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3. Is conducting an active campaign for the conservation of facilities through intensive loading of cars, locomotives, etc., evidenced by statistics for the six months April to September, 1917, thus: Two hundred and four billions seven hundred and three millions ton-miles have been handled on Class I roads (gross revenues exceeding $1,000,000 per annum), representing about 95 per cent of their total traffic, or 34,060,000,000 per month, an increase of 20.3 per cent over the average ton-miles handled per month in 1916, and 50 per cent over the monthly average of 1915. Estimating therefrom the tonmileage for the whole year would produce the astounding total of 409,405,000,000, an increase of 135,164,000,000 over 1915. A conception of the magnitude of this additional business thrown upon and handled by our American roads may be formed thus: The tonmileage, according to the latest statistics available, of the railroads of Canada, Germany, Great Britain, Russia, France, and Austria (excluding Hungary), embracing 178,542 miles of line, serving a population of 323,000,000, is 137,928,000,000, or substantially the same as the increase only of the traffic on our lines in two years.

Another way in which to visualize this accomplishment: In the first six months after we entered the war the railroads handled as much freight traffic as they did in the entire year 1906. In 1906 the average freight train was 344 tons, compared with 675 tons in the six months following the declaration of war. If traflic of these six months in 1917 had moved in the same average train load as in 1906, 96 per cent more freight-train service would have been required. The actual freight-train miles run in six months were 330,000,000. On the basis of the train load of 1906, 645,000,000 miles would have had to be run. The saving of 315,000,000 freight-train miles effected by this increase in trainload is the only thing which has maintained the solvency of our railway system, in the face of almost stationary freight and passenger rates and enormously increasing expenses of all kinds.

Efficiency of the plant has been increased in every direction. The number of freight locomotives in service has been increased by greater speed in repairing in order to reduce the time in shops. The same result has been accomplished as to freight equipment. Tons handled per car and per train have increased, as have the average miles run per locomotive and per car per day. The resultant effect of all of these economies is shown in the 1,094,800 ton-miles handled per month per locomotive, an increase of 16 per cent, for the six months ending September 30, 1917, and the 14,670 ton-miles handled per freight car, in the same period-an increase of 14.2 per cent-in each case over the preceding year. In effect, this added 4,897 locomotives and 339,427 freight cars to the equipment of the carriers. Two thousand eight hundred and forty locomotives and 141,475 freight cars on the average were ordered annually between 1907 and 1916; this addiional equipment, therefore, was equivalent to the immediate delivery, without cost, of one year and nine months' locomotive orders and two years and four months' car orders.

Through the acquiescence of the public and the consent of State commissions, 28,656,983 unnecessary passenger train-miles have been discontinued, resulting in saving 1.800.000 tons of coal per annum, and the release of 570 locomotives and 2.800 train and engine men for freight service.

4. Developed a policy of relocating cars by ordering their movement empty. Since May 1 orders for moving 222,027 cars have been issued, of which 188,286 have been delivered off the initial lines. This change from previous policy is the most radical and far-reaching act that the committee has ever authorized. It has relieved the congested eastern and seaboard areas and has increased car supply on southern and western lines. The movement has been very expensive to the roads that moved the empties, but all orders have been cheerfully and promptly obeyed.

Under what is known as the Esch car-service act, placing the control of cars used in interstate commerce in the Interstate Commerce Commission, the Chief of the Division of Car Service, and the examining attorney of the Division of Car Service, of the Interstate Commerce Commission, have been sitting regularly with the Commission on Car Service since the 29th of May, 1917, thereby subjecting all orders issued by the commission on car service to the approval of the Interstate Commerce Commission.

5. Created the coordinating committee on exportations, whose function is to assemble information in relation to the bottoms, both in port and in transit, available for export shipments, in order to divert traffic where necessary to prevent congestion and to expedite shipments. The committee consists of chairman of the commission on car service, a special representative of the executive committee, together with representatives of the Army, the Navy, the Shipping Board, the Food Administration, the British ministry of shipping, and the traffic representative of the allied Governments. This committee has regulated the movement of grain for export, reducing the number of cars required without blocking port facilities.

6. In collaboration with the Committee on Coal Production of the Council of National Defense it brought about the pooling of Lake and tidewater coals, reducing the number of classifications from 677 to 97 of the former, and from 900 to 125 of the latter, which resulted in the much more expeditious movement of cars and vessels, and thereby conserved transportation.

Great anxiety prevailed throughout the summer and autumn for fear that the necessary tonnage of lake coal to the northwest and of ore from lower lake docks could not be moved before the close of navigation. These requirements have been satisfactorily met. These fears were inspired by alarming reports of shortage of coal published in many parts of the country. This shortage is due chiefly to the enormous increase in the demand for coal, and to faulty distribution, and can not fairly be attributed altogether to lack of transportation. The records of the railroads show not only that the coal operators have produced more coal than ever before, but that in the eight months, April to November, inclusive, the railroads have hauled and delivered 1,101,677 more cars of anthracite and bituminous coal than for the same months in 1916, an increase of 15 per cent in anthracite and 18 per cent in bituminous, over the best record ever previously made. The railroads have not been able at all times to carry all the coal offered, but has any other industry responded more efficiently to the demands created by the war than these statistics show the railroads to have done? And the railroads have accomplished what they have under the greatest difficulties, which we shall mention in detail hereafter. The coal problem is not, as has been represented, alto

gether one of transportation. It is primarily a problem of distribution, for which the public must share the responsibility. The present system of distribution involves a great amount of cross-haul of coal, and a resulting large waste of transportation. The remedy, which doubtless requires surrender of convenience and old habits, is clear; it is to cause coal to be supplied to every section from the mines nearest that section. No one unacquainted with the facts can conceive the unnecessary long hauls of coal which have grown up under the right of the shipper to route his coal as he pleases. Whatever may have been the justification for it in normal times, this practice effectually reduces the efficiency of the transportation facilities in the time of the heaviest traffic ever experienced.

7. It has recommended to the Food Administrator to transfer the movement of foodstuffs and other export material to southern and Gulf ports to as large a degree as compatible with public interest in order to relieve the congested eastern territory of an equivalent amount of train service. The recommendation was put in effect

at once.

8. In conferences with the Priorities Committee of the General Munitions Board it has taken steps to expedite material required in the construction of locomotives and cars.

9. It has arranged for the great simplification of the accounts relating to Government transportation, which greatly expedites the movement of Government freight, and for a central accounting bureau through which the centralization of all transportation accounts against the Government are to be handled.

10. It has submitted to the War Department a simplified basis for military war tariffs and forms of waybilling and assessing freight charges on Army impedimenta.

11. It has prepared designs for armored cars and special equipment for hospital and troop train service, and has arranged to build sample cars for them.

12. It has prepared complete routing charts for the use of the Government in moving troops between military posts and to mobilization points, cantonments, and points on the Mexican border and Atlantic and Gulf ports, whereby 2,052,418 troops have been moved to date in 36,735 passenger and 10,640 freight cars, assembled in 3,603 special trains, winning the following commendation of Q. M. Gen. Chauncey D. Baker:

One million troops have been mobilized without the slightest disturbance to commercial traffic, and if the public knew what the railroads have done, the self-sacrifice, the long hours the various heads of the roads have put in, there would be no criticism

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And from Secretary of War Baker this:

Commenting on the work done by the railroads in connection with the mobilization, Mr. Baker said figures now available show that since early in August, when large troop movements began, the roads have transported 502.000 soldiers to various points without any serious derangement of their regular passenger schedules and at the same time have absorbed an enormous additional freight traffic brought on by war conditions.

"This strikingly illustrates," he added, "the patriotic cooperation of American railroads with the Government, and also the tremendous capacity of American railways." (New York Herald, Sept. 24, 1917.)

13. It has devised great simplification of accounts and has systematized settlements between the Government and carriers, eliminating large volumes of correspondence and red tape. Under these simplified plans the accounting for the movement of troops and thousands of cars of their impedimenta has been handled without friction or interference with the ordinary business of the carriers.

14. In has created a subcommittee on express transportation, composed of the vice presidents of the American, Wells-Fargo, Adams, and Southern Express Companies, to coordinate the work of their companies with the general problem of transportation.

15. It has moved 134,653 cars of building material and supplies to cantonments for the Government and 10,282 cars for account of the United States Shipping Board, a total of 144,935 cars, in such a way as to merit the following commendation of Col. I. W. Littell, in charge of the construction of cantonments, on September 5:

In the construction of the cantonments to date 50,000 carloads of material have been transported and been delivered at the sites-an enormous tax on the already overburdened railroads of the country. The railroads, however, have given splendid service. All Government orders have been given precedence and the lumber and other supplies needed have been rushed to the cantonments in record time.

SOME THINGS THE WAR BOARD HOPES TO DO.

1. To abolish crosshaul of coal. The attention of the Fue! Administration was directed on the 22d of November to the great importance of making a survey of present contracts and methods of purchases and shipment of coal, so as to shorten the rail haul from mines to consumers and to eliminate as far as possible all crosshauling of coal by the railroads. This recommendation, accompanied by a plan following that devised in England for the same purpose, carefully worked out under the direction of the War Board, was repeated on December 19, and if carried out will greatly reduce unnecessary car mileage and promote the free movement of coal to an incalculable degree.

2. To remove a fruitful cause of congestion by securing coordination of Government shipping agencies. A method of notifying railroads of the necessities of the several departments of the Government, by means of certified car orders and a special waybill envelope, was inaugurated. The indiscriminate application of this system to many shipments not entitled to preference is largely responsible for the congestion of the eastern trunk lines, one of the most important of which finds that 85 per cent of its entire traffic is covered by preference envelopes. To relieve the congestion it has been necessary to suspend the operation of this plan pending action on the War Board's recommendation that a Government traffic director be appointed, who shall coordinate all agencies of the Government concerned with the shipment of freight, determine to what, if any, preference in movement they are entitled, and prevent conflicts in priority by routing all commercial as well as Government freight.

3. To produce greater improvement in the loading of freight cars. Much has been made, but much more is attainable. The loading of grain in bulk has been notably bad, but the effect of assistance promptly given by the Food Administrator is already showing

results. Present reconsignment privileges should be curtailed and charges therefor increased. This privilege has been the cause of vexatious delay in movement and unloading of equipment; great increases in the daily car movement of coal as well as other commodities can be secured by curtailing and penalizing the privilege, which, however, can be done only if and when approved by the Interstate Commerce Commission. The matter has also been taken up with the Fuel Administration. A reduction in free time allowed to unload cars before demurrage attaches and rapid, progressive increase in demurrage charges will greatly improve car movement and supply. Experience on the Pacific coast, where these measures have been adopted, proves the adequacy of the remedy. The cooperation of the public that was there secured should be obtainable elsewhere. 4. To curtail passenger travel greatly by imposition, through the appropriate agencies, of sufficiently restrictive rates.

5. To increase the common use of terminals of one carrier by another. The common use of terminals and running tracks under trackage contracts is by no means uncommon, and under the stress of threatened congestion the principle is being urged and increasingly used.

6. To interest Federal authorities in the paramount necessity of providing and conserving railroad labor, which we refer to hereafter in greater detail.

DIFFICULTIES THAT HAVE HAMPERED THE RAILROADS.

We have shown what the war board has done and what it hopes to do; it is not out of place to mention some of the obstacles in the way of securing greater transportation output.

1. The difficulties presented in handling a movement of freight exceeding by far anything ever experienced were greatly increased by the call to move over 2,000,000 troops, and thereafter to meet the demands created by their absence from home for facilities to visit their families and to permit their families to visit them. This stimulus and that of unparalleled industrial activity have steadily increased passenger traffic, which showed an increase of 23 per cent in October this year over last. The latest data available show increases of 6 per cent and 14 per cent, respectively, in mail and parcel-post traffic (years ended June 30, 1916 and 1917), and 20 per cent in express traffic (nine months of calendar years 1916 and 1917).

2. The serious congestion on eastern lines caused by the abuse of waybill preference envelopes by Government agents has already been mentioned.

3. The railroads have not motive power enough. Approximately 3,400 locomotives and 33,000 cars are still under order, the delivery of which has been deferred for military reasons. The National Government, recognizing its duty to its allies, determined that it was more necessary, first, that the needs of railways in France, which were to be used by our troops, for 2,331 locomotives, should be taken care of; second, that certain requirements of the British, for 296 locomotives, should be protected; and, third, and most of all, that Russia's requirements, for about 1,600, must be filled. We were told that we must take care of the transportation needs of Russia, and every energy was bent on that, and we were deprived of our locomo

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