Every evening, Wilmington daily commercial., 1922-04-17
DECLARES ROADS NEED
OVER &,OOO,0OO,0OO
w. Jett Lauck Estimates New
Capital Requirements OF
Transportation System.

Washington. April l7.---Additionnl
capital of more than 81 100000 must
bc provided for the railroads NJ the
United States II the nations trnnsporta-
ton problem IL 10 bc solved according
to W. ]. Lnuck. consulting economist
for the railway employees department
American Federation Of Labor.
"The transportation industry requires
n major operation and further pallia-
tives will only hcccn,untr i,s deplornhlc
conditions" said Mr. I,auck today. #
should be financed and placed on q
proper basis. In order 70 develop co-
operation between employees and man
agcncnt practical measures should hc
formulated 20 give 20 the railway work
rfs proper participation IA al branches
of management n our fundamental
suggestions are accepted by the commit.
Zee we are sute that better and more
efficient transportation facilities w,ll he
provided, operating costs greatly ~
duced. freight aud passenger rates de
creased, with net gains ln operating
income. hud a large' measure III rcacc
and cooperative effort between anuaFc-
mcnt and employees vii prevail In The
transportation WdusifT
In estimating the ucw capital oti'laFs
required by tie railroads. Mr. Lnurk
divided the hmounts under two heal
ings
/ Tho capital nccc@sarv 90 bring
the properties up 20 par STANDARD
which should hhve hcen taken rare of
bv the depreciation reserves
2 The capital needed 90 nrot in
ccascd traffic requirements
Under the frs, heading The itcrna wcr"
a. follows Locomotive. StiUWO O0N.
track and yard fnciliims s22i. .2W, ,Gh.
bridges an grade rcyimons. s26. TOO on.
signal equipment SN2 600 CnD. freight
and paseougrr stations $500 Wp. go
miscellaneous properties. S2b,WDW Wm
total, 81 -, 900 0oD
ndrr fhe second heading tho items
were 500 new locomotives s3hJ 00n
| co... 3nu.0Dn new freight cars and Goo
new pAssruRcr cars. ss22 30 WN loc0
motive terminals and repair shop~ 800.
mO Un, 1900 miles ~ ncw nnir
tricks. 5000 .0u0. 600. signal equipment
| SCI H0. .OW. relocation of terminals
! 5000 UOO 900 mscelIaneous pr0pertics
sl0WOD0 Ooo, total. 81. .74s 100, on
Tho grand total of all items ot cs
tmo,ed new capital requirements wa
s4.57t 4oO.0Go
we do not agree with tho railroad
executives that this requisite capital j
practically unobtainablc,' sand Mr.
| lauck. We believe that II - tho dut'
of tho banking group which controls ~
railroads 90 produce tins required credl
or capital. that % is practically possibl
/ for them 20 DO 80. and that they shou,'
/ ie required 20 30 50 Rs condition q
'helr continued control Of the transpor
tation system
We estimate that Il all possible i'm
provemcnts aud economies were adopted
and Il all the necessary capital anf
credit were available 70 the railroad
10 remedy their inadequate facilities anc
20 install economy devices and method
an annual saving IN operating cost
could he made amounting 70 81, OPS,
100000, or approximately 40 per cen
Of the operating expenses OF Clas
railroads for 1920. OF this amour
OF possible annual saving approx
mately sl.437, sos, 900 is dependent o.
new capital outlsys The remainder
based on changes IN operating method
or on the introduction of new processe
and methods and unified control"