Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-02-25

continued from FIRST RAGE
those who produce other crops. He in
sisted that the measure was intended
for the relief of certain groups OF
farmers and not for the rank and file.
In the opinion Of the President. the
bill proposed to have the Government
commission packers buy hogs enough
to create a near scarcity in this cOun
ny and similarly to commission millers
to operate in wheat and corn and have
their losses, costs and charges PAID
by the farm taxpayers.
"It is roughly estimated" said the
President, that in this country there
are 1000 millers, over l 900 meat-pack'
ing plants and about ] 900 actual spin
ners. No one can say definitely after
reading this bill whether each of these
concerns would be entitled to receive
|. q. contract with tn Government. Ger
: tainly, no independent concern could
continue in business without one.
n Clearly, the President said, the pro
posed legislation involves government
s al price fixing. The proposed Federal
board, he said. is given almost un
/. limited authority to fix prices on des
Z. tgnated commodities.
This is price fixing, Furthermore.
{ said the President. ION some of the
Nations basic foods and materials. y
Upsets Normal Exchange.
The President heA that this price.
fixing would upset the normal ex'
change relationships existing in the
open market. He held that finally II
would have to be extended to cover
d multitude of other goods and serv-
ices.
Government pricefixing once start.
ed" said the President, has alike no
: justice and no end. It 10 an economic
folly from which this country has
3 every right to be spared"
~. The propo1 cd equalization eA the
President % d, is a tax for the ape
7 cial benens Of particular groups and
represented the most vicious form
of taxation.
.#s The chief objection TO the bill.
ssai the President, sis that it would
mot benefit the farmer. Whatever
may be the temporary influence of
arbitrary interference. no one can
deny that in the long run prices viii
be governed by the law Of supply and
demand"
Would FIout Law.
The President insisted that to in
crease prices and then to expect to
means of q plan which would in
crease production while decreasing
consumption, sis TO fiy in the face
of an economic law as well estab-
iished as any law Of nature"
The President criticised the almost
unlimited control" which the proposed
Federal Farm Board would have over
the agricultural industry under the
terms of the bill. He insisted that
the administrative difficulties involved
. were sufficient to wreck the plan and
that no one had yet outlined in def
mite and. detailed terms how the
principle Of the bill was to be carried
out in practice.
The collection Of the equalization
fee itself, he said. would present a
tremendous and complicated problem
Of administration.
Burden on Farmers.
The bill, he insisted. threatened to
dissipate and slow UP industry and
to disrupt the farmers home market
which absorbs 90 per cent Of his prod
ucts. It would he said, impose the
burden Of its support TO q large de-
gree on farmers who would not bene-
fit by it. He pointed out that the
products embraced In the plan are
only onethird Of the total American
farm production, and that there are
several million farmers who do not
produce any OF the designated prod
ucts or very litt1e Of them and that
thoss farmers would be compelled TO
pay tho premium upon the products
designated In the bill.
The President admitted frankly
that there Is a real and vital agricul-
tural problem in this country. He
said. however. that a real farm-relief
measure mast be Just and impartial
and open the way for aid for all
farmers.
1T has been represented that this
bill has been unanimously approved
by our farmers continued the Pres
tdent Several Of our largest farm
organizations have refused to sup
port it and important minorities in
the members and leadership among
the most important organizations
who are recorded as giving it in
dorsement have protested to me
against ii"
Opinion OF Sargent
Turning TO the question of the con.
Etitutionahty of the farm-relief bill.
President Coolidge said he would con
tent himself with transmitting TO the
Senate the opinion of Attorney
General Sargent
This measure is 20 io;g and in
volved that it is Impossible to discuss
il without going into many tiresome
Details" he said. MANY other reasons
exist why it ought not n- al proved,
but = IS Impossible 10 ktate them all
without writing book. Tine most de.
cisive one is that ii is not constiiI.
t:onal. This feature is discussed in an
opinion of the Attorney General hsie.
with attached and made par,
hereof"
That IT, bill includes some ,ood
feAfu res. the President admitted but
he adced that these provisions, in
tended To aid and strengthen eoopera
tive marketing, have been barred
from otns- Obstructive proposals. In
vhis measure. he said. these provi
sions have al been completely sub
ordinated 20 the main objective
which Is 70 have the Government
dispose OF axportable SURPRISES at a
loss and make svme farmer Taxpayers
foot the BILL
Attorney Generals Summary.
In his opinion to President Coolidge
the attorney general summarized his
conclusions as TO why the bill was I'm
constitutional as follows
have considered these question!
WIFI realization Of the grave re