Evening star., 1936-01-20

Existence of about 5000 900
contracts between farmers and
Government presents immediate
financial problem, as does later
court decision that impounded
processing tares be returned to
professors.
Hy the Associated Press.
With leaders on Capitol Hill giving
increasing attention to the proposal
for re-enacting the A. A. AS process
ing taxes retroactively. the idea was
being seriously studied from a legal
standpoint today by the Justice De-
partment.
First advanced by Senator Bank
head, Democrat, of Alabama. the pro-
posal has taken strong hold in Con-
gress as a means to prevent the Gov
ernment from losing the $1,000. .OOO,-
900 of taxes levied under the dead
A. A. A. But leaders were awaiting
the advice of the Governments law
yers before moving.
Edward A. O'Neal, president OF the
American Farm Bureau Federation,
said today his organization would
push for legislation to block process
sors from obtaining the taxes. He
said he already had conferred with
members of the House Ways ana
Means Committee.
ONeal asserted hundreds OF re-
quests have come to him from farm
ers and businessmen to prevent proc
essors who passed the tax on to the
consumers and producers" from
s.making a raid on the Treasury"
Resent Professors Attitude.
1--WE feel it is within the rights OF
this organization to deeply resent the
un-American attitude of the professor
groups who now may raid the Treas
ury and claim as their own millions.
If not billions. of dollars that have
been paid in good faith by the citl-
Eens," he said.
For corporations to contend.
through highly paid legal counsel and
through clever bookkeeping. that We
the consumers. did not pay the taxes
is ludicrous. No less person than
ex-President Hoover in an address
delivered January is at Lincoln, Nebr.'
pointed out that taxes are always
passed on to the consumer"
The entire question of taxes. lnclud-
ing the problem of raising revenue
to finance the administrations new
farm plan. was being studied leisurely
with a view to action later after the
new program is under way.
Leaders are concentrating now on
the plan to attain production control
through subsidized soil conservation.
Senator Bankhead intends to intro
duce. probably tomorrow. bill en-
bodying his conception of the admin
istration plan. It calls for $350, ,000.-
900 appropriation.
vandenberg Plan.
But Senator Vandenberg. Repub-
lican, of Michigan, questioned the
value Of ANY type of subsidized re-
striction" and suggested a two-price
system under which the Government
would
Provide complete tariff protection
for crops raised for domestic sale,
and aid in handling and selling the
surplus in world markets.
The plan. he said, was "squarely
counter to the administration tariff
policy. which is admitting millions Of
dollars in foreign farm commodities.
including food, for the first time in
$50 years"
As the text for his discussion OF
the farm problem. Vandenberg cited
Department of Agriculture state
ment issued December l9 which. he
said. raises the serious question
whether the real effect of A. A. A.
control under the old processing tax
Is a boon or liability"
The report shows" he continued.
"that the total farm income from
crops and live stock increased $844.-
100000 in 1885 over 1884. OF this
amount, s44S,000,000, or more than
half. is increased income on COM
modities entirely outside of this par
ticular A. A. A. control.
THE increased income within this
particular branch of A. A. A. control
processing tax crops) was 1896 6.000,-
900. which included $4S0, 100000 OF
benefit payments.
Therefore, it would at least super
ficially appear that the crops within
this particular A. A. A. control act
ually produced $84,000,0 900 less in
come than the year before, while
crops outside increased nearly half a
billion dollars.
Jones Hits Hoover Plan.
Criticizing farm program sug-
gested by President Hoover. Chairman
Jones of the House Agriculture Com
mittee said Hoover had four years
In Office. during which he failed mis-
erably to do the job"
He said these long view policies
suggested by Mr.. Hoover are very fine
In their way. but the program adopted
BY Congress must treat the cause of
the trouble, which Is the disparity
brought about by the tariff.
hhc AOAAS dc tAAC Adl ulCk ID COIlHClleO
to buy In protected market walled
around by high tariff, he must be
provided with an Offset to protect his
income"
Meanwhile Chairman Smith OF the
Senate Agriculture Committee claimed
the solid support of the group for his
contention that q permanent" solu-
establishing q Federal agriculture
bank system.
He added, however. that with the
cotton planting season coming on US.
amendment to the soil conservation
act might furnish some sort Of
stability until . permanent program
Is enacted"
GOVERNOR TO TAKE SEAT