Evening star., 1937-12-04
By the Associated Press.


By the Associated Press.
A secret gathering of 10 Senators
at which Lewis Douglas. former
budget director, outlined a business
recovery program stirred speculation
in the Capital today.
Mr.. Douglas, now an officer in the
American Cyanimid Co., left his Fed
eral post in 1884 because he disagreed
with Roosevelt spending policies.
Since then he has been an out
spoken critic of the administration,
and last year supported ALI M. Lam
don for President on the ground that
the New Deal could result only in
the impoverishment of the people"
The Senators present at yesterdays
meeting-eight Democrats and two
Republicans-frequently have opposed
administration measures.
None Of them would discuss the
conference in detail, but some indi-
Gated Mr.. Douglas had proposed early
tax revision, budget balancing and
foreign trade expansion as among the
essentials for restoring confidence to
industry.
Invited by Byrd.
The group met at the invitation of
Senator Byrd, Democrat. of Virginia.
Others present were Senators Glass,
Democrat. Of Virginia; King. Demo-
crat, of Utah: George, Democrat, of
Georgia: Smith, Democrat, of South
Carolina: Bailey, Democrat, of North
Carolina; Van Nuys. Democrat, of
Indiana: Copeland, Democrat, of New
York; Townsend, Democrat, OF Della
ware, and vandenberg, Republican, of
Michigan.
Their conference took place while
congressional committees were study
ing two tonics prepared by President
Roosevelt for business ills.
Generally well received on Capitol
Hill was Mr.. Roosevelt's message rec
ommending Federal financial mecha-
nism to encourage potential billions
Of private spending in housing con-
struction.
Widespread opposition was heard.
however, to his proposal that Federal
contributions to State road building be
cut IN the interest Of approa ching a
balanced budget.
Also interrupted by the Presidents
tooth infection and Southern trip were
his conferences with utility leaders,
seeking to bring a reconciliation of
administration and power industry
policies which might promote larger
expenditures on capital goods.
Three weeks OF the special session
left proposals especially linked with
the business situation in this status:
Housing - Administration leaders
forecast congressional action before
Christmas on Mr.. Roosevelt's request
to liberalize Federal mortgage insur-
ance and other legislation to encourage
private construction.
Tax Revision-Pressurec continued at
the Capitol for immediate modifica-
ton Of the undistributed corporate
profits and capital gains taxes. But
q House Ways and Means Subcom-
mittee. surveying the whole tax struc-
ture, did not expect to have bill ready
before January.
Budget-balancing-Mr. Rooseyelt's
message asking = slash in road con-
tr1outions now exceeding 5000, ,000.-
600 annually spoke OF "the necessity"
OF taking steps to balance the budget.
Cut in Spending Indicated,
Secretary Morgenthau, who had
designated highways, public works. un-
employment relief and agriculture as
territory in which "a great saving"
could be made, indicated there would
be no immediate bulge in Federal
spending Of pump printing" nature
BY conf1ning the Treasury's December
financing to refunding and tax an
ticipation borrowing. Chairman Jesse
Jones OF the Reconstruction Finance
Corp. told New York audience that
the budget probably can be" balanced
next year If We can get business
started again and people back to work
49, but not otherwise"
President Roosevelt, in addition to
--'' SAASA cnSSc, pnO~CICu III MS
housing message "a series Of confer
ences with representatives of industry,
labor and finance, with = view to give
housing construction q fresh start in
the coming building year"
He telegraphed the Commerce De-
partment's Business Advisory Council
meeting in Chicago that he looked
forward to an early meeting 80 we
may have the opportunity of talking
over the problems that affect us 80
vitality"
Also vying for attention among
capital business developu. ,pts was the
plea OF railroads for half -billion-dol
lar freight rate increase; prices fixed
by the Coal Commission for the $ll,-
0o0, 900 900 soft coal industry, and
the Governments antitrust suit
q inef uAefArn Yy~iop