AGRICULTURAL RELIEF

Mr. KiLcore. Indirectly, we do.

Mr. Mexces. How?

Mr. KiLcore. By having one price for milk for distribution to the
trade that uses whole milk, and another price or prices for the milk
that is used for other purposes or for making other products. }

Mr. AsweLL. The extra price they have for the fluid milk you
sell helps to average up the price of the stuff you have to sell at the
lower prices?

Mr. KILGORE. Yes, sir. :

Mr. AsweLL. You have not told yet how you pay the equilization
fee. I do not see anything like that in the McNary-Haugen bill.
Do you have to pay a fee?

Mr. KiLcore. We do not pay a fee.

Mr. AsweLL. Then the McNary-Haugen bill without the equiliza-
tion fee would answer your purpose?

Mr. KiLGorE. As we do not have an export business, or cover a
very large territory, the collection of a fee is not necessary—I am
afraid the gentleman just has not thought through his bill as fairly
as he might do..

Mr. AsweLL. Oh, yes; I have.

Mr. KiLgore. We are providing, so to speak, a domestic price for
our main product that we can consume or sell to our main trade,
and we are providing a foreign price, so to speak, somewhat lower,
as you would have in the tariff-protected products for the other
products trade, which is entirely the principle of the McNary-Haugen
bill.

Mr. Fort. Are you through, Doctor?

Mr. KiLgore. I had come just about, Mr. Fort, to the point where
we left off. We might begin now.

Mr. Fort. I am sorry I did not understand you were to have been
on this morning or I would have made my arrangements differently.

Mr. KiLGore. I purposely, as I stated to the committee, did not
continue where we left off, so that you might continue your questions.

Mr. Fort. Do you want to make a further statement on the points
where we left off, or shall I go ahead?

Mr. KiLGore. I shall be very glad to have you go ahead and I will
follow you.

Mr. Fort. Just to get the picture as to where we were, Doctor,
you and I had some little question and answer as to the price basis
that the board would operate under the equalization fee bill and
under the loan bill.

Mr. KiLGORE. Yes; precisely.

Mr. Fort. We agreed that the identical board would operate in
either bill. Now, we also, of course, agree as to the fact that the
only limitation in the specific provisions of the Crisp bill, instructs
the board to operate, if it operates at all, when prices are below or,
except for its intervention, may fall below the cost of production
with a reasonable profit to efficient producers. Would you fix a
higher point than that at which purchasers of a commodity should
begin under the Haugen bill?

Mr. Kircore. It is rather difficult to determine—I think it would
be rather difficult for the board to determine at what price it would
begin to buy and thus stabilize the price of cotton under the term
“efficient, producer

135