Evening star., 1926-12-14
Equalization Fee Principle
Embodied in Measure In
troduced Today.
AIMS AT STABLE PRICES
BY SURPLUS CONTROL
Attitude of Administration EX-
pected to Have Much to Do
With Fate of Plan.

The revised NC Nary ldTill IelleI piii'
embodying the equalization fee prin-
ciple, was introduced in the Senate to-
day by Senator McNary of Oregon,
chairman of the committee on agri-
culture.
The fight for farm relief legislation
demanded by the West, is expected to
revolve around this measure at the
present session. Much will depend
upon the ultimate attitude of the ad-
ministration toward the measure
Owing to the fact that the session OF
Congress ends March 4. there is grave
doubt that any farm legislation can
be put through now.
''The measure is essentially a sur
plus control bill" Senator McNary
said, 1.-The sole aim being TO stabilize
prices through control of the surplus.
Five Basic Commodities.
Five basic commodities are named
in the bill--cotton, wheat, corn, rice
and hogs. An important difference in
the new bill from the measure which
was offered by Senator McNary at the
last session is mat, under the new
bill, the equalization fee will run
against cotton, as against the other
basic crops. without postponement.
The bill will be referred to the Sen
ate agriculture committee. and Sena.
tor McNary hopes to have it reported
favorably to the Senate with little de-
lay. It's provisions have been con-
sidered carefully by members of the
farm bloc and by representatives of
farm organizations interested in agri-
cultural relief legislation.
In q statement issued by Senator
McNary, accompanying the bill. he
said that the new measure does not
put the Government into the business
of buying or selling anything on its
own account, and that all reference tn
price levels and price standards are
omitted.
while the new bill said Senator
NicNary. retains many of the essen
stials Of the old bill, the changes, on1is-
Eiofs and additions are sufficiently
numerous and important to make 1t
dis Nftnttl lss 9aE new "a ssssse@l
seThe Bit Is essentially q surplus
control bill, the sole ann being TO-
stabilize prices through control of the
surplus. For that purpose separate
'stabilization fund is. provided for
each Of the five basic commodities
cotton. wheat. corn. rice and hogs.
''These stabiIization funds are to be
drawn from the marketed units of
each commodity and are to be en-
ployed in removing or withholding or
disposing' of the surplus by coopera-
tives, or il there are no co-cperatives
capable of doing the job. by persons
engaged in processing such commodi-
ties.
Public Funds Barred.
No public funds may be used di
rect1y in effecting such control. but
loans may be made from a revolving
fund of 50.000.000 to the several
commodity stabilization funds in an
ticipation of the collection of the equa-
lization fees-all such loans to be re-
paid with interest. The Federal Farm
Board viii not itself buy or sell any
thing OH it's own account.
"All reference to price levels and
price standards arc omitted The sole
authority granted by the bin is to sta
bilize markets against undue and eX-
cessive fiuctuation and to preserve ad-
vaDtageous domestic markets by with
holding or removing or disposing' of
the surplus No standard of stabiliza-
tion and no price level are mentioned
In the new bill. The aim is 10 provide
funds drawn from each commodity to
be employed in StabiliZing the market
for that commodity by sound com
mercial methods.
'"rhe Federal Farm Board is retain
ed, but important changes are made
I'm the advisory council section The
old bin provided for national ad-
visory council, selected by farmers or
ganizations, which should make nonai-
nations to the President and act in an
advisory capacity to the Federal Farm
Board.
I'm the new bill nominations will be
made to the President, by nominal
ing committee chosen by farm orGani.
cations, and provision is made for non
Salaried commodity advisory councils
for each basic commodity, to be ap-
pointed by the board from lists sub
nitted by representative producers
organizations, which will consult and
advise with the board with respect to
all matters under it's jurisdiction, and
especially to cooperate with the board
In advising producers in the adjust
ment of production in order to secure
maximum benefits under this act"
Rice Included i'm List.
"Rice has been included in the bill
by urgent request of Southern rice
growers. Market conditions for rice
are comparable with those for wheat.
There is tariff on rice, but il is eff
fective only in years of small crops,
when there is little or no exportable
surplus.
all basic commodities, which must he
applied when operations begin with re-
Spect to such commodity.
1.-THE new draft oinitS the provision
in the old bill which deferred the col
lection of an equalization fee on cot
ton for three years and until Congress
should authorize its imposition. The
provision for stabiliZing cotton for
three years with Government funds is
also omitted This removes all ground
for criticism on the score of granting
q subsidy to cotton.
I'm the old bill the equalization fee
was imposed upon all producers of
the basic commodities named in the
bill. In the new draft the fee is i'm
posed upon each marketed unit of
such commodities. This carries out
the idea that we are dealing with the
commodity rather than with individ
ual farmers. The fee will be collected
at the most convenient point along the
route of the commodity to market
The board is given authority to collect
it on transportation, Of on the first
sales, or at the processing or milling
point.
"The new draft carries over un
changed the section authorizing loans
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