The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-12-15
PEACE PACT With
POWER INTERESTS
Seen FROM TALKS
Favors Prudent Investment
Policy to Determine Prop.
er Capitalization
IVA PROGRAM TO PROCEED
New NRA to Retain Collective
Bargaining, Minimum Wage,
Child Labor Bar

Washington. Dec. 15.-R-Presi-
dent Roosevelt,s plans and hopes for
1895 began to unfold in more detail
Saturday, topped by a disclosure that
talks are in progress which, il sue
cessful, would extend the celebrated
government business peace pact" to
much Of the vast power industry.
Though only two weeks ago, a plan
Of power interests to fight the Ten
nessee Valley authority and its pub
lie "yardstick" was in the headlines,
the White House disclosed that GER
tain leaders of the industry have been
comforting with the president recent
ly.
The president said Friday that Of
ficers Of private power companies had
expressed agreement that any water
found In capital structure should be
squeezed out and rates reduced ac-
cordingly to yield reasonable return
on what was found to be fair capitah-
xation.
Peace Move Seen
He did not name these officers
and no statement was Forthcoming
Immediately from any power men. The
Washington Post interpreted it as a
peace move on their part. The paper
said word had reached it that the
Edison Electric Institute, an associa-
ton Of utilities, has now no intention
Of filing its proposed suit to test the
constitutionality Of the IVA.
In his remarks on power, Mr.. RooSe-
welt appeared to favor the prudent in
vestment" policy OF determining
proper capitalization. rather than the
reproduction cost" or other methods.
IVA 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
IVA experiment will proceed, with
the government welcoming coopera-
ton Of private companies where 1t was
found acceptable.
Only Friday, iva advised three cit
les in Alabama to start building their
own electric distribution systems.
Ideas For New NRA
President Roosevelt also had some
thing to say about his ideas for the
new NRA. After President william
Green Of the American Federation of
Labor had carried to him recommen-
dations that the government decline
to relinQuish its supervision over
dealings between employers and en-
ployes, MIR. Roosevelt stressed that the
intention Is to retain:
/. The principles Of collective bar
gaining.
z. Minimum wage provisions.
3. The prohibition against child
labor.
Though Green made clear the feder-
alton would press its fight for stat
utory 30-hour week, there was no pro-
nouncement on this from the White
House. High administration leaders
have been cool to it.
New indications that the president
Is hoping the housing drive will do
much to hasten recovery were seen III
letters he sent to the 48 governors.
The letters proposed legislation de-
signed to allow the public to make
greater use Of the program.
Meanwhile the plans for unemploy-
ment insurance came again to the
fore when Secretary Perkins, IN
radio speech, urged the states to lose
no time in framing their own legisla-
tive programs to get in step with the
federal governments.