Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1939-03-10
FIGHT is STARTED
TO FREE COTTON
Repeal of Laws Restricting
Use of Cotton Commodi-
ties Is Asked

jackson, Miss, MdICn Inc
opening barrage in fight to repeal
laws restricting cotton" was fired
today as eight southern governors
joined Oscar Johnston, president OF
the neWly-formed National Cotton
Council, in strong request to the
Utah House of Representatives. The
request asked a favorable vote on a
bill exempting from taxes commodi-
ties manufactured exclusively from
American agricultural products.
Action of the southern governors
followed hard upon the warning is
sued by Secretary of Agriculture
Henry A. Wallace last night that
states were counting federal inter-
vention by raising interstate barriers
to free trade.
Striking out fiercely against Gun
fair" laws on cottonseed commodi-
ties in northern and midWestern
states, Mr.. Johnston declared "the
raw cotton industry will not tamely
submit to being victimized and dis
eliminated against"
"They will protest all such legis-
lation and if their protest is not
needed, they will demand that their
own legislatures retaliate by penal
izing or taxing commodities coming
from those states" he warned in a
statement issued at Scott, Miss.
The request of the governors, in
the form of a joint telegram from
seven state executives and a Sepa-
rate wire from another, asked the
Utah lower house to repeal existing
tax laws against margarine and help
open the way for permanent po-
litical and economic coalition of the
South and the West
eve believe that efforts to bring
about mutual understanding and
more closely co-operated efforts
will be materially promoted by the
enactment by the Utah Legislature
of Senate Bill 179, which we are
advised has passed the senate" the
telegram stated.
Pointing out that margarine pro-
vides the second largest market for
cottonseed oil, one Of the South's
largest money crops, the governors
declared, markets for cotton pro-
ducts are now curtailed by dis
criminatory state legislation impos-
ing taxes which amount to inter-
state tariffs or trade barriers, such
as the present state law of Utah.
We are consciously aware of this
discrimination
Governors signing the Joint tele-
gram included: Frank M. Dixon, of
Carl E. Bailey of Arkan-
sas; E. D. Rivers, of Georgia; Richard
w. Leche Of louisiana; Hugh L.
White, of Mississippi; Clyde R. Hoey,
of North Carolina, and Burnett r.
of South Carolina. Cover
nor O'Daniel of Texas, sent an in
diVidual wire
After reviewing evidences of dis
against cotton seed pro-
ducts in Minnesota, Montana, Ore
gon, Vermont, Wisconsin, Kansas and
many other states, the Cotton Council
Of the entire situation is being made
by Cotton Council officials and states
cottonseed products will
be publicized. The attention of cotton
states will be called to commodities
they normally purchase from states
such penalties.
Inc llSQC against CI11S QlSCrlIIl1I1d
ton" on cottonseed products is just
beginning, Mr.. Johnston minated,
and is going on already in more than
one state.
He pointed out a tax of 10 cents
per pound on margarine was i'm
posed in Tennessee in 1881, but that
recently the house of representatives
passed an act amending this law SO
as to exempt from this tax margarine
from domestically-pro
duced agricultural commodities.
This bill is now pending before the
Tennessee senate, and Mr.. Johnston
asserted the "whole cotton industry
is watching,sthe senate to see what
if any relief that body will give'
"Such legislative trade barriers as
are now in existence and the new
ones being proposed will necessarily
result in the adoption of retaliatory
legislation on the part of cotton-pro-
ducing States" he said 'Already a
bill has been introduced in the Ar
kansas legislature seeking to impose
penalties and taxes on merchandise
coming into that state from those
states which penalize products of
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