Evening star., 1939-07-30
BY the Associated Press.

bill has been modified greatly.
By the Associated Press.
The Senate approved last night,
As to q, an amendment to the ad-
ministration's S1,640,0000 900 lending
bill designed to prevent Government
interference with existing private
enterprise.
Soon after adopting this proposal
by Senator OMahoney, Democrat,
of Wyoming, the chamber agreed to
limit debate on the lending measure
and recessed until tomorrow.
The agreement, limiting Senators
to 15-minute speeches, was obtained
by the administration leadership
after many previous attempts to
hasten a vote had proved futile.
Sentiment for reduction of the
lending program spread from the
Senate TO the House Banking Com
mittee during the day, bringing
about an $850000,000 reduction in
the measure at that groups hands.
The Banking Committee recon-
mended House passage of curtailed
bill carrying total of 81 $50 900 900.
The bill before the Senate already
had been cut down, by coalition
of Republicans and Democrats, to
S1,640,0 100000. When first intro
duced by administration leaders, the
legislation carried $4,000 100000.
Uniun Political Aid Curbed.
Before it recessed, the Senate ac-
cepted by a voice vote an amend
ment by Senator Tydings. Democrat,
of Maryland to prohibit political
contributions by labor unions or
other organizations except with the
foreknowledge of their members.
Senator Tydings indicated during
debate that the amendment was
aimed at such loans as the $470,000
advance made to the Democratic
party in 1886 by John L. Lewis
United Mine Workers.
Acceptance of the OMahoney pro-
posal came after hours-long debate,
during which Senator Norris, Inde-
pendent, of Nebraska charged that
its practical effect would be ito
make it absolutely impossible for a
municipality to construct an electric
light plant"
The OMahoney amendment pro-
vides that none of the proposed
$3.50, 100000 of public works loans
could go for projects in any field
which private enterprise already was
serving adequately. 1t provides also,
however, that if the owners of a
private business refuse a reason
able public offer to purchase, then
Government funds could be used
for the construction of competing
enterprise.
Give Business the Signal
Senator O'Mahoney, chairman of
the Governments Monopoly Inves-
tigating Committee, told the Senate
that there is no solution" to the
Nations business ills along the
course of relief spending.
The solution lies rather in the
stimulation of private enterprise, A"
he added. Ninety per cent of the
businessmen in the United States
only want to go forward" Senator
OMahoney shouted to the chamber
Give them the signal. Adopt this
amendment"
Several Senators went to Senator
OMahoney's desk and shook his
hand after he had completed an
address lasting more than an hour.
Before approving the O'Mahoney
proposal the chamber rejected SIM
liar amendment offered by Senator
Danaher, Republican, of Connecti-
cut. The Danaher proposal differed
from Senator O'Mahoney'S in that it
would have permitted the courts to
decide whether public offers for the
purchase of existing private enter
prises were reasonable" Under the
O'Mahoney amendment that deci-
sion would be made by the COM
missioner Of public works.
More Trimming in House Seen.
Economy forces predicted the bill
sent to the House by it's Banking
Committee would be trimmed addi-
tionally when 1t was considered
there. probably next week, but
Chairman Steagall, Democrat, OF
Alabama of the committee told re-
porters:
ut will be found that most of the
misunderstanding and hesitation on
the part of members in the support
of this bill will not exist after the
measure is read and understood
with the reductions and restrictions
we have put in it,
Representatives said IA members
of the Banking Committee, includ-
ing / Republican, voted for the
81 950O00000 bill and 10 against.
The loan authorize tions which the
House committee-approv measure
carries, and the amounts of reduc-
tions it makes in the administration
requests, are as follows: $250,O00 ,00(
for railroad equipment (reduceo
$3.50, 100000; $5O0,0O0,O0O for road!
(reduced $250,0OO OOO); 100000 ,O0(
for farm tenant aid reduced $780,.
100000; s350OO0,0OO for public
works (unchanged $350,000, 900 fol
rural electrification (reduced $780,.
600, ,00O; $lO0,000,0O0 for Export.
Import Bank to finance exports o.
American goods.
Committee members said the re.
vised bill would not permit use Of
funds for the construction of tol
roads, as the administration pro.
posed.
House Groups Changes.
They said the committee alst
eliminated authority for the Presi
dent to Kermit construction O
bridges ovei havigable streams with
out consent of Congress, and pro
vided that S23O,0OO,000 should b.
used to "unfreeze" road money which
(See LENDING, Page A-16)
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