The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-06-18

hard to see; 1t costs nothing to hold
car as long as 1t Is not moved, but as soon
as II huNes. lineage accrues. 50 that under
the mileage system there Is practically a
penalty Tor moNtus cas-. Again, there have
pcen few cases where for one reason or
another correct mileage mas not been re-
ported TO the owners Of ears.
From this state of things there has
grown up method OF dong business,
rounded on the TACT that when a car Is
staining stil IL costs nothing, except to
tne owner. The owner cun not avoid In
terest on bis investment. the owner can not
avoid the depreciation on the car as the
days 80 By, and the owner Of the car when
ne gets 1t back, Is responsible for all re-
pairs excepting mere running expenses,
but this does not trouble the Spectator,
VINO prefers TO do a business by stocing
ms goods Ia ears rather than 20 10 the eX-
pense OF building warehouses There are
several branches Of trade which can be
conducted with some success with practi-
caiiy no capital, because, under certain cir
eulAstances, u has been quite practical to
hoid goods Indefinitely la cars, with 10 vX.
pense to the trader
This puts n cou siderable expense on the
railroads, whose cars are largely away from
nome, ana who can not secure other rail-
roads cars in their place. 1T is also to tue
disadvantage OF the railroad which handles
otner railroads cars promptly IL Is TO the
9dIahtage OF the railroad whose equipment
II less thau Is warranted by its husineSs
~ IS 10 the advantage OF the switching rail-
roads ana ferry lines, which pay no mile
-EN at all anu IL is also 10 tue advantage
OF the railroads, the maIn portion of whose
business Is OF terminal nature. The re-
SUIT OF this system has been that Ia the
last year. for which figures have been oh.
tanned, the cars of the American railroads
on other railroads earned their owners less
than II cents day, while the expense OF
keeping the cars up Is at least - or 80
cents a day.
This state Of things bears hardly on the
large car owners all the time, but the
stress Is chiefly felt when cars are scarce.
As general thing railroads do not build
cars to hire them out to other railroads,
so that the amount OF rental received is u
secondary consideration, but whenever cars
are scarce and railroad managers lind that
they nave practically lost control OF their
own cars on foreign roads, and are getting
no adequate remuneration for their use,
they naturally consider whether Of not the
system OF car rental In vogue mas not
something TO do with 1t. Over twenty years
ago, Mr.. Rgley, late car accountant OF the
Baltimore and Ohio railroad, MADE the
point that II payment was made for CAT
by the day, or per diem. there would be an
incentive for the movement of cars on for
eien railroads instead IF the penalty I'M
pied by the mileage rate. The matter was
aiterward discussed by Mr. Shlnu or tue
New York and New England railroad ana
was brought to the attention OF the railroad
societies ut an early date. The Idea was
not fayorably entertained at nrSt, but II
has gathered ndherents from year TO year,
and now very large majority Of the rail-
/ roads OF the country have decided 10 settle
+ Tor foreign cars al the rate Of 20 cents per
I day for one year, beginning July ]. Inc
matter has been thoroughly discussed IN
/ the American Railway association. and a
| set Of rules has been adopted by That body.
These rules, which include the rate Of ~
cents per day, are compromise measures
ana such scattered opposition as they have
/ encountered has been not only from the
railroads who desire to retain the mileage
: system but from railroads which consider
{ the proposed per diem toe low II is
Thought that after the experience OF year
/ that the rate may be adjusted SO as 10
more nearly compensate tue owners OF cars
Tor the outlay involved.
/ LAS has been intimated, the important
feature Of the new arrangement Is that II
puts a premium on the prompt movement
lay. The Importance OF the cnanse VIII ne
. appreciated when We consider that there
nie 10000 of freight cars in the country
| aud that fully one.third OF them are on
foreign railroads all the time. These 90
900 cars are making less than twenty miles
n day II the adoption Of the per diem
results in an improved movement or one
nile a day II viii be practically the same
1 thing as Increasing the cars In the R1untrN
/ by 5000 and as cars nov average uttie
! over $500 apiece. the improvement VIII re-
nit in Sl2, $4,000. Enthusiasts tell Us
that pcr diem will increase the movement
of cars by 50 per cent. IL this Is the case
the value OF the addition to the car equip
ment so gaining would he Sl25,OooOo hut
with the low rate proposed such an I'M
provement can hardly be expected