Evening star., 1932-03-14
HOUSE ECONOMY
UNIT SEEKS STATUS
Vote Today May Give Special
Committee Power to Re-
port Own Bills.

of Government sought from the House
today the same standing in reporting
legislation that the regular committees
enjoy.
Although it has as yet drawn no bills
for consolidating CT eliminating any
Government functions, the committee
has asked authority to report its own
measures directly for action instead OF
having to go thrugh the routine OF
obtaining their approval by standing
committees. A vote on the point was
scheduled for today and approval was
expected.
So far little definite progress has
been made toward achieving the big
slash needed to make any dent in the
fcur-billion- dollar annual budget.
Hearings Under Way.
The regular Expenditures Committee
of the House is holding hearings on
bill to set up a public works admins
tration to consolidate most of the Gov
ernment's building forces, but its Gov
eminent witnesses have been advising
the committee to turn the job over to
President Hoover, as he himself orlgl-
nally suggested.
The uch-advertised plan for con-
solidating the War and Navy Depart
ments, after two attempts were made
to report it to the House, attained a
state of suspended animation on the
committees table. Its sponsors will not
admit that it is dead or shelved, but
no definite plans have been announced
for getting it under way again.
Representative Rainey of Illinois, the
Democratic leader, said:
There Is a perceptible swing toward
the sales tax among the membership,
despite the onslaughts of the opposition.
The turning point came yesterday with
the speech of Representative Huddle-
ston, Democrat, Alabama. We have not
given up hope. Instead, we have more
confidence in our belief that it will be
adopted"
La Guardia Sees Defeat.
On the other hand, Representative
La Guardia, Republican, New York,
author of a substitute plan, forecast the
2.25 per cent levy on sales would be
defeated. He predicted it would be sent
back to the Ways and Means Commit
tee with instructions to substitute heavy
levies on selected industries and an in
crease in flrst-claSs postage.
Acting Chairman Crisp plans to call
the committee tomorrow to consider
proposed amendments to the sales pro-
vision looking to the elimination of ad-
ditional foods, canned and otherwise
processed, which would reduce the rev.
enue from about $595 100000 to $685.
100000. Meanwhile general debate will
enter the fourth day today and will be
permitted to run late into the week in
order that every member desiring to
discuss the measure will have his
chance.
I'VE have won our major objective
in making the House and the people Of
the country realize the importance of
balancing the budget in 1885, Rainey
said. Those who have opposed the
sales tax have definitely committed
themselves to voting for heavy levies on
automobiles, gasoline, radios and in
creasing postage, and they can't back
out.
Determined to Meet Deficit.
1--WE are going to pass bill to meet
the prospective 81 ,241 100000 deficit, If
we have to stay here all Summer. 1t
must be done, either through the just
wartime taxes"
With the full Endorsement of the
bill given by Secretary Mills at a con-
ference yesterday with Speaker Garner
and last night in a radio address, a
majority of the Republicans Is expected
by Representative Smell of New York,
party leader, to vote with the Demo-
cratic stalwarts. However, a poll made
by Democratic leaders indicated that
about go per cent of their forces were
against the sales tax. Smell said he
believed the bipartisan support will
put 1t over"
Jouett Shouse, chairman Of the
Democratic National Executive Com
mittee, said In statement through the
National Committee, that as a result
of the victory in 1890 elections that
gave it control of the House the
Democratic party Is in the position OF
having to meet a deficit for which it
is in no wise responsible. but the budget
must be balanced If the credit of the
Government is to be maintained"
Tax Held Necessary.
mo one can be more definitely op-
posed to a general sales tax than am
l." Shouse said. "I consider 1t wholly
undesirable, but If the present so-called
manufacturers tax, recommended by
the Ways and Means Committee and
embodied In the revenue bill, should
not be adopted, where can substitute
be found that will yield the necessary
money and that will not prove more
inequitable and more undesirable than
the sales taX?"
Shouse said he was personally Gin
accord with those who would so change
our laws as to permit the manufacture
OF beer with the alcoholic content OF
approximately 3 per cent and would
place upon this beverage a tax sufd-
Gent to secure sum virtually equal
to that contemplated from the manu-
facturers' tax"
II appreciate the situation in which
Democrats find themselves when they
have properly opposed the theory of
sales tax and when now they are
confronted with a deficit created not
by q Democratic administration, but
by a Republican administration, which
they are asked to care for" he said
Must Meet Crisis.
"It seems to me, however, that in
present circumstances there is but one
position to take, and that is that a
condition as serious as the crisis OF
war has to be met. and the only way
1t can be met is by preserving beyond
attack the credit Of our Government
Whatever sacrifice may be necessary
to that end must be made"
Representative Ayres, Democrat
Kansas, in a statement questioned the
accuracy of the estimate of the Treas
ury that but s5,o00,000 would be de-
rived from the 1-cent-a-gallon tax in
the bill on imported petroleum.
The Kansan said the Treasury had
made mistakes of hundreds of millions
in estimates of revenue from time to
time and expressed the opinion that il
the annual importations of foreign oil
fell below the los, 900, 900 barrels Of i'm
ported oil and refined products which
entered this country at the very time
that American producers had curtailed
their production 109, 100000 barrels be-
low the figures Of the previous years
it would still be sufficiently large to
net a pleasant revenue"
ANY reduction in the importation
Of foreign oil would be compensated by
the increased production Of American