AGRICULTURAL RELIEF

431
steel is no longer ‘prince or pauper” as Andrew Carnegie used to say
about it; but steel is always a prince.

In the case of coffee we know that the Brazilian Government has
made certain efforts through a very definite plan they have to stabilize
the price of coffee. The criticism which has been made of it in this
country is some evidence of its effectiveness. I am not going further
with that than to say that the equalization fee principle is involved
in the Coffee Control Institute, as it is called, by the levying of a fee of
about 55 or 56 cents on each bag to cover the expense of the institute
in handling the coffee situation.

Mr. ANDRESEN. Doctor, when you used the term “stabilized
prices,” did you mean to bring prices up to a higher level and then
stabilize them?

Mr. KILGORE. Yes, sir; if I did not say that I meant to say a
better price and then stabilization.

Mr. Apkins. I think this distinction should be noted. It is true
that a very large percentage of the sugar plantations of Cuba are
owned and controlled by the sugar refineries in this country, and
that a large porportion of the production of coffee is confined to
another country, making a little different proposition than here.

Mr. KiLGorE. Somewhat more advantageous than cotton is, and
yet we are not in a very different position; we are in a somewhat
similar position as regards cotton.

Now, more specifically I wish to call your attention to two state-
ments in regard to the manufacture of cotton goods. In the New
York Times of January 15, is this press statement (reading):
New Bedford, Mass., January 13.—The New Bedford Mercury to-morrow will
say that radical curtailment of production has been adopted as the definite policy
of the fine-goods section of the cotton industry, and will be put into effect at once
by fine cotton cloth mills in New England and in the South.

The expectation is that nearly every fine-goods mill in the United States will
join in the movement which aims to eliminate the surplus production that has
been glutting the market and demoralizing values throughout distributing
channels.

The plan adopted proposes to limit all fine-goods plants to an output of not
more than 80 per cent of normal for the period extending from the present to
October 1, 1928.

Several New Bedford plants have been curtailing more than 20 per cent for
weeks, due to adverse market conditions.

The move has been under consideration for some time, both producers and
distributers of fine cotton goods urging a substantial curtailment of output as
the only hope of stabilizing market and employment conditions in the industry.

Efforts have been made to get the Fine Cotton Goods Exchange, the head-
quarters of which are located in New Bedford, to act as the leader of the move-
ment. In response to these suggestions, the exchange took up the question, and
its action at a meeting to-day is outlined in the following statement made by
Andrew Raeburn, former Secretary of the exchange, and now its president:

‘““At a largely attended meeting of the Fine Cotton Goods Exchange, held in
New Bedford to-day, the members concluded unanimously to adopt the policy
of instituting in their individual establishments a curtailment of production;
this curtailment to amount to not less than 20 per cent. to start immediatelv
and to be continued until October 1, 1928.”

Members of the exchange produce more than two-thirds of the fine cotton
goods of the country, but the curtailment will embrace a much larger proportion
of the industry. Many other mills have already signified their intention of
conforming to whatever curtailment policy the exchange adopted.

The method of curtailment is to be left to each individual plant, with the
understanding that contracts at present on the books are to be fulfilled. Each
mill will determine independently whether to run full time with one-fifth of its
equipment shut down, or to operate all equipment on short time.

Approximately 125.000 to 150.000 fine-goods looms will be affected.