Evening star., 1924-07-13
RAILROADS PREDICT
BETTER BUSINESS
Figures Indicate Bottom Has
Been Reached-Turn Noted
:: in Coal Trade.
BY HARDEN COLFAX.

Figures indicating that the bot
tom of the movement downward in
business and industry was reached
three weeks or more ago were made
public by the American Railway AS
sociation in summary of car load
ings since June IA. Business has
picked up since that date and is still
mending, and the railroads are con-
templating continuation of the
movement during the next few
months.
On June IA the chief railroads of
the country had 36S, 900 idle freight
cars in good order on their rails.
That was the highest number record
ed since 1921 Eight days later, or
on June 81, the number of idle cars
had dropped to $4,000, a slight de-
crease, but one regarded as Signif-
icant of the trend toward d revival
Ten days thereafter, or on July |, a
still further decrease in idle cars to
356,000, was recorded. Next week. it
is believed, the showing will be still
better.
At the height of the 1921 depression
more than 100000 idle freight cars in
good condition were available for
business. At that time, however, the
railroads had far fewer cars than at
present. n pending program of ST.
NOO,OOo,OOO or more has been carried
out almost in full since that time, in
Noiylng an increase in equipment
amounting to tens of thousands of
cars. Figures of today for that rea-
son are hardly comparable with those
OF three years ago.
Coal Industry Improving.
1t is regarded by the railroads as
significant also that almost all the
decrease in idle cars is due to a pick
up in the coal industry Ordinarily
the coal industry does not show signs
of revival at this time of the year
unless there is great current de-
mand for coal. And such a demand,
as viewed here, can mean but one
thing. better conditions in the in
dustries that use coal. The transpor-
tation of coal for filling bins against
the winter generally does not begin
till later.
Returns covering railroad earnings
Tor May. at present coming in to the
interstate Commerce Commission, fail
TO confirm the somewhat peSsimistic
belief generally current that net in
come would show a material drop
during the month.
The returns also disclose the sea-
sonal position for May to have been
only l per cent below normal In the
west the decline appears to have been
almost wholly checked, standing in
May at one-tenth of / per cent below
the April figures. In the east the re-
cession from April to May was slight
~ more than per cent, the largest
Tor any section of the country.
South Appears Prosperous.
The south appears to be prosperous
according to the carriers figures con-
dltions on railroads there being near
Iy "a per cent above normal.
June earnings, as expected, un-
doubtedly will be somewhat lower
than those for May, but July is ex-
pected to show an increase if the
present obvious trend toward better
business continues.
At the executive offices of some of
the chief carriers plans already are
beIng made to handle a much larger
volume of freight during the coming
two months than was handled during
May and June.
In anticipation of d large amount of
traftic this fall, many railroads, al
though at present burdened with ex-
cess equipment, have been actively
engaged in repairing bad order cars,
and putting their motive power in
better condition. AS they see the fu-
ture, they probably will need all the
cars and locomotives they can get
within three months from the present
time.