The Birmingham age-herald., 1909-11-15
RAILROADS FACE
 SHORTAGE IN CARS Heavy Traffic Movement
 Causes Excessive Demand RESULT OF PROSPERITY Reports From All Sections of the Nounfrx cboAu Acfiua Rucftaaec Con
ESULT OF PROSPERITY
Reports From All Sections of the Country Show Active Business Con- ditions and Immense Business
 Done by Railroads

Chicago. November 14-(Speeial.) )-For the first time in two years the railroads of the United States are face to face with a net shortage of freight cars for the transportation of the immense crops of the western states and the almost unprecedented movement of traffic of all kinds which has set in during the last few weeks in the general revival of prosperity.
 By net shortage Is meant that the ex- cess of cars required by the shippers in all sections of the country over the num- Der which the railroads have been able to furnish is greater than the surplus of cars reported by the railroads in other sections of the country.
 The figures embodied in the latest fort nightly report of the committee on rela- tions between railroads of the American Railway association show the total short age is now se,636 while the total sur plus is only sO,S96 leaving a net shortage of 5740
 Reports Cover Country.
 This committee. which was appointed after the great car shortage of 1906 to compile statistics which would lead to more efficient use of freight cars. re- ceives regular reports from every ship ping point in the United States.
 The vast change which has been brought about in the business and traf fic condition of the country since the panic has no better illustration than a comparison of the figures denoting the present shortage with those for April, 1908, when the railroads had more than 100000 idle freight cars, representing a total investment of approximately s4OO- in yards, while nearly 100000 more were estimated to be in the shops undergoing repairs. As recently as July of this year the surplus was 24S,S54
 The encouraging feature of the show ing is that while the railroads probably are now carrying as much tonnage as in the boom days of 1907, and although the surplus has been reduced in the last two weeks. the reduction is the smallest of any fortnightly period since July.
 The surplus left now is considerable, while for the same period of 1907 the surplus was absolutely wiped out and
 
 Heavy Buying of Stock.
 The main explanation for the fact that the shortage is not greater is that during the last few months the railroads have been buying cars and engines by the thousands and because the car manu- lecturers had been doing little business for year they were prepared to turn out the orders in record time Improve ments in operative methods and increases in facilities have also made 1t possible to get more service out of each car.
 In 1908 the railroads bought only 79,000 cars, while the number scrapped each year through wear and tear and becom- ing obsolete exceeds 100000. During the summer and fall of this year some of the roads placed orders for 10000 to 20, 900 at a time and a recent order for new equipment for the New York Cen tral lines alone amounted to s25, ,o00,0 900.
 A study of the figures fin the car bull letin issued by Arthur Hale. chairman of the committee, discloses that of the total present surplus 14,596 cars or nearly 50 per cent are held by the roads in what Is known as group 6, which com prises the states of Iowa, Illinois, Wis consin, Minnesota, North and South Da- kota.
 This is largely duo to the fact that every car which could be moved was sent west at the beginning of the crop moving season. The principal shortage is in the east and middle west and is caused by the demand for coal cars. Many bitter complaints have been made to the roads and to the interstate com merce commission by the coal operators because of their inability to get cars.
 Difficulties Are Encountered.
 Shippers are inclined to ask why the surplus of 15,O00 cars in the northwest is not moved down to fill the shortage ill the middle west Railroad men an- swer this by saying 1t is impossible al ways to place the cars where they are most needed at the exact time when they are needed.
 Another and perhaps more illuminat- ing reply to such a query is suggested in some quarters, that at least a part of the reason comes from the fact that the per diem" rate between the rail- roads, or the rental paid by one road for the use of another's cars in inter change is now only 25 cents a day.
 Two years ago, when there was prao- tically no surplus, the per diem rate was 50 cents.
 The railroads found 1t worth while to give their surplus cars to their needy fellows at 50 cents day, whereas they might not find it worth while at 20 cents It is understood, however, that the roads in the American Railway association arc planning to increase the rate, which will make it more profitable to interchange cars.
 In the meantime the experts who com pile the shortage and surplus car figures are inclined to believe that the worst of the situation is passed