DEMOCRATS DIVIDED

Hawera Star, Volume LIII, 12 March 1934, Page 5

DEMOCRATS DIVIDED

ROOSEVELT ECONOMY PLANS,

(By TpWmph—Pres? Association.? WASHINGTON, March 8,

Democratic leaders in the House of Representatives failed to-night to hold their followers in line to support President Roosevelt’s economy programme. At a caucus the Democratic membership rejected a motion, by -Mr J oseph By in is (Tennessee majority leader) to send an independent office Bill carrying the Senate amendments providing for £70,000,000 in veterans? benefits and Federal pay cut restoration to the conference with urn instruction, to the conferees.

It requires a two-thirds majority to bind the membership and those favouring the Administration programme mustered only 136 against 71 in the veterans’ bloc. Tho Speaker (Mr John Rainey) announced after a four-hour meeting behind closed doors that tho Bill would be brought into the House and each Senate amendment voted on separately. The Democratic caucus vote came in face of a threat of veto from the President, "who at a White House conference earlier to-day told the leaders of both Houses that increases in the veterans’ allowances and Government salaries were unacceptable to him. The Senate amendments call for a restoration of the benefits (estimated at £23,600,000) to the veterans taken off the rolls by the Economy Act la'st year, restoration of the 15 per cent, pay reduction for Federal employees and a return of various automatic promotion pay and wages to day labourers in .tlio Fedi ral service.