El Campo Rice Milling Co. v. Commissioner

SIBLEY, Circuit Judge.

El Campo Rice Milling Company, under marketing agreements made with the Secretary of Agriculture by virtue of Section 8 (2) of the original Agricultural Adjustment Act, 48 Stats. 31, 7 U.S.C.A. § 608(2), bought rough rice from producers at prices above the market and had on hand on March 31, 1935, over 8,000,000 pounds unprocessed. By the amendment of'March 18, 1935, Sect. 9(b) (3), 49 Stats. 45, 7 U.S.C.A. § 609 (b) (3) , a tax of one cent a pound was levied for processing, beginning April 1, 1935. Because rice on hand produced in 1933 and 1934 had been purchased at an…