with the result that Mr. Franklin W. Hobbs, president of the National Association of Cotton Manufacturers, offered a resolution, which was seconded by Mr. Parker, of the American Association of Cotton Manufacturers, moved that it be requested of the Department of Agriculture to prepare a standard set of samples representing upland cotton, to conform to the present standards but made up of upland cotton. There was an amendment to that by Mr. Parker that myself and Mr. C. W. Francis and Mr. Hobbs be appointed a committee to convey those resolutions to Secretary Wilson. Acting for the other members of the committee, I presented the entire matter to Secretary Wilson in November, 1911. I made this request not only as president of the cotton exchange, but as a very large handler of cotton also. We want uniformity. We do not want middling cotton quoted in one section at one price and at another price in another section, the difference in price being due to difference in classification.

Mr. HEFLIN. Did I understand you to say just now that none of the exchanges had adopted

Mr. NEVILLE. None in the Atlantic States have adopted them. Memphis has adopted them. New Orleans has adopted them. Galveston has adopted them, and some of the smaller markets have adopted them, but to my knowledge, and I think the Department of Agriculture the Chief of the Bureau of Plant Industry told me so or will bear me out-that none of the standards have been adopted by any cotton exchanges in the Atlantic States.

Mr. LEE. They only adopted them because they had to?

Mr. NEVILLE. The standards are made all right, but they do not go far enough.

Mr. HEFLIN. There are nine standards?

Mr. NEVILLE. Nine grades.

Mr. HEFLIN. You think they ought to have two more? Mr. NEVILLE. I think they ought to have three more. I hope you gentlemen will understand me. If I had my way-in other words, if a committee of planters, manufacturers, and merchants should come and say, "Neville, make a standard of classification," I would embrace every bale of cotton, no matter how varied the quality, and give it a standard. By doing so you take a part of the growth of a commodity out of the junk class and put it where it would have a value. I would go down to the low ordinary. I would take everything up to fair and give it a standard. Cotton is what I am talking about. Mr. LEE. All these grades are now sold. What are they called when they are sold?

Mr. NEVILLE. You will have to talk to some of your buyers down in your country to get the name of the grade.

Mr. LEE. In other words, the several low grades are dumped into one grade?

Mr. NEVILLE. Yes, sir; and bought as cheaply as they can; and there are times when there is no competition for it. I am here to state facts to you. If it was in my power, I would make a standard for every bale of cotton. You could not get it adopted by any exchange; but if I had the making of it, I would make the standards. A man who produces something ought to have some way of knowing

its value.

Mr. TAGGART. Different standards for the consumer?

Mr. NEVILLE. That is a very difficult question to answer, for the reason that the average manufacturer endeavors to buy his stuff as cheap as he can, and there are very few manufacturers who like to use that class of cotton, but when they come down to a pinch they have to use it and they do use it. I have sold in the past week 3,000 bales of cotton from Mr. Heflin's State to one manufacturer.

one of the largest manufacturers in the world to-day-I would not say the United States, but in the world. I sold him 3,000 bales of cotton; the sample here is white as compared to it. The cotton was blue black in color, yet it had good spinning value, and a staple article.

Mr. HEFLIN. What would be the difference in price to the producer, if any, on this grade and middling cotton?

Mr. NEVILLE. It depends how the differences are fixed. The New York Cotton Exchange has it fixed.

Mr. HEFLIN. How many cents a pound?

Mr. NEVILLE. Two and fifteen one-hundredths cents a pound. Mr. TAGGART. Would raising the price of these lower grades have the effect of lowering the price on higher grades?

Mr. NEVILLE. I do not think so. That is an argument used by some people who I do not think have studied the subject; but my observation is this, and my experience for a number of years in it is this, that no grade has a tendency to depress the price of the basis in trading, which is middling, unless there is no middling to be had. Then the price will necessarily have to go down. In other words, middling is a basis all the world over. If there is no middling existing, the price of the basis middling is bound to be pulled down by the other grades, and, likewise, if there are no lower grades, and everything is better than basis middling, will depart from the high grades. The average grades of cotton have very little effect on the price of the basis of that grade.

Mr. TAGGART. Will a lower grade of cotton bring a higher price under this classification?

Mr. NEVILLE. It will bring a price more commensurate with its intrinsic value to a spinner than it would if it was not standardized. Mr. TAGGART. Would not that higher price create a greater demand for it?

Mr. NEVILLE. I do not think it will create a greater demand for it, but it will give the producer the means of ascertaining the value of that particular grade which he has not to-day.

Mr. TAGGART. But that information will give the demand, will be the cause of the demand?

Mr. NEVILLE. That would cause a demand.

Mr. TAGGART. And that will take the place of some other kind of cotton?

Mr. NEVILLE. No; because if you ever had any dealings with cotton manufacturers you would find out that all cotton manufacturers think the only grade of cotton produced throughout the cotton belt is strict middling and good middling. My experience with them for a number of years is that all spinners the world over seem to think there is nothing raised in America in certain seasons of the year but strict middling and good midling, and it is only when they can not

get those grades that they go to the other grades. They do not like to do it, but they have to do it sometimes.

Mr. LEE. Will these different grades be adopted by the New York Cotton Exchange?

Mr. NEVILLE. Mr. Lee, as I said before, I have only one vote; and under my authority and using my authority as president of the exchange, I will certainly work for their adoption, and think it is very reasonable to state that the New York Cotton Exchange would adopt these standards made of upland cotton.

Mr. HEFLIN. You will have different grades with this adoption? Mr. NEVILLE. Yes, sir; but only such quality and grades as are in use to-day the world over as between the manufacturers and handlers of cotton.

Mr. HAWLEY. What are the grades suggested by you?

Mr. NEVILLE. Fair, middling fair, and an additional grade to be called strict ordinary, to take care of the good ordinary American standard classification adopted in 1874.

IMPROVEMENT OF POST ROADS AND RURAL DELIVERY ROUTES.

THE COMMITTEE ON AGRICULTURE,

HOUSE OF REPRESENTATIVES,

Saturday, January 27, 1912. The committee this day met, Hon. John Lamb (chairman) presiding.

The CHAIRMAN. Gentleman, this morning we will take up the bill H. R. 16443 for the purpose of hearing Congressman Oldfield on this subject.

STATEMENT OF HON. WILLIAM A. OLDFIELD, A MEMBER OF CONGRESS FROM THE STATE OF ARKANSAS.

Mr. OLDFIELD. Mr. Chairman and gentlemen of the committee, I have prepared a short statement which I will be glad to read to the committee, and then if there are any questions I shall be glad to answer them if I can.

I desire to urge a favorable report from your committee on this bill, which seeks to appropriate, out of the Federal Treasury, $20,000,000 annually, for five years, making a total of $100,000,000, for the purpose of aiding the States in building good roads for the people.

Mr. Chairman, while this legislation would incalculably help every man, woman, and child in this country, yet the persons most benefited would be the American farmers. This bill provides that the money shall be expended under the joint authority of the Director of the Office of Public Roads of the Agricultural Department and the proper officers of the various States. If this bill should pass, and I sincerely trust that it will pass and at this Congress, it will mean that a little more than $400,000 will be allotted annually to each State in the Union for the purpose of aiding in building good roads.

Under this bill each State receiving these benefits must appropriate and expend in road building a sum equal to that received from the Federal Government for like purposes. Of course, in those States where they are not spending annually as much as $400,000 in road building it might work some hardship. However, in this connection I desire to call your attention to the fact that there were only four such States during the year 1911, and those four States, in all probability, will expend a sum for the purpose of constructing roads during the present year that will exceed $400,000.

I desire to submit with my remarks concerning this bill the table following, furnished me by the Director of the Office of Public Roads in the Agricultural Department, which shows the amounts expended