chase of surplus beet sugar produced in the United States beet-sugar area. This section provides that out of such proceeds of taxes as are available therefor the Secretary may purchase not to exceed 300,000 tons of sugar, raw value, from the surplus stocks of direct consumption beet sugar. The amount of $8,000,000, accordingly, has been warranted from available proceeds of processing taxes to enable the Secretary to administer this provision, as necessary. GENERAL EXPENSES, AGRICULTURAL ADJUSTMENT ADMINISTRATION (JONES-CONNALLY ACT) (A) (a) The sum of $150,000,000 was appropriated by the act of May 25, 1934 (48 Stat., p. 805), to carry out the provisions of the act entitled "An act to amend the Agricultural Adjustment Act so as to include cattle and other products as basic agricultural commodities, and for other purposes", approved April 7, 1934 (48 Stat., p. 528), pursuant to the authorizations contained in sections: 2 and 6 of the act of April 7, 1934; $100,000,000 to be used for the purposes of the Agricultural Adjustment Act, as amended, and $50,000,000 for the purposes specified in section 6 of the act of April 7, 1934. The $150,000,000 appropriation remains available until June 30, 1936, as provided by section 37 of the act entitled "An act to amend the Agricultural Adjustment Act, and for other purposes", approved August 24, 1935 (49 Stat., pp. 775-776). This work is conducted under appropriations provided by the act of May 25, 1934, to enable the Secretary of Agriculture to carry out the purposes of the Jones-Connally amendment to the Agricultural Adjustment Act. The projects conducted thereunder include: 1. Removal of agricultural surpluses: (a) Emergency cattle purchases.-This project involves expenditures for the purchase of surplus cattle in the drought-stricken areas and expenditures for the removal of surplus dairy products throughout the country generally. All such purchases are donated by the Secretary to the Federal Surplus Relief Corporation for relief distribution. (b) Purchase of dairy and beef products for distribution for relief purposes.— Section 6 of the Jones-Connally Act authorizes the Secretary of Agriculture to make advances to the Federal Surplus Relief Corporation for the purchase of dairy and beef products for distribution for relief purposes. 2. Eradication of disease in cattle: (a) Eradicating bovine tuberculosis.-This activity is carried on by the Bureau of Animal Industry in cooperation with the Agricultural Adjustment Administration and consists of a Nation-wide campaign to eliminate bovine tuberculosis. Expenditures consist of indemnities paid to owners of condemned cattle and operating expenses connected with the campaign, as set forth under the estimates of the Bureau of Animal Industry. (b) Combating Bang's disease and other diseases of cattle.-This project is also carried on by the Bureau of Animal Industry in cooperation with the Agricultural Adjustment Administration, and provides for the payment of indemnities to cattle owners and for general administrative expenses while the majo" part of the work is directed to the eradication of Bang's disease. $1,000,000 of the total fund has been allocated for combating mastitis and other diseases. (See estimates of Bureau of Animal Industry). ADMINISTRATION OF THE TOBACCO ACT OF JUNE 28, 1934, AS AMENDED AS OF AUG. 24, 1935 Funds for this appropriation are provided by collections of taxes imposed under the Tobacco Act (Public No. 483, 73d Cong.) approved June 28, 1934, as amended as of August 24, 1935. Such tax collections are estimated at substantially more than the expenditures involved in the administration of the act. Administrative expenses estimated for the fiscal year 1936 involve determination of the amount of tax payment warrants to which each tobacco producer is entitled, distribution of such warrants, collection of taxes by the Bureau of Internal Revenue, and other necessary expenditures to carry out the act. Tax collections under this act have been made available also to the Secretary of Agriculture for rental and benefit payments to contracting producers under the Agricultural Adjustment Act. ADMINISTRATION OF THE COTTON ACT OF 1934 (BANKHEAD ACT) Appropriation, 1936_. $6,000,000 6, 000, 000 NOTE. This work is financed entirely by transfer of funds from the permanent indefinite appropriation Advances to Agricultural Adjustment Administration. Funds for this activity are provided by transfer from the appropriation: Advances to Agricultural Adjustment Administration. The work of administering the Bankhead Cotton Act involves an extensive organization for the determination of production quotas, the distribution of tax-exemption certificates to producers, the identifying and tagging of tax-exempt cotton, and the collection of taxes by the Bureau of Internal Revenue. The provisions of the Cotton Act of 1934 are effective with respect to the 1936-37 crop only if the economic emergency in cotton production and marketing continues and that fact is so proclaimed by the President. In that event the tax features of the act will be continued if favored by two-thirds of the cotton producers voting. ADVANCES TO SECRETARY OF AGRICULTURE FOR COTTON NOTE.-Section 4 (b) of the act of June 19, 1934 (Emergency Appropriation Act, 1935), as amended as of August 24, 1935, authorizes the Secretary of the Treasury, in his discretion, to advance to the Secretary of Agriculture out of any money in the Treasury not otherwise appropriated, the sum of $100,000,000 for paying off any debt or debts which may have been or may be incurred by the Secretary of Agriculture and for discharging any lien or liens which may have arisen or may arise pursuant to part 1 of the Agricultural Adjustment Act, for protecting title to any cotton which may have been or may be acquired by the Secretary of Agriculture under authority of part 1 of the Agricultural Adjustment Act. Section (c) provides that the funds authorized by subsection (b) shall be made available to the Secretary of Agriculture from time to time upon his request and with the approval of the Secretary of the Treasury (Public, No. 412, 73d Cong., 48 Stat., p. 1058, as amended by sec. 35 of Public, No. 320, 74th Cong.). The Budget schedules indicate that $22,500,000 was advanced under this authority in the fiscal year 1935 and that the remainder of the authorization ($77,500,000) is estimated for obligation during the fiscal year 1936. SPECIAL DEPOSITS (COTTON) These schedules reflect financial transactions in connection with the acquisition and disposition of spot-cotton and cotton-futures contracts by the Secretary of Agriculture, as provided for by part 1, title 1, of the Agricultural Adjustment Act, approved May 12, 1933, as amended. TRUST ACCOUNTS NATIONAL SURPLUS COTTON TAX EXEMPTION CERTIFICATE POOL This trust account provides for funds received under trust agreements entered into by certain cotton producers and the Secretary of Agriculture, authorized by section 9 (d) of the Cotton Act of 1934 (Public, No. 169. approved Apr. 21, 1934), as amended. The obligations incurred hereunder in 1935 and estimated for 1936 and 1937 are: 19351936 1937 PROCEEDS. DISTILLED-SPIRITS INDUSTRY, PARITY PAYMENTS $16, 005, 435 10,000,000 10, 000, 000 This trust account provides for handling funds collected under marketing agreement no. 27, entered into by certain members of the distilled spirits industry and the Secretary of Agriculture (secs. 2 and 8, acts of May 12, 1933). The amounts obligated in 1935 and estimated for obligation in 1936 hereunder are: 19351936 $763,604 34,300 PUERTO RICO TRUST FUND (PROCESSING TAXES, SUGAR) This fund provides for payments to contracting producers in connection with the adjustment of sugarcane production in Puerto Rico, payable from funds accruing from sugar processing tax collections in Puerto Rico, authorized by section 15 (f) of the Agricultural Adjustment Act, as amended (Puerto Rico Tax Fund Order No. 4, issued by Presidential proclamation Apr. 24, 1935). The amount obligated hereunder in 1935 was $2,250,000. ELIMINATION OF DISEASES IN CATTLE, DEPARTMENT OF AGRICULTURE This item is discussed in the "miscellaneous" section of the estimates. Of the total appropriation of $10,000,000 provided by section 37 of the act of August 24, 1935, for the purposes of section 6 of the act of April 7, 1934 (JonesConnally act) for the fiscal year 1936, $350,000 has been allotted to the Agricultural Adjustment Administration and will be used for the purchase of surplus dairy products to be made available for distribution through relie channels. An allotment of $7,500,000 for the same purpose. out of the total estimate of $17,500,000 for 1937, is also proposed. Projects EMERGENCY FUNDS Obligated, Estimated obligations 1936 National Industrial Recovery Act: For supplementing proceeds derived from processing taxes in connection with corn and hog adjustment programs. For administrative expenses in connection with code histories which are under the jurisdiction of the Secretary of Agriculture.. Total, National Industrial Recovery Act.. Loans and relief in stricken agricultural areas (Emergency Appropriation For purchase and disposition of livestock and seed to provide relief in Total emergency funds (direct allotments).. 1 Includes funds transferred to other Government agencies, as follows: $24,875, 806 205, 119 25,080, 925 1 84,095, 560 109, 176, 485 Mr. CANNON. Mr. Davis, as I understand it, there is no estimate made for this item in the pending bill. Mr. DAVIS. We have no estimate as to the whole activity; that is correct. EXPENDITURES OF AGRICULTURAL ADJUSTMENT FISCAL YEAR 1935 ADMINISTRATION FOR Mr. CANNON. What has been the expense of the administration. during the past fiscal year? Mr. JUMP. The statement on page 528 of the mimeographed book contains the bulk of it. That is the appropriation made under advances to the A. A. A. from the Treasury, based on anticipated processing taxes. Mr. CANNON. As I understand it, that does not accurately reflect the actual expenses of the administration. Mr. JUMP. It reflects actual expenses in connection with commodity programs. Actual expenses of the other activities for the fiscal year 1935 are set forth in the mimeographed book. They may be summarized as follows: General administrative expenses (salaries and expenses) – Purchase of surplus sugar (Jones-Costigan Act)__ Drought relief (loans and relief in stricken agricultural areas, National Industrial Recovery Act funds: Corn adjustment programs__ Code histories Puerto Rico trust fund (processing taxes, sugar). Total___ $5, 054, 142 635, 454, 911 365, 536 94, 509, 753 449, 947 11, 068, 771 84,095, 560 24,875, 806 205, 119 2,250,000 858, 329, 545 Mr. CANNON. Mr. Administrator, what sources of revenue have you had for the support of the administration during the past year? Mr. DAVIS. The principal one has been advances from the Treasury in anticipation of processing taxes to accrue. In addition to that, there was the remainder of the $100,000,000 appropriation in the original Agricultural Adjustment Act. Then, for extraordinary activities, following other acts of Congress, we have had the appropriations under the Jones-Connally Act. We have acted as an agency to allocate funds for disease eradication in dairy catle, the purchase of dairy products for relief distribution, and the sum allocated to us under the emergency drought appropriation, which is expended for cattle purchases, and assisting in supplying feed and seed. Under section 32 of the amendments to the Agricultural Adjustment Act, there is an appropriation of an amount equal to 30 percent of the customs revenues for certain purposes. But that did not exist in the fiscal year 1935. The amendment was passed August 24, 1935, and, of course, its enactment was subsequent to the end of the fiscal year. So far as I know, that is a statement of the total sources from which we have had our funds. |