The Washington times., 1934-01-19
SENATE STORM
SURE # He
REFUSES
Leaders in New ParIey With
White House Chief Feel That
His View May Be Changed
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the alleged leak" regarding pros
poets of pay restoration was
looked upon in large measure as
o trial balloon.
A number of recent develop
ments have tended to show that
the cause of the Government en-
ployeS is popular, and q change
Of front on the part Of the Ad-
ministration is thought possible.
Big Business Loss
Policy and politics alike figure
In the situation. The 35 Repub-
lican members of the Senate de-
cided in caucus to back the res
toration movement.
Approximately $1,900,000 is be-
ing lost to employees in Washing
ton each month as a result OF
the is per cent pay cut.
Proponents of restoration point
out that this means q monthly
loss to business men Of Washing
ton of almost that amount.
IF the pay cut were restored,
the money now withheld from
Federal employees in washington
would go into circulation and
therefore better business condi-
tionS here.
Fifteen or sixteen Democratic
Senators are understood to be
pledged for restoration Of salaries.
This would give a clear majority
In the Senate against the pay
cut, and it is also believed that
the subcommittee and the Appro-
priations Committee itself hold
the same view.
In any event, if the Independent
Offices Bill were reported out Of
committee without the pay cut,
1t would be difficult to restore it
on the floor.
On grounds of broad policy. too,
there is another aspect Of impor-
tance. The Administration is COM
mitted to initiation. Cutting the
Government salaries is obviously
deflationary; restoring them aids
the initiation process, and likewise
lines up solidly with the Admin
istration all the employees friends,
including the powerful American
Federation of Labor.
In other words, the success Of
the inflationary school Of thought
against Budget Director Lewis w.
Douglas and other anti-inflation-
lists seems likely to have its effect
in respect to government salaries
IS well as in other inflationary
plans. g ~, -. &
Modification Hinted
Postponement of the Subcom-
mittee hearings today was re-
garded by friends of the Govern
ment workers as indicating that
the Administration, rather than
risk defeat by continuing its
insistence on the pay cut, will
modify it's plans, particularly
since to do so would be consistent
with the remainder of its program
and not to do so would require
constant maintenance Of the de-
fenSive.
Another aspect of the situation
is that affecting the veterans. IL
is understood that Brig. Gen.
Frank T. Hines and Solicitor
James O'Connor Roberts Of the
Veterans Administration have
been in numerous conferences
with the President, several Senar
tors, and Budget Director Douglas
of late, and it is anticipated that
some relief for veterans Is also
anticipated.
Compensation Situation
Specifically, 1t is expected that
veterans in the Government en-
ploy will receive their former rates
Of compensation for service con
nected disabilities, provided their
Federal salaries do not exceed
$2,5O0.
Under the economy program
veterans employed by the Govern
Inent had their compensation cut
TO $6 month.
Especially has sentiment favor
ing full restoration after July l,
been growing in the Senate since
the appearance wednesday OF rep
TeSentatives of labor and the Fed
eral employees before the Senate
subcommittee on the independent
offices supply bill.
These representatives m q e
strong arguments as to why the
employees should be given 100 per
cent basic wages after July l. plac-
ing especial emphasis upon the
anticinsted Sharn rise in the cost
Of living after the new monetay
policy becomes effective. :.
It was shown, as the result OF
an informal poll Of the Subcom-
mittee members yesterday that at
least four of the nine will support
a proposal for full restoration OF
the salaries of the employees In the
lower brackets and that a fifth
member of the group in all prob
ability will join them. This pointed
to the fact that the subcommittee
apparently will recommend to the
full committee that the salaries
be restored in full. to the employees
m the lower pay brackets.
Harrison Leads Way
When the bill reaches the floor
Of the Senate, the Government en-
ployes will find still more friends.
Tor many members have indicated
their intention to afford them re-
lief.
Indeed, Senator Pat Harrison
ED0, OF Mississippi, chairman Of
the Senate Finance Comnnittee