Evening star., 1935-07-18
Senator Denounces Steps
to Close Courts to Proc
essing Tax Recovery.
GOVERNMENT REFUSES
TO STAND BY OPINION
Cummings Declares He Will Not
Recognize Correctness of De.
cision Rendered in Boston.

n. n. W tiic oupi ChiC SouAt 40 oooA'
as possible" Senator Borah, Repub-
lican, of Idaho. was denOuncing ad.
ministration steps to close the courts
to processing tax recovery suits.
Borah opened the debate on this
controversial section of the A. A. A
amendments in the Senate with the
claim this recovery denial would bene-
fit big companies which have passed
the tax on to consumers but injure
small companies which have been
unable to do so.
Taxes to Be Collected.
Cummings meanwhile was telling
reporters the adverse decision of the
First Circuit Court of Appeals in Bos-
ton on the Hoosac Mills A. "A. case
did not prevent future collection of
processing taxes under the adjustment
program except in that particular case.
He added:
THE Government does not acquiesce
in the correctness of the court attack
ing constitutionality of the A. A. A"
Where there has been q wrong
perpetrated, and property taken.
Borah asserted on the Senate floor,
Il do not believe you can deny a man
the right to 60 into court.
1T Is true that some of the taxes
have been passed on to the consumer
by the large processing companies
but the small companies have been
unable In many instances to do Sc
and by reason of that have suffered.
"Thus We have a bill benefitting
the companies who can pass the tax
on, but denying the small companies
the right to recovery"
He declared denial Of the right
to sue the sovereign, has been en-
bodied In the law ever the objection
of some of the ablest members Of our
court"
1T is my contention" he declared
that the right to sue should never
be denied except in the rarest cases.
Borah attacked what he termed the
fiction" that you can't sue the
sovereign"
Senator Robinson, the Democratic
leader. interrupted to defend the
administration proposal.
Why does the Senator refer to
this fundamental principle as q fic-
tion?" Robinson asked. Does he not
recognize that from the beginning
Of the Government that principle has
been adhered to?"
1T originated in the past with the
theory that the King can do no
wrong" Borah retorted. England
never had any law supporting it. 1t
rests upon what claim is a pure fic-
ton that the King can do no wrong.
Not Supported By Constitution.
There is not in the Constitution a
line or letter indicating exemption of
the Government from suits by citi-
zenS."
do you mean there is no limit at all
Robinson asked.
IF had my way that is what I
would contend" Borah replied. But
I realize am closed to that. I cannot
conceive why when a citizen is
wronged under a free government he
shouldn't have right to be heard.
1t is fiction, falsehood, libel upon
free government"
Meanwhile, in q statement support
ing his proposal to repeal the recipro-
cal tariff law by a rider to the A. A. A.
legislation. Senator McCarran, Demo-
crat of Nevada, said that the new
trade agreement with Soviet Russia
cannot do other than discourage in
dustry in this country
1T is inconceivable, McCarran
said, that while the energy of the
American public and Congress is bent
toward the upbuilding of commercial
life and industrial life in this country
the State Department should enter
into a reciprocal trade agreement to
bring commodities and products from
Russia, with all its attendant deplor-
able labor conditions, into competition
with American industry and American
products"
Suits to Be Opposed.
Attorney General Cummings as
serted the Government will oppose
the wave of suits filed
throughout the country by tax
payers in an attempt to prevent coll
lection Of processing and floor taxes
levied to stabilize agricultural prices
and to afford relief for farmers.
These injunction cases." Cum
mings explained, raise an additional
and different question from those
involved in the Hoosac Mills case.
"A statute of long standing pro-
vides that no injunction shall be
granted to restrain the collection Of
any tax. This statute has been here
tofore adhered to by the courts
except In the most extraordinary and
exceptional circumstances.
1T rests with the court In each case
to determine whether 1t will adhere
to or depart from the statute. For the
reasons stated, the Government must
oppose all efforts to restrain the coll
lection of processing taxes unless and
until the Supreme Court directs other
wise"
The Senate, by vote of A to Il,
yesterday upset Its previous 40-to-38
Of . price fixing provision.
This would have permitted the Secre-
tary Of Agriculture. with the approval
of half Of the handlers OF any com-
modify, to fix the resale price.
After the vote. Chester c. Davis,
A. A.A. administrator. declared:
''The Senate undoubtedly has over-
estimated the Importance OF those
provisions. Try are not
an essential feature Of Ge amend
ments BY any means.