Evening star., 1949-05-18
Senate Economy Bloc
Fiqhts On for So Cut
In Agencies Funds
ky the Assoeiofed Press


Senators trying to whittle Fed
eral spending. refused today to
give up, despite another setback.
The latest reverse-a victory
for administration budget plans
came late yesterday when the
Senate wiped out its previous or
der calling for a S per cent cut
in the operating costs Of the
Labor Department and the Fed
. eral Security Agency. The re-
duction would have amounted to
about 100000.
After killing that economy Or
der. the Senate passed by voice
vote and sent back to the House
a bill carrying $2,409. 900 900 for
the two agencies for the fiscal
year starting July /. That figure
is $185. 100000 more than the
House voted.
1t was the second regular ap-
preparations bill passed by the
Senate. Last week the economy
group failed In an attempt to
cut S per cent off the annual al
lotment for the Treasury and
Post Offlce Departments.
Uphill Fight Indicated.
Yesterdays defeat disappointed
those out to trim spending. and
it indicated an uphill fight all
the way in the future. But Sen
ator Wherry of Nebraska. the Re
publican leader, said the battle
Is Just getting started.
He told a reporter the economy
bloc will bounce right back with
q motion to cut the 81 800, ,000. 900
Agriculture Department bill by S
per cent. The Senate opened de-
bate on that measure yesterday
and resumes today.
I'VE are going to keep right
on driving" Senator Wherry said.
He. added that II the economy
move gets no place on a bill-by-
bill basis, a motion to trim all
appropriations S to 10 per cent
probably will be offered after all
the money bills have been acted
on.
But Senator Byrd, Democrat, OF
Virginia leader of the spend-less
forces on the Democratic side. said
he is pessimistic about the chances
for an overall cut later. He said
1t will be very difficult to achieve
any economy unless we do it as
We go along"
: The Senate voted. A to 81, on
April % for a S per cent cut In
the Labor Federal Security bill. A
motion by Senator Green, Demo-
crat, OF Rhode Island to reconsider
that decision was approved yes
Rrday. 43 to Al.
Then Senator Ferguson, Re
publican. of Michigan rephrased
the original reduction order and
moved again to send the bill back
to the Appropriations Committee.
The motion was rejected, A to Al.
After that. the Senate voted 43
to IL against the original reduc-
ton edict sponsored by Senator
Taft, Republican, Of Ohio.
Absence of several Senators gen.
orally counted in the economy
camp helped the administration
rack up its victory. Six Repub-
licans and two Democrats who
voted the 5 per cent cut April %
were not on hand for yesterdays
balloting. On the other hand,
only two Democrats who were
against a reduction earlier failed
to vote yesterday.
Across the Capitol, meanwhile,
the House Republican Policy Com
mittee lit into the Mills tax plan"
The COP group called it fraud"
that might well push our econ
omy over the edge and make de-
preston out of a recession"
The Republicans were talking
about a bill introduced yesterday
by Representative Mills. Democrat,
of Arkansas. The measure pro-
poses a Notwithstanding SIS. .000,-.
100000 boost in Governmt reve-
nues for the fiscal year starting
July 1 by requiring corporations
to pay all their 1949 taxes six
months earlier than usual.
Under the plan. Mr.. Mills con-
templates turning a possible
$4,000, 900, 900 Federal deficit into
q substantial surplus. The bill
would require corporations and
also estates. trusts and non-resi-
dent aliens to pay all their 1949
Federal taxes before July l. 1850.
Under the present law they have
IL months-until December. 1850
to complete payment of their
1949 taxes, in four installments.
Reckless Spending Condemned.
Declaring they are for economy
and not more taxes, the House
Republicans said:
1--WE must stop reckless spend
ing. It is the only way we can
prevent economic collapse and
ruin. 80
This fraudulent trick advanced
by the Democrats would force even
our large corporations to 60 to the
banks to borrow money in a criti-
cal time when business conditions
hang in the balance. Rather than
borrow too much money. many
would lay off personnel and bring
much unemployment"
Air Force Checking Further