Henderson daily dispatch., 1936-12-29

wise TO aQhere, generally, to the Vir-
glnla act, and the question of Wheth-
er 1t would be necessary for the Vir-
glnla legislature to make alterations
in this act, or ask Congress to change
the provisions of the act authorizing
the state compacts was left for future
deterMin alton.
The hope has been entertained by
representatives Of the tobacco grow
erS that a way could be devised to
broaden the scope of Federal super
vision over the administration of COM
pacts legislation, despite the decision
OF the Supreme court in the .Hoosac
Nails case, but the fear was expressed
yesterday that it would be impossible
for the federal government to exer-
else much control beyond the provis-
ions relating to interstate commerce.
Some members of the committee voic-
ed regret that AAA could not be Civ
en- supervision over acreage and pro-
duction, as under the old AAA
Like the Idea.
On the other hand a number of the
committee voiced considerable conf
dence in the merits of the states COM
pacts idea, and it is to be given a fair
trial with the AAA lending all the aid
and counsel possible. Under this me-
thOd Of handling the situation quotas
would be given The farmers under the
supervision of state commissions
which the governors of the various
states would be authorized to estab-
fish. There will he provision for pro-
lection Of the interests of the small
80 -
lotments.
Representatives of the growers here
from North Carolina were: e. F. Ar
mold. Claude T. Hall, W. w. Eagles,
]. E. Winslow and E. Y Floyd.
j. B. Hutson. of the department,
said that if compacts are to be adopt
ed, agreements should be made at
once. and would be necessary as fol-
lows: Flue-cured between Virginia
the Carolinas and Georgia; hurley
between Virginia, Kentucky, Tennes-
see. North Carolina. West Virginia
Ohio. Indiana and Missouri; fire-cur-
ed, between Virginia, Kentucky and
Tennessee. cigar types, between Con-
necticut, Massachusetts and Wiscon-
sin; filler, between Pennsylvania
Ohio, and possibly Wisconsin.
Prior to approval of the compacts
plan, Mr.. Hutson suggested a federal
sales tax on tobacco combined with
a subsidized crop control as one pos
Sible way to maintain profitable prices
next year.
Three Courses Open.
Talking informally, Hutson said
three courses were open for possible
agreement:
1. Continuation of the soil conserva-
ton program alone with cas- much
control as possible as a by-product.'
2. Supplement this with state COM
pacts as authorized by Congress last
session.
g. Federal sales tax program, pos
sibly 20 per cent on the first sale of
tobacco, with a separate act of Con-
gress appropriating 10 per cent of the
federal customs receipts to provide
conditional payments to growers
whose sales do not exceed their mar
keting allotments.
Deductions, he said, could be made
to allow for exceeding allotments.
This subsidy program, Hutson said
could be combined with a crop in
surance provision to permit paying
farmers double their normal subsidy
payment on short crops. He suggested
normal payment of four cents g
pound on hurley and flue-cured, and
cents a pound on the difference be-
tween the crop marketed and 80 pei
cent on the farmers allotment.
The tax, he explained, would ap-
payments. He also said the fedora.
sales tax plan, if adopted, would re
place the state compact plan.