UNITED KINGDOM The United Kingdom is not set down to import trucks from any source; is that right? Mr. GLYNN. Yes. WESTERN GERMANY Mr. WIGGLESWORTH. For western Germany, the imports are to be 12,500 trucks, of which about one-fourth will be financed by ECA, giving them an available supply in 1948-49 of 53,500, which appears to be somewhere around what they had prewar, and about three times what they had in fiscal 1947; is that right? . Mr. TUTHILL. We show the increase in supply for 1947 Mr. WIGGLESWORTH. It is about three times what they had in 1947, and roughly what they had prewar? Mr. TUTHILL. That is correct. In terms of total park there were about 195,000 in the bizone area, prewar, and our figure there in 1947 shows 231,000. Mr. WIGGLESWORTH. The figure here is against a replacement of about 5 percent? Mr. TUTHILL. It is over 5 percent; it is about 12 or 13 percent. Mr. WIGGLESWORTH. On the basis of 239,000? Mr. TUTHILL. 231,000; and we figure they will need an increase of 33,500. Mr. WIGGLESWORTH. Do you have any further questions on the truck item, Mr. Keefe? Mr. KEEFE. No. FREIGHT CARS Mr. WIGGLESWORTH. We will take up next the freight car picture. Do you have an over-all statement you wish to make to the committee, Mr. Tuthill? Mr. TUTHILL. Mr. Chairman, the only general comment I would like to make relating to the figures we have submitted to you on the proposals for export and the percentage to those exports on a prospective production basis for 1948, is that the tables unfortunately are figured on a unit basis, and it comes out to 11 percent in terms of the units. It should be about half that amount in terms of the amount of steel, material and labor which go into the European car. because about 11%1⁄2 tons of steel go into the European car, the twoaxle, four-wheel car, as compared with about 23-plus tons for cars in the United States, with four axles and eight wheels. So that the percentage there should be, instead of 11.4 should be about 5%1⁄2 or 6 percent. DATA ON PRODUCTION FXPORT, AVAILABILITY, ETC. OF FREIGHT CARS Mr. WIGGLESWORTH. In the over-all table you have given you is shown a production, prewar, of 40,471; for 1947, 96,428, and estimated April 1948, to June 1949, 176,000, against which there have been exports, prewar, of 1,167 cars; 32,639 in 1947, and an estimate of 26,000 cars for the period April 1948, to June 1949. Percentagewise that shows for prewar, in terms of supply to all countries, of a negligible amount; in 1947, 30.4 percent, and in the period April 1948-June 1949, only 11.4 percent. Mr. TUTHILL. Those are the figures that I suggested should be changed. Mr. WIGGLESWORTH. These figures are in terms of cars. Mr. TUTHILL. Yes. Mr. WIGGLESWORTH. And they are correct in terms of cars? Mr. WIGGLESWORTH. And for the 16 European countries, the percentages of supply of exports was 3.4 percent in 1947, and about the same for the period April 1948-June 1949. In other words, assuming that the increase in production is attained, you estimate an export of 77 percent in the 15-month period compared with exports of 90 percent in 1947, with about the same percentage in the war period for the 16 participating countries; is that about correct? Mr. TUTHILL. Exports for other areas are 6,000 and 3,316; the percentage of exports to Latin America, for example, will remain about the same, although the number of cars will increase. Mr. WIGGLESWORTH. The total exports in terms of cars and in terms of total supply, prewar, amount to 2.9 percent; in 1947 amount to 33.8 percent, and in the 15-month period, ending June 1949, it is estimated at 14.8 percent? Mr. KELLY. Taking the 26,000 cars; but taking the half-size cars, so as to compare the supply figures with the larger cars in the United States, the percentage of total supply is 7.4 for the first line, and 6.9 for the other. Mr. WIGGLESWORTH. But as I understand the figures here for cars, in terms of units, are correct. Mr. TUTHILL. Yes. Mr. KELLY. With supply, compared with columns 8 and 3. Mr. WIGGLESWORTH. But in terms of cars, leaving out the size, the figures in terms of cars, as shown on this table, would be correct. Mr. GLYNN. That is right. Mr. WIGGLESWORTH. And you estimate the total exports in the 15-month period will be less than half of what they were in the fiscal year 1947, to all countries, if we talk in terms of the number of cars; is that right? Mr. GLYNN. Yes. Mr. TUTHILL. And there will be a considerable decrease in the rate of exports to participating countries in the next 15 months. Mr. WIGGLESWORTH. And also in the over-all number of cars exported? Mr. TUTHILL. That is right, except that if you just look at the columns, 12 and 13, we would hope not only to maintain but to increase the exports of cars to Latin America. Mr. WIGGLESWORTH. I understand you expect the total exports during the year to be 26,000 cars. Mr. TUTHILL. That is right. Mr. WIGGLESWORTH. Of which 20,000 are to go to participating countries, and 6,000 to other countries, so that percentage-wise what I have already stated is the fact, is it not? Mr. TUTHILL. Yes. There is a very considerable decrease, percentage-wise. Mr. WIGGLESWORTH. But in terms of total exports and in terms of exports to participating countries. Mr. TUTHILL. That is correct. Mr. KEEFE. I have already gone through these sheets, and the only country that is listed as expecting to get ECA finance for freight cars is the Bizone area, Germany. Mr. GLYNN. Yes. Mr. KEEFE. There are no freight cars provided for any other country. Mr. TUTHILL. No. PRODUCTION OF FREIGHT CARS IN PARTICIPATING COUNTRIES FROM ECA-FINANCED MATERIAL Mr. KEEFE. Apparently they are able to take care of their own production of cars, from their own operations, to meet their own needs, considering the over-all picture; but I assume that some of the components which go into the manufacture of freight cars may be involved in the ECA; is that right? Mr. TUTHILL. There may be some, yes. Mr. KEEFE. And timber would be one, for instance? Mr. KELLY. They are going all out to build their own cars, and presumably they have scores of timber for frames, and the castings, as they had before the war. This statement is not for just 1 year, but for 15 months; and this anticipates that the United States shipment of freight cars to Europe would end then. Mr. KEEFE. Does that include bizone, Germany? Mr. KELLY. Yes. Mr. KEEFE. They will be able to take care of themselves by that time? Mr. KELLY. Yes. Mr. KEEFE. Do they have the materials to build them now? Mr. KELLY. Yes; given the timber out of which the freight would be built. Mr. KEEFE. That is just the point I had in mind. We are shipping them a lot of timber, and you do not know whether that timber is going to be used just in housing construction, or whether some of it is going to be used to build freight cars. Mr. NITZE. When the timber people were here, as I recall their testimony, they said they estimated that some of the imports of timber might be used for freight car construction. Mr. KEEFE. And to the extent that we finance, with ECA funds, the component parts of the domestic production of freight cars, we are using ECA funds for that purpose; are we not? Two and two make four, of course, so that when we show no funds expended for freight cars, we may be indirectly expending a considerable sum of money for the implementation of the freight-car industry, by furnishing the raw materials as such out of which they will build cars. Is that not the situation? Mr. KELLY. That could be true; yes, sir; but probably the volume of freight cars, and the amount of timber used in freight cars, would not be very large, because in the construction of cars they are to have steel sides, the gondola type similar to ours; but there will be some timber used for flooring, not very much. Mr. KEEFE. But if they use the steel for that purpose it cannot be used for something else. Mr. KELLY. That is right. Mr. KEEFE. And we are shipping steel over there. Mr. KELLY. That is right. Mr. KEEFE. And if they use some of the timber to make box cars, in whatever amount, they will not have it to use for some other purpose. Mr. KELLY. But again, only a small portion of it would be used for building cars, because there are only to be about 26,000 cars to go from the United States altogether. Mr. KEEFE. That is the total, and that includes the number going to the bizone, Germany. Mr. KELLY. Yes. Mr. KEEFE. And the amount of timber used may take a part of that which is shipped to them. Mr. KELLY. And the amount of steel that will be needed in the manufacture of cars is less than the amount required here. Mr. KEEFE. I do not know anything about the continental system, but I suppose their freight cars go all over the continent, do they not? Mr. TUTHILL. All over western Europe. Mr. GLYNN. All over western Europe, yes. Mr. KEEFE. We had some testimony here a while back to the effect that there was some argument with France because she was holding up cars to block the Germans, and vice versa. FREIGHT CAR SITUATION IN VARIOUS PARTICIPATING COUNTRIES Mr. WIGGLESWORTH. How many freight cars did Austria have prewar, and how many has she now? Mr. TUTHILL. I would like to say just a word about these figures: This is the most difficult of all, in terms of getting prewar data. Some of the cars were in the Russian zone, and the figures we have, for the subsequent period, are considerably more accurate, that is covering what is in Austria today, than for prewar. Mr. WIGGLESWORTH. Do you have any estimate for prewar? Mr. TUTHILL. The estimate of the number of cars for 1938 is 33,000. The estimate as of January 1, 1941, is 45,930. But that includes the Soviet zone. The indication is that Austria needs freight cars. The attempt of the High Commissioner to purchase cars, simply for the purpose of bringing shipments from Trieste, indicates that they have been willing to use some of the limited amount of hard currency available, for that purpose. Mr. WIGGLESWORTH. Belgium and Luxemburg do not import any freight cars from anywhere? Mr. TUTHILL. No. Mr. WIGGLESWORTH. Neither does Denmark. How about France? How many cars did she have prewar, and how many does she have now? Mt. TUTHILL. Prewar, 1938, France had serviceable and I am giving only the serviceable cars, because the other figures would be misleading 451,000. France had, January 1, 1948, 310,000. With that 310,000, or considerably less than she had in 1938, France hauled in ton-kilometers, in 1947, 44,200 million, compared with 29,500 million in 1938. This is one of the outstanding records of the increase of the effective utilization of equipment, accounted for by a number of things, includ ing a terrific overloading of cars, a very considerable speeding-up of turn-around time, from 11.4 in 1938, to 8.6 in 1947. Mr. WIGGLESWORTH. What is the story for Greece in terms of cars? Mr. TUTHILL. The Greek situation is that the line between Athens and Saloniki has not yet been fully repaired, and this figure of 1,100 estimated imports is the best estimate of ourselves and the Griswold mission of what will be required for them within the next year when they get the line completed. The latest figure we have shows that 50 percent of the Greek park had been destroyed during the war. Mr. WIGGLESWORTH. Iceland shows no imports from anywhere. Mr. TUTHILL. No. Mr. WIGGLESWORTH. Ireland is set up for a small importation of 200 freight cars, with no other figures on this table. Is there a shortage of cars, or is that for replacement? Mr. TUTHILL. Ireland, on January 1, 1948, had 22,760 cars; and in 1938 she had-prewar-19,456. But in terms of ton kilometers carried, she shows 414 million metric ton-miles for 1938 as compared with 700,000,000 in 1947, and an estimated 735,000,000 in 1948. In other words, this is something less than the normal replacement, but we do feel that Ireland needs a small increase in freight cars over what she has today. Mr. WIGGLESWORTH. Italy shows no importation of freight cars from any source. Mr. TUTHILL. That is correct. Mr. WIGGLESWORTH. The Netherlands shows no importation from any source. Mr. TUTHILL. That is correct. Mr. WIGGLESWORTH. Norway shows no importation from any source. Portugal shows no imports from any source. Sweden shows no imports from any source. Turkey apparently is going to import 900 freight cars. Do you have any figures as to the number of cars she now has and the number she had prewar? Mr. TUTHILL. No, we do not have the figures on prewar or current for Turkey. Mr. WIGGLESWORTH. What is the 900 based on? Mr. TUTHILL. In that case we accepted Turkey's figures approved by our mission there. Mr. WIGGLESWORTH. The United Kingdom shows no imports from any source. Mr. TUTHILL. That is correct. Mr. WIGGLESWORTH. Bizone Germany is set up for 30,000 freight cars to be imported, of which ECA financing will cover something less than half, 13,340. What is the picture there in terms of cars prewar and today? Mr. TUTHILL. Prewar in the bizone area: There were 335,000 serviceable cars; there were, about the middle of March, 233,000 serviceable in the bizone area, and the bizone people have estimated that they need 282,000 by the end of the year. |