Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-21
RAIL HEADS ASSIST
HOOVER PROGRAM
Promise to Continue Expan.
sion Plans Will Aid Bust.
ness of Nation.
BY JOHN F. SINCLAIR.
,atch to The Star,

Special Dispatch to The Star.
NEW YORK, November 21.-Nothing
approaching the White House confer
ences on business prosperity has ever
taken place in the financial history of
the United States.
The railroad executives told the Pres
ident they were prepared to expend in
the neighborhood of $1,000, 0O0,0 900 In
various projects during the coming year.
AS the railroads are the largest en-
ployers of labor in this country, this
prompt action Of the officials to main
tain the prosperity level could not have
been more encouraging.
New York City, through Mayor
Walker, announced yesterday vlgor-
Gus expansion of its public works pro-
gram, contemplating the expenditure
in the next four years of more tnan
81 ,000, 100000
other cities throughout the United
States are announcing expansion pro-
grams for next year. Untitled orders In
the steel industry should increase dur
ing the next so days rather than de-
crease. Building construction should
show also like increase. These are
two of the three key industries. The
other one is the automobile.
And while the next IL months may
show decrease in this field, many of
the automobile leaders believe that 1880
will be a normal year. But none of
them are losing sight of their expand
ing foreign business.
The announcement by the railroad
presidents that they would push with
vigor their expansion program and i'm
provementS for 1880 brings out the fact
that 1880 may prove to be the record
year of the last 10. In no year since
1923 have the railroads spent as much
as 81 200, 5000 on their Improvements.
Capital improvement expenditures
made by them, according to the Ameri-
can Railway Association, have been as
follows: 1923, $1,059, 100000; 1924,
1915, 100000; 1925. $748,000,000; 1925,
1895 100000; 1927, $772,o0o000; 1928,
$685., 000, 900.
It is expected before the end of the
week the total 1880, Improvements to
be announced at the meeting in Chi
cago will reach somewhere between
$500 600, 900 and $1,000, 100000. Before
the end of the year, unless something
unforeseen happens in other lines OF In
dustry, the figures may exceed those OF
the record year of 1928.
This is the finest news that has come
out of the business world during the
last four weeks.
When Roy Young, governor of the
Federal Reserve Board, following
meet of the Federal Advisory Council
with President Hoover, made the pre-
diction that money will be available
at lower rates." he did most unusual
thing.
Always accessible to the public,
democratic in manner, willing to dis
cuss policies and programs from time
to time as they have been developing,
still the governor has not been willing,
except in very few cases, to be
directly quoted.
The statement made yesterday by the
head of the Federal Reserve system did
not contain any explanation at all
concerning the method by which money
would be made easier at this time, nor
the exact time when the rediscount
rate. which now stands at Az per cent
at the New York Federal Reserve Bank,
would be lowered.
1t is not unlikely that the Federal
Reserve Bank of New York will lower
its rate to 4 per cent at the meeting
today. The other IL Reserve banks
doubtless will follow the New York
banks lead by reducing their rates,
which today stand in all banks at D
per cent.
An officer of one of the largest New
York banks said yesterday:
Our bank is loaded with money.
We have more than we can use. We
bought $25000,000 worth of Liberty
bonds and short term obligations today,
at low rates of interest. There's plenty
of money available for industry today
at rates lower than have existed for
year"
President Hoover's sustained prosper
ity program is bearing fruit.
The combined earnings of no two
other corporations in the world have
ever totaled so much as has been
earned on the common stock of the
United States Steel Corporation since
it's organization on April /, 1901. No
corporation has ever had such record.
Think of net earnings of $1,952, 681 1853!
An average of more than So share for
% years on the S13l,07l shares OUT
standing at the end of the last quarter.
And the last few months have shown
just as much strength in earnings as
ever In fact, more. The nine months
ending September 80, last, showed
balance for the common stock of $l28,-
571, 900. This was equal to 1882
share on the common stock, far above
the average since the beginning. 1t is
expected that the common stock of this
corporation will earn between $19 and
$50 share for the entire year of 1929.
fCopyright, 1929, by North American News