The Washington herald., 1922-05-19
Assures Executive He Is
Aiming at Reduction
of Long Shift.
WILL ASK FREIGHT
RATES BE REDUCED
President to Dine Rail
Leaders Tomorrow and
Make Appeal.

A series of conferences between
the President and the chiefs Of big
business to restore prosperity was
inaugurated last night at a dinner
President Harding gave 20 forty
leaders in the steel industry.
Tomorrow night the President Will
give a similar dinner TO the princi-
pal railway executives OF the coun-
try at which he will ask special
consideration of the proposition OF
materially reducing freight rates 70
promote the revival OF business.
E. H Gary, chairman Of the board
and James A Farrell. president Of
the United States Steel Corporation.
were among the captains OF the
steel industry at the dinner last
night, and one OF the big features
of the gathering was a discussion
Of conditions in the steel mills and
the steel trade in which Mr.. Gary.
Secretary OF Commerce Hoover aud
Secretary Of Labor Davis took .
prominent part.
Davis Backs President.
The discussion appears to have
taken. a wide ranEe-al the way
from the factor Of the proposed re-
duction Of freight rates in the re-
sumption Of normal business activ-
ity to the question Of the abolition
OF the twelve-hour day in the steel
industry.
On the latter subject. the Presi-
dent is said to have had something
important to say. all 20 the effect
that the twelve-hour day ought to
lie abolished on Humanitarian
grounds. Secretary Davis SuPrortcf
the attitude Of the President from
the viewpoint OF the Interest Of
the working man.
Gary Explains Plans.
In contrast with statements that
the United States Steel CORPORA
ton works so per cent Of ats en-
rloyes twelve hours a day. Mr. Gary
said that only 25 per cent work he
long shift. He asserted that the com
plete abolition OF the twelve -hogr
day is the aim Of the corporation
and that this object will be accom-
pushed in his opinion at no distant
date.
Secretary Davis pointed out that
the eiEht-hour shift had been eS-
tablished in a Chicago rolling mill.
one Of the largest in the couutr,.
and asserted that the change has
increased efficiency and volume Of
production with only slight IN
crease in payroll expense.
Would Aid Business.
At the dinner to the railway cx-
ecutives tomorrow night the Pres
dent will endeavor to bring about
the consummstion Of a plan for the
promotion Of business revival which
he has been considering FOR severa,
months. Mr.. Harding believes tha.
the biggest impetus that could he
given TO industry is the reduction
OF freight rates to a point that will
bring down prices materially and
start the farmers buying.
The President began his cam
psign for the reduction OF freight
rates nearly a year ago. At first
II was in the form Of a suggestion.
but the railroads did not respond
favorably. asserting that they woufd
not reduce rates until railroad
wages come down. The Railway
Labor Board reduced wages some
anu AuN ItnuNl'on OF gram
and some other rates was effected.
Becomes Political Issue.
Then the President entertained
h ne that the J. c. C.'s inquiry
would result in the more general
rate reduction at which he aims He
recently was advised, however. that
the commission in its Forthcoming
finding could not go as far as de-
sired in reducing rates on account
OF the transportation act provision
requiring that the rates fixed should
provide a reasonable profit to the
carriers.
Mr.. Harding then determined to
appeal to the railroad executives
voluntarily to reduce rates 10 the
extent necessary to revive business.
FreiRht-rate reduction is becoming
a political issue and one which may
In time embarrass the administra-
tion. Albert J. Beveridge made
much OF this issue and carried the
Indiana farmers almost Sohdly.