Evening star., 1926-06-10
M'NARY BILL HELD
'SOv|ET|z|NC' PLAN
Fess Tells Senate 1t Favors
Britain, Not America-MeI.
Ions View Awaited.

| Carrying forward his fight against
i the. McNarEH Haugen corn belt plan
of farm relief, Senator Fess, Repub.
! lican, of Ohio. has added 10 his list
! of objections the charge that it is
| favorable to British hut not to Amer.
! ican interests.
+; Meanwhile, both supporters and op-
, ponentS of the plan are awaiting with
! interest an opinion by Secretary Mel
Ion on the economic phases of the
equalization fee principle as a means
! of solving the crop surplus problem
/ 1t has the Endorsement of Vice Presi.
! dent Dawes through his approval of
an opinion faroring i. by Sir Josia h
| Stamp, famous British economist, and
+, the Treasury Secretary was asked
several days ago by group Of it's
! supporters to give his views. An i'm
/ preston gained Yesterday was that
i he would hold it to be unsound
! 1T is easy to understand why a
great economist OF Great Britain
should indorse this plan" Senator
Fess told the Senate. Great Britain
believes in free trade and l don't
blame Sir Josiah"
Also Fears "Sovietixing."
! lie charged that. if enacted. the Nc.
Nary measure. now before the Senate.
would 'soNietize the great agricu-
tural industry" in America and as.
sure Great Britain a cheap food sup.
ply. transferring that nations unem
pioXment problem to the United
States.
1T would feed at lower cost tina n
american workers the producers of
articles which come into competition
with American products" he said.
Continuing his explanation OF what
ne regards as a dangerous principle
IN the pending legislation. Sena tor
kess said.
lf / should say that we are enter
ing upon movement to sovietize in.
dustry. it would be a strong expres.
sion and people would question
whether 1t was not simply an utter
ance OF disapproval rather than an ex,
preston of judgment: but here is a
proposal-and, so far as | know, Ii is
the first one of the kind we have ever
had-to sovietize a great industry and
ultimately. if successful. it will cover
all industries. Here is a proposal to
create a board by the industry and
give that board the control over the
buying and selling of the products of
that industry
1T is not subject to the President
The board is not selected by him. The
board is selected by an industry
| whose interests 1t is TO direct. The
selection by the industry Of it's con
trolling power is a sovietizing Of the
| industry-nothing more nor less
and while it does not appear that that
is the purpose. yet that will be the
outcome
Fee Also Scored.
There is another thing here that
makes this bill still more incompre.
hensible. There is a provision for the
collection of "A fee. 1t is now called the
equalization fee. II was once called
tax: but when those considering il
recognized that the term tax" would
be very unpopular. they sought some
new phrase. some new kind OF ex-
preston, and they aba ndoned the
| word tax and they called 1t the
equalization fee: and now it is being
denominated a fee for service as il
that would make any difference as
to the character Of the collection. "
when the lawyer for these farm
orsa mutations appeared before the
committee to testify on behalf Of this
measure. or the measure similar to
it. he was asked whether this fee
was not a tax. and without the blink
lux VI dI eye, "ltuput SecoIlu oI
! hesitation. he said 'Of course it is
a tax. 1t is only a tax Yet here
is proposal to give agriculture the
power to select the board of control
and to give that board the power TO
lay tax upon the people. 1t is a
delegation by the Government to a
board representing an industry of the
power to collect tax upon that
industry in behalf only Of the items
covered in the industry.
IF that will pass the test of con
stitutionality when the bill ultimately
comes to the Supreme Court. I shall
be greatly surprised. I should like
to have the constitutional lawyers
in this body interpret to the country
whether Congress could delegate to a
separate body the power to levy tax.
| do not think so. Therefore. 7 say
that when this body undertakes to
pass discriminatory legislation OF this
kind. that is to take care Of the
surplus by putting a bonus on the
surplus in order that losses may be
recovered. it strains the Constitution.
in the language of Jefferson, until it
almost cracks
The Senate Yesterday passed bill
by Senator Harris. Democrat. of
Georgia. to continue the reduced
postage rates on farm products mailed
on direct rural routes.