Evening star., 1933-06-05
Leaders to Meet Tomorrow
to Consider White House
UItimatum-Senator Har-
rison Also Summoned.
REVOLT is THREATENED
OVER BUDGET ACTION
Consideration of rs Per Cent Limi-
tation Delayed Until Public
Opinion Can Be Sounded Out.
Early Adjournment Appears
Doomed.

House leaders will debate at a
special meeting tomorrow what
action, they will take on President
Roosevelt's ultimatum that If a
limitation is imposed on the
amount veterans benefits may be
cut, new taxation will be neces-
sary to balance the budget.
The conference will be attend
ed by the House Democratic Steer
ing Committee, the special Vet
erans' Committee and Chairman
Buchanan of the Ways and Means
Committee.
Mr.. Roosevelt last night warned
House leaders that if they accepted the
Senate increase in veterans expendi-
lures they must add new taxes to pay
for the $170,000,00 cost.
Meanwhile, Speaker Rainey told
newspaper men that If the House were
faced with the alternative of rejecting
taxes, it would accept the limitation
and refuse to levy taxes"
The President also passed on to the
recalcitrant Senate his command for
balanced budget in talk with Chair
man Harrison of the Senate Finance
Committee.
Senator Harrison, Democrat, of Mis-
sissippi, was called to the White House
Just before the Finance Committee met
to vote on new levies to finance the
public works program.
Congressional leaders delayed con-
sideration of the Senate's 25 per cent
limitation on Veterans cuts until pub
lie sentiment on new tax program
could be determined.
Mr.. Roosevelt made it most emphatic
that he regarded a balanced Govern
ment budget the keystone to the re-
turn to prosperity.
Lewis Douglas. director of the budget,
told last nights White House parley
that ], SOC, 900 men had been put to
to continue, the Government must be
kept on pay-as-you-go basis.
Faced with the alternative of reject
ing the Senate limitation or approving
new taxes" Rainey asserted, "the House
right now would accept the limitation
and refuse to levy taxes. :.
"The situation thus is that we viii
delay action on the Senate rider on
the independent Offices bill until the
members have had time to heal, from
the people back home" -
Consequently, Rainey said, Chairman
Buchanan of the Appropriations Com
mittee will not call the Independent
Offices bill up on the floor until tomor-
row or later Other Democratic lead
ers expressed belief that it would not
be brought up until possibly Thursday.
Smell Declines to Help.
Representative Smell of New York,
the Republican leader, indicated little
help could be expected from his party
in an effort to reject the Senate amend
ment.
I'VE were assured" Smell said, "that
there would be nothing to complain
about on service-connected cases. But
there is.
Here we give the President right to
cut s400, 100000 off veterans ana then
make an outright gift of $50, 1000, 900 to
China to buy wheat and cotton.
Talk about needing new taxes to
balance the budget That's bunk. The
budget isn't balanced and won't be bal
anced with $4,000, 900 in new taxes
even if we accept the Senate limitation. "
Rainey, like other leaders, conceded
these Notwithstanding from last
nights White House conference when
Democratic chiefs were told that the
House either must reject the Senate
Limitation or add new taxes-"make
impossible adjournment by Saturday
as we had hoped"
There is no way now Of telling when
we will get away" he asserted. Some
party leaders took the position that II
the independent Offices measure were
called up Immediately, the House might
insist upon an amendment limiting the
veterans cuts to Is per cent, as against
the IS per cent approved by the Senate
Continued on Page 2. Column g.