The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-01-06
SIS, 900, 900 in Impounded
Processing Taxes May
Be Returned.

When the United States Supreme
Court today invalidated the Agri-
cultural Adjustment Act, it materi-
ally altered the economic lives of
254,000 Indiana farmers and re-
turned to the pockets of Indiana pro-
cessors about $6,OO0.OO0, impounded.
Purdue University officials stated
that the Federal government has
signed contracts in the state with
100000 corn and hog producers;
$4,000 wheat producers; 5000 tobacco
producers and 1000 sugar beet grow
erS.
In the state, IS per cent of the
corn-hog growers and more than
so per cent of wheat raisers signed
contracts this year, Purdue an
nounced.
Substitute Measure Ready
According to information at the
university, the United States De-
partment of Agriculture had antici-
pated the adverse decision and had
planned a substitute measure, which
is to be introduced in Congress i'm
mediately.
In line with this announcement is
the statement of H. E. Abbott, Mar
ion County agricultural agent, who,
when told of the adverse ruling, said
that there is to be no change in OPP
erations in the county.
He said assurances were received
from the Department of Agriculture
in advance CT the decision, that in
the event of an adverse ruling, other
means of carrying out AAA plans
would be provided.
Meetings Will Be Held
Meetings to obtain 1886 1887 crop
contracts as provided in the in
validated law. are to start in Marion
County tomorrow, to continue
through the week, Mr.. Abbot stated.
The schedule is not to be affected
by the decision.
At the same time Will H. Smith,
indianapolis internal revenue col
lector, said that his records show
that more than S10,000000 was col
lected in AAA processing taxes in
the fiscal year ending June, 1885,
in Indiana
He said that since June, 1885, APP
proximately 100000 in taxes had
been paid under protest and i'm
pounded to await the Supreme
Court decision and now probably
will be returned to packers, millers
and other professors in the state.
Ninety-two Federal court cases,
involving the $6,000,O00 in process
ing taxes, awaited the decision.
The internal revenue collector said
the impounded taxes would be re-
turned only upon court order, how
ever.
Food Prices May Drop
Dismissal of the SO processing tax
suits and an order restoring the i'm
pounded taxes to Indiana firms is
expected by Federal officials.
The decision is to have a far
reaching effect on commodity prices
and will affect every person in In
diana. it is believed, but at this
time no official or expert would at
tempt to forecast whether retail
food prices are to rise or fall or to
what extent.
Retail prices of pork, flour and
sugar are likely to be those first
affected. wholesale and retail groc-
ers indicated.
Edward w. Harris, Hamilton
Harris & Co., tobacco wholesalers,
said the consumer will not be ma
terially affected by the processing
tax being cut from tobacco.
1T will all be lost in the shuttle
he said, but it will mean that to-
bacco will be slightly cheaper"
Russell McDermott, manager In
dianapolis branch of Abbott, Proc
tor & Paine-"The AAA decision
should be similar in effect to the
ruling on NRA. Farmers will now
receive benefit of the full amount of
what the consumer pays. whereas
formerly they received only 81 per
cent, the rest going to bureaucratic
in Washington.
If prices of raw commodities re-
main the same, farmers will receive
more and the consumer pay less"