482.

AGRICULTURAL RELIEF
Mr. Caverno. No; we could arrange with manufacturers to make
cotton bagging—they ave equipped for it now—on their jute ma-
chinery and would dispose of part of the surplus just exactly as you
would wheat by export.

Mr. KincHELOE. That is not contemplated under this bill?

Mr. CaverNo. It can be done under this bill.

Mr. KINCHELOE. You mean give the board the right to take raw
material and manufacture it?

Mr. CaviErno. The board would have in that case 2,000,000 bales
of cotton on their hands. They have a right to dispose of it in the
way which would make the maximum price of the whole crop, and
distribute the cost of raising the price of the whole crop over the
whole crop.

Mr. KincuELOE. You mean it is contemplated in this bill that
there might be some surplus cotton and the board has the power to
say some manufacturer down there—take this surplus and contract
with them and guarantee them against any loss, and whatever loss
there is to pay out of the equalization fee to manufacture that stuff
and take it off the market; is that contemplated in this bill?

Mr. Caverno. No.

Mr. KincaeLok. That is what I thought.

Mr. Fort. I thought you just said it was.

Mr. KincuELOE. That is what you said it was awhile ago.

Mr. CavERNO. It is contemplated in my idea of it. It is one of the
possible operations under the bill.

Mr. Fort. Is it permissible under the bill?

Mr. CaverNoO. I think so. Is it permissible to sell the surplus of
wheat products under the provisions of this McNary-Haugen bill at
a lower price? Is that permitted in the bill?

Mr. Fort. Which bill?

Mr. Caverno. In this bill.

Mr. KincHELOE. Which bill are you talking about?

Mr. Caverno. The McNary-Haugen bill.

Mr. Fort. Yes; I think that is what it contemplates doing.

Mr. CavERNO. But in cotton it gives an opportunity to sell the
surplus not in a different geographical market, but in an ordinarily
noncompetitive economic market at a lower price. That was brought
out by Congressman Brand of Ohio in a speech on the floor of the
House last year. I am not introducing that idea here for the first
time. Mr. Brand explained that on the floor.

_ Mr. Kincaeroe. I want to ask you one question that has been
in my mind some time.

Mr. Caver~o. Mr. Kincheloe, may I say ore word? The things
which I see as possible in this hill are not inherently necessary in
the operations of the bill. Some of my colleagues here might differ
from me very radically in regard to this. I am trying simply to tell
you how I see the bill might operate for the benefit of the producing

ass.

Mr. Kixcueror. Under section 7 of this bill it empowers this
board or some other agency, whenever there is a surplus above the
Tequirements of the country, to go out in the market and buy this
surplus nd take it off the market, and do the best it can to dispose
2 1t. : et us take a concrete example—I am asking this for informa-

1on, because it has bothered me a ood deal under the readine of this