The Waterbury Democrat., 1937-11-15

u0&NNNAAN W faculties and inequities.
 'Modifcations adequate to en- courage productive enterprise, es- pecially for the smaller businesses, must not extend to the point of using the corporate form for the purpose of hiding behind it to re- duce or eliminate taxes in a way not open to an individual or partner ship," he said.
 "Nor," said Mir. Roosevelt, should we extend tax privileges to specula- tive profits on capital where the in- tent of the original risk was Specu- lation rather than the actual devel- opment of productive enterprise.
 Revision of Revenue Laws
 "Nor can we at this time accept a revision of our revenue laws which involves a reduction in the aggre- gate revenues or an increase in the aggregate tax burdens of those least able to bear them."
 MT. Roosevelt cautioned congress and the nation against regarding the business recession as akin to that of 1929.
 with the exercise of ordinary prudence" he said, there is no req son why we should suffer any pro- longed recession, let alone any gen. eral economic paralysis. Despite some maladjustments, which can be corrected, underlying conditions are not unfavorable.
 "The fundamental situation is not to be compared with the far differ ent conditions of 1929. The banking system is not over-extended. Inter- est rates are lower. Inventories are not dangerously large. We are no longer over-extended in new con- Struction or in capital equipment. Speculation requiring liquidation does not over hang our markets"
 MT. Roosevelt warned that if pri- vate enterprise did not take up the slack in unemployment, the govern neut would be forced to intervene.
 "The ultimate answer to the con- ditions of today" he declared, lis a cordial and confident cooperation not only between government and every kind of citizen-but. also be- tween every kind of citizen and his government"
 MT. Roosevelt did not read his message to congress in person. How ever, prior to convocation of the House and Senate at noon, he called his chief legislative lieutenants to the White House and there, in his oval blue and white office in the executive wing of the mansion, read his recommendation to them.
 Covered Four Subjects
 MT. Roosevelt's message covered only four of the five legislative sub- jects mentioned when he summoned Congress to convene in special ses- Sicaa. He submitted no recommenda- tiun for revision of antitrust laws but did point to the need for inquiry into the antitrust situation. He in- dicated that he would present fur thcr recommendations to Congress at various intervals.
 1n asking Congress to enact farm control legislation, MT. Roosevelt re- itWated that if expenditures are au- thorized beyond those provided for in the regular budget, taxes must be levied to meet the added costs. He suggested that the Wagner Labor Act and Social Security decisions of the supreme court gave hope that, de- spite invalidation of the AAA, Con- greSs would enact "an adequate farm act"
 Wages, Hours
 Regarding wages and hours, Mir Roosevelt declared he did not have in mind immediate enactment of uniform minimum wages and hours standards.
 That is the ultimate goal" he said. We should provide flexible machinery which will enable indus tries throughout the country to ad- just themselves progressively to bet ter labor conditions"
 His principal objectives he de- Scribed as elimination of child la- bor, protection of workers against excessively long hours and low wages, and a safeguard against the "unsound practice of some commit mites" which seek to attract new in- dustries solely because labor is cheap CT than in competing communities.
 Reorganization Plan
 He appealed for enactment of his government reorganization program on basis of efficiency. He took issue however, with those who suggested large savings might come from reor- ganization, asserting that such sav- ings could only come through elimi- nation of government functions.
 He declared that his regional plan ming recommendations would decen- tralize and make more efficient the spending of government funds for national resources improvement.
 "What these four subjects promise in continued and increased purchas- ing power-what they promise in greater efficiency in the use of gov- ernment funds-are intelligent foun- dations for the other plans for en- couragement of industrial expansion with government help" said the president. What they promise in so- cial contentment is an almost neces- sary basis for greater security of profits and property.
 Discussed Everywhere
 "In the months they have been before the Congress they have been discussed from one end of the coun- try to the other.
 Tor the sake of the nation, hope for your early action"
 This is the second special session since MT. Roosevelt took office. De- spite his plea for action, the fore- cast in many quarters was for much talk and little achievement this ses- sion.
 Session Opens
 Washington, Nov. 15-(UP)-The 18th Congress convened in special session at 12:01 p. m. today. The house was called to order at noon and the senate quickly followed.
 The first order of business was the reading of the presidential procla- nation summoning congress to meet.