AGRICULTURAL RELIEF 
217 
The question I wanted to ask you is this: If this present bill was 
set up as it is now without the fee, that you could come and borrow 
more money and operate without the fee, would you then attempt to 
sign them up and try to operate? 
Mr. MorGan. We do not need more financing. 
Mr. Apkins. As soon as you lost this money you would be out of 
business? 
Mr. MorGAN. We can borrow to-day all the money we are entitled 
to borrow. We went on Wall Street while we were in the lawsuit 
in the Federal courts and borrowed all the money at low rates we 
were justly entitled to. 
Mr. Apkins. You would not feel under those conditions that you 
had any relief? 
Mr. Morean. We feel that the McNary-Haugen bill is a lot of 
necessary legal phrases draped around the equilization fee? 
Mr. Apkins. You do not feel that we would be offering any relief 
if we passed the bill without the equalization fee. 
Mr. Moracan. It would not give us any relief without the fee. 
Mr. ANxprESEN. Would it make any difference if you paid the 
members of your cooperative the full market price rather than holding 
out and paying when you sold it? 
Mr. Morgan. There is this trouble with tobacco; it has no stable 
value. You can look in the paper and tell the price of cotton or the 
price of hogs. But you can not tell what tobacco is worth. It is a 
fancy. A man may be willing to pay a fancy price for a certain 
grade of tobacco because he uses that in his particular blend, and he 
may have to buy that particular blend because he has run out. All 
the crop of one year is not made up into the different brands by 
manufacturers, because every crop is different. One may be a wet- 
weather crop and another may a be dry-weather crop. So they have 
to blend the crop of four or five years in order to keep the standard 
they have been advertising. 
The Imperial Tobacco Co. has got tobacco in the King’s ware- 
houses at London as far back as 1914 crop, and they have a lot of 
the 1917, 1918, and 1919 crop. 
The banker when he loans you money on tobacco really does not 
know what the collateral is worth. But if he loans money on wheat 
he knows what the market price is because by glancing at the news- 
paper he gets the city exchange quotation. It is the same way with 
cotton. But he just has a rough idea about tobacco. 
Mr. ANDRESEN. Suppose a member of vour organization, a pro- 
ducer, brings his tobacco into your cooperative. Do you grade 
it, and then you sell it immediately after grading, or do you hold 
it and sell it when you think the conditions as to price are right? 
Mr. Morgan. We endeavor to sell it promptly, if we can, at a 
fair price, so it can be moved right off that floor to the buyer. If we 
can not sell it for a fair price, then, of course we have got to put 
1t In hogsheads and put it away in storage houses, awaiting the 
time when it will bring a fair price. 
Mr. AxprEsEN. What has been your experience as to holding 
over and not selling it immediately? Do you make more money 
by holding it? 
Mr. Morgan. By holding it, yes. If we were to put it on the 
market right away that same year, then there would be no advantage