The Minneapolis journal., 1903-12-02
RAILROADS.
LOOKING TO GULF
J. ]. Hill Casting Eyes That Way
for Northwestern Grain
40 Outlet.
The Prospects Of Gulf Route as
Sized Up by a Rail
road Man.
Special to The Journal.

Special to The Journal
New York, Dec. 2.-Tho nothing
has been done by J. j. Hill looking to-
the formation of an alliance for his |
system toward the south, 1T is a fact
that the next few months are expected |
to bring forth a working agreement
Burlington and Northern Pa
cific grain and flour, and kindred !
reach the gulf over one of the north
and south lines.
Mr.. Hill is said to regard the gulf
outlet as the natural route for trafflc
intended for export and originating
west of the Missouri river. He Is
said to believe that Omaha and Kan
sas City will ultimately become clear
ing points for more traffic intended
for the southern route than for the
Chicago route His belief is founded
upon the most solid of bases.
Traffic must finally follow the line
of least resistance, namely the route
over which the cheapest rates can be
From all Nebraska points this cheap
est route to London, Liverpool, Paris,
Berlin and the other old world mar
kets is by way Of the gulf ports.
This fact is developed as follows
by one Of the most prominent operat-
s.-.
Taking Omaha and Kansas City
as the great distributing points of Ne
braska and the territory Immediately
north and west, the distance to New
York over the Milwaukee and one OF
the trunk lines is 1900 miles in round
figures. Against this put the south
ern route. From Omaha to Kansas
City, in round figures, is 200 miles;
Kansas City to Memphis by the Frisco
or the Missouri Pacific, 500 miles;
Memphis to New Orleans, $50 miles.
Total distance, 1,050 miles. The saw
ing to tidewater by this route from
Omaha is about 500 miles From
is 91S miles: There is saving mere
Of nearly 600 miles. The saving on the
haul from Kansas City to New Or
leans as against the haul to New YORK
is 700 miles and to Galveston SOo
miles.
Nov observe how this works out in
cost. The calculation is that trans
nortation by water costs one-third a
ton per mile of the cost a ton per mile
by rail. This ratio is about right, tho
the cost by rail may now be something
over three times as much since the
great increase in operating cost.
':On traffic from New orleans 70 70
New York by water the houl IS -
round numbers 1000 miles. Since
the saving from Omaha to New Or
leans as Compared with the Omaha
| New York route is only 500 miles, 1t
is evident that the New Orleans route
would not be profitable. similarly
the ha-Galveston-NeW ork
route by rail and water would only
save 600 miles of rail, equal to l,SO0
miles by water. But the houl IS 2,zoo
miles BY water. This route would lose
money also.
"But from Kansas City to New Or
leans the gain over the Kansas CITY
| New Y ork route is 100 miles ana oo 1o
Galveston 500 miles. These equal 2,lOo
and 2,4OO miles of water transporta-
ton respectively. It may. therefore De
| said that from all points south OF
/ Omaha it is actually cheaper to seno
grain even to New York via the gun
| provided, of course, that quick deilV'
cry is not required. This calculatlof
also assumes that trunk line rates pei
/ ton per mile are as low as gulf line
rates per ton per mile--Which, b9
the way, they are not. AS matter o.
fact, it is about as cheap in the IONS
run to carry grain from Omaha tt
New York one way as the other, tax
ing the rates into consideration.
."NOw right here comes the man
fact. 1t is not to New York that tn
grain goes 1t goes out thru tn
, straits and straight across to Europe
y It travels by all sorts of steamers. l
is carried cheap--dirt cheap the ship
pers say. Moreover the grain trans
portation of the future from NeWaO
: leans and Galveston is going to he a
, fast as good as SAFE, at as low rate
for insurance as from New York..@@iLh
Tremendous cost Of lighteragef in NeN
York is cut out, the ships loading iron
1.-THE elevators into which the train
: dump the grain ,
while the Onlalla-New ork rout
= n.>1o Ooh 1xyoc, ~
l is longer and more costly trihestha1
to New Y orl1 direct, by the rails, from
i Omaha to London by rail and waite
: thru New Orleans 8 or Galveston i
logically cheaper than thru New York
I Therefore inttthe long run Omah
: grain will go south. Omaha will be
come the distributing point for graf
: southbound instead of eastboune
That is, Of course, export grain. A
6 the present moment more than SO pc
! cent Of the grain grown in Nebrask
b is handled at gulf ports. Within fiV
years over 80 per cent will be handle
down there over Missouri Pacifi
: Katy, Frisco, Rock Island and Ill
nois Central. That is what the niue
talked of grain diversion means" E
This statement has, perhaps, a5spe
cial bearing upon the fact that tn
eastern trunk lines put up their graf
rates yesterday. Unless the calculs
tions of this particular officiaL who's
calculations on traffic movement al
generally fairly correct, are in tn
i case totally wrong, the eastern trun
D line rates must in the future con
down rather than up. The line of lea
resistance will certainly never
along the trunk lines if rates stay
: they have been.
It has also a special bearing upc
the fact that Rock Island, Frise
and Missouri Pacific are all heade
for the Gulf Of Mexico.
NEW TRAINS TO OMAHA