Evening star., 1938-01-05
P[ANNED|NDUSTRY
SYSTEM IS STUDIED
Business and Government
Parleys on Needs of Mar.
ket Are Proposed.
BACKGROUND

BACKGROUND
Alarmed at first important eco
nomic setback since it came into
potCer, Roosevelt administration IS
casting about for legislative curd-
tipes. Within past t,Do weeks prin-
cipal attention has been centered
on proposals to combat 1nonopoties,
but ,Oagehour legislation and roll
untnry cooperation betUeen indus
try and Government also are being
discussed.
BY the Associated Press.
President Roosevelts disclosure that
he is studying a system Of planned
industrial production shared interest
in the Capital today with the dispatch
to Congress of his annual budget mes
sage.
Both developments. legislators
noted. had direct relationship to
the business recession.
Administration officials have ex-
planned that the budget for the next
fiscal year could not be balanced be-
cause the recession has lowered reve-
nues and has kept up relief costs.
Planned production. Mr.. Roosevelt
said at his press conference late yes
terday, is being considered as one in
strument for preventing future down.
ward business spirals
Under the system discussed, he ex-
planned industry and Government
could talk over possible purchasing
power and the needs of consumers,
thus helping gear production to prob
able demand
II this could be accomplished with
out pegging prices and without wiping
out competition, the President said,
it would constitute an intelligent pro-
gram.
mo Renewal Of N. r. A."
He emphasized he was not propos-
ing renewal of the National Recovery
Act. and said that there had been
much discussion as to whether a plan
of industry Government conferences
would violate the antitrust laws. No
decision on the latter point has been
reached, he added.
Mr.. Roosevelt said his special mes
sage recommending revision of the
antitrust laws would not go to Con-
gress for two or three weeks. He
wanted to give both capital and labor
a. chance to solve their problems
before offering new legislation, he
continued.
Referring to his address Monday
in which he said labor's power and
responsibility must go hand in hand." :"
he said there was a growing assump-
ton of such responsibility.
English labor unions, he said. dis
played more responsibility than Amer
ican unions just now. but English
unions many years ago had gone
through the growing pains that now
af6icted American unions.
He said the International Ladies
Garment Workers Union &C. I. o.
had given an indication Of labor's
growing sense of responsibility by pub
fishing complete financial statement,
showing the source of all income and
details of all expenditures.
Labor Irresponsibilfty.
AS examples Of responsibility. he
pointed to a carpenters "a. F. of L.
boycott on lumber produced by C. I.
o. workers in the Portland, Greg.
area. and to strike that tied up
building when two A. F. of L. unions
got into fight over which should
install dumb waiter chute.
The President prefaced his discus
sion at his press conference yester-
day of planned production with refer
ences to specific cases Of the high
pressure salesmanship to which he
objected in his message to Congress
Monday.
His instances of what he termed
pushing sales were in the automo-
bile and steel industries. He told of
garage owner in town where about
100 cars were owned and where the
owners normally turned in their cars
every three years.
The garageman reported that, al
though he usually sold only 30 cars
year, his sales jumped to 81 last
year. The people, the garageman
added, had no right to buy that many
and the result Of their purchases
would be slump in car tranSactions