Modification.-We can give number of various types of cars, freight and passenger, separately; but locomotives are not so separated. Figures for the year ending June 30, 1916, and prior years are available. None for 1917. This is understood to be not for individual roads but for all roads. Aggregate tractive capacity...... 1,989,132,700 1,970, 295, 300 1,947, 603, 716 1,858,747,211 1,728,363, 247 XI. To what cause or causes do you attribute delays and congestions in traffic? Answer. The answer to this question must embrace consideration of three factors: (a) Unprecedented volume of traffic and changes in traffic conditions; (b) inequalities in operating efficiency; (c) lack of coordinated governmental regulation. (a) Unprecedented volume of traffic and changes in traffic conditions: The volume of traffic demanding movement has exceeded and exceeds by far that of any former period. The large manufacturing centers of the country are largely in the territory east of the Indiana-Illinois State line and north of the Ohio and Potomac Rivers. Some of those centers are also the principal railroad "gateways" through which traffic to or from other territories must move. There has been a great increase in manufacturing and other industrial activity in eastern territory. This has resulted in a very large tonnage of fuel and raw materials inbound and finished products outbound. In consequence there has been a concentration of cars moving to and from these industrial centers. Through those centers, as railroad "gateways," a large tonnage is moved (1) for domestic use, (2) for export. For illustration, coal for Michigan moves from mines in territories south and southeast of Toledo over lines running through Toledo and through Detroit. With the local facilities for handling traffic at those points already under a heavy burden the tonnage of coal for points in Michigan is delayed until it can be moved through. A considerable part of that coal before reaching Toledo has had to move through Cincinnati, where it has met the same experience. Manufacturing in New England was greatly expanded immediately following the outbreak of the war in Europe, accompanied by a demand for movement of materials and fuel that has not been met and a serious congestion on the railways. Most of the vessels formerly engaged in coastwise service and many of those on the Great Lakes were withdrawn from their usual activities, thus throwing an additional large volume of traffic upon the railroads. With regard to traffic for export the tonnage moved over the rail lines since the latter months of 1915 has been greatly in excess of that carried at any time prior to the war in Europe. By far the greater part of this tonnage has been tansported to the north Atlantic ports, and it has been moved through or from the large industrial centers, such as Pittsburgh, where it has met the accumulating traffic local to those centers. Thus the changes in traffic conditions have resulted in a preponderating flow of tonnage from the West and the South into eastern territory converging first at the industrial centers and later at the north Atlantic ports. These, with other contributing factors, such as shortage of labor, failure of some consignees to remove their freight from cars and warehouses, and plethora 43202-183 of demands for shipments for the Government and those having contracts with the Government, have been the principal causes of congestion so far as changes in traffic conditions are concerned. (b) Inequalities in operating efficiency: The increased demands for transportation, under changed conditions, have served to show both the strength and the weakness of the railroad systems. Some of them were prepared for a larger business. Others found their facilities inadequate and have been almost overwelmed by traffic demands, showing in consequence operating costs out of proportion to the increased tonnage handled. In the matter of equipment, locomotives have been relatively more important than cars, and the lines that have had a substantial margin of strength in motive power have been much more successful in meeting the demands than those which have been weaker in that respect. But with full recognition of these differences in facilities and equipment the fact can not be overlooked that some railroads are much better operated than others. There are conditions in the situation which can not be otherwise accounted for. (c) Lack of coordinated governmental regulation: The present regulation of transportation conditions and of matters necessarily affecting transportation is committed to several agencies authorized by Congress. It has the inherent weaknesses of a diversified control, no agency having complete authority to do what the situation requires. The fact must be recognized that the freight of all classes now requiring transportation can not be successfully carried unless operating practices are so systematized as to get the maximum use of the available facilities. It is clear that unnecessary requirements for preferential movement must contribute to delays and congestions, and, while expedited service is imperative in certain cases, better results in the long run will be secured from a centralized regulation to promote general operating efficiency. XII. What changes in methods of administration have been adopted within the past year to relieve congestion of freight and increase efficiency? Answer. We refer to what is said on pages 61 to 68 of our thirty-first annual report to the Congress, recently submitted, under the captain "Transportation conditions." Since that report was prepared the railroads' executive committee has expanded its efforts by arranging for diversion of export traffic to south Atlantic and Gulf ports; by organizing an operating committee to unify more completely the operations of the roads in the eastern district; and by transferring locomotives from western and southeastern roads to eastern roads and coal-carrying roads reaching Hampton Roads. The transfer of locomotives to the roads carrying coal to Hampton Roads is aimed at relief for the fuel shortage in New England. XIII. What further changes, if any, would you advise? Answer. (a) A single governmental control of railroads, under the direction of the President and with appropriate guaranties to the owners, for the period of the war. (b) A complete unification of all facilities, especially of terminals and equipment. A larger number of locomotives can be drawn from the less-burdened lines for use in clearing the congestion in eastern territory. More of the empty cars constantly accumulating there can be moved to the South and West, thus relieving track and yard space in eastern territory and furnishing a greater supply of cars in the originating territories. (c) The romoval of competition for traffic, passenger, and freight will make possible a more effective use of facilities. Every available route should be used to its maximum economical capacity, and cross hauling of freight that moves in large volume should be avoided or restricted as far as may reasonably be done. (d) Immediate survey of conditions of inland and coastwise water transportation. There are possibilities in water transportation which, if fully utilized, can be made an important factor in relieving the rail lines. The enlarged Erie Canal, for example, is nearing completion. It may be possible to increase the number of barges for the canal and boats for the Great Lakes, so that those arteries of commerce can afford relief upon the opening of navigation. Transportation on the navigable rivers and the development of coastwise service are equally important. In this connection it is noted that the Shipping Board favors the construction of shipyards in the South for rail-transportation reasons in part. It is, of course, important that new manufacturing activities shall be located, if possible, in the territories which are relatively free from traffic congestion. (e) Diversion of as great an amount of export tonnage as possible to the southeastern and Gulf ports. This will result in substantial relief to the lines in eastern territory. It will require action by the Army and Navy Departments, the Shipping Board, and the allied Governments in arranging ship sailings. (f) The improvement in car loading, as a result of the response of the shippers to the necessity for conserving equipment, has been very substantial. This can be further developed and also extended in the direction of more prompt unloading. In the case of some railroads the traffic departments, which ordinarily seek to increase the carriers' traffic patronage, were in part diverted to the efforts to secure greater car efficiency. The result was a marked increase in tonnage carried per car and per train, as well as in mileage per car per day. (g) A survey should also be made of the possibility of developing transportation by trolley lines and auto trucks. There is a field for this service, already partly utilized, for short hauls to and from industrial centers. The ACTING CHAIRMAN. What effect upon the scope or nature of this inquiry under this resolution, Senator Cummins, do you think will be had by the action of the President in taking over the railroads of the country under resolutions and laws existing at the time? Senator CUMMINS. That question is a little bit difficult for me, if not embarrassing, Mr. Chairman, and I can only give you my personal individual view of it. I believe with the commission that the only way we can meet the difficulties that we must overcome is through unification of the railroads and their operation and management, and a single system, and I am in hearty accord with the action of the President in so far as that policy is concerned. I have not believed, and do not believe now, according to our constitutional guide, that he has the power to do what he has done, and I was very anxious to give him the power in the right way. Having exercised the power, however-and there are different minds about that-I am not saying this in any captious. way-but I suppose that so far as the taking over of the railroads is concerned that has become a rather academic question, but I do believe it is the policy of the committee, and ought to be the duty of Congress, to supplement the legislation now in existence with ample authority to accomplish the purpose he has in view. Senator POINDEXTER. Senator Cummins, you are a member of the joint committee of the House and Senate which is inquiring into the transportation matter, are you not? Senator CUMMINS. Yes. Senator POINDEXTER. May I ask you whether or not that committee has had the members of the Interstate Commerce Commission before it and gone into their views as to the permanent policy of the country as to the railroads? Senator CUMMINS. We have not had the members of the Interstate Commerce Commission before us at all, or any member of it, as I remember. We have had a great deal of testimony-if it may be called testimony-relating to Government ownership and operation. There have been two or three very complete arguments, accompanied with facts, upon that subject, but not from the commission. Senator POINDEXTER. Have the hearings before that joint committee been printed as yet? Senator CUMMINS. I am informed that they have not been. After our return from California, we took up the hearings again in Washington and continued them for a week or more, and the latter hearings have not been printed, I am told. All of the hearings, up to the beginning of this session, have been printed; but there would be probably nothing in those hearings that would be very helpful at this time. They all relate, in so far as Government ownership is concerned, to a permanent policy, and they are confined to arguments intended to show that that is the best policy for the Government to pursue, but they do not take up the details of the transformation and point the way for the legislation which would have to accompany Government ownership and operation. Senator KELLOGG. Senator Cummins, when you say that question of taking over the railroads is now of course an academic question, there are other questions that of necessity the committee will have to consider, and additional legislation which may be recommended, and probably will be recommended by the President in his message to Congress. Your idea is that we should consider the whole subject of the questions raised by the commission's recommendations except the taking over, and any questions that may be raised by the communication of the President to Congress, is it not? Senator CUMMINS. Continuing my answer and completing it, to the chairman's question, I think there is the subject of the necessary legislation. I think there is the question, including the question of compensation, which is a very vital and important one, and the only thing that has been done that would narrow the limits of the inquiry, or the range of the inquiry, is the determination that it is necessary to take them over. The ACTING CHAIRMAN. Of course our proceedings are subject to the pleasure of the committee. Speaking for myself, as one member of the committee, as I recall the report of the Interstate Commerce Commission, it suggested that something would have to be done to help the railroad situation of the country, and suggested, among other things, that one thing which might be done would be for the Government to take control of the railroads, and the President has done that. That seems to be an accomplished fact-if he has the constitutional and legal authority to do it and I assume that he has indicated also that he would appear before Congress and ask for certain appropriations to carry out the measure which he has initiated. Senator KELLOGG. Appropriations or guarantees. The ACTING CHAIRMAN. Guarantees, I believe is the way he put it, and it seems to me that about all there is left for Congress to do is to either grant or refuse the legislation which he asks us to pass upon, or the wisdom of the legislation he asks, as far as any inquiry into the subject of what is best to do with the railroads of the country is concerned. Now, it seems to me our deliberations on that would be academic, because something has already been done. In my opinion the scope of the inquiry has been materially narrowed, and it is simply up to Congress to decide whether they will or will not grant the legislation to follow up what the President has done. But I suppose there is no objection to the committee getting all the light that it can from the members of the Interstate Commerce Commission and the managers of the railroads, or anybody else, for that matter. That is a matter that is subject to the pleasure of the committee. What is the pleasure of the committee? Senator KELLOGG. I would like to suggest to the chairman that this information which the committee asks of the commission seems to bear right on that question very materially, of what guarantees the Government should make, and I suggest that we go ahead now and put in these tables, and by that time Senator Pomerene may be here, and he may want to take part in any general examination of the commission that may be had. The ACTING CHAIRMAN. I think myself it would be proper at the beginning to make these tables a part of our proceedings, if you will make a motion to that effect. Senator CUMMINS. Mr. Chairman, the tables, while they are very well prepared, are understandable to those who care to devote a good deal of time to their study. We are preparing information for the members of the Senate, and we ought to lay that information before them in the form in which it would be most accessible to them, and the easiest to comprehend and to handle, and I want, myself, to examine one or more members of the commission with regard to those tables. The ACTING CHAIRMAN. Certainly there could be no objection to that. I thought we could put them in the record first and supplement them by examining the members of the commission afterwards. Senator CUMMINS. I would have no objection to that. |