The Waterbury Democrat., 1939-01-03

aF x major blanks in President R
 Democrats remained firm and house, although the Republican strength was increased substantial 1y in the November off-year elec- tionS Republicans gained eight sen- ate seats and 81 seats in the house, and interpreted their gains as vot- CTS mandate to revise several laws written by former New Deal con- gresseS.
 The Wagner labor relations act, farm aid program, relief and taxes were expected to be topics for hot debate on both sides of the Capitol. Senators and congressman will be haunted by the vision of the 1940 presidential election, and from the debate will come the issues to be placed before the voters in the next campaign.
 Huge Outlay Predicted
 Some legislators predict that the new congress, facing demands for stronger national defense and con- tinuing relief costs, may authorize expenditures of $10,0O0, 0,000, ,000, ap- preaching the peace-time record of S11,361 ,815 ,000 established in the last session.
 MT. Roosevelt already has survey ed the legislative field with his sen- ate and house leaders, who predict ed session devoted primarily to re- vision of existing statutes. The pres ident has announced his intention of asking congress early this month to extend and strengthen the so- cial security act, and has declared that he will try again to obtain &p- proval of a bill permitting him to re- organize federal departments. Such a measure passed the senate by a scanty margin last session, but was killed in the house.
 WPA Under Fire
 Requests for continued relief ap- propriations will be the signal for Republicans-ands some Democrats to renew demands for congression- al investigation of the Works Prog ress Administration on the grounds that relief money was used for poli- tics in the last election campaigns.
 The clamor for revision of the Wagner act comes from business and one branch of organized labor the American Federation of La bor. Employers demand drastic cur tailment of labor board powers and amendments to give them rights comparable to those guaranteed to workers. The A. F. of L. wants the act rewritten on the ground that the labor board has shown bias for John L. Lewis Congress of Indus trial Organizations.
 Controversy over crop control and marketing quota provisions will highlight the campaign for changes gram. 2
 Another tax bill will be necessary in the administrators farm pro- to continue the $500, 900, 900 in rev. enue raised by expiring nuisance taxes, and the $1,300, 100000 yield of the tax on corporate earnings. Ef- forts may be made to revise surtax rates in the higher brackets, which wero criticized recently by Chair man Pat Harrison, D., Miss, of the senate finance committee, Harrison, who led the successful fight against the undivided profits tax, declared that surtaxes had reached the point of diminishing returns.
 Security Bay Be Broadened
 Congress will be asked to study recommendation of the social se- curity advisory council, which in- cluded proposal that coverage un- der a social security act be ex- tended by 1940 to 8,600,000 workers new excluded.
 Unrest in Europe has stimulated demands for a broader national de- fense program. Changes in the neu- trality act will form a part of the general program, but Congress will concentrate on appropriations to carry forward expansion Of the navy and additional legislation for de- velopment of more powerful air force.
 Another special message from the president will deal with a proposal for establishment of a comprehen- sive national health program, con- templating an expenditure of $60.- 900 900 to 65,000,000 the first year, with states being required to match some of the federal funds.
 Rail Situation Critical
 The financial plight of the coun-