Evening star., 1961-02-14
Kennedy Makes Bid to Businessmen
To Ally Selves With Administration

President Kennedy IS bidding
for business support Of his adj
ministration's economic pr0-s
grams.
While recognizing that many
businessmen opposed his elecs
ton. he asked the business come
munity In o speech yesterday.
to enter into ''a full-fledged
alliance" with his administers
ton to promote economic
growth. plant modefnization
and price stability.
This theme Of the Presidents
address to the National Indus
trial Conferences Board was
echoed by Vice President john
son and other leading ad-
ministration figures In their
speeches to the NICB, q busi-
ness-supported economic re-
search organition. The occasion
twas o one-day ~Government-
industry conference held BY
the NICB ct the Sheraton-ParkI
Hotel.
Mr.. johnson assured the in
fluential business group that
the administration does not
seek to 'aggrandize" Govern
ment. He asked the business
men to discard POLITICAL
prejudice" against Democrats,
and urged them to reject the
counsel Of business elements
who intend to work for the adj
'ministration's failure.
Seeks Spirit Or Alliance
President Kennedy, address,
ing an audience Of 800 or more
at the NICB luncheon session,
declared there Is mo inevitable
clash between the public and
private sectors Of the economy.
tsWe know that your success
and ours are interwined," he
said. continuing: Whatever
past differences may have ex-
listed, we seek more than an
attitude Of truce. more than O
treaty-we seek the spirit Of q
full-fledged alliance. ?,
He estimated that the 10Rfl
deadline of corporate profits
cost the Federal Government
at least 90 billien Of revenues,
and said revenues would be at
least $12 billion higher than
they are now If the economy
were operating at Its full po-
tential. "Our revenues and thus
our success are dependent upon
your profits and your success"
he said.
Mr.. Kennedy said his pro-
gram to combat the recession
Is "an essential first step" to-
ward accelerating long-term
economic growth. The economy
VIII grow ct satisfactory rates,
he said, only after employment
and profits are revived to pro-
vide incentives for near-capa-
city operation Of the Nations
productive facilities.
A major element in his pro-
gram to spur economic growth.
the President said, is increased
business investment in plant
and equipment. He said In
vestment must be directed to
modernization Of plant and
equipment, as well as expan.
sion, because "obsolescence is
slowing down our growth.
handicappine our productivity
and worsening our competitive
position abroad"
To Ask Tax incentive
Mr.. Kennedy reiterated his
plan to ask Congress for legis-
lation to give businessmen "a
new tax incentive" for In
creased investment in modern
Industrial plants.
Investment In human re-
sources" through health, edu-
cation, science and other pro-
grams Is equally essential, he
added.
Labor Secretary Goldberg, in
another speech. denied a report
that the administration intends
to dictate the terms Of a labor
management settlement in the
auto industry later this year.
But he did not exclude the
possibility Of Government in
fluence or even pressure on
the negotiators in the interests
Of q "fair" settlement.