The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1922-07-15
VARIOUS EVENTS INDICATE SER
IoUS CONGESTION OF FREIGHT
THIS FALL.
Shortage Of Equipment-No Coal Haul
ed Yet-Big Crop Must Be
Moved.

Wellesley Hills. Mass. Julyl4,-Dur-
ing the past week Roger W. Babson has
been IN New York in consultation with
important railway interests. He has
returned believing that freight car
shortage is inevitable this fall. and
everything possible should DO done to
prevent II. Concerning the same Mr..
Bahson states as follows:
There are various events which in
dictate serious congestion of freight
this fall First there IS n real shortage
of equipment in good condition.
Throughout the war the equipment or
most railroads was allowed to run down
Little was done to repair this equip
ment until this year. During the past
few months railroads have been endcav-
orlng 10 do I'VE years repair work In
one. As result a great many freight
cars are either in process of being re-
paired or are awaitlng'to be repaired.
In either case they are out Of service
II is true that many OF these cars Will
he back in service by winter hut they
will not be available by fall This
means that there are fewer cars avail
able today to haul freight than are
usually available
Coal Must Be Hauled
"Uusually the railroads haul their coal
during the spring and summer The
winter supply is usually delivered by
the railroads during the summer
months Thus far this year very ltttlo
coal has been hauled Only immediate
needs have been taken care OF Yet only
two more months remain before people
will be starting their furnace fires on
the assumption that the miners VIII
soon be back TO work this means that
the railroads will be deluged with coal
during the remainder OF the year. Every
available car capable OF hauling coal
will be pressed into service and the
coal tonnage should be very very heavy.
THE outlook today Is for good crops
this fall. At prevailing prices tho
farmers Will want to soil their grain
and move It at once This means that
the railways will be called upon to
move a tremendous amount or grain
while they are attempting to move the
coal. There are factors which lead one
TO believe that manufacturing as n
whole will be more active this fall than
II has been at any time this year.
Fundamental statistics indicate that the
low point In business Will he reached
this summer. Thus the railroads Will
be taxed by hauling raw materials in
general and manufactured products OF
all sorts"
Means Higher Prices.
Mr.. Rabson was then asked what ef-
feet such q congestion would have
upon commodity prices and securities.
To this he replied rs follows:
freight car congestion inevitably
leads 10 higher prices This IS only
natural as prices are determined not
by costs. but by supply and demand,
1T city naturally uses 30 cars
loads NJ potatoes day. any day that
there "a a shortage OF only two or three
cars, tho price OF all the potatoes in
that city goes up. Another day when
there is surplus Of only two cars.
the price Of all tho potatoes goes down.
Price f. not determined by the total
ounntl,y If 4 rrpduct produced or con-
surned, hu, rather 10y that small per
centare ~ surplus or shortage. A
freight congestion this fall would In
evitably lead To a shortage in certain
INV materials and merchandise In some
localities As result these commoG-
,,Ins will temporarily strengthen IN
price At these points. such a result Ia
inevitable.
STRENGTHENING commodity prices are
often-although not alwayB-preceeded
by strengthening security prices. Tho
stock market usually discounts rises
IN thc commidty market Thus con-
gcstlon Of freight might mean oo;h nd
~anc'nR commodity and secruity prices.
Furthermore. IN the case OF freight
congestion. the railways should temper
ariIv show very handsome earn
'~gs Already the railways arc SHOWING
very good earnings owing TO the hlGn
rates and reduced operating expenses,
Notwithstanding tho fact that they are
hauling very little freight. II the time
comes when the railroads will carry 100
rer cent capacity. these earnings should
be very large Large railroad earnings
should tend for higher prices for rail
road securities. A word to the wise is
sufficient"
General business according 20 the IN
dex figure OF the Babson chart stands
at II per cent below normal the same
as last week.