The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-12-16
FLAWS PICKED
IN new farm
AID MEASURE
Bill in Reality Puts High
Sales Tax on Consumer,
Declare Foes.
FAVORED BY ROOSEVELT
Opponents Question Right
of Leaders to Speak for
Soil TiIIerS.
BY MARSHALL M'NEIL
Times stan Writer

WASHINGTON, Dec. 16.-Op-
ponentS of the farm relief scheme
OF organized agriculture are prepar-
ing to combat it as a new and ex-
traordinarily high sales tax upon
the very items of staple food and
clothing which heretofore have
been exempt from practically every
actual sales tax bill offered in con-
gress.
The processing taxes on wheat,
cotton, tobacco, and hogs will be
passed on directly to consumers,
they will contend; and will amount
to 100 per cent sales tax on flour,
40 per cent on bread, 100 per cent
on cotton, and so per cent on hog
products.
All these taxes would not go into
the treasury, the opponets will ar
que, but will be turned over to
comparatively small groups pro-
ducing wheat, cotton, and hogs"
Attacks to Start Soon
These opponents will start their
attack before the house agriculture
committee within short time. The
effort to speed the time when the
house might vote on the new farm
relief device, known as the volun-
tary domestic allotment plan,
caused the committee to hold
night session Thursday.
Meanwhile, as advocates of the
measure continued testimony, it APP
peared that President Hoover's fed
eral farm board had given at least
its tacit approval to the price-rais-
ing plan, sponsored by Roosevelt
Democrats of the house, and by the
President-elect's agricultural advisor
in Albany, Henry Morgenthau Jr.
AS Fred Lee, representative of
the farm organizations, explained
the measure to the house commit
tee, he was prompted several times
by a farm board economist;
Demands Congress Quizz
In the meantime, Representative
Michael j. Hart (Dem., Mich.) is
preparing a resolution demanding
a congressional investigation to de-
termine whether the farm leaders
actually represent the agriculture
groups they claim to.
Much of the force given the new
domestic allotment proposal is
found in the fact that these farm
leaders, said to represent 100000
producers, have agreed unanimous
ly, for the first time, on this plan.
The sales tax issue was raised in
the committee hearing Thursday,
when questioning brought out that
the adjustment fee," or bounty, on
hogs would start at Z cent a pound,
and after a specified period reach
2 cents a pound.
1t also was explained that be-
cause only about 70 per cent of a
hog goes for human consumption,
that this 2-cent tax would be
equivalent to cents on the part
eaten. With hogs selling at about
TO cents pound now, that would
be approximately a so per cent
sales tax, it was said.
Argues for Acreage Control
Lee was on the witness stand
again to argue that acreage con-
troll is one of the essentials of the
proposal, but that this does not
mean production control.
He said that no change in mar
keting machinery would be involved
if the domestic allotment plan were
enacted, and said that while the
groups he represented wanted the
sterilization provisions Of the fed
eral farm board law repealed, they
were not insistent that the board
itself be abolished.
The most complicated feature of
the new bill pertains to producers
of corn, and corn as hogs. Among
other things, it penalties farmers
who raise hogs thai weigh more
than 200 pounds each, and contains
a clause which would permit the
government to buy up surplus hog
products and distribute them among
fI.a 1,r1v,o,.xy