[II]
EQUIPMENT
An Object Lesson in Equipment.
No car shortage occurred to interrupt the orderly movement of railway traffic during the fiscal year 1908-09. On the contrary, there was an unprofitable surplus of cars throughout the year, ranging from 110,912 in September, 1908, to 333,019 in January, 1909. From this high figure the surplus was slowly reduced by the demands of traffic until subsequent to the close of the fiscal year, in September last, it reached a practical level of shortages and surpluses. During the year there was an average of 150,000 freight cars in the shops, where in times of ordinary activity the mean would be in the neighborhood of 100,000.
These conditions, which prevailed since November, 1907, account for the greatly reduced purchases of rolling stock during the years 1908 and 1909 shown in the following record of locomotives and cars built in the United States during the past eleven years:
| Eleven Years' Output of Cars and Locomotives. | |||
| From the Railroad Age-Gazette. | |||
| Year | Locomotives | Number Passenger Cars | Freight Cars |
| 1909(a) | 2,887 | 2,849 | 96,419 |
| 1908(a) | 2,342 | 1,716 | 76,555 |
| 1907(a) | 7,362 | 5,457 | 284,188 |
| 1906(a) | 6,952 | 3,167 | 243,670 |
| 1905(a) | 5,491 | 2,551 | 168,006 |
| 1904 | 3,441 | 2,144 | 60,806 |
| 1903 | 5,152 | 2,007 | 153,195 |
| 1902 | 4,070 | 1,948 | 162,599 |
| 1901 | 3,384 | 2,055 | 136,950 |
| 1900 | 3,153 | 1,636 | 115,631 |
| 1899 | 2,475 | 1,305 | 119,886 |
| Total | 46,709 | 26,835 | 1,617,905 |
| (a) Includes Canadian output. | |||
Between 1898 and 1908 the Interstate Commerce Commission reported an increase of 21,464 locomotives, 11,697 passenger cars, and 856,999 freight and company cars. Allowing for the Canadian output in the above table, this would show 22,742 more locomotives, 13,821 more passenger cars, and 674,023 more freight cars built in ten years than are accounted for in the official returns. Roughly speaking, these last figures represent the number of locomotives and cars worn out beyond repair or destroyed that have to be replaced annually. It means that provision has to be made every year for the purchase of new equipment amounting to approximately 5% of locomotives and passenger cars and 4% of freight cars in order to maintain the equipment numerically, irrespective of the sums spent on maintaining the remainder in serviceable condition.
On the equipment reported by the Commission for 1908 this would necessitate the following outlay for replacement alone:
| Number | Needed for Replacement | Average Cost | Total Cost | |
| Locomotives | 57,698 | 5% = 2,884 | $15,000 | $43,260,000 |
| Passenger cars | 45,292 | 5% = 2,214 | 6,000 | 13,284,000 |
| Freight cars | 2,100,784 | 4% = 84,031 | 1,000 | 84,000,000 |
| Company cars | 98,281 | 3,931 | 500 | 1,965,500 |
| Total cost for replacing equipment | $142,509,500 | |||
It is probable that the computed percentage for the replacement of locomotives and passenger cars is too high and that for freight cars too low. This is the opinion of operating officials. If so, it would amount to a set off and the aggregate would still be approximately $142,000,000 to be expended annually for new equipment to take the place of old, worn out and discarded rolling stock. Conditions forbade the expenditure of any such sum in 1908 and 1909.
Number and Capacity of Locomotives for Eight Years, 1909 to 1902.