The Washington times., 1937-11-11
Rail and Housing
Conference Is
Proposed
Bx GEORGE DURNO

MISUNDERSTANDING uC1l1lIS eS-
cape from the prospect Of another
year of printing the industrial
pump with Federal money, Presi.
dent Roosevelt today turned to
private capital for aid in the job
of reviving the heavy industries.
New Dealers were heartened by
results of the first conference of
big business men Mr.. Roosevelt
called to propose a nation wide,
privately financed housing pro-
gram that would produce a large
volume of building next year.
PLANS GUARDED
The White House kept future
plans of the President under
cover but it was believed the ses.
sion he had with Gerard Swope,
of General Electric; Robert E.
Wood, of Sears, Roebuck; Sloan
Colt, of the Bankers Trust of New
York; Henry C. Turner, of the Tur.
ner Construction Company, New
York, and Edward F.. McGrady,
of RCA, would be followed by
others with leaders in other fields.
Secretary of the Treasury Nor.
genthau sounded the Administra-
ton keynote in New York last
night when he urged a slackening
of "pump-priming" and suggested
broadening the income tax base
The Administration, he said,
was making a determined move
ment toward a balanced budget"
Morgenthau inferred that public
works, relief and Federal high
way expenditures would be cur
tailed next year and the farm
program placed on a pay-aS -it-goes
basis.
EYE ON UTILITIES
The Treasury Secretary does not
represent the views of all his fellow
officials in the New Deal on this
score. Many of the Roosevelt
aides are arguing that public
works will have to be started up
again next year-even' though it
would wash out the last vestige
of hope Of balancing the budget.
It was hardly likely, however,
that Morgenthau's speech was de.
livered last night without 1.-THE
boss'S" o. K.
In addition to his attempt to
stimulate home building, large and
small, for sale and for rent, the
President has his eye on the rail
roads and the utilities as prospec,
tive Spenders in the heavy-goods
market.
MAY CALL OTHERS
Already, he has made a gesture
OF sorts to the utilities, promising
them freedom from Government
competition provided they capital.
ize and evaluate properly and set
fair rate to the electricity con-
1t was possible Mr.. Roosevelt
would call in heads of the big rail.
roads to suggest that they under.
take needed expansions and re.
placements at once. If they do
not go to the White House, the rail-
road presidents undoubtedly will
hear the suggestion from Jesse Il,
Jones. chairman of RFC, who is in
position to help them finance their
construction work with loans.
ECCLES TALKS
Mariner S. Eccles, chairman of
the Federal Reserve Board, did
all OF the talking for the group
that debated housing drive with
the President. He said:
This group of men was
brought in to discuss a housing
program that would involve the
use entirely of private capt.
tai. 1t is our hope to be able
TO develop a program that will
De national in scope. I am not
tails"
Meanwhile, Mr.. Roosevelt work.
ed on the message he will deliver
to the special session of Congress
which opens Monday. 1t is certain
to be revealing in it's comments
on the business and industrial
situation and what the Admins.
tration hopes to do to start an
upSwing.