Evening star., 1937-09-02
new TAX0N SUGAR
EFFECTIVE TODAY
President Signs Bill Which
Will Produce $50, 900, 900
Processing Levy.
By the Associated Press.

By the Associated Press.
A $6O,00O,O0O sugar tax-the first
processing levy on q farm product
since the Supreme Court nullined the
A. A. A. taxes-became effective today
As part of the new sugar quota legis-
lation.
President Roosevelt signed the
much-debated sugar bill last night
at Hyde Park and at the same time
sharply assailed some Of its pro-
visions
He said it legaii1ed virtual mo-
nopoly' by small group of seaboard
ref1ners and that he had signed 1t
only on assurance from congressional
leaders that beet and cane growers
were ending their "unholy alliance
with the seaboard ref1ners.
He expressed hope the next Con-
Rress session would act to remedy the
faults he said we're in the bill.
Half-cent-a- Pound Tax.
The measure imposes half -cent-a a.
pound processing tax on sugar, ef-
fective at once Officials said it would
raise from $4,000, 900 to $4,000, ,00C
annually. About $50,O00,oO0 of this
will 60 to sugar beet and cane growers
in benefit payments for crop control
The benefit payments are retro
active, applying to sugar beets and
cane harvested after July /, but the
Agriculture Department stressed nc
payments can be made until Congress
makes a direct appropriation for the
purpose. A s50,000,0 900 appropriation
for payments was stricken from the
third deficiency bill which carried
funds sufficient only for the admin
'tstration Of the new law.
The new act replaces the Jones
Costigan act, which carries no process
ing tax. 1t sets up quotas, effective
next January !, when the Jones'
Costigan measure expires, for sugar
producers.
One Of the chief objections Presi-
dent Roosevelt made to the measure
was its limitations on shipments OF
refined sugar to continental United
States from Puerto Rico and Hawaii
These he described as "discrim
inatory." While the bill was under
consideration in Congress he had
intimated he might veto 1t if these
provisions we're included.
His remuneration of the sugar mo-
nopoly' said its lobby was costing
American housewives millions of dol
lars a year. His getnlemans agree
ment with congressional leaders, he
said. provided that future legislation
will protect the consumer.
Senator Schwartz, Democrat, OF
Wyoming, discussing the understand
ing made by sugar States Congress
men with the President, said it pro-
vided Puerto Rico and Hawaii re-
f1ners would be placed on a parity
with those on the mainland if they
paid comparable wages.
1t also was agreed, he said, that
ref1ners' quotas would be dealt with
IN separate legislation.
Disappointment Expressed.
Disappointment that the President
Signed the bill was expressed by Ha-
wallan refiners. Jose M. Casanova,
president of the Cuban Sugar Stabiu-
zation Institute, said, however, that
while Cubas quota was reduced this
was better than the uncertainty which
would have resulted from a veto.
Clarence R. Biting, Florida pro-
ducer, said the consumer could ex-
pect a price increase as a result of
the bill.
The processing tax" he said, "is
virtually sales tax which will be
paid by the consumers"
Charles M. Kearney, president of
the National Beet Growers Associ-
alton, said the bill would insure sta
bility for the industry.
Kearney said the legislation would
establish "a good program for beet
. sugar farmers and continue their
progress toward economic rehabilita-
: ton and independence.
Besides farmers and their fami-
lies, the field Aborers will share in
the benefits Of the program"
Senator Borah, Republican, of
Idaho, supporter of the sugar bill,
said he knew of no agreement with
the President except by hearsay.
While I am pleased that Mr.,
Roosevelt signed this BILL" he added,
L think there is room for improve
ment IN sugar legislation. For my
self, am quite ready to take up the
matter with that view in mind"
Some informed sources here said
that with veto message already writ
ten. Mr.. Roosevelt agreed to sign the
measure after q series of last-minute
conferences.
Senators Pope, Idaho: Ellender.
louisiana, and Murray, Montana, all
Democrats, were White House callers
last Wednesday and Thursday and
said they discussed the sugar legisla-
ton
Veto Message Prepared by Ickes.
capitol Hill reports said the veto
message was prepared by Secretary
1ckes, but that Secretary Wallace gave
his approval to the latest of sup-
gested compromises of the month long
dispute between the congressional su-
gar bloc and the Administration.
In return for his signature, the
President was reported to have re-
ceived these assurances from Senators
who said they spoke for colleagues
representing an overwhelming ma
1ority Of Continental sugar producers:
l. When legislation to renew the
sugar act is framed, they will sup
port q move to deal with refining op-
erations in separate bill.
2 They will recognize Hawaii,
Puerto Rico and the Virgin Islands
As integral parts Of the United States,
with the same rights as the States.
3. The separate refinery legislatio