The Waterbury Democrat., 1937-11-15
President Asks For
 Cooperation OF AM
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 Miller, d., Ark. Vice President John N. Garner Swore him in.
 After the special session call was read in the house roll call was begun.
 More than 300 of the 435 members were in their seats.
 The senate recessed at 12:15 D. m. until 1:30 to notify the president that 1t is in session.
 Garner appointed Barkley and McNary as members of a joint com mittee to notify the president.
 Neither house is prepared to pro- ceed at once with the major legiS- lation dealing with agriculture and labor.
 Future Is BeclOuded
 Division of the New Deal Demo- cratic party assurance of a fat deficit this year and a business re- cession becloud the legislative fu- ture. MT. RooseVelt's leadership was challenged and defeated on vital is- sues last session.
 Congressional tempers are still hot. A conservative bloc of senate Democrats including Senator Pat Harrison, Miss, and Senator Carter Glass, Va, may challenge MT Roosevelt again to seek modiflca- tion of the new deal, and easing of tax burdens on business and finance, and real economy to bal ance the budget.
 Legislators summoned by MT. Roosevelt to further the more abundant life with key bills framed in behalf of agriculture, labor and small business are faced suddenly with tremendous pressure to legis- late in behalf of business and finance, and especially to modify new deal tax laws.
 Challenge To Proposals
 Slumping business, an unexpect- ly bad treasury situation and stock market weakness hauntingly like that of 1929 combine to challenge claims of agriculture and labor up- on congress this time. Federal reve- nue has fallen consistently below estimates in this fiscal year. Deficit estimates have risen accordingly. Business protests it almost is ham, strung by new deal levies on capi- tai gains and upon corporation in come which is placed in reserve in- stead of being distributed as divi- dends.
 There are indications as congress meets of willingness to go a little way toward easing these strictures and coincident movement in both the executive and legislative branches of government to do some thing about the series of treasury deficits under which the national debt was swollen to $37o0o0 100000.
 Tax Revision Delayed
 Leaders apparently are agreed that tax revision must wait until the rsgular session beginning in January. One or two of MT. Roose- velt's special session bills may squeeze through, but there is no as- surance of that. The senate is rip ped already by dispute over the anti-lynching bill which must be faced this autumn and there is prospect of a first class f1libuster by southern senators against it. That alone might snarl Congress so that nothing could be accomplished un- til 1888.
 This is the second session of the 18th congress which was elected in November 1886 in the Roosevelt sweep which gave the new deal cfatA AHa3taA mont. The first session convened in January 1886. It rebelled against MT, Roosevelt's judiciary reorganization bill and finally beat it after eight months of bitter debate.
 That debate and developments around 1t divided the Democratic party in congress and created po- tential conservative Democratic leadership on Capitol Hill which may be able to challenge the presi- dent in this session and the next
 Showdown In Expenditures
 A showdown is coming on govern ment expenditures. Secretary of Treasury Henry Morgenthau, Jr., last week proposed that the budget be balanced next year by trimming $700, 100000 from the current $3,- 311 ,000, GOO appropriations for unem- ployment relief, civilian conservation corps, highways, public works and agriculture. The national reaction to Morgenthaus plan was favorable. Chairman Pat Harrison of the sen- ate finance committee and other influential conservative Democrats publicly endorsed painful economy. But the first concrete related devel- opment was consideration by a | house ways and means sub-com- mittee of crop surplus control leg islation which would increase the current cost of farm legislation by $275 100000 instead of reducing it, as Morgenthau said was necessary.
 Influential southerners are break ing away from the new deal on unemployment relief spending and on wage and hours legislation. There Is scattered legislative clamor from north and south for adjustment of tax inequities. A thorough-going revision of the tax structure has been promised for next winter
 Business Recession Alarms
 The administration is alarmed by business recession and MT. Roose- welt is conferring with industrialists in an effort to start a housing boom which would buoy business.
 Coincident with the sudden ad- ministration economy drive and the convention of congress, the national conference of mayors, led by Mayor Fiorello H. La Guardia of New York, will meet here today. The