Every evening, Wilmington daily commercial., 1920-05-07
$5OO,OOO,OOO LOAN
ASKED BY ROADS
BESIDE RATE RISE
Executive Says Lines Need ST.
900, 100000 for New Equip
ment at Once.
PREDICT FOOD SHORTAGE

Washington, Nav The railroads
of the country must have immaculate
financial help from the Government
they are to cope with the shortage oi
equipment, which threatens serious inter
ference with the transportation and even
the production of food, as well rs with 10
dustry, said railroad executives yesterday
in testifying before the Senate Interstate
Commerce Committee. i,
The Government, the executives said.
should make SIPS, 600 immediately
available from the $500, 600, 600 revolving
fund created by the Railroad act, and
should follow this with loan of S5Oo-
100000. In addition freight rates should
be increased, tfe executives SAID, py
about 2S per cent.
The executives appeared before the
committee at the request or Senator
Cummins He said that livestock and
other food producers OF the Middle WeSl
had told the commit tee that shortage OF
cars and motive equipment was making
it impossible 70 move perisEable ana
semi-perishablc food to market, ana
that as !. result a curtailment OF pro-
duction was in sight.
Edward n. Brown, Chairman ot the
board of the Pere Marquette and FRISCO
lines, told the committee that when the
reads were returned to their owners
they had neither cash, credit or adequate
equipment.
As result. Mr.. Brown said, the pres
cnt ,horta e of freight cars Is 23S,b0O.
passenger cars more than 5000 and 3, l9O
iocom olives. Mr. Brown said that the
Railroad Executives Committee had
reached tie conclusion that 100000
freight cars. 1000 passenger cars and
1000 locomotives should b. ordered at
once 20 take care of minimum needs.
This would rost SS10,0D0,nC0, he sald,
and would not he fully available for
usc during the present calendar year.
To make good the entire shortage OF
ears and locomotives would take Sl,oO0-
100000 Mr.. Brown said.
He told the committee that since Jan
railroads have ordered SIS locomotives
and p, 700 freight cars. obligating them
selves to the extent Of Sl44, 100000 TO the
banks Bankers had informed the execu-
tives that il was virtually impossible
Tor the railroads to borrow any more
money on equipment trusts, he sand.
He said the banks have told the rail
roads that they must restore their credit.
and to do this, be pointed out, Sl9s,-
900. 600 in maturities must be paid this
wear. Next year q vastly larger sum must
be paid.
A. Ii. Smith OF the New ork eIIral
Lines declared that one Of the eTnbar-
rassments to which the railroads have
Eeen subjected grew out Of the fact that
the Government charged additions and
hetter1nents made during Government
control against the rental due from the
Government TO the railroads. Instead
of that. the additions and hetterments
costs should have been funded for re-
payment over long period OF Years
Mr. Smith said.
Proposals for an advance in freight
rates OF 24 per cent yielding an addi-
tional revenue of S352, ,S93, 900 annually,
were made to the Interstate Commerce
Commission today by the Western group
OF railroads The group contended that
this increase was the minimum neces-
sary to bring their net income up TO
6 per cent on q property investment Of
S, ,963, ,SS3, 900
Samuel NJ FELTON, Of Chicago As
Chairman Of the Western Executives
Rate Committee, IN presenting the ap-
plication, placed stress on the made
quacv or present railroad facilities TO
handle efficiently the growing traffic
and the need for the immediate outlay
Of hundreds OF millions OF new capital
for oars, engines and additions and better
InputS