The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-06-21
PROCESSING CHIEF
ENTERS AGREEMENT
With i. S. M|LLERS
Maximum Tax To Be 80 Cents
a BusheI or $1.38 Per
Barrel of Flour
NORTH DAKOTA TO BENEFIT
Statistics on Recent Production
Show This State Among
Leaders
NORTH DAKOTA TO Benefit

VooiAAl6eOIl, June Il.-(H'-tTank
A. Theis, wheat marketing and pro-
cessing chief under the farm act, has
reached a tentative basis for agree
ment with millers in applying maxi
mum processing taxes of about 30
cents a bushel which Secretary WAL
lace will order effective july Is ia
finance a wheat acreage reduction
program.
When the tax goes into effect,
floor stocks held by millers will be
subject to the processing tax, but as
the wheat will have lost its identity
1T will be necessary to establish
per barrel rate on flour.
An arbitrary conversion factor has
been tentatively agreed upon, as
bushels of wheat for standard bar
rel of flour of 1876 pounds. II the
processing tax as finally established
is 30 cents bushel, the tax on floor
stocks of flour will amount to Sl.38
per barrel.
Representatives of some mills urged
that the tax be levied throughout on
basis of barrels of flour rather than
bushels of wheat, but this proposal
has been definitely rejected.
Refunds for Export
In all instances the tax will be COL
lected in full at the time OF process
ing. If the flour is later exported, re-
funds of the tax will be made.
Members of the Millers National
Federation were to meet at Chicago
late Wednesday to discuss applica-
ton of the tax which will be COL
lected by the internal revenue de-
partment.
1t is estimated the tax on 100
pounds Of flour would amount to
about 2.34 times the amount Of tax
on one bushel of wheat.
This means that If the tax on wheat
Is finally fixed at 80 cents bushel, as
Wallace has estimated the tax on 100
pounds of flour would be about 70.2,
cents.
There is prospect Wallace will is-
sue his formal proclamation ordering
the tax into effect while he is on q
trip into the middle west next week.
Preparing to use the money from
the tax to finance acreage reduction.
Secretary Wallace has compiled fig
ures to show that North Dakota and
Kansas together produced more than
80 per cent of the average annual
output for the country during tho
five-year period from 1928 to 1882.
Average production for the period
was announced by the department
Wednesday after Wallace issued
formal proclamation of his intention
to pay benefits to farmers who agree
to reduce their acreage for harvest
in 1884 to comply with legal re-
quirements.
Later, the agriculture secretary will
proclaim the date when maximum
processing taxes will become effective,
announcing also the exact amount of
the tax. He expects to put the levy
into effect between July / and Is.
The amount Of the tax will be the
maximum difference between the
current average farm price for wheat
and the parity price. based on
pre-war averages.
May Use June Average
What period will be selected from
which to draw the figures for cur
rent prices has not been determined,
but the possibility appeared that the
June average figures might be used.
The averages of wheat production
over, the last five years will form the
basis upon which allotments will be
made.
The average production for the
nation during the five-year period
was 884,000,000 bushels annually.
Wallace later will announce the
amount of wheat he regards as nee
essary to meet domestic needs for
food. In recent years, about 500O0O,-
600 bushels have been required for
that purpose, most Of it being ground
into flour.
The department of agriculture said
North Dakota wheat production for
the last five years had been 100 per
cent Of spring types. Average acreage
for the period was 1888 900 acres.
Kansas was mostly all winter wheat.
OF the Kansas acreage for the five
years Of 1925 900 all except $4,000.
was winter wheat and production Of
spring there was estimated at less
than 100000 bushels compared with
total average annual production of
l69. 1T, 900 bushels.