Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-08-06

tonnage of approximately the normal in
crease in west-bound transcontinentsl
freight for q single year. In giving this
figure we are allowing to the American
Hawaiian line all the advantage Of the
accumulated business Of the six years pre-
ceding 1906, in which it had in operation
its steamship line through the Straits Of
Magellan. Considering that this carrier
has reduced its time Of movement between
the Atlantic and Pacific to an average OF
a little more than twenty-five days and
gives a service that never before has been
equaled by an ocean line, the slight in
crease in its tonnage either evidences that
all-rail rates are more attractive for the
great volume of business or that the
water rates are maintained at a figure
so nearly approximating those extended by
the rail lines as not 20 overcome the diff
| ference In the service.
The Ocean .sNeutrnIiEed."
We have thus traced the history of this
/ protracted struggle between the ocean and
/ the land carriers that we might clearly
appreciate the strategy OF the railroads
and its effect upon the ocean-borne traf-
fic. One water route after another has
been rendered innocuous To meet the
competition OF the railroads the tendency
of the ocean carriers has been to shorten
the time consumed in passing by water
from coast to coast The clipper ship has
been forced TO give way to the steamship
and the steamship has been compelled to
transship by rail a portion OF the distance.
The routes by way Of Cape Horn and the
Straits Of Magellan have been virtually
abandoned For nearly forty years the
Panama route has been under railroad
control When an attempt was made &c
| re-establish this route as q vital compeu-
| tor, the railroads used their own ocean
and-ran line 20 eliminate IL from the field
So that for several years there has beer
but one ocean line which apparently has
no railroad connection, that OF the Ameri-
can-Hawaiian Steamship company; and
this line lives upon sufferance, its rates
being made with the knowledge Of the
railroad company and with a more or less
definite relation TO the transcontinentAl
rail rates Within the past few months
another water competitor has entered the
field. the California Atlantic line. which
has done an extensive business both east
bound and west bound for the short time
that it has been In existence, but tn
prophecy made by the railroad witnesse
is that It wifi not last long.
Confederation Due Water Competition
In the light OF this history 1t is not I
be gainsaid that the transcontinental line
must give consideration 70 sea competition
For thirty years and more their effort Ia
been to 'neutralize and control" such com
} petition, in the phrase of Mr.. Stubs, vic
president of the Southern Pacific system
While they have subsidized. bought. an
J controlled the water carriers there ma
E4Nays been present 20 the mind OF IN
traffic manager Of the transcontinents
! railroad the existence OF the ocean and III
! / disability OF its use. Without a ship upo
II the ocean has tn : power TO restrain. 1
I some degree, the upward tendency Of raj
rates. A railroad may not safely induls
! its desire 70 impose AL the traffic viii bea
between two ocean ports. and ii may trul
be said that the least pOetical Of rAilnoA
{ traffic managers never looks upon n
ocean without sense OF awe.
The railroads. moreover. must soon me,
6 with 3 competition by water more intenl
= than any that they have heretofore su
Tered, for within three years another rout
E one more important searching and detei
Z minative In It's effect upon railroad rat,
a than any other viii be opened-a route. a
. water by way OF the Panama canal II
j cutting Of this canal viii IN effect brin