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...Government was back in the Supreme Court this week to defend AAA in the second of its two cases. First of the AAA cases was the suit of Hoosac Mills to be excused from paying processing and floor taxes on the ground that AAA is unconstitutional. The hearing, which began week before (TIME, Dec. 16), concluded last week when onetime Senator George Wharton Pepper, after arguing that processing taxes were "robbing Peter the processor to pay Paul the producer," dropped his voice and declared...

Author: /time Magazine | Title: JUDICIARY: Marble v. Velvet (Cont'd) | 12/23/1935 | See Source »

...These briefs were concerned with two tests of the AAAct which taxes processors to raise money to pay farmers to reduce output.* One of these, brought by eight Louisiana rice millers who claim processing taxes are illegal, will be argued next week. The other is that of the Hoosac Mills Corp. of New Bedford, Mass, which was argued this week. The receivers of Hoosac Mills, one of whom is the late Calvin Coolidge's great & good friend William Morgan Butler, appealed to a Federal Court to be excused from paying $81,694 of processing and floor taxes...

Author: /time Magazine | Title: JUDICIARY: Marble v. Velvet | 12/16/1935 | See Source »

Chief points at issue: 1) Are processing taxes an unconstitutional delegation of taxing power by reason of the fact that they are fixed by the Secretary of Agriculture? If so, Hoosac Mills will win its case, but AAA will suffer little because last summer AAAmendments were adopted in which Congress set its own processing taxes. 2) Has Congress the power to impose processing taxes? Congress, says the Government, has the power to impose any excise tax to raise revenue. Processing taxes, retorts Hoosac Mills, are not imposed for revenue, but to do indirectly what the Government has no direct power...

Author: /time Magazine | Title: JUDICIARY: Marble v. Velvet | 12/16/1935 | See Source »

...with a blessing. AAA. Taking its cue from the Supreme Court, the first Federal Circuit Court in Boston found AAA's vital processing taxes as illegal as NRA's codes, and for the same reasons. A U. S. District Court had rejected the suit of receivers for Hoosac Mills Corp, to escape payment of $81,694 in processing and floor taxes levied by AAA. Reversing that decision, the Circuit Court condemned AAA because: 1) Congress, in taxing agricultural and industrial products before they entered interstate commerce, had exceeded its regulatory powers;* 2) having assumed illegal legislative power, Congress...

Author: /time Magazine | Title: JUDICIARY: Curses & Blessing | 7/29/1935 | See Source »

...three longest railroad tunnels in the U.S. are: 1) the new Cascade tunnel in Washington on the Great Northern (7.79 miles); 2) Moffat tunnel (6.11 miles); 3) Hoosac tunnel in Massachusetts on the Boston & Maine (4.38) miles...

Author: /time Magazine | Title: Business & Finance: Portal to Nowhere | 2/3/1930 | See Source »

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