Evening star., 1933-06-06
Acts as Result of Congress
sionaI Threats to Revise
Economy Bill and Increase
Outlay by s17O,0o0,oo0.
SUBSTITUTE REGULATION
OFFERED BY PRESIDENT
White House Acts Shortly After
Rainey Had Predicted Passage
of New Plan-Maximum Reduc-
ton Fixed at Is Per Cent Under
Rules.

President Roosevelt today signed
an executive order fixing new and
higher levels of compensation for
combat-incurred disabilities OF
veterans than was originally pro-
posed in the tentative regulations
issued under the economy act.
Mr.. Roosevelt speeded the modi-
fed regulations into effect as the
result of activities on Capitol Hill
toward limiting the reductions IN
veterans allowances he might i'm
pose under the economy bill.
AS the result of Senate action
in limiting cuts of service-con-
nected veterans to Is per cent,
thereby increasing Government
outlays by an estimated $170, ,000,-
900 a year, President Roosevelt
served notice if that action was
adhered to, additional taxes would
be necessary to balance the
budget.
Substitute for Plan.
ONLY a little while before the White
House acted, Speaker Rainey told news
paper men the House would approve
the Is per cent limitation or substi-
tute proposal to be offered by President
Roosevelt. The new regulations were
the administrators substitute.
House Democratic leaders deferred
formal consideration of the Senate
amendment pending information from
the White House on the extent of the
modified veterans regulations.
1t was the hope of the President that
his new compensation rates would avoid
the greater increase IN ecmpensations
ures go into effect he win demand addi-
tional taxes to pay them.
On the basis of his increases in pay
for direct service connected disabilities,
it was the intention of the President
not to ask for new taxes to meet this
relaxation in the economy program.
Limited to Is Per Cent.
The regulations provide for an aver
age reduction in service connected cases
of approximately 18 per cent.
No service connected disability will
be reduced by more than Is per cent,
the limit voted by the Senate.
The modified regulations apply both
to World War veterans and to Spanish
War veterans with direct service-con-
nScUeQ ulSaplllJltS anu W pCdSc-bAiiC
veterans who have incurred disabilities
while with an expeditionary force In
line of duty.
The following announcement was
made at the White House:
Important changes were made today
by the President in regulations having
to do with compensation allowances for
veterans of the World War and the
Spanish American War. These changes
were approved by the President by an
executive order which he signed.
The object of the changes made was
to reduce the severity of cuts originally
proposed under the so-called economy
bill passed by the Congress to maintain
the credit of the United States.
THE new regulations set forth in the
executive order were made possible by
the Presidents original direction that
the tentative regulations be carefully
reviewed and amended to specifically
prevent cuts in compensation OF serv-
ice connected veterans which would be
deeper than was intended and to effect
more equitable levels of payment.
Under the new regulations, no d.
rectly service connected veteran will be
reduced in payment by more than Is
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