Evening star., 1933-01-04
FARM BILL GIVEN
PRIVILEGED STATUS.
House Rules Committee Votes
to Give Right of Way to
Relief Plan.

By the Associated Press.
The House Rules Committee today
legged legislative status to the enler-
gency farm relief bill designed to set
minimum prices on major agricultural
commodities.
The bill, reported yesterday by o IA
to-8 vote of the Agricultural Committee,
viii be brought up for consideration to-
morrow. The rule will provide eight
hours Of general debate before reading
the bill for amendments.
The Rules Committee acted after
brief statements by Chairman Jones Of
the Agricultural Committee. sponsor Of
the domestic allotment bill. and Repre-
sentative Hsugen, Republican, of Iowa,
ranEing minority member of the COM
mittee.
The length of time for debate is ex-
pected to prevent final action this week.
Hold Bill Workable.
Haugen said he believed ''the bill in
general is workable and would be Of
benefit"
1T may not do everything everybody
claims for it, but we believe 1t Is worth
trying out" said Haugen, who was
long an advocate of the equalization fee
plan. The main thought was to re-
deem the platform pledges of both
part e. by placing agriculture OH a
parity with indussry," he added.
repre ent1tivss Kerr and Warren,
North Carolina Democrats, appeared in
behalf of including peanuts In the bills
prov isions. Jones said it was felt the
bill would not work well on peanuts
because 1t is not an export crop.
Members of the Rules Committee
made 1t clear that 1t would be in order
to propose the addition or elimination
of any commodities when the amend
ment stage is reached during House
consideration Of the bill
Jones Explains Terms.
The bill closely approximates the do
mestic allotment plan drafted by farm
leaders at pre-holiday meeting at
tended by Henry Morgenthau, jr-, ad-
visor Of Gov. Roosevelt Its sponsors
believe 1t to embody the ideas of the
PreSident-elect.
Chairman Jones Of the Agriculture
Committee explained that under its
terms. amy time wheat, cotton and
tobacco are below the p-e-war basis an
adjustment charge Is to be levied on
the processing of the commodity Suffi-
cient to bring the price up to pre-war
levels on that portion of the community
which goes into domestic consumption -
THE premiums will be paid to pro-
ducers who comply with the require
ments," Jones said. The plan is put
into effect gradually as to hogs. 1t
provides that only those producers who
voluntarily reduce their acreage or pro-
duction shall be beneficiaries Of the
premiums,
Only two Democrats-Nelson Of Mis-
souri, and Beam Of Illtnois-voted
against the bill in committee Three
Republicans-Haugen of Iowa. Ket-
cham OF Michigan and Hope of Kan
Sas - supported 1t. Representative
Clarke, Republican, of New York, will
file a minority report against the bill.
Attacked by Schafer.
Already 1T has been attacked on the
floor by Representative Schafer, Re-
publican, Wisconsin, as q "monstrous
supersales tax" and it was evident this
would continue as q major argument
against its passage.
Gov. Roosevelt was represented as
being horrified at the suggestion of a
manufacturers sales tax" Schafer told
the House. This Is a sales tax that
will put an additional tax burden of
$1,000 600 900 year on the American
people"
The Agriculture Committee agreed to
recommend an amendment to the bill
adding rice to the four commodities
now included. 1t agreed also to elm
mate the proposed provision to abolish
the Farm Boards stabilization powers
1t was thought best not to compli-
cate this bill by the Farm Board ques-
ton, but to handle that in a separate
Dill after we have hearings" Jones
said.
Measure Is Experiment.
In a statement. Jones stressed the
experimental nature of the measure.
1T Is intended as an emergency
measure" he said. In this way the
plan can be tested. Temporarily. at
least, 1t will tend to give a better price
to the principal products OF the farm.
The measure Is to be effective for
one year and may by proclamation be
continued for an additional year.
1t Is recognized as vitality necessary
Tor the permanent program that there
be refinanctng of farm mortgages SO
as to save the farm homes In America !;
values in the interest OF a market for
our products, readjustment OF the
proportion OF taxes, especially of the
State and local nature that are now
burdening the farmer and the rancher:
a readjustment OF our currency on e
sound basis in such way that it will
be true measure of values; and that
there be very real reduction In the ex-
pense of Government-natioaa State
and local
As long range program We must
have return to simple time -honored
principles which have proved them
selves worthy. But this will take time
and until the general program is work.
ed out temporary act that will be i'm
nediately effective IL necessary in the
interests OF the entire country.
Would Increase Tariffs.
There can be no National recovery
SO lcng as We have 10-cent corn, s.
cent cotton and 3O-cent wheat"
The bill increases all tariffs by the
amount OF the processing tax and
!eyies cents a pound on imports of
short-staple cotton and jute.
The bill establishes fair exchange
value" for wheat, cotton and tobacco
defining it as the price which shall bear
the same ratio to other commodity
prices as the price received for these
farm crops did from 1909 to 1914.
By deducting the actual market price
from the value, the Secretary OF Agri-
culture would arrive at fair exchangs
allowance" This allowance would bs
the rate OF the tax levied on processing
and after administrative costs were de-
Quoted. would be the mount of the
premium paid to the producer.
Jones estimated the present fair ex-
change valve" Of wheat at 80 cents q
bushel and OF cotton at IL cents q
pound. The value of tobacco woulo
vary for the different types.