Ogden Standard-Examiner | 1920-05-21 | Page 1 | Solution for Freight Congestion Looms

Thousands of Freight Cars Be- 1 I ing Rushed West to Re- 4 m lieve Situation , if CORPORATION TO BUY , IfiM ROLLING STOCK, PLAN Long Time Required to End m'H I angle Is Belief of Students. 1H WASHINGTON, May 21. A loan of B at least .5125,000,000 out of tho ?300,- jJ 000,000 revolving fund to onable, tho il'-l railroads lo purchase equipment re- lll quired lo meet transportation needs of the public was approved today by H the Interstate commerce commission. 1 The commission in a. few hours has '1 taken three other important steps to- ll ward breaking the freight congestion. Theso were orders for: ..v-" 'H Forwarding of traffic without refer-ence refer-ence to previous routing; abrogation of-rll raTIi-Qad'i,lre"sgornTn'grcafser- Wl vice: transfer Qf. 32,000. coal cars from IH ; west to coat, and of 20.000 box cars ll from cast to grain fields of tho west. iill To Straighten Tangle. HH I These moves were expected within lil ' fen days, members of the commission Fl I said, but they expected that a much lH i longer period would be required lo fH I "get the entire tangle straightened t'H Other recommendations for the 'do- ,1 . burscment of the revolving fund pro- ll videel in the transportation act woro Jl i as follows: I Temporary reserve for claims, nnd ' judgments, $-50,000,000; appropriation H j for short line railroads. ?12.000.'D0; Ml temporary reserve for maturities, 330,000,000; appropriation for addi- H lions and betterments which will pro- ''IM I mote the mpvement of cars, $73,000;- lpH?Z5 I 000. f v ! Many Cars Needed. ' v Now equipment is estimated by the ) lfe interstate commerco commission nz M j 2,000 locomotives and 100,000 ! freight cars, including 20,000 rofrlg- jl orator cars. The commission estimated J ' that equipment already ordered and jH I to cost 5125.000.000 i-opresonted irob- jH I ably less than 25 per cent of . that 'H needed. "It is evident." the commission's .jH ' statement said, "that tho cqulpm-itt fH required cannot be secured unless the carriers themselves assume the bur- 'H I den of financing the remaining 7b per j Tho commission said allocation of i the $125,000,000 for equipment would J be made according to the percentage jl which tho standard return of a com- ll pany bears to the total standard re- jH turn of all trtc railroads. 'fll Hearings on Loans. CH Hearings to consider .applications. IH for loans will be hold here May 21), and the commission asked, that appll-cations appll-cations embody statements of the r " transportation needs which the car- rlor would be unable to meet, and IH what Service for tho public could bo 'H performed if lfrc"Toan asked for was jH not granted; sayjments of security and tho carnlng'pbwer of the appll- "The $125,000,000 for equipment might best bo -disbursed," the commis-sion commis-sion said, "through a national equip-ment equip-ment corporation, in which tho car-riers car-riers would tako stock for 25 per cent of the cost of the equipment, the Unl-ted Unl-ted States -advancing the cash for tho stock up to $125,000,000 and tho re- malnlng 75 per cent being financed IH through a car trust. Trovislon would JM have to be made for adequate per IH diem or rental with such an arrange- IH