Evening star., 1947-03-29
U. 5. Employees Union
Asks Restoration Of
Treasury Budget Cuts

Treasury Budget Cuts
Luther C. Steward, president Of
the National Federation of Federal
Employees, today asked Senate ap-
preparations subcommittee to restore
the amounts cut by the House from
the Bureau of Internal Revenue and
the Bureau of Customs appropria-
tions.
Since these two agencies are en-
gagged in activities producing rev.
enue, substantial cut in their per-
sonnel would result in "loss of Fed
eral revenues in substantial,
amounts" he told the committee.
His federation, Mr.. Steward said
repeatedly has warned Government
administrators that if they did not
clean up the dust in their corners
and reduce unnecessary personnel
the meat axe would be used" by
Congress.
Rank and File Seen Sufferers.
In such wholesale dismissals, he
said, it always is the rank and file
who suffer"
The Senate subcommittee is re-
viewing an $882, ,000, 900 cut made by
the House in operating funds of the
Treasury and Post Office Depart
ments in passing on their combined
appropriation bill.
Chairman Carbon announced that
the subcommittee has asked the
Treasury Department for basic in
formation on the productivity OF
revenue by employees.
The appropriation bill as passed
by the House, Mr.. Steward said
calls for a decrease in funds for the
Internal Revenue Bureau of $780,
100000, which would necessitate the
separation "of several thousand en-
ployes now engaged in work incident
to the collection of Federal rev.
enues."
Cut Called Mistake.
"It has been repeatedly demonstrat-
ed" said the witness, that any
addition to internal revenue person
mel engaged in the enforcement
features of the Internal Revenue
Acts has brought into the Treasury
sums amounting to many times the
expenses involved"
Regarding the $3,505, 900 cut in
the House in estimates for admins
trative expenses of the Customs
Service, Mr.. Steward said that any
relaxation of the vigilance of GUS
toms border and port patrols would
be a mistake. He charged that
proposals to absorb this cut largely
by dismissals of these patrols would
serve "as an invitation to law break
ers as well as further to impair
Federal revenues"
Earlier Senators Gordon and Reed,
Republican, Of Kansas, complained
that Government agencies are bat
ting every attempt of Congress to
whittle down Government costs.
1.-THE people very definitely voted
for economy in Government in the
last election" Senator Reed told a
reporter, "but we have yet to get
any real help from any Government
department, bureau, agency or Off
cial"
Senator Gordon is chairman of
an appropriations subcommittee
now reviewing an 1882 100000 cut
made by the House in operating
funds of the Treasury and Post
Office Departments. He said:
Senator Gordon said:
Apparently Congress is facing or
ganized opposition of the executive
departments on any and all econ
omieS."
Advice Needed in Cuts.
Senator Reed declared Congress
may be forced to take unintelligent
action" on slashing Government out
lays unless heads of departments
and agencies will advise where cuts
can best be made.
H. r. johnson, commissioner of
the Treasury Customs Bureau,
agreed to return Monday with plans
for meeting a $3,500,000 House slash
in operating funds by some means
other than dismissal of 1,500 border
and port patrol officers.
Senators Gordon, Reed and
Bridges, Republican, of New Hamp-
shire protested yesterday that
thousands of kilograms and letters
have been showered on Congress in
protest against the dismissals. They
said it looked like an organized
DroDapanda camnaign
Denies knowledge of Protests.
Mr.. johnson, veteran of 26 years
Government service, replied he
neither organized, approved nor
knew about the protests.
I've lived in Washington long
enough to know better than to
start a campaign against Congress,
the commissioner assured the Sen
ators.
He said his dismissal notices in
cluded the information that they
would be Cancelled if the Senate
restored funds eliminated by the
House and that all Government en-
ployes have the right to appeal di-
rectly to members of the Congress.
Mr.. johnson promised he would
discipline any of his employees II
he found they had used Govern
ment cars or transportation to
whip up opposition" to the funds
reduction.
Balanced Budget Seen.
One of those dismissed, Edwin G
Klemm, veteran of the Army Air
Force, told the committee today
he had been port patrol officer
at Baltimore. He said he had passed
the civil service examination prior
to his dismissal which would have
qualified him for promotion to a
post as inspector of customs.
Meanwhile, administration fiscal
analysts foresaw not only balanced
Federal budget this year, but the
possibility of a billion dollar pay
ment on the Nations $260,0 100000, 900
debt.
Federal revenues, they said, may
top SAL 900 900 ,000-almost $10,000,-
100000 more than expected.
House Speaker Martin immediate
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