xt7wwp9t2q46_42 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/mets.xml https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61.dao.xml American Liberty League 37 linear feet archival material English University of Kentucky This digital resource may be freely searched and displayed.  Permission must be received for subsequent distribution in print or electronically.  Physical rights are retained by the owning repository.  Copyright is retained in accordance with U. S. copyright laws.  For information about permissions to reproduce or publish, contact the Special Collections Research Center. Jouett Shouse Collection (American Liberty League Pamphlets), No. 45 "The Revised AAA Amendments: An Analysis of Proposals Which Represent a Confession of the Unconstitutionality of the Present Law and an Attempt to Postpone the Day of Reckoning in the Supreme Court," July 1, 1935 text No. 45 "The Revised AAA Amendments: An Analysis of Proposals Which Represent a Confession of the Unconstitutionality of the Present Law and an Attempt to Postpone the Day of Reckoning in the Supreme Court," July 1, 1935 2013 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61/59m61_45/Am_Lib_Lg_45_001/Am_Lib_Lg_45_001.pdf section false xt7wwp9t2q46_42 xt7wwp9t2q46 Pamphlets Available ·k ir
*
Copies of the following pamphlets and   R, ° d`
other League literature may be obtained C  
upon application to the League’s national
headquarters :
Why, the American Liberty League? AA A
Statement of Principles and Purposes
Progress vs. Change--Speech by Jouett Shouse
American Liberty Leagug—Its Plztfornli/I
An Analysis o the Presi ent’s Bu get essage A dv
Analysis of the $4,880,000,000 Emergency Relief    
Appropriation Act
Economic Security
The Bonus
Inflation .
Democracy or Bureaucracy?-—Speech by Jouett
Shouse I * * *
The Thirty Hour Week
The Pending Banking Bill
The Holding Company Bill
The Legislative Situation—Speech by Jouett
Shouse
"“g;;;£ 2;/€E$’7fL‘;;li%‘i°1;}€;3k€tW€€“ Fri€¤dS?"- Ah Ahaiysis of pmphsais Which
Where Are We Going?—Speech by James W. Represent 3 COI1f€SSi0I1 of the UI1»
Wadsworth constitutionality of the Present
Price Control
¥§S{ggyd;iL)y, rléyday &¤dBTOmOrr0W Law and 311 Att€IHPt to Post»
e La or elations ill ·
Government by Experiment—Speech by Dr. Polic the Day of Reckoning
  Cgygthgyg In the SHPYCHIC Court
How Inflation Affects the Average Family-
Speech by Dr. Ray Bert Westerfield
The AAA Amendments
Political Banking—Speech by Dr. Walter E.
Spahr
The Bituminous Coal Bill
Regimenting the Farmers—Speech by Dr. G. W.
Dyer Ry
Extension of the NRA v‘$ "l,!,
Human Rights and the Constitution—Speech  
I by R. E. Desvernine ,-   M
The Farmers’ Home Bill 'Q   ;
The TVA Amendments C? ,0
The New Deal, Its Unsound Theories and Ir- 7. Y LP
reconcilable Policies--Speech by Ralph M.
Shaw
i Is the Constitution for Sale`?—Speech by Capt.
` William H. Staytoh
Hcigw to lxleet the Issue—Speech by William
. Bora l
The Supreme Court and the New Deal
Tlgz Dultybof gba;/V Cgurghl to the Social Order- AMERICAN LIBERTY LEAGUE
pew V · 6 S ley. . National Headquarters
A13 ggezegetter to the Pres1dent—By Dr. Neil NATIONAL PRESS BUILDING
* WASHINGTON, D. C.
AMERICAN LIBERTY LEAGUE _
NATIONAL PRESS BUILDING * *
WASHINGTON, D. C.
· Document N0. 45
¤ 4 June: 1935 ·
•

   I" A I
· tutional bounds, judging from the repeal of vir-
The Rcvlscd AAA Amendments tually all important sections and substitution of
* entirely new language. The bill bears little re-
_ semblance in text either to the present law or to
Rerpetuation of a system of regimentation of the earlier drafts of amendments to the Act
agriculture, admitted to be of doubtful consti- which have been before the Congress throughout
tutionality, is the avowed purpose of amend- the present session.
ments to the Agricultural Adjustment Act passed In effect, the bill conveys an admission that
by the House of Representatives on June 18, the entire AAA structure is unconstitutional.
1935, and awaiting action in the Senate. Nevertheless, it is attempted to validate every-
The bill, H.R. 8492, revised from earlier thing that has been done and to continue the
A drafts to meet legal points raised as a result of same regimentation of agriculture without sub-
the Supreme Court’s decision in the Schechter stantial change. The draftsmen who drew the
case invalidating codes under the National In- original Act failed to make it conform to the
dustrial Recovery Act, represents both a confes- , Constitution. It is now proposed to try a dif-
sion of the unconstitutionality of the present law ` ferent set of legal phrases to accomplish the
and an attempt to postpone as long as possible same purposes.
a verdict by the highest court. While in some particulars the powers of the
Provisions of the bill which embody specific · Secretary of Agriculture are strengthened as con-
admissions of the mvalidity of the existing stat- templated by the earlier bills, it is obvious that
ute include the following: the immediate objective now is to delay a final
1. Enactment of present rates of processing determination of the constitutionality of the
taxes in lieu of an existing undue delegation of Agricultural Adjustment Act by the Supreme
blanket power to the Secretary of Agriculture. Court.
2. Retroactive ratification of the assessment The same sharp practice is contemplated that
and collection of nearly $900,000,000 in process- was proposed with respect to the National Indus-
1ng taxes. _ trial Recovery Act. The NRA extension bill,
3. A prohibition against the bringing of suits which was pressed by the Administration when
for refunds or credits of processing taxes on the it supposed that the Supreme Court at its recent
ground of their invalidity. term would not rule upon the validity of the law,
4.   prohibition against suits to enjoin the contained a revision of language so complete as
collection of processing taxes or to obtain a to mean that, if enacted, pending litigation would
declaratory judgment in connection with them. have been dropped. This would have meant
5. Repeal of the present general authority to further delays while new suits were being started
the Secretary of Agriculture with respect to on the long road to the Supreme Court. H.R.
rental or benefit payments to producers and sub- 8492 would have the same effect with respect to
stitution of lengthy new language setting forth litigation affecting the validity of the Agricul-
methods and policies in detail. tural Adjustment Act.
6. Repeal of the present licensing section and Although more than two Yonro have elapsed
§¤bSt1tl1ti0n of new language authorizing the since the enactment of the Agricultural Adjust-
issuance of "orders" applicable to processors and ment Aet eh May 12, 1933, its oonotltntionnnty
other handlers of a restricted list of agricultural has Het been Pnoood noon by tho Snprotno Cotn`t·
eemmodlties. , Some of the lower Federal courts have ruled ad-
_ 7- Nommal restriction of orders and market- versely. Several cases are scheduled to reach the
ing agreements to interstate commerce, but in Supreme Court next WiHt€1“- Presumably meet
language designed to make possible continued   of them Would be dropped if tho Ponding bm is
control of a considerable volume of intrastate · (matted- P1‘<><>eeSi¤g tnxosv Wnioh mo invelved
bl1S111eSS. in some of the cases, would be given a different
D. h , _ legal status under the bill. Similarly, if the
1S Ouest Lcg1Slat1011 licensing selotion of the Act is repealed, the cases
NO more dishonest 16% Of 16 mation has involving t e validity of action taken under it
  before at presentpsession of the congress. Worn bq algendml greg thoggh gte me we-
Ilnder a mass of verbiage is concealed a recogni- lm} Wong -6 BXGYQISG t Eoug Or cm · h
‘ tion of the complete demolition of the AAA by H suc Clmums MOSS -WO m-Om years Img t
the Schechter case decision. Scarcely anything Blame before a“ test CMG mvolvmg the new law
of importance was left in the Act within consti- Could mach the Supreme Court
2 3

 l _ _ ture to impose the taxes under a general rule, the
H1st0ry 0f B1ll bill provides that in the case of the commodities
. . . on which they now apply, the rates shall be as
_Tha paadms lasldaaaa has had a remarkable presented in regulations in effect on June 1,
nretorv· ,H·R· eaeeue tha nrth dratt af the bur 1935. The taxes shall continue in effect until
actually introduced in the House durlng the pres- Deeemher 31, 193; The Seeretary re given an-
ent session. An even earlier draft, different from therrty to raise the ratee er to decrease them to
any of the five, was offered 1n the 1934 session Zere_
of the Congress. _ _ _ It would appear from the bill that its drafters
Each time the bill has been revised 1t has been Were not Very enre et their legal gI·Ound_ The
expanded The 1934 vereron eonereted af only bill provides that if an adjustment of rate is held
about erght Pages- rt_Was sldetraokeu aftar Pro- invalid, the rates as specified in the bill shall be
tests were voiced against its far-reaching char- edeetrve
aoter·   eeeb> rntrodueed aa February lar In the attempt to legalize past actions the bill
reed oonereted af to pagee· HR- troeev Intro" provides that all taxes levied and collected prior
duced eb Mereb 28* aad   771b¤ rntrodueed z to its enactment "are hereby legalized and rati-
on Aprn are eaeh eontarned about ao pages- fied and confirmed as fully to all intents and
HR- eoo2» rntrodueed aa Mar 14> had 23 pages- purposes as if each such tax had been made effec-
HR- e492¤ rntrodueed aa June Mw less than tive and the rate thereof fixed specifically on
three weeks following the dec1s1on of the Su- * May 12,1933,by Act of Congress."
preme Court in the Schechter case, has 53 pages.
Several of the drafts were actually reported to ·
the House, the bills being withdrawn for recon- Dental af Refunds
srderatroh as_ naw developments ooourred- The provision of the bill which seeks to make
_The substrtuuou of H·R· 8492 for tha Pre‘ it impossible for processors to recover taxes paid
was draft Whwh was lass thaa half aa kms, in ure event of a decision holding tnern to be in-
took Praoe upoo- tha reoommeadatloo af tha Seo- valid represents a high-handed attempt to cir-
ratary af Agrloutture; tt was rapartad ta tha enrnrent the courts and the Constitution. It
House one day aftar rts rhtroduotrorr would establish a precedent tending to curtail the
Passage of the bill by the House without a roll rights et citiZ€nS_
call reflected the disinclinationof members to go The bill nreyjdee that Une etnt er nreeeeding
ou reoord far a measure vvhroh uttuhaterv rs shall be brought or maintained in, nor shall any
likely to run afoul of the courts. The standing judgment er deeree be entered by, any court for
rata as aaaauaaad by tha Spaakar was 168 ta 52- the reeenpnrent, een-err, refund, or credit er, or
The aaa thus Shawn ta have voted represented on any counterclaim for, any amount of any tax
ohtv ehghttv more than a duorurn af tha rnern' assessed, paid, collected, or accrued under this
bersrulo af 435- title prior to the date of the adoption of this
amendment?
Processing Taxes Besides seeking to guard against refunds of
. . . . . . processing taxes heretofore collected, the bill
Tha Vahdw Of proeeesmg taxa as lavdr->d la looks ahead to the peedenny that the new pre-
teeny eaeee In the eourte The veettng af author" visions will be held invalid. It is provided that
ity 1n the Secretary of Agriculture te impose une suit, aetren, er proceeding (including
thaaa taxee nee been attaeked aa aa unproper · probate, administration, receivership, and bank-
delegation of the taxing power by the Congress. runtey proceedings) shall be breuent er mam_
The right to levy a tax upon one class of citizens tained in any eeurt rr Such suit, aetmn’ er nre_
tor tha benent af another etaee. has been eba1' _ ceeding is for the purpose or has the effect (1) of
hanged- Other oonetrtutronar pornts> Such aa the preventing or restraining the assessment or col-
takrng af property Yvrthout due praaaaa af raw rn lection of any tax imposed or the amount of any
vroratroh af tha Ftrth Arnendrnentw have been penalty or interest accrued under this title on or
ra1sed· _ _ _ _ after the date of the adoption of this amendment,
The extensrve rev}eron af the proeeeerng tax or (2) of obtaining a declaratory judgment under
sections makes it evident that the legal author- the Federal Deelaratery Judgments Act rn een_
ities in the Agricultural Adjustment Administra- neetmn With any sueh tax er Such amount ef any
tion were of the opmion that the Supreme Court . sueh interest er penalty.),
vvourd nord pr oeeeetng taxee to ba rnvahd· , The justification given for the provision deny-
Instead of allowing the Secretary of Agricul- 5
4

 ing refunds is that the taxes paid have been Paragraphs in the present Act containing only
passed on to the consumer. While this may have a little more than 100 words have been replaced
been the general rule, it is by no means true in by more than 800 words of text.
all cases. In fact, the Agricultural Adjustment
Administration in a report covering the first year Licenses and Orders
of its operations asserted that there are "wide
variations in the extent to which processing taxes hThe propesed lrepeal of tlre lieensllig section lof
are passed on to consumers or are absorbed in t e present aw as particu ar signi canoe in t e
the channels of distribution." The complete light of adverse court decisions. The annual re-
denial of the right to sue for refunds is an port of the Agricultural Adjustment Administra-
arbitrary action which should not be tolerated. tion, recently made public, states that the lower
The bill is less severe with respect to refunds Federal courts in seven different jurisdictions
on taxes hereafter collected than those heretofore lI1`alveGruled against the valirliey of milk licenses.
paid. It is stipulated that no refund or credit _ e overnment unsuccess u y sought to estab-
of any tax accruing subsequent to the date of the lish llhe leaalitylkoff Federlall regu(lation of tne
amendment shall be approved unless the claim-   pure ase 0 mi rom t e pro ucer on t e
ant establishes that he has neither passed the tax Q graeuridthatfthe trlansactilrn   so interrelated with
on nor passed it back to the producer. t e price 0 pro ucts w 1C move in interstate
The processing taxes have proved an excessive _ commerce as substantially to affect the latter.
burden upon the industries affected. The grand The AAA report notes that "th1s theory of the
total of such taxes collected up to June 25 was Government is still somewhat novel and less
about $875,000,000, of which more than half familiar to the courts"
applied to wheat and cotton. The Agricultural The cases in question are on their way to the
Adjustment Administration has paid out consid- Supreme Court. _ It IS apparent that if the pend-
erably more than $1,000,000,000 from the rev- ang le%Sla§r0n ishenactled (terhese cases will be
enues from processing taxes and specific appro- roppe . eanw 1 e, t e overnment wil go
priations. ahead in arr effort tohaccomplish substantially the
AgriCultur&1B€n€rr1tS aarrlelerregu ation t rough a slightly different
In the lanauaae of the report of the House _ In the various drafts of the pending legisla-
Committee on Agriculture the provisions of the     l§`Sl_‘fSd§€ tnS Sul;l`]SmS COUTUS dee-
A lj l Jo" Jo t l d b {ln le lz e C ele er 0aSe le. puI‘pOSe Was O
fa‘§.mf§.§nQ§e §eQ‘;“r@W§§ten ef};. lh§‘Sr§'§n‘§§S§ O2 strengthen the licensrng pfevrereee of the Act.
aeereee eeeeere that re the exercise ofthe powers Trhgrfigetpgggi§j;S,;¤l;ja¤€tSll;¤§d€rSl’ fw 1l<>¤mm9d-
action set forth in the statute and determined on   lgngeggfrgrggnltles Cl¤fq21gS’¤1;>¤ STS nnnir
the basis of the finding made by him." As thus SS an ml S OY Sdnmng »
rewrltten, the report says, the Act will conform $;;2n§i)l€;Vi1(n_nn;rn;nnbiccnvdVSgSt?b1lSS (SX‘jIS}l;t
to t e requirements laid down in the Schechter . . . 1 g an nSVS· S S}`SS· S
casel, the present provisions being admitted to be  IS;ft§)I;n(;;§l$?r}nrS)SrSn;rE·C¥" atprrlres mf any
‘ le _ _ uc ereo or
mn?Vli1(;i·1§Ja; the present law contains authority to l any °0mpSnng Sommmnty SY Product J°h€I:€0f·
make rental or benent nayrnenre only ln eonnee_ The narrowing of_the authority to issue orders
tion Wren aereaae or nrooluetlon rednetlon the   to certain commodities reflects both a doubt as to
new language adds the nower to make ’nay_ I the legal ground and a desire to avoid the opposi-
ments in connection with the removal of any non ¤f1mp¤¤=¤~¤t PYSSSSSIHS EYOUPS Whi0h_P1‘0P·
basic agricultural commodity or product thereof eng dSSn`S tn Yemen n` SS fmm 1`Sg1mSnJ°dU0¤ by
from the normal channels of trade and commerce, S Overnmnnt bnI`€3‘n°m°Y· . _
to expand domestic or foreign commerce for any h NEI °I`dS1` Snnn bS°SmS effeetlve until the
basic agricultural commodity and products there- all ETS ef nnt ISSS than 50 PSY °Snn Gi tnS
of and in connection with She production of that _ ggalnlnriigg gngigglllngngdllldg ann Produ? Sfn?n1S1gnta
tf b' 't h‘h' ‘d _ _ _ . eeveno aiureo
Err dsnlglgn egnginlnnlnnxi 1 Y W lc IS mqmm obtain sufficient signatures the Secretary of Agri-
6 7

   " 7 •
culture, with the approval of the President and
following a hearing, may make an order effective, as directly to burden, obstruct, or affect, inter-
provided two-thirds of the producers in number state or foreign commerce in such commodity or
or volume of product affected by the plroposed pfoduct thire?f." This is more sweeping than the
marketing agreement shall approve. T is pro- c ause in t e icensing section of the resent law,
vision means that the producers can impose their although slightly less so than that inpthe present
will upon another economic group, the processors. marketing agreement section.
The debate in the House indicated that it is
Terms of Orders the intention to apply control through market-
Regimentation ofindustry as well as agriculture me eereemeete eee ereere ee eaeeeeeeleee mee _
is made possible under the terms of orders. Under ;rI;£_ir€e;1glge;r2§ Egelerliegelfiees (;?;€g§l1`·_d {hee; lf
the resent law the terms and conditions to . T .   _e 1`eeemg
whicg licensees are subject are left to the discre- Stef? heee> the pmeee exed Wm be mleeded ee
tion of the Secretary of Agriculture. In the gpp Y eere?gh.eul° the mee ee all Selee by Pre`
light of the Supreme Court’s rulings with respect 1ueere> me eemg these ef mdk which deee eel?
to the unconstitutional delegation of power in ’ eeggg e'1etel°e‘ ,
the National Industrial Recovery Act, the fram- e ewyere ef the AAA Wm be eeeed ePen
ers of the bill have specified the administrative lg prelve te the eeurte mee me <><>¤*¤¤1_¤f Pmeee
procedure to be followed and the terms which _ O mlk ee the farm directly eeeete meemtete
may be included in the orders. ge£1I;€e§ge‘thE eggéteeclglee eCeae1e1e1,3heft;°.ef Sjgcpreeie
· · · r se, e 1 a em s
Wm§hm§?§p;;gt§cSH£)1Ii1§&uIiJ1;1SC€I;&?eE)7€bgogggg gl; continued control of production, subject under
handlers from producers. The price—fixing au- eee.Ceee}e)°u}°1ee emY ee State Yeguleelem as
thority does not extend to sales by handlers. eéetmgefeeee frem eemmeree which le Wlmm
There is permitted the fixing of minimum prices tt e1,éuH°e1eeee.ef tee Federal elevemmee-Je-
to be paid by the first handlers of fruits, vege- . te eeeeelieueleee ley ef me bm as Wee as ef
tables, tobacco and the other commodities for exle mg aw le epee ee eemeee qeeeeled
which orders may be issued. `
An elaborate system of allotments and quotas Other Provisions
is provided with respect to the commodities A th . . f .1 . ,
other than milk. The orders may limit the total Whi£er§1€hOIeiIg g¤,E;1¤gjéi(;;¤§tb1 f1Of?O$ViS§§e1§§
uantit of a commodity of any grade or size . . . . > . .
gihich may be marketed or transported to mar- lnxelejiggtlee tby fthe hTef1ff Cemmleeleer ee
ket during specified periods, the quantity which eel? lei que 2*5.13. er Je e impereeleee, efuegrl"
each handler may purchase from producers, and eu 'urte eecmme,} 112; er .t’e lmleeee epeelel eem'
the quantity which each handler may sell. Pro- peeee mg e‘Xee‘ <·>_h1eh1y eeeeeehetle Em`e'
vision may be made for the control and disposi- §eeel;lueeefeYeeem>lWh1eh Weme be thus ad¤pt€d»
tion of surpluses and for the establishment of thee Aeee. reeeéety eeeeeeeee by eiiciais ef
  pools Of cemmedm ai br?§§é°§L‘t. OFZZEEEQZEEOSSI »$F§$§“’“J““g “’
The farmer as well as the processor and . . ` ·
handler is affected by the orders despite a clatflse anglegl tzggegegzgeilgecz eigrplegee;1e;°m;fri&§ei§Y€§;
which says that "no order issued under t is ’ . . .
title shall be applicable to any producer in his eefeuregemeee ef.}°.he expemeeee ef meler egd
capacity as a producer." The quotas and allot- i eu tum. eemmeemee by leeymg eeeeete and
ments restrict the marketing possibilities for the ledemmfyleig feeeee le eeeeeeelee with Such eX'
farmer. If he has no outlet for his product, he gJ¤;;;;1i<;3géb}}¤§d11;;>Ig;tj;<3£¤€¤&jg;j¤;;¤;£p1¤;g1;;
IS gejggggjg O(;;Tl§'gh§1%;(EIE1qC;;({)I;`COm€S gu uhandlelm McNary-Haugen or export debenture farm relief
of his own products, he may be subject to the pleee releeeee m Yeere Peet by me Ceegreee
tgrms Of Orders The fund, estimated to amount to about $100,-
` 0.00,000, also miglgt be used to encourage domes-
Interstate ¤¤mm¤*¤¢ ll‘Zs€$£sZ“‘?fZl£§“¤Jmilveiféii€i§“§?ll§Z$€ °ZIE&
The bill provides that marketing agreements commerce such as by purchase for relief dis-
and orders shall relate to commodities "in the tribution and also for the retirement through
current of interstate or foreign commerce, or so purchase or lease of submarginal lands.
g Another provision, which, like the 30 per cent
9

 _   I ` RNC i
fund, was in €aYha1‘ drafts af tha bluv gwaa ~ Increases in retail prices of food during the
authorization for adoption of the so-called l eanne neiied include an advance ei neeie than
“€V€f-n0Yma1 gI`ahaI`Y’_’ P1ah· _ 90 per cent for pork chops, about 40 per cent for
Thn P0W€1‘ g1Yah lh aahhar {hafta ta the steaks and also for rice, more than 45 per cent
Secretary of Agriculture to examine books and iei. corn meal, nearly 75 nei. cent for vvlieat ileni.,
records of parties to marketing agreements and ineie than 30 nei. cent iei. better and about 15
licenses is retained in the present b1ll with _ nei. cent ici. inilln
1‘€SP€0t to markatlhg agfaamahta and, F”’daI`S· ‘ The processing taxes have contributed mate-
This is one of the most dangerous provisions of iiallv to higher costs ei living.
the m€a§u1“€· _ _ Under authority of the present Act the Secre-
The blu P1`0V1daS that ah Partlaa ta any mal" tary of Agriculture has levied taxes on the first
keting ag1`€€m€ht ahd ah hahahaha aublaat ta domestic processing (manufacturing) of wheat,
an order shall furnish to the Secretary of Agri- eetten, COTH, lieeei tebaeee, Sugar and peanuts.
culture such information as he finds to be neces- Feineing Very heavy Sales texeei thelse ere paid
SMY to Ghahla hhh to datamhha tha aataht ta Le in the first instance by the millers, packers and
which the t€1`1nS have baah a0mPhad Wlth and other processors (manufacturers). Necessarily,
whether th€1"€ haS been ah5f abuse at tha PI`1V1‘ the processing taxes are a part of their costs and
lege of exemptions from anti-trust laws. For the music be peeeed en to the public to as greet an
Pu1`P0S€ of asaaftahhhg tha aarraathaaa af ahY ' extent as is possible under competitive conditions.
1‘€p01`t and to obtain ihfairmatiah 1`aalhaatad but Through the processing levies the consumers of
nut fu1‘niSh€d, th€ S€01`€ta1‘Y is ahthamzad ata particular commodities, making up one class of
examine Such books, P9·P€1`S, 1`€001°dS» aaaahhta citizens, are taxed for the benefit of another class.
correspondence, contracts, d0cum€ntS, 0I` In€In0· The taxes paid by the processors go into the
randa, as he deems relevant." Treasury but are segregated for use in payment
Under this broad authority the Secretary of gf agrjgultural b€n€§tS_
Agriculture may indulge in "flshing exped1t1ons" The processing taxes of 30 cents per bushel on
in the books of processing and handling indus- wheat and 4.2 cents per pound on cotton are sales
tries. There is no occasion for such power mas- taxes equal to approximately one-third the farm
much as existing legal procedure oHers a way price of these commodities. The taxes of $2.25
in which the Secretary can obtain any necessary per hundredweight on hogs, 5 cents per bushel on
information. Such authority as is proposed corn, 6.1 cents per pound and less on different
would lead to serious abuses. grades of tobacco, one-half cent per pound on
sugar and one cent per pound on peanuts all form
Higher Costs Of Living substantial imposts from the standpoint of per-
centages of the commodity prices.
Consumers have reason tc {biz abware of the
higher costs of necessities o ie y reason o · ·
the operation of the AAA. NO Urgcncy for Lcglslatwn
During the debate in the House the chairman The sponsors of the pending bill have failed to
of the House Committee on Agriculture offered I show good cause for its enactment. Agriculture
a tabulation to show differences in farm prices has had too much regimentation. There is need
of basic agricultural commodities in December, for a curtailment of the authority of the AAA
1932, and on May 15, 1935. . rather than for expanded powers. The passage
According to these ligures the price of wheat of further legislation should properly await de-
advanced from 31 to 87.8 cents a bushel, rye cisions by the Supreme Court on the validity of
from 21.1 to 62 cents a bushel, barley from 19.3 l the present law. In the light of such decisions
to 66 cents a bushel, cotton from 5.4 to 12 cents ' the Congress can act intelligently. Enactment
a pound, corn from 18.8 to 84.8 cents a bushel, of the pending measure at this time would be
hogs from $2.73 to $7.92 per hundredweight, beef as futile as would have been a revision of the
cattle from $3.41 to $6.80 per hundredweight, National Industrial Recovery Act prior to the
rice from 40 to 86 cents a bushel, peanuts from decision in the Schechter case.
1.2 to 4.4 cents a pound, wholesale milk from .
$1.26 to $1.73 per hundredweight, butterfat from
21.1 to 27.5 cents a pound, butter from 21.3 to·
27 cents a pound, and tobacco from 10.5 to 22
cents a pound.
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