The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-02-03
Charge Made as New Deal
Substitute Farm Bill Is
Reported FavorabIy.
SENATE DEBATE NEARS
Slight Changes Are Made in
Measure Presented
Representatives.
By United Press

WASHINGTON, Feb. s.
Charges that a well organ
lied" movement in the textile
industry seeks to block recov-
cry of outlawed AAA process
ing taxes were laid before a
House subcommittee today at
the same time the Admins
tration's new farm bill was IA
vorably reported to the House.
Rep. Henry Ellenbogen Cd, Pa
charged before House labor SUBJ
committee that the alleged move
ment in the textile industry was de-
signed to block the proposed retro
active tax legislation to recover some
$200,000,000 in taxes which the SUI
preme Court ordered returned to
professors.
Senate Action Started
The Administration has been
seeking method to recover the
taxes and also will ask Congress for
substitute farm taxes, totaling prob
ably $500,000,000, to finance the new
progra mfor soil conservation and
production control.
Senator Elmer Benson (F.-L.,
MinnO introduced a bill in the
Senate today to enablee consumers
and farmers to recover from process
sors the amounts of processing
taxes which the Supreme Court
after invalidating AAA-ordered re-
turned to the professors.
The House bill. reported today by
a 17-to-6 vote, differed slightly
from the measure already reported
to the eSenate for debate today or
tomorrow. Republicans prepared to
attack the new measuree as uncon-
stitutional.
Institute Denies Charge
Meanwhile, Rep. Ellenbogen
brought up the subject of processing
taxes during testimony of textile
men at the subcommittee hearing.
Every member in Congress is
getting letters opposing these
taxes he said, asserting that the
Cotton Textile Industry, Inc, was
one of the organizations behind it.
Bearded G. H. Dorr, chairman of
the Institutes board, denied that
his organization was organizing
any lobby to fight the taxes" and
said that the industry was merely
apprehensive over possible precipi-
tate action by Congress.
The House farm bill calls for use
of soil conservation features in both
permanent and temporary farm
programs for production control.
The cooperation of the states in
forming individual "Iittle AAA"
units would be confined to the per-
manent. The measure provides for
benefit payments to farmers who
cooperate.
Grants Are Provided
Chairman Marvin Jones ID.
Texas of the House Agriculture
Committee, said he would introduce
the bill formally this afternoon but
was A14OCClOCu WllSI1 1IS WOulQ DTlIl2
it to the floor.
A provision which would prevent
auditing of the disposition of the
funds under the program except by
the Secretary of Agriculture was
stricken out. The section now SAYS
that the disposition is subject only
to review by the Secretary of Ag-
riculture.
The House bill provided that the
Secretary of Agriculture may make
grants to thosec arrying out pro-
visions of the act for soil conserva-
ton, rebuilding and use of land I'M
der the temporary program, which
expires Dec. 81, 1897.
1t would set up a permanent pro-
gram, which can be thrown into eff
feet whenever machinery for carry
ing out its provisions is organized
in the individual states.