The Waterbury Democrat., 1936-01-07
NEW ENGLANDIS
 WELL SATISFIED
Decision on AAA Pleasing in This SeCtiOn-COrn
 May Recover

Boston, Jan. 7.-(UP)-New Eng land reaction to the supreme court decision which nullified the AAA. to- day presented an almost solid front of jubilation.
 Basically industrial, this section has been paying heavily in process ing taxes ever since the AAA was adopted. Cotton manufacturers were particularly elated. They ale ready have paid about $47,000,00O in processing taxes, $33,000,000 Of which came from Massachusetts mills. The industry anticipates a return of $ll,00o,000 to $l5,000,0O which has been tied up by the courts pending yesterdays decision. Some mill lawyers were even op- timistic enough to consider the 'pos- sibility of recovering the taxes al- ready paid.
 Tobacco Growers Benefit
 Those who benefited most from the AAA In this section were the tobbacco growers and compara- lively few hog raisers. Together they obtained about $2,000,000 In direct benefits. New England agricul- ture, according to the New England council, realized but little. They received but four-tenths of one per cent of the AAA farm benefit payments despite the fact that this section had 3 per cent of the gross farm income In the United States.
 Figured on the whole, with the cotton industry providing the chief AAA endowments, New England paid out about 18 times more in the processing taxes than was returned In benefits.
 MILK Industry Confused
 There was confusion In the New England milk industry, with most observers of the opinion that the adverse AAA ruling knocked the props out from under the federal milk control program. Massachu- sets Milk Administrator Joseph c. Cort called @ meeting for tomorrow of the representatives of the state control board of New Hampshire, Vermont, Maine, Connecticut and Rhode Island to discuss the situa- ton, He said that If the supreme court decision directly or indirectly nullifies the federal milk program, the state control programs will have a difficult task"
 Conn. Mills Seek Recovery
 Hartford, Conn, Jan. T-(UP0- Connecticut Cotton mills were ex- pected to take immediate action to recover approximately $5,000,000 in processing taxes, as result of the supreme courts adverse ruling on the AAA. A half dozen or more cases now are pending in district court, here and at New Haven.
 As mill owners studied means to recover, they also considered pres- ent and future results of the rul- ing. Some foresaw an orderly re- vision downward of prices in prox- imity with the tax amount. Others predicted Q demorali2ed market with with buyers driving down prices. The more optimistic believed prices either would remain at the present | leVel or auVance.
 Bread and milk prices were ex- pected to remain unchanged. Farm products also were placed in the same light. Practically all cotton mill executives agreed the industry would benefit by removal of the tax, although tobacco men were hard hit. A vast majority of tobacco growers in Connecticut favored the crop control feature, which brought them increased earnings.
 As to the cotton industry, one ex- ecutive said i've know where we are now. We do not have to con- slider the tax in our production costs and our customers are freed from the uncertainty which has ruled buying for several weeks"