Extracted text

OCR Page 1 of 10
ONLY EXECUTIVE OFFICE OF THE PRESIDENT is, BUREAU OF THE BUDGET WASHINGTON 25, D. C. NOV 2 1945 My dear Mr. Latta: The Congress has enacted S. J. Res. 100, "Permitting alcohol plants to produce sugars or sirups simultaneously with the production of alcohol until July 1, 1946." It is the purpose of the resolution to amend the Internal Revenue Code so as to permit the production of sugars and sirups from potatoes and from high moisture or damaged grain in industrial alcohol plants, simultaneously with, or alternately with, the production of alcohol, until July 1, 1946, under regulations prescribed by the Commissioner of Internal Revenue with the approval of the Secretary of Agriculture. The existing provisions of law prohibit industrial alcohol plants from en- gaging in any other business or producing any other commodities. A facsimile of the enrolled enactment has been referred to the De- partment of Agriculture, the Treasury Department, and the Federal Loan Agency, and their replies, either recommending approval of the resolution, or interposing no objection to its approval, are attached. The Congressional committees, in reporting the measure to the House and Senate, point out that the enactment of this legislation is desirable in order to prevent the waste of a large quantity of surplus potatoes (estimated at sixty million bushels) produced in this year's crop and a large quan tity of corn which has been damaged by floods or excessive rains. The committees also point out that the production of industrial alcohol was greatly increased during the war period requiring the con- struction of new, or the expansion of existing, industrial alcohol plants, and that the cessation of hostilities has resulted in a reduction of de- mands for alcohol of which the Government now has a large stockpile on hand, and that, on the other hand, the demand for sugars and sirups far exceeds the available supply. It is also pointed out that the Government either owns, or is under obligation to purchase, a large part of the sur- plus agricultural commodities, and their use in the manner proposed by this measure will result in a substantial saving to the Government. recommend that the resolution be approved. Very truly yours, Mr. M. C. Latta, The White House. Aoting Director. Enclosures: Letters from Agriculture, Treasury, and Federal Loan Agency. NARA One copy each of the Senate and Hous e reports.