Evening star., 1933-06-25
FIX SCENT LEVY
ON LEAF TOBACCO
Processing Program to Be
Placed in Effect to FL
nance Acreage Cut.

Continued From First Page)
| to put into immediate application the
| methods which Congress has prescribed
| to improve this situation.
IT have every confidence that the
cotton producer will face the facts and
cooperate fully in the reasonable and
| practical plan that is proposed
Two Payments Provided.
In connection with the tobacco plan
for agreeing to take out OF produc-
tion so per cent of his base acreage,
each cigar filler and binder tobacco
grower will receive, first cash payment
for each acre of his reduction, plus a
second payment of 40 per cent OF MS
| average returns per acre on all tobacco
! harvested by him in 1881.
Administrators explained that De-
cause of the variations in yleio ana
quality of tobacco produced in the Varl-
Gus areas a special effort has peen
made to make the plan equitable as be-
tween growers In all areas and that
special provisions would cover each OF
them.
On this basis. Wisconsin farmers VINO
agree to the program will receive as
the first payment $40 for each acre oI
the so per cent reduction from thelr
base acreage.
The first payment to growers in Ohio
and Indiana districts will be SD an
acre. and the first to farmers IN the
Pennsylvania New York districts S24 an
acre. . >,o,,
England will be SAT Tor eacn acre oI
the SO per cent reduction from their
base acreage. :,
In all cases the first payments are 10
be made as soon as possible and not
later than September l.
Based on Fair Exchange" Value.
The rate of payment for the different
areas will represent about ~ per cehC
of the fair exchange value OF tne
production per acre.
The fair exchange value OF tobacco
under the farm act Is a price for their
current output which bears the saHe
ratio to the average farm prices OF
tobacco from 1919 to 1928 as the cost
of living on farms now bears 10 tne
cost of living during the l9lS-l9Zo
neriod In the case of other farm prod
ilcts the base period is the pre-War
era, 1909 to 1914. Al
The second payment to growers, 4o
per cent of the growers average returns
per acre of tobacco harvested In 1899.
will be paid within 60 days after PROOF
as to the returns per acre and the lul-
flllment of the terms OF the agreement
to reduce acreage.
In no event will the second payment
be less than 60 per cent OF the nrSt
payment. Ill, -
Georgia and Florida growers Will be
offered payments for reducing the
amount of their crop harvested this
year. Payments will be made to those
farmers there who cooperate by leaving
unharyested an average OF four Stalk
leaves of each tobacco plant grown.
In addition, the farmer must agree
TO market not more than an average OF
$50 pounds per acre harvested OF TINS
wears crcp. For fulfilling these condl-
tions the growers will be paid $50 per
acre.
Wallace Given Option.
PAYMENTS to Georgia and Florida
growers will be made in two parts, the
first $50 an acre after it has been de-
termined that the specified portion OF
the crop has been left unharvested.
This will be made between August l and
October /.
The second payment will be $50 an
acre to be made within go days after
proof that the grower did not market
more than $50 pounds OF this year
crop.
The plan also provides that an option
be given Secretary of Agriculture wal
lace dealing with the planting and
harvesting of tobacco in 1884 and 1888.
This provides that If the supply and
demand situation is still unsatisfactory
on December |, next, for Georgia ana
Florida shade tobacco or unsatisfactory
for cigar filler and binder tobacco on
March /, 1884, Wallace may exercise
this opion and require limitation OF next
years acreage and similarly for 1888
acreage.
In the case Of cigar filler and binder
tobaccos, If this option Is exercised the
1884 payments would be on the same
basis as those this year. The rates per
acre would not be less than tWo-th1rdS
Of those this year. Administrators said
plans for reducing stocks OF those farm
ers who accept the plan to reduce pro-
duction are being considered.
The processing tax will be collected
from the manufacturer using cigar-leat
tobacco and will apply to imported as
we'll as domestic cigar types. The pres
ent prices of cigar leaf tobacco are
D CclllS IllC loAl ChShoh6N
value and a tax at this rate may be
levied. the date to be determined finally
next week.
Change in Cotton Plan.
An important change in the cotton plan
was announced by Gully A. Cobb of
Atlanta, the cotton production chief,
who left for the South to direct per-
sonally the campaign to be carried
on through extension workers under
which every cotton farmer is to be in
terVieWed.
This change provides that farmers
will be permitted to offer to destroy
up to SO per cent of the area they have
planted to cotton instead of a maxium
of 40 per cent. previously announced.
The minimum each must offer in
order to become eligible to benefit pay
ments remains the same. 25 per cent.
Thousands of contract forms were
shipped to extension directors in the
cotton States.
Administrators expect that about
Sl00 00O 900 will be paid to farmers
IN rentals if the response to the cam
paign assures Wallace that large
area will be taken out Of production.
The Sl00,000,000 will be advanced
| from the Treasury and payments made
to farmers after action on the offers
has been taken, the amount to be re-
turned to the Treasury later from
proceeds Of the processing tax on cot
ton which will go into effect ON Aug
ust l.
In addition the administrators are
using about S54 100000 from 5000 900,
600 in appropriations provided by Con-
gress to get the program under way.
With this they are obtaining title to
about 100000 bales of cotton on which
| the Government has made loans and
! on which the options will be offered,
W. c. T. U. Meets Thursday.
| COLESVILLE, Md, June "a (Spe-
| c4aD The Women's Christian Tenn
| perance Union will meet in the W. c.
T u Hall here Thursday at 2 nm