New-York tribune., 1907-01-03
CAR SHORTAGE CAUSES.
COMMISSIONERS REPORT.
Demurrage Lac Not Thought Com
plete Remedy for Trouble.

Washington, Jan. 2-The probable causes of
the car shortage in the Northwest and the con-
sequent coal famine in North Dakota deter
mined by the members of the Interstate Com
merce Commission who took part in the recent
/ hearings at Chicago and Minneapolis are set
forth in report of Franklin X. Lane, who
served chairman of the investigating commits
sion. He filed his report with the full commits
sion and sent it to President Roosevelt, who
ordered the inquiry to-day AS to the causes
Of the shortage he finds:
It is fair inference from all the testimony that
the real cause of the coal scarcity in North Dakota
was such abundance of westbound traffic at
in the @ ae eof of h1 rna for the
carrying of coal to North Dakota. a comparatively
| snort haul for a low class commodity.
In his letter of transmission to the President
] Mr. Lane says that the report will be followed
! In due course by the special recommendations
of the commission as whole to whatever
| legislation, If any, may be deemed advisable.
Referring to the charge that the coal shortage
! was due to the presence of a trust or combina-
| ton between dealers in coal that fixed prices
in the Northwest and refused to sell TO ''outsid
ers' and ''irregulars," the report says:
The commission has gained indsputable proof of
! an agreement between coal dealers to maintain
there is evidence ali tustifying the contention
| that this combination is chargeabe with the coal
shortage prevailing. nor that the railroads were
party In any way TO such a conspiracy
The report of the Commissioner first deals with
the coal famine in North Dakota and presents
the conditions of distress found in that state.
Proposed remedies are dealt with extensively.
particularly those which can be effected by the
railroads or the shippers as we'll as those which
may be considered proper for Congressional ac-
ton. including the evils arising from the recon-
signment privilege warehousing in cars and
from appropriation of cars by foreign lines The
remedies which the commission purposes to work
out deal with rules and legislation touching the
matters complained Of. we'll as a proposed
plan for a car clearing house or car pool and
reciprocal car demurrage.
BIG FINANCIAL LOSS CAUSED
Financial loss to a large percentage of the
people of the Northwest is shown to have been
caused by the failure of railroads to prepare for
a large movement of grain. Mr.. Lane shows
that the railroads tapping the great grain belt of
the Northwest seem TO have been overwhelmed
by this years crop, although in fact the crop
scarcely exceeded that Of 1905. nor did 1t equal
that of at least one other preceding year. OF
this situation the report says:
Fifty million bushels of grain. as nearly as can
be estimated. remain on the farms or In the
the crop has been shipped The country or line ele
yators at large number Of country stations are
September and still contain the grain they then
held. Thousands OF bushels of wheat lying at
this time covered with snow in open bins built be
/ side the railroad track The farmers cannot sell
try dealer buy because the country elevator
i ~ iuI. Ire Country elevator remains Iu because
The railroad has not moved the grain from the
country elevator to the terminal elevator The ter
minal elevators at Duluth. Superior and Minneap-
Oils which act as great reservoirs Tor the line ee-
yators, are almost empty. and at no time during
third of their capacity
The situation was explained by President
Elliott of the Northern Pacific who said that in
attempting to handle the freight offered they
were trying to force Il three-inch stream through
"a one-inch nozzle and President Hill of the
Great Northern declared that his railroad as
well as others, was endeavoring to bore one
inch hole with a half-inch auger.
In considering the evidence taken Commits
soner Lane says that plan for proposed car
clearing house, n pool between connect
ing lines. is regarded with much favor. The
details of such a plan have not been worked
out. The appropriation of of other lines
by carriers is treated at some length and a
rule is suggested fixing a minimum of 30 cents
day charge for each car appropria ted dur
ing those months of the year when traffic is
light, and increasing this possibly fourfold dur
ing the latter half year. when most
needed.
The most generally advocated remedy for the
failure OF carriers 10 1UrnlSn cars Wnen demand
ed is known the reciprocal car demurrage.
This phrase means that carriers shall be penal
lied for failure to furnish cars demanded. and
ii arises out of the universal railroad practice
OF imposing per diem penalty when is
held by a consignee for unloading beyond
certain fixed number of days OF this plan the
commissioner says that 1t is evident that the
principal difficulties would not be overcome by
the enactment of a reciprocal demurrage bill
alone, If such measure merely provided for pun
ishing the railroad for non placing of or
non-movement thereof
PROBLEM A DEEP ONE.
Mr. Lane sums UP the opinions of the COM
mssioners as follows:
much broader than mere lack of cars and engines.
1t is in which is involved every factor in rail-
roading-the construction, the operation, the main
tenance and the financing OF the railroad The IN
ability OF the shipper to secure car may be but
symptom OF a deep seated and organic trouble.
The real of shortage may lie in the
conservative character of the management of the
road, in the unfftness and incompetency of it's
operating officials. 1t may flow from an incompre-
imposed by law upon common carrier. 1t may
arrive out Of policy in railroad operation which
operations. Ii may from an inability to secure
funds TO fit itself that 1t discharge its duty.
1t may follow In time of exceptional prosperity
from an increase in traffic which could not reaSona
bly, have been anticipated. Or II may result from
inabtyeto secure labor and materials necessary
10 the proper cuarging OF the railroads facilities
This enumeration of causes is not exhaustive.
II could not we'll be complete without giving cen
sideraton TO many industrial and economic factors
related. Clearly the problcm of transportation is
so closely interviewer with the fabric OF our COM