Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1898-12-21
ROBERT GILLIAN SAYS THAT 1T IS
TO MEET NEW CONDITIONS.
COMBINATIONS ARE UNWISE
DOWNWARD TENDENCY OF RATES Is
IRRESISTIBLE.
Increase Of Train Load and Decrease
of Train Mileage, Securing Low
CIR Ton Mile Cost, Is the
robIe Which Roads
Must Solve.

There is nothing of so great importance
30 Kansas City and the Central West as
reasonable transportation rates" said Cen
eral Manager Robert Gilman. OF the Pitts
burg * Gulf, the other day.
Rates covering the transportation OF
products Of the farm, the woods, the
mines and factories determine and regulate
the movement of trade. its volume and
market. On one or more occasions a few
years ago some of the farmers of Ne
braska and additional states were COM
PEELED TO let products of the farm perish
in tho field and actually burned corn in
the winter as fuel because railway rates
were too high. restricting the movement
OF crops to a market. We will never wit
ness a return of similar conditions.
The crops and surplus products must
be moved at such rates as will insure a
ready market. either at home or abroad,
otherwise the products of this country
cannot be placed in the markets of the
world. II railway rates are maintained too
high. the grain products of the West can
not possibly find a foreign market. Amer
lean grain will be unable to compete, in
price. with grain secured from other
sources of supply. High rate conditions
3n railway transportation of this country
made it possible for Europe to purchase
in Argentine, Egypt and other countries
at prices much below that at which Amer
tcan grain. at given periods. could be sold
In the markets Of Europe. With the COM
pletion of the Siberian railway. new
sources of grain supply have been opened
up to Europe. and transportation rates
alone will determine TO what exte.rr Siber-
ian grain will compete with American
grain.
Railway rates in his country awe for
years continued to be reduced until at this
time the rates as a rule have approached
that point where IL is possible to move all
manner of products to foreign markets in
direct competition with other sources of
supply in the world.
In 1867 the average rate per ton per
mile on 20 per cent of the railroad mileage
OF the United States was l.92 cents, or an
average revenue from each ton hauled of
sl.69. In 1896 the average rate per ton per
mile on 50 per cent of the railroad mile
age of the United States was s. of a
cent. or an average revenue of s1.03 from
each ton hauled, a difference of &C cents
per ton. The question as to our ability
to supply foreign markets with our manu-
featured products and meet competition de-
ponds largely on transportation rates in
this country.
Must Change.
THE time has come in railroading when
important changes in methods of operation
are certain to take place. Railway asso-
Citations will find ii more and more difficult
to form any sort of a combination or
agreement tha will check the downward
tendencies of rates. There is only one
thing left for railway managers TO do, and
that is to meet the new conditions. Ad-
vanced students of railway operations. men
of large experience in these matters, like
Mr.. James Hill and ]. I. Odell. have done
much in demonstrating what must be done
in order to meet the new conditions. The
average rate per ton per mile in 1896. as
reported by so per cent of the railway
mileage of the United States was $ of a
cent. 1t is likely to drop to IS of a cent
and perhaps between ; and 6 mills.
IF this be true then there are many
railways in the West that will not be able
TO avoid trouble. and withstand low rate
conditions, unless they prepare their prop
critics TO meet the new conditions and make
essential changes in methods of transpor-
tation, and in the physical condition of
their properties. Note the changes In rates
and the downward tendencies:
Rates per 100 pounds from New York to Chicago:
goods. and shoes. Tea. Drugs.
49, d. Sc Sc nM So %
Wheat rate Chicago to New York (all raid:
1851 ss ava r,;n u 80
Corn rate Chicago to New York:
Per bu.
1SI
1887 nake and 6.g-
Many other cases could be referred to-
but these are sufficient to indicate the
downward tendency. The question is ask
ed: What are the railways going to do?
They will be forced to the adoption oil
heavier steel rails. larger capacity cars
heavier motive power. stronger bridges. i'm.
proved physical condition of railway prop.
and a proportionate reduction in train mile.
age. thus securing a much reduced tor
mile cost. If possible a onger average
haul for the tonnage transported.
1T is true the Pittsburg & Gulf railroad
has been referred to by some of the com.
peting lines in terms not wholly agreeable
hut these lines will have these new con.
ditions to meet. they cannot avoid them
The Pittsburg * Gulf is prepared TO meet
low rate conditions and will make more
net revenue. having met these conditions
out OF the higher prevailing rates of to-
day.
The Pittsburg & Gulf has no intention
OF cutting rates. but when necessity en-
forces new conditions. We will be prepared
as We are now. to meet them by havins
superior physical conditions. and a thor
oughly organized transportation depart
ment. securing maximum trainloads an,
minimum train miles, consequently n re
duced ten mile cost. Rates to the Sc;
will determine largely the direction of ton
Saa9 ARN~ 90 $500,