Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-06-21
RAIL EQUIPMENT
SALES WILL GAIN
Erie Request for Bond Issue
to Buy Locomotives Is
One Case in Point.
By j. c. ROYLE.
Special Dispatch to The Star.

Special Dispatch TO The Star.
NEW YORK, June 21-Whether
or not the proposed railroad mergers
are approved by the Interstate Com
merce Commission, purchase of new
railroad equipment are likely.to be far
heavier in the next six months than
in the first two quarters of the year,
There is a growing belief that few of
the proposed mergers will be brought
L. Il conclusion in the near future.
Heavy selling orders in some of the
so-Calied merger rails have recently
made their appearance in the stock
market.
If the consultations are not APP
proved, the interests behind the
mergers will none the less have con-
troll of the various roads involved, and
it is believed they will do their utmost
to put and keep them in fine condi-
ton and in line to make profits
whether they are merged or not.
Erie Request Case Is Point.
The request of the Erie Railroad for
permission to issue block of equip
ment trust certificates, proceeds from
which will be used to purchase new
locomotives and make betterments, is
n case in point The Kansas City
Southern of the Loree group has just
reported an increase in earnings and
undoubtedly every effort will be made
to sustain this record. One of the
Van Sweringen roads recently in,
creased its dividend rate All these
will he striving to maintain or in
crease their pace, and rival roads are
expected to follow suit.
Glass ] roads had 5000 locomotives
in need of repair on June l, according
to the American Railway Association
reports. Freight cars in need of re-
pair totaled 147,449, Of which 102,252
needed heavy repairs.
The harvest has just begun and the
time is approaching when equipment
will be strained to the utmost. Rail
traffic at present requires over 1,000,-
600 freight cars week, and If crops
are Of normal volume 100000 cars
week will be needed before Winter.
The present surplus of freight cars is
such that the indicated surplus next
Fall apparently will be below $4,000
cars. which is a dangerously narrow
margin. These statistics indicate an
approach to a freight car shortage
next Fall.
Car Buying Lays.
Buying of freight cars this year
has Jagged behind the purchases of
lSzo owing somewhat TO the nope thdt
mergers might be settled before mid
year. The Nickel Plate road how
ever has refused to extend the option /
on the stock of the Pere Marquette to |
the Chesapeake & Ohio as provided in |
the Van Sweringen merger. This has |
passed some $6,000.000 in profits on |
Pere Markuette stock from the Chesa |
peake & Ohio shareholders to those of |
the Nickel Plate, and also has cut the |
merger case squarely in two, so that |
1t is hard to say now where it will end |
The ruling of the commission on
whether o. P. Sweringen must /
answer questions dealing with all his |
private transactions in the stock mar
ket appears likely to have little effect |
one way or the other. If ordered to do .
so, it became known on reliable au-
thority today, he will answer rather
than take an appeal.
The minority committee charges
Van Sweringen made huge profits by
stock market dealings, and the major
ity in this assert privately that the
minority have been in the market
each time they issued a new circular.
In the meantime the decision is likely
to be still further delayed by these
charges and countercharges.
A.