574

{ AGRICULTURAL RELIEF
The CuAIRMAN. If it gives him 40 cents net profit, I am at a loss
to understand where the tax comes in.

Mr. ANDERSON. Any corporation which is paying a tax out of
profits considers he is paying a tax.

Mr. AsweLL. What about the income tax on a corporation; would
that be a tax, if it made a profit?

Mr. ANDERSON. Evidently according to the chairman’s theory it
would not; I think it would be.

The CuAIRMAN. We need not argue that; we need not argue that
a profit of 40 cents is a tax.

Mr. AnpErsoN. If he could get now, and he does sometimes, the
foreign price plus the full amount of the tariff—and under this bill he
will get the foreign price plus the full amount of the tariff, less the
equalization fee—then he pays a tax, does he not?

The CuairMAN. Others get it; the millers get it.

Mr. ANDERSON. No; they do not get it.

The CaarrmaN. They have been getting it.

Mr. AnpERsoN. I would be very glad to have somebody point out
to me where the miller gets any benefit from the tariff.

The CuATRMAN. There is a certain amount sold at a discount and
a certain amount sold on the market. But there are fewer millers
than there are farmers, and therefore they have been able to organize.
I think you realize what the result of the pooling of the whole pro-
duction would be, and if you sell part of it at an advanced price over
the current price that is a profit to be apportioned among the various
producers. But I have been amused at this tax proposition, that
after 40 cents a bushel advance in price it is considered as a tax.
Why do you not say the payment of service such as a freight charge
is a tax on the farmer?

Mr. AnpErsoN. Well, in one sense——

The CuatrMan. I would like to get your opinion about it. You
said the farmer pays a tax. .

Mr. ANDERSON. I think freight falls within the class of payment
for service rendered.

The Cuammman. We will agree as to that.

Mr. AnpErsoN. I would say if this were a private corporation and
the agency handles the product as a corporation, subject to such
charges as might be made, that it might then also be considered as
a charge for a service rendered.

~The CuarrMaN. They would take kindly to that compulsion.
would they not?

Mr. ANpErsoN. I do not know. I hope so, for the sake of the
members of this committee and the rest of the Members of Congress.

The CrairMaN. I do not think they would object to that. On
wheat they would get about $300,000,000. I think that would be
very helpful and cheerfully accepted.

Mr. AsweLL: You used to be the head of this committee, Mr.
Anderson?

Mr. ANpERsON. No.

Mr. AsweLL. Then you were a high ranking member.

Mr. ANDERSON. I was up somewhere fourth or fifth down the line.

> Mr. Avg. You are still in good standing with the Republican
arty?
Mr. Anprrson: I still call mvself a Republican.