Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1916-11-16
SOME UNDERLYING FACTS ABOUT THE CAR
SHORTAGE

YNHE present shortage the most serious which
has ever occurred in this country is attributed by
the Railway Age Gazette in editorial in its
issue to the system Of regulation which has been in
force for the last years The freight situation
is deplorable But II is accurate TO say that the
situation with reference facilities in general is de-
plorabe- The railways get all the blame They can
not deliver to the shipper when they do not have
the They get the until the manufac
turers have built them The be built until
they have been ordered. and they be ordered
until the railways have money with which TO pay for
them the last few months they have been getting
the money and they ordering the But takes
time TO build cars. and enough OF them the
rails yet to do much good. Up TO fifteen months
it would have been easy TO get built without
delay; but then the railways did not have money
enough to buy them.
1.-THE essential vice in the policy OF regulation" says
the Railway Age Gazette which contribute
toward the development OF such conditions is that Il
controls the rates OF the railways that most Of them
do not in fat years earn enough money TO tide them
the lean years Consequently, in the lean years
their expenditures for maintenance. and for improve
and Of facilities restricted TO the
utmost in order TO keep them out OF bankruptcy and
they cannot in the Fat years make large enough
vestments in improvements to Offset the heavy re-
trenchments made in the lean years. policy which
does not recognize the fact our policy Of regula-
ton does not that every industry has to go through
bad well good years. but which the contrary
is predicted the assumption that rates which are
barely sufficient for prosperous years will he sufficient
at any time, is bound at frequent intervals give
rise TO such conditions those with which the
try is now struggling
The changes which have taken place in the car sit
uaton are perhaps. best Indicated by the increases
which have occurred in the number OF freight in
service and in their tonnage capacity The statistics
OF the Interstate Commerce Commission regarding the
tonnage capacity Of begin with the 1903 The
period from 1908 up 70 the panic in October 1907
Of rapidly business and large purchases
OF equipment Most of the vast number OF
dered in 1907 delivered in the fiscal year ended
June 80 1908 Therefore, the hve-year period from
1903 1905 affords an instructive basis for compar-
The increase in the total number Of freight
in service in that five years 435,52O and the in
crease in their tonnage capacity 24,133,8S4 tons
Since then the railways have had years OF good
business but OF them have been bad, and there
fore there a heavy decline in the orders for
equipment This is reflected in the statistics Of the
Interstate Commerce Commission Between the end
of the fiscal year ended June 30 1905 and the end OF
the fiscal year ended June 30. 1915. the increase in
the total number Of freight cars in service was only
229OO3 This 2O6517 less than It was in the
preceding five years. The increase in the tonnage
pacity OF the in service only 193lS7S7 tons
This 4,S14.597 tons less than il in the pre-
ceding five years
In spite or the fact that the increases in the mum.
Der and capacity OF freight the seven years
ended with 1915 were much less than in the preceding
five years this latter period OF seven years was al
most constantly OF SURPRISES Even
late August 1. 1915 the net surplus OF freight
cars in the United States 264.243. Then with
amazing suddenness came the big increase in traffic
with which the railways have been struggling ever
since
The statistics OF the Railway Age Gazette show
that in the first months OF 1915 they ordered only
677S1 cars, while in the corresponding months OF the
calendar year 1916 they ordered S9323 In the
ended November A. 1916. all records for the year
broken. when the orders for freight aggre-
gated 1903.
Unfortunately, says the Gazette. the number OF
being ordered is indication OF the rapidity
with which the present acute situation will be re-
lieved. In the first place, the manufacturers
deluged with orders that It will be many months be-
fore they will be able Ill those they already have
and in the second place the present trouble is not
merely a shortage OF cars but a shortage OF trans
portaton facilities OF all kinds. The term car
shortage" is now as always. merely a misnomer used
to describe condition resulting from the inability Of
the roads supply facilities enough OF any kind to
handle the business available.
Il is a significant coincidence that the country is
confronted with the car shortage and conges-
on Of traffic in IFS history just when the NewIands
committee is getting ready TO begin its investigation
Of the entire subject OF regulation OF railways. The
best evidence OF the need this investigation is the
present traffic situation It is not only natural but
inevitable result OF the policy that has been fol
for years. and unless this policy is reform
ed crises such the present going to be-
come frequent and violent.
President Wilson has decided definitely that Novem-