Show Supreme Court Holds I Agricultural ActU Act Unconstitutional U BUDGET MESSAGE GE THROWN OUT OF BALANCE BY RULING The U U. S. S Supreme Court the nations nation's highest tribunal killed th the tha Agricultural Adjustment Act In a 6 to 3 decision Monday The Court held that th the whole act Is la unconstitutional in that it invaded invaded ed the rights of the states in inse se seeking king to control farm production tion tion President Roosevelt's 1937 budget budget budget bud bud- get message was thrown seriously off balance when the whole system system system tem of processing taxes 9 imposed to finance the program was WM swept into discard The President estimated estimated estimated receipts at including including including in in- in processing taxes He said that with this sum he could run the government and have hav left over but ho he forecast a deficit because of relief relief relief re re- lief requirements l of from one to three billion dollars More than in processing processing processing pro pro- taxes was collected In the 32 months of AAA operation Most of it authorities said was paid out to farmers in benefit benefit checks Benefit Payment a Stopped AAA Administrator Chester Charter Davis stopped all benefit payments payments payments pay pay- ments until further Instructions as soon as the Courts Court's opinion was read Moneys collected from processors processors processors pro pro- and not yet expended he said aid would remain in the treasury treasury treas treas- ury pending further court action The majority opinion was signed sign sIgn- ed by Justices Owen J. J Roberts Willis Villis Van Devanter James C. C George Sutherland i Pierce Butler and Chief Charles CharlesI I Evans Hughes It said in effect that c congress did not have power ver under the constitution constitution constitution con con- to authorize the government government government govern govern- ment to regulate the amount of cotton corn hogs wheat peanuts peanuts peanuts pea pea- nuts rice or other products products' any any I man can raise on his farm Also the court held the congress had no Tight light to tax one group of citizens citizens citizens citi citi- zens in this case the processors to pay another group in this case the farmers for cooperating with the government The opinion pinion riled rul rul- ruled ed cd the program was not voluntary Dissenting Opinion The dissenting opinion was signed by Harlan F F. F Stone Benjamin Benjamin Benjamin Ben Ben- jamin N. N Cardozo and Louis D D. D Brandeis It Il held that the government government government govern govern- ment was perfectly within n its rights In seeking to reduce rC luce crop surpluses raise farm prices and bring stability to agriculture Processing Processing Processing Pro Pro- taxes taxes It was maintained were justified under the general generalI I welfare clause of the constitution Opinions vary as to how the Courts Court's ruling will affect Utah however most farm fann leaders in inthiS inthis inthis this state feel that its effect willbe will willbe be devastating Joseph A. A A Anderson president of the Utah State Farm Fann Bureau federation said the decision will demand for new legislation legis legis- lation Tracy R. R Welling Velling executive sec- sec Continued on Page 8 m. m Supreme Court Holds Agricultural Act Unconstitutional Continued from Page 1 rotary of the federation described the decision as the greatest blow received by farmers in the history of the nation Blow To Farmers H. H A A. A Benning vice president of of nf the ilia lin Amalgamated Sugar Su ar Co n g g expressed the view that with the decision out of the way there will be a gradual strengthening of the sugar market and that as far faras faras faras as the beet sugar industry is concerned concerned concerned con con- the decision will not be the cause of any particularly ill effects ef er- I I Joseph A. A Anderson president of the Utah State Farm Bureau stated stated that even greater than the direct benefit payments between and have been indirect benefits to Utah farmers through advances in inI I prices for agricultural commodities I ties du due to the AAA program These Thes indirect benefits coupled with the reduced valuation of the I dollar have it is estimated brot brotan an an additional in higher prices prices obtained for farm products to to farmers of Utah since the be be- ginning o of the AAA program President Roosevelt reported on Wednesday his only decision so far faris faris faris is to ask congress to reimburse farmers for suddenly terminated AAA con contracts trac Secretary Wallace however called 70 farm leaders to the capitol capitol captol cap- cap itol tol for a conference today Friday Friday Fri Fri- day and Saturday to to discuss plans for agriculture in light of he the supreme court decision L |