STRONG REBUFF

New Zealand Herald, Volume LXXV, Issue 23010, 11 April 1938, Page 11

STRONG REBUFF

PRESIDENT ROOSEVELT REORGANISATION BILL DEFEAT IN LOWER HOUSE EVIDENCE OF BITTERNESS By Telegraph—Press Association— Copyright (Received April 10, 7.5 p.m.) WASHINGTON. Afrii 9 The most stunning blow to the Administration since the defeat of its Supreme Court plans last year was delivered by the House of Representatives which killed the Reorganisation Bill by re-commitfcmg it to a committee by 204 votes to 196. , ■'

Following upon the defeat of the bill, says a telegram from New York, Wall Street prices rose, shares gaining two to six points in the year's heaviest Saturday session.

President Roosevelt in a letter to a friend stated that the defeat of tho measure offered no occasion for personal recrimination.

However, there is evidence of bitterness behind the scenes and it is expected that there will be a tremendous nation-wide struggle between the President and his critics in the 1938 political campaigns. ' Many reasons are ascribed for the defeat of the bill, but it is certain that it was largely a personal rebuff for the President. There has been growing a belief that too many powers a.re vested in the office of President and growing impatience at the Administration's failure to remove the obstacles which are blocking business improvement. .

Government supporters ascribe the defeat of the measure to propagandists who raised a sham dictatorship issue, also to the influence of Government employees who would have suffered in the proposed reorganisation.

A cablegram from Washington on March 28 stated: President Roosevelt scored a victory in a contest which closely resembled the bitter Supreme Court fight, when the Senate passed the so-called Governmental Reorganisation Bill. This is one of his four principal long-range reform measures under which he would be authorised to reduce, co-ordinate or reorganise various executive agencies of the Government. The bill also would vest in him extraordinary powers to abolish the Civil Service Commission and change the merit system, abolish the ComptrollerGeneral's office, and other, things. The measure, which was fought by leading figures of both parties on the ground that it would give the President the powers of a dictator, and aroused great public interest, was i plainly a test of the President's prestige. and even to the last minute it was feared it would be defeated.

The bill now goes to the House of Representatives, which last year passed a more limited measure.