will hardly find another agricultural commodity
ander consideration here of which that same thing is true.

Mr. AsweLL. Since there is no tariff on cotton the debenture cer-
tificate on that product would not affect the tariff in any way. Why
not make it about 5 cents a pound instead of 2 cents a pound?

Mr. Stewart. The tariff, you mean?

Mr. Aswerr. I would make the debenture on cotton 5 cents a pound
instead of 2 cents a pound.

Mr. Stewart. That has been suggested.

Mr. AswerL. Well, why not?

Mr. Stewart. If I may interject——

Mr. Aswerr. Why not do it?

Mr. Stewart. If I may interject a statement, when Senator McKin-
ley faced this matter two years ago—-

Mr. AswernL. Who?

Mr. Stewart. The late Senator from Illinois. When Senator
McKinley faced this matter two years ago, he preferred 5 cents to 2
cents on cotton. -

The whole matter of rates is another story. What is the rate-
making principle— .

Mr. AsweLL. Would you be in favor of 5 cents on cotton? It
would make your bill stronger. [Laughter.]

Myr. Stewart. That was what Senator McKinley wanted.

Mr. AsweLL. Would you be in favor of 5 cents on cotton?

Mr. Stewart. If I were asked to set up a rate-making system, I
would have to give it considerable specialized study. I would be
glad, in case the committee should like to have a memorandum on
that, to try to work it out. but IT would not want to say offhand here