Evening star., 1933-01-15
Assurance to Speed Reform
Regarded as Move to
Curb InfIationists.
BIPARTISAN BLOC SEEN
IN PLANS OF SPEAKER
Members of House Judiciary Com
mittee Discuss Precarious Situa-
tion of Railway Finances.

The urgency of immediate bank
ruptcy reform was emphasized by
Speaker John N Garner yesterday as
members Of the House Judiciary Com
mittee In executive session discussed
the precarious situation In railroad
finances with two members of the
Interstate Commerce Commission and
Charles A. Miller, president of the Re-
construction Finance Corporation.
The Speaker, viewing the legislative
problem as "a bipartisan proposition"
gave virtual assurance that the pro-
gram to revise the bankruptcy laws to
relieve or scale down the load of debt,
individual and corporate, along the
lines recommended by President Hoover,
would get action in the House prob
ably this week. He suggested also that
there was no reason why the combina-
ton plan nov being considered by
the Judiciary Committee should be
mere emergency legislation, but thought
1t should envision permanent reform
OF the bankruptcy statutes and re-
ceivership procedure.
The attitude of the Speaker was
taken to mean that the Democratic
leadership in the House hopes to ally
itself with the Republicans in a BIZ
partisan bloc to head-off the group ad-
vocating legislation to initiate the cur
rency along the lines Of the bonus bill
but without the feature Of the bonus
measure which, despite its inflationary
proce lure, did propose to pay of the
d juSted compensation certificates
which are definite obligations Of the
Government due in the future.
Speaks of Suspending Rules.
The inflationists are rallying behind
the Busby bill to issue So, 200, 600 900 in
Government bonds as backing for a new
currency issue on an equal amount over
period OF three years, the last 81 ,000,-
100000 not to be issued If the first two
annual hypodermics to cheaper the dol
lar have been successful.
While the Judiciary Committee was
meeting with the officers of the Com
merce Commission and the Finance
Corporation, Speaker Garner spoke Of
Suspending the rules of the House for
bankruptcy legislation. He even sllg-
gested consideration by unanimous
consent II the Republican leadership
was prepared to go ahead on the basis
OF President Hoover's recommendation
and the judiciary Committee could
agree on the details of bill predicated
on the McKeown bill, covering indiyid-
ual debtors, and the La Guardia meas
ure for corporate adjustments carrying
special section for the railroads and
requiring approval by the Interstate
Commerce Commission.
It Is apparent that House leaders are
convinced that, If scaling down Of
debts Is imminent, the adjustment
should be brought about by changes in
the bankruptcy law, even for a limited
period. Such procedure, it is believed,
could be controlled while a definite in
hation OF the currency to provide tenn
porary relief might easily get out Of
hand.
Judiciary Committee Meets.
The Judiciary Committee met yes
terday with the hope of reporting q
bill, but the all-day session found its
members still discussing details. The
presence of President Miller, Of the
Finance Corporation, several experts
from the corporations railroad loan
division, and Commissioners Charles D.
McHaffie and James B. Eastman Of the
finance division of the Commerce COM
mission, indicated that railroad finances
and the plight of several large COM
panieS, confronted with possible re-
ceiverships, were foremost in the dis
cuSsions.
Representative Andrew j. Montague,
Democrat, of Virginia, who presided in
the absence of Chairman Hatton w.
Summers, Democrat. of Texas, said the
committee had sought information
from the officials "in an informal con-
ference" Representatives L. c. Dyer,
Republican, of Missouri, and Earl G..
Michener, Republican. of Michigan, as
members of the committee, indicated
the draft of the bill was far from COM
plete, but expressed hope that 1t would
be agreed upon next week.
In outlining his position ON the pro-
posed legislation, Speaker Garner said:
I do not see why we should not
pass the bill. either under suspension
OF the rules by unanimous consent, or
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