Evening star., 1938-01-16
New Deal Entering
ON a New Phase
BY OWEN L. SCOTT.

The New Deal, under Mr.. Roosevelt's
guidance, definitely Is entering q new
phase OF its brief but hectic life. This
phase Is to be characterized by a moder-
alton that has been lacking for the past
two and one-half years.
The President Is known to feel that,
for the first time, his administration has
its feet firmly planted on solid ground.
Those who see him regularly note that
his spirits and demeanor never were
better. This attitude of one who Is con-
fident and optimistic grows from silent
revolution that is occurring in the CEN
ter of governmental power.
Until now, President Roosevelt has
been able to win elections by unprece-
dented majorities but he has been un-
able to translate those victories into as
sured accomplishment Of promised re-
FORMS The reason was that the Supreme
Court majority, unwilling to accept many
Of his projects, stood across his path.
Opponents who lost the elections con-
tinued to battle successfully against the
President In the courts. They had conf
dence and optimism. based upon the
prospect that five out OF nine Supreme
Court justices would stop the New Deal
where the ballot box could not. Imbued
with this feeling, they gave battle to the
White House all along the line.
But, on Tuesday. Justice George Suth-
erland - the wheel-horse of Supreme
Court conservatives-steps down from the
bench. After his retirement and the
appointment OF a successor, the court
will be dominated by justices who hold
broader view of the Federal power and
narrower view Of corporate rights than
did the court of the recent past.
At this time, there will occur an his
toric shift in the balance of govern
mental power The presidency will re-
gain the dominance that had shifted to
the court back In 1885.
Big business now faces the prospect
either OF treating with President Roose-
welt or Of depending upon Congress to
balk the President. Congress almost GER
tainly would prove weak reed on which
to rest business hopes. There is little
basis in political history for the idea that
the electorate of this country will sud-
denly turn conservative In its attitude
toward high finance and big business
occurring is quickly apparent in develop
ments under way.
Executives of the electric utility indus
try have been frequent visitors to the
White House, telling their problems and
seeking light on what Mr.. Roosevelt has
in store for them. Last Tuesday saw a
group of the Presidents most powerful
former, big-busineSs enemies in a pro-
Mil
conference produced a statement by the
big business executives telling of a "con-
structive talk" and limiting at "closer
cooperation in meeting the problems
OF the moment. Next Wednesday is to
see nifty more big business men gathered
to hear what the President has to tell
them. The appearance on the Washing
ton scene OF men who had been battling
President Roosevelt is turning into reg
ular parade.
All signs are that business is seeking
basis OF peace in the knowledge that the
war has been lost by its side.
AS matter of fact, the Presidents
opposition has been losing one battle
after another during the past year with
out quite being aware of that fact.
Ever since last February, when he first
opened fire on the Supreme Court con-
servatives. Mr.. Roosevelt has had con-
sistent court approval of his New Deal
laws. His ratio of legal victories to legal
defeats has been 100 per cent-something
OF a record even for conservative Presi-
dents in recent years. The war actually
was lost by business when the court &C
cepted the Wagner Labor Relations Act
as constitutional. Its loss was sealed
when the court approved the Social Sc
curity Act and refused to upset the
Securities and Exchange Act and the
electric power phases of T. v. A. and
P. w. A.
There now is virtual certainty that
new farm-control law will get court ap-
proval and that the New Deal law calling
for registration and regulation of utility
holding companies will be accepted.
The result is that leaders in American
business face the alternative of adjust
ing themselves to New Deal or of try
ing again to beat President Roosevelt
and his followers at the polls Mr..
Roosevelt's term has about three more
years to run. The recent trend in con-
gressional elections has been anything
but pleasing to conservatives. But Just
to supply business men with sample of
the appeal that would be used by his
followers in the event of fight at the
polls next November, the President
turned loose Robert jackson and Harold
1ckes with blasts at monopoly.
- X X
Business men obviously have decided
that the better part of wisdom now calls
for treating to seek basis for peace and
cooperation.
Here again they are pressed by an al
tentative. MIR. Roosevelt has made up his
mind and has told the country that he
is determined to do something about the
concentration of corporate power in the
United States. He is impressed by the
figures that show how very few people
most of them out of public view-wield
vast power over the jobs and the liveli-
hood Of the people of the Nation.
Three courses Of treatment are open.
The first would call for an effort to
break up, by taxation or otherwise, the
vast units In American industry. This is
known as the Brandeis plan, because the
supreme Court justice long has held that
control and management problems in
American big business have become too
dlfncult for wise solution. But any at
tack along this line at present, with a
depression going on, would only cause
new uncertainties.
A second course Of treatment under
study calls for Federal Government in
corporation and licensing of all business