The Western news. [volume] (Libby, Mont.) 1933-current, 1939-05-11


to President Roosevelt, and made
him take so many steps in that
fealty which were to embarrass him
later.
So, adding together the fact that
Bilbo. Pats bitter enemy, is sup
porting Johnson, who is defending
the administration, to the fact that
Conner is attacking the administra-
ton. maybe Pat will not be too dis
tressed to support the man he was
battling bitterly three years ago.
Health of Hopkins Takes
On Political Significance
Perhaps the most important sin
gle factor in the political situation
today is the state of health of Harry
L. Hopkins. The secretary of COM
merce is very sick man, accord
ing to several close friends. He is
now being strongly advised to go
back TO Rochester, Mimi, and UNI
dergo more drastic medical atten-
ton. If he should take this advice,
he will not, of course, be at Presi-
dent Roosevelt's elbow, and hence
the strength of his pressure for the
appeasement of business program
will not be SO potent
The tremendous Importance of
this. both as to business and as to
the next presidential election, cam
not be exaggerated. 1t is beginning
to be obvious that in the whole So
called appeasement program it is
Hopkins, and Hopkins alone, who
can translate his ideas as to what
should be done to encourage bust
ness into affirmative action by the
President.
Hopkins program for unshackling
business was ambitious. Tt was ire
mendously encouraging. In fact it
was the first sunshine, as business
men see it, from within the ranks OF
the powers that be in Washington
If one excerpts few mirages-for
six long years. As unfolded to indi-
vidual senator's, and to certain gem
tlemen having influence with the sem
ate, it had many ramifcations.
1t was especially encouraging to
business because it seemed to have
sound political logic back Of it, and
Hopkins gave all and sundry TO I'm
derstand that the President ap-
proved both the political logic and
the necessary steps involved. 1t
looked, in short, to bringing about
a real revival of business which
should reach full flood before the
election to be held in November,
1910, when the New Deal is either
to be continued, under Roosevelt or
some successor satisfactory to him,
or else voted into outer darkness.
First Step 10 Stop Scrap
With the Electric Industry
The very first step of this pro-
gram, as Hopkins painted the pic
ture, was to stop the scrap with the
electric industry-to have IVA pay
a fair price for the Tennessee prop
critics, and to take other steps which
would release the piled up spending.
amounting to four billions accord
ing to William o. Douglas, which
fear of government has been re-
straining. Before Hopkins had been
in office week the first move was
made on this. IVA agreed to buy
the Tennessee properties. Later
came another step. IVA announced
it would pay the state and local gov
ernments where it operates a sum
more commensurate with the taxes
they would receive were privately
owned companies operating the
properties. 1t even went further
and proposed study of whether the
IVA should not make some return
to the federal treasury in lieu of
corporation income taxes that the
government would receive from the
properties if privately operated
Which, incidentally, is quite
commentary on the majority report
of the special congressional investi-
eating committee, which actually
approved the yardstick!
The majority of the committee
disregarded the testimony of David
L. Lilienthal, who said the govern
ment had certain advantages as
against private companies in fixing
rates that the government can
charge off large parts of the cost
to navigation and flood control, that
it can borrow money on tax exempt
bonds- at 2 per cent or less, and
that its contributions in lieu Of. taxes
are only a fraction Of what private
companies would have topay.
But Hopkins did pay attention to
these factors Since he started this
one move he has been sick. And SO
has the rest u the appeasement
program