Evening star., 1934-11-19
POWER ASKSPACT
WITH ROOSEVELT
President, Meanwhile, Says
Every State to Get
Lower Rates.
By the Associated Press.

By the Associated Press.
Though peace pacts" between Gov
ernment and business are becoming
the vogue, the Roosevelt administra-
tion still shook its big yard stick" at
giant power today.
An official source disclosed that
spokesmen for electric utilities have
been coming-like bankers and other
leading business men-to swap view
points with the administration.
Whether these discussions, described
as touching on general power policies,
got to the point of suggesting another
treaty of cooperation was not dis
closed.
1t was regarded as significant that
President Roosevelt continues to ham,
mer away at his announced purpose of
forcing down rates he considers too
high by developing public power prof.
ects to serve as a ''yardStick.'
Policy to Continue.
Visiting Tupelo, Miss, the first
community to buy power from the
Tennessee Valley Authority, the Pres
ident quoted figures yesterday to show
that rates had been cut and that con-
sumption of power had jumped 1876
per cent. His statement that What
you are doing here is going to be
copied in every State of the Union
before we are through" was an indi-
cation to many observers that he
plans no halt in his "yardstick" policy.
The T. A. v. has its vigorous foes.
1t has been criticized recently by coal
operators, who call it an encroach-
ment on business fields and insist that
coal can produce electricity cheaper
than water power.
Opposition Held Fading.
OF critics, the President had this to
say:
I'VE recognize that there will be
q certain amount of-what shall l
say?-rugged opposition to this devel-
opment, but think we recognize also
that the opposition is fading as the
weeks and months go by, fading in
the light of practical experience"
Meanwhile, the National Association
of Manufacturers, pursuing the line
Of cooperation toward recovery re-
Gently emphasized in meetings here,
issued a summons for congress of
d American industry" in New York De-
cember 5 and g.
Elected officials who invite assist
ance," the call said, ARE entitled to
the full assistance of industry in
working out a sound basis of CO.
operation which will restore economic
stability"
Moley to Speak.
Raymond Moley, presidential ad-
wiser, who has been working to bring
the Government and business closer
together in the recovery effort, will
speak. So will Donald R. Richberg,
chief co-ordinator of emergency
agencies.
The Chamber of Commerce of the
United States and the American Fed
Grafton of Labor are still Tar from
seeing eye-to-eye on the way to induce
recovery. The chamber denounced
the A. F.. of L. plan for a statutory
30-hour week.
1t is the federation's view that
30-hour week would give employment
to millions of jobless. In a report
yesterday, it stressed the need for
more purchasing power.
THE strong wine of business op-
timism may stimulate industry to
action again." it said, "but production
and employment can not go on in
creasing unless a steady increase in
workers buying power creates a grow
ing market for goods"
The A. F. of L. report saw business
in a better position Ito go ahead" than
last year.
Bank deposits have increased at
an unprecedented rate" it said, "and
are now 297 per cent above March,
1888; business men could finance a
major production increase by draw
ing on their accounts, with very
little recourse to loans-an unusually
strong position.
Buying power of workers and
farmers is higher than it was at this
time last year. Debts are being paid
off, bills met more promptly. De-
partment store sales in October were
II per cent above last year. sales of
chain stores 206 per cent higher"