Evening star., 1938-01-22

49,. !. j.. David Lawrence.
operative mood. The air is full OF
conversation about how to get volun-
tary coordination of our economic
system. but none Of this has gotten
beyond the talk stage.
Whether any comprehensive plan to
get business movement under way
again can be worked out is at the mo-
ment Of less Importance than the fact
OF re-established confidence. One
must not assume that investors who
are the final judges Of how they will
risk their money have been completely
treasured. Much depends on Govern
ment action. not Government con-
versation. But better psychology
a more peaceful and constructive ap-
proach-is on the way toward realiza-
ton.
There is one achievement which the
week just passed can record It is a
better definition of what White House
press conferences can mean when off,
hand remarks are not supplemented at
the moment and what can be done to
straighten out misunderstanding when
the President himself takes cognizapce
OF such antiquities and explains them
to the press.
Unexplained Factors.
Many unexplained factors still re-
MAN. OF course. and decisions on these
'are of paramount Importance. Thus
Circuit Court OF Appeals has said
that T. v. A, may compete with pri-
Vate power companies. But should
T. V. A. do so? Mr. Roosevelt insists
utility companies in areas not touched
by Government competition should 90
ahead and sell securities, but how can
there be assurance of no competition
from the Government during the life
OF a l0-year bond that is sold to the
public now?
, Within a few weeks the Supreme
Court of the United States will art
on the question of compelling regis
tration by holding companies under
the utilities holding company law.
The court could decide the issue on
the narrow ground that registration
oy itself implies no damage and that
the companies have a right to come
into court If and when the Securities
and Exchange Commission shall actu-
ally force a dissolution of some hold.
ing company. Then the issue could
be argued on later occasion under
, the due process" clause of the Con-
stltution. but for the moment regis
tration does not mean dissolution. It
means merely the first step in a
process which raises issues that can
be decided subsequently one at
time by the courts.
Meanwhile. the granting of millions
OF dollars in gifts to municipalities
which are about to drive private
power companies out of the market
IN the sale Of local power raises
question OF fairness and equity, and
on this the country will want to know
II Mr.. Roosevelt will state fatty that
outside of the T. v. A. area there
will be no such granting of gifts or
whether he will refuse to commit him.
self on this vital point, which is. after
all. the crux of the whole problem
OF the safety of private property and
Government ownership.
Gifts to Cities.
It Is no "yardstick" of electric
light rates. Of course, to make it
possible for cities In Tennessee to
have low electricity rates when the
Federal Government not only lends
them the money to force an existing
company to sell its properties at
lower cost than that on which the
private company now has to pay
interest, but especially when the
Washington administration makes an
outright gift to the cities, too. Why
should the people of New York State,
for instance, be taxed to pay for sub
sidized electric light rates in Ten
nessee? Wouldn't it be fairer to
give everybody all over the country
lower rates? And If such a demand
should come. the Government would
be In the electric light and power
business on a national scale. Already
there are all sorts of schemes to put
the Government into various lines
OF business. If Uncle Sam can keep
his budget unbalanced so as to make
gifts to cities to carry on one busi-
ness, the same thing can be done in
other lines of trade and commerce too.
So the weeks conferences must be
analyzed in the light of what is hap
pening already as we'll as what might
happen. Public confidence Is be-
lieved to be an important factor in
getting business back into an up
ward swing that jobs may be created
TO absorb the unemployed. So far as
threats Of more drastic action are
concerned, these have been to a GER
tain extent made to seem less probable
BY the words Of the President himself
Voluntary Business Controls,
Likewise Mr.. Roosevelt has placed
the emphasis on voluntary controls
by business. He is asking for plans
to bring about in each important in
dustry an end to such irregular curves
as cause gluts and overproduction and
prevent annual wages from being
higher.
The basic issue which remains
clouded Is whether Federal funds will
continue to be used to compete with
private industry. If they are not to be
20 used, and the President will make
Q clear declaration on the subject
he really didn't meet the question
raised by the Roper Council on this
point-then 1t will be possible some
day to report that another milestone
has been passed in progress toward
recovery.
(Copyright. 1881