Evening star., 1933-06-05
DEBATE ROOSEVELT
BUDGET WARNING.
House Leaders to Hold Spe-
cial Meeting Tomorrow
on Veterans.
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Rainey said the President is working
on plan to liberaliZe the cuts on such
basis that no veteran whose disabili-
ties resulted directly from service would
be cut more than 81 per cent.
That" he said, would cut the
savings s5oo0o,0 900 to $4,000, 900, but
1t would not apply to veterans whose
ailments are presumed to have orig
mated from service"
The Senate amendment, Rainey con-
tinued. has been interpreted as for
bidding more than a Is per cent cut.
both in directly service connected and
presumptive cases, as well as in PEN
sions to widows and orphans.
Favors Sales Tax.
Meanwhile. Representative Crosser
Democrat, Ohio, Chairman of the
Democratic Steering Committee, called
a meeting Of a special committee desig-
mated by the party caucus to protest
the economy regulations affecting vet
Grams.
Representative Lea Democrat Cali
formal, chairman Of the Democratic
caucus. said he favored a sales tax to
raise the $170,000,000 to pay the vet
Grams.
Il think the budget ought to be
balanced" Lea said, but at the same
time think We ought to do justice to
our soldiers"
Rainey said if the House did approve
a limitation on veterans cuts, and as
a result had to raise new taxes, 1T will
mean a new tax bill and nobody in the
House wants to vote for new taxes.
I'VE would have to find new source.
1t might have to be tax en- gross in
comes. We certainlJ can't get any more
money out of ret income tax, and
gasoline is giving us about all it can"
Discuss Veto Possibility.
Although certain that a majority of
Democrats would vote for the Senate
limitation, or even one of Is per cent,
House leaders were not so positive that
either limitation would be rejected. even
II Mr.. Roosevelt vetoes the bill
Il hesitate to predict what would
happen to veto," Rainey said.
Other conferees reported that Presi-
dent Roosevelt indicated strongly he
was opposed to abandoning" the prin-
ciple followed so far. that compensa-
tion should be limited to two classes
veterans whose disabilities, originated
from service or others totally disabled.
One Democratic leader. forbidding the
use Of his name. told newspaper men
"the judicious distribution of little
patronage might be Of tremendous help
right now
II wanted to tell the President that
last night, but we just didn't get around
to it." the Democratic leader added
"The President might get by with q
bludgeon. and told him so last night.
But the man who is hit over the head
with club remembers it long time.
I told the President he might accom-
plish his purpose this time, but there
are two more sessions Of this same Con-
gress coming along"
Boosted BY Senate.
The Senate Friday boosted the appro-
priations in the independent Offices bill
from S543, 100000 to S715,000. 900, by
increasing the veterans pension funds
by $170,675,607.
Budget Director Douglas, who, with
Veterans Administrator Hines and So
licitor James O'Connor Roberts, promul-
gated the regulations designed to save
S420, ,000, 900 of the heretofore annual
outlay Of almost billion dollars for
veterans, pointed out the increase Of
$170,0 ,000, 600 shot big hole in the adj
ministration,s budget-balancing pro-
gram.
The senate's action came after 1t be-
came known that the Veterans ADJ
ministration was cutting compensation
Of combat-wounded Of the World War
by so per cent, to stay within the sum
this class of pensioners by Director
Douglas. Charges that Douglas has
abused" the power given the President
under the economy act in making these
cuts were made frequently by Senators.
Returning from cruise down the
Potomac River, President Roosevelt
called the Is House Democrats to the
White House last night. He informed
them in no uncertain terms that though
he wanted Congress to adjourn Satur-
day, he was prepared to stick 1t out
in Washington all Summer to keep the
budget balanced.
the Democratic controlled Congress, In
on veterans allowances, was taking
back power previously given him, and
he insisted that, by increasing expen-
ditures, it was in violation Of the party's
campaign pledge.
He recalled the Veterans Admins
tration was making survey OF the
border-line cases where veterans are
destitute and that it was seeking re-
Taxation Of regulations under the econ
omy act. This study, he said, was
nearing completion and changes would
be announced probably within . few
days.
Destitute men, the President was re-
ported as saying, are to be given the
benefit of the doubt as to service origin
of their troubles, so no man Is to be
thrown out of q hospital without means
of support.
Questions Tax Raising.
The President then put the question
of what Congress was going to do, and
how, if it insisted on voting the out
lay of $170,675. GOT, it would raise taxes.
Mr. Roosevelt is known to have en-
phasized that he did not want the
budget to be thrown lopsided. A de-
cision on what taxes to impose appar-
emily was not sought. as
Others at the conferences were Rep
Buchanan and Reybllrn OF
Texas, Warren of North Carolina,
Bankhead and McDuf1ie of Alabama,
Milligan Of Missouri. Arnold of Illinois,
of Tennessee and Lewis Of
Colorado; Director Douglas and ADJ
Hines.
BANKRUPTCY BILL lsas.ss'. -
IS PASSED BY HOUSE