144 
AGRICULTURAL RELIEF 
Mr. Fort. Let us get into the mechanics of this operation, doctor. 
You are going to collect the equalization fee on the transportation or 
sale, are you not? 
Mr. KiLcoRrRE. Yes, sir. 
Mr. Fort. All right. That means when it reaches New Orleans, 
it having been transported, the fee has already been paid on it, has 
it not, when the actual cotton reaches there—the fee has been paid 
before it gets to New Orleans, has it not? 
Mr. Kircore. That might be part of the transaction at New 
Orleans. 
Mr. Fort. So the price in New Orleans will be the price with the 
fee paid? 
Mr. KiLcore. New Orleans would be allowing for the fee in the 
price it would pay, just as the merchant or the cooperative would do. 
Mr. Fort. The 18-cent price on the New Orleans exchange, there- 
fore, for spot cotton will be the price after the payment of the fee, 
would it not? 
Mr. KiLgore. Yes; if the fee is included in the price quoted. 
Mr. Fort. So that the price the merchant would pay on the same 
day in the country would be 17 cents. 
Mr. Kincore. On the other hand, I do not think there need be a 
particle of difference in the relationship between the merchant’s 
price and the quoted New Orleans price because of the equalization 
fee; they might be relatively the same as now. : 
Mr. Fort. Would there not be an equalization fee in there? 
Mr. KiLgore. Certainly it would be in there, but it would be 
something you would not see. 
Mr. Fort. Why would it be something you would not see? Is 
the merchant going to pay 18 cents to the farmer if the price is 18 
cents for cotton on the cotton exchange? Is he going to give the 
farmer 18 cents, and then pay the 1 cent fee out of his own pocket? 
Mr. KiLcore. He is going to count it with the price he has paid, 
in establishing his selling price. Of course, the farmer’s price will 
have the fee taken into consideration. : 
Mr. Fort. It will be 17 cents if the fee is 1 cent, will it not? 
Mr. KimLgore. I do not think necessarily so. For example, the 
basis of New Orleans quotations might not include the fee. 
Mr. WiLniams. Mr. Fort, would not the fee be just the same as 
transportation charges? 
Mr. Fort. It would come out. That is the point I am trying to 
get at. But if the New Orleans Cotton Exchange price is 18 cents 
and the equalization fee is a cent and the transportation is one-tenth 
of a cent a pound, what is the merchant going to pay the farmer 
that day? 
Mr. Cuarke. Why do you not answer the question. Mr. Kilgore, 
and be frank? 
Mr. KiLcore. I do not know whether I just follow the question 
as stated—whether I ought to make that admission or not. But I 
am perfectly willing for Mr. Fort to ask his question and follow his 
line through. 
Mr. Fort. Let us assume these points, Doctor: The equilization 
fee is 1 cent. 
Mr. KiLcore. Yes. 
Mr. Fort. The transportation charges are one-half cent. * That is 
a cent and a half, is it not?