The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-01-20
BILLIONS NEEDED
TOPUT RAILROADS
IN PROPER SHAPE
c. H. Markham Says Startling
Shortage in All Equipment.
Big Expansion Necessary in
Terminal Facilities.

III j. ]. Hin could return today and
review the physical condition OF the
railroads and the transportation de-
mands that will be made on them in the
future In the light Of present day con-
dltions OF industrial development and
expansion. he would say that when in
1906 he had made the then startling
statement that an investment of $780,.
100000 would be required TO put the
railroads in shape TO handle the traffic
OF the country, he had been talking like
piker. said e. II. Markham presi-
dent of the Illinois Central railroad.
Tuesday morning at the office OF A. II.
Egan, general superintendent Of the
Illinois Central, shortly after his ar
rival here to speak before the annual
meeting Of the Southern Hardwood
Traffic association.
Five hundred million dollars will not
be drop in the bucket when it comes
TO rehabilitating the railroads TO meet
the traffic requirements of the i'm
mediate future, in view of the great ex :
pansion in Industry that the next few
years win see" Mr. Markham contln-
ued.
"It requires 100000 cars per year to
replace the retirements, The average
life Of n freight car Is rs years, which
with the cars destroyed In wrecks, fire:
and from other causes. makes the an
nual retirement Of cars run to the i00,'
900 mark Last year the government
built 100000 new cars, barely enough
to meet the requirements.
During the five-year period ending
| In 1918, 475,000 new cars were put IL
| service. During the preceding five
year period, $4,000 cars were built. :,
I THE number Of cars that the rail
roads will build after the lines are re-
turned to private control depends upon
| passage OF legislation OF a character
| that will create confidence In the pur-
chaser OF railway securities necessary
| to attract new capital in amounts suf-
| ficient TO pay for the cars that can be
constructed, with due regard to mate
rial and labor conditions.
| But the building Of sufficient roll
ing stock to handle the traffic win be
a small item in the needs OF the trans
| portation systems. The motive power
| of the railroads must be increased In
| like proportions. Then there is the
/ question Of more trackage, enlarged ter
minal facilities and new repair shop:
| to take care of the increased equip
| mcnt.
when the lines are returned the rail
roads are going to ask that they be giver
the same privileges that every othel
business demands, the right to manage
its business and to regulate rates, un
der government regulations, of course
When business man finds that hi
costs Of production have increased unit
he can no longer keep UP his plant ant
make profit at the existing prices, HI
raises the price OF his commodity. TIL,
railroads will contend for this sam,
privilege. The railroads have only on'
source Of revenue, from the earnings
The railroads ask that the rates the
may charge be sufficient to maintain
their property and equipment and pa!
dividend to its stockholders.
THE policy OF the Illinois Contra
railroad. after the return OF the rail
roads to private control, will be th'
same as pursued before the government
assumed control--the same that ii hal
pursued under government control
service to the people"
While in the city Mr.. Markham mad
an inspection Of the Nonconnah shops
accompanied by other officials Of tn,
Illinois Central including C. NJ. Kittle
federal manager; J. p. Porterfleld. gen
eral superintendent OF transportation
Mr. Egan and V. d. Fort, genera
! freight agent