The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1937-11-24
President Assures
Utilities Against
IT, S. Competition
Says Federal POWer
Will Touch Only -
Pct. of Country
BY GEORGE DURNO

4 OC' VI OOGAEtCI
BY GEORGE DURNO
GNSD President R o o seval
moved along two fronts today y
his efforts to reassure industry
and halt the current business de
cline.
First. he was attempting to per
suade private utilities interests *
spend up to $500, 10000 in ex
pansions in conferences with lead
ers of the industry.
Second, the President was draft
ing special message to Congress
proposing revisions of the Federal
housing act which he hopes will
stimulate private investment in
home and apartment building.
HOLDS OUT LURE
The lure Mr.. Roosevelt held out
to private power interests was an
assurance that the New Deal in.
tends to leave between 80 and 90
per cent of the nations area and
population alone so far as COM
petition from Federal power plants
is concerned.
AS an inducement to home
building by individuals, the Presi-
dent disclosed he planned to in
crease the loan values on FILA
insured mortgages from 80 per
cent to 80 per cent. 1t was re-
ported further be would ask Con-
gress to revise the law so private
ly-capitalized national mortgage
associations would spring into
existence, prepared to unloose
several hundred millions of dollars
in the construction field.
Reliable sources said the Chief
Executive was prepared to use
;RFC money to start such an as
ISOLATION if private capital was
reluctant.
EMPLOYMENT AID
From these two points of at
tack, the President is hopeful Of
stimulating the heavy goods
industries and providing much
needed employment in the build
ing trades.
; Mr.. Roosevelt was comforting to-
day with Floyd Carlisle, head Of
the Niagara Hudson Power Com
pany. following UP a long session.
Democratic leaders Of House
and Senate were understood al
ready to have in their possession
proposed amendments to the hous-
ing act as result of conference
last night with Presidential Secre-
tary James Roosevelt, Housing Ad-
ministrator Stewart Mcdonald,
RFC Chairman Jesse Jones and
Federal Reserve Chairman Mar
Tiner S. Eccles. There is talk OF
reViving the modernization and
repair drive by FILA.
The Roosevelt housing message
may be whipped into shape in time
for submission to Congress before
his departure Saturday night for
Florida. If not, it will be sent in
Immediately upon the Presidents
return from a Today rest in Flor
ida waters.
FEAR TO EXPAND
Receiving the press just after
he and Frank R. McNinch, chair
man-on-leave of the Federal Power
Commission, conferred with Will
kie, Mr.. Roosevelt admitted frank
" that Willkie had said private
utilities were reluctant to expand
because of "a general feeling" the
Government was going into large
scale competition with them.
Mr.. Roosevelt felt he had made
progress in his talk with Willkie,
however, by pointing out to him
that on a geographical basis only
Is per cent of the national area
could or would be served by Fed
eral power plants already built,
or in course of construction.
On a population basis. Federal
plants would serve only Is per
cent. leaving the bulk of the bust.
ness to private enterprise. It was
assumed the same field would be
covered today with Carlisle, of Nj
agara-Hudson. Other utilities lead
ers will be invited to the White
House after the Presidents re-
turn from Florida.