Evening star., 1937-11-26
WASHINGTON OBSERVATIONS
BY FREDERIC WILLIAM VILE.

Valuable as is the proposed $780, ,000,-
900 1889 Consolidated Edison-Niagara
Hudson expansion program from the
purely ump-priming standpoint, its
overshadowing Importance lies in its mo-
raj effect on dropping business. In that
respect, the pipe of peace which Presi-
dent Roosevelt and the utilities have just
smoked is worth immeasurably more than
the mere hundreds of millions of pro-
jected power expenditure. What F. D. R.
said in his first inaugural on March 4,
1933-that "the only thing the country
has to fear is fear"-never applied more
aptly to the national situation than at
this panic stricken hour. Hardly a
financer or economist believes there's
anything basically wrong except Nation
wide lack of confidence. In agreeing.
therefore, upon a dollar distributing
scheme that will graphically reflect trust
in Americas industrial future, the Presi-
dent and the power baronS have struck
at the very root of the evil that is giving
Uncle Sam and all his children the worst
case of jtters they've suffered since the
Great Blight of 1929. Unquestionably,
the administration expects business gen.
orally to stiffen its upper lip, straighten
it's backbone, and follow the example of
the producers of electric juice, in drag
ging boarded development funds out of
hiding and putting them to work.
Business particularly welcomes the in
dication that dangers of Government
competition in the utility field are to be
materially lessened. Magnate Carlisle
placed emphasis on that, after leaving
the White House, wreathed in smiles,
on Wednesday. If this rosy prospect Is
borne out, it should sound taps for
those starry-eyed New Dealers who re-
ceive credit for goading Mr.. Roosevelt
down the path of State socialism toward
Government ownership or operation, or
both, of power. The present regional
planning BILL looking to creation Of
seven T. V. A. set-ups, exemplifies the
power dreamers' pet idea of plastering
the United States with national utility
projects. The original T. V. A. concep-
ton of making two bulbs of electricity
glow where only one glew before" has
been an enduring nightmare to the
power industry. It's leaders saw the even-
tual doom of private enterprise in the
New Deals threatened purpose to stick
a Federal finger in every hydroelectric
pie in the land. Fears that p. w. A.
or w. p A. funds would be made avail
able for city, county or State power
plants, in order to bring down rates, were
another primary cause of anxiety to the
Carlisles, the Wilkes and the millions of
utility shareholders to whom they are
managerially responsible.
4 X
Efforts to compel immediate tax relief
acknowledging capital gains and un-
distributed profts-are likely to side
track the drive for crop control and
wages and hours legislation. Big-shot
Democratic Senate leaders like Harri-
son of Mississippi and Byrnes Of South
Carolina are leading the demand that
President Roosevelt abandon his next
session" plan and, in the language of
his freside chat last March, act "Now!"
Congressional opponents of delay believe
that definite and binding White House
tax revision assurances, coupled with
utility developments, would give busi-
ness tremendous boost. That hope
finds fervent echo from the retail trade
which sees signs of disastrous slump
in Christmas shopping. Washington is
getting reports of drop in seasonal
sales, ranging from 10 to 30 per cent
below last year, with worse in sight un-