Evening star., 1933-10-20
CONSUMERS TO PAY
BILLION IN LENES
Farm Adjustment Officials
Figure on Collecting Sum
in Two Years.
BY the Associated Press.

BY the Associated Press
American consumers will be called on
to shoulder tax load of more than one
billion dollars to finance the admins
tration's program for a gigantic retreat
in farm production.
Policies Of farm adjustment officials
hinge upon collecting such a sum dur
ing period of slightly more than two
years, counting from last July 9, when
processing tax No. l was levied on
wheat, until November 4, 1885, when
tne hog and corn processing levies are
scheduled to terminate.
Most of the proceeds, which NAV be
greatly augmented by compensatory
t. xes on competing products, are sched-
uled to find their way into the pocket
books OF American farmers, reputedly
thin and thinning for the last decade.
The principal consideration will be
that farmers forego planting as much
as in the past. The first to see the
color OF the Governments benefit
checks-cotton farmers-got them for
blowing up from 25 to so per cent Of
their crop.
VIII Remove Surpluses.
A substantial portion of the consum-
erS contribution will go to removing
surpluses, particularly in joint purchases
oy the Farm and Relief Administration
OF surplus crops for the needy.
Todays status of processing taxes
levieS: '
A 348,cO0,000 processing tax on hogs
ana one with estimated receipts of from
$50 900, 900 to S70,000,0OO on corn.
which Secretary Wallace has ordered
into effect on November for a two
year period
The 30-cent-a-bushel tax on wheat
which went into effect on July Q. with
receipts forecast at S136, 900 900 for one
year. The rate soon may be boosted.
rarm ofncials are committed definitely
TO continuation of this tax after July
next year, with contracts with wheat
growers covering 1885 paintings.
Cotton-The AZ cent per pound tax
levied since August l is scheduled to
yield sl50000,000. The administration
Is committed to its continuance for an
other year to finance its new acreage
control program. so it will yield $780,
100000 in all unless rates are changed
radically.
Tar to Yield $4,000, 900.
Tobacco-Taxes on various types of
tobacco recently ordered into effect are
scheduled to yield at least $40 900 600
this year and another $40, 1000 900 next
year. with the administration again
committed in its grower contracts to a
tWo-year program. which must depend,
on the tax for financing.
Milk and milk products-The Farm
administration contemplates a levy of
l cent per pound on butterfat, to yield
up to S30o00,000 during each of two
years. 1t is already spending some of
the money in advance to buy butter for
relief distribution.
Rice is one more farm commodity
listed in the farm act as basic" bu.
here the production control-price
boosting program is being handled
through marketing agreements and no
tax is contemplated
But while processing taxes cannot be
levied on other products, many are sub
Ject to processing taxes in cases where
they compete with basic commodities.
Wallace Calls Hearings.
More than two score products already
lace these compensatory levies, but
none has been ordered into effect and
prospective income from them remains
undetermined. Secretary Wallace yes
terday called hearings on the advisa-
ulllty OF IeVylng tnem on products
vieing with corn and pork products for
the consumers purse.
The pork tax hearing will be held
October 30 and compensatory levies
on cattle, sheep, fish, oils, poultry and
eggs will be considered. There is a
strong prospect of a levy on cattle
with program under consideration
calling for its expenditure to cut down
the surplus of beef animals in an effort
to bolster low cattle prices. There is
less likelihood of a tax on sheep.
Sugar is listed as a competing prod
uct OF corn whose rivals for the favor
of housewives will be considered Novem-
Der 2. Wallace already has suggested
the possibility of levy of one-tenth
OF cent pound on cane and beef
sugar to finance the payment of
bonuses to domestic producers. He
estimates this levy would produce sl2,-
100000.
Compensatory levies on jute, silk.
rayon, linen and some types of paper.
competing with cotton, and oleo-
margarine, competing with butter. are
others already considered at hearings.