Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-14
SHORTAGE IN CARS
EXPECTED IN FALL
1929 Crops Win Put Big De-
ntand on Rolling Stock,
Is View.

srecial Dispatch TO The Star.
NEW YORK, July 13.-There exists
strong possibility Of q car shortage
when the peak freight movement ap-
pears this Fail, In the opinion Of Will
liam H. Woodin. president Of American
Car e. Foundry Co. and president and
chairman Of the American Locomotive
Co. woodin, who over q period Of
many years has proved an authority on
the outlook for the equipment industry
holds the opinion that a car shortage
will only be avoided by a crop failure
Executives Of the Western carriers
serving the great agricultural district
are perturbed over the fact that there
was a large carry-over of grain Of last
seasons crop and that the railroads are
heaviest movement Of grain in the his
tory Of the United States.
Increase L. Noted.
woodin calls attention to the fact
that the shippers regional advisory
boards estimate that the carload ship
n1ents Of 10 principal commodities in
the third quarter Of this year will be
approximately ssl6.e4e cars, an in
for the same period Of 1928, an increase
Of So per cent.
The large comparative increase IN car
requirements over last year In the Allie
gheny. Ohio Valley and Midwest re-
gions Is due TO number of factors.
II is due in the Allegheny region to
the anticipated heavier movement of
coal and coke, gravel. sand, stone, iron
and steel. In the Ohio Valley 1t Is
A,,A To- o. ~
movement of automobiles, trucks and
parts. iron and steel and road building
materials. In the Midwest the COM
uodities particularly Affecting the in
crease are grain, iron and steel, coal
and coke.
Woodin stressed the fact that many
Of the largest railroad systems such as
the Erie. have entered upon extensive
programs of rehabilitation, particularly
involving the scrappins Of obsolete
equipment.
Decision Reacts Favora bly,.
At the annual meeting of stockhold-
ers Of American Car g. Foundry Co.
last Thursday, Woodin stated that It
would seem that the recent decision of
the Supreme Court of the United States
in the O'Fallon valuation case should
have = favorable erect upon the gen.
eral railroad situation. He holds that
as a result Of the OFallon ruling the
fear Of heavy recapture Of earnings
was relieved and that the roads with
high earning power which In past years
have accumulated large surplus &C.
counts. can now feel free TO proceed
farther In the purchases Of new and
needed equipment.
It was pointed out by woodin that
June orders for domestic freight ears.
although not equal to the 1854 cars
ordered in the previous month. were
more than double the number ordered
in June, 1928. Last month $3.50 cars
were ordered, as against 2,263 In the
same month Of last year.
During last month 1871 locomotives
were placed on order. which was the
largest number placed in any single
gines were purchased. AS a further
evidence of a distinct revival of the
railway equipment market, which has
been stagnant for years. the carriers
bought in the first half Of this year 52i
locomotives, being the largest number
placed with the engine makers In any
similar period since 1926. Only 1879
half of last year. and only 500 were
bought in the entire year 1928.
Demand Brings Delay.
The purchase of railroad rolling stock,
long delayed by the carriers now re-
ceivinH new impetus, will mean q longer
delay In the date of delivery. At the
present time there are inquiries In the
market for about 200 passenger train
cars. It Is indicated by the trend of all
equipment buying that the current car
will be favorable one for the equip
rnent makers. In this field, American
Car a. Foundry Co. and American Loco
motive Co. receive the lions share Of
the business
The American Car b. Foundry Co.,
according to Mr.. Woodin, Is fully pre-
pared TO meet any increased de-
mand upon its productive facilities that
may be caused by O resumption by the
railroads of buying activity upon an
extensive scale.
Woodin admitted that Car & Foun-
dryS engineers have made extensive
research into the possibilities of avia-
ton. He intimated that when the
time was considered opportune this
concern will assume q decided role In
the new industry.