A
A 516171
UNIVERSITY OF PENNSYLVANIA
RAILROAD FREIGHT CAR SERVICE:
}~
1
CONTROL BY THE CAR SERVICE DIVISION
OF THE AMERICAN RAILWAY ASSOCIATION
SHIH-HSUAN KING
A THESIS
IN ECONOMICS
PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL IN
PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR
THE DEGREE OF DOCTOR OF PHILOSOPHY
PHILADELPHIA
1927
ང
1

ARTES
LIBRARY
1817)
20
VERITAS
UNIVERSITY OF MICHIGAN
TILULILUE UNUM
TUBBOR
SCIENTIA
OF THE
BI-QUÆRIS PENINSULAM-AMŒNAM).
CIRCUMSPICE
ANDA JADA DATA INDAREINIGERIANS
Kucistem
LINTEGRONIKINIKIKING

RECEIVED IN EXCHANGE
FROM
Pennsylvania Univ. Library
TF
662
.K54
RAILROAD FREIGHT CAR SERVICE:
CONTROL BY THE CAR SERVICE DIVISION
OF THE AMERICAN RAILWAY ASSOCIATION
SHIH-HSUAN KING
A THESIS
IN ECONOMICS
PRESENTED TO THE FACULTY OF THE GRADUATE SCHOOL OF THE
UNIVERSITY OF PENNSYLVANIA IN PARTIAL FULFILLMENTt
OF THE REQUIREMENTS FOR THE DEGREE
OF DOCTOR OF PHILOSOPHY
PHILADELPHIA
1927
3
To
My Teacher
Emory R. Johnson
Copyright 1927
2 7RZ
PI
Milda Jonath
ACKNOWLEDGMENT
The writer is greatly indebted to Messrs. M. J. Gormley,
Chairman; C. A. Buch, Secretary; W. C. Kendall, D. D. Conn,
L. M. Betts, W. J. McGarry, and W. D. Beck, Managers, of the
Car Service Division of the American Railway Association, for
their assistance and suggestions in the preparation of this book,
the manuscript of which some of them have read. He is also
very grateful to the Pennsylvania Railroad Company, Phila-
delphia, Pa., the Interstate Commerce Commission, Washington,
D. C., and the Bureau of Railway Economics, Washington,
D. C., for their assistance in his study of railway transportation
in the United States. .
He desires to take this opportunity to express his deep appre-
ciation of encouragement and inspiration that he has received
from Drs. Emory R. Johnson, Professor of Commerce and
Transportation and Dean of the Wharton School of Finance and
Commerce, and Grover G. Huebner, Professor of Commerce and
Transportation, University of Pennsylvania.
March 10, 1927
SHIH-HSUAN KING.
TF
6 62
K54
CHAPTER I
Introduction: Adequate Transportation Service.
CONTENTS
CHAPTER II
The Car Service Division: History, Powers and Organization.
Freight Car Requirements and Supply...
CHAPTER III
.
CHAPTER IV
Control of Freight Car Supply and Distribution: Supervision of Car
Service Rules and Territorial Adjustment of Freight Car Surplus
and Shortage.
CHAPTER V
Control of Freight Car Supply and Distribution: Major Problems...
Control of Traffic Movements.
Conclusions....
CHAPTER VI
CHAPTER VII
Control of Freight Car Performance..
•
CHAPTER IX
PAGE
Appendices: Tables and Charts.
7
14
. 21
32
43
CHAPTER VIII
Regional Shippers' Advisory Boards: Origin, Organization and Activities. 72
55
67
78
83
CHAPTER I
INTRODUCTION: ADEQUATE TRANSPORTATION SERVICE
This paper discusses the system of control of freight car service
by the Car Service Division of the American Railway Association,
and shows how that system has enabled the steam railroads in
the United States to provide adequate transportation service
to the public.
To provide adequate transportation service to the public
is the primary obligation resting upon the railroads. The test
of adequacy of transportation service is whether freight cars
are promptly furnished to the shippers for loading of freight,
and whether freight is promptly moved to destination for delivery
to the receivers.
Since the summer of 1923, the railroads in the United States
have continuously provided adequate transportation service.
While railway freight traffic has increased during the past four
years, there have been no transportation difficulties, congestion,
or car shortage, except in certain isolated instances of a
temporary nature. In 1926 the greatest volume of railway
freight traffic ever tendered by the shippers for transportation,
averaging over a million car loadings a week, was moved by
the railroads not only without transportation difficulties but
also with the greatest speed and despatch yet attained by
American railroads.
This adequate and efficient transportation service has pro-
duced far-reaching effects on both the railroads and the public.
It has contributed largely to the placing of business on a stable
basis, and has enabled industry to maintain smaller stocks than
has ever possible been before. This has resulted in sub-
1 Chart I in the appendices shows a consistent annual increase of average
weekly revenue freight car loadings, a continuous surplus of freight cars above
traffic requirements, and a reduction of freight accumulations almost to the
vanishing point.
8
Railroad Freight Car Service: Control by the Car Division
stantial savings to the public.2 Moreover, railway revenues
have been increased, and public relations have been improved.
Prior to 1923, car shortages and freight accumulations were
seasonal in nature and nation-wide in scope, appearing in 1916,
1917, 1918, 1919, and 1920, and again in 1922-1923. The
inadequate and uncertain transportation service gave rise to
bitter arraignment of the railroads. Shippers complained of
loss of profit, and consumers of extortionate prices. The rela-
tions of the carriers and the public were strained. The railroads
were not able to fulfil their obligation of providing adequate
transportation service, and the regulation of railroads by the
government did not fully accomplish its purpose.
The improvement of transportation service since 1923 is in
itself a remarkable accomplishment. More remarkable is the
fact that this improvement has been brought about by using
no more freight cars and locomotives than were in service in 1920.
The contemporary development of co-operative efforts among
carriers and between carriers and shippers is fundamentally
responsible for this remarkable improvement of transportation
service. When the greatest of car shortgage and freight accu-
mulations occurred in 1922-1923, the public despaired of the
inability of the carriers to move products, and agitated for
intervention by the government. This caused the railroads to
come together on April 5, 1923, and to adopt a "Program to
Provide Adequate Transportation Service."3 This Program
was "to make effective the continuation of the active co-opera-
tion by the managements of the several carriers as a whole and
to provide adequate transportation for the country's growing
requirements." It called for large capital expenditures for
betterments and additions to road and equipment, reduction
of freight cars and locomotives in need of repairs, improvement
in freight car loading and movement, complete co-operation
with the Car Service Division of the American Railway Asso-
2 The relationship of adequate transportation service and business is dis-
cussed in detail by Carlson S. Duncan (Economist of the Association of
Railway Executives): Some Business Aspects of Adequate Transportation
Service, Harvard Business Review, January, 1926, pp. 145–152.
a American Railway Association: Program to Provide Adequate Trans-
portation Service in 1923-1924.
of the American Railway Association
9
ciation, and establishment of intimate relations between carriers
and shippers.
Large capital expenditures for betterments and addi-
tions to roadway and structures and equipment, including
locomotives and cars, have increased the physical capacity and
the efficiency and economy of operation of the railroads. While
the line mileage of road owned has slightly decreased, the miles
of tracks operated have steadily increased. Although the total
number of freight cars remains almost unchanged, one-third
of them have been installed during the past six years, and the
Sim-
average carrying capacity has gradually increased.
ilarly, although the number of locomotives has slightly decreased,
nearly one-sixth of them have been installed during the past
six years, and the average tractive power also has increased.
In other words, instead of increasing the number of freight cars
and locomotives, the American railroads have installed larger
cars and more powerful locomotives, retiring lighter and obso-
lete types.
Equipment has been kept in more serviceable condition.
There are fewer locomotives and freight cars in need of repairs.
Freight cars have been moved faster than ever before. The
performance of equipment has been improved. The average
train load has increased. The average freight car load has not
been materially increased because light-loading commodities
now constitute a larger share of the total traffic than was
formerly the case.
To meet satisfactorily transportation requirements of the
country as a whole and in different sections is dependent not
only upon the number and kinds of cars owned by the rail-
roads, but also upon the method of the distribution of cars
among them in accordance with their relative requirements.
During recent years, a more effective system of control of
freight car supply and distribution on and between the rail-
roads has been worked out by their central agency, the Car
* Tables I, II, and III in the appendices show the relative growth of railway
freight traffic and transportation facilities on all steam roads from 1920 to
1925, equipment installed, retired, and in need of repairs, and freight car
performance on Class I roads from 1920 to 1925.
10
Railroad Freight Car Service: Control by the Car Division
Service Division of the American Railway Association. The
movement of traffic from loading points to terminals or markets
has been gradually brought under control. Shippers have come
to understand the carriers' problems, and have co-operated with
the railroads through the Regional Shippers' Advisory Boards.
The Car Service Division is a central agency of the member
railroads of the American Railway Association. It is given
power to preserve equity between the railroads as regards
freight car supply and ownership, and is also authorized to deal
with the Interstate Commerce Commission in all matters con-
cerning freight car service on and between the railroads. It is
empowered to take such expedient action as is necessary to meet
any car shortage or transportation emergency that may arise.
on any road or in any territory. It was first organized in 1917
to meet the War transportation emergency. Its head office is
maintained at Washington, D. C., and a number of district
offices are located at strategic points in different sections of the
country.
Experience of the Car Service Division shows that there are
certain fundamental difficulties in connection with the provision
of adequate transportation service by the railroads in the United
States:
(1) In the past there has been lack of adequate information
as to freight car requirements and as to car supply; conse-
quently, supply and requirements have not been equalized.
The Car Service Division has made studies of economic and
transportation conditions throughout the country, and has
obtained from shippers periodical reports of car requirements
and from carriers statistics of car supply.
(2) Car shortages in the past have been accentuated by the
non-observance of the Car Service Rules, which govern the return
of freight cars after leaving the home road, by the misuse of
foreign cars, and the consequent unequal distribution of cars
among various roads. The Car Service Division has effectually
supervised the enforcement of the Car Service Rules, and has
thereby brought about a more equitable distribution of cars.
among various roads and territories. It has also taken charge
of the territorial adjustment of car surplus and shortage by
of the American Railway Association
11
¡
suspending the Car Service Rules 1 to 5, inclusive, when neces-
sary, or by transferring cars from one road or territory to another
with due regard to both car ownership and traffic requirements.
The most difficult problems insofar as car supply and distribution
are concerned are the supply and distribution of box cars for the
transportation of Western grain, of refrigerator cars for the
transportation of perishables from the Pacific Coast and the
Southeast, and of open-top cars for the transportation of coal.
It is with these three problems that the Car Service Division
has been most concerned.
1
(3) Another difficulty in the past has been the frequent
accumulation of traffic at terminals and the lack of a co-ordinated
system of control over traffic movements by carriers and shippers.
The Car Service Division has put into effect a uniform embargo
system. It has developed various methods to promote a regular,
orderly movement of traffic from shipping points to trans-
shipment points and to terminals. It has conducted an active
campaign to expedite the loading and unloading of cars by
shippers and receivers and to eliminate delays in the handling
of cars by carriers.
(4) Car shortages in the past have been somewhat caused
by the slow movement and light-loading of cars. The Car
Service Division has constantly called the attention of carriers.
and shippers to the necessity of faster movement and heavier
loading of cars.
(5) Car shortages or unsatisfactory transportation service
caused shippers to complain to the Interstate Commerce Com-
mission or to the various state commissions. In order to promote
the informal settlement of complaints and to secure the co-
operation of the public in car service matters, the carriers have
brought about the establishment of the Regional Shippers'
Advisory Boards in different sections of the country. These
Boards have co-operated with the railroads in anticipating and
estimating car requirements, adjusting car supply and distri-
bution, controlling traffic movements, and promoting car per-
formance.
12
Railroad Freight Car Service: Control by the Car Division
REFERENCES TO CHAPTER I
This paper is based primarily upon the publications of the Car Service
Division of the American Railway Association and upon information secured
by the writer from personal interviews with the staff of the Car Service Di-
vision. The most important references for the entire subject under discussion
are enumerated here while those for particular phases of the subject are given
in the respective chapters.
American Railway Association, Car Service Division:
Annual Bulletins, from 1922 to 1925.
Reports to the Board of Directors of the American Railway Association,
quarterly (usually in March, May, September, and November), from
1923 to 1926.
Program of Railroads to Provide Adequate Transportation Service in 1923-
1924.
Proceedings of the organization and regular meetings of the Regional
Shippers' Advisory Boards, quarterly, from 1923 to 1926.
Transportation Report to the U. S. Agricultural Commission, January 5,
1925.
Proceedings of the joint conference of the Regional Shippers' Advisory
Boards at Chicago, January 7-8, 1926.
Circulars and orders to the railroads and circulars to the shippers, issued
from time to time.
Conn, D. D. (Manager of Public Relations Section): Charts and State-
ments relating to the Future of Public Relations, an address at the annual
meeting of the Transportation Division of the American Railway Asso-
ciation, April 30, 1924.
Kendall, W. C. (Manager of Railroad Relations Section): Service of
American Railroads Past Performance and Future Expectations, an
address at the Farmers and Grain Dealers Association of North Dakota,
at Bismarck, N. D., March 26, 1925.
K
Bureau of Railway Economics, Washington, D. C.:
Statistics of Railways of Class I in the United States, 1916–1925.
Interstate Commerce Commission:
Annual Reports to the Congress, 1920-1926, inclusive, sections on service.
Car Supply Investigations, 12 I. C. C. 398, 1907, and 42 I. C. C. 661,
1917.
Statistics of Railways in the United States, annual, 1924.
Official Railway Equipment Register, published by the Railway and Equip-
ment Publication Co., New York City, monthly and quarterly; 1926.
of the American Railway Association
13
U. S. Congress Joint Agricultural Inquiry Commission:
Report on Transportation, 1922.
U. S. Railroad Administration:
Reports of the Director of Operation for 1918 and 1919.
Huebner, G. G., and Johnson, E.R.: Railroad Freight Service, 1926, Chapters
II-V Freight Car Service.
Jones, E.: Principles of Railway Transportation, 1924, Chaper XIX Service.
Loree, L. F.: Railroad Freight Transportation, 1922, Part V Movement of
Cars.
Vanderblue, H. B., and Burgess, K. F.: Railroads—Rates, Service and
Management, 1923, Part III Service.
14
Railroad Freight Car Service: Control by the Car Division
CHAPTER II
THE CAR SERVICE DIVISION: HISTORY, POWERS AND
ORGANIZATION
At the outset it may be interesting to trace the development
of the Car Service Division of the American Railway Association
since its creation in 1917. The story of the change from the
chaos and confusion in 1916 and 1917 to the order and calm
confidence in the years since 1923 is full of interest.
The Car Service Division was primarily a product of trans-
portation emergencies of the railroads, which were marked by
the non-observance of the Car Service Rules and retention of
foreign cars, car shortages, and terminal congestion, and followed
by public complaints and government investigations. Such an
emergency arose first in 1916 and 1917. Prior to that time, the
railroads had generally rendered a satisfactory transportation
service insofar as car supply is concerned except in 1906 and
1907. As a result of the unprecedented War traffic, an alarming
nation-wide car shortage developed. No road respected the
ownership right of another: foreign cars were held for continuous
local use despite the Car Service Rules which govern the return
of cars to the owning road. The Interstate Commerce Com-
mission made a far-reaching investigation of car supply in
November, 1916. Then, on May 29, 1917, the Esch Car Service
Act was passed, authorizing the Commission to suspend the
Car Service Rules and to issue orders directing the supply and
movement of cars from one road to another. Before the passage
of the Esch Act, the Commission had no power to regulate
car service saving by means of an administrative finding of
facts where discrimination had been found to exist.
During the progress of the investigation by the Commission,
the American Railway Association gave plenary powers to super-
vise Car Service and Per Diem Rules to its Commission on Car
¹ 42 I. C. C. 661, decided in January, 1917.
of the American Railway Association
15
Service, which had been originally created in 1912. In February,
1917, however, the Association reorganized this Commission
and appointed five railroad officers of practical experience,
fairly representing the different sections of the country. The
new Commission was to sit at Washington, D. C., so that it could
co-operate with the Interstate Commerce Commission in the
administration of the Car Service Rules and make such modifi-
cations in the Rules as were found necessary. When the Rail-
roads' War Board was created in April, 1917, this Commission
on Car Service became a part of its organization. In December,
1917, the Eastern railroads took a further drastic step by pooling
their coal-carrying cars, that is, by placing them in common
use without regard to ownership. This represents the first stage
of the development of the Car Service Division.
2
A
Although the railroads tried hard to demonstrate to the
government that they could meet the War transportation
emergency and that government control was unnecessary,
they were taken over by the federal government on January
1, 1918. The Commission on Car Service then became the Car
Service Section of the Division of Operation of the U. S. Railroad
Administration, and was empowered to deal with all matters
relating to car service. During the period of federal control,
freight cars were used without regard to ownership, terminal
facilities were placed in joint use, and traffic movements at
important gateways were jointly controlled.
The third stage of the development of the Car Service Division.
came in 1920. The federal control terminated on March 1,
1920, under the terms of the Transportation Act of 1920, which
gives the Interstate Commerce Commission vast powers to
regulate car service. The Commission on Car Service was again
created by the American Railway Association, and in September,
2 The Car Service provisions of the Transportation Act are incorporated in
the Act to Regulate Commerce, Sec. 1, paragraphs (10) to (17), inclusive.
All carriers are required to furnish safe and adequate car service, to make
just and reasonable distribution of coal cars, and to file their rules and regula-
tions with respect to car service with the Commission. The Commission is
authorized to establish rules and regulations with respect to car service when
it deems necessary to do so, and to direct car supply, distribution, and move-
ment in case of emergency.
16
Railroad Freight Car Service: Control by the Car Division
1920, its name was changed to the Car Service Division. In
1920 there was a sudden and unprecedented demand for trans-
portation while owing to the federal control the common use of
equipment and the neglect of repairs had reduced the standard
of maintenance. Both the Interstate Commerce Commission
and the Car Service Division acting to meet the emergency,
issued orders directing fleet movements of cars from one road to
another practically without regard to ownership.
In 1921 and 1922, traffic was considerably reduced, and there
was a huge car surplus. But the greatest car shortage since
1907, when figures of car surplus and shortage were first col-
lected, took place in the fall and winter of 1922 and the spring
of 1923. The shortage was preceded by the strikes of coal
miners and railroad shopmen. Once again, the Interstate
Commerce Commission and the Car Service Division found it
necessary to issue orders relocating cars from one road to another.
The Commission entered an investigation in December, 1922,
regarding the adequacy of locomotives and cars, and another
in January, 1923, as to the efficiency and economy of railroad
operation. Both investigations, however, were later dismissed.
3
The public agitation during this transportation emergency
produced the now famous railroad program adopted on April
5, 1923, which represents the fourth stage of the development
of the Car Service Division.
The authority of the Car Service Division to control freight
car service is given in the Car Service and Per Diem Agreement,
and in Rule 19 of the Code of Per Diem Rules, endorsed by all
of the member railroads of the American Railway Association.
This agreement gives the Car Service Division plenary powers
to "co-operate with the Interstate Commerce Commission in
all car service matters on and between all railroads," and as the
agent of the railroads, to receive from the Commission all orders
and directions with respect to car service in accordance with the
provisions of the Transportation Act.
Per Diem Rule 19 defines in detail the duties of the Car Service
Division as follows:
8 I. C. C. Dockets Nos. 14489 and 14556.
of the American Railway Association
17
(a) To supervise the application of Car Service and Per Diem Rules.
(b To suspend or permit departures from Car Service Rules 1 to 5,
inclusive.
(c) To exempt when necessary, cars of any types from the provisions of
Car Service Rules 1 to 5, inclusive, and provide other regulations under which
such cars shall be handled.
(d) To transfer cars from one railroad or territory to another when neces-
sary to meet traffic conditions, with due regard to car ownership and require-
ments (see note).
(e) To conduct investigations, including examination of car records, as
may be necessary to insure the observance of Car Service and Per Diem
Rules, and of any orders issued by the Car Service Division, and in the event
that they are unable to adjust such matters with the individual railroads,
report all the facts with a recommendation to the Board of Directors.
(f) To obtain car location statements and other car performance statistics
as deemed necessary.
(g) To take necessary action to bring about uniformity of practice among
railroads by the standardization of car distribution rules, including car record
and report forms.
(h) To make recommendations to the Board of Directors when in their
opinion a change in the per diem rate is necessary or desirable.
(i) To perform such other duties as may be assigned by the Board of
Directors.
The Car Service Division is one of the many committees
or divisions of the American Railway Association, which is the
central organization of steam railroads in the United States,
Canada, and Mexico, and whose purpose is "by recommendation,
NOTE TO (d). This provides an adjustment of surplusages and shortages,
and is intended to suggest an equalization of service so far as practicable and
consistent with car ownership. By the latter is meant that if one railroad
has, in its good judgment, provided amply for its coal-loading patrons, for
example, while another has not, and the demand is generally equal to supply,
the mines of the first will not necessarily be depleted in order that the mines
on the improvident road may be the better served. Generally, as between the
provident and improvident roads, it must be recognized that if in time of
great car demand the latter has to be assisted for the benefit of its patrons
and its territory at the expense of the former, there must necessarily be set
up some method of compensation for the former, and this of necessity may go
beyond mere car hire. In treatment of "short lines", or "feeders", without
any appreciable car ownership, such lines be given a measure of car supply
from trunk lines" consistent with current distribution percentages on such
trunk lines; in other words, they must be treated as industries on the trunk
line connection.
18
Railroad Freight Car Service: Control by the Car Division
to harmonize and co-ordinate the principles and practices of
American railroads with respect to their construction, mainte-
nance, and operation."4 The Association has a Board of Di-
rectors, an Executive Committee, a President, two Vice-
Presidents, a General Counsel, and a Secretary-Treasurer. The
work of the Association is conducted through seven main di-
visions, namely, Operating, Transportation, Traffic, Engineering,
Mechanical, Purchasing and Stores, and Freight Claims; and
four special departments known as the Car Service Division,
the Committee on Automatic Train Control, the Committee
on Fuel Conservation, and the Committee on Inspection of
Standard Materials.
The Car Service Division situated at Washington, D. C.,
has a Chairman and six members, chosen on a territorial basis,
all of whom are appointed by the Board of Directors of the
American Railway Association. Having grown since 1923,
its organization now consists of a head office at Washington,
D. C., thirteen district offices in different sections of the country,
and a number of Car Service Agents. It is also the sponsor for
the organization of the fourteen Regional Shippers' Advisory
Boards, which furnish a general channel of contact between
carriers and shippers.
At the head office at Washington, D. C., are the Chairman,
one Secretary, and five Managers each in charge of a particular
phase of control of freight car service. The Manager of the
Railroad Relations Section deals with all questions relating to
Car Service and Per Diem Rules, and takes general charge of
Car Service Agents. The Manager of the Public Relations
Section supervises the relations between the Car Service
Division, shippers and shippers' organizations, governmental,
state, county, and municipal authorities. The Manager of the
Closed Car Section supervises the location, re-location, and dis-
tribution of closed cars, including box, stock, and ventilated
cars. The manager of the Open Car Section supervises the
location, re-location, and distribution of open cars, including
coal, hopper, mill-type, and flat cars. The Manager of the
¹ American Railway Association: Articles of Organization, 2.
of the American Railway Association
19
Troop Movement Section supervises all matters connected with
the movement of troops. In addition, there is a Manager in
charge of the location, re-location, and distribution of refrigerator
cars with office at Chicago.
The control of feight car service by the Car Service Division
has been decentralized and improved. The country is divided
into fourteen districts, and District Managers are assigned to all
districts, but one, which is taken care of by the head office of
the Car Service Division. The geographical assignments of
these District Managers and the location of their offices are
shown on Map I in the appendix, and their duties are briefly
as follows:
(a) To establish and maintain a closer and local relationship with railroad
officers, to the end that car distribution may meet most effectually the demand
of commerce and Car Service Rules be understood and observed.
(b) To provide a neutral point of contact with shippers and their asso-
ciations for the purpose of a mutual understanding of common problems,
particularly to secure their co-operation in the enforcement of Car Service
Rules by a knowledge of their underlying principles and of the necessity for
the Rules in order to equalize car distribution between different sections of
the country.
(c) To localize the supervision over the work of Car Service Agents
engaged in checking the observance of Car Service Rules and special instruc-
tions, and by a close contact with the operating conditions in each territory,
to insure the practical application of such regulations.
To assist the Car Service Division and its District Managers
in the enforcement of Car Service Rules and the supervision
of other related car service matters, a number of Car Service
Agents are employed. Each Agent is assigned to an individual
area within which he attends to car service matters in a manner
similar to that employed by the District Managers.
To solicit the practical co-operation of shippers and their
organizations in all matters with respect to car service, the Car
Service Division has organized in territories where the District.
Managers are located the Regional Shippers' Advisory Boards, the
origin, organization, and activities of which will be discussed later.
20
Railroad Freight Car Service: Control by the Car Division
REFERENCES TO CHAPTER II
American Railway Association, Car Service Division:
History, Organization, and Duties of the Car Service Division, I. C. C.
Docket No. 17000, ex parte 87, Aishton exhibit No. 1, I. C. C. No. 4, 1925.
Circular to all railroads, District Managers, and Car Service Agents,
January 11, 1923, in which the duties of District Managers and Car
Service Agents are outlined.
Conn, D. D. (Manager of Public Relations Section): The American Railway
Association-its Organization and Functions, an address at the Spring-
field Traffic Club at Springfield, Ohio, March 8, 1923.
of the American Railway Association
21
CHAPTER III
FREIGHT CAR REQUIREMENTS AND SUPPLY
In the past one of the fundamental difficulties in connection
with the provision of adequate transportation service has been
the lack of information as to the freight car requirements of the
shipping public and the freight car supply of the railroads.
Consequently, there has been an inability to balance the two
factors. The Car Service Division has attempted to obtain
information upon which to estimate and anticipate car require-
ments of the country as a whole as well as of different sections
and that upon which to determine car supply of various railroads.
The volume of car units required to meet the loading orders of
the public is affected by
(1) The volume and character of railway traffic;
(2) Changes in production and consumption of commodities
resulting in annual fluctuations of railway traffic;
(3) Uneven distribution of commodities depending on busi-
ness policies regarding stocks, storage facilities, etc., which causes
seasonal fluctuations of railway traffic;
(4) Inter-relationship of the density of population and the
location of industries and agricultural products in different
sections of the country and the currents of railway traffic.
Before describing the methods employed by the Car Service
Division to estimate and anticipate car requirements, it is
necessary to discuss briefly each of the above factors.
The volume of railway freight traffic can be measured by
tonnage originating, ton-miles, or cars loaded. The last named,
although it takes no account of either tonnage or mileage, is
preferred to the other two for the purpose of estimating car
requirements. Average weekly car loadings of revenue freight
have been compiled by the Car Service Division since October,
1917, from the member railroads of the American Railway
Association, including not only Class I roads but also some
terminal and switching companies. Car loadings are grouped
22
Railroad Freight Car Service: Control by the Car Division
into grains and grain products, live stock, coal, coke, forest
products, ore, merchandise-L. C. L., and miscellaneous, and
all member roads of the Association are assigned to one of the
following districts for statistical purposes: Eastern, Allegheny,
Pocahontas, Southern, Northwestern, Centralwestern, and
Southwestern.
Revenue freight car loadings have consistently increased from
year to year as shown on Chart I, rising from 44,592,089 in
1918 to 45,118,472 in 1920, 51,177,962 in 1925, and 53,309,644 in
1926. In 1920 there were first recorded several "million car
weeks", which, however, have become common since 1923.
The magnitude of the task of loading one million cars a week can
be understood better when compared with the fact that freight
cars in the United States amount only to approximately two
and a half millions.
Car requirements are somewhat affected by a change from
heavy-loading, low-grade commodities such as coal to light-
loading, high-grade commodities such as merchandise, or vice
versa. In each year since 1922, car loadings have exceeded those
in 1920, and yet the increase in ton-miles from 410,306,209,802
in 1920 to 413,823,173,485 in 1925 has been relatively small.
This is primarily because of the change of the relative shares.
of various commodities to the total traffic."
The annual and seasonal fluctuations of railway freight
traffic reflect the spasmodic, irregular demand for transporta-
tion, and result in excessive peak car loadings, acute car shortages,
and freight accumulations, or excessive valley car loadings and
huge car surpluses. Annual traffic fluctuations are caused by
changes in the production and consumption of commodities,
¹ Distribution of car loadings by commodities:
Grains and Grain Products..
Live Stock.
Coal.
Coke.
Forest Products.
Ore....
Kat
•
404
·
--
***
• ma
• ·
M
13. ...
Ma
Ca
• · WIN A
22.4
1.4
6.8
5.3
20.0*
36.6
* Not comparable with subsequent years partially included in Miscellaneous.
--
•
•
•MA ·
Merchandise-L.C.L.
Miscellaneous....
**
***
*-*
***
...
...
•
**
•
...
124 G
BORD
·· .J.
• 4
...
... • Spa
T
• A
Match
·
*.•
Mar 2
1 to 4
SEA
-Ra 1.32
Outd
...
HOT A
AD &
P
...
***
**
LEA
jad (
Mar 3 ***
1920
4.1
3.4
.. ***
1925
4.5
3.2
17.3
K
1.2
7.3
4.0
25.7
36.8
of the American Railway Association
23
that is, the changing economic activities of agriculture, industry,
and commerce. Thus, the great business expansion during the
War period of 1916, 1917, and 1918, the abnormal business
inflation in 1920, the depression in 1921 and 1922, the revival in
the second half of 1922 and in 1923, the recession in 1924, and
the prosperity in 1925 and 1926-have all affected an increase
or decrease in railway freight traffic. While seasonal fluctua-
tions of traffic returning year after year with great regularity
can be anticipated, a sudden business boom, accompanied as it
usually is by an unprecedented demand for transportation, is a
difficult problem.
Within each year railway traffic fluctuates in a fairly regular
manner, steadily declining from the spring until the summer,
then advancing from late summer to the fall and winter, and
declining again in late winter. This seasonal traffic movement
is caused, not by any changes in economic conditions or in the
supply of cars, but by nature's provision for the harvesting of
agricultural products, weather conditions in the more northernly
latitudes, and the practice of consumers in purchasing commodi-
ties according to their ability or inclination to meet their needs.
There are two characteristics of the seasonal traffic movement.
First, the peak or maximum car loadings always take place in
the second half of each year, and the minimum car loadings in
the first half. Secondly, the ratio of traffic transported in each
month or quarter to the yearly aggregate does not change
greatly from one year to another. The bulk of crops must of
necessity be shipped in the second half, and so, a shift of any
other commodity from the second to the first half will permit
an unusual opportunity for the constant use of every unit of
transportation facilities. Serious efforts have been directed
to the balancing of traffic between the four quarters of the year.
Coal consumers are urged to purchase and store coal in the
summer, and carriers to move their fuel supply and other com-
pany material in the first half.
The currents of freight traffic are primarily controlled by the
density of population, resources, and the location of industries.
In the Eastern District, that portion of the United States east
of the Mississippi and north of the Ohio and the Potomac, there
is 47.6 per cent of the total population in the United States,
}
24
Railroad Freight Car Service: Control by the Car Division
140 people per square mile, and 72.6 per cent of total manufactur-
ing industries measured by capital employed, but there originated
from this area on Class I roads in 1925 only 23.7 per cent of total
agricultural products, although the states of Ohio, Indiana and
Illinois included in this area are large agricultural states.² In
the Western District west of the Mississippi, there is only 32.7
per cent of the total population and 16 people per square mile,
but there originated in that area 72.1 per cent of grains, 49.1
per cent of citrus fruits, 53.0 per cent of other fresh fruits, 57.3
per cent of total agricultural products; 79.4 per cent of live
stock, 62.9 per cent of lumber, 53.5 per cent of forest products,
and 56.1 per cent of refined petroleum. In the Southern Dis-
trict, there is found only 19.7 per cent of the total population
and 46 people per square mile, but there originated in that
area 19 per cent of agricultural products, 47.8 per cent of citrus
fruits, 41.7 per cent of bituminous coal, and 25.7 per cent of
lumber.
2 Distribution of population, location of industries, and car-load traffic ·
originating on Class I roads by commodities in 1925:

Population...
Density of population per
sq. m. (1920)..
Manufacturing
...
❤ ·TA
Establish-
Grains.
Citrus fruits.
Other fresh fruits.
Animals and products..
Live stock..
Products of mines.
Bituminous coal.
Iron ore.
Products of Forests..
Lumber.
Manufactures and Miscella-
neous.
...
ments, capitalization (1919) $44,688,094,000
Products of agriculture..
•
•
•
•
•
• · GND
•
•
·
•
•
•
Refined petroleum.
Grand total car-load traffic.
UNITED STATES EASTERN | SOUTHERN WESTERN
47.6
19.7
32.7
46
16
19.3
57.3
72.1
49.1
53.0
72.1
105,710,620
35
4,674,218
1,263,926
84,926
436,381
2,215,166
1,557,609
PER CENT TO TOTAL

140
18.4
3.1
24.1
20.3
13.6
13,476,425
43.2
6,613,177
40.3
1,318,612
6.6
3,831,885 12.5
3,694,741
11.4
10,944,078
1,636,527
35,141,772
72.6
23.7
60.7
35.6
41.0
8.1
19.0
9.5
47.8
22.9
7.6
7.0
26.7
41.7
4.7
34.0
25.7
11.1
10.3
20.9
79.4
30.1
18.0
88.7
53.5
62.9
28.2
56.1
38.1
This table is adapted from Mr. M. J. Gormley's Distribution of Freight
Cars from a Nation-wide Standpoint, except that figures of car-load traffic
are brought up to date.
of the American Railway Association
25
It is obvious that a considerable portion of agricultural
products in the West and the South must be shipped for con-
sumption to the densely populated and industrialized East. The
return traffic, primarily of manufactured articles, is not only
of small tonnage, but also requires fewer cars because manu-
factured articles are in concentrated form and originate in
certain definite localities. Furthermore, those agricultural
products in the West and the South destined for export are
necessarily moved through the seaports on the Atlantic and the
Gulf. Coal, the most important item of traffic, is also moved
eastward to the households and industrial plants and to the
tidewater ports. Hence, there are predominant East-and North-
bound traffic movements.
The greatest problem in connection with the distribution of
Creight cars in the United States, therefore, is to secure a return
from the East to the West and the South of cars arriving with
Western and Southern products. Those railroads serving the
producing territories in the West and the South have generally
built up an adequate car supply as to take care of traffic originat-
ing on their lines, but as the number of cars owned is but a por-
tion of what are needed to move all the traffic in a given season,
such cars as move out to the railroads in the consuming terri-
tories must necessarily be promptly returned, or, there will be a
car shortage on the originating roads. On the other hand, in
the Eastern consuming territory, the problem is not one of
freight car supply, but one of securing the prompt unloading
by the receivers of cars arriving from the West and the South
and the prompt movement of empty cars away from stations or
terminals. Failure to do so will cause congestion at terminals
and on the lines of the East and a car shortage in the West
and the South.
The methods employed by the Car Service Division for the
estimation and anticipation of car requirements consist of the
survey of economic and transportation conditions throughout
the country, the reports of car requirements by the shippers,
and the processes of estimation.
After discussing the factors that affect car requirements,
it is evident that in order to arrive at an estimate of car require-
26
Railroad Freight Car Service: Control by the Car Division
ments, we must take into account the production, consumption,
and distribution of those commodities largely entering into
railway traffic, that is, the changing business conditions. There
are available today comprehensive business statistics relative
to production, orders, stocks, and unfilled orders of various
commodities; commodity prices, bank clearings, money rates,
stock and bond quotations, etc., which can be used to forecast
the general trend of business and the probable railway traffic.
The Car Service Division has made use of these data in order
to gauge production, shipments, and in some cases, prices, of the
most important commodities, and to trace seasonal fluctuations.
as well as variations from year to year in the commodity move-
ments.3
A further helpful step was taken when the country was divided
into fourteen districts each under a District Manager. In each
district, the agricultural, industrial, and transportation problems
are of a like nature, and the District Manager is expected to be
familiar with them. But it was not until the Regional Shippers'
Advisory Boards were organized that the Car Service Division
began to make any great progress in estimating car requirements
with reasonable accuracy.
The most reliable estimate of car requirements is that based
on the reports made by the shippers. In past years, it was a
general custom that during times of car shortage, the shippers
would order more cars than they actually needed, believing
that they might get at least their proportionate share. As a
result of this custom, some shippers would get more than their
share while others would get nowhere near their actual require-
ments. The inflation of car orders was, in some cases, materially
responsible for car shortages. When the Regional Shippers'
Advisory Boards were organized, their many commodity com-
mittees were required to prepare quarterly statements of car
requirements and of the prevailing conditions of business. On
the basis of these statements, the number of cars required for
outbound shipments from each of the various districts covered
by the Boards could be estimated three months in advance.
3 Car Service Division: Annual Bulletin.
of the American Railway Association
27
In no other way can territorial car requirements be accurately
estimated.
In addition to the quarterly statements, the Boards have
furnished from time to time special reports of car requirements,
notably the receivers' estimates of inbound shipments in Florida
and the shippers' estimates of grape car requirements in Cali-
fornia.
It was in connection with the railroad program adopted on
April 5, 1923, that the Car Service Division first developed a
fairly accurate method for estimating car requirements of a
short period. Before that time, no railroad had ever used any
systematic method for forecasting traffic. The method of the
Car Service Division is based on annual and seasonal fluctuations.
Car loadings in the first three months of each year are estimated
by
(1) Finding out the ratio of increase or decrease of actual
car loadings in the last three months of the immediate preceding
year over those in the corresponding period of the previous years;
(2) Applying this ratio of increase or decrease to actual
car loadings in the first three months of the immediate preceding
year;
(3) Making allowances for those known factors directly
related to car loadings, including the quarterly statements of
the commodity committees of the Regional Shippers' Advisory
Boards as already referred to, and special questionnaires sent
out to the shippers, asking for their actual car loadings in the
first three months of the previous two years, estimated car
loadings in the first three months of the new year, and prospects
for the entire new year.
Car loadings in the remaining nine months are estimated
on the basis of the seasonal movement of traffic. When the
first estimate was made in 1923, it was found that in the period
of 1918-1922, between 22 and 23 per cent of total car loadings
was handled in the first three months, variations from this
percentage in the several years being remarkably small; that
car loadings in the first three months would always furnish a
fairly good measure of what the traffic of the year as a whole
is likely to be; and that if this experience over a period of five
28
Railroad Freight Car Service: Control by the Car Division
years supplied a good basis of estimation, it would be possible,
in any year, about the first of April, to estimate the probable car
loadings of the remaining months. To this end, the Car Service
Division proceeded:
(1) To obtain the ratio of increase or decrease of actual
car loadings in the first three months of the present year to those
in the corresponding period of the immediate preceding year
or to an average of previous years;
(2) To apply this ratio of increase or decrease to the ratios
of the remaining months to the yearly aggregate in the preceding
year or years;
(3) To determine the peak load of the year.
In addition, any estimate of traffic must make provision for
any unforeseen factors such as prolonged industrial or railroad
strikes, other transportation disturbances, crop failures, etc.
The estimates of car loadings made by the Car Service Division
have proven to be fairly accurate, the percentages of discrepancy
being remarkably small. Estimated car loadings in 1923 were
2.0 per cent less than actual; 2.9 per cent more in 1924; and 1.4
per cent less in 1925.
Freight car supply, that is, the number of cars available for
transportation service, is affected not only by the number and
carrying capacity of cars owned, but also by their serviceable
condition, their efficiency in loading and movement, and the
availability of the motive power. Car shortages in the past were
accentuated by bad-order cars, light loading, slow movement,
or shortage of locomotives. While the information of car re-
quirements is of necessity obtained from the shippers, that of
car supply must come from the carriers, and from them the Car
Service Division receives the following reports:
(1) A monthly equipment ownership report shows the number
and aggregate carrying capacity of freight cars and the number
and aggregate tractive power of locomotives, both by classes,
owned, installed, retired, and on order.
(2) Two semi-monthly equipment condition reports: one
showing locomotives, by classes, on line, serviceable; stored,
* Aishton, R. H.: Forecasting of Railway Traffic.
of the American Railway Association
29
in or awaiting repairs, awaiting dismantling or sale, and turned
out of shops; the other showing freight cars, by classes, on line,
awaiting repairs, and repaired. A separate quarterly report is
made for passenger cars.
(3) A monthly statement of freight car mileage and tonnage
showing by the four directions, both loaded and empty car miles,
average cars on line daily, miles per car per day, both revenue
and none-revenue ton-miles, and tons per loaded car.
While the performance of freight cars will be analyzed and
discussed in Chapter VII, the ownership and condition of both
freight cars and locomotives are briefly analyzed here. The
number of freight cars owned by the railroads has remained
almost constant for several years. Class I roads owned 2,258,855
freight cars in the year ended June 30, 1915, 2,322,122 in the
calendar year of 1920, and 2,357,226 in the calendar year of
1925. The aggregate carrying capacity of freight cars on Class I
roads, however, increased, being 89,837,847, 98,342,666, and
105,569,386 tons respectively in these years. The serviceability
of freight cars has also been increased by the gradual substi-
tution of steel for wooden cars and the gradual standardization
of the design of cars and car parts.
Freight cars are classified by the Interstate Commerce Com-
mission into seven classes, namely, box, flat, stock, coal, tank,
refrigerator, and other. Box cars are the most commonly used
type of cars, constituting 45.7 per cent of the total ownership
and 40.2 per cent of the total carrying capacity on Class I roads
in 1925. Coal cars are the next in importance, making up 40.4
per cent of the total ownership and 47.1 per cent of the total
carrying capacity. All of the other type of cars combined had
only 13.9 and 12.7 per cent respectively.
The effect of the motive power on freight car supply is most
clearly revealed by reports showing the number of both loaded
* See Chart II, Freight car ownership, physical condition, and performance.
• In 1925 all steam roads owned 2,415,037 freight cars. In addition to the
railroad-owned cars, there were 262,725 private cars in 1924, according to the
Statistics of Railways in the United States for the calendar year of 1924,
p. 17. These private cars are primarily owned by industries interested in the
movement of their particular products such as petroleum, meat-packing,
coal, perishable, etc.
30
Railroad Freight Car Service: Control by the Car Division
and empty cars awaiting movement at stations or terminals.
The ownership of locomotives, both steam and other, was only
slightly increased from 62,125 in the year ended June 30, 1915,
to 64,732 in the calendar year of 1920, and to 63,975 in the cal-
endar year of 1925, on Class I roads. But their aggregate
tractive power was considerably increased, that of steam loco-
motives being 1,970,295,300, 2,340,761,196, and 2,586,821,720
pounds respectively in these years. In other words, instead of
building more locomotives, the American railroads have replaced
the existing engines by those of a more powerful type.
The general physical condition of equipment can be attested
by the number of bad-order cars or locomotives awaiting repairs
and the percentage of bad-order cars or locomotives awaiting
repairs to total cars or locomotives on line. Although the rail-
road program adopted on April 5, 1923, had fixed as its objectives
5 per cent of bad-order cars and 15 per cent of locomotives
awaiting repairs, these objectives have not been materialized.
REFERENCES TO CHAPTER III
American Railway Association, Car Service Division:
Aishton, R. H. (President of the American Railway Association): Fore-
casting of Railway Traffic, Chapter V of the Problem of Business Fore-
casting edited by W. M. Persons and others, 1924.
Gormley, M. J. (Chairman of the Car Service Division): Distribution of
Freight Cars from the Countrywide Standpoint, an address at the
American Association of Railroad Superintendents at Richmond, Va.,
June 18, 1925.
Betts, L. M. (Manager of Closed Car Section): Distribution of Freight
Cars in the United States, an address at the Traffic Club of Wheeling,
W. Va., November 6, 1923.
Conn, D. D. (Manager of Public Relations Section): Transportation
Problems, an address at the Milwaukee Traffic Club, January 22, 1923.
Chicago Commerce Association: Traffic Geography, 1915, Chapters IV-VII
Sources of Products of Commerce, Leading Products of Commerce, Factors
Developing Traffic Flows, and Transportation Services Required.
Friday, David, and Peabody, L. L.: Fluctuations in Railway Traffic, Chapter
VI of the Problem of Business Forecasting, edited by W. M. Persons and
others, 1924.
Harvard University: Harvard Economic Service, weekly, August 31, 1926,
Car Loadings as an Index of Business Volumes.
of the American Railway Association
31
McPherson, L. G.: Railroad Freight Rates, 1909, Chapters II-VI Channels
of Traffic, Preparation and Distribution of Raw Materials, Foodstuffs, and
Merchandise, and chapter XXII Commerce of The Cities.
Vanderblue, H. B.: Railroad Traffic and Business Cycles, Railway Age,
March 22 and April 5, 1924.
32
Railroad Freight Car Service: Control by the Car Division
CHAPTER IV
CONTROL OF FREIGHT CAR SUPPLY AND DISTRIBUTION:
SUPERVISION OF CAR SERVICE RULES AND
TERRITORIAL ADJUSTMENT OF CAR
SURPLUS AND Shortage
A second fundamental problem in connection with the pro-
vision of adequate transportation service has been the abuse
or misuse of freight cars used in interchange of traffic and the
uneven distribution of cars between the railroads in different
sections of the country. To meet this problem, the Car Service
Division has been authorized by the railroads to supervise the
location, relocation, and distribution of cars on and between
them. Specifically stated, it has been empowered:
(1) To enforce the observance of the Car Service Rules,
which govern the return of cars after leaving the home road;
(2) To suspend or set aside Car Service Rules 1 to 5, inclusive,
when necessary;
(3) To transfer cars from one railroad or territory to another
to meet the demand of traffic.
The basic principles underlying the Car Service Rules, the
methods employed by the Car Service Division for the enforce-
ment of these Rules, and the major problems of freight car
supply and distribution on and between the railroads will be
discussed in this and the next chapter. The interchange of
freight cars between the railroads, which arises from the neces-
sity of permitting the through movement of cars loaded with
freight from the point of origin on one road to destination on
another without breaking bulk at the junction point, is a well
established practice and must be sustained. There are two
fundamental problems arising from this practice: first, which
road, the originating or the receiving, should furnish cars neces-
sary for the inter-line traffic; and second, how the car supply
of the road furnishing such cars should be protected against
the abuse of cars by the road which receives them.
¹ Missouri & Illinois Coal Co. v. Illinois Central R. R., 22 I.C.C., 39, 1911.
of the American Railway Association
33
The significance of the first problem is predicated on the fol-
lowing propositions: if each road must furnish cars for all traffic
originated on its line, local and inter-line, this immediately
places the responsibility for car ownership on the road serving
the originating territory; on the contrary, if the destination
road should be required to send an empty car for each car-load
of freight received from the originating road for further ship-
ments, the responsibility for car ownership would then be
transferred from the originating to the receiving road. That
of the second problem is based on the following propositions:
if the originating road cannot be assured the fair use of its
equipment which should normally be returned to the territory
where it belongs and is wanted, except where there is a car sur-
plus, its incentive to purchase new equipment is extinguished;
on the other hand, if foreign cars are permitted to be sent home
empty in the direction the balance of traffic is moving, there is
no incentive to acquire new equipment on the part of the road
thus affected.2
Although the railroads have acquired equipment under varying
conditions and for various purposes, they have on the whole
provided equipment commensurate with the demand of traffic
originated on their lines.³ A grain road has generally provided
sufficient box cars to ship grain to destination, whether local or
otherwise, a coal road has purchased coal cars to the extent
necessary to take coal to market, etc., always provided that
cars leaving the owner's rails will be returned within a reasonable
time. The originating road by providing enough equipment to
take care of all of the traffic originating on its line can control the
flows of traffic and consequently has a competitive advantage.
It is to regulate the return to owners of cars used in inter-line
traffic and to prevent their misuse by foreign roads that the
Car Service Rules, past and present, have been prescribed by
the American Railway Association. Such Rules were first
* Report of the Committee on Car Service to the General Committee of the
Transportation Division, January 29, 1921, in which the problems of the
Car Service Rules are discussed in detail.
Preliminary report of the committee to devise a formula of car ownership
to the Committee on Car Service, October 24, 1921.
34
Railroad Freight Car Service: Control by the Car Division
adopted by the Association and made effective on January 1,
1893, and were entitled "Rules to Prevent Misuse and Diversion
of Freight Cars." Although many changes have been made
from time to time, the fundamental principles of these Rules
remain the same.
The Car Service Division has outlined the purposes of the
Car Service Rules as follows:4
(1) To keep cars on the lines of the owner to the greatest
extent possible, as cars can thus be kept in better physical con-
dition.
(2) Each railroad has purchased equipment which best
meets the needs of the shippers. By prompt relocation to the
owner, shippers are thereby assisted to the use of the particular
class and types of cars which best suit their individual needs.
(3) Loading cars to or via the owner line encourages such
line toward a program for increasing car ownership, which
naturally reacts to a better car supply for the shippers.
Co-related to the Car Service Rules are the Per Diem Rules,
which govern the payment of a rental per car per day to the
owner, and the Interchange or Master Car Builders' Rules,
which govern the physical care of cars used in interchange.
The present Car Service Rules consist of sixteen rules, but
the first five rules are the most important. The first rule
4 Car Service Division: Circulars to the shipping public, March 31, 1922,
October 19, 1923, and April 1, 1926.
5 Car Service Rules 1 to 5, inclusive, read as follows:
Rule 1. Home cars shall not be used for the movement of traffic beyond
the limits of the home road when the use of other suitable cars under these
Rules is practicable.
Rule 2. Foreign cars at home on a direct connection must be forwarded
to the home road loaded or empty except as provided in paragraphs (e) and (f).
If empty at junction with the home road and loading at that point via the
home road is not available, they must (subject to Rule 5) be delivered to it
at that junction, unless an exception to the requirement be agreed to by
roads involved. Otherwise, cars under this rule may be
(a) Loaded via any route so that the home road will participate in the
freight rate, or
(b) Moved locally in the direction of the home road, or
(c) Moved locally in an opposite direction from the home road, or delivered
to a short line or a switching road, if to be loaded for delivery on or movement
via the home road, or
(d) Delivered empty to home road at any junction point, subject to Rule
5, or
of the American Railway Association
35
provides that home cars shall not be used for off-line loading
when other proper ownership cars are available. This is a very
important rule, especially to the originating roads in the West
or the South, because the use of foreign cars for off-line loading
will help relocate cars to the owners and retain home cars for
local shipments.
The second rule provides that foreign cars on a directly con-
necting road shall be loaded back to the owner if loading can be
found. Foreign cars empty at the junction with the owner must
be returned at that point empty. Otherwise, cars may be handled
according to (a) to (f), inclusive. The enforcement of this rule
will relocate more cars to the owners than any other rules.
The third rule provides that foreign cars on other than a directly
connecting road must be loaded back to, via, or in the direction
of the owner if loading can be found. Otherwise, they shall be
sent back via the original route.
The fourth rule provides for the short-routing of empty cars.
When a road needs its own cars on a foreign road to be moved
back via the shortest route without regard to their original route
under load, it may do so at 6 cents per mile.
(e) Delivered empty to road from which originally received under load at
the junction where received, if such road is also a direct connection of the
home road, or
(f) Returned empty to the delivering road when handled in switching service
and owner is not a direct connection in that switching territory.
Rule 3. Foreign cars at home on other than direct connections must be
forwarded to the home road loaded or empty. Under this rule cars may be
(a) Loaded via any route so that the home road will participate in the
freight rate, or
(b) Loaded in the direction of the home road, or
(c) Moved locally in an opposite direction from the home road, or delivered
to a short line or a switching road if to be loaded for delivery on or movement
via the home road, or to a point in the direction of the home road, beyond the
road on which the cars are located, or
(d) Delivered empty to road from which originally received, at the junction
where received, if impracticable to dispose of them under paragraph (a),
(b), or (c) of this rule.
Rule 4. Empty cars may be short routed at a reciprocal rate of 6 cents
per mile plus bridge and terminal arbitraries, with a minimum of 100 miles
for each road handling the car, the road requesting the service to pay the
charges.
Rule 5. If a movement of traffic requires return of empty cars to home road
via the junction at which cars were delivered in interchange under load, the
home road may demand return of empty cars at such junction, except that
cars offered to home road for repairs, in accordance with Division V-Mechanical
(M.C.B.) Rules, must be accepted by owners at any junction point.
36
Railroad Freight Car Service: Control by the Car Division
6
The fifth rule provides that empty foreign cars on
a direct connection road may be returned to the owner
at the junction where delivered under load if the owner so desires.
Experience of the actual operation of the Car Service Rules
in the past thirty or more years shows that when the volume
of traffic is comparatively light and there is a surplus of cars,
these rules are generally observed, but when there is an urgent
demand for cars, they seem to be entirely neglected. The
percentage of home cars on home roads to total cars owned is a
good measure of the extent to which cars are being re-
turned to the owners. Reference to Chart III, Freight
Car Supply and Distribution, shows that the percentage of
home cars on home roads closely follows the percentage of
car surplus to total cars on line. When the available car surplus
diminishes, the percentage of home cars on home roads fa ls;
conversely, when the available car surplus increases, it rises.
W
The per diem charge for cars used in interchange is intended
primarily to cover the cost of car ownership, but partly to serve
as a means to secure the return of cars to the owner. When a
nation-wide car shortage developed in 1916 and the percentage
of home cars on home roads fell, the per diem charge was in-
creased from 45 to 75 cents in December, 1916. In April, 1917,
it was cut to 60 cents. During the period of federal control,
no per diem was required. In 1920, there was another car
shortage, and the per diem charge was increased from 60 to 90
cents in March, 1920, and to $1.00 in November, 1920, this
$1.00 rate being maintained ever since. Experience shows,
however, that during times of heavy traffic, there is a strong
inclination, on the part of those roads which have failed to
provide an adequate car supply, to hold and use foreign cars
no matter what is the per diem charge. On the other hand,
during times of light traffic, there is a general incentive to return
foreign cars to the owners in order to avoid the charge, or even
to load system cars off the line and to send foreign cars home
empty in order to earn the per diem. To use system cars for
off-line loading instead of foreign cars constitutes an actual
• I. C. C. car supply investigation, 42 I.C.C. 662, 1917.
of the American Railway Association
37
violation of the Car Service Rules while to return foreign cars
empty in the direction of the preponderant traffic movement is a
potential violation.
Even assuming that the Car Service Rules will be observed
and the car supply of the originating roads furnishing cars for
inter-line traffic will thereby be protected, the observance of the
Rules is conducive to empty mileage. It is provided therein.
that empty foreign cars shall, if there is no loading available
to, via, or in the direction of the home road, be returned empty
via the route they were received under load because of the
necessity of maintaining equity between loaded and empty
mileage. So, if there is loading at the point where a foreign car
was unloaded in a contrary direction to that from which the
foreign car was received, it is necessary to return the foreign
car empty and load another car. The relocation of foreign cars
empty via the original route under load instead of the shortest
possible route also results in empty mileage. More serious is the
cross empty mileage. Although the predominant loaded car
movement is East- and North-bound, the observance of these
rules permits the mutual return of foreign cars empty between
Eastern and Western and Southern roads. In times of car
surplus, Western and Southern roads are not infrequently inclined
to return box cars belonging to Eastern roads and fit for grain
loading on their lines although a short while later such cars are
needed for grain movement to the East. Nothing could be more
wasteful than this practice from the standpoints of both car
supply and performance.
Empty mileage is primarily caused by the necessity of relocat-
ing cars to loading points as will be described in Chapter VII.
But it is also caused somewhat by the re-location of cars accord-
ing to the Car Service Rules. Reference to Chart III shows
that the percentage of empty to total car mileage somewhat
follows that of home cars on home roads.
Whether the Car Service Rules afford the best means for
maintaining an adequate and equitable car supply on and
between the railroads, for protecting the investment of the car
owners, and for promoting efficiency and economy in the handling
of cars is a very controversial question. Some have suggested
38
Railroad Freight Car Service: Control by the Car Division
the abolition of these Rules entirely and instead the formation
of a car pool, that is, all cars would be placed in a pool and dis-
tributed to the shippers on various roads without regard to
ownership but according to loading requirements." Others
have advocated drastic methods to remedy the present Car
Service Rules, such as the definition of the relative obligation
of car ownership in relation to both local and inter-line traffic,"
the establishment of a general equalization arrangement by
which empty cars should be sent from the destination to the
originating road to match loaded cars received,' or the filing of
these Rules with the Interstate Commerce Commission as a
tariff.
Believing that any difficulty in the past arising from the
maintenance of equity between roads with respect to car supply
and ownership is due not so much to the Car Service Rules as to
the non-observance of these Rules, the railroads have agreed
to delegate to the Car Service Division plenary powers for
supervising the application of the Car Service and Per Diem
Rules and for suspending Car Service Rules 1 to 5, inclusive,
when necessary.
In exercising these powers, the Car Service Division has taken
the following steps:
(1) Beginning in 1923, all carriers were required to report
every month the observance and violations of the Car Service
Rules. The report shows:
7 See references to Chapter IX.
8 A special committee appointed by the American Railway Association to
devise a formula of car ownership held that a general formula could not be
devised to meet all circumstances. Preliminary and final reports of the com-
mittee, October 24, 1921, and June 1, 1923.
'A general equalization arrangement was put into effect on all roads from
October, 1920 to July, 1921, and was governed by the Regulations of Equaliza-
tion prescribed by the Car Service Division. Although this arrangement
would result in a faster return of cars to the owners, it fails to permit cars to
follow the natural flow of traffic, fails to take care of a situation when the
accumulation of cars in the destination territory is diminished, and fails to
assure equity between loaded and empty car mileage. It could not be applied
generally, and was abolished on July 1, 1921, and the old “home route rights"
principle was again adopted.
of the American Railway Association
39
(a) Foreign cars, box and open-top, loaded.
(b) Foreign cars, box and open-top, loaded in violation of the Car Service
Rules.
(c) Per cent of violation in foreign car loadings.
(d) Cars, box and open-top, handled contrary to Junction Rule 2.
(e) System cars, box and open-top, loaded.
(f) System cars, box and open-top, loaded to off-line points.
(2) A number of Car Service Agents are employed to inspect
on the ground the observance of the Car Service Rules.
(3) Appeals are made to the railroads to educate their station
agents, yard masters, and car distributors as to the necessity of
observing the Car Service Rules.
(4) The shipping public is similarly requested to load cars
in accordance with the Car Service Rules, to order cars for
shipments as much in advance as possible, to specify the full
routing, and not to reload empty cars at plants contrary to
these Rules.10
The Car Service Division has also exercised its power of
suspending Car Service Rules 1 to 5, inclusive. The notable
examples are the prohibition of local movement on Eastern
roads of box cars belonging to Western roads in an opposite
direction to the home roads as is permitted by Rule 2 (b) and
(c), and 3 (c); the prohibition of the return of Eastern box cars
empty on Western roads; and the prohibition of the loading on
foreign roads of coal cars belonging to several roads in the Poca-
hontas Region.
On account of the active supervision by the Car Service
Division, particularly since the adoption of the railroad program
of 1923, the Car Service Rules have been better observed even
in times of an urgent demand for cars. Reports to the Car
Service Division show a steady improvement of the observation
10 Car Service Division: Circulars to the shipping public, March 31, 1922,
October 19, 1923, and April 1, 1926.
40
Railroad Freight Car Service: Control by the Car Division
of these Rules," and it is felt that this improvement has been
partly responsible for the fact that the railroads have been able
to handle unprecedented traffic without a serious car shortage
in the past two or three years.
The Car Service Rules are filed with the Interstate Commerce
Commission, not as a tariff as is frequently proposed, but in
accordance with the provisions of the Transportation Act of
1920, which require the filing of rules and regulations with
respect to car service, and authorize the Commission to suspend
any of the rules and regulations and to establish other rules and
regulations in case of necessity. During the periods of car
shortage in 1920 and 1922, the Commission issued car service
orders directing the movement of cars, but set aside the Car
Service Rules only to the extent that they were in conflict with
its orders.
The Car Service Division is not only authorized to supervise
the application of the Car Service Rules but also empowered to
transfer cars from one road or territory to another in order to
meet any emergency. Past experience shows that when there
is a general car shortage, a car surplus is often found in some
portion of the country, and conversely, when there is a general
car surplus, a car shortage may be found on some roads. This
represents an uneven distribution of cars between roads. For
example, car surpluses and shortages appeared at the same time
in 1916, 1917, and 1918, as shown on Chart I. Since 1919, an
11 The record of the observance of the Car Service Rules from May, 1923,
to December, 1925, is as follows:*
1924
1925
79.2%
84.2
82.3%
84.8
81.9
82.4
Total foreign box cars used properly.
Total foreign open-top cars used properly..
Total foreign box and open-top cars used
properly..
·
4 v 1
..
GYD SAT 2
•
A
System box cars loaded.
System box cars loaded off-line...
CAR
CA A
•
W
LUS
•
*
awa
1923
(8 MONTHS)
79.1%
82.9%
79.9
1924
1923
(8 MONTHS)
3,997,826 9,765,840
15.1% 18.4%
1925
13,119,950
21.3%
* Report of the Car Service Division to the Board of Directors of the
American Railway Association, May 19, 1926, p. 15.
of the American Railway Association
41
improvement in this respect has been made, reflecting a more
even distribution of cars than was obtained in previous years.
The necessity of transferring cars from one road or territory
to another may be caused by one of the following factors:
(1) Some roads are adequately equipped in proportion to
the volume of traffic originating on their lines, and others are not.
(2) Some roads, although adequately equipped, may be
deprived of the use of their equipment by those roads which are
under-equipped.
(3) In a continental country like the United States, economic
interests in different sections are greatly diversified. A sectional
business boom may cause a sectional transportation shortage.
For instance, during the phenomenal business boom in Florida
in 1925, the railroads serving that section could not meet all
the demands of traffic moving into Florida; and the unpre-
cedented winter wheat movement in the Southwest in 1926
taxed the full capacity of the Southwestern railroads.
(4) Considering the huge task of distributing almost two
and a half million freight cars to a vast number of shippers
exactly where and when they are needed, it may be said that
car shortages local in scope and confined to a short period in
the fall are unavoidable.
The territorial adjustment of car surplus and shortage con-
stitutes a real problem. An individual road is not vitally inter-
ested in any car shortage on other lines except possibly its
immediate connections, nor is it under obligation to assist others.
However, the railroads have voluntarily agreed to authorize
the Car Service Division to transfer cars from one road to another
with due regard to both car ownership and traffic requirements.
The Interstate Commerce Commission also has power to direct
the supply, distribution, and movement of cars between roads
under the authority of the Transportation Act of 1920.
It is clear from the foregoing discussions that the underlying
task of the Car Service Division is, first, to maintain a satisfactory
car supply between roads as far as possible to the extent of their
respective car ownership, and second, if their car ownership fails
to take care of their traffic demands, to mobilize cars from those
roads which met their own traffic requirements and are still in a
42
Railroad Freight Car Service: Control by the Car Division
position to give assistance. To do these two things, the Car
Service Division must have full knowledge of the current situa-
tion of car surplus and shortage and the location of both system
and foreign cars. It has, therefore, inaugurated a system of
reports of car supply and distribution as follows:
(1) A weekly report of average daily revenue freight car
surpluses and shortages shows the car surplus or deficiency by
classes, and the number of cars stored for special or future.
loading. The average daily car surplus is obtained by dividing
total empty serviceable cars on hand in excess of shippers'
orders by the number of working days during the period of the
report; the average daily car shortage by dividing total car
shortages during the period by the number of working days.
Cars stored for special loading such as grain, perishables, etc., are
reported as surplus, but with a note stating the number and
for what purpose they are stored.
(2) A semi-monthly revenue freight car location summary
gives the number of cars by classes, owned or leased, home cars
on home roads, total cars on line, and per cent of cars supplied
on loading orders. The last named is obtained by dividing the
average daily number of cars supplied by the average daily
loading or shipping requirements (that is, the actual ability of the
consignor to produce, load, and ship). Dividing home cars on
home roads by total cars owned gives the percentage of home cars
on home roads, and dividing total cars on line by total cars owned
shows the percentage of cars on line, both of which are important
factors of control of car supply and distribution. The latter
indicates whether the car supply on various roads is excessive
or deficient, and the former reveals the extent to which cars
used in inter-line traffic are returned to the owners.
(3) A semi-monthly statement of foreign freight cars on
line shows the number of foreign cars by classes on line.
of the American Railway Association
43
REFERENCES TO CHAPTER IV
American Railway Association:
Codes of Rules: Car Service, Per Diem, Interchange or Master Car
Builders' and Switching Reclaims.
Original and amended forms of Car Service Rules in effect from January 1,
1893, to July 1, 1921.
Original and amended forms of Per Diem Rules in effect from July 1, 1902,
to September 1, 1923.
Reports of the Committee on Car Service to the General Committee of the
Transportation Division, particularly the report dated January 29,
1921, which discussed the problems of the Car Service Rules.
Gormley, M. J. (Chairman of the Car Service Division): A Study of Empty
Mileage and Car Service Rules, an address at the annual meeting of the
Transportation Division, April 19, 1922.
Voorhees, T.: Freight Car Service, a chapter in The American Railway, 1889.
See also references to Chapter IX.
44
Railroad Freight Car Service: Control by the Car Division
CHAPTER V
CONTROL OF Freight CAR SUPPLY AND DISTRIBUTION:
MAJOR PROBLEMS
The control of freight car supply and distribution on and
between the railroads by the Car Service Division is of a general
nature, and is concerned only with a few major problems. The
Division takes direct control of car supply and distribution in
three different cases:
(1) On the request of one or more railroads. Whenever one
road finds that it has not an adequate car supply to meet its
traffic demands, it will, first of all, call on its immediate con-
nections for assistance either by promptly returning its own
cars or by delivering cars belonging to the connections for its
use. Later the road may find it necessary to call for the assist-
ance of its direct and indirect connections through the District
Managers of the Car Service Division who are charged with
taking care of local problems. Finally, it may appeal to the
Car Service Division at Washington, D. C., to handle the situa-
tion.
(2) On the complaint as to car supply and transportation
service by the shippers to the Car Service Division or the Inter-
state Commerce Commission.
(3) On its own initiative to correct or improve certain
conditions.
The Car Service Division is only concerned directly with the
problems of box car supply and distribution in relation to the
transportation of Western grains, refrigerator car supply and
distribution in relation to the transportation of perishables
from the Pacific Coast and the Southeast, and open-top car
supply and distribution in relation to the transportation of coal.
How the Division has attended to these three problems is dis-
cussed in this chapter.
Box cars are the most numerous and the most commonly used
type of freight cars in the United States. They numbered
1,078,000 out of a total ownership of 2,357,000 cars on Class I
of the American Railway Association
45
roads in 1925. Box cars are used to transport commodities
which must be protected against weather, such as agricultural
products, lumber, manufactured articles, and merchandise.
However, it is not the problem of box car supply and distribu-
tion in general but their relation to the transportation of Western
grain that constitutes the most difficult transportation problem
in this country. Prior to 1923, there was a regular, seasonal
car shortage on Western roads during the season of the grain
movement, and the Car Service Division, ever since its organiza-
tion, has been chiefly concerned with this problem.
The railroads serving an agricultural district have generally
a more difficult task than those serving coal mines or manu-
facturing industries. Crops are raised on farms and are moved
from farms to country elevators and from there to markets
whereas coal and manufactured articles are shipped from certain
more or less definite localities. Furthermore, crops must be
away from farms promptly to avoid damage by adverse weather,
and therefore, the movement of crops is confined to the few
fall months following the harvest. In order to handle satis-
factorily this seasonal crop movement, the Western roads must.
gather an adequate box car supply in the loading territory in
advance of the harvest.
During the period of crop movement, it is always very difficult
to maintain an adequate box car supply on Western roads.
First, box cars are in universal use in all parts of the country
although the principal traffic for which they are provided differs in
different sections. To a certain extent, all box cars are similar,
but many box cars that are entirely suitable for manufactured
articles, lumber, or merchandise are unsatisfactory for grains,
which must be shipped in cars of rigid construction and abso-
lutely of no broken lining and defective sides or ends. Second,
the shipment of Western grains to Eastern and Southern markets
or for export sends many Western box cars away to Eastern
and Southern roads. If those Western box cars are not promptly
returned, they are apt to be scattered and used in other traffic
not requiring that type of cars, thus causing a box car shortage
on Western roads. Therefore, it is very essential that all West-
ern box cars moving out of Western roads must be returned
46
Railroad Freight Car Service: Control by the Car Division
promptly and continuously throughout the year, regardless of a
box car surplus or shortage on Western roads.
The Car Service Division watches very closely the current
situation of box car supply on Western roads. The percentage
of box cars on line and the percentage of home cars on home roads,
both of which are available from the semi-monthly car location
report, indicate whether their current box car supply is satis-
factory or not. In addition, the Car Service Division receives
a box car passing report showing the number of both loaded and
empty box cars moved East- and West-bound through certain
important gateways, such as Chicago, St. Louis, etc. This
passing report reveals the number of box cars returned from
Eastern and Southern to Western roads and also enables the
Car Service Division to take direct control of the despatching of
box cars at the gateways if an emergency arises on any Western
road.
Before and during the movement of Western grains every
year, the Car Service Division has found it necessary to call
the attention of Eastern and Southern roads to the transporta-
tion needs of Western roads and to the necessity of promptly
returning Western box cars according to the Car Service Rules.
The observance of Junction Rule 2, which requires that foreign
cars empty at the junction with the owner must be returned at
that point empty, is particularly emphasized. It has also urged
Western roads to use foreign cars for off-line loading to the
greatest possible extent and to hold their own cars for grain
movement. If these two appeals are not heeded, it has found
it necessary to protect the car supply of Western roads in one
of the following ways:
(1) By suspending Car Service Rules 1 to 5, inclusive. As a
result of the great car shortage in 1922-1923, Western box cars
were scattered all over the country, and the percentage of box
cars on Western roads was very low. For the purpose of pro-
tecting the seasonal grain movement in 1923, the Car Service
Division issued orders in April, 1923, requiring that Eastern and
Southern roads should promptly return Western box cars and
that they were prohibited from moving locally empty Western
of the American Railway Association
47
box cars in an opposite direction to the home roads as is per-
mitted by Car Service Rules 2 (b) and (c) and 3 (c)."
In 1924 the box car supply on Western roads was satisfactory.
But for the purpose of intensifying the observance of the Car
Service Rules, orders were issued prohibiting Western roads
from sending Eastern and Southern box cars, and Southern
roads from sending Eastern box cars, home empty except auto-
mobile and ventilated cars and cars released at junction points.2
(2) By transferring cars from one road to another by the con-
sent of roads concerned. During the car shortage in 1920, the
Car Service Division issued orders not only relocating Western
box cars but also transferring Eastern and Southern box cars to
Western roads.3 In other words, cars were handled without regard
to ownership. Again, during the heavy movement of winter wheat
in the Southwest in 1926, the Car Service Division first arranged
an equalization plan between roads north and south of Fort
Worth, Texas, by which deliveries of loaded grain cars were.
matched by return of empty cars in condition for grain loading.4
Then, it took control of the despatching of box cars at Chicago
and diverted to one road in the Southwest all available empty
cars fit for grain loading, regardless of ownership.s
In addition to the problem of maintaining an adequate box
car supply on Western roads, there is another factor affecting
the successful movement of Western grains, namely, the receiving
capacity of railroad terminals and public and private elevators,
which will be discussed in Chapter VI in connection with the
control of traffic movements.
There are three types of refrigerator cars used by the rail-
roads for the transportation of perishable products. One is used
to ship fresh meats requiring low temperature and no ventilation;
another, equipped with ice bunkers and ventilators, is suitable
under refrigeration or ventilation for all perishables other than
¹ Car Service Division: Box Order One, April 15, 1923.
2 Car Service Division: Box Order One, November 1, 1924, and Box Order
Three, November 10, 1924.
3 Car Service Division: A memorandum of box car distribution, August,
1923.
4 Car Service Division: Order, June 25-July 30, 1926.
5 Car Service Division: Order, July 8-18, 1926.
48
Railroad Freight Car Service: Control by the Car Division
fresh meats; and still another is insulated but without refrigera-
tion or ventilation and is used to ship ice or beer. The first type is
used exclusively by the meat-packing industry. Large packing
companies furnish their own refrigerator cars so that the rail-
roads only supply a small portion of refrigerator cars to the
small companies. The problem of the transportation of perish-
ables is confined to that of fresh fruits and vegetables requiring
refrigeration or ventilation.
The production and distribution of fresh fruits and vegetables
has become a highly specialized industry of national proportions.
Their abnormal growth from 500,000 carlots in 1918 to 900,000
in 1925 according to the U. S. Department of Agriculture, their
centralized production on the Pacific Coast and in the Southeast
with the chief markets in the territory east of Chicago, causing a
long haul from the producing to the consuming territory, and
the concentration of their transportation within a short period
of the year all these have caused during the peak movement car
shortages at shipping points, congestion at railroad terminals
and markets, retention of refrigerator cars by receivers, and
depression of prices to growers because of the over-crowding of
products at markets. The railroads, moreover, have found
it financially difficult to provide an adequate supply of refrig-
erator cars to take care of all of the perishable freight during the
peak movement, for these cars would necessarily be idle for
the greater part of the year.
In the territories producing large quantities of fresh fruits
and vegetables in the United States, private refrigerator car
lines have been organized by the railroads under contract to
furnish refrigerator cars to the shippers. For example, the
California territory is served by the Pacific Fruit Express con-
trolled by the Union Pacific Railroad and the Southern Pacific
Railroad, and by the Santa Fe Refrigerator Despatch controlled
by the Atchison, Topeka, and Santa Fe Railroad; the South-
eastern territory and a part of Michigan is served by the Fruit
• The problems of the transportation of perishables are discussed in detail
by the U. S. Department of Commerce in "Transportation of Pacific Coast
Perishables," 1924.
of the American Railway Association
49
Growers' Express controlled by a number of railroads in the
East and the South; the Southwestern territory is served by
the American Refrigerator Transit controlled by several roads
in the Southwest; and the Northwestern territory is served by
the Western Fruit Express controlled by the Great Northern
Railway.
The general schemes of control of refrigerator car supply and
distribution by those private car lines may be briefly stated here.
All leased and owned cars are distributed on and between con-
tract roads according to loading requirements instead of on the
basis of ownership, thereby considerably increasing the avail-
ability of equipment in service. Estimates of loading require-
ments at all shipping stations on contract roads are made peri-
odically by local agents. Interchange of equipment has also
been arranged between the Fruit Growers' Express and the
Western Fruit Express, the Pacific Fruit Express and the Santa
Fe Refrigerator Despatch so that cars can be transferred from
one territory to another. As the peak perishable movement from
the Pacific Coast takes place in September, October, and Novem-
ber, and that from the Southeast in May, June, and July, these
interchange arrangements have brought about a better dis-
tribution and use of refrigerator cars, and have effected a more
efficient and economical handling of perishables.
The Refrigerator Department of the Car Service Division
with office at Chicago takes charge of the location, relocation,
and distribution of refrigerator cars. The Refrigerator Depart-
ment was established in July 1918, as a part of the organization
of the Car Service Section of the U. S. Railroad Administration,
and its function was to control all the refrigerator cars owned
by railroads or privately, which were then pooled. After the
termination of the federal control of railroads, the refrigerator
car pool was dissolved. Under Per Diem Rule 19, the Refrigera-
tor Department still has control over railroad-owned refrigerator
cars, but it has no authority over private car lines although they
usually co-operate with one another. Both private car lines
and railroads that still furnish their own refrigerator cars report
to the Refrigerator Department their current refrigerator car
supply. A bi-monthly report shows the number of refrigerator
50
Railroad Freight Car Service: Control by the Car Division
cars on hand, loaded, and empty, and total owned while a daily
report gives the number of refrigerator cars ordered, available,
and loaded.
One of the most interesting methods developed by the Car
Service Division for controlling car supply and distribution is
the so-called California Grape Car Plan. On account of the
enormous growth of grapes in California and the concentration
of their shipments to Eastern markets in a short period of the
fall, the railroads serving California were unable to meet the
demand of all grape shippers in 1923, 1924, and 1925. While
they had no knowledge of actual grape car requirements until
ordered, the shippers' car orders were uniformly inflated beyond
their ability to pack and load." At the request of the railroads
in California, the Car Service Division undertook to handle the
grape movement in 1926. By co-operating with the Pacific
Coast Shippers' Advisory Board, the Interstate Commerce
Commission, and other federal and state authorities, a grape
car distribution plan was adopted by both circular and tariff,
effective from August 15 to December 31, 1926. The plan³
provided in substance that all grape shippers must guarantee
freight charges and file a joint surety grape bond, executed by a
bonding company, authorized to do business under the laws of
California; that all shippers must file a statement of approxi-
mate weekly car requirements ten days in advance of each weekly
shipping period; and that cars would be distributed during the
period of shortage on a basis of car requirements which had been
filed and substantiated as to tonnage and approved by the joint
railroad representative. The plan was executed by the Car
Service Division as the joint railroad agency with headquarters
at San Francisco. The state of California was divided into
eight shipping districts, each with a representative of the Car
Service Division. Co-operating with the Car Service Division
were a Grape Car Plan Committee representing the railroads,
and a special committee representing the Pacific Coast Shippers'
7 Car Service Division: report to the Board of Directors of the American
Railway Association, September 24, 1926, pp. 16-17.
8 Joint announcement of the California Grape Car Plan for 1926, June 18,
1926.
of the American Railway Association
51
Advisory Board. In each shipping district, there was a public
committee composed of growers, shippers, and bankers, which
served in an advisory capacity.
The plan was a success. Grapes were moved in 1926 without a
single day of car shortage. The weekly statements of approx-
imate car requirements gave a definite measure of the shippers'
intended forwardings in advance of actual loading, thus enabling
an opportunity for the promotion of a more even flow of grapes
to markets. The surety bond permitted all shippers to forward
grapes from any point on any railroad, thus allowing a greater
flexibility of grape shipments at loading points. The plan was
initiated as an experiment in the right direction, and may be
amended from year to year to meet the transportation require-
ments of the grape industry.
Open-top cars, including hopper, gondola, mill-type, and
flat cars, are used to ship coal, coke, ore, iron and steel, gravel,
sand, stone, and other heavy products, but the provision of an
adequate open-top car supply for the transportation of coal is
the most important problem.10 First, anthracite and bituminous
coal together constitutes the predominant item of railway
traffic. Second, due to the over-expansion of the bituminous
coal industry during the War period from 5818 mines with total
production of 416,000,000 tons in 1910 to 8921 mines with total
production of 564,000,000 tons in 1920, an increase of 53 per
cent in the number of mines and 36 per cent in production,
the railroads became unable to meet its transportation demands.
Third, the two periods of great car shortages in 1920 and 1922
were preceded by, and were the principal results of, labor strikes
in the coal industry. Each mine strike curtailed coal production
during the period of strike, resulting in a car surplus; but when
the strike was settled, coal production was accelerated in an effort
to recover from the suspension of mining, and consequently,
the car surplus was transformed into a car shortage. Fourth,
coal car orders were greatly inflated during the period of a
• Advance report of the California Grape Car Plan, November 1, 1926.
10 The problems of the transportation of coal are analysed in detail in the
report of the American Railway Association with the Conference Committee
of the U. S. Coal Commission, June 1, 1923.
52
Railroad Freight Car Service: Control by the Car Division
threatened or actual car shortage, cars furnished being less than
cars ordered, but at the same time in excess of cars loaded.
Finally, the difficulty of coal transportation has been due partly
to the irregular, seasonal demand for coal by consumers.
The Car Service Division supervises not only the location
and re-location of coal cars on and between roads but also the
actual distribution of same to mines. Because of the great
expansion of the coal industry and the keen competition between
various coal fields, the relative car supply to mines is a very
important factor. All carriers are required to make a weekly
open-top car report to the Car Service Division, showing open-
top cars actually required, furnished, percentage furnished,
loaded, and actually placed but not loaded. Another weekly
report gives a more detailed information of the operation of
coal mines, both anthracite and bituminous: cars required,
placed, percentage furnished, explanation for not supplying
maximum requirements (car shortage, labor troubles, specifying
whether railroad or mine, other causes); cars loaded, explanation
for not loading all cars placed; coal (in terms of cars) carried
over daily unconsigned, explanation, and coal cars carried over
daily at mines.
A mine ratings book is kept, giving the relative ratings of coal
mines established by the railroads and the amount of coal ship-
ment. This is to check the inflation of mine ratings.
The most difficult problem in connection with the transporta-
tion of coal is the maintenance of an adequate car supply on the
several roads serving the Pocahontas Region. The demand for
coal from the non-union mines in West Virginia and Kentucky
has been greatly increased since the Jacksonville wage agreement
became effective in union mines in Pennsylvania, Ohio, and other
states in January, 1923. But a more important cause is that
coal shipped by those roads is largely marketed on their con-
nections, and consequently, their coal car supply is apt to be
depleted during the heavy coal movement in the fall. As a
measure of protection, the Car Service Division has undertaken
to supervise the daily interchange of coal cars between those
roads and their principal connections at important gateways.
When more cars, loaded and empty, are delivered to than
of the American Railway Association
53
received from their connections, those roads are losing cars.
through interchange. Immediate action will be taken to correct
this situation by requiring the delinquent connections to make
up their deficiency of deliveries. A more drastic step of protec-
tion was taken when an order was issued in September, 1924,
prohibiting all coal cars belonging to those roads from being
used for any loading whatever on foreign roads even in the
direction of the home roads." This order is a deviation from
the Car Service Rules, but it has proven to be a very effective
means of maintaining a satisfactory car supply on those roads,
and is still in force. Finally, the Car Service Division is prepared
to transfer cars from other roads. For example, during the
anthracite strike from September, 1925, to February, 1926,
the demand for bituminous coal was greatly increased, and there
was a threatened car shortage on the Chesapeake and Ohio
Railroad. Several thousand cars were shifted to that road from
anthracite coal roads which had then a car surplus.
In
There are several other problems of car supply and distribution
that the Car Service Division has to look after, one of which is
the stock car supply on Western roads. There is generally a
plentiful stock car supply on Western roads for the movement
of live stock from ranches to markets in the Mid-west.
1922 there was a serious stock car shortage in the Southwest,
and the Car Service Division transferred stock cars from other
territories to meet the emergency. The movement of live stock
from the Mid-west to markets in the East has been greatly
helped by the Eastern Railroads' Stock Car Pool at Union
Stock Yard at Chicago. Several principal Eastern roads have
agreed to pool their stock car supply at Chicago under the
direction of a pool controller. The controller orders from mem-
ber roads of the pool stock cars necessary for their respective
loading requirements, and in case any member road fails to
furnish its quota, orders from members to make up the deficiency.
Another problem is the automobile car supply. The rapid
growth and the concentration of the automobile industry in the
states bordering Lake Michigan and the country-wide distribution
11 Car Service Division: Coal Order 411, September 23, 1924.
12
(
54
Railroad Freight Car Service: Control by the Car Division
of automobiles have caused some difficulty in maintaining an
adequate automobile car supply on the roads serving that
territory. The Car Service Division has found it necessary to
call the attention of all roads in the East, West, and South to
promptly returning automobile cars to the automobile territory.
Still another important problem is the box car supply on
Canadian railroads. The interchange of traffic between Canada
and the United States has generally resulted in the accumulation
of Canadian box cars in the United States. The Car Service
Division has on hand current information of box cars inter-
changed between Canadian and American roads, and has handled
the relocation of Canadian box cars much as it handled that of
Western box cars in the United States.
I w
Although one of the functions of the Car Service Division is to
standardize rules and regulations concerning car service, including
the distribution of cars to the shippers and the preparation of
car records, little has been done. It has up to the present promul-
gated uniform mine-rating rules for all roads, CS 31, revised, in
1925, grain car distribution rules for the Northwestern roads in
1923, and saw-mill rating rules for the Southeastern roads in 1924.
REFERENCES TO CHAPTER V
American Railway Association:
Report to the Conference Committee with the U. S. Coal Commission,
preliminary, January 3, 1923, and final, June 1, 1923.
American Railway Association, Car Service Division:
Orders to railroads.
Joint announcement of the California Grape Car Plan, June 18, 1926.
Rules governing the file of approximate car requirements, June 26, 1926.
Rules governing the file of surety bond, June 30, 1926.
Advance report of the California Grape Car Plan, November 1, 1926.
U. S. Congress Joint Agricultural Inquiry Commission:
Report on Transportation, 1922.
U. S. Coal Commission:
Annual report in 1925, two volumes.
U. S. Department of Commerce:
Transportation of Pacific Coast Perishables, 1924.
Florida Transportation Field Survey, 1926.
See also references to Chapter III.
12 Memorandum of the Agreement of Certain Eastern Railroads for the
Furnishing of Stock Cars at Chicago, February 1, 1925.
1
of the American Railway Association
55
CHAPTER VI
CONTROL OF TRAFFIC MOVEMENTS
Another fundamental difficulty in the past has been the
frequent accumulation of traffic at terminals and the resulting
congestion. The extent of the accumulation of traffic may be
measured by the number of loaded freight cars awaiting move-
ment, and from Chart I, it may be seen that freight car accumu-
lations have been reduced almost to the vanishing point since
1923. This improvement may be attributed primarily to the
active control of traffic moving on and between the railroads by
the Car Service Division.
Congestion of railroad terminals may be caused by the inade-
quate terminal capacity to receive cars, the shippers' disability
to unload and release cars promptly, an abnormal flow of traffic
moving into terminals, or other interferences with the normal
flow of traffic, such as labor strikes.
It is generally agreed that railroad terminal facilities have not
been increased in proportion with the rapid growth of traffic
for some years, and it would indeed be financially difficult for
an individual road to provide adequate terminal facilities in
large cities where the value of real estate has become prohibitive.
Nevertheless, the railroads are in favor of closed terminals,
that is, the use of terminals reserved to the owners only, on the
ground of competitive advantages. The problem of the opera-
tion of railroad terminals is the outstanding problem of railroad
operation today.
The capacity of the shipping and receiving public to unload
and release cars at destination is limited by public and private
storage facilities. Cars are oftentimes held for storage purposes.
In addition, cars may be held on account of shipments exceeding
the absorbing capacity of the market, holding for higher prices,
peddling from cars, or numerous reconsignments. Delays in
unloading and reconsignments may also be caused by the fault
of the carriers, although it is impossible to determine the alloca-
56
Railroad Freight Car Service: Control by the Car Division
tion of responsibility for the detention of cars. It must also be
admitted that an abnormal flow of traffic and labor strikes
interfering with the normal flow of traffic are both beyond the
control of either carriers or shippers.
In order to remedy terminal congestion or to prevent
threatened congestion, it is necessary to control not only the
inbound traffic moving into the terminal but also the outbound
traffic at loading points. The Car Service Division has, there-
fore, undertaken not only the supervision of the movement of
cars on all roads, the regulation of the issue of embargoes and
permits, and appeals to the public for prompt loading and
unloading, but also the development of an orderly flow of traffic
from shipping points to markets or trans-shipment points.
First of all, the Car Service Division watches the current
situation of car movement on the road as well as at terminals.
A semi-weekly car movement report made by the carriers as of
Wednesday and Saturday, shows the number of cars (loaded and
empty) moved during the previous 24 hours, on hand to move,
and the location of any accumulations together with weather
and motive power conditions. The relative efficiency of car
movement on various roads will be revealed by working out such
factors as the maximum movement in 24 hours in former periods,
percentage of maximum to current movement; percentage of
empty cars moved to total moved; cars left over to be moved,
percentage of cars left over to total moved, and the best previous
performance. Then, a weekly revenue freight car accumulation
report as of Friday shows the number of cars accumulated in
greater number than can be handled or disposed of currently
because of the inability of connections or consignees to accept,
delays in reconsignments, unloading or forwarding, etc.
Whenever a railroad is threatened with congestion or any
other interference with the normal flow of traffic at terminals
or in areas involved, it is necessary to issue promptly an embargo
against traffic movements until the volume of traffic awaiting
delivery has been reduced to normal. The placing and handling
of embargoes are governed by Per Diem Rule 16 and the regu-
lations prescribed by the Car Service Division, revised, Janu-
ary 1, 1926, and are under the supervision of the Car Service
Division.
of the American Railway Association
57
An embargo may be complete or incomplete. An incomplete
embargo exempts certain commodities which are necessary to
meet the needs of the public, such as foodstuffs, live stock,
coal, etc. Uniform exemptions are required and specified in the
regulations prescribed by the Car Service Division. Permits
may be issued to authorize certain individual shipments in order
to give special transportation relief, but they must be so estab-
lished that the shipping public will be protected against undue
discrimination.
For the purpose of uniformity and to expedite the interchange
of embargo information between various roads, the United
States and Canada are divided into zones. The Car Service
Division assigns the embargo zone chairman, and assigns primary
roads to each zone and other than primary roads to primary
roads for embargo purposes. An embargo is a temporary emer-
gency measure. It is undesirable from any point of view, and
yet it has proven to be a very effective means of reducing the
accumulation of traffic and the congestion of terminals. It is a
necessary evil which the carriers will withhold until the last
moment.
The problem of controlling traffic movements, like that of
controlling car supply and distribution, has several phases with
which the Car Service Division is primarily concerned. They
are the movements of grains, perishables, coal, and live stock.
The real limiting factor for the successful movement of Western
grains from farms to markets is the railroad track capacity and
the elevator storage capacity at primary markets or seaports.
Grain movement must be so regulated as to keep railroad tracks
and grain elevators within their working capacity. If grain
receipts at primary markets or seaports, that is, grains on
tracks and in elevators, exceed their working capacity, tracks
will be congested and elevators blocked. No more inbound
grains should be allowed until tracks and elevators are again in
normal working condition. The Car Service Division receives a
weekly report from the Chicago Board of Trade, giving the visible
supply of grains in public and private warehouses at the principal
grain centres; bushels of grains in elevators and the storage and
working capacity of elevators. The railroads report to the Car
58
Railroad Freight Car Service: Control by the Car Division
Service Division every week the grain movement situation at
primary and export markets; grain cars on hand (in elevators and
on tracks), received, loaded, reconsigned, and unloaded, and in
addition, the deliveries to boats at export markets.
The practical co-operation of the shipping and receiving public
has been successfully solicited in controlling the grain movement
through the organization of the joint terminal grain committees
composed of both shippers and carriers. In 1924 the grain crop
in the Northwest was the largest in its history. The machinery
of the Northwest Shippers' Advisory Board was brought into
action, and a joint terminal grain committee was created to
control the grain movement at terminals. This committee took
three steps. First, in order to relieve the congestion at Min-
neapolis, St. Paul, and Duluth, which are designated by the
state of Minnesota as terminal markets to which grains may be
consigned for sale, purchase, or storage, and where the federal
and the state grain inspection and grading services are main-
tained, it was agreed that all grain cars should be held at some
division points intermediate to Minneapolis long enough for
inspection and sampling purposes. Second, as grain cars were
held at outside sampling points from 2 to 4 days for an optional
market, an embargo was issued against this holding privilege by
refusing to accept shipments consigned to primary markets to
stop at these sampling points. Third, as more carloads of
grains were consigned to Duluth than its terminal facilities
could handle, the committee explained to the Duluth Board of
Trade the necessity of either increasing the unloading facilities
or placing an embargo in order to avoid congestion; as a result,
an embargo was issued against all grain shipments to Duluth.
A most remarkable result of the work of this committee was
that while the issue of embargoes was the most drastic step ever
taken in the Northwest, the country grain shippers realized that
such action was in their interest and refrained from criticism
against it.
Profiting by the successful experience of the joint terminal
grain committee in the Northwest, the Car Service Division
1 Northwest Shippers' Advisory Board: report of the joint terminal grain
committee, October 21, 1924.
of the American Railway Association
59
co-operated with the Southwest Shippers' Advisory Board
during the heavy grain movement in 1926, and organized many
joint terminal committees at primary markets and seaports.
As a result, cars were more promptly released and then returned
to country loading stations, and there developed no difficulty in
transportation.
The concentration in the marketing of perishables from the
Pacific Coast at a few Eastern cities, and the larger growth of the
traffic in relation to railroad terminal and market facilities for
perishables have caused serious congestion at markets during the
peak movement. The fundamental difficulty is the lack of
systematic marketing and orderly movement of perishables.
The Car Service Division has attempted to solve this problem
by promoting an orderly flow of perishables from the shipping
territory to markets by such means as the California Grape Car
Plan already described in last Chapter, and the New York Grape
Delivery Plan, and by expediting the unloading and release of
refrigerator cars by receivers.
An important factor responsible for congestion at perishables
terminals or markets is the delay in unloading and reconsignment,
to meet which the Car Service Division has inaugurated a
country-wide educational campaign for the prompt release of
refrigerator cars by receivers. During the seasonal perishable
movement, special committees, composed of receivers of fresh
fruits and vegetables and railroad representatives, are organized
at all principal markets throughout the country for the sole
purpose of expediting the release of refrigerator cars. Each
railroad will report to these committees specific cases of delays,
which will be taken up with the party responsible. This method
has proven to be more effective than a general campaign. It
has been suggested that if this principle of co-operation fails
of its purpose, a penalty should be adopted, that is, a general
track storage charge in addition to the ordinary demurrage
2 Gormley, M. J.: Refrigerator Car Delays, 1924.
During the four weeks of September and October, 1924, data compiled by
the Car Service Division at principal markets in the country showed that out
of 107,000 refrigerator cars released from load, 73,000 or 68.3 per cent were
released in the free time, and 33,000 or 31.3 per cent were delayed beyond the
free time.
60
Railroad Freight Car Service: Control by the Car Division
should be imposed on cars held beyond the free time. Then,
of course, if refrigerator car detentions threaten to block the
working capacity of terminals, a punitive measure might be
resorted to such as the issue of embargoes against all grape
shipments into New York City in 1923.
The problem of handling the grape shipments into New York
City was a very difficult one. Formerly, when refrigerator cars
loaded with grapes were delivered to receivers in New York
City proper, that is, Manhattan Island, their detention was a
common practice, resulting in the congestion of terminals in
New York City and in their inability to receive further shipments
from the West. Another difficulty was that the Erie railroad
transported the larger part of the California perishables from
Chicago to New York City while its terminal facilities and the
receivers' unloading facilities in New York City invariably
became inadequate to handle the peak shipment in the Fall.
In 1924, the Car Service Division co-operated with the Atlantic
States Shippers' Advisory Board and the Interstate Commerce
Commission, and adopted the so-called Grape Delivery Plan.
Under the plan, an embargo prohibits delivery of all juice grapes
on Manhattan Island during the Fall, and instead they are
delivered on the New Jersey side. It is also agreed that when-
ever the anticipated shipments of grapes to New York City exceed
the capacity of the Erie railroad to handle, they should be
diverted to other roads at Chicago. This plan has resulted in
greatly reducing the refrigerator car delays in New York City,
and has made possible the marketing of a larger amount of
grapes than would have otherwise been possible.
To regulate successfully the heavy coal movement in the
Fall and Winter every year, it is necessary to know the amout
of coal stocks in the hands of consumers and dealers during the
Summer. As coal is rarely stored at mines, consumers and
dealers' stocks during the Summer furnish a good measure of coal
production and shipments in the entire season, assuming that
with certain allowances, the demand of coal is the same from
3 Car Service Division: Movement of refrigerator cars, C. S. Bulletin 16,
June 18, 1924, in which remedies of refrigerator car delays were discussed.
of the American Railway Association
61
year to year. The Bureau of Mines of the U. S. Department
of the Interior makes a survey of coal stocks from time to time.
On the basis of this information and the periodical reports of
coal stocks from the railroads, the Car Service Division can
make an estimate of the amount of coal to be shipped in the
Fall and Winter.
Both railroads and coal operators have often appealed to the
public to purchase and ship coal early in the season. Any
advance shipment of coal in the summer will tend to equalize
the demand for transportation between the four quarters of the
year and stabilize the coal industry. Consumers and dealers,
however, usually buy coal only when they need it and according
to market conditions. They have no inclination to buy and
ship coal early except in cases of necessity, such as a threatened
coal strike or in localities remote from a coal supply. Unless
some financial reward is given to consumers and dealers at least
to cover the cost of storage,4 it is extremely difficult to expect
any appreciable response to the appeals of the railroads and coal
operators. The Car Service Division has from time to time
called the attention of carriers to the necessity of adopting a
liberal program of coal storage,5 and has also shown the public
through the Regional Shippers' Advisory Boards the necessity
of advance coal shipments.
The railroads serving the heavy coal producing fields in the
Allegheny and Pocahontas Regions have developed two import-
ant channels by which large quantities of coal are moved in the
summer. One is the Lake coal movement of coal from Eastern
and Southern fields to Lake Erie ports, thence by boats to the
Head of Lakes, and finally by rail to the Northwest which has
no local coal supply; in return, iron ores are shipped from the
Northwest to steel furnaces in Pittsburgh and the East, and
grains to Eastern markets. Another is the Tidewater coal
• Such as a cut of anthracite coal prices in the summer (A. T. Shurick:
Coal Industry, 1924, pp. 202–203), or the establishment of seasonal coal freight
rates (American Railway Association: Report to the Conference Committee
of the U. S. Coal Commission, 1923, pp. 76–79).
'The question of coal storage by the railroads is discussed in detail by the
American Railway Association: Report to the Conference Committee of the
U. S. Coal Commission, pp. 67–75.
62
Railroad Freight Car Service: Control by the Car Division
movement of coal to tidewater ports, thence by boats to New
England, and finally by rail to the interior of New England,
or to other ports in the United States or for export. Both of
these channels have been efficiently developed as an aid rather
than as a competitor to rail transportation, because, in addition
to the advantages of advance shipments of coal in the summer,
those roads taking coal to Lake Erie and Tidewater ports do not
compete with those in the Northwest and New England which
deliver coal to inland, but they compete with those taking coal
by an all-rail route to the same markets. The quality of coal
is also a factor.
As the coal supply in the Northwest and New England must
be protected, the Car Service Division has carefully regulated
the Lake and Tidewater coal movements. The Lakes are closed
to navigation from early in December until the following April,
and it is essential that from the beginning of the Lake season,
the relative quotas of coal shipments in each week or month of
the season should be accomplished. If coal shipments in the
early season be withheld, the Lake season would be shortened,
and the railroads would be over-burdened in the Fall. Such a
situation existed in 1922, and the Interstate Commerce Com-
mission was compelled to give priority in transportation to the
Lake coal movement. The Car Service Division receives from
the Ore and Coal Exchange of Cleveland, Ohio, which is a
clearing house of all Lake coal shippers and carriers, weekly
reports showing the number of cars of bituminous coal on hand
at Lake Erie ports and dumped into vessels; the tonnage of
bituminous coal dumped into vessels, and total tonnage dumped
from the beginning of the Lake season to date. The Exchange
also furnishes an estimate of coal required for the entire Lake
season. A ratio of coal dumped to date compared with the total
estimated dumping for the season will reveal how much coal
is necessary during the rest of the season. Again, a comparison
of the total dumping to date with that of the previous year
or years will reveal whether the current Lake program is ahead
or behind previous performance. It must be borne in mind that
the movement of grains and ore from the Head of Lakes to Lake
Erie ports is also a controlling factor of the Lake coal movement,
as are ice conditions and vessel rates.
of the American Railway Association
63
The Tidewater coal movement is regulated by the Car Service
Division in a similar way to the Lake movement. Weekly
statements are received from the carriers of tidewater coal,
giving the number of cars of bituminous coal at certain principal
gateways destined for New England by all-rail routes, received,
forwarded, and on hand to move; the number of cars of bituminous
coal to New England via tidewater ports on hand and dumped;
the number of cars of anthracite coal to New England by all-rail
routes, received, forwarded and on hand to move at certain
principal gateways. By comparing the number of cars of bitu-
minous or anthracite coal forwarded to New England at the
gateways from January 1 up to date with the average number of
cars forwarded in previous years, it can be seen how far coal
shipments to New England are accomplished or are ahead or
behind previous performance.
In both the Lake and Tidewater coal movements, railroad
cars are often detained at trans-shipment points to wait for
vessels and to clear dumping, thereby not only reducing the
availability of equipment but also causing congestion at water-
front terminals. As a means of conserving transportation
facilities and speeding up the coal movement, all coal shipments
at Lake and Tidewater ports were pooled during the War period
under the supervision of the Lake Erie and Tidewater Coal
Exchanges. These Exchanges served as a clearing house and
prepared complete information as to the number of cars loaded
with Lake or Tidewater coal by all roads concerned, cars enroute
to or at ports, and vessel movements. The Lake Erie Exchange
has been continued in operation ever since its formation in 1916.
On account of the enormous Lake coal movement, the short
Lake season, the fact that the Lake coal is drawn from many
fields, the number of carriers involved, and the necessity of
receiving a heavy tonnage of iron ores in return, the railroads
have agreed to continue the operation of the Exchange which is
located at Cleveland, Ohio. The Tidewater Coal Exchange was
organized in 1917, but ceased to function in 1919. The coal
6
"On the subject of coal pooling for water shipments, see the report of the
American Railway Association to the Conference Committee of the U. S.
Coal Commission, pp. 44-45.
64
Railroad Freight Car Service: Control by the Car Division
operators on the Chesapeake and Ohio Railroad, however,
and the coal trans-shippers using the port of Newport News,
formed the Newport News Coal Exchange in 1920. The opera-
tion of this exchange has enabled that road to handle its
tidewater coal traffic in approximately 50 per cent of the con-
signments that would be necessary if all the coal was handled
in individual shipments.
Live stock producers and shippers are accustomed to ship and
deliver their live stock to markets on Mondays, thus causing a
weekly peak load, and in turn, a greater demand of stock cars
at loading stations and congestion at markets. With the view
of promoting a more orderly flow of sheep to markets in the
Centralwestern territory, the Car Service Division co-operated
with the Centralwestern Shippers' Advisory Board in 1924,
and adopted a plan, whereby daily sheep receipts at primary
markets and advanced car orders were broadcast to the public
so that the shippers could adjust their shipments accordingly.
A similar plan was worked out for the movement of ranch cattle
into the Denver market in 1925. Both plans have not only
helped solve the problem of stock car supply, but also have
stabilized stock prices to the farmers.
When a railroad terminal is congested or is threatened with
congestion, it is necessary not only to control the traffic moving
into the terminal, but also to make an equitable distribution
among the receivers of all available transportation facilities in
the terminal. The so-called Florida Plan involved both features.
Due to a business boom in 1925, traffic moving into Florida
grew so rapidly that the railroads serving Florida could not
handle it. Enormous quantities of materials of every descrip-
tion were consigned from all parts of the country to Florida,
on the assumption that there was a wide-open market there, and
regardless of whether or not previous consignments had been
sold. As a result, cars were held on railroad tracks, and even
when all available track space was occupied, there were still
to the north of the Florida gateways, which had already been
blocked, thousands of cars awaiting movement into Florida.
A definite control of the volume of inbound traffic was brought
about by a state-wide embargo issued in October, 1925, applying
of the American Railway Association
65
to all carload commodities except foodstuffs. The Car Service
Division appealed to all shippers in different sections of the
country through the Regional Shippers' Advisory Boards to
refrain from shipping freight into Florida, and also organized
the Florida Division of the Southeast Shippers' Advisory Board
to bring about an equitable division of all available transporta-
tion facilities in Florida. The entire state of Florida was divided
into a number of districts. In each district there was estab-
lished a terminal district committee, and under which many
terminal district receiving commodity committees. Each termi-
nal district receiving commodity committee, representing those
interested in the inbound movement of a particular commodity,
would analyze currently the approximate number of carloads of
that commodity to be received within that district. Then,
the terminal district committee, composed of the chairmen of
the terminal district receiving commodity committees, would
compile the number of carloads of all commodities to be received
within that district. Finally, an aproximate number of carloads
of all commodities to be received in all districts in Florida could
be arrived at. On the basis of this information, all available
transportation facilities in Florida could be equitably divided
among all receivers of freight on a percentage distribution.
For example, if a certain district called for, say, 8000 cars and
the railroads could handle only 6000 cars, 25 per cent of the
receivers' requirements could not be met, and permits would be
issued covering 75 per cent of the requirements of each district.
and each receiver. If a receiver applied for a permit and he still
had cars on hand to be unloaded, his application would be denied
and his next month's requirements would be reduced to the basis.
of what he had been able to unload during the previous month.
The Florida plan was put in operation in January, 1926.
In the Spring of 1926, however, car accumulations began to
disappear, and the situation came under control so that the plan
did not undergo a full test. In principle, the plan was very
similar to the California Grape Car Plan, except that the former
was designed to meet a transportation shortage at the receiving
point, and the latter, at the shipping point. Both are new in the
history of the American railroads, and they will no doubt serve
66
ht
Railroad Freight Car Service: Control by the Car Division
as a future guide to handle any similar emergency which may
arise elsewhere in the country.
REFERENCES TO CHAPTER VI
American Railway Association, Car Service Division:
Regulations governing the Placing and Handling of Embargoes, revised,
January 1, 1926.
Northwest Shippers' Advisory Board: report of the joint terminal grain
committee, October 21, 1924.
Florida Division: of the Southeast Shippers' Advisory Board: Organization
Plan and Procedure, November 28, 1925.
Gormley, M. J.: Refrigerator Car Delays, an address at the Western Fruit
Jobbers Association of America, at Kansas City, Mo., January 19, 1924.
Beck, W. D. (Manager of Refrigerator Department): Refrigerator Car
Problems, an address at the Western Fruit Jobbers Association of
America at West Baden, Ind., January 21, 1925.
See also references to Chapter V.
of the American Railway Association
67
CHAPTER VII
CONTROL OF FREIGHT CAR PERFORMANCE
The chief factor in determining freight car supply is the number
of cars owned by the railroads in condition for service, but it is
also affected by the speed of car movement, the percentage of
empty to total car mileage, and the extent to which the car-
carrying capacity is utilized. The speed of car movement is
measured by the average miles per car per day, which is obtained
by dividing total car miles by cars on line daily, including those
idle or surplus, those in shop for repairs, and those in the hands
of the public for loading and unloading. The average tons per
loaded car gauge the extent to which car capacity is utilized,
and is obtained by dividing total ton-miles by loaded car miles.
This chapter discusses only the methods employed by the Car
Service Division for the improvement of car performance in both
loading and movement.
The average miles per car per day on American railroads is
generally a little below 30, being 25.1 in 1920 and 28.3 in 1925
on Class I roads. The gradual improvement in the speed of car
movement is shown in Chart II. It must be borne in mind
that this represents an average mileage made each calendar day
by all cars on line, and that the actual speed of movement of
loaded cars is always much higher.
Three important factors affect the speed of car movement:
the time consumed by the public in loading and unloading, the
time consumed by the carrier in yard service, including move-
ments to and from loading and unloading points, repair tracks,
and placing on road trains, and the time consumed by the
carrier in road movement, including intermediate classification
yard service. There is a general agreement between the rail-
road men that the time consumed by an average car on the road
is very insignificant in comparison with that in the terminal and
68
Railroad Freight Car Service: Control by the Car Division
intermediate yard and for loading and unloading. The Car
Service Division has from time to time urged the carriers to
increase the speed of movement of both loaded and empty cars,
and has also undertaken an active campaign to educate the
shipping and receiving public to the necessity of the prompt
loading and unloading of cars. By co-operating with the Regional
Shippers' Advisory Boards in controlling traffic movements at
both shipping and receiving points, the Car Service Division
has succeeded in bringing about a more prompt release of cars
by receivers and a speedier turn-around of cars to the loading
territory. That cars have been more promptly loaded and
unloaded is attested by the fact that Class I roads collected
$30,505,039 in demurrage in 1920, but only $20,391,640 in 1925,
a decrease of 33 per cent. This good result has been somewhat
influenced by the increasingly dependable transportation service
and the absence of a car shortage or congestion, so that stocks
at destination have been reduced and cars unloaded more
promptly on arrival.
Another factor determining the efficiency of car movement is
the empty mileage. The percentage of empty to total car
mileage is well over 30, as shown on Chart II. In other words,
a loaded car moved for 100 miles must be moved at least 42.8
miles empty. This empty mileage is largely caused by the
¹ According to Mr. W. H. Finley, President of the Chicago and North
western Railway, a typical trip of a freight car consumed 20.79 days but only
1.72 days on trains in 1922 (an address at the Mid-west Shippers' Advisory
Board, October 15, 1924). Then, according to Mr. L. F. Loree, President of
the Delaware and Hudson Railroad, the time of an average freight car trip
is distributed as follows:
Road Movement..
•
• •
Delay in road movement.
Movement to and delay in interchange tracks...
Movement through intermediate yards..
Movement to and delay on storage tracks.
Movement to and delay on repair tracks.
Movement for loading and unloading.
Loading and unloading.
Reconsignment, hold to order, etc.
Delay because of Sundays and holidays...
# ·
an
•
In
••
***
D
•
*-*
•
•
•
•
*** •
***
·
M
€100 C
•
62.0 SWA G
Total...
14.90
(From "Railroad Freight Transportation", 1922, p. 263).
Da
•
E
JILD
DAYS
1.49
.15
2.48
1.55
.75
1.34
1.74
4.00
.50
.90
of the American Railway Association
69
necessary relocation of empty cars to loading points.2 The
larger volume of traffic moving East- and North-bound than
West- and South-bound demands a continuous movement of
empty cars from the consuming to the producing territory.
The shipment of one-way commodities such as coal, live stock,
fruits and vegetables, and to some extent, grains and grain
products, means an empty return of the cars handling them.
Empty mileage is also caused partly by other factors such as
freight accumulations or congestion, the physical condition of
equipment, the effects of traffic via the Panama Canal, and the
utilization of car capacity. That the relocation of cars to the
owners according to the Car Service Rules is productive of
empty mileage was mentioned in Chapter IV. This empty
mileage is economically unnecessary. According to a study made
by the Bureau of Railway Economics, Washington, D. C., out
of a total of 8,569 million empty miles in 1923, 4,334 million
were due to one-way traffic in which were included coal, iron ore,
live stock, and tank cars, and fruits and vegetables, and auto-
mobiles; 3,699 million were due to unbalanced traffic, which
figure was arrived at by assuming that any class of loaded cars
Eastbound could be loaded back Westbound for any class of
traffic and by getting the difference between the total East- and
West-bound loaded car miles. In other words, 8,033 million
empty miles or more than 93 per cent of the total in 1923 was
economically necessary, and only 7 per cent might be considered
as unnecessary.
In addition to the prompt loading and unloading of freight
cars, the shipping and receiving public can also help the rail-
roads in improving car performance by heavier car loading.
It is the receiver who buys commodities, and it is the shipper who
loads them into cars. Although the average carrying capacity
of cars on Class I roads increased from 42.4 tons in 1920 to 44.8
in 1925, the average tons per loaded car decreased from 29.3
to 27.0. In other words, the percentage of car capacity utiliza-
tion decreased from 69.1 to 60.4. This decrease in car loading
2 The causes of empty mileage are discussed in detail by the Car Service
Division in "A Study of Empty Mileage", March 15, 1924.
70
Railroad Freight Car Service: Control by the Car Division
was primarily due to the decrease of coal shipments and the
increase of manufactured articles and L. C. L. freight.
The average load per car varies with the class of commodities,
products of mines always constituting the heaviest loading
commodities with forest products, manufactured and miscel-
laneous goods, agricultural products, and animal products
making up the light-loading commodities in the order named.
While the variation in the proportion of each class of traffic to
the aggregate largely determines the fluctuation in the tons per
loaded car, there are two other important factors. One is the
long established small trade units and the failure of receivers
to buy carloads of freight instead of the minimum carload
weights as fixed by the Interstate Commerce Commission.
Another is the lack of an impelling force of a car shortage during
which periods cars are customarily loaded heavier than during
periods of plentiful car supply.
The greatest opportunity for increasing the car loading lies in
the solicitation of the voluntary co-operation of the shipping and
receiving public. The Car Service Division has conducted an active
campaign for heavier car loading through the Regional Shippers'
Advisory Boards. The most effective method, however, is to
call specific cases of light loading to the attention of individual
shippers. Therefore, the Car Service Division has compiled an
annual car loading statement from reports of commodity statis-
tics made by the carriers to the Interstate Commerce Com-
mission, showing tons per car of various commodities and giving
the relative standing of efficiency, so far as tons per car is con-
cerned, of all lines. This statement has been very valuable in
dealing with railroad agents and officers as well as shippers
by pointing out the necessity for heavier car loading.
The railroad contact committees of the Regional Shippers'
Advisory Boards also have prepared statements showing tons
per car of those heavy loading commodities on various roads,
and the shipping public is appealed to to show why the best
performance of one road cannot be equaled by others.
of the American Railway Association
71
REFERENCES TO CHAPTER VII
American Railway Association, Car Service Division:
A study of Empty Mileage, March 15, 1924.
Commodity Loading Statement, annual, from 1922 to 1925.
Roberts, J. E. (General Superintendent of Transportation of the Delaware
and Hudson): Heavier Car Loading-Its Value and Methods of Accom-
plishments, an address at the third meeting of the Atlantic States Ship-
pers' Advisory Board, May 7, 1924.
72
Railroad Freight Car Service: Control by the Car Division
CHAPTER VIII
REGIONAL SHIPPERS' ADVISORY BOARDS: ORIGIN, ORGANIZATION
AND ACTIVITIES
The success of the Car Service Division in soliciting the prac-
tical co-operation of the shipping and receiving public through
the Regional Shippers' Advisory Boards has been notable.
These Boards were born of the necessity for a medium of con-
tact between production and consumption and transportation.
During the War period and the federal control of railroads, it
was a common practice for shippers to complain of car shortage
or unsatisfactory transportation service to the Interstate Com-
merce Commission or to the various state commissions. After
the termination of the federal control, there was an increasing
tendency to turn to the government for an answer to all trans-
portation problems. The Regional Shippers' Advisory Boards
were formed primarily to avoid this practice.
I
The first Shippers' Advisory Board was established in the
Northwest in January, 1923, to meet a distinct transportation
emergency. For many years prior to 1923, the Northwestern
section of the United States had suffered from an annual car
shortage and from congestion of grain elevators during the peak
movement of grains. Then in 1922 occurred the greatest car
shortage in history. Farmers and shippers were thoroughly
embittered, and both the federal and state governments were
urged to intervene. Under these conditions, the Northwest
Shippers' Advisory Board was set up in January, 1923, as the
result of a meeting at Minneapolis between the Northwestern
railroads and the representatives of farmers' organizations, mill
manufacturers, and bankers.
Immediately after its formation, the Board took three im-
portant steps to relieve the situation. First, the purpose of the
Board was broadcast throughout the Northwestern territory,
1 Reed, J. F. (Chairman of the Northwest Shippers' Advisory Board):
Report to the joint conference of the Regional Shippers' Advisory Boards at
Chicago, January 7-8, 1926, Proceedings, pp. 11–16.
of the American Railway Association
73
7
and the public was asked to co-operate with the carriers. Second,
the Board located every place that was entirely out of business
because of elevators congested, and arranged with the railroads
to give prompt car service to such place. Third, car supply and
service complaints were taken up for adjustment by the Board
in the order of their importance. At the same time, the Car
Service Division directed the return of grain cars from the East to
the Northwest. Within thirty days, the situation was under
control.
The success of this experiment led the American Railway
Association to announce, in connection with the railroad pro-
gram adopted on April 5, 1923, an extensive movement to ensure
the co-operation of shippers and carriers. To this end, the
Car Service Division was directed to study the transportation
needs of the different sections of the country and to form a
shippers' advisory board in each section in which the economic
and transportation problems were of a like kind. As a result,
thirteen boards have been organized while the Florida Division.
of the Southeast Shippers' Advisory Board was set up in 1925
to meet the transportation problem in that region. The
geographical assignments of these boards are shown on Map I.
The Regional Shippers' Advisory Boards deal with all ques-
tions of freight car service which come within the purview of the
Car Service Division, all questions of rates and charges excepted.
Their purposes are stated to be as follows:
(1) To form a common meeting ground between shippers and railroads,
and the carriers as a whole as represented by the Car Service Division of the
American Railway Association, for the better mutual understanding of local
transportation requirements, to analyze transportation needs in its territory
and to assist in anticipating car requirements.
(2) To study production, markets, distribution and trade channels of the
commodities produced in its territory with a view to effecting improvements
in trade practices as related to transportation, and to promoting a more even
distribution of commodities, where practicable.
(3) To promote car and operating efficiency in connection with maximum
loading, and in the proper handling of cars by shippers and railroads.
(4) To secure a proper understanding by the railroads of the transporta-
74
Railroad Freight Car Service: Control by the Car Division
tion needs of shippers, and their co-operation in carrying out necessary rules
governing car handling and distribution.
(5) To acquaint shippers and railroads in each section of the country with
seasonal requirements in their section in order to promote intelligent co-opera-
tion in the handling of equipment between the different districts of the country..
(6) To adjust informally car difficulties which may arise in its territory
between carriers and shippers.
(7) To give the shipping public a direct voice in the activities of the Car
Service Division of the American Railway Association in all matters of mutual
concern.
The Regional Shippers' Advisory Boards are voluntary public
organizations, and all shippers, receivers, and financiers are
invited to become members of these Boards in their own districts.
Each Board has an executive committee and as many com-
modity and standing committees as are deemed necessary to make
it thoroughly representative of the public. The executive com-
mittee is composed of a chairman, a vice-chairman, a secretary,
an assistant secretary, and the chairman of the commodity and
standing committee. Each commodity or standing committee
has a chairman, a vice-chairman, and as many members as may
be selected. All of the Board officers are elected by the members.
No railroads are members of these Boards. The channel
through which each Board establishes relations with the carriers
is provided by the railroad contact committee which is composed
of the representatives of the carriers serving the district. The
chairman of this committee is elected by the carriers' repre-
sentatives, and the District Manager of the Car Service Division
serves as its vice-chairman.
The headquarters of these Boards are located in the offices
of the District Managers of the Car Service Division. Their
main functions are performed at the regular quarterly meetings
held at commercial centres within their respective districts,
and their routine work is carried on by the staff of the District
Managers. All expenses, including the printing of the pro-
ceedings of the Board meetings and the salary of the assistant
secretary, are defrayed by the American Railway Association
on behalf of the railroads. Other officers of the Boards receive
no pay.
of the American Railway Association
75
The most important activity of the Regional Shippers' Ad-
visory Boards is to adjust informally all complaints or disputes
as to car supply and transportation service. Rule 2 of the Rules
of Procedure of these Boards provides that any complaint or
dispute initiated by the shipper shall be handled by him indi-
vidually with the carrier or carriers concerned; in case of failure,
the commodity committee and the officers of the Boards may
take it up with the railroad contact committee and the District
Manager of the Car Service Division. The same process of
negotiation will be applied to any complaint initiated by the
carrier. This informal adjustment of service complaints has
been, in so small degree, responsible for eliminating many
complaints which would otherwise have been presented directly
to the Interstate Commerce Commission, the state commissions,
or the Car Service Division at Washington, D. C.
A second important activity of these Boards is to furnish
reliable advance information as to transportation requirements.
At the regular quarterly meetings, the chairmen of the com-
modity committees report the current situation of their par-
ticular lines of business, and submit estimates of cars required
for loading in the following three months. Previously, question-
naires are sent to the members of the commodity committees,
and the conclusions of the Boards are based on the replies.
These Boards also bring about a better understanding on
the part of the public of the transportation problems of the
railroads. At their meetings, the railroad contact committees
report the current volume of car loadings, the ownership and
physical condition of equipment, and the situation of transporta-
tion service on various roads. The District Managers of the
Car Service Division report the general transportation situation
within the districts, and the Chairman or one of the Managers
of the Car Service Division at Washington, D. C., reports the
general transportation situation throughout the country.
In addition, the Boards solicit the effective co-operation of the
public in improving the transportation service. Shippers and
receivers can help the railroads in many ways, such as by re-
fraining from ordering more cars than they actually need in
24 hours, routing cars according to the Car Service Rules,
76
Railroad Freight Car Service: Control by the Car Division
increasing the average loading of cars, reducing the time con-
sumed in loading and unloading, etc. The success of the new
methods adopted by the Car Service Division to control car
supply and distribution, traffic movements, and car performance
as described in the last several chapters, has been largely due
to the public co-operation through these Boards.
Finally, these Boards establish a community of interest
between shippers and carriers through personal contact at their
meetings. In order to encourage the public attendance at the
meetings of the Boards, special travelling arrangements are
provided for, and the railroads send as many agents, superin-
tendents, and other officers to the meetings as possible to enable
them to get into closer touch with the public.
Although these Boards have been in existence only for a few
years, the co-operative movement of shippers and carriers as
represented by them has already achieved great success. There
are two important reasons for this. One is the whole-hearted
support of the members of these Boards, and the other is the
favor accorded by public opinion to their activities. Never-
theless, these are the results rather than the causes, because the
former is due to the personal force behind the co-operative move-
ment, and the latter, to the publicity it has received. The staff
of the Car Service Division and its district offices is selected not
only from railroad men representing different sections of the
country but also from the shippers themselves. The Car Service
Division knows the problems of the carriers as well as of the
shippers. The officers of these Boards are carefully selected so
that they have the prestige and confidence of the shipping public
in their respective districts. Co-operation between shippers
and carriers has been given a great deal of publicity. Periodical
transportation bulletins giving car loading, car ownership and
physical condition, car surplus and shortage, car location and
performance, are released to the press, the government regulatory
bodies, and those interested. The proceedings of the meetings
of the Boards are distributed to the public. For these reasons,
the public has been better informed as to the improved transpor-
tation service of the railroads, and has been willing to co-operate
with them.
of the American Railway Association
77
REFERENCES TO CHAPTER VIII
American Railway Association, Car Service Division:
Transportation Service and Car Supply-The Regional Shippers' Advisory
Boards, 1924.
Conn, D. D. (Manager of Public Relations Section): Accomplishments of the
Regional Shippers' Advisory Boards, an address at the National A socia-
tion of Railway and Public Utilities Commissioners at Phoenix, Ariz.,
November 11, 1924.
See the proceedings of the organization and regular meetings of the
Boards, particularly the proceedings of the joint conference of the
Boards at Chicago, January 7–8, 1926.
Aitchison, Clyde B. (Chairman of the Interstate Commerce Commission):
Relationship of Shippers and Carriers, an address at the 7th regular meeting
of the Atlantic States Shippers' Advisory Board, April 9, 1925.
National Association of Railroad and Public Utilities Commissioners: Re-
ports of the Committee on Public Relations in 1925 and 1926.
78
Railroad Freight Car Service: Control by the Car Division
CHAPTER IX
CONCLUSIONS
The foregoing chapters have described the system of control
of freight car service by the Car Service Division of the American
Railway Association as the central agency of the railroads.
The discussions may be summed up as follows:
(1) The Car Service Division was primarily the product of
transportation emergencies, and even to this day its supervision
of freight car supply, distribution and movement on and between
the railroads is still of a general nature save in time of emergency.
(2) The supervision of freight car service has been decen-
tralized through its district offices located in different sections of
the country.
(3) It has developed such information of freight car require-
ments and supply as is necessary to the supervision of car supply
and distribution.
(4) The Car Service Rules furnish the main basis of the
handling of cars after leaving the owner's rails. The observance
of these Rules has been carefully enforced although there is still
room for improvement.
(5) It also takes charge of the territorial adjustment of car
surplus and shortage with regard to both car ownership and
traffic demands.
(6) The three problems of car supply and distribution with
which the Car Service Division is most concerned are box car
supply and distribution for the transportation of Western grains,
refrigerator car supply and distribution for the transportation of
perishables from the Pacific Coast and the Southeast, and open-
top car supply and distribution for the transportation of coal.
(7) The Car Service Division has developed a definite system
for the control of traffic movements in order to avoid or reduce
congestion at terminals or on the road as well as to promote
an orderly flow of traffic at shipping points.
(8) Much attention has been given to the increase of the
speed of car movement and the heavier car loading.
".
of the American Railway Association
79
(9) The practical co-operation of the public has been solicited
in the execution of all plans of the Car Service Division through
the Regional Shippers' Advisory Boards.
There are two outstanding principles upon which the system of
control of freight car service by the Car Service Division has
been based. One is the modified ownership principle on which
freight cars are handled after leaving the home road; the other
is that of the voluntary co-operation among carriers and between
carriers and shippers and the government with respect to car
service.
The Car Service Rules represent the ownership principle of
car handling, but the present basis of car handling gives addi-
tional flexibility since the Car Service Division has been given
power to suspend Car Service Rules 1 to 5, inclusive, if it proves
necessary. This power has been repeatedly exercised, notably
in Box Car Orders 2 and 3. A part of the Car Service Rules
is not even based on rigid ownership, Rules 2 (b) and (c) and 3
(c) providing for local movement for foreign cars in an opposite
direction to the owner. In addition, some roads have placed
their refrigerator cars and stock cars in common use, disregarding
ownership entirely.
Voluntary co-operation has been the keynote to the remark-
able improvement of transportation service in recent years.
The Car Service Division is a voluntary organization of the
railroads to deal with all matters concerning car service. Since
the adoption of the railroad program for the provision of ade-
quate transportation on April 5, 1923, the railroads have adhered
to a policy of co-operation on a large scale, and have continu-
ously shown their co-operation actively with regard to the direc-
tions of the Car Service Division. The Regional Shippers'
Advisory Boards represent public voluntary organizations
through which shippers and carriers deal with all questions
respecting transportation service. The Interstate Commerce
Commission, instead of taking direct control of car service,
has given its advice and co-operation to the Car Service Division,
and has heartily endorsed the co-operative movement of shippers
and carriers. Thus, all of the three parties-carriers, shippers
and the Commission-have reached a broader and clearer
80
Railroad Freight Car Service: Control by the Car Division
understanding of the transportation problems, and have adopted
the principle of co-operation to solve them.
Some people, however, have questioned the effectiveness of
the Car Service Rules and the voluntary organization of the Car
Service Division in meeting the transportation requirements of
the public, in protecting the investment of the car owners, and
in promoting efficiency and economy in the handling of cars.
This opinion is predicated on the assumption that the Car
Service Rules would not be observed in times of car shortage,
thereby causing unequal distribution of available cars among the
roads and depriving some owners of the use of their cars; that
in times of car surplus, the observance of these Rules would
produce unnecessary empty mileage by returning empty cars.
to the owners even in the direction of the predominant traffic
movement in order to avoid per diem charges; and that the
mandatory orders of a voluntary organization like the Car
Service Division would not be obeyed by all roads concerned.
Therefore, a general or limited car pool is proposed, in which all
or certain types of cars would be placed in common use without
regard to ownership.
Although the car pool idea has been discussed for many years,
the railroads have never unanimously agreed to adopt it. The
only car pool officially authorized by the railroads was the
Eastern Railroads' Coal Car Pool, organized in December,
1917, and terminated about March, 1920, although during the
federal control of railroads, all cars were used without regard to
ownership. Both the coal car pool and the federal control were
the direct results of the War emergency. At the termination of
the federal control, the railroads had under consideration both
the pre-War rigid ownership plan and the pool plan, but could
not agree on either. The modified ownership plan was adopted
as a compromise.
The present system of control of car service by the Car Service
Division, characterized by the principles of modified ownership
and voluntary co-operation, has attained satisfactory results
as the experience of the past years shows. The Car Service
Division has built up an efficient organization. The observance
of the Car Service Rules has been improved, reflecting a more
of the American Railway Association
81
equitable distribution of cars between the carriers. Effective
methods have been developed to control car supply and dis-
tribution, traffic movements, and car performance. The ship-
ping public, which plays an important part in providing ade-
quate transportation, has co-operated with the railroads through
the various Shippers' Advisory Boards. The Interstate Com-
merce Commission, which is authorized by the Transportation
Act of 1920 to direct car supply, distribution and movement in
case of emergency, has also co-operated with the Car Service
Division. It seems to the writer that the machinery of the Car
Service Division will enable the railroads to meet any car shortage
or transportation congestion which may arise on any road or in
any territory throughout the country, and that the American
shipping public will be thus assured of adequate transportation
service to meet the growing commercial requirements.
REFERENCES
In February, 1922, the National Association of Owners of Railroad Securities
submitted a proposal to the Interstate Commerce Commission for the fo ma-
tion of a freight car pool. This proposal received wide publicity particularly
during the period of great car shortage and transportation congestion in
1922-1923. As a result, the facts of the ownership basis of car handling were
scrupulously exposed. Some of the important papers relating to the
proposal are very helpful to a thorough study of the subject of car handling
and service. They are as follows:
National Association of Owners of Railroad Securities:
Proposal of the Board of Economics and Engineering for more serviceable
and economical distribution and conservation of freight cars to the
Interstate Commerce Commission, February 15, 1922.
Warfield, S. Davie (President): A Statement on the Car Pool Plan, July
10, 1923, and a letter to Daniel Willard, Chairman of a conference
committee of the railroads, January 20, 1923.
Proceedings of the conference between the American Railway Association
and the National Association of Owners of Railroad Securities, May
26, 1924.
American Railway Association:
Proceedings of the Sub-Committee appointed by the Committee on Car
Service of the Transportation Division to report on the question of car
pool, May, June and July, 1919.
↓
82
Railroad Freight Car Service: Control by the Car Division
Report of the special committee to devise a formula of car ownership,
preliminary, October 24, 1921, and final, June 1, 1923.
Report of the committee analyzing the car pool plan of the National Associa-
tion of Owners of Railroad Securities, February 1, 1923.
Analysis of an address of N. D. Ballantine at the New York Traffic Club,
by the Car Service Division, September 25, 1923.
Proceedings of the committee to consider the Warfield Car Pool Plan at
Richmond, Va., April 6, 1925, inluding statements of J. W. Roberts of the
Pennsylvania R. R. and O. C. Castle of the Southern Pacific R. R. in
favor of the Plan.
រ
DISTRICT
No.
1234567
bland
SEATTLE
14
11
FRANCISCO.
Auntium
GALVOTAR
Salmon
Stryker
LOCATION
Paradice
DI
DISTRICT HEADQUARTERS
Chicago
Detroit
Minneapolis
Cincinnati
St. Louis
Birmingham
Dallas
10
Baloo
Franch
El Paso
Tool
REGIONAL
Ox
ADVISORY Boards
MID-WEST
GREAT LAKES
NORTHWEST
OHIO VALLEY
Trans-Mo. Kan,
SOUTHEAST
SOUTHWEST
Lapo
Superior
Simax City
Council Eixfis.
Tula
Raul
DALLAS
DISTRICT
No.
8
9
10
11
12
13
14
AMATEM
Kookra
ST Lon's
Lalaycita
Pan
(contratia for
Neary
CalTo
Didi Wayne
Aerator
Casue
#DETROIT
CINCINNATI
Vibe Ty
Orjiana
Farite: burg
Biston
*BIRMINGKA
Toronto
LOCATION
Dec
Sukh-le
İTSBURCH
Harrisborg
ITON
MAP I
JURISDICTION OF DISTRICT OFFICES OF THE CAR SERVICE DIVISION AND REGIONAL ADVISORY BOARDS
DISTRICT HEADQUARTERS
25
bases Paint
New York
Pittsburgh
Omaha
San Francisco
Boston
Handled from Washington, D. C.
Seattle
12
MEN
BOSTON
ضال
This state
assigned to Dist.
No 8 for Advisory
board matters only
This state.
assigned to Distric
No. 6 for Advisory
board matters only
REGIONAL
ADVISORY BOARDS
ATLANTIC STATES
ALLEGHENY
CENTRALWEST
PACIFIC COAST
NEW ENGLVND
PACIFIC NORTHWEST


1120
Jax
1080
1040
1000
Thousand Cars
960
920
880
890
800
760
7.20
680
640
600
560
$20
480
440
400
360
320
280
240
200
180
120
80
4c
460
80
120
160
204
MIL
1977
Sep.
Nov.
Jan?
Mar.
May
July
Shortage
1918
1979
1920
Pri tem streepritet
Revenue Freight Cars Loaded
Surplus
Federal Control
1921
accumulations
shortage
Nov.
Jan I
Surplus
1922
Mar.
May
July
Sep.
Nov.
Jam.
1923
Safr
Mar.
1924
KL
Surplus
Shortage
1925
May
July
Sep.
Nov.
Jakid
1120
1080
1040
1000
960.
920.
880
840
800.
760
720
680
640
600
560
520
480
440
4000.
360
320
Thousand CarS
280
240.
200
180:
120
80
40
0
.40
80
120
160
200
of the American Railway Association
85
YEAR ENDING
DEC. 31
TABLE I
RAILWAY FREIGHT TRAFFIC AND RAILWAY TRANSPORTATION FACILITIES ON
ALL STEAM RAILROADS IN THE UNITED STATES FROM 1920 TO 1925.

1920..
1921..
1922...
1923..
1924...
1925
•
NO.
68,942
69,122
REVENUE
FREIGHT REVENUE
CAR
TON-MILES
LOADINGS THOUSAND
LOCOMOTIVES IN SERVICE
45,118,472 413,698,749
39,323,158 309,533,365
43,207,561 342,187,536
49,812,113 416,255,550
48,534,433 391,945,037
51,177,962 417,454,000
AV. TR. PR. LBS.
36,365
36,935
37,441
39,177
40,321
PROPERTY
INVESTMENT
IN ROAD AND
EQUIPMENT
BOOK VALUE
$19,849,319,946 252,845 406,579
20,329,223,603 251,176 407,531
20,580,168,269 250,413 409,359
21,372,850,161 250,222 412,993
22,182,267,385) 250,156) 415,028
22,709,268,838 250,568 418,189
FREIGHT CARS IN SERVICE
NO.
2,388,424
2,378,510
2,352,483
2,411,627
2,415,027
MILES MILES
OF
OF
ROAD TRACKS
OWNED OPERAT’D

CHART I.-Transportation Service, 1916-1925:
68,518
69,414
68,935
Source: I. C. C. annual report to the U. S. Congress in 1926.
AV. CAR CAP. TONS
42.4
42.5
43.1
44.3
44.7
Revenue Freight Cars Loaded, average weekly.
Car Surplus and shortage, daily average.
Freight Accumulations, daily average.
x Reports temporarily discontinued.
xx Previous figures not available.
Data: American Railway Association, Car Service Division.

~2500
24.00
Thousand
23.00
2200
2100
32
35.
28
26
24
22
20
44
22
40
38
36
34
32
*****
30
28
26
24
22
200
18
16
14
12
10
8
6
2
7977
LETTER
Cars Owned
A17
Tons per Loaded Car
A
MAT.
Per Cent of Empty Is Tital Miles
Miles per Car per Day
199
Percent of Bad-Order Cars to Total Cars on June
*X
1921
19
1925
2400
12300.
2200
21003
32
SETJENNANASSONEREKCES
10
8
6
720
Thousand
4
of the American Railway Association
87
YEAR ENDING
DEC. 31
TABLE II
RAILWAY EQUIPMENT INSTAlled, Retired, and in NEED OF REPAIRS, on
CLASS 1 ROADS FROM 1920 to 1925.


1920...
1921.-.
1922..
1923...
1924.
1925
->
⠀⠀⠀ ⠀
****
⠀⠀⠀ !
INSTALLED RETIRED
1,017
36,044 75,197
1,330
63,406
69,245
1,226
105,394
126,471
4,360
21.4
232,060
155,893
2,746
2,529 18.7
213,789
118,441
1,585
2,884 17.9
132,543
122,352 |
Source: I. C. C. annual report to the U. S. Congress in 1926.
CHART II. Freight Car Ownership, Physical Condition, and Performance,
1916-1925:
Freight Cars owned, as the first of each month
Per Cent of Bad-Order Cars to Total Cars on Line, as the first
of each month
•
►
LOCOMOTIVES
1,254
1,130
1,682
2,786
PER CENT
IN NEED
PER CENT
IN NEED
OF
OF
REPAIRS INSTALLED RETIRED REPAIRS
FREIGHT CARS
24.5
23.7
24.9
Tons per Loaded Car, average for the month
Mile r Car per Day, average for the month
7.0
13.1
12.8
8.0
7.8
7.8
Per Cent of Empty to Total Miles, average for the month
x Figures not available
xx Previous figures include Canadian Roads.
Data: American Railway Association, Car Service Division.

74
72
701
68
66
60
58
56
$1
42
40
38
36
34
32
20
18
16
If
12
10
1916
Max.
May
July
1977
डो
∙19.12
Pei Cent of Empty To Total Mikes
19 13
Percent of Home Cars in Home Rodds to Total Cars Owned
For Cext of Surplus Carita Total Cars of Line
Plak
May
July
1920
19 21
Nov. 1
222
1923
1924
19.25
haz JO
74
72
Jo
168
66
14
62
*****
50
144
Yo
138
INRENASSINTERNA
12
10
8
6
4
2
of the American Railway Association
89
TABLE III
FREIGHT CAR Performance ON CLASS I Roads From 1920 to 1925
AVERAGE MILES | AVERAGE TONS
PER CAR DAY PER LOADED CAR

YEAR ENDING DEC. 31
1920...
1921
25.1
22.4
23.5
1922
1923...
27.8
26.8
1924...
1925..
28.3
Source: I. C. C. annual report to the U. S. Congress in 1926.
443
442 ... •.
· A
--
.. ... GA - EL· BAD ... ... ... 0.1.
...
⠀⠀⠀⠀⠀
·~0 44 4
AND **
⠀⠀⠀⠀
140
⠀⠀⠀
*** *** San
..0 IMG
CA
--A
--- +4 444 ... •
· ...
but ê ... C
...
::
⠀⠀
: : :
::
Ca
4 G
•
•
G
! :
40 V d
! :
::
A
M
...
...
29.3
27.6
26.9
27.9
27.0
27.0
CHART III. Freight Car Supply and Distribution, 1916-1925.
Per Cent of Surplus Cars to Total Cars on Line, average for
the month.
Per Cent of Home Cars on Home Roads to Total Cars owned,
average for the month.
Per Cent of Empty to Total Miles, average for the month
Data: American Railway Association, Car Service Division.
UNIVERSITY OF MICHIGAN
3 9015 06362 9938
ܐ
TAIMO
DECSTA
RY
CH.