Evening star., 1937-12-22
PRESIDENT T0ASK
MORE CONF F|DENCE
Aggressive Bid Due to Be
Made in Next Message
to Congress.
BlCKGPOTND-

BACKGROUND
Sharp decline of business indices
since late last summer has be-
come major political issue as Co..
ernment, industry and labor each
try to auoid responsibility. At one
time, administration appeared
ready to adopt neW attitude of
conciliation toward business as
White House conferences Were held
ioith business leaders. In past tew
iDeeks, hotDeDer, extreme liberals
haze ererted considerable pressure
in other direction.
BY the Associated Press.
Administration advisers said today
President Roosevelt would make an
aggressive bid for public confidence
in his January message to Congress,
based on the contention the business
recession is largely psychological.
They said the President would insist
on his legislative program, but would
propose no new reforms" The mes
sage, they forecast, would contain a
broad offer of cooperation with legiti-
mate business, but no retreat from
present regulations.
The Chief Executive laid the ground
work for this approach in his press
conference yesterday by asserting that
psychology of fear was being fos-
tered by a large percentage of news
papers and small minority of public
utilities.
His accusation followed q secret
conference with seven Of his most loyal
supporters in Senate liberal ranks. in
which he was authoritatively reported
to have pledged no slackening of New
Deal activities.
Stands Firm on Power.
While Mr.. Roosevelt was resuming
his conferences with utility execu-
tives, word spread that he had told
his liberal confldantes he was stand
ing firm for the Administrations power
and utility policies. and contemplated
new efforts to obtain wage-hour legis-
latlon.
The list of those invited to the
secret parley was regarded by observ-
ers as significant 1t included Sen
ators Norris, independent of Nebras-
ka; La Toilette, Progressive. of Wis
consin; Schwellenbach, Democrat, of
Washington; Minton. Democrat, of
Indiana; Pepper, Democrat, Of Fqori-
da; Brown, Democrat, of New Hamp-
shire, and Green, Democrat, of Rhode
Island
Friends said the Chief Executive was
gathering data to show the business
slump was psychological rather than
fundamental This view had been ex-
pressed by several of the Senators with
whom he conferred.
This theme also was partially ex-
pounded in the Presidents press con-
ference yesterday. He approached the
subject by telling of his conference
earlier in the day with Frank r.
Phillips, president of the Duquesne
Light Co. Of Pittsburgh, and William
H. Taylor. President Of the Philadel-
phia Electric Co.
They had agreed. he said, that the
Federal Government had not inter-
fered with their industry in Philadel-
phia or Pittsburgh, but that fear was
making 1t difficult for them to get
money for needed expansions.
This faor
been caused by small minority of
industry. which sought to give the i'm
preston the Government was attack
Ing all utilities. He made a distinction
here between holding companies, which
have been the subject of legislative
restrictions and operating companies
Mr.. Roosevelt then told reporters,
crowded about his desk. Of a Philadel-
phia manufacturer who he said had
recently called on him and expressed
approval Of legislation regulating hours
and wages.
The President said he asked if the
manufacturer would tell the country
over the radio of his views.
oh, no." he quoted the industrial
lst MY directors would not let me
HIS caller, the President added,
explained his fear was not of the Gov
ernment. but of his associates.
The Chief Executive said he had a
similar experience a few days later
with q New England tool manufac-
turer. whose product is sold largely in
rural areas, and who said he favored
crop stabilization legislation.
Ine attitude of hesitancy, the Presi-
dent commented, was fostered by a
large percentage Of the newspapers.
Asked what the newspapers had to
gain by creation Of fear, the President
replied he had been wondering about
mat and so had most of the country.