Evening star., 1929-11-26
Assurances of Support Come
From All Groups Invited to
Conference Here.
GOVERNORS PLEDGE AID
IN CONSTRUCTION DRIVE
Labor and Capital Effect Truce.
President to Follow Up Action
He Has Begun.
BY G. GOULD LINCOLN.

President Hoover is greatly encour-
aged by the results of the conferences
which he initiated with representatives
of industry, agriculture and labor 10
days ago for the purpose of stabrizing
business conditions and for the extern
sion Of construction and industry
throughout the country.
Assurances of support have come
from all the groups which were invited
to the White House to confer with the
President and from the governors of
the States to whom the President sent
an appeal to cooperate in the move
ment to keep industry and employment
at high level through the period Of
readjustment, following the recent
tpmbling Of stock prices.
Same Wages Assured.
Outstanding among the results OBJ
tanned is the assurance given the Presi-
dent by great employers Of labor that
there will be no effort at this time to
reduce wages, and q similar assurance
given by the heads of the great labor
organizations that they will not at this
Time undertake q campaign for increases
in wages. Wages generally are on
high level. Henry Ford, one Of the in
dustrial group summoned to the White
House, announced that instead of re-
ducing wages, he proposed an immedi-
ate increase in the basic wage which he
pays his 10000 employees.
The industrial group and the heads
Of great commercial houses told the
President that the outlook for business
was generally good. They are planning
extentions of plants and further de-
velopment of their businesses. Included
in this group were heads of the tele-
phone system and of the great electrical
manufacturers, as well as the producers
OF steel, automobile and Americas
merchant princes"
Big Rail Expansion.
The railroad group has informed Mr..
Hoover that the railways systems are
going forward with even larger con-
struction and developments Of their
roads than during the present year.
The administration, through the ini-
tiative of President Hoover, has itself
adopted program which will 90 far
toward aiding the movement for sta
bilization of business. In the first place,
it has planned reduction Of income
taxes for individuals and corporations
to be paid during the coming year. The
President will recommend to Congress
nat reduction Of the normal income tax
rates by per cent, applying to individ-
uals and to corporations. This will re-
duoe by $16o,O00.OOO the tax bills c:
the people.
Secondly the administration viii pro-
pose an increase Of $l75,00O, 900 in the
funds to be used for the construction
Of public buildings.
Award Of Mail Contracta
Thirdly, the administration has an
nounced that the Government will 90
forward with the award of ocean mall
carrying contracts, totaling about SlO,-
100000. The award of these contracts
to American shipping lines is expected
to bring about the construction of a
large fleet of new ocean liners, costing
approximately $250,000,000. Such a
program VIII give great impetus to
shipbuilding in American shipyards,
with consequent increases in employ
ment Of labor.
Government aid in the construction
OF the vessels is availbale through the
$3.50, 100000 fund established by the
JoneS-White law to assist in the expan-
sion OF the merchant marine. Ship
builders can borrow at low interest
rates from this fund sums up to rs per
cent OF the finished cost of the vessels
contemplated
The President, it is understood, will
also have the assistance of the public
utilities group in the effort to mobilize
all the resources of industry and labor.
Representatives of the utilities are to
meet in New York and formulate their
plans, which will be transmitted TO the
President for his information and for
announcement to the country.
VIII Pursue Policies.
The President intends to follow I'm
In every way he can the movement
which he has now set so successfully
on foot. He will attend a conference
here on December of industrial and
commercial leaders which has been
called by President William Butter
worth OF the United States Chamber of
Commerce and Julius Barnes, Chairman
of that organization. Out of this gath
ering 1t Is expected that a more or less
permanent organization will be devel-.
oped, to act in an advisory capacity
and also to help coordinate the forces
OF industry In the forward drive for
business.
The last of the series Of conferences
which was arranged, that with the ag-
ricultural group, was held yesterday aft
ernoon.
Out of the farm conference came a
statement, sponsored by Secretary Hyde
of the Agriculture Department, that the
Continued on Page 2, Column 81