The Waterbury Democrat., 1937-11-27
FEDERATION OF
 LABOR PROGRAM
Will Help Halt Business
 Recession Plan Like That of President
Ry Q, L sULZnER0ER

By c. L. SULZnER0ER
 (Unlted Press Stan C0rrespOndenO
 Washington, Nov. N.-(Up)--ThO American Federation of Labor pro- posed to the administration today Q six point program intended to halt the business recession by strength Onlng mass purchasing power.
 The proposal closely parallels Sug- gestions made by President Rooses welt to restore the nations economic equilibrium. It seeks harmony he. tween capital mad labor and their cooperation with proposed federal stimuli to industry,
 Helping Business
 Mir, Roosevelt lS AccelerAtlng ef- forts to aid business, He will send to congress Monday Q message out lining ways of stimulating tho leg. glng construction industry and al. leviating Q shortage of homes.
 He hos ordered lieutenAntS to continue efforts toward an accord with private utilities and free Q backlog of capital estimated at e2,. 600 0000,000. Ho has directed federal agencies to place orders for neees- sary materials as soon as possible to give industry S240,o00,000 shot in the arm through governmental
 The president said yesterday that he would Do glad to see congress revise taxes AS soon aS legislatorH desire and worked toward Q bAl- Aneed budget by suggesting c rec duct!on of federal highway expenses by approximately Sl2o,00o,000. A message to congress suggesting methods of accomplishing this will be dispatched Tuesday.
 Proposed Labor Plan
 The A, 2, of l.. program suggested
 1. Maintenance of wages and ems ployment Att he highest possible level with firm determination to avoid wage cuts. N
 3. Raising of wages in any induS- try where sustained demand and profitable operations make it posSt. blo.
 8. Stimulation of production and employment in heavy industries by encouraging plans for plant expan- sion and equipment purchases; on. couragement of building in oil elasifioatlons. Tho federation rec. commended "speoial measures tc make credit available to business.
 {. Improvement of laborS buy. Ing power by prompt payment oi unemployment compensation when it begins in a states next January
 b. Action on "measures to pro- mote business confidence"
 c, Improvement Of employer.efll- ment recognition of unions and union cooperation ito cut costs by improving efficiency"
 Most Extensive Program
 The federAtionS plan to aid in. dustrlal recovery was the most ex- tonslVo to date to originate ili labor circles, John L.. Lewis, chairman of tho Committee Tor Industrial Or. ganigation, in Q copyrighted inter- view with tho publisher of the Washington Herald yesterday, said that ho favored Q broad scale hollS' Ing program to Do financed witt social security reserves.
 The proposed program of the A Y, of l., was announced coincidontlS with Q report from Secretary oi Labor Frances Perkins that coa' struction activity had dumped fur' ther In October.
 The A. T. of l., was optimistic about tho general long"range out' look. It described tho present busi' nONs Set-back as temporary. "Thia falls unexpected recession in bu9i- ness activity" the federation said follows the longest production rise since 1920 ..
 1 Only Temporary Check
 "The present decline appears to Dc a temporary check jn our pre- g.ess toward larger production yol- tunes and higher standards Of living, WhIlo business waits for accumulate cd supplies to Do bought of.
 "Whother it will Do Of long dura . ton depends to a very important dogroo on our ability to maintain buying power cloge to It's present levels, 50 that inventories of cloth. Ing and household supplies may DC quickly consumed and c strong mar. ket provided for durable consumer goods such as homes and sutomo' bileg."
 Thc analysis classified consumer buying power Into three groups which 1t estimated would have the following values for 1887: CD Waged and saiarios--e47, ,00O, ,000, 900; O. fnyeStogs income-Sii 1 ,0o0, 900, 900 (3)--ProAW of businessmen and farmers-Si2, ,00o, 900 900.
 Farmers May Help
 "In the next six months" t Baid i've need expect little change iil thf total amounts paid out for divid.. ends, interest and rent; profits oi businessmen may decline tempofar' iiy, but this years increase in farin' ers' income will help to compeiisat te for farmers will spend their lDS7 income in the months just ahead.
 "The volume Of wage and salary payments will be of more, influence than any other factor in maintain ing the market for consumers goods I