Perth Amboy evening news., 1920-04-09
RAILROADS WILL
Be IMPROVED
$500, 600, 1000 Revolving Fund
Set Aside to be Used by
Roads to Finance Needs
w. s. MANN

IVY - AS&Os W Al ~ wi
. WASHINGTON. April When
Uncle Sam a few weeks g handed
the railroad lines back to their own
ers, he set aside at the same time the
sum of $500. 900. 200 as a revolving
fund" to be used by the roads in f.
nancfng their immediate needs, and
railroad and government officials are
now attempting to determine how
that sum shall be apportioned.
Acting In conjunction with the In
terstate Commerce Commission. the
Association of Railway Executives
has obtained from every road, large
and small, a summary Of its most
pressing requirements, and the aSso-
citation committee Is meeting In Chi
cago this week to draw up a report.
Freight cars and more freight ars
Is the principal need of h majority
of the roads, though other rolling
stock and increased terminal facilities
are also demanded by many lines.
The $500 600, 900 fund, according to
the railroad bill, is to be used for
the purpose of enabling carriers by
railroad subject to tho Interstate
Commerce Act properly to serve the
public during tho transition period
Immediately following the terminal
ion of Federal control" In tho orig
inal bill the House fixed the amount
at $3.50, 900, 900 n the Senate raised
it to $500. 900 900, but the compromise
measure set tho noun between
those sums and stipulated that the
loans must he made within twenty-six
months after the passage of the bill.
Twenty years service Is as much as
can be expected of the average freight
car SO that some $4,000 new
cars are required every year
to replace those worn out, there
being about 100000 cars in ser
vice at present. Rapidly mounting
construction costs led the roads to
reduce thier car orders to a minimum
In 1916 and 1917. Under government
control In 1918 there were 100000
new cars built, but none was built In
1919, with the inevitable result that
the present supply Is far below what
1t should be.
The Association of Railway Exec
utives expects to arrange for the con-
strirction of 100000 new freight cars
during the present year.. but not all of
them are to be paid for out Of the
government loan, for at the present
cost of labor and materials such an
order would absorb the entire appro-
priation and leave nothing for other
improvements. SO far this yea orders
have been placed for about 20 600
cars by roads whose financial con-
dition will permit such expenditures
without waiting for government aid.
For a short time In the spring of
1919 there vas a surplus of freight
cars, but for almost a year there has
been q shortage, reaching as high as
10000 In January and February or
this year and dropping to $4,000 late
in March. These figures mean that at
the latter date there were orders for
10000 cars that could not be filled.
To move the business of tho country
without delay would require a much
larger number OF cars. and conserva-
i've estimates are tina from 900. 600
to 400, 700 additional freight cars
should be rolling over the rails In this
country.
The Interstate Commerce Commits
sion. with the aid of railway organtza-
lions, is therefore engaged in h task
of cutting the garment according to
the CLOTH" and making 100000, 600
go as far as possible in meeting the
present needs. In determining how
much each road shall get other than
the requirement. of the moment must
be considered. for in filing application
for q share of the government a the
roads must set forth the term for
which 1t is desired. the uses to which
II will be applied, the present n
prospective ability OF the applicant to
repay the loan, the character and
value of the security offered, and the
extent to which the public conven-
fence and necessity will be served.
Additional information as to the
financial responsibility may be re-
Qudred by the commission. II 1t de-
eires. The loan will bear interest at
the rate of six percent, payable SEMI
annually. and must be repaid within
i've years.
Pending the placing of the loans
and the delivery of new equipment,
the Car Service Commission. main
tanned In Washington by the American
Railway Association, is doing what 1t
can to relieve the car shortage by ar
ranging for the return of cars to the
points where the need s.most urgent.
and exercising In a general way the
functions performed by the car SER
Vice section of the railroad admin
stration during government control OF
the roads. In fact the Car Service
Commission Is occupying the same
quarters and has much the same per
sonnet as the car service section had
prior to March /. 1t has been es-
tabfished by the roads for Il 60-day
period, or until such time as a perma-
nent organization may be formed. II
IS semi-omcial. In that 1t deals d.
rectly with the Interstate Commerce
Commission In the matter of car SER
vice. and Is situated just across the
street from the commissions build
ing
A car shortage at this time of the
wear is most unusual. and indicates
something very much the matter with
the transportation industries. 1t has
complicated the very serious news
print paper situation. where a limited
supply of paper IS aggravated by. a
lack of cars In which to ship 1t. The
coal fields also are affected and the
Car Service Commission Is still engag-
ed in getting back to the eastern
mines the cars that were shipped west
with coal during the strike last
November and December.