Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1935-08-08
FARMERS FIGHT BACK
TO PUsA FOOD INQUIRY
ADJOURNMENT GUESSING
BILLS IN CONFERENCE
TAX BILL HOLDS KEY
SENATORS WANT ACTION
NEUTRALITY PROBLEMS
NEW TAX LEVlES
FIGHT BACK
NEW TAX LEviES

NEUTRALITY PROBLEMS
NEW TAX LEvlEs
With packing companies, cigarette
makers and cotton mills vigorously
pushing suits against the processing
taxes, the bedrock upon which the
AAA stands, farmers are beginning
to look around for a way to strike
back. From Texas comes word Of
intentions to test the constitutional
ity Of protective tariffs as a retalia-
ton for legal contests over the agri-
cultural tariff equivalent" How
ever, the amended AAA might be
able to stand up in the courts, 1t Is
thought, and, If this happens, the
farm fight would probably end.
One move by administration tore
es Indicated that there would be no
surrender OF the processing taxes
and that the fight would be carried
on without quarter. This was the
decision to push the $150,000 in
vestigatiOn OF food processing, by
which 1t is hoped to show purchas-
ers that the tax is not responsf ble
for the prices they pay. The ex-
pectation is that a wide spread will
he shown between what the farmer
gets and what the middleiman re-
ceives and that the average buyer
will be surprised at the distribution
OF the food dollar.
Nobody knows when Congress
will adjourn but with action under
way on the tax bill, generally held
to be the key measure OF the legis-
lative tangle. 1t Is barely possible
that the representatives of the
people may be able to speed up az
fairs and go home before long. un-
less, and this is the point, new mat
ter-like the bonus for the veterans
or the FrazierlLemke farmmortgage
plan-succeeds in forcing considera-
ton. AS last week began the Con-
gress was in sight OF the end, al
though M man could predict just
when the gavel would fall to ad-
iourn the session.
What was the layout last week?
Well, in conference for the adjust
ment OF differences were the amend
ments to the AAA, the omnibus
banking bill, the Social Security leg
islation, the utility holding company
regulatory bill and the iva mea-
sure. The latter was almost ready
for the President, the Security bill
conferees were in disagreement on
n point and serious differences
threatened delay on the banking,
utility and AAA measures.
However, readers should under
stand that once major legislation
gets out of the two houses and into
the hands of the conference COM
mittee there Is nc way Of telling
how long it will take for them to
reach an agreement or how quickly
the Congressman will decide to quit
wrangling and go home. Therefore,
the main bills requiring action in
either house, as the week opened,
indicated the real work that lay
ahead and some idea OF when the
task would he over.
Chief issues between the two
houses were on the bank bill, the ut
ility holding company bill, the So
ella Security bill and the AAA mea-
sure, but difficulty was expected
mainly in connection with the latter
pair. The Security measure was put
into conference ON June 20, but the
wrangle continues over a provision
inserted In the Senate permitting
the continuation OF private pension
systems in industry under govern
mental sanction. The holding COM
pany bill sent to conference July IL,
presents the wellremembered battle
over the Senate provision for the
compulsory dissolution OF "unneces-
sary' holding companies by 1912,
but the ~conferees have been fighting
so hard to decide whether Ben Co
hen, counsel of the Federal Power
Board, would be allowed to sit in on
the sessions that they have not got
ten far. Disputes owe closing the
courts to suit for recovery OF pro-
cessing taxes by those who can
Show that the tax was not passed
on ties up the AAA measure and the
IVA bill involves . restriction OF
the $5O.0O0.00 0 fund to production Of
| power.