142

AGRICULTURAL RELIEF
Mr. Fort. I heard you say that.

Mr. KiLcore. Therefore, I would say that in the case of cotton
the chances of operation under the loan bill are greater than these
others. The losses might not be very great, but then what would
such a bill do for the other commodities?

Mr. Fort. I am asking you, Doctor, as a cotton expert, as I believe
you to be, and I should ask the same questions as to wheat or the
same line of questioning to a wheat man—now, then, you might run
up $30,000,000, or $40,000,000 or even $50,000,000 as possible loss?

Mr. KiLGorE. It is a mere guess, and I am not trying to figure it
out; it might.

Mr. Fort. If that is the possibility, we are figuring the difference
at the same price under either bill. That is the only case in which
you think there is that much possibility of loss. If there is that
much possible loss under the Crisp bill, there would be that much
possible loss under the Haugen bill. If that is true, then what would
your equalization fee have to be on cotton?

Mr. Kincore. Well, an equalization fee of $5 a bale on an
18,000,000-bale crop would be $90,000,000.

Mr. Fort. That 1s a cent a pound?

Mr. Kircore. That would be a cent a pound.

Mr. Fort. And you figure then that that would be entirely ade-
quate at that price?

Mr. KiLcore. I do not know what the board would do. I would
not imagine under conditions we have had that they would levy an
equalization fee in excess of $5. I would think it would likely be
considerably less than that.

Mr. Fort. You feel second, that the equalization fee under the
Haugen bill will help the cooperative associations?

Mr. Kirgore. I think it will help them, not by any compulsion in
forcing farmers into cooperative associations, but it will help them
because it will make conditions even, and possible for them to go into
cooperative associations and get as good prices or better through
cooperative associations than the man on the outside gets, and with-
out the disadvantages they have been under in the past, which have
tended to offset the advantages of cooperative marketing.

Mr. Fort. Do they not now get better prices through the co-
operatives than on the outside?

Mr. KiLcore. Three of the five years, when we had around a
normal production, they got more. But during these two surplus
years they have gotten less. And there is where our difficulty has
come. Until we run into these surplus years we got along nicely and
we had a growth in membership and in volume of business that was
very satisfactory.

Mr. Fort. Now, are your cooperative associations strong enough
% Jinedis this stabilization problem for the Government under either

Mr. KiLgore. I think so. I believe they would under the McNary-
Haugen bill; just what they would do under the loan bill, I do not
venture to say.

Mr. Fort. Do you think they are strong enough? You think they
are sufficiently representative of the croo to be able to handle it?

Mr. KiLcore. I think so.

Mr. Fort. At 6 per cent?