New-York tribune., 1920-05-15
Executives Suggest Part
of u S. Revolving Fund
Be Used 10 Buy Cars
TO Relieve Congestion
Senate Inquiries
Into Rail Crisis
Commerce Commission Is
Asked 10 State Steps
Taken to Move Freight

WASHINGTON, May Immediate
use of part Of the governments re-
volving fund for the purchase of rail
equipment to aid in relieving the pres
ent acute freight congestion was sue-
cested to the Interstate Commerce
Commission to-day by the Association
Of Railway Executives. At the same
tine the Senate adopted resolution
bv Senator Reed. OF Missouri calling
upon the commission for information
as 10 what steps it had taken toward
breaking the traffic congestion.
The executives recommended that
si25000000 be set aside for purchase
the insistent demands of freight Each
road would be asked for statement
of equipment needs and loans appor.
toned pro rata. The executives urged
the commission to act at it's earliest
opportunity because OF the car short
age.
The executives offered also the fol-
lowing program for disposition of the
remainder of the S300000, 900:
temporary reserve for judgments
ana claims against the railroad ad-
mnistration on the roads accounts,
$4,000 600
Appropriation for the short line rail
roads, Sl2,000,000.
tions. $4,000, 900.
Appropriation for additions and bet
termerts which will promote the move
ment OF cars, $73,000,000
If maturing obligations of the vari-
Gus roads do not require full use Of
the $4,000 900 set aside for that pur-
pose, che lemainder should be turned
INTO the ftnd for the purchase of
equipment. 1t was added.
Ask Aid for Weaker Roads
The commission should adopt more
liberal policy with respect to weaker
roads, in the matter of securities ac-
cepted by the government, the eX-
eeutives urged. They declared that
through this method the ends sought
could be more easily gained, since il
worked a more general development of
adequate service. The commission was
asked to join i'll urging enactment of
tae Cummins amendment to the trans
portation act because OF the effect it
would have in aiding the corporations
70 eXpend greater sums for equipment.
1t was said that if the five-year limi-
tation were removed and extended TO
ten years for refunding loans the
roads would be in better position to
develop a complete program of equip
ment buying.
As viewed by some OF the executives,
the Cummins amendment would mean
that the roads would have approxi-
mately S300,000,00D more in cash than
under original provisions of the trans
portation act. The roads would be
given ten years to pay back $765,OO0,-
GOO expended on their properties dur
ing Federal control Director General
Hines had proposed to reduce this
amount by withholding $495, 100000,
which the government owes the roads
IN rentals. This it was asserted, would
accomplish the object sought by West
ern shippers, who urged Congress last
week TO buy more cars at this time.
The changes would act as tonic for
the credit of many of the roads, the
executives believe. and give the roads
an immediate available cash supply.
While the executives We're laying
their program before the commission
some Of its members were engaged in
Investigations of the car shortage and
freight congestion, on which reports
have come from all corners of the
country. Several conferences on the
situation were held with railroad rep
resentatves and with officials of the
Car Service Commission, the railroads
agency which is to work in cooperation
with the commission in application of
the car service provisions of the trans
portatlor act.
Shippers Ask Relief
Protests and reports of further in
creaSes IN the congestion continued to
pile up. Several delegations of ship
pers called on Representative Esch,
who was joint author of the new rail
road law, asking him to urge Congress
slonal help Of some sort. Coal opera
tors from West Virginia said they were
unable to ship coal, and that, while
their mines were still operating, the
production was low, due to the freight
traffic situation.
Fruit and vegetable interests from
several sections sent word that their
crops were in danger because they
could not be moved. The apple crop
OF the Pacific Northwest is nearly all
awaiting shipment, but without imme
date prospects of movement, it was
declared