Evening star., 1932-05-20
GARNER STRIKES
AT FINANCE BODY
Speaker Says R. F. C. Aids
Railroads, but Fails to Help
Middle Class.
BY the Associated Press.

By the Associated Press.
Restrictions on the Reconstruction
Finance Corporation that prevent the
board from helping what he termed the
great middle class of producers in the
country" we're criticized today by
Speaker Garner in discussing his relief
program with newspaper men.
The Texas Democrat said the board
had helped the big railroads and other
interests to meet current bills and to
pay of debts, but that 1t had done moth
ing to increase employment.
1t also, he said, advanced money to
tenant farmers, whom he described as
the poorest producers" but sit has
done nothing to help the great middle
class of producers, which are the most
substantial and who constitute the
backbone OF American enterprise"
Takes Active Charge.
What my program is designed to do
is to furnish employment and to aid
the middle class producer"
The Texas Democrat took active
charge of formulating the legislation to
carry out the program he announced
yesterday. He said the legislative draft
ing service was at work on the details,
but declined to say whether 1t would
be in one or three bills Indications are
that it will be incorporated into one
measure and handled by the House
Ways and Means Committee.
The reaction from both Democrats
and Republicans to the program has
been gratifying" Garner said. More
than rs Republicans have come to my
ONCE to express their approval. or
course, there are some differences of
opinion as to details, but I have not
heard an actual criticism against the
policy"
Colleagues of the Speaker believe he
plans to expedite House action and lay
the bill before the Senate in less than
two weeks
Discuss Bond Issue.
Before House Ways and Means Sub
committee, a S500,000, 900 bond issue for
financing rivers and harbors and food
control projects was advocated today.
Chairman Mansfield of the Rivers
and Harbors Committee, sponsor of
the legislation, said his bill was identi-
cal with a measure by Senator Ship
stead, Farmer Labor, Minnesota.
Inclusion of flood control In the
legislation was suggested by Chairman
Wilson of the Flood-control Commit
tee and accepted by Mansfield.
Wins House Support.
Buried under dissenting ideas as to
how far the Government should 90, the
relief proposition had been more or
less stalled until Speaker Garner yes
terday advanced a plan which won
wide support in the House.
A recommendation also was expected
from the group of Senate Democrats
under Wagner of New York, who have
been busy for a week trying to bridge
the gap between the Hoover-Robinson
compromise plan and more extensive
unemployment aid ideas involving
bond issues which have been advo-
Gated in the Senate.
Favors Hoover Plan.
Representative Smell of New York,
the Republican leader. said today that
after a thorough study OF the Garner
relief plan he was convinced the sug-
gestions of President Hoover for aiding
| the States, counties and cities through
the Reconstruction Finance Corpora,
| ton was preferable to the proposed
billion-dollar bond issue for a public
! building program.
Under the Presidents plan" the
New Yorker said, 1T will not be nee
essary to increase the burden of taxa
| ton on the people at this time when
| the budget is about to be balanced
/ Mr., Garner's billion dollar bond issue
would necessitate levying OF additional
taxes for the construction Of non-reve-
nue. producing buildings"
! The President and the Democratic
leader got together on a 81 300 900 000
expansion of the Reconstruction Corpo-
ration capital, with the billion for use
in public and private construction of a
self-supporting character and the re-
mainder available for loans to States.
Presidents Task Heavy.
Garner called for $4,000, 900 900 in
crease in reconstruction funds and
SiCo, 900 900, appropriated without
strings, for the use of the President in
relieving sharp distress wherever II
might exist.
Besides this being gift proposal
opposed by Mr. Hoover in principle, II
appeared unlikely he would care to take
on the task of apportioning the sum
among clamoring States and cities
However, Representative Smell, Repub-
lican leader, was favorable to the Gar
ner plan as a basis of getting some
thing worked out"
Bomb Brings Arrest.
AUCKLAND, New Zealand, May n
(P).-A Russian seaman named Georg,
| aEae I'D