The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-06-29
FOOD INDUSTRY
IN REVOLT OVER
PROCESS TAXES
Unprecedented Number OF
Injunction Suits Are
Filed.

c---azr-. i1ss 6~ UHrsa Prsee
CHICAGO. June . "A revolt q
inc food industry against the Ad-
m.nisfraflon s. processing taxes
reached the proportions % concerted
u7r TODAY Led bv the largest mill
interests in the country. an unpre-
reden-ed number 81 injunction suits.
aimed ar tying up the tax revenues
r-h which the government pays
farm benefits we're understood 70 BE-
.r the making
IN Minneapolis General Mills.
Iur largest milling organization 10
the world announced b. would cnal-
lerge the government S right 70 col
Ie-r taxes on the processing ~ grain
THE challenges will be made IN
courts DOB various parts 70 the coun-
trr one subsidiary already has
f.et suf and an unaun0unced num-
Dor 10 others viii follow Immediately.
The announcement gave impetus
fo "a revolt through court action
against the Agricultural Adjustment
Administration the New Deals farm
and program that began soon after
The Supreme Court held the ERA
unconstitutional
Iniunctions Are Granted
Many LAWYERS have argued thar
AAA is equally Illegal IniunctiOns
aIresdv have been granted tying Up
payment Of taxes. IN several sections.
The packing industry. % was re-
ported In business circles. also
planned widespread campaign
against The processing tax on meat
benefits n stock raiserS A num-
Dor OF scattered iniuncu0ns against
this phase Of the processing tax
structure have been asked and
granted in the last week
Iu washington AAA officials pro-
tossed 90 be- unwOrucd By the epl-
demic Of injunction suits. which. Il
m.f0rmlH as successful as those al
ready heard. would seriously slow
down The flow 81 tax revenue which
De- immediately dispensed 10 growers
OF grain. tobacco. sugar. livestock
and other commodities.
Treasury Funds sufficient
The Treasury has sufficient funds
M prevent legal actions from ham
nounE the current farm program,
they said Congress also has au-
thouzcd payment OF benefits from
appropriated funds until the pro-
re,ang taxes were sufficient 10 meet
demands. They believed this au-
i.s0uEuon would permit continued
payments should the professors sue
coed in tvIng mp the tax payments
through court inlunCtI0nS.
First OF the General Mills sub
eidi7ricS 10 apply for an Injunction
was the Washburn CROSBY Co.
which filed ITS suits in the Federal
District Court az Buffalo.
Federal judge John knight al
ready he'd granted miunctiOns there
restraining the government from
collecting S36 557 IN processing taxes
from the Federal Mills. Inc. OF
Lockp0rt. n. Y. and from collect
inc hog processing taxes from a
group of meat packers.
Base Hopes on MIRA Ruling
no exact records on iniunctionS
asked and granted in various parts
of the country in the last 10 days
were available hut they we're known
% be more than u and increasing. I
Legal experts advising ,he proc
csSerS are said 20 believe the proc
eS-InE taxes unconstitutional be-
cause they involve a delegation of
legislative power by Congress 10
tho Secretary Of Agriculture. The
Supreme Court IN its NRA decision .
held that a delegation Of legislative
power wGs unconstitutional
Business authorities underStOOd
that some professors we're making
monthly payments Of the tax de-
spite belief that It is unconStitu-
u0naI because they fear a collapse
~ tho AAA benefit payments TO
producers would induce a collapse
of commodity prices and cOnse-
qucntlv cause them 10 lose heavily
on their stocks.