Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-03-17

Continued From First Page.)
ton to farmers of each agricultural
product having an exportable surplus
for the five preceding years, and also
the financial investment therein, and
to report these data to the cooperative
as the price basis for the current year.
The cooperative shall then offer to the
farmers a price equal to this average
cost of production, plus enough to yield
5 per cent upon the capital investment.
When the cooperative shall have ac-
quired the exportable surplus, or as
much of it as necessary to maintain
the price level, it will sell the surplus
to the best advantage, or hold it until
such time as it may be sold to the best
advantage.
In the event Of losses due to the
sale of export commodities in the world
markets at lower price than the basic
price paid by the cooperative, these
losses are to be paid, under the
Brookhart bill, from the Treasury of
the United States until they reach
to be equal to the subsidy paid the
railroads the first six months after
they were turned back to private own
ership under the transportation act,
plus the profits of the Government in
the wheat corporation during the World
War"
Excise Tax Is Suggested.
Thereafter" the bill continued, they
shall be paid by an equalization fee or
excise tax, as Congress may determine"
The McNary bill provides for Fed
eral farm board with wide powers,
revolving fund of S250,000.000 to be
loaned to co-operatives to aid in the
orderly marketing of the crops, but it
does not attempt to fix any basic price
for the commodities or to deal specific
ally with the exportable surplus as does
the Brookhart bill.
Senator Brookhart was one of the
strongest supporters of President Hoover
during the campaign, when some of
the farm leaders were lukewarm to
the Republican nominee. He has con-
ferred with the President several times
with regard to farm legislation. 1t is
expected he will do all he can to have
the plan he has outlined for farm re-
lief adopted, II not as whole, in some
modified FORM
It is clear, however, that with the
diverse views of what should be done
for the farmer In the way of national
legislation coming to the fore again
before the congressional committees
and in the Senate and House, the adj
ministration will be called upon to in
dictate definitely how far 1t is willing
to go and along what lines. The House
and Senate leaders in charge OF farm
legislation have indicated their willing
ness to go along with the President in
the matter of framing and passing a
farm bill. This Is true of most OF those
who formerly supported the old Nc
Nary Haugen farm bill, with its equali-
cation fee principle, twice vetoed by
former President Coolidge and to which
Mr. Hoover was opposed.
It is the hope of Republican leaders
that farm bill will be ready for intro
duction in the House not later than
April 20. In the House committee there
is likely to be division of opinion re-
garding the best plan to be reported
out. But there, too, as in the Senate
committee, it is expected that the limi-
tations fixed by the administration will
govern in the end.
Senator McNary hopes to be able to
wind up the hearings on farm legiSla-
ton in a week or 10 days at the most,
and then to have his committee get
down to the work Of drafting a bill
, without further delay. Both the con-
gressional committees have held ex-
tensive hearings on the farm problem
in the past, and the plan is to avoid
repetition of much that was presented
at these former hearings, If possible.