The Waterbury Democrat., 1934-01-02

on the bill of sale are penalizing the farmer and are tending to
 frustrate the declared policy of the agricultural adjustment act. There is absolutely no excuse for such practice and farmers should refuse
 to sell to any buyer who makes or
 proposes to make any such deduc- tions.
 "The open market price for live hogs is customarily established by
 the majority of persons who | slaughter hogs and who will pay the tax to the government. They | pay the full quoted price for the | live hog and in. addition pay the government the processing tax out
 of the proceeds from hog products. "Processors, therefore, who de- liberately deduct the tax from bids
 based on the regular market quo-
 tations really escape paying any tax
 at all. The sum they pay the gov-
 ernment is offset by the deduction
 they make in the price they pay | the sellers.
 Country buyers who deduct the
 tax from the price offered farmers
 and who then resell the live hogs | to another person or processor, simply are taking advantage of the
 farmer to realize a larger profit
 than is represented by the usual l differential between the local ship ping point and the main terminal
 market. This is because country buyers who do not slaughter hogs are not required to pay the pro- cessing tax.
 Names of hog purchasers fol- lowing this practice, together with full particulars on individual cases should be forwarded immediately to Dr A. G. Black, chief of the corn-hog section, agricultural ad- justment administration, Washing ton, D. c. The administration will use all powers under existing law to pevent fraudulent practices in connection with, the collection of processing taxes"
 A farmer is not required to pay the processing tax on hogs sold to country buyers. local processors and others for commercial slaugh- ter. The commercial processor of the hogs, however, must pay the tax, regardless of where and what manner the hogs were acquired.
 (This means that hogs purchased direct are subject to the tax when they are slaughtered.)
 The farmer is not required to pay the tax if he: CD slaughters hogs of his 0 nwraising for con- sumption by his own family, em- ployees or household; CD sells live hogs to another person for con- sumption by that person, and if the producer butchers the hogs for the purchaser; (3) has hogs of his own raising slaughtered by cessing plant, all of the parts of which are for consumption by his own family, employees or house. hold: (4) slaughters hogs not of his own raising for consumption by his family, but not by his em- ployes or household; (5) has hogs not of his own raising slaughtered for him by a local butcher or pro- cessing establishment for con- sumption by his own family; or (6) sells live hogs to serum plants.
 A farmer is required to pay the processing tax on hogs, however, if he CD sells live hogs to another person, any part of the products of which are for sale, or are sold by that person, and if the producer butchers the hogs for the purchas- CT; CD daughters hogs of his own raising and sells the products to other persons: (3) slaughters hogs not of his own raising for sale to others, in whole or in part; (4) trades i've hogs for merchandise or services; (5) trades products from home-saughtered hogs; or
 t6) slaughters hogs of his own raising for sale in whole or in part at roadside stands.