AGRICULTURAL RELIEF 
Mr. Fort. Do you think it ought to be stabilized at above the cost 
of production? 
Mr. KiLcorg. No. 
Mr. Fort. You do not? 
Mr. KiLcore. I have not suggested that. 
Mr. Fort. I am just seeing how close you and I are, to ascertain 
if I can not get you to come around. We agree it should not be 
stabilized, then, above the cost of production. Under this bill, 
under that language, you will concede, will you not, that if the board 
was willing to do so it could stabilize at the approximate cost of pro- 
duction? 
Mr. KiLcore. Now you are asking for something that would 
result or be effective from operation of this bill, I take it, and I am not 
willing to venture into the field of prophecy. 
Mr. Fort. No; I said if the board—I am asking the premise—if the 
board under this bill determined that it would advance sufficient 
funds to stabilize the price of the cotton at the cost of production, 
it could do it under the structure of this bill, could it not, with 
$250,000,000 or so available? : 
Mr. Kingore. Not and follow the provisions of the bill, I think. 
Mr. Fort. Why not? 
Mr. KiLGorRE. You are a lawyer, I am not; you have the advantage 
of me there; I might be wrong. 
Mr. Fort. I have reformed. 
M. KiLGore. I can use only common sense, and as I see it, I do 
not interpret the first part of section 10 there like you do: 
‘““A corporation receiving such advances shall make purchases,” 
that is, with that advance—only if every reasonable effort shall 
be exercised by the corporation to avoid losses and to secure profits 
on resales. That means they have got to buy at a price, that is, use 
the money that has been loaned them to purchase the product so 
that they can resell it so as not to sustain losses, but to make profits. 
Mr. Fort. Let us get back to another fundamental: Do you or do 
you not believe that purchases of any essential human commodity, 
made at or approximately at the cost of production, will eventually 
turn and produce a profit? 
Mr. KiLcore. I believe they will, if bought low enough. 
Mr. Fort. If they are bought approximately at a cost of produc- 
tion? . 
Mr. KiLcore. I will not say that—at or approximately, but if 
Dot sufficiently below—I would not want to commit myself on 
that. 
Mr. Fort. I mean, cost of production to a man of reasonable pro- 
ficiency; I do not mean a man who is getting 30 pounds of cotton to 
the acre, but a man whose land should be employed in growing cotton 
and who is getting a reasonable crop at a reasonable cost. Do you 
not think that a purchase of that cotton at that price will always show 
a profit, if you have the financial ability to carry it? 
Mr. Kincore. I think there are conditions under which it would 
not. 
Mr. Fort. How long would you have to carry it? 
Mr. KiLGore. Suppose, for instance, cotton were purchased at 
17 cents a pound—— 
Mr. Fort. Is that the cost of production? 
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