Henderson daily dispatch., 1937-01-01


garded as significant that the confer
ence virtually scrapped the type of
crop control the tobacco farmers were
demanding last spring when they
were urging Governor j. c.. B. En-
ringhaus to call a special session of
the General Assembly to enact a con-
troll bill and that the Federal experts
now agree with Governor Ehringhaus
fret . tobacco crop control bill of
the type advocated last year would
have been disastrous.
The alternate proposal made by
Hutson that the Federal government
levy sales tax of 20 per cent on ali
tobacco sold in order to provide a
fund from which to pay tobacco farm
ers for reducing their acreage is be-
ing regarded with unusual interest
here for the following reasons:
l. Because it proposes to levy an
additional sales tax on tobacco, on
which the Federal government now
has the highest sales tax in existence.
since at the present time out of
every Is cents paid for a package of
cigarettes, six cents goes to the fed
eral government This Federal excise
" A1tO4LCCI SAFES IdA OIL d DOuuU OASIS,
amounts to $40 pound on tobacco
after it is made into cigarettes.
?. Because it proposes to levy a
Federal sales tax on agricultural pro-
ducts-which are exempt from The
State sales tax-which is almost seven
times larger than the State sales tax,
levied only on retail sales and which
would amount to one-fifth of what
the farmer received for his tobacco
crop at the time it is marketed. It is
presumed that the 20 per cent sales
tax would be deducted by the tobacco
WarehOusemen and turned over to the
government.
3. Because the people in the "to-
bacco belt' of North Carolina are re-
garded as being more opposed to the
State sales tax of three per cent than
in any other section of the State, de-
spite the fact that it is not levied on
tobacco or farm products and had re-
lieved farm and property owners of
having to pay property taxes for
schools.
4. Because this conference in
Washington, at which this "sugges-
ton" was made by Hutson, was at
tended by J. E. Winslow, president of
the Farm Bureau Federation in North
Carolina, and a large tobacco grow
or; Claude Hall, Cap Eagles and
Jonathan Daniels, of The News and
bserver, all regarded as opponents
q my sales tax, although The News
and Observer urged the enactment of
sales tax-any kind of a sales tax in
1881.
s. Because Winslow, The Farm
Bureau, Jonathan Daniels and The
News and Observer are expected to
urge the enactment of a State tobac-
CO compacts and crop control law by
the 1887 general assembly that will
bring about compulsory reduction of
tobacco acreage-and probably of cot
Ton as well-provided some means
can be found to find the money with
which to pay the farmers for reduc-
ing their acreage. The 20 per cent
sales tax was suggested by the sex
perts' in Washington as a possible
means of providing the money need
ed for this purpose.
6. Because, if such a sales tax
should be levied, the farmers would
be contributing one-fifth of all their
earnings from the production of to-
DS~NNO AiCO a lulu lIOIu WHICH Lu0Y
would later be paid for not producing
tobacco, after the cost of maintaining
an elaborate organization in Washing
ton and probably here in Raleigh as
we'll, had been taken out of the fund
mo one here, of course, believes the
1857 legislature will permit the State
to share in any plan such as this or
Will enact any compact law which
Will require the tobacco farmers to
pay any more taxes on their tobacco
man hey are now. These things are
beine pointed out merely to show the
tobacco farmers the wisdom of pro-
ceed.ng cautiously and slowly in any
crop control movement which may
be proposed.
1936-1922 Washington and 1880
London naval traatiac l;,,oi+;rcr x,,or