Reporter and farmer. [volume] (Webster, Day County, Dakota [S.D.]) 188?-1946, 1901-08-22
HILLS BIG PLANS
COMPREHENSIVE SCHEME FOR DE-
yELOPING TRADE WITH
THE ORIENT.
GREAT THINGS FOR THE FARMERS
New Venture VIII ReyOIutionfze
Ocean Transportation - Will Set
Down Our Products in the Orient
Than Ever Before -
Ocean Le~yiathicns Being Built
for This Trade

New York, Aug. 20. - James J. Hill,
III is the head and front of the Great
Northern, Northern Pacific and Bur-
lington group OF railroads, has compre-
hensive plans on foot for developing the
traffic of those companies in connection
with the Oriental trade, which he is
about to enter on a huge scale. He will.
he says, be able to carry ocean freight
in his big liners at half the cost re-
quired with the average vessel, and, al
though he talk modestly about the
new venture. his friends say he has as
sured them he will revolutionize ocean
transportation. Mr.. Hill figured out
that the surplus of the principal crops
raised m the western half Of the United
States-Particularly west of the Rocky
mountains-must find a market In the
Orient instead of being hauled east
ward to compete with the exports from
the Atlantic ports.
Must BE Done on n Large Scale.
When this can be one on a large
scale, not only will the agricultural
classes receive more for their products.
but the shipments of the railroads will
be considerably increased. Further
more, the profits of the transportation
companies will show at still larger In
crease, because they will get a greater
volume of west-bound tonnage. which
thus far Is comparatively light in the
Western states. The transcontinental
railways have plenty of freight 10
bring east, but the showing on west
bound traffic has not been so good, al
though it costs just as much to maui
empty cars west as loaded ones. Now.
according to Mr.. Hill, the building up
of Oriental traffic, PARTICULARLY from
the railway standpoint, will add largely
TO the net returns of these companies
without
Greatly Increasing
their operating expenses, for they will
be carrying back full cars, where many
Of them at present have to run empty.
But in addition to this he expects large
returns from the steamboat lines. Mr..
Hill, for the first 1ime, yesterday gave
some details CT how he will handle the
Oriental trade with his ocean leviathi-
ans of $4,000 tons capacity, which, he
said, would carry the cargo of the
White Star f%reighter Celtic, at present
the largest ship afioat, and lift the
bulk almost equal to that of the latter
ship in addition. Mr.. Hills new ships
for the Pacific trade, which are now
building at New London, will cost ST.
800, 900 each. There is an enormous
trade awaiting development in China
and other Asiatic countries" said Mr..
Hill, but in order to capture It, we
have to deliver goods to them
More Cheaply
than anybody has done in the past. To
get out share of the business we must
make the things more cheaply than
merchants of other nations, and to
build up the trade in interior points of
Asia we must. of course, reach a level
Of prices much lower than has ever be-
fore been attained. There are myriads
of OrientaIs who live on 10 or 10 cents a
day-some for less-and we must give
them cheap food and clothing. Now,
how can this be done? If we cannot
lessen the cost OF production we must
get the cost Of delivery down. We can
apply the same principal in ocean nav
igation as in railroads, carry much
larger quantities at once. The relative
cost will be less. We expect with our
large ships to be able to greatly reduce
the rate of transportation to shippers
and still make a good profit. AS a re-
suit we shall secure a large amount Of
new business in the Orient"