The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917, 1917-06-22
RAILROADS SEEK
LOAN FROM US.
OF 500, 100000
Equipment Interests Sug.
gest Expenditure for
Freight Cars

Il New York. June ga plan ipvolv-
ing the granting by the United States
government of loan Of s2oo.ooo,0oo
to the railroads of the country, the
money to be used to finance the pur-
chase Of the 100000 freight cars ur-
gently needed to relieve the shortage
aIof rolling stock. it was learned here
yesterday will be laid before the prop
Yer officials at Washington by one OF
the leading interests in the railway
Equipment industry.
A representative of this equipment
company in discussing the proposal,
said that loan OF this amount on
y. 8 1-2 per cent. basis would go a long
way toward solving the car shortage
fdiff1culty 1t, was pointed out that
els matters now stand the railroads
are not in position to borrow on a
favorable interest basis the $200, 000,-
900 required to finance the building
of the cars. In the event that the
government should adopt. this'p it
Is stated that an arrangement could
be made whereby the railroads could
pay back the loan by laying aside
certain amount out of the per diem
earnings OF each of the 100000 cars
1T is expected that the railroads
will eventually get the equipment,
reithers by the government having the
cars built for itself and renting them
out to the roads or through the me-
dunn of the suggested $2oo,000.000
loan.
In the event that the orders for
100000 freight cars are placed at
once, the manufacturers say they are
In . position to turn out the finished
product, ready for use, by January ]
next. prOvided that steel and other
materials can be obtained and de-
livered on time.
The extent to which the industries
of the country are being handicapped
by the lack of cars was indicated yes
terdaw when 1T was learned on the
highest authority that the United
States steel Corporation and other
large producers OF iron and steel have
lately contracted for their own account
for the manufacture OF large numbers
of freight cars, to be used in carry
ing their raw materials and finished
products The steel manufacturers,
It was stated, had been compelled to
take this step in order to insure a
Reasonable certainty of getting deliv-
cries.
1Cost of railway equipment has risen
sharply since the war broke out. A
freight car that could be built for
$1,000 In 1914 now costs $500. AS an
example Of the high cost of freight To-
comotives today compared with what
they were three years ago, R. s.
L6vett, chairman of the Union Pacific
raalroad, yesterday cited RECEIPT in
eoident. He said that the company en-
tered the market for a locomotive of
heavy type and found that it would
cost $40, 600. against a price Of $40, 500
in 1914. This price being considered
prohIbitive, 1t was decided not to pur-
chase.
Mr.. Lovett came out strongly against
the proposal of the Federal Traffic
Commission that the railroads be op-
Grated on government account
st5overnment operation of the rail-
roads is wholly unnecessary" declared
Judge Lovett- IT don't see how the
government can increase the efficiency
Of lines which are already SO co-ordi-
mated that it would BE extremely diff
cult to improve their operation.
PCT tn that there are great many
a6fher Things the government can do
The whole question is that OF cars
The railroads need more cars, but they
cannot be taken out of the air, OF
course II. the government could get
cars faster than the railroads, that
would be q good thing"