Evening star., 1933-01-06
DEMOCRATS AGREE
ON BUDGET PLAN
Leaders Fear Extra Session
Must Be Called Despite
Their Efforts.
Continued From First Psge.)

rN---
be put through promptly, it might be
made to apply to incomes derived in
1882 on which income taxes will be paid
On and after March Is. If the new
rates could be made to apply immedi-
ately, he said It would be possible to
balance the budget more quickly.
Senator Robinson of Arkansas. Demo-
cratic leader of the Senate, also was in
conference with Mr.. Roosevelt today.
The financial crisis that confronts
some of the railroads was brought into
the Democratic conference and infor-
nation that at least two class A roads
two Of the biggest Of the systems, were
In desperate traits was laid before it.
1t was generally agreed that some
amendment of the Reconstruction
Finance Corporation act was necessary
ut the present session to permit the
corporation to lend more money to the
railroads. Fear was expressed that II
steps were not taken promptly these
two roads and others might be forced
into the hands of receivers and that
savings banks and insurance companies
holding railroad securities would find
themselves in extremely bad positions.
The tax plan was worked out at a
three-hour conference between Mr..
Roosevelt and the Senate and House
Democratic leaders at Mr.. Roosevelts
house here. Its details were revealed
by the President-elect himself and By
Speaker John N. Garner, Vice-President
-elect, and Senator Robinson of Ar
kansas, the party leader in the Senate
et the conclusion of the conference.
Mr.. Roosevelt insisted that the plan
was not his, but he added that he did
not disapprove it. 1t is. indeed, a plan
wsekfa1, - tio 1ooIere {y1 TNY-
Eress have labored over for days and
which was perfected at the conference
here last night, with Mr.. Roosevelt
''sitting In and giving his blessing at
Che end.
T, The sales tax, or general manufac-
brers' excise tax, was not men
toned at the conference. Nearly
ewo weeks ago Speaker Garner
and Chairman Collier of the House
suppression that the House Democrats
were prepared to balance the budget
now by the adoption of the sales tax.
II that were necessary. Immediately
there came from Albany, where Mr..
Roosevelt Was still domiciled, cir
Eumstantial report that the President
elect was Mortified" No wonder it
was soon thereafter decided that the
Democrats in Congress and their new
chieftain must get together and discuss
the details OF budget balancing legis-
3ation
Not only did Mr.. Roosevelt approve
the plans for tax legislation, but he
also accepted the House farm relief
Is dubbed; kind Of domestic allot-
ment plan with variations. Mr.. Roose-
welt has indicated that II the great
farm organizations of the country could
agree on plan for farm legislation.
&c would be satisfactory to him. He
laid down the principle which in his
opinion should govern In farm relief
legislation Ia his Topeka speech at the
outset of his campaign last Fall. The
bill now before the House is understood
to carry out these principles, in the
opinion Of the President and Of
the farm leaders, and indeed, Of the
bill may be bitter pill to some Of the
Democrats but they are preparing to
Nc. roosevelt gave his approval. too.
to the plan to include In one Of the
appropriation bills broad powers to the
Chief Executive to bring about econo-
my In governmental administration
through the reorganization Of the Gov
ernment. 1t has been herAlded that
the President-elect would welcome such
powers and would tackle the task with
penses in way that Congress would
never dare do.
Prepared Right Now.
The Democratic leaders have in effect
told the country that they are prepared
to balance the budget right now. II
President Hoover. who has demanded
legislation to balance the budget and
has recommended the manufacturers
sales tax as a means thereto, thinks fit
to veto the beer bill, and thereby de-
feat the Democratic plan for a balanced
budget, that, in the opinion Of the
Democrats, Is the Presidents lookout
Should It be possible to put through
the program outlined at the conference
last night for a balanced budget and
for farm relief, Mr.. Roosevelt and the
Democratic leaders in Congress believe
q special session Of the new Congress
after March could be avoided.
We hope 1t can be DONE" is the way
they put it.
As matter Of fact, none of the
conferees who reached the agreement
on the program last night down in
their hearts believes that the program
can 60 through before March 4. They
fear and believe that President Hoover
viii veto both the beer bill and the
farm bill. Nor have they any con-
11dence that these measures can be put
through over presidential veto
The object Of the conference last
night clearly was to present q Demo-
cratic plan" for the present Congress
session and at the same time to obtain
IL
cation IS to what kind Of legislation he
would stand for, particularly for budget
balancing purposes.
There was no discussion Of proposals
Tor currency imitation. no discussion Of
the tariff and none, too, OF the various
proposals to balance the budget through
bond issues, at the conference last
night.
Discuss Repeal Proposal.
The resolution proposing the repeal
of the eighteenth amendment, as draft
ed by the Blaine subcommittee of the
Senate Judiciary Committee, came into
the discussion at the conference, how
ever, and the question was raised as to
whether the resolution conformed to
the platform declaration Of the Demo
cratic party on repeal. Senator Robin
son said that no final conclusion had
peen reacned In REGARD 70 tHc lesO4u
ton, but that it was clearly not in
conformity with the platform declara-
ton, since it proposed to have the
repeal amendment submitted to the
State Legislatures instead OF the con-
Btitutional conventions
The Democrats made it clear that
they do not propose to hitch onto the
beer bill the other proposals for IN
creased revenue. Instead. they Will seek
TO put through a separate revenue bill.
They expressed the utmost confidence
that the beer bill would be brought to
vote in the Senate at the present
session and that it would be passed.
Mr.. Roosevelt leaves at 4 pm. today
TO return to his Hyde Park home UP
the Hudson River. He may confer over
the week end with Secretary Stimson,
depending upon the latter's ability to
come at this time. Discussion with Gov.