Omaha daily bee., 1921-07-25
By VICTOR B. SMITH.

The United States is suffering today from
virtual paralysis OF transportation.
Four years ago the situation was PHYSICAL,
acute. The neck of the railroad transportation
bottle lay from. Pittsburgh east, particularly
about the port OF New York. The neck wasnt
big enough to handle the traffic poured into it
The system was choked and stalled.
The government took over the railroads ir
an effort to expedite business by unfyng all
traffic facilities Embargoes and preferential
shipping schedules were resorted to- Business
generally received body blow from which il
did not recover for months and for which it paid
a penalty running into tens of millions Of dollars
Factories were shut down. laborers were thrown
out of work, in some districts people lacked fuel
and necessary supplies for comfortable living.
The situation today is different but no less
acute Physically the railroads are able to handle
the traffic offered not because their capacity is
bigger, but because the traffic is less. But the
rates are high as to be a staggering burden
in most and positively prohibitive in some.
| As Ex-Governor Harding of Iowa says, the cost
| of transportation of corn from Iowa to New
| York amounts to two-thrds Of its value
The worst of the situation is this: The high
| rates are not improving the power o. the rail-
roads to handle the nations business. Railroad
mileage, railroad equipment, railroad terminal
capacity are not substantially larger than in l9lI
| If prosperity returns. if agricultural and indus
| trial production again becomes normal the
| country is certain to face second breakdown OF
its transportation agency no less staggering than
| that of 19l7-l9l8.
In 1916 committee of experts reported that.
if traffic continued to increase in 19l6-l92o at the
| same rate it had during the preceding 20 years
the railroads would be obliged to spend $780,,
| 100000 year or $l5000,000,000 in all, to care
for the business properly. Testimony OF Alfred
P. Thorn, general counsel, Association OF Arnerl-
can Railway Executives.) No such sum has been
art of
way Age estimates that 7l2,400 freight cars are
needed in the next three years to make up the
present shortage and provide for normal require
| ments. this involving an expenditure OF SZ,OOO,-
100000. In addition it is estimated that the rail-
roads will need locomotives costing S6lS,444,0O0
In the same period.
These figures are for motive power and carry
ing capacity alone. In addition the cost of ter
minal facilities and trackage runs into the hum
dreds of millions of dollars.
The railroads are not making these exten-
sions. Apparently they cannot What will hap.
pen when they are again placed under the load of
normal business is something which no one likes
to contemplate 1t will be l9l7-l9lS all over
again and is likely to be good deal worse.
Under these conditions even railroad men
are turning to water transportation as possible
solution of at least part OF their dithculties.
The water project under immediate considera-
ton, which gives promise of greatest results, Is
the opening of the St. Lawrence river and the
Great LakeS-tO-OCedN udlIlC. HIS plOJICl VIII
not only save the long haul on many bulky COM
modities, but it will take millions OF tons OF
freight away from the congested port OF New
York. The new attitude of the railroads toward
water transportation is indicated by a recent
statement by President Todd OF the Bangor &
Aroostook railroad.
81 am a railroad man." he said, "and New
ENGLAND railroad man at that. Conceivaby, my
railroad may be damaged somewhat by this St.
Lawrence project. But am here to say that the
country must have increased transportation ia
cilities. What is good for the country is good
for New England srd what is good for New
England is good for the railroads or New Eng
land"
A part of the present financial difficulties of
Nebraska farmers is due to the breakdown OF
transportation. When farmers desired to ship
grain to market in the early summer of 1920,
with prices good under stimulus of an export de-
mand, the cars were not to be had. Because of
this shortage of cars, the movement OF grain was
delayed and this contributed to the plight OF
many farmers who found themselves caught
later on falling market, which did not enable
them to get even cost-of-production price for
their grain.
One investigator reports I'm January, 1918
there were 4lS vessels held in New York harbor
because of lack of fuel and cargoes, due to car
west suffered for lack of 100000 tons OF coal
and to supply the urgent deficiency it was neces
sary to use 50 per cent of the freight cars OF AZ
railroads for many weeks and later to utilize
them to make up an iron ore shortage. The
shifting of the car supply to meet supernornlal
needs caused by deficient transportation facili-
ties has resulted in complete disruption of the
railroad systems OF the country. Some conf
munites suffer for food Others for fuel, still !
others for the raw materials of manufacture, while
the important industries of the country unable
to make the prompt deliveries which are essen
tial to maintenance of trade. These conditions
are not temporary. They are the result OF con-
stantly diminishing transportation capacity, as
compared with constantly increasing transporta- |
ton requirements The trouble is not alone with |
the shortage OF cars, but is to be found also in |
the inadequacy of terminals as a result of which |
cars cannot be unloaded promptly"
(Tomorrow's article will discuss just what |
savings water transportation will effect)