Evening star., 1944-02-12
SubsidyForces
Sure TheyCan
Sustain Veto
Senate Approves
Bunkheud Bill
By 43 to %

Administration leaders at the
Capitol were confident today
that they can uphold an ex-
pected presidential veto of the
Bankhead bill to ban use of Fed
eral funds for consumer food
subsidies. The Senate passed
the bill yesterday, 43 to %.
They pointed out that the op-
ponents of subsidies failed to pile up
two-thirds vote required to over
ride veto. Senator Ellender, DEM
ocrat, of Louisiana, subsidy advo-
vate, declared:
II have no doubt that the Presi-
dent will direct that the subsidy
program be continued if his veto Is
sustained, and I think it is going to
be sustained"
House Vote Due Monday.
Passage of the Bankhead bill left
the subsidy issue in the following
legislative status:
The Senate bill goes to the House
where it probably will be voted on
Monday. House leaders expect its
prompt acceptance. 1t then will go
to the White House for the expected
veto. The antisubsidy legislation,
as passed by the Senate differs
from House version passed some
three months ago in that it would
allow continuance of subsidy pay
ments through June 80, instead Of
cutting them off at once. It also
carries rider directing Federal
agencies to adjust milk prices up
ward to reflect increased production
costs since January /, 1941.
If and when the Bankhead bill Is
vetoed, hurried legislation will be
necessary to extend the life of the
Commodity Credit Corp, main dis
penser of subsidies, which dies Feb
ruary II under existing legislation.
The CCC itself was not an issue
in the subsidy fight, and most of the
antiSubsidy legislators favor it.
Therefore no trouble is foreseen in
rushing through promptly legislation
to continue its existence.
Coalition Passes Ban.
The Bankhead bill was passed yes
terday largely by a combination Of
Southern Democrats and Repub-
licans. Sentiment against subsidies
is strong in many of the agricultural
Southern States where they are
viewed as weapon to keep farm
prices down. Only three Republican
Senators voted in favor of subsidies,
and they were from predominantly
industrial States where their wage
earning constituents have stake
in keeping food prices as low as
possible.
| The three were Senators Vanden-
berg and Ferguson of Michigan and
Danaher of Connecticut. Senator
Vandenberg explained his vote by
saying the administration held that
the wage level could not be MAIN
tanned if subsidies were prohibited,
and added:
Whether We like it or not, It
seems to me that this puts us on
notice that the total prohibition
of consumer subsidies will result
in inevitable imitation on the wage
front. I refuse to take any part
of the responsibility for any such
calamity or be any part of such
an alibi."
Amendments Rejected.
Before the final vote on the Bank
head bill, the Senate rejected So
to II, an amendment by Senator
Clark, Democrat, of Missouri which
would have banned subsidies of all
kinds, including support floor
prices" on corn, cotton, sugar beets
and other farm commodities.
The Senate also rejected, As to 90,
the so-called stamp plan" for
granting food subsidies to low-in-
come families, project strongly
backed by Senator La Toilette, Pro-
gressive, of Wisconsin and Senator
Aiken, Republican, of Vermont.
The plan provided for a fund Of
$500 900 900 or one-third the
amount the administration asked
for food subsidies-from which FAM
lilies with an income of s1,1OO a year
(see SUBSIDIES, Page AID