Evening star., 1935-08-11
A. A. A. TAX SUIT
LEEWAY SOUGHT.
Conferees Trying to Open
Court Doors While Rev.
enues Shrink.
BY the Associated Press.

By the Associated Press.
Senate and House Conference Com
mittee members gestured for peaceful
congressional acceptance Of the fam
adjustment bill yesterday by OPEN
ing wider the courts to suits for re-
covery of processing taxes.
With removal of this major OBJ
stacle to acceptance by Congress OF
the conference report on the A. A. A.
amendments, the measure will be put
before the House Tuesday and sped
to the Senate later.
The agreement was reached as
processing tax collections were cut
sharply by the 899 pending injunc-
ton suits in Federal courts. The situ-
alton caused some farm officials to
repeat their belief of the necessity
for an early decision on constitu-
tionality of the A. A. A.
June taxes, collected in July, drop
ped more than $11,0o0,00 from the
May total, and daily Treasury re-
ceipts indicated an even greater de-
cline for July taxes being collected
this month. For June, 1885, collec-
tions we're s30,950, ,261, compared with
q total of s43,043,375 for June, 1884.
Can File Claims.
The Capitol Hill conferees warned
In advance of Senate objection to
their first draft of the tax suit pro-
VISION, worked out revision even after
announcing formal agreement on the
bill. As before, the bill would per-
init professors to file claims with the
internal revenue commissioner for
tax refunds in event the processing
taxes are held invalid, but no longer
would the commissioners findings be
binding on the courts.
LAS I understand it, it is a de-
cided improvement" said Senator
Borah, Republican. Of Idaho, but I
can't pass on the proposal as whole
until see it,
Borah declared the first conference
draft amounted to notification" of
the efforts of the Senate to write into
the bill permission for professors to
claim rebates in event they should
prove they had not passed on the
taxes to consumers or producers.
So displeased was Senator johnson,
Republican, of California. with the
first draft that he planned to fight
it on the floor when the conference
report was submitted. He could not
be reached to comment on the re-
vision.
Two Plans Clashed.
To forestall any flood of recovery
suits in event the processing taxes
should be held unconstitutional, the
administration sought to shut them
OF altogether and this was provided
In the House bill.
The Senate opened the court doors
to suits for recovery of taxes not
passed on. The first conference COM
promise required professors to file
claims with the collector of internal
revenue, whose findings would be
made final and not subject to review
by the courts except for error.
The latest revision provides simply
that the commissioners findings
should not be final but merely a re-
port on the case.
In addition, the committee revised
another section of the bill by per-
mitting recovery actions to be handled
on review by any Federal court rather
than only by the District Of Columbia
Supreme Court as provided before.
Members indicated also that
professor could submit his claims be-
fore any internal revenue office in
the various States, subject to regula-
tions Of the commissioner.