Railroad Outlook

Apart from the likelihood of Government interference with railroad rates this Winter along the lines suggested by the statesmen of the wheat belt, the railroads seem due to have unusual prosperity. During the last few years money has been freely placed in new equipment and maintenance of way, which has tended to lower operating costs. Moreover, the current freight car loadings continue even through the Summer slackness to run at almost record figures, with yet heavier traffic anticipated by everyone for the Fall. Thus far, too, the railroads have handled a tremendous year's business with ease and comparatively little congestion, despite the inferior condition of equipment caused by the shopmen's strike a year ago.

It is, however, true that the new equipment recently purchased by the railroads has not been paid for out of earnings, but from increased indebtedness. The railway mileage in this country is slightly less today than it was in 1915, although since the latter date the population of the United States has increased about 12%, and its volume of business probably even more. Also, the number of locomotives and freight cars has remained about the same, although their capacity has been increased somewhat through the adoption of more powerful locomotives and larger freight cars.