Evening star., 1948-01-04
Rail Outlook cIouded
|
by Mounting Costs;
Freight Record SET
BY the ssA.seeiassd Press

NEW YORK, Jan. 3.-The rail.
roads hauled more freight more
miles in 1947 than ever before ir
peacetime-but without stilling ths
clamor of shippers.
Shortage of freight cars persisted
but showed signs of easing at thu
years end as output Of new unit
neared 10000 a month.
Hundreds of new passenger car.
went into service and streamliner.
became. a common sight on many
secondary runs-but travellers still
found some reservations hard tt
get.
Freight rates and passenger fare:
advanced-and the carriers said the
added revenue was largely Offset BY
higher labor and material costs.
Twin measures of rail service per-
formed are the passenger-mile
transporting one passenger one
mile) and the mile tmoving one
ton of freight one mile.
The railroads estimated 1947 pas.
miles at 44,789 500 900, aroune
30 per cent below the preceding
year.
Their prize performance of the
year was in the freight field. Oper.
ating with 27 per cent fewer cars
than in 1929, with total carrying
capacity some 20,000,000 tons below
that prewar peak year, the railroads
piled up an estimated 647, 1858 SOC, ,00t
tom miles, which was As per cent
above the 1929 total.
194S Decline Forecast.
Prospects for 1948 are cloudy
William T. Farley, president of the
Association Of American Railroads
says:
According to the best estimates
now available, railroad freight traf.
fic during the coming year will be g.
per cent less than it was in 1874
and passenger traffic will decline
1873 per cent.
"The railroads financial situation
during 1948 will depend largely or
the outcome of their petition fol
increased freight rates. Withou
freight rates adjusted to rising cost!
the railroads would suffer thu
largest deficit in their history"
The carriers earnings for 1874
fell far below the per cent return
on net investment they contendee
was required to maintain theil
credit to assure funds for equip
ment, maintenance and improve
ment programs. AAR statistician
estimated the return at 1886 pc,
cent, compared with approximatel,
2.75 in 1916.
Pending before the Interstate
Commerce Commission as the yea
drew to close was the railroads
request for an average 29.2 per cen
increase in freight rates, of which
an interim 80 per cent was granite,
effective October 13. Including
this, freight rates have been raiset
% per cent above 1899, the AAR said
while since that same year wag
rates, payroll taxes and the price
OF fuel and materials have advanced
an average of 76 per cent.
Big Deficit Feared.
Excluding the temporary SO pc
cent DR.. Julius H. Parmelee, AAF
vice president told the ICC, tn
railroads might be expected to hay'
a net deficit, after all charges, o
$313, 300, 900 in 1948.
Despite their record freight
carrying performance, which wa
made possible by larger cars, longe
trains and more efficient handling
the railroads were unable to keel
pace with the swiftly expanding
national economy. .a...
The shortage of box cars becam
the worst in 20 years.
So huge were the demands result
ing from record production o
farms, mines and factories tina
lack Of freight cars at times forcet
curtailment of operations. Amonl
those affected were coal mines, flou
mills, lime products plants ant
newspapers.
Under Government auspices, (
Task Committee" of steel maker
and car builders undertook to chan
mel to the car plants enough stee
to produce 10000 freight cars F..
month. The corner was turned
finally in September when for th'
first time since the war, car de
liveries exceeded retirement of over
age units.
AS the 10,000-a month goal wa
approached, the programs sight
were raised to a 14,000-a month
level to be attained in 1948.
Around $1,000 freight cars wer,
delivered during the year. Nor
than 800 cleaning new passengel
train units were turned out, enabling
the railroads to offer day coacl
travellers unprecedented comfort ant
luxury on principal and many Sec
ondary runs.