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Show Merry-Go-Round By DREW PEARSON and ROBERT S. ALLEN WASHINGTON The president has been in private conference with a great many experts during the past few weeks, discussing the eco-nnmic eco-nnmic condition of the country. Out of this has come a three-point program which he believes will unlock the flood-gates of business activity. It affects three basic industries: 1. Home construction. The United States is well over 3.000.000 houses behind normal housing construction. 2. Expansion by power companies. These are about seven years behind in the construction construc-tion of new lines, poles, wiring, etc. 3. New railroad equipment. The railroads' also are far behind in modernization programs. Weeks of study have convinced the president presi-dent that these three hold the key to a new business boom. Each has been in the doldrums since 1930. Each could absorb several billion dollars of new construction, and the effect of such spending would reach into every corner of the nation. The question is how to start this economic flood-tide. Each Industry requires a different set of principles. Housing Chief obstacle to home construction is the high cost of both materials and labor especially -labor. Experts assert that it is impossible to get a building boom started as long as labor rates continue in the stratosphere. The average carpenter, car-penter, mason or plasterer puts in only 20 weeks of work a year, but when he does work his wages are almost prohibitive. The solution proposed is an "annual wage." which while less per day. would assure year-round year-round employment and a better total inocme. Under the N R A, General Johnson tried to persuade A F L building trades moguls to accept such a formula, without success. Railroads Chief blame for stagnation in railroad modernization rests on the interstate commerce commission. For five years it has been fud-duddling around with carrier reorganization and consolidation, consoli-dation, but getting nowhere. Meanwhile many major roads, tied up in receivership and bankruptcy bank-ruptcy under section 77B, have been unable to finance new improvements. In consequence, equipment has deteriorated to a point where billions are needed for railroad rejuvenation. If this financial log-jam could be broken, railroad replacements would start at a speed the country never before has seen. How to do-this do-this has been a subject of varying debate, but one possibility ia to repeal section 77B, letting the roads go through the drastic, but speedy wringer of forced bankruptcy. tower Companies Like the railroads, the power companies have fallen far behind in capital improvements. Technicians estimate there is seven years of back work to be done in planting now poles, stringing string-ing new lines. The engineers are anxious to go ahead, but the money-bags moguls are holding hold-ing back. Reason if political rather than economic. Those who control the purse-strings are at dagger' point with Roosevelt, say they cannot risk new construction while he is president Otherwise they would spend a billion dollars a year. Aa a peace move to encourage utility replacements, replace-ments, Roosevelt is seriously considering a modification modi-fication of the capital gains tax in a manner which specifically would tempt the utilities. Gate-Crasher The story hat been carefully guarded at the White House, but when Britain's famed author, H. G. Wells, called to lunch with the president he was given the bum's rush as a gate-crasher. It all happened because Wells, for some unexplained un-explained reason, tried to enter the mansion through a servants' entrance, where he was promptly grabbed by a guard. Wells in physical physi-cal appearance resembles a provincial English grocer more than he does a great literary figure. "What do you want?" demanded the guard. "I have a luncheon engagement with the president," Wells explained. The policeman eyed him with growing suspicion, convinced he was a crank or worse. "You had better beat it before I run you in," , he growled. "But . . but ..." "Scram!" Bewildered and speechless. Wells was about to turn away when Vermont Connecticut Roy-ster, Roy-ster, star Wall Street Journal newsman, happened hap-pened by. recognized Wells and. identified nun. But this did not end the incident. It developed that Wells had left a taxi driver waiting outside because he did not have the change to pay him. Again Royster came to the rescue, after which he escorted Wells to the iroper White House entrance and saw him safe-y safe-y inside five minutes late for lunch. (Copyright, 1937, for The Telegram) |