The Birmingham age-herald., 1915-10-29
MUST AL[OWROADS !. ID FINANCE NEEDS |NLARGE AMOUNTS Had This Been Done in Past There Would Be No Con-
 gestiOn Now
SAME CONDITION
 EIGHT YEARS AGO
Was First Indication Then of Impend- ing Disaster-No Hint of Panic Now, But Experts Keep
 Grave Eye to the Future
By HOLLAND

New York, October 2s.-(Special. )-In
 August, 1907, almost the first evidence of
 the impending crisis which culn.nated in the October panic of that year was the congestion of freight, chiefly grain from the West, at Buffalo. The elevators and the warehouses were so densely packed
 Wlth commodities awaiting transportation
 to seaports that it was not possible to re- ceive any more until the congestion was ended. The railroads could not move more than a comparatively small part
 Of these commodities because they did not possess the cars and the equipment
 1hey were not in possession of cars and equipment because they had been unable to optan money with which to supply themselves with these transportation fla cliltles They could not obtain the money
 because there was a nation wide agitation
 whlch directed criticism against the rail-
 roads and which was represented in both state and national legislation.
 Flight years later, condition some what similar so far as congestion is con- cerned, prevails, but it is not spoken of as evidence of an impending crisis. The rail- roads, especially the trunk lines now find themselves occupied to their capacity in moving various commodities, grain and munitions Of war, to the seaports whence they are to be exported to nations across the sea. Sometime i'll July Howard FL
 1ott, president of the New Haven Rail- road company. speaking informally and almost con1dentially, said he looked with some apprehension to the mid autumn be- cause he was fearful lest the railroa ds would be unable to handle, speedily and sa1ely, much of the freight that would be oHered to them. President Elliott's ap- prehensions have been in some measure Justified His own railroad company is driven to it's capacity to haul munitions Of war from the New England manufac- turers to the seaports. This railroad is, carrying every day literally thousands of skilled artisans and workmen for whom places at good wages are open In the New England factories
 Had the railroads not suffered greatly from lack of ability to finance their neces- sities and to perfect their equipment and to secure adequate terminal facilities this unparalleled offering of rreight-in magni- tude never experienced by the trunk lines-would have been handled with com parative ease. The situation shows what the United States must expect within the next eight or ten years unless the rail- road companies find it possible to finance in large amounts their needs The Penn syivania railroad management has several times pointed out the danger which con gestion of freight will create after busi- ness prosperity has returned to the United states. unless the railroad companies are able to secure money needed to perfect roadbeds to lay additiona, tracks and to secure adequate terminal facilities.
 What is true of the railroads is also true of the steamship companies. The years of famine almost which the owners of tramp steamships have, until within five or six months, experienced have be- come instead q time of highly profitable business. This is true both of the At lantic and Pacific coasts. Every avaif- able steamship is under charter ,and in California it has been found impossible to export cattle. for which there is a large demand and dried fruits although the demand for this commodity has fallen off, because there are no steamships to take the freight
 Tho condition in which most of the trunk lines now find themselves is sim liar to that which has for some years prevailed for three or four months in the winter upon the railroad which the late Henry M Flagler built in Florida The movement of fruit and of early vegetables and other early food products from Flor ida and Cuba north and west has been so great that delays were inevitable and pa ssenger traffic almost always was held up for three or four hours, sometimes for half a day. At the time of MT Flag ler's death he was preparing to relieve this congestion by substantially double- tra clSing the road and also by building another line along the backbone of the Florida peninsula. Mir. Flager was in position to command all the money he needed for Improvements, and the legisla- ture of Florida did not fail to give him all the support which he asked for.
 The reports which come from the rail- reads are indirectly confirmed by the au- tnoritative statement made by the subor- dinates of Secretary Redneld of the de- pc rtment of commerce at Washington.