Evening star., 1930-06-23
President Vigorously De-
nounces Bill Which Threat
ems Tax Increase.
MELLON WARNING CITED
IN OPPOSING MEASURE
Executive Tells Watson Service
Men Themselves Do Not Desire
Compensation Plan.
BY the Associated Press.

BY the Associated Press.
With a final vote due before night
fall, Senator Reed, Republican, Penn
sylvania, today proposed an amendment
to the World War veterans relief bill
providing for maximum allowance Of
$40 month to an estimated 100000
veterans who cannot trace disabilities to
service origin.
Denying he spoke for the administra-
tion, Senator Reed nevertheless vigor-
ously opposed the pending finance COM
mittee measure. He had read President
Hoover's letter to Senator Watson of In
diana, the majority leader, saying enact
ment of the bill would result IN IN
creased taxation next year.
Reed said the committee bill would
mean an additional cost of about $780,
600 900 the first year while his amend
ment would cut this to $s5,OOo,Oo0.
Substitute Conference Fails.
Senate Republicans at a conference
today discussed, but failed to agree on
substitutes proposed for the bill under
consideration.
Reed contended the present bill would
benefit only about one-third, or l00, ,0OO
of the 100000 veterans having diSabil-
tiles not of service connection with
the ultimate annual cost reaching
$225, 100000.
His amendment, he said, would take
care of all non-service disabilities. The
disability allowances or pensions, as
ha his
amendent, would be $l2 a month for
IS per cent disabilities, $18 for so per
cent, $24 for rs per cent and $40 for
total disabilities.
If the committee bill passes, he
argued, there would be no chance of
this years / per cent tax cut being
continued next year. On the other
hand. he said, the tax burden would
have TO be raised when we meet here
next December
A roll call today on the pending
measure was assured by a unanimous
consent agreement entered into last
week. 1t had already been passed by
the House and with the Senate voting
its approval 1t would go to conference,
as 1t was considerably modified by the
Senate committee.
In vigorous fashion. President Hoover
set forth his objections to the bill in
letter to Senator Watson, the Re-
publican leader, which was given out
at the White House for publication
today.
Calls Measure UnsOund.
He criticized the measure as "un-
sound" and opposed to the best in
terestS of the veterans themselves. He
warned that its enactment would
probably neceSsitate increased taxes, if
a deficit at the close of the next fiscal
year is to be avoided
President Hoover'S letter follows:
In accordance with our discussion,
l am sending herewith communications
from Secretary Mellon and Gen. Hines,
director of the Veterans Bureau, on the
subject of the World War veterans
legislation now before the Congress,
showing the result of their investiga-
ton into the effect of the bill reported
this week to the Senate. These
memorandum confirm the views which
1 have expressed during the past few
weeks and l believe the Congress and
the public should be informed thereon
Gen. Hines states that the bill which
has been passed by the House of Rep
resentativeS will add directly to our
present expenditure for World WaI
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