711.42157SA29/1271½

President Roosevelt to the Secretary of State

C. H.: Will you talk with Frank Walsh63 about the next steps on the St. Lawrence Treaty? & then talk with me?

F[ranklin] D. R[oosevelt]
[Enclosure—Memorandum]

Power and rail interests will use the interval before next session to organize opposition against the project itself rather than against alleged weaknesses in the Treaty. Evidences of activity include:

(1)
Security Owners’ Association propaganda against government in business, especially against public competition in power field.
(2)
Mine workers organization against government development of hydro-electric power as tending to reduce demand for coal.
(3)
Continued lining up of rail workers against waterway completion.

The situation outlined can be met by prompt steps along the following lines:

(1)
Quick action through the State Department to begin conferences and negotiations on possible revision of certain provisions of the treaty.
(2)
Federal Trade Commission investigation of Power Trust propaganda and lobby against treaty and project. The fact that such an investigation was in progress would put damper on propaganda activities. Judge Healy favors the treaty.
(3)
Emphasis upon value of St. Lawrence project, particularly in terms of reduced electric rates. Inspection trip to the St. Lawrence in May or June would dramatize the issue, inform public opinion, keep project alive and offset hostile propaganda. A later date would conflict with the campaign and run into cold weather.

  1. Chairman of the New York State Authority.