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79th Congress Ends Postwar Fiscal Year; Cut U. 5. Funds 60% By the Associated Press The 79th Congress ended its first postwar fiscal year yesterday with a spending record showing appro priations cut of approximately 60 per cent from last year’s war-time financial allotments. With only a few major bills to be disposed of. and but little con troversy over the money provisions in them, the fiscal year appropria tion totals as estimated by the House Appropriations Committee will be approximately *24,000,000,000. They are for all activities of the Govern ment for the year starting tomorrow. The total appropriated for the year ending at midnight tonight was *58,921,422,229. Offsetting the *24,000,000,000 ap propriated this year, Congress re captured during the year *64,328, 626,487 in appropriations made pre viously for war activities. A large part of that total came off of the $58,921,422,229 provided during the first part of 1945. Army, Navy Cuts Largest. The biggest peacetime cuts were made in the budgets of the largest war-time spenders, the Army and the Navy. The Army, which received $21, 496,902,030 this year, was given ap proximately $7,500,000,000 for the coming year. The Navy’s record total of $23, 601,136,064 this year was chopped to $4,119,659,300 for next year. On the other hand, many of the so-called “old line” departments, whose operations had been cut dur ing the all-out war effort, received more for the coming year when they get back to normal peacetime pro grams. A comparison of this year’s and next year’s appropriations for the non-war agencies, with action not yet completed on some bills: Agriculture Department, $589,931, 620 this year and $581,240,121 next year. D. C. Gains 11 Millions. District of Columbia, $65,635,660 this year and $76,755,009 next year. Independent offices, $3,121,900,230 this year and $5,094,976,677 next year. Labor Department and Federal Security Agency, $1,115,617,256 this year and $1,136,500,238 next year. Legislative establishment, $50, 994,481 this year and $53,809,736 next year. State, Justice and Commerce De partments, $265,521,700 this year and $438,330,612 next year. Treasury and Postoffice Depart ments, $1,342,958,105 this year and $1,604,556,940 next year. War Department civil functions (engineer projects), $112,450,940 this year and $333,230,498 next year. Deficiency and supplemental ap propriations this year amounted to $7,046,683,985, while for next year they will approximate $3,000,000,000. Truman Gets Navy Bill. The Senate completed legislative action yesterday on a $4,119,659,300 Naval Department appropriation bill, sending it to the White House. The total was about $20,000,000 amaller than that approved by the House, and $20,000,000 larger than the Senate bill. The Senate also attached an amendment to the Labor Depart ment-Federal Security Agency ap propriation bill yesterday returning the United States Employment Serv ice to the States next December 31. However, the Senate rejected an other “rider” amendment which would have forbidden the National Labor Relations Board from con sidering unfair labor practice charges preferred by supervisory employes. The USES amendment went in by a voice vote. The supervisory em ployes amendment was rejected on! a 31 to 34 roll call. Both amend-' ments had been approved by the Appropriations Committee in con-' sidering the $1,151,000,000 annual, supply bill. — . ■ ■■ - I Truman (Continued From First Page.) ---- i greatly impeded,” because producers 1 would continue to hold goods off the ' market in an effort to get even better prices. V Further, the President charged, this woulji wreck the wage stabiliza tion program. "The result would be the begin ning of an inevitable spiral of un . controlled inflation—a race between rising wages and rising prices,” Mr. Truman said in summation. “Far sighted leaders of both labor and management know that nothing can be gained—and everything lost—by simply letting prices and wages chase each other.” At the outset of his speech, the Chief Executive said he vetoed ^the so-called compromise legislation * after long study because of his con viction that it “was no price control bill at all.” Veto Dangers Realized. “You would have soon begun to see thousands and thousands of price increase adding billions and '■> billions of dollars to our cost of liv ing,” he continued, and emphasized: "I could not permit that to hap pen.” Mr. Truman said he realized the dangers of the veto, with the OPA deadline so near at hand, and the accompanying possibility that “for a few days at least we might be with out any price-control law.” In an oblique reminder to Con gress, he added that “I could not bring myself to believe, however, that the representatives of the American people—your Senators and Representatives in Congress—would permit such condition to continue long.” veto Theme Repeated. Repeating a theme of the veto message, the President rebuked Congress for delaying action on price contral, recalling that he had urged this legislation as long ago as last September and had renewed this request four times. "I know that many members of both Houses who voted for the bill which was sent to me did so with regret and only because they had at that time no opportunity to vote for a good bill,” the President con tinued. “Now every member has a clear cut opportunity to show whether or . not he wants effective price con ; trol.” 1 Without going into details, he re called that he had incorporated recommendations for new legisla tion in his veto message, which he said would be needed for a “com paratively short period of time.” Four Points Touched On. There were four points touched on by the President in asking Con gress “to act and act now,” in ordfcr to “give the Nation adequate as surance of completing a successful Security Agency Funds For D. C. Institutions Unchanged by Senate The Senate, passing yesterday the House-approved Labor Department Federal Security Agency appropri ation bill, left unchanged the amount of funds designated for Howard University, Freedmen’s Hos pital, St. Elizabeth's Hospital, the National Institute of Health and the National Cancer Institute. The House had accepted the rec ommendation of its Appropriations Committee, curtailing sharply amounts requested for a construc tion program and other expansion of facilities at Howard. Chairman -McCarran of the sub committee in charge of the bill re ported the same sums for the Dis trict institution which the House had adopted. Both houses have authorized $1,377,920 for an engin eering building and a women’s dor mitory. Several other buildings asked by the university were not aD proved. For part payment of salaries and other expenses $941,700 was appro priated. The rest of the salaries are paid from tuition fees. For other expenses and equipment both houses approved $258,930. The Senate agreed with the House in allocations of $221,800 for the Columbia Institution for the Deaf, $921,000 for the operation of Freed men’s Hospital, $5,966,948 for the National Institute of Health and $1,772,000 for the National Cancer Institute. An appropriation of $3,729,458 for St. Elizabeth's Hospital covers general expenses of maintenance, with $185,000 allowed for repairs and improvements to buildings and grounds. A controversial amendment offer ed by Senator Ball, Republican, of Minnesota, intended to prevent expenditure of any funds allowed the National Labor Relations Board for negotiations with foremen, was voted down 34 to 31. The Ball amendment would have forbidden the board to negotiate with any individual having authority over as many as five employes. The Minnesota Senator pointed out that President Truman, in vetoing the Case labor bill, had stated super visory employes, who organized were in the untenable position of trying to represent both employers and employes. The Senate added $14,928,127 to the $1,136,500,238 total contained in the House bill. The Senate total, however, is $26,647,535 under the , estimates sent by the Budget Bureau ' and $51,203,221 under the appropria tion which Congress made last year for the group of Federal agencies. The bill goes to a Senate-House conference committee to iron out differences. Order of Purple Heart To Install Tomorrow Installation of officers of the Dis trict Department of the Military Order of the Purple Heart will take place at 8 p.m. tomorrow in the VFW Gold Chevron Club, 1319 K street N.W. Elected officers are Albert G. Hil dreth, commander; Howard F. Block, senior vice-commander; Dan iel J. McGillicuddy, junior vice-com mander: Wilbur E. Dove, finance officer; James C. Clarke, inspector; Joseph I. Grobarek, sergeant-at arms and William F. Cotton, judge advocate. James Fistorio was also elected national executive commit teeman, and Frank Haley, alternate. Officers appointed included Mr. Dove, adjutant; Mr. Haley, legisla tive and service officer and Carl A. McQueeney, historian. transition to a sound peace-time •conomy.” He proposed: 1. Extension of the stabilization laws for a full year. 2. Continuation of stabilization subsidies on a scale that would avoid "serious increases” in food prices in the next six months and permit or derly termination of subsidies in the first half of 1947. He estimated a minimum expenditure of a billion and a quarter dollars would be re quired for this purpose. Policy Demanded. 3. The bill should lay down a congressional policy with respect to termination of price controls and subsidies. In this connection, the President approved provision in the vetoed bill for the orderly removal of all price controls and subsidies in the coming year, with the excep tion of those commodities on which —on or before April 1 next—the President finds still in short supply, and in regard to which, the controls will be administered by some agency other than OPA. The President explained that he would not oppose standards for decontrol or for establishment of an independent review board, pro vided protection was assured against lifting price ceilings where serious increases would result. 4. Adjustment of product prices to make maximum production pos sible. Here the President said parenthetically that he does not believe any change in present law is necessary. Stabilization Gams Cited. In asking Congress ‘‘to reconsider the whole problem of stabilization,” the President pointed to the gains on the economic front since the end of the war, with production topping the 1941 level and employ ment 6,000,000 above the figure of that year. Shortages are being eased, he continued, and major labor - managment disputes are settled. “If the stabilization laws are re newed in effective form,” the Presi dent added, “it is expected that the Federal budget will be balanced during the coming year, thus elim inating the deficit which was a basic source of inflationary diffi culties. As the inflationary pressure lessens, commodity after commodity can be removed from controls and we can emerge with a stable econ omy in which the traditional Ameri can free enterprise system can take command.” _ Specializing in > Perfect DIAMONDS And complete line of standord and alf-Americon made watches. Shop at the friendly store— you're always greeted with a Smile—with no obligation to buf*.^ Charge Accounts Invited M. Wurizburger Co, 991 G SI. H.W. siumiNii ukatt EAitNutK—Tresiaem, Truman is snown signing the draft extension act yesterday while Maj. Gen. Lewis B. Hershey, Selective Service dlrctor, and Col. Louis Rerifrow, chief liaison and legislative officer of Selective Service, look on. —Associated Press Photo. -* Draft (Continued From First Page.) and lieutenant commanders, $3,000 to $3,300; lieutenant colonels and commanders, $3,500 to $3,850; col onels and Navy captains, $4,000 to $4,400; all grades of generals and all Navy officers above the rank of captain, flat 10 per cent increase over present base pay. The Army's new discharge policy, which sets the terminal points for the discharge of men as provided in the draft extension measure, pre sents this timetable: 1. By September 30, all nonvolun teer enlisted fathers will be released, along with all non volunteer enlisted men who have completed 20 months’ service. The draft extension meas ure permits fathers, regardless of length of service, to be released on request after August 1. 2. Beginning October 1*. all draftees who will have completed 18 months' service by November 30 will be eligi ble for discharge and will be re leased on that date. 3. After November 30, all draftees will be released at the end of the month in which they accumulate 18 months’ service. Officer Requirements Unchanged. Release requirements for officers remain unchanged. Enlisted WACs will be released under the same time table as the enlisted men until September 30, when the Women's Army Corps goes on a voluntary basis. All re maining WACs will receive their discharges during October, regard less of length of service, unless they sign up for further service. The draft extension bill, signed barely in time to take the place of the six-week "stop-gap” measure which expires tonight, allows ail men who have served 18 consecu tive months or longer—not counting school time—to apply for release starting October 1. In addition to banning the draft of fathers and permitting them to apply for their release after August 1. the draft extension bill contains these major provisions: Extends the draft until next March 31. Makes non-fathers 19 .through 44 years old liable for induction. Limits compulsory service to 18 months. Prohibits the re-drafting of men who have served for at least six months in the armed forces since September 16, 1940. Fixes the size of the armed forces by July 1, 1947, at 1.070,000 for the Army; 558,000 for the Navy and 108.000 for the Marine Corps. Service May be Extended. A service period of more than 18 months may be ordered by the Pres ident if Congress declares that “the national interest is imperiled.” While 18-year-olds cannot be drafted, they are still required to register on their 18th birthday. Draft boards retain their former powers to grant occupational de ferments. Shortly before Congress voted the draft extension, the War Depart ment announced it would not draft men in July or August. About 13,000 are expected to be called in Sep ! tember and an average of 7,000 men a month thereafter, unless volun tary enlistments fill all needs. As a result of the new discharge requirements, the Army expects to lose 140,000 men in July; 130,000 in August; 105.000 in September and 100.000 in October. D. C. Budget <Continued From First Page.) facing a deficit of some $270,000 at the end of the new year unless revenues exceed the estimates. Furthermore, additional costs may be incurred by other legislation which Congress may pass before the end of the new year. District officials were not pre turbed over failure of Congress to pass the District bill yesterday, how ever, for action is hoped for this week. And if there should be a further delay a saving clause written into a deficiency bill enacted recent ly is said to be sufficient to authorise District services to be carried on. In addition to Senator O’ Mahoney, the Senate managers of the bill Include Senators Overton of Louisiana, Thomas of Oklahoma, Chavez of New Mexico and Hoey of North Carolina, Democrats; and Ball of Minnesota. Ferguson of Michigan and Willis of Indiana, Republicans. House conferees, in addition to Acting Chairman Gary, are Repre sentatives O’Neal of Kentucky and Flood of Pennsylvania, Democrats; Stefan of Nebraska, Horan of Washington and Canfield of New Jersey, Republicans. Chairman Cof fee is in his home State, Wash ington. House Wants Separate Law. House conferees were somewhat concerned because of the insistence by some House members that the size of the Federal payment should be changed only after being author ized first by separate legislation since the present sum was so fixed. On the other hand it was argued that the Senate, in adopting an amendment offered on the Senate floor, had very deliberately written the legislative change into the ap propriation bill. Also, it was recalled that Con gress in former years disregarded substantive law calling for a 60-40 division of costs between the Dis trict and Federal Governments, when the House insisted on adop tion of lump sums. Senators O’Mahoney and Overton have Joined in introduction of new basic legislation which caUs for use of a land-based ratio in determining annually the size of the Federal pay ment. This formula is related gen erally to the extent of tax-free land holdings in the District in relation to the total land area, with some exceptions. If in effect now. the Federal pay ment would amount to more than *11,000,000. This bill has been referred to the Senate District Committee, but it was realized there would not be suf ficient time for hearings and action at this session of Congress. There fore the Senate adopted the O'Ma honey proposal and supported the *4.000,000 increase in the Federal payment. Hope for Early Action. On the question of this legisla tion. the Commissioners have for warded to the Budget Bureau their strong approval of the OMa honey-Overton bill. They are hope ful of early action, they said, be cause of questions over legislation on an appropriation bill. Representative Dirksen, Republi can, of Illinois, a high ranking mem ber of the House Appropriations Committee, is expected to lend his influence in the House tomorrow for action of the compromise $8,000, 000 Federal payment. He told reporters yesterday prior to the session of the conferees that he thought an $8,000,000 compromise was the way out of the impasse. Representative O’Neal, one of the House managers, was not able to attend the conference because he was attending a conference on another appropriation bill held at the same time. He declined to sign the District conference report after being told of the compromise agree ment. Senate Plan Rejected. The House Thursday rejected by a roll call vote of 209 to 112 a motion to accept the Senate's $10,000,000 proposal. Yesterday’s House roll call of 194 to 98 was on a motion to insist on the $6,000,000 lump sum as negotiations were resumed. This roll call, it was explained, was taken at the suggestion of Chairman Cannon of the House Appropriations Committee and of Representative Tabor, Republican, of New York, its ranking minority member, for the purpose of strengthening the hand of the House conferees. They encountered, however, a de termined stand by Senate managers of the bill and, it was reported, the fact the District now is facing a deficit in the new fiscal year of more than $2,000,000 helped to swing the compromise agreement. •Tt is up to the House,” said Sen ator O’Mahoney as the group broke up. Have it done NOW— EXPERT ADVICE—FREE ESTIMATES FURNISHED CHEERFULLY. CONVENIENT TERMS ARRANGED. Neat Painting Paperhanging Expert Cleaning •t WALL PAPER and PAINT < Bowles Bid Expected ' For Senate Nomination In Connecticut Race By Gould Lincoln Chester Bowles will make a bid for the Democratic nomination for Senator in Connecticut, it was predicted last night in circles close to the retiring stabilization director. Mr. Bowles, when asked at a press conference yesterday whether be was falling in line with the hope expressed by President Truman that be would remain in public life and whether he would become a candi date for the Senate, replied: "That’s very much of an ‘if’ question.” He would not reveal his future plans except to say that he was going to Maine for a vacation and would return about August 1. Leaders Send Invitations. It is known, however, that he has been Invited to attend a meeting of Democratic leaders in Norwalk Conn., early in August and is ex pected to be present. Nominations for Governor and Senator are made in party conven tion in Connecticut—and both the1 Democratic and Republican State conventions will be held soon after Labor Day. Presumably an effort will be made at the Norwalk con ference to arrive at a decision on candidates. It has been intimated that Mr. Bowles might like to try for the gubernatorial nomination. That, however, would be seriously resisted by Senator McMahon, Democrat, of Connecticut, who heads a strong party organization in the State. Senator McMahon would not fight a senatorial nomination for the former director of OP A, it is said, provided other party leaders were agreeable to it. Backed By Maloney Group. Mr. Bowles’ political friends in Connecticut are for the most found among the old organization of the late Senator Maloney—an organiza tion which has ceased to be power ful. If he became governor, how ever, he might easily place the former followers of the late Sena tor Maloney in key positions and build a Democratic organization of his owti which might successfully challenge the McMahon organiza tion. The McMahon organization is at present Inclined to back Lt. Gov. Wilbert Snow for governor. In a state convention composed of some 1,200 delegates, Mr. Bowles could not command more than 100 votes for the gubernatorial nomination, it was predicted. What happens In the OPA situa tion may have a direct bearing on Mr. Bowles political future. If the OPA is retained in a much modified form—or if it dies permanently— and there is no great increase in prices and the general cost of living, Mr. Bowles may fade out of the picture in the next two months. On the other hand, if price control is greatly relaxed or is discontinued entirely and large inflation follows, Mr. Bowles, high priest of price control, may loom large as a political figure. Mrs. Luce May Run. If Mr. Bowles is nominated by the Democrats for the Senate for the seat now held by Senator Hart— who has refused to seek another term—he may find himself opposed by Representative Clare Boothe >uce. Mrs. Luce still is trying to make up her mind whether to get into the race for the Republican Senatorial nomination. She has been urged to run by some of the high ranking Republicans. Up to the present time only Rep resentative Joseph E. Talbot has announced his candidacy for the Republican gubernatorial nomina tion, and former Representative William M. Miller of the First Con gressional District has annoflnced for the senatorial nomination. Gov. Raymond E. Baldwin, Re publican, the strongest and most popular political leader in the State, undoubtedly could have renomina tion or the senatorial nomination this year. He has insisted, however, he would not seek either nomina tion, and so far there is no indica tion he will change his mind. Mr. Bowles was State OPA direc tor before he was called to Washing ton in July, 1943, to become general manager of OPA, when Prentiss Brown was still national director of the price-control organization. He was a New York advertising direc tor and in 1929 helped to found the firm of Benton and Bowles. Seeks Industrial Peace. Mr. Bowles told his press confer ence yesterday that he will urge President Truman to take over his efforts to secure a labor-manage ment peace. Before tendering his resignation from Government service, Mr. Bowles had been endeavoring to se cure a pledge from labor leaders that they would abstain from wage demands In return for firm price controls to keep down the cost of living. Mr. Bowles said that his leaving —his resignation is effective July 10 —means the negotiations he has been conducting with labor leaders probably will have to be put aside for the present. However, he said, he will suggest to the President that he take over the discussions and call a confer mce of labor and management rep-1 ■esentatlves later on. Mr. Bowles disclosed that the proposed agreement he has been llscussing with labor leaders calls! or a bargain by labor that it would tot make demands for wage in :reases for one year beginning July 15, or until such time as the :ost of living went 5 per cent over he Bureau of Labor cost-of-living ndex for June 15. Figure Based on “Good Bill.” The latter figure, Mr. Bowles em phasized, had been based on "our setting a good bill” on price con ;rol from the Congress. The one which Mr. Truman ve toed, had been loaded “with booby ;raps,” Mr. Bowles had said. Prior to the House action in sus ;ainlng Mr. Truman’s veto, Mr. Bowles told reporters that he was :onfldent that the Congress would ixtend price controls in their pres snt form. Smiling and obviously iiy good rumor as a result of the.President’s •ejection of a bill he had vigor >usly opposed, Mr. Bowles said he 'didn’t know for sure” until the last minute what action Mr. Truman was going to take. “It was a very tough decision for the President,” Mr. Bowles declared. ‘It took as much courage as any iction since I have been in Wash ington.” He added that in the light of the President's veto "we now have a chance to fight our r - -■ out from under.” Effects (Continued From First F. i..< continue. The Department of Agri culture is expected quickly to take back the food rationing power it conferred on OPA. This likelihood was reinforced when President Truman last night signed the extended Second War Powers Act. The act provides the authority to continue rationing as well as a host of other priority, allocation and requisitioning con trols. Won’t Help Price Control. That will not help to salvage even a vestige of price control, for the measure contain* a proviso that none of the extraordinary powers therein may be used to limit prices. That was Congress' way of insuring that no other agency steps into OPA's shoes. Government fixing of ceiling prices and rentals on newly con structed homes will continue, since this is authorized by the Emergency Housing Act. But housing officials predicted they would have to be higher ceilings than those now in force. Some said new-homes prices would go "sky-high”' because of uncon trolled building material prices. Housing Administrator Wilson Wy att had predicted a 10 to 25 per cent increase even under the OPA bill that was vetoed. Slaughter controls;* by which the Government seeks to curb the black market in meat, also probably will be salvaged by turning the whole show over to the Agriculture De partment. Agriculture now controls the Fed erally inspected slaughterers. OPA the non-Federally inspected ones. Top Officials Map Flans. In half a dozen agencies yester day afternoon, knots of top officials gathered to puzzle out strategy and lay plans for perhaps sweeping re adjustments. The biggest gather ing, of course, was at OPA. "This certainly does upset the apple cart,” said John D. Small, Civilian Production Administrator, who called key CPA officials into a similar huddle. The death of price control, he said, will weaken the Government’s allocation system, by which materi als are steered into essential fields | of production. The power to set aside materials for essential industries remains, he explained, but if the essential indus try is unable to pay as much as a luxury industry, it cannot buy the materials so set aside and the allo cation breaks down. AFL President William Green. CIO leaders, and a veterans organi zation — the American Veterans Committee—expressed fear of infla tion as the result of OPA's end. "If the veto stands, this country is faced with the most serious situ ation which has developed since the war,” Mr. Green said. “There will be labor unrest and labor trouble all over th^ nation and unrestrained inflation.” CIO Leaders See Havoc. CIO President Philip Murray was not reached immediately for com ment, but leaders of several large CIO unions foresaw disastrous ef fects. The*AVC said it had fought for strong price control because infla tion “is the biggest veterans prob lem,” and added that “Congress men must now' show w’here they stand—with the people or with the special interest lobbies.” C. Y. Hayward, president of the Utah Retail Grocers Association, said, "We believe that prices will WATCHES For Father & Mother's Vacation Brother & Sister's Graduation Look and Son Like New—Guaranteed *12 » *35 Edwin Golden Kresge Bldg. 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As far as meat is concerned, the entire coun try will be better off.’* Carl F. Diet?;, president of the Manufacturers’ Association, of Syra cuse, N. Y., declared that elimina- ■ tion of controls would mean "the long-Rage betterment of every in dividual.” Walter Morrow, president of the American Retail Federation, said the situation is a challenge to busi ness to get ample production quick ly at reasonable prices. "Sudden termination of price controls is dangerous to business,” Mr. Morrow said. “The challenge implicit in the veto can and must be met. Merchants never asked for anything so abrupt. They had hoped for orderly decontrol.” He made the following recom mendation to dealers: 1. Keep prices where they are on goods now in stock. 2. As new goods come in at higher cost, mark them at the low est prices that will yield a reason able profit. 3. Make goods available to all consumers. Complaints Bring Action Against 10 Taxi Drivers The Public Utilities Commission yesterday made public the names of 10 taxicab drivers against whom the Board of Revocation and Review of Character licenses has taken action for violations of taxicab regulations during April and May. Acting on complaints of citizens, the board took action against the following drivers for the following offenses: W. T. Diggs, Independent, for overcharge, a warning; James A. Dorrah, Capitol, refusal to trans port to destination, a warning; • James G. Young, Diamond, refusal to transport. 10 days suspension of ;license; William H. Reedy. Arrow, overcharge, 10-days’ suspension of license. Charles W. 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