The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-11-05
DARK THREAT
OF RAILROADS
They Will Put the Erie Canal Out of
Business Even if It's Re-
Suilt.
The All-Rail Rate to the Seaboard
Is Now, Beyond Question, Too
High.
Millers Doubt Whether the Canal
Would Not Hurt Rather Than
Help.
to The Journal.

Special to The Journal
New York, Nov. 5.-'If the Erie
canal is ever rebuilt, the railroads Will
put it out of business in less than
year, making it as useless to the pro-
ducers as is the present waterway.
This statement was made to-day by
an executive traffic official of one OF
the large railway systems, and was
backed by the general sentiment eH-
pressed in railroad circles.
Another statement of sensational
character was to the effect that the
Erie canal improvement never would
be accomplished, as the railroads
would find some way of defeat
ing the undertaking. The boast that
the railroads would be able to COM
pete more than successfully with the
rebuilt canal, capable OF floating only
1000 ton barges, is not considered by
traffic and transportation experts an
idle one.
The problem, in any event, will not
have to be met by the railroads for at
least generation, as it will take that
length of time to complete the i'm
provements contemplated by the ex-
penditure of $1O1,000,000. By that
time, traffic conditions and the cen
tiers of production may have changed
so materially, it is thought, that the
problems presented will be entirely
different from what they would be to-
day if the canal improvements were
now complete.
Back of the traffic experts bold as
sertion lies the fact that the rates now
charged for the transportation OF
grain and grain products. at least,
from Chicago to. New York and other
seaboard ports are far in excess OF
those necessary to fair profit. The
present rate on grain by lake and
canal from Chicago to New York is
| 10 cents per 100 pounds, and by rail
IA cents. That the railroads could
carry the grain at the 10 cent rate
and make a good profit is we'll known
| in traffic circles. The Lake Shore
and New York Central route, for ex-
| ample, can easily haul a train load OF
| grain containing 1000 tons. Such a
train load at a 10 cent rate would
produce a revenue Of $4,000. The
cost of transporting the grain includ-
| ing interest on the money invested is
at the outside not more than $1,000,
| leaving net profit of $4,000. At the
| present rate Of increase in trainloads
and corresponding smaller percent-
| age Of increase In operating expenses,
the, railroads would be able to reduce
| transportation charges still further,
| long before the canal would be COM
pIeted and could maintain rates
| which would make it impossible, it is
claimed, for the slow moving 1000
ton barges to compete with them.
1t is generally recognized by rail-
road men, however, that anything
that reduces the cost Of the transport
tation of food products to the chief
markets will greatly benefit the pro-
Queer. The real purpose of the canal
is taken by railroad men to be pri-
marily to assist New York in obtain
| ir,or inf mi a
market as against the other Atlantic
and Canadian ports.
The revised vote on the canal prop
osition in greater New York was: For,
436,230; against, 1860; plurality in
favor of canal 382,967.