I. A. A. Counsel Says 

 Court Reasoning Would 



Hit Industrial Tariff 



DONALD 

 KIRKPATRICK 



Donald Kirkpatrick, general counsel, 

 substituted for President Edw. A. 

 O'Neal of the American Farm Bureau 

 Federation, Feb. 24 in addressing the 

 Agricultural Club of Chicago. Mr. Kirk- 

 patrick spoke on the new farm program. 

 "Following the 

 line of reasoning of 

 the Supreme Court 

 in the Hoosac Mills 

 case," Mr. Kirkpat- 

 rick said, "It is 

 doubtful if our pro- 

 tective tariff legisla- 

 tion beginning in 

 1789 would have 

 been held constitu- 

 tional. In nearly a!l, 

 if not all, of the va- 

 rious tariff acts of 

 the past 100 years, in the purpose clause 

 Congress expressed its intention to pro- 

 mote, protect and encourage industry as 

 well as to secure revenue. 



Pointed the Way 



"In the Hoosac case the Court held 

 that agricultural production is a local 

 matter and its regulation not a proper 

 function of the federal government. The 

 Court, following that line of reasoning, 

 might also have held that industry is 

 a local matter, the protection and en- 

 couragement of which is not a proper 

 function of the federal government. 



"In that decision however, the Court 

 apparently pointed the way for Con- 

 gress to enact a farm program to be 

 carried on jointly by the federal gov- 

 ernment and the several states, and 

 based upon this line of reasoning the 

 bill embodying amendments to the Soil 

 Conservation Act of 1935 was drawn up. 



"Our greatest natural resource is the 

 fertility of our soils. Surely it is a 

 proper matter for the federal govern- 

 ment to carry on a soil conservation pro- 

 gram for the benefit and protection of 

 the present and future generations." 



Commenting upon the impounded 

 processing taxes turned over to the 

 processors by the Supreme Court, Mr. 

 Kirkpatrick said that he had suggested 

 to the president of the Corn Industries 

 Research Foundation that the corn 

 processors, by public announcement, ask 

 all persons who have a claim against 

 such processing taxes to come forward 

 and prove their right to it; that after 

 a period of time any funds remaining 

 be covered into the federal treasury. 

 This was done, he said, in the case of a 

 number of oil distributors who had col- 

 lected gas taxes before the first Illinois 

 motor fuel tax was declared unconstitu- 



tional. Later the money not claimed was 

 turned over to the state treasury. 



The Agricultural Club of Chicago is 

 representative of the various agricultur- 

 al trades, farm groups and allied in- 

 terests in the city. A number of meat 

 packer representatives attended the 

 meeting. 



Sanitary Milk Producers 

 Win With New Sales Plan 



Illinois Leads in Con- 

 gressional Support of 



Farm Legislation 



(Continued from page 7) 

 of Moline, a charter member of the 

 1. A. A., and Chester C. Davis, former- 

 ly a member of the I. A. A. staff in 

 organizing farm leadership of the coun- 

 try behind the McNary-Haugen bill, is 

 well known. 



Back in 1924, when leaders in Con- 

 gress doubted the interest of Illinois 

 farmers in the equalization fee plan, 

 and the propriety of Sam H. Thomp- 

 son, then president of the I. A. A. to 

 speak for the organized farmers of 

 Illinois, more than 100,000 signatures 

 were secured to petitions within a few 

 days urging Congress to support the 

 legislation. 



Following successive vetos of the 

 first and second McNary-Haugen bills 

 passed by the Congress, Illinois Agri- 

 cultural Association leadership again 

 asserted itself when in 1928 the fight 

 to secure the adoption of farm planks 

 approving the principles of the equal- 

 ization fee legislation was carried to 

 the Republican and Democratic Na- 

 tional Conventions. 



I. A. A. Leads Fight 



At Kansas City in June 1928, Presi- 

 dent Earl C. Smith led the fight on the 

 Resolutions Committee at the Repub- 

 lican Convention for the equalization 

 fee plank. When the committee, dom- 

 inated by the Industrial East point of 

 view championed by Herbert Hoover, 

 voted against adoption of the plank 

 urged by organized farmers, Mr. Smith 

 carried the fight to the floor of the 

 convention delivering the minority 

 report. 



When the minority report was re- 

 jected by the delegates, Frank O. 

 Lowden ■withdrew his name from con- 

 sideration as a candidate for president. 

 Senator William E. Borah of Idaho up- 

 held the majority farm plank approved 

 by Mr. Hoover in a speech before the 

 convention. Senator Robt. M. LaFol- 

 lette of Wisconsin delivered an ad- 

 dress supporting the minority plank. 



When the Democratic Party nomi- 

 nated Al Smith at Houston, issues 

 other than the merits of the respective 

 party planks on agriculture were in- 

 jected into the campaign more or less 

 overshadowing the farm problem. 



Organized dairymen around St. Louis 

 have another victory to their credit. A 

 new marketing agreement went into 

 effect February 1. Farmers voted over- 

 whelmingly for it in a referendum de- 

 spite severe opposition. It provides for 

 a more simple plan of payment for milk 

 of which there will be only two classes. 

 The Sanitary Milk Producers engineered 

 the new marketing program. ^ 



Class I milk is all milk sold by han- 

 dlers as milk containing not less than 

 one-half of one per cent butterfat. Class 

 II is all milk sold or used by handlers 

 in excess of Class I. Distributors must 

 pay producers not less than $2.10 per 

 hundredweight for Class I delivered to 

 plants in the marketing area. The price 

 outside the marketing area is $2.10 per 

 hundredweight less an amount varying 

 from 16 cents within 20 miles of the 

 City Hall to 20 cents at 40 miles away 

 with one cent additional deducted for 

 every 10 miles beyond 40. 



The price for Class II milk per hun- 

 dredweight will be computed by multi- 

 plying the average 92 score Chicago but- 

 ter price by 3.5 plus 30 per cent, plus 16 

 cents. For Class II milk delivered to 

 plants outside the marketing area, the 

 price will be the same as above less 15 

 cents. Milk used for evaporated in cans 

 will bring the national marketing agree- 

 ment price. Three cents per hundred- 

 weight is added or subtracted for each 

 one-tenth of one per cent of butterfai, 

 content above or below 3.5 per cent. 



While the total popular votes polled 

 by Hoover and Smith were close. 

 Hoover won an overwhelming majority 

 of the electoral votes capturing the 

 com belt, the west, and making sub- 

 stantial inroads into the solid South. 



The Illinois Agricultural Association, 

 preceding enactment of the Agricul- 

 tural Adjustment Act, again took a 

 leading part toward including com and 

 hogs as basic commodities in the bUl. 

 Following enactment. President Smith 

 served as chairman of the National 

 Corn Hog Committee which presented 

 a program for adjusting the supply of 

 these commodities more nearly to the 

 demands of markets at reasonable 

 price levels. 



Again, in organizing support for and 

 writing the principles of the new fal^n 

 program to replace the Adjustment Act 

 invalidated by the Supreme Court, the 

 Association was recognized in the se- 

 lection of its president as chairman of 

 the Committee of Thirteen represent- 

 ing practically all farm groups and 

 commodity organizations in the coun- 

 try. 



H--::. 



I. A. A. RECORD 



