Evening star., 1935-04-11
Processing Levy Declared
Crucifying Mills and Re.
lief Cash Asked.
HIGHER BARRIER SOUGHT
ON JAPANESE MATERIAL
Congress Bloc Backs Plan to Pay
Farmers Out of Fund-Bitter
Fight Looms.
BY the Associated Press.

BY the Associa ted Press.
A new and bitter conflict over the
ccttoI. processing tax was in the max
ing today. After President Roosevelt
nad made plain that he had no in
tention of removing the tax by pay
ing farmers out of the S4.880 900.
900 relief fund, the cotton textile in
dustry and its congressional supporters
rallied for the fight against what one
spokesman termed this crucifying
levy"
The cotton manufacturers. backed
by a sizable bloc in Congress have
vage0 a campaign toward two ma jor
obiectives-removal of the processing
tax and imposition of quotas or an
embargo to Shut out increasing i'm
ports OF lOW-coSt japanese cloth.
Tho manufacturers had hopes that
The processing tax might be lifted
through the George amendment to the
work relief bill. This empowered the
President. if he wished, TO use relief
money TO pay farmers for cutting
acreage AT present the processing
lax. which critics contend places Amer
jcan cotton goods at a disadvantage
oy raising prices, is used for this pur-
pose.
Fight "OnIy Begun"
The Presidents stand spurred the
cotton textile group-at least the
northern Section-to belligerency.
Lincoln Baylies. spokesman for the
Policy Committee of the Northern
mills. asserted that the industry has
only begun to fight"
Senator Walsh, Democrat. of MaSsa-
chusetts. commented that Well have
to carry on and continue our fight, 3"
while Representative Martin. Repub-
lican, of Massachusetts. remarked that
we're not discouraged at losing the
opening skirmish." and Representa-
tive Rogers, Republican, of Massachu-
setts, said grimly that I'VE still have
a few tricks up our sleeves"
The Presidents statement brought
to fever heat an already controversial
situation. The cotton industry, sup
ported vigorously by members of Con-
gress from mill communities. has con-
tended that the tax. plus increased
labor costs under the N. r. A.. and
imports from Japan, was threatening
destruction of the industry.
Wage Fight Is Complication.
Complicating the situation was the
North-South controversy over present
wage differentials now favoring the
South. After some hesitation on the
question of whether to proceed at once
with the wage equalization program,
the Northern group apparently had de-
cided today to press firmly along this
front. also, with Southern opposition
assured
Asserting yesterday that the Presi-
dents statement would in no way
affect the efforts of the industry to
eliminate this crucifying tax" Bay
lies amplified his position today with
the statement that:
Since the publication of the Presi-
dents statement in regard to the
processing tax many mills from all
parts of New England have commune
Gated with me expressing absolute
bewiiderment at this sudden turn.
"A meeting of the Policy Committee.
all Northern mills, has
been called in Boston on Monday to
consider what immediate action
should be recommended to mills of
that section in view of this latest and
most unexpected blow"
So aroused were the Northern mill
men that they we're reported con-
a strike against the tax. and
this was expected to be one OF the
chief questions to be discussed at
Mondays parley.