, 1935-07-26
WASHINGTON
BY RAY TUCKER

BY RAY TUCKER
Observation-Disclosures ecoro-
mists have finished a private study
OF the effect Of the senate amend
ment barring suits for recovery OF
processing taxes to corporations
which passed them on to producers
or consumers.
Preliminary figures are confus-
ing. But they indicate that cotton
and wheat professors unloaded a
large portion Of the tax on the
farmers or buyers Of the finished
product. Tobacco p~rocessct ~
sorbed most Of the tax. which
amounted to only 3 cents Oh q
package OF cigarettes. Hog packers
also made the farmers and con-
sumner pay, but there was a Limit
for them. When prices got too high
people turned TO other foods. The
demand for pork Is more elastic
than the demand for such neces-
sites as clothing and bread.
The evidence Is more clear on
cotton. The price on overalls jump
ed Al cents after the tax, although
that was only SO cents. IL in
creased 81 cents en- sheets, a.
though the tax was only 9.6 cents.
AAA-ers are happy at their finr,
for textile professors were the most
v~ociferOus in demanding relief from
the processing levy.
Problems-The government would
have O tough time proving It's case
against the professors, however.
Many other factors viii be listed
by eminent legal counsel as res
ponsible for higher priceS-NRA
wages and hours. shortage OF pro-
ducts resulting from crop control,
currency manipulation, etc. In tact,
the only people who may profit by
the amendment are the lawyers.
Here is one way to figure II out:
In 1894 total retail sales amounted
to about S2s, 000, 900 1000. The in
crease in prices TO consumers re-
sultinc from the processing tax was
approximately $3.50. 600, 900, and
perhaps $50. 1000 was extracted
from the farmers. The AAA collect
ed $500, O0O, 600 In processing levies.
On this basis the government would
keep its hands and about one
third OF the amount Is collected.
But should the processing tax De
ruled unconstitutional, its oppon-
ents would benefit only slightly.
The most discussed alternative is
the domestic allotment plan-the
tWo-price system-and that would
eventually impose impossible taxes
on everybody.
RE-DFAL-Rex Tugwell's plan for
remaking rural American was &C
OF the New Deals brightest dreams.
"A land and a people were 70 be
taught how TO live together pro-
fitably and abundantly. But for
the present it has d~egenerated into
a system Of rural and suburban
relief.
Harry Hopkins quietly copied
S50.n0O.O 900 which Rex expected 70
use III the purchase OF submargln-
al lands, levying only S25,OOO,OOo
for making natural resources be-
have. 1t won't 20 far In planting
trees. Mrs R~OOSevelt'S subsistence
homesteads have blown up because
industry refused to relocate 10 suit
New Deal plans. Rex will "liqui-
date" about forty current and
're-exnmine" 1000 now in the
blueprint stage. That is, he will
shut down on them.
Most Of The money viii be spent
in rehabilitating farmers and sub
urbanites through federal loans.
Hard-up folks will be given money
10 buy cows. horses and tractors.
10 repair homes and barns-and
start anew.
VocaI-The administration has
adopted the deliberate policy OF
ignoring its critics. II has refused
10 supply speakers for several
rOund-table discussions OF national
affairs. II usually explains that
cahineteers and senator's are too
busy.
II has assumed this attitude TO-
ward the American Liberty League
q severely than toward other
examinations. The Leaguers, now
avowedly anti Roosevelt, have fire.
urfntly tried to engage anybody
from the president down In a rough
snd-tumble. But nary an accept
ance do they get.
The Leagues unceaSing attacks
have fired resentment, however.
DEPARTMENTAL publicists have pre-
pared a list OF League members and
contributors giving their corporate
affiliations, including those Of ex-
Chairman Raskob, ex : candidates
smith and Davis. 1t makes ricn
reading. The last computation esti-
mates that corporate assets rep
X sented by League members total
more than $37. 100000. 900. and this
money Is talking.
Mfstake-A few ubiquitous pho
tographers in the West have caused
embarrassment for a score OF Jun
ketinR statesmen and the leaders
Who let them quit their congress