Salt Lake Telegram | 1935-11-25 | Page 1 | High Court Halts AAA Tax

i HIGH COURT HALTS A AA A A TAX Rice Millers Get W Writ rit 1 To Bar Processing Levy I Until Validity Ruling RulingS Crop Control Funds May Face Crisis in Contracts s J Ey By United I Press WASHINGTON ASHINGTON Nov Noy 25 25 Tho Tho United States supreme me court dealt dealta a severe blow to the now new deals deal's farm and fiscal programs today by granting the pica plea of Louisiana rice rIco millers for foran an m against processing taxes under the A A A amendments The courts court's action applied only to the rice processing taxes but V was expected to result in quick legal action by other processors to halt collection of virtually all processing processing- levies With processing tax revenues al already al ready dwindled to a trickle by hampering legal actions the courts court's ruling gave the treasury the serious problem of finding new funds with which to finance the huge A A A benefit payments Fears of eventual adverse supreme court action on the final question of the constitutionality of the whole A A A program were ivere intensified Attacks to Spread While the temporary injunction granted by the court applied specifically specifically cally only to the 1 cent a pound rice rico processing tax paid by the ight eight Louisiana millers who brought tho the action it was expected to result in almo almost t universal application of processors to the tho courts for similar relief Tho The injunction in the rice case caso today will remain in force un until 1 tho the supreme cour court acts on a review pe petition pe- pe titi n which raises the question of the right o of taxpayers to sue to re restrain restrain restrain re- re strain collection of a tax which they contend is unconstitutional The court announced it would hear argument on this petition December December December Decem Decem- ber 16 The government has contended that taxpayers must pay first and andi i then sue in the tho courts for a refund Such a procedure was specifically provided in the A A A A amendments but taxpayers contended that a a. provision provision provision pro pro- vision against refund unless the tax had not been passed on made the guarantee without value Meanwhile the state of Arizona resumed its battle against the Boulder Boulder Boul Boul- der dam project and the apportionment apportionment apportionment apportion apportion- ment of waters in the Colorado basin Upholds Ouster Action The supreme court also ruled In favor of ot action taken by the state of ot Virginia to force torce removal of mountaineers from the homes where they have lived for many years tomake to tomake tomake make room for a summer playground play play- ground The Blue Ridge families had refused to budge from tho the mountains The court then recessed for two weeks in which to write opinions on on cases already argued When it returns the heaviest legal firing tiring of ot the new deal regime will open Legality of the original A A AA A A act will be bo argued and the tha court will hear bear a demand that it outlaw the tho Tennessee Valley Au thorit Decision of the tho court on the rice a tax Lax injunction was not unanimous Justices Louis D D. Brandeis Harlan P. P Stone Stono and Benjamin N. N Card Cardozo o odi di dissented With more than 1000 suits challenging chal- chal longing the processing taxes already filed fled and collection of some in ta taxes es held up the tho tax blockade was expected to furnish trea treasury ury officials a serious erious problem