Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-07-28
A.A. A. HUNTS CASH.
TO PAY BENEFITS
Resort to Work Relief
Money on Sales Tax Drive
Is Considered.


Resort to use of work-relief funds
or an effort to put through Federal
retail sales tax is under consideration
by A. A. A. officials as a source OF
money to continue crop-control ben
eft payments if the Supreme Court
outlaws processing taxes in the Fall.
It is conceded the sales tax move
would face perhaps insurmountable
opposition in Congress.
At the same. time the chiefs OF the
Agricultural Adjustment Administra-
ton are confident the highest tri-
bunal will uphold the constitution
atty of the processing taxes If pend
ing amendments to the basic act are
adopted.
The amendments direct, instead of
authorize, the Secretary of Agrlcul-
ture to limit production in the light
of demand. make benefit payments
and establish the processing tax rate.
One Contention Eliminated.
Enactment of this provision would
center the court battle on the ques-
ton of the extent of the Federal
authority to control commerce and
eliminate the contention that the ad-
justment act constitutes an illegal
delegation of discretionary power by
Congress to branch of the executive,
But whether or not the Supreme
Court upholds the levy, benefit pay
ments to some 100000 farmers all
over the country must continue.
These farmers signed contracts to
curtail production in return for Gov
eminent payments; the curtailment
has been effected already by leaving
failow acres that might have been
planted, and it is incumbent upon
the Government to fulfill its part of
the contract
Benefit payments to farmers from
July l, 1884, to June l, 1885, amounted
to $685., 547. 698, divided as follows:
Cotton. sl02,5o3,017; wheat, ss7,-
500. 986; tobacco. $23, 784, 1853; corn
hogs, 1926, 435,8Ol; sugar, sl5,320,l23.
Treasury Aids Somewhat.
Some of this money has had to
come from the Treasury. The adjust
ment program has not proved entirely
self-supporting from processing taxes.
But in order to establish source
of supply Of the greater part of the
funds, it seems likely part of the $4,-
S00,OOo.O00 Of last May will be de-
voted to adjustment benefit payments
If processing taxes are judged illegal.
Use of this money was advocated early
this Spring. when New England Re-
publicans in Congress and some South
ern Democrats from cotton-milling dis
tricts urged abolition of the taxes as
too heavy a drain on industry.
Total tax collections from process
sors from the original date Of i'm
position through May 81 of this year
total 1856, 694, 982.4o. This sum was
divided as follows between professors
Of these commodities:
Wheat. S234019,262 90; cotton,
s236,624912.90; paper ard jute. s12,-
31O,764.27; tobacco. s48 ,469, 1850;
field corn, $10,860, 650.5l; hogs, s254,-
315,58689; sugar, SOL, 500, sol IA;
peanuts, So. 367, 4s021; rice. $17.719.80;
cotton ginning tax, 947,212.15; to-
bacco producers sales tax. $3,229.-
243.25, and unclassified, s1,o32 ,523 81.
Industrial Changes May Come.
Although it is pointed out that the
processing tax is in effect sales tax.
it has not been wholly borne by the
consumer, and a retail sales tax such
as some A. A. A leaders are con-
sidering to provide a money pool for
benefit payments would pu. the burden
wholly on the purchaser.
If the Supreme Court decides either
in the Hoosac case, involving a New
England cotton nill, CT the Larrabee
Milling Co., Missouri wheat process
sor. that the collection of processing
taxes not for revenue but for repay
ment to farmers in the form of re-
wards for limiting production is I'M
constitutional, it is expected an eco
nomic readjustment in industry will
follow at once.
The -four market will broaden little.
for it is stable despite price, but the
cotton market is expected to widen
greatly with cheapened price. Per-
haps the invasion of japanese bleached
goods, which can now undersell the
domestic product by as much as 4
cents square yard, will be ended,
according to textile experts.