The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1920-05-23
TIVE NEEDS OF THE
RAILROADS SET FORTH
Tampa Times.

~, ,,,,,re nv banks and manufac-
-. ~ nriority to the needs OF es-
IT, Industries. and especially to
set,.oa5s Is urged in an editorial in
.t,o o,rrant issue of the Railway Age.
II contends that because or the vast
amounts of capital. materials ana IA
hor being absorbed by non-essentlai m
dnstries it is being made Impossible
FIR the railways to rehabllltate ana
oxnend their facilities, and that this
,s a situation which menaces the wei
fare of the country. 1t declares that, !
for axamnle. in spite of the dire need
of the country for more freight cars,
one of the largest freight car oulidlng
concerns in the country recently was
forced to close down because it could |
not get materials for building cars for |
which Is had orders. The automobile |
industry, it is asserted, has largely
hought up the materials needed TO
build freight cars and locomotives.
During the war" says the Railway
Age, ut was recognized as national
necessity that discrimination should be
practised between essential and nom
essential industries in the furnishing
Of capital, materials, fuel and trans
portation. Doubtless it would be un-
desirable in time of peace to re-estab-
Nsh priority in industry by govern
ment intervention: but conditions gave
developed which demonstrate the need
for the private arrangements of GER
tain classes of business concerns to
establish systems of priority which
will favor essential industries.
Agriculture, coal mining, transpor-
tation, are essential industries. The
manufacture of passenger automobiles,
OF pianos or of silk shirts is not es-
sential. People would not freeze or
starve, or go naked or unsheltered
without these things.
The railways need vast amounts of
new capital to provide facilities with
which to transport the countrys COM
merce, But railways with the very
best records for earning and paying
interest and substantial dividends are
finding it extremely difficult to raise
new capital and are having to pay
exorbitant rates for it. Railways with
less credit are finding it almost i'm
possible to raise capital at all. Mean
time billions of new capital are be-
20 N@SCAp SN Wy GiuSOA1loDAlC Sol1iE'aAiASs
Wild cat oil companies and so on.
The railways need vast amounts
OF equipment and supply companies
which build cars and locomotives and
labricate materials for the roads, are
nndlng it impossible to get sufficient
materials.
The banks can establish a system
OF priority with respect to capital by
sharply curtailing loans to non essen
ual industries and loaning relatively
larger amounts to the farmers, the
railway companies and other persons
anu concerns engaged in essential in
uuS(fles. The manufacturers can es-
'd0hsh system of priority with re-
Speel 70 materials by giving preference
1" supplying them to the railways and
o'ner essential industries. What is
Sung to happen to the entire indus
"'al and financial structure of the
country ii those who are able do not
nelp the railways to get capital and
materials?
IN this connection, 1t may be per-
1leht to refer to the fact that the
[s" transportation act authorizes the
,"'eFState Commerce Commission
%"eheVer 1t is of the opinion thai
outrage of equipment, congestion OF
Inc or other emergency requiring
,S'iteulate action exists in any sector
the country to give directions fol-
r'Vierence or priority in transporta-
~OL embargoes, or in movement Of
.""14c under permits, at such time ane
w. Sueh periods as it may determine
:. +u 10 modify, change or annul them.
~ not inconceivable that the trans
~ ."Lon situation may become sucf
r.,' 10 Justify the commission in estab'
ni ming a system of priority and per
tb this IN the handling of traffic, and i
MIS- mis- should be the case. will the com.
a" 'SSlon not be justified in using it
bi t,Dorlty to give priority to commod
son oS produced by or intended for es'
S'"''al industries?"
I~