, 1935-06-14
WASHINGTON
Nv Raw er

Dg nay AuChcf
Charters - Practical New Dealers
think they have discovered a sub
stitute for NRA. They are keeping
quiet about II until ready TO spring
Il. But several subtle moves show
how the wind blows.
They are trying their hands at a
federal Incorporation bill" Sena-
tor OMahoney Of Wyoming - a
close friend of Jim Farley - has
already proposed such a measure.
But the new ideas 90 farther than
his. Unoer the New Dealers plan
corporations would organize and
function under a federal instead Of
a state charter. Then they would
become amenable To federal control.
We would have social planning and
regulation in a big and legal way.
Ironically. the authority on this
subject was an Assistant Attorney
General under Herbert Hoover. He
got nowhere with the suggestion
several years ago. Now he has
turned 1t over to FDR.
FavOriteS - Uncle Sam would not
swing a big stick" under this plan.
There would be no compulsory fea-
lures for the Supreme Court to
knock out. The federal government
would become a big brother" to in
dustry and business. Mr.. Roose-
welt has long felt that breakdown"
methods are more sensational than
successful.
Federal incorporation will be
made inviting and attractive. Cor
porations "a chartered would be
given federal aid and comfort with
held from rival bodies. Their in
come tax reports. for instance. would
be simplified. They would be Civ
en- the benefit Of discoveries made
by the governments vast laborato-
ries and research groups. notably
the Bureau Of Standards.
1t Is the same scheme which Gov
ernor Eccles is seeking TO apply TO
banks. Those which sign up be-
come federal favorites. Those which
don't. II the idea works out. will be
branded as deliberate chislerS."
lands - Members OF the Securi-
ties Commission do their real work
away from Washington. Expert
s~ubordinates pass upon proposed IS
sues, regulative suggestions. etc. The
big boys busy themselves making
friends with bankers and brokers.
MeSSrs. Kennedy and Lands rare
" miss a financial convention.
Sometimes they make speeches eX-
planning their aims and the two
acts provisions. But that Is the
least important part Of their job.
What they try to do Is to serve as
good will ambassadors" They
mix with the boys. They play po-
ker and swap gusty stories all night
long. They work hard to remove
the impression that commission
members have cloven hooves and
tails.
Mr.. Kennedy's entertainment pro-
ciivltieS are famous. People like
him. including the bankers. But
the thin and seemingly Saturnine
lands l. running him a close sec
ond. A brilliant converSationalist
and Al companion. he is making
all kinds Of regulations for himself.
He's the man to bet on when and
II MI. Kennedy quits the chairman
ship.
Fees - Except for a few pets
ex-Gov. O. NJ. Gardner. and Arthur
Mullen - Washington lawyers have
soured on the New Deal. They re-
sent suggestions by Secretaries
Ickes. Wallace and Morgenthau that
every lawyer who enters a govern
ment building is a lobbyist. II gives
the profession a bad name. they
say.
Now they have put Secretary Hull
have informed several foreign coun-
tries that they do not need legal
representation in negotiating pre-
liminaries to a reciprocal tariff
agreement. The work has meant
big fees because interested manu-
facturers affected by proposed re-
auctions fight them bitterly. Fore
ign nations countered by hiring
lawyers 10 protect their interests
and 70 advise them on domestic
problems.
The lawyers are grumbling against
the Supreme Court. too. Most OF
them concur in its anti-New Deal
verdicts. But abolition Of a few
more alphabetical agencies will rob
them Of a living. The NRA was a
legal gold mine.
SIicing - The Roosevelt admins
traton seems 10 have a private
grudge against the Melons. Its
most spectacular gesture has been
the suit to recover several million
dollars in taxes. But in many def
and unpublished ways II has moved
against the greatest Secretary Of
the Treasury since Alexander Ham
ilton.'
Its power program Is a direct as
sault on the aluminium industry. Ad-