Evening star., 1936-01-07
1DHE text of the majority opin-
ion, read by Justice Roberts.
In which the Supreme Court

whether certain provisions Of the agri-
cultural adjustment act 1888, conflict
with the Federal Constitution.
Title Of the statute is captioned
Agricultural Adjustment" Section
! recites that an economic emergency
has arisen, due to disparity between
the prices Of agricultural and other
commodities with consequent de-
struction of farmers purchasing power
and breakdown in orderly exchange,
which, in turn, have affected transac-
tions In agricultural commodities with
q national public interest and bur-
dened and obstructed the normal cur
rents of commerce, calling for the
enactment of legislation.
Section declares it to be the policy
Of Congress:
ITO establish and maintain such
balance between the production and
consumption of agricultural commodi-
ties, and such marketing conditions
therefor, as will re-establish prices to
farmers at level that will give agri-
cultural commodities a purchasing
power with respect to articles that
farmers buy equivalent to the pur-
chasing power Of agricultural COM
modities in the base period"
Base Period August, 1909,
To July. 1914.
The base period, In the case OF
cotton, and all other commodities eX-
cept tobacco, is designated as that be-
tween August, 1909, and July. 1914.
The further policies announced are
an approach to the desired equality
by gradual correction of present in
equalities Eat as rapid a rate as is
deemed feasible in view of the current
consumptive demand in domestic and
foreign markets." and the protection
of consumers interest by readjusting
farm production at such level as will
not increase the percentage OF the
consumers retail expenditures for
agricultural commodities or products
derived therefrom, which is returned
to the farmer. above the percentage
returned to him in the base period.
Section 8 provides. amongst other
things. that in order to effectuate
the declared policy" the Secretary OF
Agriculture shall have power.
a. To provide for reduction in the
acreage or reduction in the produc-
ton for market, or both. of any basic
agricultural commodity, through
agreements with producers or by other
voluntary methods, and to provide for
rental or benefit payments in connec-
ton Herewith or upon that part Of
the production Of any basic agrl-
cultural commodity required for
domestic consumption. in such
amounts as the Secretary deems fair
and reasonable, to be paid out of any
monies available for such payments"
80. To enter into marketing agree
ments with professors, associations OF
producers. and others engaged in the
or foreign commerce of any agri-
cultural commodity or product there
of, after due notice and opportunity
for hearing to interested parties"
Authority for Licensing
OF Interstate Trade.
"3. To issue licenses permitting pro-
cessors, associations of producers and
others to engage in the handling, in
the current of interstate or foreign
commerce, of any agricultural COM
modify or product thereof, or any
competing commodity or product
thereof"
It will be observed that the Secre-
tary is not required. but is permitted,
If, in his uncontrolled judgment, the
policy of the act will so be promoted,
to make agreements with individual
farmers for a reduction of acreage or
production upon such terms as he
may think fair and reasonable.
Section (a) enacts:
TO obtain revenue for extraordin-
ary expenses incurred by reason of the
national economic emergency there
shall be levied processing taxes as
hereinafter provided. When the Sec
retary of Agriculture determines that
rental or benefit payments are to be
made with respect to any basic agri-
cultural commodity he shall proclaim
such determination, and a processing
tax shall be in effect with respect to
such commodity from the beginning
of the marketing year therefore next
following the date Of such proclama-
ton. The processing tax shall be
levied. assessed and collected upon the
first domestic processing of the COM
modify, whether of domestic produc-
ton or imported. and shall be paid by
the professor" '"'
The Secretary may from time to
time, if he finds it necessary for the
effectuation of the policy of the art,
readjust the amount of the exaction
to meet the requirements of subsection
(B). The tax is to terminate at the
end of any marketing year II the
rental or benefit payments are dis
continued by the Secretary with the
expiration of that year.
Section 9 B) Fixes
Tax Determination.
Section 9 (B) fixes the tax Eat such
rate as equals the difference between
the current average farm price for the
commodity and the fair exchange
value" with power in the Secretary,
after investigation, notice and hearing,
to readjust the tax so as to prevent
the accumulation of surplus stocks
and depression of farm prices.
Section Co directs that the fair
exchange value of a commodity shall
be such price as will give that COM
modify the same purchasing power
with respect to articles farmers buy
as it had during the base period and
that the fair exchange value and the
current average farm price Of a COM
modify shall be ascertained by the
Secretary from available statistics in
his department..
Section IL (a) appropriates $780,
900, 900 Ito be available to the Secre-
tary Of Agriculture for administrative
expenses under this title and for rem
tai and benefit payments ~; and
section u (b) appropriates the pro-
ceeds derived from all taxes imposed
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