Evening star., 1947-02-23
hY the A..esla.sa Ptss.

The worst boxcar shortage In 20
years slowly frightened its throttling
grip Of American industry yesterday
as representatives Of the Nations
railroads, steel companies, rail car
builders and Government agencies
sought some solution to the critical
situation.
The concensus in most quarters
was that more new cars are needed
to bring any real relief. Railroad
spokesmen predicted the situation
would get worse before 1t improves.
Chairman Reed of a Senate Com
merce subcommittee, which has been
holding hearings on the shortage,
called a conference of industry ex-
ecutives and Government officials in
Washington for next Wednesday in
an attempt to work out plan to
obtain 10000 new boxcars a month.
Senator Capehart, Republican,
Indiana, chairman OF Senate
Newsprint subcommittee, said in
Chicago he also had called meet
ing in Washington next Wednesday
and invited presidents of major
railroads and steel companies to
attend. The group will discuss
means of alleviating the boxcar
shortage" to facilitate shipment Of
newsprint, he said.
The railroads have ordered $4,000
cars which still are undelivered, they
claim cars are wearing out and be-
ing retired at the rate of $500 to
1000 month. However, only 2,40S
cars were produced in January.
Under a previous arrangement
worked out with steel companies,
boxcar makers and the Civil Pro-
duction Administration, this output
was scheduled to swell to 1000 cars
by April
However, this is only part Of the
story. Railroad spokesmen in Chi
cago said If there was any chance Of
getting them. lot more than the
SO, 900 cars on order would be sought.
These sources point to expanding
industrial production and a record
winter wheat crop harvest expected
in the spring and summer as further
prospective burdens for the already
overtaxed transportation facilities
available.
The almost unprecedented demand
for steel Is the crux of the boxcar
shortage. Some railroad sources con-
tend that, at the expense of the rail
cas makers, the steel mills have con-
centrated on filling demand for high
grade steel for automobiles, refrig-
orators, washing machines and a
mass of other consumer goods. Last
lyear the railroads, which normally
take II per cent of the Nations steel
output, got 72 per cent.
Meanwhile, the effects of the box
car shortage continued to pyramid
From many sections of the country
came reports of cuts in manufactur-
ing output and employment, over
flowing warehouses, shutdowns of
our mills and drastic curtailment of
newspaper advertising space because
of a newsprint scarcity.
| No estimates were available on
the tonnage of freight tied up at
warehouses and loading platforms
but some cities reported critical
situation.
The Pittsburgh Chamber of Com
merce estimated the car shortage
at 81 per cent of normal for the
last half of January, with some firms
piling finished products on the
ground because additional warehouse
space is lacking.
Daily newspapers in several cities
dropped advertising or reduced the
number of pages because Of the
newsprint shortage.
The Birmingham News and Age
Herald has been limiting advertis-
ing space to so per cent of normal
since January II and threatened a
further cut unless newsprint ship
ments approach normal level.
Existing or planned space cur
tailments also were announced by
the Detroit News, the Quincy
(Mass.) Patriot-Ledger. the Raleigh
| IN. c. News and Observer, the
Danbury (Conn0 Times and the