The New York herald., 1922-05-12
FARM FEDERATION
FOR SHIP SUBSIDY
j. r. Howard Clashes With
Representative Davis Over
BOdy's Stand.

WASHINGTON, May 11.-Indorsing the
Administration ship subsidy program J.
r. Howard. president OF the American
Farm Bureau Federation, at the joint
hearings of the Senate Commerce and
House Merchant Marine Committees de-
clared to-day that an adequate American
merchant marine would benefit the whole
country. farmers as well as other
classes. Mr.. Howard said his views
were based on findings of group Of
economists who investigated the need
for ship subsidy for his federation.
Farmers know little or nothing about
shipping or how much ocean freight
rates affect them, he declared, adding
that ocean rates were really as inn
portant TO the farmer as railroad rates.
Prior to hearing the testimony of Mr.
Howard the committee, in an effort to
speed up the hearings with a view to
concluding them, decided to hold two
sessions daily instead of one. Demo-
Gratis protested. contending an attempt
was being made to rush things when
witnesses opposed to the legislation were
being heard. 1t is believed that the
wind UP will be reached next week.
Against Income Exemptions.
Mr. Howard said the American Farm
Bureau Federation always had opposed
subsidies as matter of principle, but
felt that in certain emergencies such as
now obtained In the shipping business II
was advisable to grant Government aid
The witness voiced objection. however
to a section of the Jones-Greene bill
which would permit shippers to deduct
from their income tax payments an
amount equal to 8 per cent. of the money
paid by them during the previous year in
ocean freight rates to American Ship
ping companies.
Our federation is steadfastly op-
posed to any tax exemptions" he ex-
planned. Exporters and importers are
no more entitled to tax exemption for
shipping goods In American bottoms
than shippers on land are for having
their products moved on American rail-
roads.
Declaring that transoceanio service
rendered by foreign vessels was "sec-
ond rate" Mr.. Howard said that non
existence of an adequate American mer-
chant marine was 'hampering foreign
trade expansion"
Representative Davis asked Mr.
Howard why he adhered SO insistently
to the federation's opposition to tax
exemption but deviated from it's oppo-
SAliDll W ~ SuDSluy
Perhaps we're little inconsistent"
replied the witness. But our federation
specifically went on record as opposed
to tax exemptions. while it directed op-
position to subsidies generally. This
gave officers empowered to speak for the
federation latitude which, we felt. justi-
fed us. In view of changed conditions, to
support this program"
But the membership of the American
Farm Bureau Federation never has gone
on record in favor of this bill" sug-
gested MIR. Davis, adding that the stand
CT Howard on the measure to-day was
contrary TO the resolution adopted at
the last convention of the federation
Mr.. Howard said there had been no
opportunity for members Of the organ
ization since Introduction of the bill to
express their attitude on II. but he was
confident they would take. the same
position he lad on the fegislatiofi.
There Is no Indication that the
farmers have changed their mind.' Rep
resentative Davis remarked as he asked
Mr.. Howard whether the Economists
who studied the legislation and recon-
mended that II be supported had been
furnished with data by the shipping
Board.