Evening star., 1932-08-27
BUSINESS EMbARKS
ION S|X-PO|NT PLAN
Hoover Conferees En- Route
Home With Program to y
Create Work.
Continued From First Page.)

Continued From First Page)
by industry in the way of replacement
of obsolete and worn out equipment
Chairman. A. W. Robertson of the
Westinghouse Electric Co.. Pittsburgh.
A. Increased employment through
sharing work movement. Chairman
Walter G. Teagle of the Standard Oil
Co. of New Jersey, New York
S. Possibility of stimulating repair
and improvement of home movement
Chairman, Sewell Avery, OF the United
States Gypsum Co.. Chicago and c. M.
Woolley of the American Radiator g.
Standard Sanitary Corporation.
s. Organization of committees in the
several districts to assist home owners
with maturing mortgages.
Central Committee.
The Central Committee to coordinate
these activities includes Secretaries
Mills and Chaplin, Jackson E. Reynolds,
president of the First National Bank of
New York; Mr.. Robertson of Pittsburgh,
Eugene Meyer, governor of the Federal
Reserve Board; George L. Harrison,
governor of the Federal Reserve Bank
of New York; Atlee Pomerene and c.
A. Miller. chairman and president, re-
spectively. of the Reconstruction FL
nance Corporation: Franklin w. Fort.
chairman of the Home Loan Board, and
Robert P. Lamont. former Secretary of
Commerce, together with the IL chair
men of banking and industrial commit
tees.
The conference worked out its pro-
gram at an afternoon session and then
went into an open forum at which the
business leaders frankly discussed the
problems confronting the country.
Democrats and Republicans joined in
the call to action and lined up side by
side in the organization to carry into
effect the program.
One of the principal addresses Of the
afternoon session was made by Mr.. VIII
lard He revealed that his roads board
had voted an expenditure Of $4,000, 900
to be financed by formula" worked
out by the Reconstruction Finance Cor
poration in supplying funds for further
repairs and replacement against future
needs of rail systems.
The repairs thus to be financed. he
declared, were not needed at this time
and may not be needed for some time
to ccme, but then again they might en-
able the railroad to take better advan-
tage of a business upturn when 1t
comes
Prompt Jobs for 1000.
The immediate effect of the expen-
diture, Mr.. Willard declared. would be
to give employment to 1000 men and
women for period of six months.
IF all the big railroads in the coun-
try would adopt this formula and plan
expenditures accordingly, it Is possible
that 10000, 10000 or even $4,000 men
might be called back to employment. "
he said.
He emphasized that fully two-thirds
of the Baltimore e. Ohio expenditure
would be for labor.
Several carriers. he said. we're con-
sidering availing themselves of the Re-
construction Finance offer. but some
were holding back because OF so-calleo
questionable economics involved.
Some contend that it is uneconomic.
he said. We'll, it might be uneconomic
and again it might be very economic
1t might provide a good investment
But there are other considerations.
Sometimes / think we are slaves to
economies. There is another factor
that is of equal, if not greater. import
ance-the human side. No government
can endure with 100000 to l2,o0O.0OC
of it's citizens out of employment, VIII
no money to take care OF themselves
and their families. So We nave ap-
preached this proposal, not only WIFE
the view of an economic investment
but with a view to general unemploy-
ment relief in this crisis"
The railroad official estimated tnere
were approximately 100000 ralroao
employees out of work. total OF ,UuU.
900 are employed on some OASIS ne
said.
This proportion of employment In
our industry is something that we can
not overlook" he asserted.
Mr.. Willard did not disclose Wnat
the formula" might be.
He mentioned, however, the proposal
of the Reconstruction Finance Corpora
ton might finance requirements or
purchase of new equipment, with the
understanding that the cars and en-
eines would not be used until the Sc
curities on which they were purchased
had been paid for"
Explains Credit Program.
Mr.. Houston announced that the
eouipment companies had agreed to
make a portion of their payments In
Junior equipment trust certificates and
would pledge them as additional col
lateral for loans by the r. F. c., Sc
cured by senior trust certificates.
On the trust certificates the r. F. G
will advance funds to cover as much
as 80 per cent of the cost to railways OF
equipment purchases, he said. Through
this credit program he explained that
it is expected that the railroads will
adopt replacement policies and plan for
future needs, thus helping to stimulate
industry generally and providing in
creased employment.
Mr.. Robertson, who is to organize a
SUBJ committee to induce industry to
carry out replacement program, told
the conference frankly that business