Show gov t planning subsidy of wool F iber fiber washington utah wool growers crowers are faced halh ith a government subsidy of the synthetic wool fiber industry it if it becomes necessary senator arthur V watkins R utah said today senator watkins said that charles E wilson director office of defense mobilization had informed him by letter that should we nent need to stimulate domestic production of natural or synthetic fibers in order to protect our fiber position wo will do so Wil wilsons sons statement was ivas the result of a letter he re celled from senator watkins the senator asked tor for an authora and ami straightforward straight forward statement setting forth the nature and extent of 0 the tax granted luring during the fiscal year 1952 to assist companies in the building of 0 facilities facil itle 4 for the manufacture of synthetic mool mr wilson said the defense production administration already had I 1 granted two to tax amor applications to companies which plan to construct new plants for the production of synthetic will I 1 fiber I 1 actually senator walking explained pla ined this permission lor for accelerated tax amortization programs merely means mans thit that tho the taxpayers of the country are subsidizing such companies by permitting them to write off their plant costs in five years normally tax lax laws will not permit such depre depreciation clation of plant equipment for less than from 20 to 40 years therefore by depreciating lating their plant and equipment percent in rie die years these favored companies are able to escape c a large part of their normal corporate aate tax loaa |