Evening star., 1933-04-12
PLAN
AROUSES CURIOSITY
Presidents New Proposal
Viewed With Most Inter-
est in "NeW Deal"
BY DAVID LAWRENCE.

OF all the suggestions and proposals
that have been made under the all
embracing and refreshing philosophy
OF the new deal" none has occa-
stoned here more genuine curiosity and
interest than the latest design for gov
ermental operation, which shall consist,
as President Roosevelt describes it. Of
q corporation OF three clothed with
the power Of government. but possessed
Of the nexibility and initiative of a
private corporation"
Government Hopes Stated.
Mr.. Roosevelt has stated the ideal in
governmental hopes and aspirations.
For years there have been academic
treatises on the rights and power and
authority Of the Government to conduct
various business operations, but Con-
gress has always insisted upon putting
all such projects in the Strait-jacket
and preventing the executives OF the
boards or commissions or corporations
in question from exercising ordinary
business discretion.
Even In the proposed bill to operate
Muscle Shoals, the measure limits the
salary of the chairman or president Of
the Tennessee Valley authority-the
corporation which is to possess all the
advantages of private initiative-to
$4,000 year and the other two men,
bers are to be limited to $4,000 year.
There are doubtless men in the
United States who can manage invest
ments and manufacturing enterprises
involving hundreds of millions of dol
lars and be content with a salary of
$4,000 a year, but usually they are
men who have made their fortunes in
private finance or industry and look
upon Government service as hobby
for the latter days of life.
High Salary Once Paid.
The Government at times has paid as
much as $25, ZOO a year in salaries, but
invariably Congress has become critical
of such expenditures. The result is
that often men who cannot command
higher pay elsewhere seek the executive
positions at $4,000 year or else young,
ambitious individuals who regard the
Government service as a stepping stone
to commercial life seek the posts in the
hope of experimenting with Government
property authority and getting their
training at Government expense.
Judged by the far-reaching plan just
announced by the President, the Ten
nessee Valley authority is going into the
business Of manufacturing fertilizer for
the farmer and nitrogen for explosives
and Is to build transmission lines for
the sale Of power to communities and Is
generally to carry on q vast operation at
low cost. These operations are to be
financed through the sale of securities
payable out of receipts and surpluses.
1t remains to be seen what private
investors will think Of such bonds when
the management Is to be deprived at
the outset OF the right to do what
private initiative and enterprising
usually do, namely, bargain freely for
the best talent available in the engi-
neering or business world. If such
bonds have to be guaranteed by the
Government, irrespective of the oper-
ating efficiency Of the corporation, 1t
will mean conclusively that the in
vestor has no faith In political or gov
ernmental management.
Political Freedom UnreveaIed.
The administration's proposal does
not reveal how new kind Of corpora
ton free from politics and congressional
influence, Is to be created or how the
initiative that private industry and
business enjoy in rewarding those who
have the incentive Is to be implanted.
While the bill is sure to be opposed
and will be the occasion Of party
division, the Roosevelt drive will be be-
hind the measure and it Is foregone
conclusion it will be passed in some
form, in fact it seems likely the pro-
posal may become the forerunner Of
regulation by the Federal Government
Of interstate transmission Of power The
courts have indicated clearly that this
is within the power Of Congress to
supervise.
Copyright. 1933)