The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-06-05
DELAY HOUSE
SHOWDOWN ON
VETERAN CUTS
Roosevelt Issues UItimatum
to Congress in Effort to
QueII Uprising.
ECONOMY OR TAXES?
Balanced Budget If 1t Takes
All Summer Is EdiCt
of President.
ECONOMY OR TAXES?
BY WILLIAM F. KERRY
United Press staff Correspondent

WASHINGTON, June 5.-House
leaders definitely decided today to
delay consideration of proposed in
creases in veterans appropriations
in a desperate hope that President
Roosevelt's dramatic appeal to the
nation" might reverse congressional
sentiment.
The agreement was announced by
Speaker Henry T. Rainey, who said
the independent Offices supply bill
carrying the senate rider adding
$170,000,000 for veterans compen-
sation might not be considered by
the chamber until late this week.
Democratic chieftains were faced
with a presidential ultimatum that
they either must reject the senate
action, or else raise new taxes to
insure a balanced budget.
Although firmly convinced that a
substantial house majority favors
increasing the eX-servicemen's al
lowanceS, the leadership will make
an effort to sustain the President.
Postponement of Issue
Party strategy calls for postpone
ment of the issue as long as pos
sible, allowing the growing rebel
lion to simmer down"
1t is hoped that threat of new
taxation will arouse public protests
to counteract the drive for COM
pensation increases over the econ
omy program.
The present temper of the house,
Speaker Rainey said, is that it
would approve the senate action or
do something worse"
To add to the troubles of leaders,
word came from Republican Leader
Bertrand H. Smell that little help
can be expected from minority ranks
on the veterans controversy.
In a dramatic midnight ultima
tum to Democratic leaders and their
insurgent followers, the President
declared he would hold congress in
session "all summer" if necessary,
to insure a balanced budget, Ivun-
dalton stone of his plans for ma
tional recovery.
Economy Is Repudiated
Singing congressional reputation
of the White House veterans econ
omy proposals, coupled with senate
committee defeat of vital sections
of the industrial regulation bill,
brought the vigorous action from
the President.
The President had counted on
saving $420,000,000 by slashing bene-
fits to war veterans, which now to-
tai more than twice that sum.
The senate eliminated $170,000,000
of this saving, by forbidding the
President to make reductions of
more than Is per cent in payments
to any veteran whose disability is
traceable to his war service.
There has been every indication
that the house would approve the
senate action, or perhaps even i'm
pose Is per cent limitation.
Edict Given Congress
The veterans funds are provided
IN the independent offices appro-
priation bill, which had been ex-
pected to come up in the house to-
day for a test vote on the sen@e
changes.
Most house leaders promised to
fight to the end for support of the
veterans reductions as planned by
the President. They felt this an
easier alternative than new and I'M
popular taxation.
Some of them believe Mr.. RooSe-
velts ultimatum might win back
the Stampeding rank and file.
Others believed the tide was
swinging so strongly in favor of
the veterans that the benefits
would be increased anyway.