Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-19
PUBLIC BUILDING
WILL AID INDUSTRY
Hoover Conferences Expect.
ed to Revive "Prosperity
Reserve" of Nation.
BY JOHN r. SINCLAIR.

BY JOHN r. SINCLAIR.
Special Dispatch to The Star.
NEW YORK, November 19-Leadini
industrialiSts, bankers, 1agriculturists o
the United States move onto Washing
ton this week to attend the importan
White House conferences on business
Since President Hoover's inauguration
a great deal of additional material deal
ing with the prosperity reserve" has
been compiled
How far can the Government go ir
helping to stabilize business activity
Just what can government, moving ir
close cooperation with business leaders
do in the matter?
The President has already given q
hint. He says "the postponement OF
construction during the past month, in
Guiding not only building railways, mer-
chant marine and public utilities, but
also Federal, State and municipal WORKS
provides substantial reserve fol-
prompt expanded action"
He will confer at the White House
with important railroad executives
banking and industrial leaders and
farm leaders.
The problem is not as simple as 1t
appears. Many cities are oVerbuilt. An
increased program in those places
would hurt rather than help. But other
activities are challenging!
In the field of good roads, 16 States
of the union curtailed their road pro-
grams and spent less in 1929 than last
year, according to the American Motor
lists Association. In this field, the con-
struction of permanent roads Is not In
creasing as rapidly as the number Of
automobiles.
Nearly 2,5o0,0o0 miles of unimproved
dirt roads will exist in the United
States, and nearly 100000 out of the
100000 farms are on these dirt roads,
according to Sam Thompson, president
of the American Farm Bureau Fedora
ton. In the development of national
permanent road system the job Is far
from completed.
This is but one field Prosperity has
never been a permanent condition. It's
a heeting thing. Can it be made more
permanent? The President thinks it
can. Hence these conferences.
One writer puts it this way: Pros
perity is the product of ideas. It Is
made BY men who think. It can be
maintained only by creative thought"
A gigantic railroad battle, involving
three great railroad systems and
smaller pne, is looming up in the West.
Last Spring the Great Northern
Commerce Commission to build SO miles
of line from klamath Falls, Calf, to
Bieber, Calf At the same time, the
Western Pacific asked the commission
for permission to build 112 miles north
from Keddie, Calf, to meet the Great
Northern extension. The total cost for
both extensions is approximately
$1300O,O0O.
The Southern Pacific and the Union
Pacific protested loud and long. 1t
would seriously affect both Of them,
they contended.
Arthur Curtiss James of New York,
large stakeholder in both the Great
Northern and the Western Pacific, is
behind the move. The Great Northern
has had its eye on California for many
a year. This move, If allowed, will
permit the Empire Building, the crack
Great Northern passenger train, to run
through service from Chicago by way
of the Twin Cities and the Northwest,
direct to San Francisco. And the Twin
Cities will become another gateway to
California.
Travel figures show that last year
California travel by way of the North
west increased over 20 per cent.
The commission will be criticized no
Southern Pacific has always had prac-
tical monopoly in rail shipments from
California to the Northwest.
Many more titanic moves on the
Western railroad checkerboard are de-
veloping. for the stakes are immense.
Charles s. Mott. vice president of the
General Motors Corporation, must be a
most unusual man. He 1t was who adj
vanced personally the $685., 900 which
certain officers of the Union Industrial
Bank Of Flint, Mich, had>taken from
the bank and lost in the stock market
smash.
1t now develops that when Mr.. Mott
first heard about the bank shortage,
1t was estimated to be about 100000.
A Detroit banker suggested that each
director be forced to contribute his stock
and his share quota to save the bank,
but Mr.. Mott objected, saying that they
were not In position to do it. So Mr..
Mott himself put up a million dollars
Of his own securities to protect the bank.
A further checking revealed that the
shortage instead of $800, 900 had reached
$2.o3S,000. A heart-breaker for even a
big man.
A few days later, the total shortage
was found to be $3,592,O00. SO Mr..
Mott, without a moments hesitation,
added enough cash to make up the
entire sum.
Doubtless some of this will be saved
In the proceedings now being carried
on. but the net loss will be large.
When asked why he took 1t upon
himself. Mr.. Mott said he could not see
'Flint's baby bank get into difficulties
and permit losses to come to my
friends"
Copyright, 1929. by North American News
DaDer Alliance)