The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1933-10-20

processing tax of 50 cents a
ton
bushel-this is termed "flour boot
Logging" by the Agricultural Ad-
justment administration.
By thus underselling the big mill
ers and merchants, farmers are
getti~g some cash markets and
u wing for themselves and for the
worker-consumers the profit which
goes to elevators, millers, merch-
ants, and railroads.
"A bird in the hand is worth
two in the bush" reasons the bank
rupt and destitute farmer, which
aPaln demonstp' ties the old adage:
"The best laid ~plars Of mice and
men ga aft aglee."
Loop Hole in Law
The Allotment Plan provides that
the Wheat farmer need not pay
the processing tax on flour for
his own use mace from the grain
grown on his own farm. In the
provision of the law exempting the
farmer from paying the tax on
his wheat production ground for
his own use, there is y loop hole,
which the farmer gets through,
which requires an Interpretation of
just what "for his own use" means.
1t Is very hard to keep track of
how much wheat such a farmer
raises, how much he grinds, and
how much ne sells. Farmers can
cooperate with each other and set
up small mills to grind their own
grain and can grind and sell the
grain of their reighbors. To check
this will rquire IN army of stool
pigeons and enforcers, all Of whom
must be paid out of the returns
of the processing tax, reducing by
just that much the amount avail
able for allotment borus.
While the Getting's Good
Many farmers have very little
faith in ever getting much in the
way of bonus out of the process
ing tax after the admins tration
has been paid. Some farmers did
not sign the allotment contnacts
and these are taking advantage Of
getting theirs by selling flour un-
der the flour that carries a $1.3S
per barrel processing tax plus the
other costs nnd profits.
This so-called bootlegging Of
flour by the farmers is Of serious
concern to the milling and baking
trust, who after paying tax cannot
meet the competition of the farm.
ers nor the competition of small
bakers who use "bootleg flour
Most of such flour will be solo
direct to consumers and this viii
cut down the S,les of the merch.
ants. The raildrrds will lose
both the business Of hauli~g the
wheat to the big mill and the
flour back. The elevators will lose
their profits the GRAIN sneculatort
thnir nrofits. ard the cornrnissior
Non their COMMISSIONS IN III III.
"rain that Is rrade into flour anf
enld IN this wav.
Big Scare Raised
This method of marketing whea
IS causing uneasiness among fed
eral officials. In order to justif,
'ln energetic campaign agains
these farmers who dare sell whea
! without giving the Flour Trust it
profit, the Department of Agricul
ture is raising big scare, trying
to create the impression that thi
flour bootlegging" is going tc
ruin the wheat farmers ard flou
mills. Thousands of farmers, sa
federal authorities, are buying
small mills which can be hal
: cheaply, and are setting them u,
t on their farms.
; The farm adjustment adminl
stration is vitality concerned be-
; cause the proceeds from the pro
: cesslng tax are necessary to pro
vide the money to pay the when
, farmers who have signed contract
, to reduce their acreage by Is pc
cent next year.
Figures Not Released
No figures are available, off
Gals said, on the extent to whic
wheat bootlegging has affected re
ceipts from the processing levy.
The receipts from the tax in 2
days in July were only 1884, 900.
The amount of wheat ground /
July and August this year, how
ever, was only 1902, 671 bushel
as compared to 1889, 500 in tn
comparative period in 1882.
The processing tax on wheat
I expected to produce approximate
SlS5,OOO'OOO. Any substantial re
duction in that figure would mea
] that the treasury would have to b
> drawn upon to pay for the whea
reduction campaiqn.