Evening star., 1933-01-05

Continued From First Page)
and above what is being saved by the
existing economy law during the pres
ent fiscal year.
| If the various changes in the economy
law suggested are approved by the APP
preparation Committee, they will still
have two hurdles to cross, namely, ap-
proval by the Senate and by the con-
ferees for the House and Senate.
| The economy group, during its six
weeks of deliberation, touched on other
phases of the economy law regarding
which no changes are recommended, but
Senator Bingham explained the report
as submitted represents only those pro-
posals on which the committee was
| unanimous.
The removal of the ban on automatic
promotions will benefit principally the
Army and Navy, certain groups in the
Postal Service and police and firemen
in the District of Columbia who were
deprived of these automatic promotions
| by the current law. The existing econ
omy law suspended all annual leave for
| the current year and the House bill for
next year continued the suspension
without change. The Senate Commit
tee also voted to continue the suspen-
sion Of annual leave, with minor
amendment affecting only employees in
the Panama Canal Zone.
The legislative furlough, equivalent
to an 8l5 per cent pay cut, already In
effect, applies to all annual employees
who receive more than $1,000 year
and the Senate committee, in continu-
ing the furlough plan, did not disturb
this exemption. The Senate committee
brought the total pay cut up to 10 per
cent by adding at the end of the fur
| Tough sections of the existing law the
! following new paragraph:
| THE rate of compensation OF each
officer and employe to whom subsection
| (a) or (b) applies shall be reduced by
| 123 per centum."
The Senate Appropriations Commit
| tee, in a two-hour executive session,
all of the other recommendations of the
economy group, except for one change
in the new reorganization plan.
Chairman Bingham Of the economy
group said it was not realized until
after the full committee meeting began
that the new section on reorganization
would have enabled the President to
abolish departments as we'll as bureaus
or branches of departments. The econ
omy group had followed a policy of
recommending only unanimous pro-
posals, and, according to Senator Bing-
ham, eliminated the word depart
ments" from its report.
Byrnes Motion Fails.
Senator Byrnes. Democrat, South
Carolina, author of the new reorganiza-
ton section, made a motion in the full
committee to have the word depart
ment" left in, but was defeated.
As approved by the full committee,
therefore, the plan broadens the exist
ing reorganization power by enabling
the President to abolish as we'll as con-
solldate bureaus, but not an entire eXecu-
tive department. Another respect in
which the new plan broadens his au-
thority is a requirement that in order
to stop a reorganization order issued by
the President, both branches of Con-
gress would have to pass a concurrent
veto resolution within 90 days, whereas
the present law makes 1t possible for
one branch OF Congress to stop reorgan-
ization.
Summing up the pay-cut provisions,
Senator Bingham said they mean a 10
per cent cut on all salaries, compensa-
tions and pensions in excess of $1,000
year and under $4,000 a year. As
in the existing law, salaries of $4,000
| year but less than $4,000, the cut
is II per cent: if $4,000 but less than
| $4,000, Is per cent, and if $4,000 or
more. 20 per cent.
Green Calls Cut Unfair.
William Green, president of the
! American Federation of Labor, who was
at the Capitol in connection with other
matters, made the following comment
when he learned of the new pay-cut
proposal:
1T is unfair and unjustifable, and
we will oppose it with all our vigor"
The economy program is being han
died as a part of the Treasury Post
Office supply bill, the first of the regu-
lar appropriation measures to be taken
up. Now that the economy plan has
been drafted, it is probable that later
in the day Senator Oddie of Nevada
will call a meeting of the Treasury
Post Office Subcommittee to work out
the money items for those two depart
ments. AS soon as this is done, the
entire Appropriations Committee will be
| assembled again, probably tomorrow, to
report the bill to the Senate. The pay
/ cut sections and other economy fea-
lures, although being enacted in the
| Treasury Post Office bill, will apply to
the Government service as whole.
The Senate committee recommends
that the savings resulting from Its rec
concentrations be impounded in the
treasury. The House continued the pro-
VISIONS OF the present law with respect
70 reductions in overtime pay. The Sen
ate committee continues these provisions,
ou' eases up somewhat on night work.