The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1920-05-31
New Capital for the Railroads
An absolute Immediate Necessity

The country is now paying the price
alleged.
of the policy of repression which
dates back to 1911.
Testimony was recently offered in
washington by railroad executives
showing that s610,O0o.000 of equip
ment is needed at once II the carr
rlers are to give good service. These
estimates call for
900 freight cars costing .ss7o. ooo, 600
5000 passenger cars costing, 10000. 900
1000 baggage cars costing.... 1900. 900
2'ooo locomotives costing. -. 130, O00. 200
Between 1905 and 1916, $50. 500 new
freight cars were put in service
annually. while $4,000 TO $4,000 were
retired each year. In 1s17-1sls-lsI9
new cars averaged less than Toe, 900
per year. In the decade prior to the
war 3.100 new passenger cars were
added to the equipment list annually.
In 1918 only 131 new cars were de-
livered. and In 1919 only 2e2. BY a
similar calculation 1t is demoisNa-
BILE that there is a present shortage
Of 5000 locomotives.
The necessity Of getting maximum
service out of existing equipment
prevents proper maintenance. In
August, 1917, IL per cent of the
freight locomotives of the country
were in bad order. In January, 1920,
2I.3 per cent were non-seryiceable.
Complaints are also general that
freight equipment has seriously de-
Perforated during the Federal con-
troll period.
The Transportation Act appropri-
ated S30O.000,000 to be used for the
purpose of enabling the carriers
properly to serve the uhlic during
the transition peFiod Immediately
following Federal control. The
trainers of the legislation believed
that the other provisions Of the act
would restore credit sufficiently to
enable the stronger companies to
finance themselves and that this
fund should be largely reserved for
the weaker roads. In view Of the
urgent demand for increased facili-
ties the proposal has recently been
made that an additional $500, 600, 900
to $50O,OOO.OO0 be appropriated
While 1t Is perfectly true that the
United States could scarcely invest
money to greater advantage than by
assisting the railroads, it Is also
true that such further appropria-
ton cannot be justified IL more
burdensome taxation should result
! The Government already owns 1854
| 000,000 OF equipment trust certifi-
Gates and $4,000, 600 of additional
debt evidenced by bonds or notes;
If the $300,O0O.o0O appropriated by
| the Transportation Act is also in
vested forthwith in railway loans
/ the Government will hold approx
mately S1,1OO, 5000 of the railway
securities of the country.
| The Railroad Blockade.
! Railroad transportation curing
! the past north or so has come
| oerilously close to a complete
1 breakdown. The shortage of IA
cilities described above is only in
part responsible. The so called
OUTLAW" switchmen's strike. in
/ tersifying tho shortage of mau
power on the roads. is far more
to blame. Western shippers were
so reused that 4 delegation appeared
! liz Washington before the House
and Senate Committees on Inter.
state Commerce. They testified tina,
there are $4,000. 900 bushels Of grair
of last years crop in country ele.
vatOrs which cannot move into con.
sumption because cars arc rot avail,
able. They also reported that Their,
Is today a large amount of grain
in the terminal elevators in Min
neapolis that was sold for expor
, as long ago as last December. The
general manager % short line
railroad in Texas testified that OF
the Rio Grandc within the pas,
sixty days formers have lost. &C
cording to calculations. over 81,
.! 100000 on cEbbages and rotatoo.
which rotted because there were NJ
cars From the PittsbUrg distric
comes the report tfat 100000 ton!
IF fabricated steel lave accumu
lated in tbs mills.
1t is also said that a carload o
steel which left Pittsburg Januar!
a arrived in New York May Il
Motor trucks have been utilized I,
a considerable extent, but the in
creased expense. which must ulti
,mately fall on the consumer. 4
enormous. One shipper who en-
gagged three trucks to send a con
signment of goods from New Yorl
to Pittsburg found that the cost o
such transportation was cents
pound. or about twenty times tn,
railroad rate of less than l cent
ton mile. That the railroads hav,
appealed to the commission to eX
ercise the emergency powers grant
ed by the transportation act is n,
confession OF the failure of privat
arrangements to make Eood-as
few newspapers that have for year
tried to foist government owner
ship on the country have prompt.