Evening star., 1932-04-24
Battle Scheduled Wednesday
on Legislation Drafted to
Balance Budget.
REDUCED WAR VETERANS
BENEFITS REINSERTED
Hoover's Compulsory Furlough
Plan Will Be Offered as
Substitute for Pay Cut.

The omnibus pay cut and economy
bill Is drafted, approved in committee
and ready to be introduced in the House
tomorrow by Chairman McDufie of the
House Special Economy Committee
after more than eight hectic weeks of
struggle to lop off some 100000
from Federal expenditures to balance
the budget"
Determined to complete the bill, the
members of the committee worked in
shirtsleeves until nearly midnight last
night and are planning to devote much
of today to preparation for the battle
that is scheduled for Wednesday when
the bill is taken up in the House.
Committee Reverses Itself
Shortly before sending the bill to the
printer last night, on motion of Rep
resentative Douglas, Democrat, of Ari-
zona,. the committee reversed itself
President Hoover's recommendations
to reduce benefits to World War vet
terans by approximately S50,000,000.
This change would cut allowances
pensions and free disqualification to eX-
service men having incomes of $1,000
If single and $3500 if married, with
S400 for each dependent, and by re-
ducing pensions to veterans receiving
subsistence or treatment in hospitals
and homes.
While the omnibus bill contains the
IL per cent slash in all Federal salaries
with 81 900 exemption expected to save
CG7 nm mn the counter YNTOnncQ1 Of
President Hoover for compulsory fur
1oughs without pay on a five-day week
basis has been prepared in legislative
form and will be offered as substitute
by Representative Ranseyer, Repub-
lican, of Indiana.
President Hoover's plan, including
the elimination of S17,000,000 in vehicle
allowances to rural mail carriers, is
estimated to save S62, 100000.
Members Divided on Bill.
This omnibus bill is admittedly the
most controversial measure that has
come before the House in many years,
so much so that even the members OF
the Economy Committee are bitterly
divided on it.
Those who, hope to defeat the bill
agree it is the best strategy to ac-
cept the special rule that is to be
granted to make the omnibus bill ger
name on the legislative appropriation
bill, and keep it all in one bag" so as
to keep the opposition consolidated.
This opposition includes organizations
of the National Federation of Federal
Employees, the big four" organizations
of postal employees, the American Fed
Grafton of Labor, the American Legion
and the Disabled Veterans.
The draft completed by the commit
tee late last night contains the pro-
posed consolidation of the War and
Navy Departments, to which the ad
lministration is opposed, and would give
president Hoover authority to reor-
ganize the Government. but in a more
closely restricted form than he re-
Quested.
Under the authority granted Presi-
dent Hoover to reorganize the Govern
ment, subject to congressional approval
within 60 days. the bill proposes that
activities created by statute cannot
be disposed of through executive order.
Fund Interchanges Provided.
The committee also inserted a pro-
vision, requested by the Chief EXecu-
tive in his economy program, to permit
an interchange of appropriations within
department or agency up to is per
cent.
President Hoover is anxious this be
approved in order that functions Of de-
partments might not be discontinued
through the 10 per cent slash imposed
by the Senate.
Specific consultations of Govern
ment activities carried in the bill in
clude the merging of the Personnel
Classification Board with the Civil
Service Commission and the Steamboat
Inspection Service with the Bureau of
Navigation in the Commerce Depart
ment
Provisions affecting Government per-
sonnel include:
Retirement Of superannuated en-
Continued on Page 2, Column A.