2920 AGRICULTURAL RELIEF 
process usually is done by the farmer. Sometimes 1t 1s done by the 
man who buys the tobacco. 
Mr. MorcaN. We have two types of tobaccos—the fire cured and 
the air cured. In the fire cured there is no necessity to do anything 
to that tobacco except to put it right in the hogshead. We run our 
tobacco 1,500 to 1,800 pounds to the hogshead. That tobacco will 
keep indefinitely in any climate, anywhere. It has been smoked for 
a long time with slow fires, and it is like an old ham, it will just keep 
anywhere. } 
But air-cured tobacco has to be put through a redrying process 
before it goes into the hogsheads. It takes very expensive machinery 
to handle tobacco that way. 
There is another tobacco in the Henderson tobacco section that is 
made into strips for the British trade, although that business 1s dying 
fast on account of the preferential duty causing them to buy more 
and more from their colonies. We have 49 cents a pound preferential 
duty against us on tobacco. 
Mr. Menges. Do you use any alcohol in your curing operations? 
Mr. Morgan. No, sir; none at all; not in tobacco. 
Mr. Kercaam. Mr. Chairman, 1 just want to take this moment 
y call especial attention to one preamble in this resolution—- 
The CHAIRMAN. Do you yield, Mr. Morgan? 
Mr. MoRrGaN. Yes, sir. 
Mr. Kercaam (continuing). Which in my opinion is as fine an 
expression of our current thinking on this subject as I have seen 
anywhere, and I just want to emphasize it in this way by reading it 
again. [Reading:] 
Whereas the law of supply and demand does not apply when the supply is in 
the hands of unorganized farmers and the demand is in the hands of organized 
Mr. Chairman, I think that is one of the best-phrased statements 
of the situations that we are facing that I have seen in a long time; 
and if you had anything to do in composing that I want to congratu- 
ota you not only upon the thought expressed but its phrasing. 
'r. Kercuam. If you would answer just one more question. 
‘1. Moraan. Yes, sir. 
1. Kercuam. You stated if this bill were in operation and you 
nad a surplus crop, the members of your organization would go down 
and consult the board. You would probably have to carry over or 
need $3,000,000 to carry that surplus. The board would advance 
that money to you. After your operations were concluded for that 
vear, then the $5,000,000 that it was necessary for you to get from the 
board would be bald out of the equilization fund. 
Mr. Moreax. Yes, sir. 
Mr. Kercuay: Would not the proposition be solved if that money 
ig just paid out of the Treasury, instead of out of the equilization 
ee, and [ould you not accomplish the same purpose? 
ond os two othen Dalen discussed that business. It came up under 
that idea very much. Wo belies ee oF ongress, we do not ies 
salvation than to be feel] we would rather work out our own 
the Public Treas ng we were being handed some money from 
reasury when we can handle 1t some other way. 
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