Evening star., 1935-11-24
STRONG BUSINESS ATTACK
BITTER PILL TO NEW DEAL
Nigor of Barrage Against Philosophy
of Government May Wax Greater
Than Opposition to BRYAN.

out a fundamental change in these
relief policies, no material reduction
in expenditures Is possible.
Under q time-honored POLITICAL
axiom, bureaucracy must not be re-
duced on the eve of election. The
civil lists of the Government include
most of the local politicians on whom
Mr.. Roosevelt must count in the COM
ing campaign, and to remove any con-
siderable number of these from the
pay rolls between now and November,
1896, would seriously damage his elec-
ton prospect. Indeed, only this week
employees in obscure Government bu-
reaus we're surprised to receive salary
increases.
Problem Is Inescapable.
Thus the presidential task is the
seemingly impossible one of making
substantial showing of economy, while
still continuing the flow of Treasury
checks to the voters. 1t is because
business is fully cognizant Of this diff
Guilty facing the President that it is
beginning thus early to marshal its
forces for the great budget battle
which it believes will occur in the
1886 campaign.
The announcement of eminent busi-
ness men joining the Republican
finance campaign and the suit Of the
United Gas Improvement Co., chal-
longing the public utilities holding
company act, both developments Of
this week, are rumblings of the ap-
preaching warfare. The significant
thing about them is that only year
ago, facing the Democratic sweep in
the congressional elections, business
men quite generally resigned them
selves to "going along" with the New
Deal. Whereas then it was difficult to
get a business man to take an open
stand against the New Deal, today they
are flocking into the field.
In the judgment of political leaders,
the new spirit of defiance of the Roose-
velt administration began to assert it
self In earnest at the meeting of the
American Bankers Association at New
Orleans. Not only did the bankers
pointedly reject the olive branch held
out to them by the Roosevelt ambas-
sadors-Jesse H. Jones, chairman OF
the Reconstruction Finance Corp, and
Mariner S. Eccles, chairman OF the
Federal Reserve Board-but they also
slapped the President in the face by
defeating z. G. Bennett of Ogden,
Utah, for vice president because Of his
business association with Mr. Eccles.
In contrast with the bankers last
convention, all speakers except the
Federal officials focused their attacks
on what was going on in Washington.
Ford's Refusal Significant.
Fully as important by way of indi-
eating business opposition to the ad-
ministration was publication Of let
ter from Edsel Ford to George L. Ber-
ry, new head of the N. r. A, refusing
to attend an industrial conference
which Mr.. Berry had called for De-
cember
Heretofore regarded as an off-ox in
the automobile industry, the Ford Mo-
tor Co. in this instance followed the
lead of the Automobile Manufacturers
Association, made up of its principal
competitors, and of the big manufac-
turing industries of the country gen.
orally.
Textiles, steel, lumber, leather,
chemicals and automobiles are only
few of the major industrial groups
that have summarily rejected Mr..
Berry's invitation.
Many of the manufacturers, it Is
plain, have determined to resist any
attempt to provide substitute for the
N. r. A., which was nullif1ed by the
Supreme Court last Summer. Alfred
Reeves, vice president Of the Automo-
bile Manufacturers Association, ex-
pressed the general industrial view
when he declared in a letter to Mr..
Berry November 6: ''This industry
does not believe that substitute for
the N. r. A. will help the industry or
its employees, but, on the contrary,
that it will do harm. Progress of the
industry in recovery has been greater
since the code terminated"
Significant of the increasing busi-
ness antagonism toward the admins
tration also is the attitude public util-
ity companies have assumed toward
the Wheeler-Rayburn holding COM
pany control law.
Including Sundays and holidays
there remain only eight days before
the companies are required to register
with the Securities and Exchange
Commission, but that body is entirely
in the dark as to their intentions. Not
a company so far has registered and
the indication Is that they will refuse
to do so collectively, depending on the
Supreme Courts Interpretation of the
conStitutionality Of the act to see
them through in their defiance.
A Baltimore District Court already
has declared the whole act unconsti-