Indianapolis Times, Volume 47, Number 259, Indianapolis, Marion County, 7 January 1936 — Page 6

PAGE 6

DROP IN PRICES IS LIKELY SOON. OBSERVERS SAY processors, Business Men Cautious in Comment on AAA Upset. By Unite 4 Prc CHICAGO. Jan. 7.—The housewife will pay less for flour, sugar, meat and other food products as the result of the Supreme Court decision overthrowing the AAA, observers agreed today. Opinions differed as to whether the reductions would come at once or would be graduai. Food processors were cautious in commenting concerning immediate reductions. Changes wrought by the decision Were so complex that business leaders were wary of predicting the ultimate significance. "It is probably a mistake to assume that there can be an immediate response to the Supreme Court's action," said Siebel C. Harris, member of a leading grain commission firm. “It seems to us that millers will want to take a day or two to find their bearings. Before making sales without the processing tax included, millers will want to be absolutely satisfied that they are on firm ground." Forecasts Early Slash Nat Milgram, head of a Kansas City chain store group, predicted that commodities in competitive markets, such as flour and sugar, would be reduced the amount of the processing tax within 24 hours in cash stores. “I expect to sell a 24-pound sack of flour for 17 cents less and a 100-pound sack of sugar for 53 cents less.” Milgram said. “We can’t tell about pork products although they ought to go down. With two or three packers holding a monopoly we don't know whether they’ll cut.” Thomas E. Wilson, chairman of the board of Wilson <fc Cos., predicted a wholesome effect on the livestock and meat packing industries. "Helpful to All Interests” "Many packers early last year began to doubt the validity of the processing taxes.” Wilson said. "Having the matter finally settled is bound to be helpful to all the interests concerned the producer, the packer, the wholesaler and the consumer.” Hog prices advanced sharply at the Chicago Union Stockyards after commission men learned the packers would not have to pay the $2.25 per hundred pounds processing tax. Final quotations were 10 to 25 cents above the close of last week after an early loss of 25 to 35 cents had been cancelled. Commission men locked up hogs, anticipating further prive advances. Observers believed the increase would not equal the amount of the tax, thus assuring lower prices to the consumer. Predicts Lower Prices Louis Palmer, Kansas City meat jobber, predicted a stimulation of meat sales and easing of meat prices. “The general feeling is that there will be no radical decrease in prices, but that gradually they will go down.’’ Palmer said. "The first to go will be the three and a half cents processing tax that we pay. We also feel it will stimulate our business.” C. T. Revere, cotton expert, predicted the decision would stimulate the purchase of cotton goods. "Prices probably will not be reduced by the full amount represented by the tax.” Revere said, “but the reduction should be sufficient to stimulate consumption materially." DR. MORGAN ISSUES PNEUMONIA WARNING Points to 24 Death* in City So Far in January. Dr. Herman G. Morgan, city Health Board secretary, reports 24 pneumonia deaths in Indianapolis so far in January, and urges citizens to take precautions to protect themselves. “The majority of pneumonia cases,” said Dr. Morgan, “results from weakness caused by common cold. Failure to heed the cold as a forerunner of pneumonia is largely responsible for the present high mortality rate.” MUSIC GROUP ELECTS Men Builders’ Glee Club Names New Officers. New officers of the Glee Club of the Christian Men Builders Class of Third Christian Church are to be installed at the annual banquet tomorrow night. Harold Traylor, president; Wilbur Herbert, vice president; Newt Werner, secretary-treasurer, and John Hockenbaugh, liberarian. are to be introduced by Robert F. Cook, retiring president. Does Bladder Weakness WAKE YOU UP? Maks this test. Remove the cense. Use buctiii leaves, ju ni|>or oil, etc., to flush out excess acids and impurities which causes irritation that results to restless nights, irregularity irritation, or backache. Ask for little green tablets railed Hukeis, the bladder lax. They work on the bladder similar to castor oil on the bowels. In four days if not pleased any druggist will refund your L’.V. Hook's Dependable Drug Stores.—Advertisement.

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Farm Leaders Divided on Overthrow of AAA by U. S. Supreme Court

Several Rejoice Over Action by Jurists but Others Are Resentful. by l nil) it /’/< * CHICAGO. Jan. 7. Leaders of farm organizations offered widely I varied comment today on the Su- ; prune Court decision outlawing I AAA. Milo Reno, Des Moines, critic of ! the New Deal and president of the Farm Holiday Association, urged his ! organization to “sue the government to regain confiscatory tax penalties." National and state officials of the American Farm Bureau Federation who have indorsed the AAA, said their members would demand that Congress enact substitute measures. Stanley F. Morse, executive vice president of the Farmers’ Independent Council, said the decision was a victory for farmers. Grateful to Court “Farmers can thank the Supreme Court for having delivered them from the insidious plottings of Tug well and his followers in the Department of Agriculture,” Mr. Morse said. “The AAA was a bold scheme which proposed to bring the farmers under increasing government control until American agriculture had been collectivized under the Russian communistic model. “It is time for all patriotic, sensible American farmers to repudiate racketeering leadership and support a farm program based on common sense, sound economics and real Americanism.” E. D. Woodruff, president of California Lands, Inc., a major operator of farm properties, regarded the decision as a blow. “Asa farmer. I can say emphatically that despite the Supreme Court ruling, the objectives of the AAA are a vital necessity to agriculture,” he said. Holds Michigan Helped Other comment: James F. Thomson, Michigan agricultural commissioner: “The state as a whole will be economically better off without the AAA. Michigan has contributed $2.50 for every dollar received in benefit payments. Less than onethird of our farmers are participating in the AAA.” J. s. Jones, secretary-treasurer of the Minnesota Farm Bureau Federation: “There is general regret that the AAA has been wiped out in its entirety. There is no question that farmers will demand vigorously something in place of the act. They have learned what production control can do. They also have learned what can be done to control surpluses. Holds Substitute Needed “There doesn’t seem to be any doubt but that some vehicle must be developed to take the act's place. T would suggest possibly an export stabilization control plan, maybe a corporation to handle, control and dispose of a percentage of each basic crop produced over and above domestic consumption. The AAA has demonstrated that surpluses can be controlled.” Frank O'Connor, general agent of the Omaha Farm Credit Administration: “We who are deeply concerned in the welfare of American agriculture are disappointed in the decision but as good citizens we accept it as the law of the land.” Thinks Majority Pleased H. G. Kenney, president of the Nebraska Farmers Union: “It is what we all expected and is in line with the ruling on the NRA. It seems to be what the farmers wanted. I believe the majority have been against it and hoped we could get away from the whole thing.” J. E. Crosby. Missouri state agricultural extension agent: “There is a possibility there will be no letdown in a nationally controlled agricultural program for Missouri since the government has two to three months before the oid contracts are paid in which to formulate anew plan.” Industry Given Warning A. S. Wendel, president of the League for Economic Equality, farm organization formed last August to defend the AAA: “We will fight to the last ditch to retain AAA principles. And if we

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can not place the farmer on an j equality with industry, then our ' course will be to pull industry down | to the farmers' level, to overthrow industrial tariffs.” R. M. Evans, lowa com-hog committee chairman: “lowa farmers will demand a conrtitutional amendment to replace the AAA.” NURSES ASSOCIATION TO MEET TOMORROW Officers to Be Elected at Afternoon Session. Annual meeting of the Central District Group of the Indiana State Nurses Association is to be held tomorrow in Banner-Whitehill auditorium. Officers are to be elected at a business session at 2. Candidates are: For president. Miss Aurelia Willers; first vice president, Anna Lampkins and Mary Robertson; second vice president, Josephine Doup and Vera Korff; secretary, Grace Wiiwer and Hazel Johnson; treasurer, Mabel Kuse and Ruth Zinkan Fife, and directors. Sister Andrea, Lelia Stokes, Margaret Torr and Emma Hannafin. Miss Willers, 1935 district president, is a native of Lawrenceburg and a graduate of Indiana University School of Nursing, where she is an instructor. Following the business session, Miss Helen Teal, National American secretary and state association executive secretary, and Miss Eva MacDougall, director of the Bureau of Public Health Nursing in Indiana, are to speak. Tea and a social hour are to follow. OLD-AGE PENSION IS TOPICjOF ‘V DEBATE Club to Meet at 7 Tonight to Hear Discussion. The Townsend old-age pension plan is to be the topic of a debate for Y. M. C. A. Debating Club inembers at a meeting at 7 tonight in the “Y” building. The plan is to be upheld by E. H. Looker. J. H. Wayman and H. H. Williams. Opposing speakers are to be George Horton, George Letzler and Clarence Miller. Louis Rosenberg is to be judge and critic. OFFICERS GIVE PARTY Altar Society of St. Philip Neri Church Arrange Event. Double card party sponsored by retiring officers of the Altar Society of St. Philip Neri Church is to be given at 2:30 and 8:30 tomorrow in the school auditorium. Mrs. Daniel Foley, retiring president, is to be card chairman. Mrs. Carl Knorzer is to be in charge of a food sale in connection with the afternoon party.

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FIGHT ON, WITH GLOVES OFF, IS O'NEAL WARNING American Farmers Not to Stand Idly By, Bureau Head Declares. BY EDWARD A. O’NEAL Pr.sident, American Farm Bureau Federation. Written for the United Press CHICAGO. Jan. 7.—The fight is on and this time all gloves are off. Those who believe the American iarmer is going to stand idly by and watch his program of economic qua.ity and parity for which he has fought for more than a decade swept into the discard as a result of the Supreme Court decision invalidating the AAA, will be badly m staken. I consider this decision a stunning blow to national economic recovery. The program launched by organized agriculture must go forward. The American farmer will continue to fight for economic parity. Under the operations of the Agricultural Adjustment Act, the agricultural march toward parity, by giving farmers a purchasing power, has stimulated business revival throughout the country. We are going to look to Congress to take specific steps which will provide by legislation the mechanism by which agricultural parity is to be continued. It is up to Congress to provide that legislation within the provisions of the Constitution. Written by Farmers If the Constitution in its present form makes it impossible sci all groups to enjoy economic equality, steps will be taken immediately to amend the Constitution so that the rights of all groups and of all citizens will no longer be jeopardized. The program which has just been overthrown by the court’s finding is the farmer’s own program. It was written by the farmers, and by no one else. Those who attacked this program are enemies of the republic. By their selfish attitude and their un-American spirit, they have left no stone unturned to keep the farmer impoverished, to reduce him to a state of peasantry, and to re-

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High Court AAA Decision Is Explained by Answers to Pertinent Questions

Justices Call Plan Void Because It Invaded States’ Rights. By United Prree WASHINGTON. Jan. 7.—Here are some highlights of the AAA situation resulting from the Supreme Court decision, in question and answer form: Q —What was the AAA? A—A complicated system set up by the New Deal under which farmers were paid for reducing their crops. Money to pay the farmer was collected as a tax on the products he grew when they were manufactured or “processed.” Q —Who paid processing taxes? A—The taxes were collected from the processors such as flour millers or cotton textile spinners. The question of who ultimately paid them was disputed. Some processors said they paid all or the greater share of the tax. In other instances the tax was passed on in the form of higher prices to consumers or lower prices to producers Q —Why did the New Deal set up the AAA? A—To reduce crop surpluses and give farmers a. bigger share of the nation’s income. Q —Why did the Supreme Court take this action? A —Because it held the powers the Federal government was using had tard the whole program of national economic recovery. Praises Stone Opinion I eagerly subscribe to the dissenting opinion delivered by Justice Stone, in which he said, “For the appeal from unwise laws the recourse is not to the court, but to the ballot.” The board of directors of the American Farm Bureau Federation will meet in Washington this week to consider plans for an immediate fight. Mass meetings of farmers to develop a program for the immediate future probably will be scheduled at once. My greatest concern is to keep our people judiciously tempered from now cn. That the decision will make the American farmer “see red” is a foregone conclusion.

been reserved to the states by the Constitution. Q —What did the Supreme Court do? A—lt threw out the whole AAA plan. Q —What power did the government rely upon to uphold the AAA? A—lt claimed the plan was constitutional under the “general welfare” clause. Q —What action did the government take as a result of the decision? A—The Treasury, for the time being at least, stopped collection of processing taxes and payment of benefits to farmers. Q—How does this arfect Mrs. Jones when she goes to the grocery to buy a loaf of bread, a pound of lard, five pounds of sugar and half a dozen pork chops for dinner. A—Mrs. Jones probably won't notice any difference in prices today because taxps have already been paid on goods now in the grocery. Very soon, however, prices for these foods should drop to the extent of the tax which previously had been paid on them. Q —How about wholesale prices? A—They will fall by the amount of the processing tax almost immediately. For example, flour millers said that their prices probably would drop $1 a barrel today. The processing tax on a barrel of flour amounts to $1.36. Q —How about farmers who contracted to reduce their crops and still have checks due from the government? A—The Treasury stopped all AAA benefit payments. However, Congress later may appropriate funds to pay farmers under existing crop control commitments. Q —What crops are affected by the court’s decision? A —Cqtton, tobacco, wheat, cornhogs, sugar, rice, peanuts, rye, milk, flax, barley, cattle potatoes. Q —What about contracts made HAVE COLOR IN CHEEKS If your skin Is yellow—complexion pallid—tongue coated —appetite poor —you have a bad taste in your mouth—a lazy, no-good feeling—you should try Olive Tablets. Dr. Edwards Olive Tablets—a substitute for calomel—were prepared by Dr. Edwards after 20 years of study. Olive Tablets are a purely vegetable compound. Know them by their olive color. • To have a clear, pink skin, bright eyes, no pimples, a fpeling of buoyancy like childhood days, you must get at the cause. Dr. Edwards Olive Tablets act on the bowels like calomel —yet have no dangerous after effects. They help overcome constipation. Try th°m and note the pleasing results. Millions of boxes sold j'early. toe, 30c, COc.—Advertisement.

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with the AAA by farmers to hold down their 1936 crops? A—These contracts probably will go into the discard. Q —What happens to the S2OO 000,000 in processing taxes now tied up by the courts? A—This depends on a future ruling by the Supreme Court in a case brought by eight Louisiana rice millers and still pending. For the present the monies will continue to be held In escrow. Q —What effect will the court decision have on government finance? A—This depends on Congress. If no more money is paid to farmers, the Treasury will break just about even as taxes virtually balanced

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payments If Congress decides to pay the money contracted with farmers, new taxes probably would be imposed to raise the funds. Q—How about the 6646 folks who work fbr the AAA? A—The Treasury has stopped their pay. The future of their jobs waa regarded as most uncertain.

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