| Show New York Whirligig The News Behind the fhe News POLITICS FINANCE By JAMES McMULLIN NEW YORK YORK Sentiment Sentiment In In fa favor tavor ta- ta aVor a- a vor of amended federal regulation regulation regulation regula regula- tion of ot utility holding companies as as against no regulation at all allIs allIs allis Is Is growing rapidly within the Industry Sources Sou In a position to know estimate that 75 per cent of ot the important groups arc now sold on the Idea recently broached by Wendell P. P of ot Commonwealth Commonwealth Com Corn Southern Furthermore a number of ot con con con- gressmen are arc also showing keen Interest This includes several who helped push through the present holding company actA actA act A bill is now being drafted which will fit the industry's own concept of reasonable regulation to eliminate past abuses It is likely to be introduced and pressed at this session session although although details of ot how this is il to be done have not been determined Its sponsors are anxious to keep as clear of partisan politics as possible pos pos- sible sible ible which will be a good trick If It they can do it This development development develop develop- ment should make big news In ln Inthe Inthe the ne near r future Even conservatives conservative were surprised stir sur at the supreme courts court's s clean sweep of ot A A A. A They had fully tully expected a less Jess drastic de decision decision de- de and believed the government government govern govern- ment had a better chance to win this test than almost any other A number of ot right wing leaders privately wish the victory had been a little less Jeu complete The Th courts court's dictum t that at the whole principle of at federal control of ot agriculture is illegal is likely to dump thousands of ot the on farmers farmers' into F. F D. D Its R.'s lap Jap Certainly Certainly it will as assure ure strong farm support for a a constitutional amendment t to broaden federal powers If It Roosevelt chooses chooses' that line of ot counter count r attack Informed observers Relieve elleve this course- course slow alow as it Is Is-is Is is wiser than trying t to cram through a substitute law Jaw that seeks to evade the constitutional limitations defined by the court The latter would emphasize emphasize emphasize size the opposition charge that he deliberately flouts the rules of ot the game Of Ot course a sustained rise In commodity prices would help the farmers forg forget t A AAA A A. A D Dont Don't nt be surprised if they are dellb deliberately boosted a bit at strategic mo mo- ments meats On the basis of ot the majority supreme court opinion condemning condemn condemn- ing penalty tax taxes and usurpation of ot powers reserved to the states legal leg l sharps prophesy the final invalidation of ot every major new new deal measure except possibly the Tennessee vall valley y authority and the securities and securities ex exchange exchange ex- ex change acts Broad int interpretations interpretation's tio of ot Interstate Interstate interstate inter Inter- state commerce and of t taxation for tor the general welfare are arc rated clearly out the window hereafter her Comment runs that Roosevelt can canno no rio longer hope to hold his legis- legis legIslative legislative gains without changing the constitution He must choose be between between between be- be tween reviving that issue in ia a big way or confessing abject defeat all aU along the line Ine New Yorkers crack that theres there's no need for tor new deal opponents to ask congress for tor the repeal of ot new deal m measures as measures as the the president president dent challenged them to do Why bother about congress congressI I when the supreme court will do dothe dothe dothe the repealing with a so much less lui fuss 7 The treasury's actual cash deficit deficit deft deft- cit for tor the past six months was about It would probably have been less than a billion for tor the next six Ix If it processing processing process process- process process- ing taxes hadn't been knocked out Now theres there's no telling with any degree of ot accuracy But in any case the treasury can view the near future with more equanimity equanimity equanimity equa equa- than most government de de- de- de eats It has a current working balance balance bal hal ance of about That should be ample to cover all normal normal normal nor nor- mal needs at least until July Maturities of around in notes and bills up to July 1 can be refunded in stride Mr will not have to ask for tor any new funds funds except except to pay the bonus Financial sharps predict he will play that safe sate and raise the money on short term terra notes rather than take a chance on trying to market a new term long-term issue With continued recovery in prospect prospect prospect pros pros- pros pros- it should be easier and cheaper for Mr t or his successor to refund the notes into long bonds a year or two from now The administration may recommend new taxes to meet the bonus Tt JL i r it will be merely a gesture Congress is sure sura to give that idea the razz- razz berry I The Democratic national convention convention convention con con- will probably have to o struggle along without the distinguished distinguished distinguished distin distin- presence of Al AJ Smith or or John W. W Davis as delegates from New York The state committee Jim names large delegates Farley rules the state committee and and that's that Of Ot course Al might be picked as a local Tammany delegate delegate- but that isn't very likely either Political insiders say the heat has been turned on Jim Dooling Tiger Tiger Tiger Ti Ti- ger boss with a vengeance Hes He's been advised in no uncertain terms to do as hes he's told and quit fooling around aroun around or or or else Its It's true that most of ot Dooling's followers are arc Roosevelt anti and anti Farley But Farley Can can still swing a wicked ax that Dooling cant can't afford to ignore if he wants to keep his job Betting is Is' that he will behave Father Coughlin's demand for forthe forthe forthe the Patman inflationary bonus bill was an effort to lo prove that he still lUll packs a time big-time political I kick But he was wise enough to hedge himself by saying that he wouldn't ask his followers to in inundate In- In congress with telegrams telegram this time Keen observers observers' prophesy he is due for a shock Congress will pay no more attention to him now than an elephant to a mosquito Insiders learn that Henry Ford will be among those heard from fromin in the political campaign I Though possibly not unless and until Roosevelt is Is' German rearmament has accelerated accelerated accelerated greatly in the past few tew months Pensions will cost the railways this year it if if they are legal Copyright McClure Newspaper Syndicate |
