Evening star., 1934-12-15
ROOSEVELT SEEKS
TO EXTEND PEACE
|PACT TO UTILITIES
Reveals Power Men Agree
on Fair Capitalization
and Lower Rates.
president STILL COOL
TO 30-HOUR WORK WEEK
Desires to Retain Collective Bar.
gaining, Minimum Wage and
Child Labor Ban in N. r. A.
BY the Associated Press.

BY the Associated Press.
President Roosevelts plans and
hopes for 1885 began to unfold in
more detail today, topped by a dis
closure that talks are in progress
which, if successful, would extend the
celebrated Government business peace
pact" to much of the vast power in
dustry.
Though only two weeks ago a plan
of power interests to fight the Ten
nessee Valley Authority and its public
''yardstick" was in the headlines, the
White House disclosed that certain
leaders of the industry have been con-
ferring with the President recently.
The President said yesterday that
officers of private power companies
had expressed agreement that any
water found in capital structure should
be squeezed out and rates reduced
accordingly to yield a reasonable re-
turn on what was found to be fair
capitalization.
Power Men Silent.
He did not name these officers, and
no statement was forthcoming i'm
mediately from any power men.
Floyd Carlisle, chairman of the
Niagara & Hudson Co., is the latest Of
a series of power men to visit the
White House. He talked with Mr..
Roosevelt yesterday. 1t was also dis
closed that the President talked the
day before with Wendell Wilkie, presi-
dent of the Commonwealth & South
ern, and Preston Arkwright, president
Of the Georgia Power Co. Mr.. Roose-
welt said these three were working
with him on friendly terms.
In his remarks on power Mr.. Roose-
welt appeared to favor the prudent
investment" policy of determining
proper capitalization rather than the
reproductive cost" or other methods.
T. v. A. has been attacked by power
men, coal producers and other op-
ponents as unconstitutional and an
unwarranted encroachment on the
field of private enterprise. The White
House has taken the stand that the
T. V. A. experiment will proceed, with
the Government welcoming cooper
alton OF private companies where 1t
is found acceptable.
Roosevelt Discusses N. r.. A.
Only yesterday T. v. A. advised three
cities in Alabama to start building
their own electric distribution systems.
1t said legal Constructions" threatened
indefinite delay Of a plan to purchase
private distribution facilities and de-
clared the Alabama Power Co. was "as-
sisting in the effort to have T. v. AS
powers declared invalid"
President Roosevelt also had some
thing to say about his ideas for the
new N. r. A. After President William
Green of the American Federation of
Labor had carried to him recommenda-
tions that the Government decline to
relinquish its supervision over dealings
between employers and employees, Mr..
Roosevelt stressed that the intention Is
to retain:
l. The principles of collective bar
gaining.
2. Minimum wage provisions.
8. The prohibition against child
labor.
Though Green made clear the fed
GRAFTON would press its fight for statu-
tory 30-hour week, there was no pro-
nouncement on this from the White
House. High administration leaders
have been cool to it.
Labor Wants IA Retained.
There has been some talk in labor
circles that the collective bargaining
clause of N. R. A. should be clarified
and strengthened, but the A. F. of L.
program outlined yesterday proposed
that section IA be retained as is.
High union leaders express satisfac-
ton with the National Labor Rela-
tions Boards interpretations of this
clause Some of these rulings have
reused wide opposition among indus
trialists.
New indications that the President
is hoping the housing drive will do
much to hasten recovery were seen In
letters he sent to the 48 Governors
The letters proposed legislation de-
signed to allow the public to make
greater use Of the program. James
A. Moffett, housing administrator
| said many States restrict loans on
mortgages to so per cent of the value
He believes that, under Federal in
surance, as much as 80 per cent is
proper.
Meanwhile the plans for unemploy.
| ment insurance came again to the
fore when Secretary Perkins, in q
radio speech, urged the States to lose
no time in framing their own legis-
lative programs to get in step with
the Federal Governments.