The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-05-25
Added Terminal Facilities Nov Greatest Need
Traffic Systems Held Unequal Demands and Disaster Threatens
Unless There S Readustment5

ent.
consumed in getting into. out OF o.
through terminal points where there
is not room to handle the cars. More
cars intensity instead of reducing the
trouble. No other business could en-
dure the loss of the use of i.s ma
chine plant for twenty-five hours Out
Of the twenty-four. One thousand cars
will cover nearly eight miles OF track
Each car must be switched, loaded OF
unloaded, or all three. This multi
plies the trackage requirement.
A thousand cars are a flea bite com
pared with the daily movement in the
busy season. The railroads of the
United States carried 1,765,512,OOC
tons of revenue freight in 1912. A.
the average load OF 21.5 tons per car
1t would take S2,116,S37 cars to move
it. Nearly all Of these pass through
some large terminal, most OF them
several times in the year.
There are about thirty important
traffc centers, and If the total move
ment were divided equally between
them, supposing each car to pass
through but one market, and that
only once a year, 1873 cars would
have to pass through each terminal
every day in the year. Five thousand
cars day are enough to create a
blockade in many Of the large term
inals Of the country. Our worst
troubles have come not from insult
fiency in handling it. but from con-
gested terminals.
There is but one possible remedy
enlarged terminals. The main ques-
ton back of that is financial. Where
and on what terms is the money to be
had for an improvement which has be-
come as necessary as the removal OF
a freight wreck from main traffic:
line?
The two obstacles to be overcome in
this readjustment of the Transports
ton agency to the growing needs OF
the country, are the physical difficulty
and the cost.
In some places 1t will be physically
impossible to secure the land area
for proper terminals. The space that
must be used is generally in or near
the business heart Of the city; often
along the water ways, where enter
prise has been busy and land values
have reached their highest point.
M, oro%ov, <1,o .pooa For o,oh torv,,
inals is either not available on any
terms or will cost sums that sound
fabulous. soy
The financing Of new terminals pre-
sents a far more serious problem
than the financing Of new railroad.
Large sums Of money must be raised.
The owners Of capital will not sup
ply them unless they are satisfied
with the security and with the pros
pect for sure and adequate return
on their money.
Wha. security can the railroads
offer for such loan? Already, mere
ly for constructing and operating their
machine, many OF them have
not only pledged their credit to the
limit, but have absorbed a large
share of their surplus earnings that
in other countries would have been
paid out in dividends. And, with the
increase Of their expenses and the
limitation Of their income by public
there is coming to be little
or no surplus revenue that may be SO
Net income, not gross, is
the index OF prosperity and the foun-
dalton Of credit Gross revenues
grow, but expense grows faster.
Returns to the bureau of railway
economics, covering 90 per cent OF ali
The steam railway mileage in the
United States, show that during the
first seven months Of 1912 operating
revenues increased 3.3 per cent per
mile as compared with the same per-
iod in 1911; operating expenses in
creased 40 per cent and net opera.-
ing revenue decreased 0.5 per cent.
The additions of taxes and other in
expenses will raise this fig
ure. The progressive decline of net
earnings per mile under the existing
method OF rate regulation is assured.
The properties OF many systems are
already incumbered to the limit OF
credit and solvency. Securities have
been consolidated, equipment trusts
have placed what are practically chat
tel mortgages on rolling stock, and
money canno. be raised except for a
short term and at high rates. Ten or
fifteen years ago per cent would
bring in capital for railroad improve
ments. Strong properties sold their
bonds bearing 35s per cent interest.
Now some Of the strongest roads are
paying Az per cent for new capital
less well known for stabil-
Ity and earning power pay more The
rate has advanced by from liz to 2
per cent in little more than ten years.
The two noticea bile feat,irac ~ fbn