276 
AGRICULTURAL RELIEF 
Mr. Forr. And to do their grading as Mr. Clarke suggested, would 
they not? . 
Mr. KiLgore. Possibly we do not quite understand each other. 
We would have the same standards for grades and packages and 
packing that we now have, with such others as might be put into 
operation by the United States Department of Agriculture. Gen- 
erally, the Department of Agriculture is the authoritative agency for 
establishing standards, grades and packages. The States accept 
those and adopt them. 
Mr. CLarke. The world trade accepts them, in many respects. 
Mr. KiLcorE. They would be an operation; they would be used 
then just as now. But my thought is that you have to have some- 
body to take a product when it comes in and say what that grade or 
that staple, is referring to cotton particularly. The farmer does not 
know what the grades and staples of cotton are; he has to have 
technical experts to do that. The cooperative would perform that 
service, and in that way he would get the benefit of the premium on 
grade and staple, which the individual farmer has not gotten in the 
past. 
Mr. Fort. You do not think then that the board would protect 
the proper price for the growers on the cotton that graded differently 
from middling? 
Mr. KiLgore. The standard—I mean the basis for loans would be 
middling seven-eighth-inch in the case of cotton; that would be 
the standard. Of course, the premium that was above or below, 
the grower would get that. 
Mt. Fort. I am talking about purchases that the board makes to 
sustain the market. : 
~ Mr. Kineore. The board would expect the cooperatives to do that 
if they were going to handle the surplus for it. 
Mr. Harr. Then, Doctor, you do not feel that the enactment of the 
law carrying the equilization fee is going to discourage the organiza- 
tion and the building up of the cooperative societies? 
Mr. KiLcore. I think it would encourage them. 
Mr. Kercaam. Doctor Kilgore, just before you leave the stand, 
one question: A little while ago I think you, in speaking of equaliza- 
tion fee plan called it a compulsory surplus operating proposition. 
Taking your cotton crop the last year, then, and supposing that the 
equilization fee has been determined by the board would be $2 a 
bale, and your production the last year was 18,000,000 bales. Then, 
if I understand you correctly, that $2 a bale would be spread not 
only over the surplus but over the whole crop? 
Mr. KivGore. Over the whole production; yes, sir. 
The Crairman. Will you go on to-morrow, Doctor? 
Mr. KiLGore.. Yes, sir. 
The CHAairMAN. Then, the committee will stand in recess until 
to-morrow morning at 10 o'clock. 
(Thereupon, at .12 o’clock m., the committee adjourned, to meet 
to-morrow, Tuesday, February 7, 1928, at 10 o’clock a. m.)