The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-08-21
RAILROAD NEWS
Plan to Divorce Water Lines
From the Railways.
Reimbursement of S1OO,OOO,OOO
in High Property.
RUIN MARINE TERMINALS
Bill Will Affect Usefulness of
Waterways.
Other Items of General Interest
in Traffic World.

Cincinnati, Aug. 21.-Readjustment
| of the ownership of property valued
at 800, 900, 600, possibly more, or pro-
longed fight in the courts, will follow
the expected signing of the Panama
canal bill by President Tart
If the railroad companies are ADVISED
by their counsel that it will be unWise
to fight the law in the courts, steps VIII
be promptly taken to divorce the wafer
| lines from the railroads. Leading rail-
road men, among them General Solicl-
tor Patterson, of the Pennsylvania are
| apprehensiVe that the bill may afect
the usefulness to the railroads of mucn
of their marine terminal property, and
thus might affect property of an ag-
gregate value much above the 100000
| 900 mentioned.
The New Haven railroad has much
the largest interest at stake. Its in
vestments in steamboats, and property
connected with water operations APP
proximate $25,000,0O0 Marine equip
ment controlled by the Southern Pa
cific comes next with a value prob
ably approaching $20,0O0,000 but this
estimate includes the Pacific Mail
Steamship company, of the stock of
which the Southern Pacific owns only
a little more than half. The Southern
Pacific owns directly the q vessels in
service between New York and New
Orleans, together with tugs, barges
and much other floating equipment.
IH0 morgan line IL also owns
number OF river steamers. AltOgeth-
er, the Southern Pacifc's direct and in
direct investments in water lines is
close to SIS, 100000.
The New York Central owns all the
$l,O00000 stock of the Western Transit
company, operating fleet of u vessels
with an aggregate capacity of sc. 500
tons on the Great Lakes. This COM
pany has outstanding $1,500,000 bonds.
principal and interest guaranteed by
the New York Central. This line pro-
badly represents an investment of 81
0Oo, 900 to 100000. The Central and
New Haven together control the Rut-
land railroad, which owns all the ST.
100000 stock of the Rutland Transit
company, which. owns three vessels and
leases six, all on the Great Lakes.
The Pennsylvania railroad owns all
the stock of the Erie & Western Trans
portation company. This concern is
capitalized at $4,000, 900 in stock, now
paying 4 per cent, and $500, 600 in 4
per cent bonds.
There are many other railroad-owned
steamship properties, including the sur
v1Vor of the two great ships built by
the Great Northern for trade with the
Orient, and small scoastwise and river
lines. Probably in some cases, the own
ers of these would be able to satisfy
the Interstate commission that contin-
ued holding of such lines would
neither exclude, prevent, nor reduce
competition" and would be "of adj
vantage to the convenience and com
merce of the people," but in view of
the commissions known attitude that
would appear to be impossible in all
the more important cases.
1t is pointed out that the Southern
Pacific would probably be able to re-
tain its interest in the Pacific Mail
line by operating its boats exclusively
in the transpacif1c service But the bill
would make it harder than ever for ex-
listing American vessels to make a pro
mt in foreign trade, since they would
face the greater competition created
by the canal and by the placing of ship
materials on the free list