The Archive · 1936

SUPREME COURT AGAIN RULES AGAINST NEW DEAL]

Washington, Jan, 13.

'A ten-minute session of the United States Supreme Court to-day cost the New Deal $200,000,000 in the form of processing taxes on agricultural commodities, left the status of $1,000,000. '000 worth of other processing levies doubtful, and avoided a direct ruling! took place. in. the royal fon the' legality of the "Bankhead Cotton. Control Act which, for. purposes of clarification. Administration caders had earnestly: desired.

Firstly, in the sult brought by eight Louisiana vice millers to determine the status of processing taxes on rice, the highest American court held that Processing taxes pald into escrow Under Injunction" suits brought figainst the Government must be re= turned to the processors.

Tha justices failed to decide on the validity "of the amendment to the Agricultural Adjustment Act which requires processors to show that the tax has not been passed on to the consumer, before they are allowed recover the amount of the tax pald. Thus, the question as to whether processors can recover $1,000,000,000 fin processing taxes already paid to the Government remains undecided.

"The Court, on technical grounds, Aismissed the sult brought by Mr Lee Moor, Texas cotton grower, question= ing the validity of the "Bankhead Cotton Control Act. The question, however. will arise again on January 20, In the arguments on. the suit

Text read from the printed page and cleaned; old type leaves the occasional error.

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