The Washington times., 1937-06-15
CONTRIBUTIONS
MANDATORY
UNDER PLAN
Administration Girds
Forces to Battle
New Policy
BY WILLIAM X. HUTCHINSON
international News Service

AAOSAhusAVAh8A SsCWb SgANANS
A major legislative battle
broke in the Senate today as the
administration rallied its forces
to oppose q provision in the
$500, 100000 relief bill, which
would compel mandatory local
contributions to the cost Of I'm
employment relief.
A new policy, written into the
bill by the Senate Appropriations
Committee, provided that no
Federal funds could be MADE
available for 'non-federal relief
projects unless 40 per cent OF
the cost were put up by local
communities. The President was
authorized to permit exception
if the community could prove 1t
was unable to raise it's share OF
the cost of any worthy project.
Hopkins Voices Protest
Relief Administrator Harry L.
Hopkins protested against the
change. In the past Hopkins
has exercised a wide discretion
ary power in fixing the percent
age Of local contributions, even
to the extent Of waving them
entirely.
A minority of the committee
filed a separate report urging
defeat of the provision. Led by
Senator Mcclellan Cd OF Ten.
nessee, this minority ignored
Hopkins and pleaded that the
President again be trusted with
discretionary power to spend the
relief fund as he saw fit
The minority report pointed out
that from June IS, 1888, to Febru-
airy 9, this year-in three years
and eight months-Congress gave
the President discretionary power
to spend $12,76S, 900, 900 on relief.
The report read:
'In otter words, in seven con-
secutive acts we entrusted to the
President the disposition Of these
funds"
SPONSORED BY BYRNES
Beside Mcclellan, the minority
report was signed by Senators Trll-
man CD, Of Missouri: Nye (R0,
of North Dakota; Hayden Cd, Of
Arizona; Overton Cd, of Louisi-
ana; Hitchcock CD, of South Da-
kota, and o'Mahoney CD. Of Wyo-
ming. ~
The new policy was sponsored
by Senator Byrnes CD, Of South
Carolina, a close friend Of the
President, who demanded economy
in the administration Of relief
funds. He proposed the local con.
tributions, he said, as a means OF
eliminating unnecessary projects
and to force local responsibility in
pairing down relief rolls. At the
same time, he declared local con-
tributions would swell relief funds
and eliminate any necessity of cut
ting worthy needy from relief rolls.
His proposal was adopted in CON-
mittee by a 13-to-10 vote, with
party lines divided.
Power Not at Stake
Proponents of the change argued
the Presidents power was not in
issue, since he would be authorized
to waive local contributions in
worthy cases.
The bill was amended to bar
from relief any person refusing
private employment. Relief en-
rollees obtaining such work would
be reinstated on the relief rolls
SO soon as their private employ
ment ended.
The committee also amended
the bill to extend the life Of the
PWA for two years and use its
$500, 900, 900 revolving fund to COM
plete projects now. approved and
awaiting funds. Many Of these
projects are schools and most Of
them involve cases in which local
communities raised their share Of
the cost through bond issues.
The 40 per cent contribution
provision would result in a work
program fund totaling $2,100, 00O.-
900 if the States participate to
full extent in the $500, 000, 900
proposed WPA Federal program,
WPA officials said. Such find,
according to WPA records, would
mean a reduction Of only about
100000 workers on the WPA rclls
at the current man cost per year.