The Waterbury Democrat., 1938-08-03

OA VAAV VAAk A0 AAOV 6SAANA &~AJ
 Flying in an amphibian plane from Seattle, with an assortment of maps and charts, he is mak- ing a preliminary survey of highway through Canada to the Klondike.
 The amazing feature of this project is that the United States would build and control high way within the territory of Can- ada. The road would cost $12,- COG, 900, and be built, paid for, and maintained by the United States.
 Construction would be difficult as an engineering feat, but more difficult still as a diplomatic feat. Negotiations are now under way with Canada to obtain the right of way and the necessary guaran- tee of control.
 The War Department is not in- terested in providing scenic beauty for tourists. Its motive is to strengthen the fertilization of Al- aska, thereby protect the contin- ental United Staets from attack in the north Pacific. The generals want highway over which they could send troops and military equipment in an emergency.
 This is where the diplomatic dif- ficulty comes in. Canada must guarantee that the road may be used in time of war, though a third country might regard such a concession by Canada as an un- neutral act.
 The idea is being soN to Cam ada with two strong arguments: she would get 8 $12,000,000 high way without cost, and she would get many times this amount in tourist business when this route is opened for auto mobile traffic.
 If he can get the Presidents ap- proval, Johnson will put bat talion of engineers to work im- mediately on a mile-by- mile sur- vey of the route. The Twenty ninth Battalion of Engineers is stationed in the Northwest, ready to do a quick job.
 Business Cheer
 A confidential report on July business conditions has just been radioed to the President aboard the USS Houston by his inner council economists.
 The report was not entirely com- plete, since business indexes for the entire month had not been compiled. Nevertheless 1t was suf- ficiently complete to give the President real ground for eoon- omic cheer.
 Later in the month the inner council economists will be able to prepare another report which they are confident will be even more cheering.
 This is what they were able to radio the President so far:
 l. Inventories-There has been a continuing rapid liquidation of the huge stocks that clogged the channels of production last win- ter. In the automobile indus try, General Motors has reduced its inventories from the huge record of $279 100000 on Decem- Der 3l, 1887, to $l76,ooo,0o0 on July 1, 1938-a drop of $103, 3,000,- 900. In the same period General Motors "cash-in-hand" reserves increased from $l5l 100000 to $243, 100000. Similarly, Chrysler cut its inventories by A per cent, from $54 100000 to $24,000,000.
 2. Consumer Expenditures-In- creased six per cent over June which had four per cent better record than May.
 ,. Industrial Production-Al- though July normally is off-sea- son, with slackening manufactur- ing activities, its industrial pro- duction went up to 80, 3-point gain over June which chalked up a 1-point gain over May. which saw the low of the recession. This years July index of 30 compares with IA for the same month last year, while Mays index of 76 is against 1l8 for May, 1887.
 1. Employment-Up by be- tween 750,000 and 1,000, ,000, with the gain largely in agricultural labor. There was a small net rise in industrial employment for the month but the big ad- vance in this field is not due until late fall when the effect of the governments large scale spending program will begin to make itself felt.
 The total U. s. employment in June was 31,600,000. July, accord ing to preliminary estimates, will be around 32,250,000.
 Commission Shy.
 There is one phase of Madame Secretary Perkins recent trip to Europe which she will not discuss publicly.
 This is the activities of the Presidents Commission sent to