Evening star., 1932-06-18
Will Choose Between Presi-
dents Plan and Straight
Wage Reduction.
C0NFEREES ARE AGREED
ON ALL OTHER ANGLES
Republicans Hope to Pass Program
Sponsored by Administra-
ton.

Secretary Mills today informed
President Hoover that in response
to Senate request for specific re-
ductions in Federal expenditures, he
could reduce the Treasury Depart
ment appropriation by an additional
s4,367 900.
The Treasury Secretary said he
had "scraped the bottom of the till
right down the line" to fined the ad-
ditional possible savings He said
the proposed saving could be made
exclusive CT any public building items
and would be effected without reduc-
ing personnel.
The House will be asked Monday to
choose between President Hoover's fur
Tough plan and fiat 10 per cent pay
cut for all Federal employees receiving
more than 81 200 year.
In discussing with newspaper men
plans to break the deadlock between
the Senate and the House, Chairman
McDuffe of the House conferees said
the furlough plan, which is purely
speculative, is estimated to save $50
900, 900 a year. while the pay cut would
save s1l0,ooo,o6 to $4,000, ,ooo."
He added the Senate and House con-
ferees had agreed on all other provi-
sions of the s15o,0o0, 900 economy bill
save that dealing with Federal en-
ployes' salaries.
Submitted to House.
The report Of the conferees was sub
mitted to the House today. 1t pro-
posed that the House insist upon a
provision levying 10 per cent cut on
all salaries over 81 200. 1t is this pro-
posal that will be acted upon Monday.
Republicans. at the urging of Presi-
dent Hoover and Representative Mich
ener of Michigan. acting minority
leader, will advocate the furlough plan,
which calls for a months vacation
without pay. They expect enough
Democratic votes to assure its adoption.
II the fiat pay cut is rejected, Nc
Duffie and other House conferees plan
to propose that the furlough plan be
amended to apply an 81s per cent re-
duction to the salaries of all Federal
employees who cannot be furloughed
President Hoover issued an appeal for
adoption of the furlough plan late yes
terdav. 1t came just after the congress
sionel conferees had reported failure to
agree.
Text Of Statement.
The Presidents statement follows:
TO-
and the Congress will find it possible
to accept the so-called furlough plan
for dealing with Federal employees. 1t
is in reality the five-day week, applied
to the Government
1T will produce larger saving in
expenditures in Federal employment
than any other plan which is likely to
pass Congress. The objection that it
permits discrimination has been met by
the proposal that the few employees re-
ceiving over $1,000 a year to whom it
might not be applied shall take an Is
per cent reduction in pay, thus giving
the equivalent reduction in Govern
ment expenses.
1T avoids discharges and enables
some increases in the number of peo-
pie employed by the Government
through the necessity Of some substi-
tutions In the large sense it main
tains the standards of pay in the Gov
ernment It must be borne in mind
that Government pay has never been
on such high standards as that Of pri-
vate enterprise.
1T has a wider spread Of Importance
than these immediate questions. 1t
shows willingness of the Government
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