Evening star., 1934-06-27
WAR ON A.A.A.LA|D
TO BIG BUSINESS
TugWelI Explains His "Con-
SerVatiSm" in Talk to
Iowa Bankers.
BY the Associated Press.


DES MONIES, June 27-Rexford
G. Tugwell accused certain big busi-
nesses today Of trying to wreck the
new deal program for social man.
agement" of agriculture.
Fresh from his Senate victory over
foes who called him radical, the I'm
dersecretary of Agriculture swung into
the farm belt in the vanguard of a
number of high officials who will ex-
pound RooSeveltian policies TO the
country before the Fall elections.
Emphasizing anew that he is a
conservative" the No l man of the
little cabinet" told the Iowa State
Bankers Association:
Il am willing to work for the con-
serving Of all those things in Amer
lea which l grew up TO love and
respect
This. I take it. does not preclude
willingness TO treat radically those
forces which are enemies Of the COM
mon good"
Arraigns Big Firms.
Some firms dealing in farm prod
ucts he hit as inimical to the A. A A.
He arraigned big Gamers. packers,
millers and milk distributors for their
opposition to the now famous lost
amendments" to the A. A. A
The Agriculture Administration
asked the last Congress TO pass
amendments described as clarifying
the licensing powers Of this recovery
unit. Opposition sprang up, de-
nouncing the move as an attempt 10
hand a cars power to Secretary
Wallace. and the Amendments died.
Tugwell said big professors fought
the legislation, although previously
some of them had urged the A. A. A.
to clamp down on small businesses
with the same licensing powers clari-
fed in the amendments. Some proc
essors he accused of sweating
farmers. wage-earners and consumers.
Move to Abandon A. A. A."
"The opposition to the proposed
amendments by the professors goes
deeper than appears on the surface"
Tugwell said 1t is a preliminary TO
an attempt to overthrow the Agricul-
tural Adjustment program at It's
foundation.
The next step will be a concerted
drive at the processing tax. "a tax
levied on professors to reimburse
farmers for curtailing production)
Already it is manifest in the subtle
propaganda which farmers are ex-
pected to swallow about the hog proc
eSSing tax.
Farmers are told that the tax is
too high: that if there were no tax
at all the price Of hogs would 60 up:
that the processing tax on hogs Is be-
ing paid by the farmers themselves.
AT the same time many OF the
packers complain to US that tney are
compelled to pay the tax, that they
can neither pass it on TO the consumer
nor back to the farmer.
And simultaneously. opponents OF
the new deal in the East. like Senator
Reed of Pennsylvania. tell the con-
sumers that the farmers OF the west
are being supported by processing
taxes paid by Eastern consumers.
1T is an attack on all fronts. but
each of the three contentious is IN
consistent with the other two"
Tugwen repudiated the idea OF blue
print planning, but advocated
purposeful evolution of society in
volving no rigid theoretical commit
ment to finished system.
y prefer to call this social manage
ment' rather than planning" he said
Social management. democratlcaIly
/ conceived. would involve the social or
! ganization of the processes of produc-
ton and distribution. taking advan-
/ tage of ordinary and useful motives
with reduced stress on the none
/ tary ones. which seems to me to have
/ been overemphasized) and existing
machinery and methods, to achieve
/ first a wider distribution and use OF
| goods. and later for this is likely to
| occupy our generation. whatever
/ further aims seem desirable"
Social Management.
The A. A. A. and the N. r. A. are
! instances Of social management, he
said. both being democratic yet COM
pulSory on recalcitrant minorities.
For the first time he said, we
have undertaken. with the earnest
I ness We use III OlIltI dlldIS, " dp-
| proach reform in our social relation
ships which may provide equality Of
| opportunity and higher levels Of liv-
| ing
/ In his attack on some processing
| concerns. Tugwell said:
1T is important to have in mind
that these big processing and distribut
| ing businesses are not. in fact, always
! controlled by the people who are really
! their owners. The large meat packers
1 and the big tobacco companies nicely
| illustrate this point.
Thousands and thousands of per-
sons have invested their hard-earned
| savings in the securities of those COM
| panies Those investors are the real
| owners"
Yet, he said the investors actually
have little voice and "a few men" run
| the companies and by no means
| necessarily for the best interests of
| the investors.
They use their power to sweat the
! farmers from whom they buy. the
wage earners who work for them. and
the consumers who buy their goods,
he said.