Salt Lake Telegram | 1934-05-16 | Page 4 | The Daily Washington Financial Whirligig

I THE DAILY WASHINGTON J I Financial I Written for Tho rho Telegram I. By JAMES mS McMULLIN NEW V YORK Ga Gandhi resistance to higher prices by Mr arid and Mrs Consumer is beginning to have an The textile trade is the first to weaken Goods simply cant be moved at prices the the- thein industry in in- tried to establish Retailers haven't given much ground yet although there are an unusual number of clothing sales here for this time of year But jobbers and wholesalers are arc quietly slashing not their shading prices They're tired of watching their inventories gather dust The textile situation is complicated by over over- production Manufacturers were too optimistic tic about public demand and it looks as if the industry is in for an uncomfortable summer But if the price reduction contagion spreads it means a major showdown with N R A. A Many business men are planning a sharp and concerted concerted con con- attack on the higher costs arising from wage and hour code provisions They will argue they cannot possibly continue to operate operate oper- oper ate under code conditions so long as the pub pub- lie Hc reuses refuses to pay more a a W. W Averell Harriman quietly growing in stature at N R A headquarters is understood to sympathize warmly with this viewpoint Meanwhile Mr Consumer himself has done more to swat old man than all the boards appointed for his protection Utilities Will Vill Fight The New York public service commission I wont won't wait long to try tryout out its new powers of rate reduction Several Consolidated Gas subsidiaries subsidiaries sub sub- have been ordered to submit new cost data which will be used as a basis for shaving shaving ing down charges to the 5 per cent return limit authorized by the state legislature This will vill be followed up by a similar onslaught onslaught on- on slaught on other utilities s. s Even the telephone hitherto company generally exempt from rate rulings rulings-is due to be ridden to a fall faIl But dont don't think the utilities will swallow the dose without a protest The best legal talent tal- tal eat ent available will for a l finish fight in the courts Many other state commissions will take their cue from the outcome Wires Vires Take Opposite Views The N R A move to impose a code on communications corn com companies links the latter with the utilities as special objects of at government attention attention at- at during the summer Informed sources state that the detailed attention given these two industries is partly for the purpose of diverting diverting di- di the public gaze from the freedom allowed allowed al- al lowed other probably industries temporarily temporarily- to work out their problems in their own way Postal welcomes the code because of competitive conditions but Western Vestern Union R. R C. C A. A and American Telephone think the idea is all wet Wage Vage provisions will increase costs enormously Authorities estimate that the increase for Western Vestern Union will be around six nbc million dollars a year more than the company corn com pany has been making The figures fo for A. A T. T T. T haven't been fully worked out but they will make quite a dent in earnings Bankers Like New Comptroller Joseph D. D NeW McGoldrick York City's new takes comptroller the office he narrowly nar nar- missed nomination last year People Who arranged the fusion ticket considered con on- him seriously for the job W V A. A CUnningham Cunningham CUn- CUn was finally given the preference because because be- be cause of his war record and the fact that he was wasa a business man man rather rather- than a professor These factors were believed to make him a stronger candidate McGoldrick ck is a Democrat with a strong Tammany anti background He is a Catholic from which Brooklyn qualifies him politically political political- ly ira in the event his office is contested in the special election this fall He knows his stuff on city finance and the city's bankers are generally generally gen gen- gratified at the choice The fusion forces are divided as to the wis- wis of trying to block an election this Novem- Novem ber Some believe its it's a swell opportunity to confirm their victory over Tammany Tammany in a disorganized condition Others can see no point in taking chances The courts wIll decide FusIon for State Politics The fusion effort eUort to strengthen its grip on the city win vil stir curious currents cross in the regular state election and make the outcome more uncertain than ever There will be fusion candidates for state senators zen zen- and assemblymen from New York City but none for upstate constituencies s or wide offices such as governor Kingsland Macys Macy's direction is doomed to failure because too many fusion supporters are friendly to Governor Lehman This makes it easier for the Democrats to reelect Lehman but greatly improves Republican chances for control or of th legislature Mayor La Guardia comes in for plenty of private cussing from politically minded fusion fusion- He till still declines flatly to use patronage to build a permanent organization fUSiOn j despite entreaties ties by some o. o ot hIs collea CO m c. c