Evening star., 1926-05-02
Haugen Bill, Which Is Strong.
Iy Supported, Regarded as
a Serious Menace.
PLACES PRICE OF FOOD
IN HANDS OF PRODUCER
Claim Is Made That Measure Fails
to Afford Protection to
Consuming Public.

A good many members of both
houses of Congress are viewing with
alarm" the situation which has arisen
with respect to farm relief legislation.
The outlook today is that the House
will pass the Haugen bill, involving
a Government subsidy to agriculture
and Government price-fixing of farm
products, and send 1t to the Senate,
where the battle will be fought out.
A week ago it would have been con-
fidently predicted that the Senate
would reject the measure. But de-
velopments Of the last few days make
1t seem not improbable that the Sen
ate will fall into line and pass the
buck" up to President Coolidge.
Should the Haugen bill, in anything
like it's present form, run the gantlet
of the two houses Of Congress and go
to the White House for approval or
disapproval, Mr.. Coolidge would be
in an exceedingly embarrassing posi-
ton. For the Haugen bill inVolVes
the identical program OF farm reileL
against which the President has de-
clared himself in unequiVocal terms.
1t is the old McNary- -Haugen program
of two years ago. with minor chanSes'
changes which, in the opinion OF many
members of Congress, MAKE IL even
more Objectionable.
Basis of Price Fixing.
The chief difference between the
t,vo n,ea sures seems to be in the basis
of price fixing. The McNary- -Haugen
hill nroposed to maintain the prices
of farm products on a parity with the
nrices of other commodities as ais
closed by index figures covering
period of years. The pending Haugen
bill proposes to maintain the prices
of farm products at a lever WIN Wollu
nrices. plus the protective tariff, Plus
transportation charges from tne plin-
cinal competitor among producing ma
tions to the principal American port
of entry: Thus, if the world price Oh
wheat was $3.50 a. bushel at LiVerpool
and the principal competing crop was
in the Argentine, the effort would pe
TO maintain the American price at
S1.5O a bushel, plus AZ cents a ousnei
tariff. plus II cents transportation
from Buenos Aires to New York, or
S2.O4 a bushel to the American con-
sumer. .,
The Haugen bill creates the famil-
lar Federal farm advisory council
and Federal farm DOdru, the ldttci "
be a part Of the Department of ASrl-
culture and to consist of II members,
with salaries Of $4,000 each. An APP
preparation of 1875 100000 from the
United States Treasury is placed at
the disposal of this board. and after
it gets the money its conscience is
to be its guide. The money is to he
loaned by the board to cooperative
associations or other agencies for the
purpose Of buying up crop surpluses
in order that prices shall be main
tanned at the world price-plus tariff,
plus ransportatiOn-leve II these
agencies suffer losses as result or
their transactions the Federal farm
board will foot the bills out of the
Treasury appropriation.
Two Years on This Basis.
1t is on this basis that the board is
to function for two years after the
passage of the act. There is nothing
to prevent the entire appropriation
being used up within that period, and
there is no provision for the recovery
of any losses, whether of the entire
amount or Of any part of it. The bill
provides for the levying at the end
of two years of an equalization fee
upon basic farm commodities but
it is expressly provided that the
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