The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-07-31
PANAMA CANAL IS
NOW Bette N0|R
WALL STREET ExHAUsTING ALL
OTHER sCAREs, WONDERS
ABOUT THIS.
TO BENEFIT RAILROADS
EFFECT ON TRANsCONTINENTA
LINES WILL DE TO PREVENT
WASTE AND MAKE
SAVING,
TO BENEFIT RAILROADS
BY THOMAS @. suoTWEIL.

by THOMAS G. SHOTWELL.
NEW YORK, July 30.-Congress
politicians and crops have been dis
counted In the stock market and Wal
Street has hunted up something new
to worry about, it is the Panama
canal This canal is so nearly com
pleted that Wall Street wants to know
what effect II will have on the prices
OF securities, particularly those of
the transcontinental railroads. The
answer is easy. 1t will increase the
net earnings of the railroads., increase
the number of their employees and add
materially to the market value of all
railroad and industrial stocks in the
United States. The reasons are many
and clear
Chief among the reasons is the fact
that the Panama canal will enable
the railroads to eliminate waste in
transportation. Between the produc-
tive regions of the Pacific States and
those Of the middle States lies a great
region of desert and wilderness II
| AXE sthe average freight train "a
to IS hours to cross this section of
geographical and comme rcial chaos
Every ton of freight moving across
the continent has to be dragged
through this tract and the entire OPP
GRAFTON Ia an economic waste. Cost
OF this wasteful transportation Is high
and the whole performance is a com
plete loss both TO the railroads and
10 the public. The canal will Gu,
| out all this wasteful handling of
freight and enable the American rail-
roads to operate to full advantage
every part of their system
Eliminate Waste.
Freight offended for the Pacific
slope originating along the Atlantic
seaboard will go by water through
the Panama canal and will be dis
tributed locally from the Pacific sea =
coast. AS the railroads have their
organizations perfected and as many
terminals at the proper places they
will organize great steamship lines "a
handle this freight. 1t is officially
stated that by using the Panama
canal. San Francisco will be only
fourteen days away from New York
City. There Is not a railroad coun-
try that can guarantee 10 land freight
in San Francisco from New York in
SO short a time. Speed in the de-
livery OF freight is getting to be as
much a consideration as cheapness.
This reduction ia the time of delivery
of freight will increase the demand
in the far West for the products OF
the East and vice versa.
Waste Is also being eliminated hy
the railroads In the matter of equip
rnent. The general managers have
been surprised at the additional ser
Vice they have been able to get out
of old cars and locomotives since the
Interstate Commerce Commission
ruled against an advance Of freight
rates. They have also learned TO
use white lead freely to paint equip
ment. The Lake Shore, for instance
Is understood to have $50 locomotives
standing idle in one yard waiting UNI
der heavy coats of white lead for re-
vival of business.
Ii Is hard to give UP a theory BIZ,
it really begins to look as though the
railroads would not he forced to do
any abnormal amount OF buying in
the near future from the steel com
pany.
Nothing But Ghosts.
Al first this would seem to be an
argument against the prices of steel
shares. But steel is being helped by
the growing disgust of the public
with the aimless Investigations that
have been developed by politicians To
give employment to Congress during
the dull period and to dig UP posi-
bic campaign material. A commit
tee of Congress has been digging in
steel TRUST graveyards FOR Several
weeks, and steel shares are selling
for more than they were when tile
work began. The reason is that ro-
hSt IN 1A
committee has found has been the
ghosts of pools and trade acre sn,ents
long dead.
Furthermore, the public is finally
being educated to the fact that II Is
not an economic crime to lump the
surplus production of steel alb cad
to cost plus freight. II this could not
be done. the mills would have 20 re
operated with smaller capacity and
at cost plus freight. II this could not
er. 1t is DOUBTFUL If any reduction
of tariff will make material lirerene .
in the prices charged FOR steel any
where In the world. Security markets
are concerned with facts AMI not win
motives.
Germany furnishes an inspiration
for security holders Of the United
States. A few years ago the Ger
mans were IN exactly the same mud
die that Amefacans are now. Eracti-
cally everything that can be dons In
Germany IL prohibited by law. But
the laws have become dead LISTERS
and exist only to frrghtsn business
men who might otherwise go too fer
along lines that are proper when pur-
sued moderately but that become
criminal when carried 20 eNt-emer.
After years Of panic and CONNER
cial depression Germany hes emerged
into an era OF unexamp,ad p-ospel .ty
So will II be In the United States.
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