Evening star., 1939-04-30
Henderson Selection
May Reopen Fight
On New Deal
Business Groups Ready
For Struggle, Look
To 1910 Election
BY HENRY PAYNTER,

NEW YORK, April 29-Open hos
tilities between business and admin
istration groups In struggle for
control of the Democratic party in
the 1910 presidential election were
predicted today for coming weeks
by some leading figures Of the Wall
Street financial community.
They said that the move for CO.
operation between business and ad-
ministration-the sometimes called
"appeasement" program-had come
to dead stop.
The behind-the-scenes strategy
for control in coming months of
delegates to the Democratic Ma
tional Convention may break into
the open shortly, they said, in the
United States Senate, when Presi-
dent Roosevelt's nomination Of Leon
Henderson to the Securities and Ex-
change Commission Is acted upon.
Henderson's vote in the s. E. c.,
they said, is necessary for the New
Deal" group to control the tone Of
the impending S. E. c. presentation
OF the temporary National Economic
Committees probe into big-time
financing.
Marked for Questioning.
Within the past day or two, sew
eral of the outstanding figures of
the financial world have been noti-
fed they would be summoned to
Washington shortly after May Is to
be put on the witness stand and
questioned. Some so notified were
George Whitney, partner in j. P.
Morgan & Co.; Edward r. Stettin-
ius, chairman of United States Steel
Corp; Elisha Walker, partner in
Kuhn, Loeb & Co.; Walter S. Gif-
ford, president, American Telephone
& Telegraph Co.: Floyd L. Carlisle,
chairman of Consolidated Edison
Co.; Wendell L. Willkie, president of
Commonwealth g. Southern Corp;
]. Howard Pew. president, Sun Oil
Co.; Harold Stanley, president of
Morgan, Stanley & Co., and Joseph
Swan, former president of Guar
anty Co.
Some leaders, puzzled by the
grouping of these men for the in
vestigation, said the tone of their
public questioning would be in the
power of the S. E. C. to control.
Significantly, they said, there was
included in the above list the names
of two men who have been out
standingly active here in behalf of
,o-operation-Stettinius and Carlisle.
Favored Cooperation.
Carlisle was one of the first big
businessmen to come out publicly in
favor Of cooperation between Gov
ernment and business to bring re-
covery in 1887 and a year and a half
ago he pledged his company would
spend large sums Of money to help
On the sidelines he has been an ac-
tive advocate of cooperation.
Stettinius likewise has urgently ar
gued cooperation in Wall Street and
has been one of the most influential
members of the business advisory
committee of Secretary of Commerce
Harry L. Hopkins, which tried to
formulate recovery program.
Neither Stettinius nor Carlisle was
available here for comment today,
but others who have been active in
a lesser degree in the Hopkins pro-
gram said this week they feared 1t
had been permanently shelved,
largely because of Hopkins illness.
In addition to this activity, some
pointed out, the Federal Power
Commission has begun an investi-
cation into Niagara Hudson Power
Co., in connection with diversion of
Niagara Falls water, and the S. E.
c. reputedly Is about to begin an
investigation into United Corp.
Carlisle is a leader in both Of these
companies.
Shields Plea Ignored.
A third outstanding worker for
cooperation was Paul v. Shields,
Wall Street broker, given much
credit here for his part in bringing
about the amicable reorganization
OF the stock exchange so strongly
desired by the administration. Mr..
Shields this week made a last-min-
ute personal request to the Presi-
dent. some Wall Streeters said,
against the nomination of Hen
derson, who was Immediately aft
erward nominated.
In addition, 1t was reported here
and at Washington that the Pres
ident had urged Robert M. Hutch
ins, president of the University of
Chicago, to accept the designation.
Hutchins last fall resigned as pub
lie representative" on the Board
Of Governors of the stock exchange
when that body refused to investi-
gate further the conduct of ex-
change members who may have
known of the financial condition of
Richard Whitney, former president
of the New York Stock Exchange
now serving Sing Sing Prison SEN
tence for grand larceny. He is q
brother of George Whitney.
Opinion of leaders was divided
on the trend of events during the
last week. Some have been out
spokenly against "co-operation," be-
ieving that their position on eco
nomic policies was correct and
should be fought out publicly, with
the public deciding who was right.
This group generally welcomes the
opportunity for airing of differences.
Fear Injurious Effects.
Others, including those in the
"co-operation" group, have said they
believed such a fight would be in
furious to business and urged upon
their fellows submission with as
good grace as possible to administra-
ton desires in the hope Of bringing
recovery.
Some have been active in recent
(see HENDERSON, Page BID
Weekly Finonc