The Hoover Week

Last week President Hoover gave what he called "most serious attention" to the railroads and their financial plight. Anxious bondholders were telegraphing him inquiries as to measures and agencies to help the carriers earn their fixed charges ''across the trough of the Depression." The President assembled a list of all the means of assistance being put at the disposal of the carriers and found their total encouraging. First, there was the Railway Credit Corp. in which, for the benefit of weak lines, would be pooled excess earnings from rate increases. Next there was emergency rail aid to be had from the $500,000.000 Reconstruction Finance Corp., the speedy enactment of which by Congress the President called a most urgent matter." Most important of all were temporary wage cuts.

The brotherhoods had invited the rail executives to confer with them on "wages and employment." The carriers had appointed representatives to accept the invitation and "negotiate to a conclusion" a pay reduction. The roads formally asked for a 15% cut, hoped the brotherhoods would voluntarily accept 10%. Declared President Hoover last week: "It is hoped the conference arranged for will lead to an amicable and early agreement."

The President's hope was materially strengthened when Daniel Willard, president of Baltimore & Ohio, visited the White House, laid before him all the plans and expectations of the carrier executives. For weeks Mr. Willard has been in constant negotiation with brotherhood leaders and no U. S. railman today knows the temper of U. S. rail labor better than he. To the President he said: "I'm confident an agreement will be reached at the wage conference and I'm hopeful for a solution of the railroads difficulties." He explained that $200,000,000 would come from a wage cut which, with the $100,000,000 from increased freight rates, would pull the carriers through. The Willard optimism gave a hopeful fillip to rail securities.

P: "The coffee was delicious, boys!" exclaimed Democratic Speaker John Nance Garner one morning last week as he and ten other important Congressmen came away from a White House breakfast with the President Mr. Hoover had summoned Democrats and Republicans alike to impress upon them the urgency of quick Congressional action on relief legislation (see p. 6). A very black picture of Central Europe's finances was also painted, but the President pledged all his guests to secrecy as to the breakfast conference. That explained why Speaker Garner could only laud the meal as he hopped into a new White House automobile to be driven to the Capitol. To luckless newsmen about the portico, he waved goodbye. "I don't get to see you fellows often. You're up here with all these rich men."

P: Dwight Fillcy Davis. Governor General of the Philippines, called upon President Hoover, disappointed political prophets by failing to announce his resignation. Mr. Davis is on leave "to familiarize myself with United States sentiment on the Philippines." After Christmas he goes to Paris to visit his invalid wife.

P: President Hoover definitely picked Senator Claude Augustus Swanson of Virginia, ranking Democrat of the Foreign Relations Committee, as a U. S. delegate to the February Arms Conference at Geneva. Another likely choice: Assistant Secretary of State James Grafton Rogers.

P: Appointed by the President to the Tariff Commission was Democrat Ira N. Ornburn, Connecticut cigarmaker and union labor leader.

P:The old patronage feud between President Hoover and blind Senator Schall of Minnesota was close to settlement last week (TIME, Feb. 9). As hostile as ever was the Senator when the President again appointed Gunnar H. Nordbye, his political and personal foe. to be a U. S. District Judge. Much less hostile was the Senator three days later when the President followed a Schall recommendation and advanced U. S. District Judge John Sanborn to the Circuit bench.

P: As a U. S. member of the Permanent Court of Arbitration at The Hague* President Hoover last week designated Robert Edwin Olds, onetime (1927-28) Undersecretary of State.

*Not to be confused with the Permanent Court of International Justice ("World Court").

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