The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1913-03-25
THE NATIONAL
COPPER BANK
Specializing As To The Effect OF
Opening The Panama Canal Upon
Business In Inland Cities

There is much speculation in all
quarters as to the effect upon bust
ness that may be exerted by the
Panama Canal with its alterations of
traffic currents. In the coast cities,
both east and west, few of these
alterations seem fairly easy to fore.
cast, but with interior points like
Salt Lake City the influences at work
will be very complex. Yet the canal
is of no less interest to us than to
the coast cities and we have thought
it worth while to bring together what
seem to be the best conclusions on
the matter without, however attempt
ing any specific predictions. Such an
attempt would be ridiculous, for it
cannot be known in advance, even
by the shrewdest traffic experts
what the actual freight rates between
the Atlantic and Pacific seaboards
will be by rail and water, or what
their exact effects upon business will
be. Enough Is known, however, so
thst 1t is possible to forecast in a
general way the probable lines which
changes in the traffic and rate poll
cies of the intermountain roads Will
follow.
It is obvious that water competi-
ton, whether by the Panama Canal
or otherwise, must weigh more Sc
verely upon the traffic originating up
on the seaboards OF the United
States than upon that originating in
the central portion. Whatever diff
ference appears between the costs of
water and rail haulage is increased
with the length of the haul, and the
cost of handling at terminals falls to
smaller and smaller proportion of
the total cost of freighting. Conse-
quently the railroads have in the past
endeavored land with success) by
means of the Missouri River blanket
rates and otherwise, to withdraw
/
board to cities like Pittsburgh, Cleve-
land and Chicago, from which they
would be able to meet the water
competition on traffic from the At
lantic coast, and from which con-
stantly growing tonnage would flow
east as well as west, even If only
fn ft.a1 oh bxr, o. he
Pacific coast. By, this means they
not only projected their own rail
shipments to the west, but forced a
division of tariffs on westbound ship
ments going via Atlantic seaports.
This has resulted in the transforma-
ton of the middle west into a manu-
featuring territory, to such an extent
that in 1911 "a per cent of the ship
ments to the Pacific coast originated
in the Chicago territory, or west OF
it, as well as about 80 per cent of
the shipments to the intermountain
territory.
Lacking in the beginning any real
center in the intermountain country
which could be used as a distributing
point for its scattered population, it
was a measure of economy for the
railroads to carry supplies clear
through to the coast cities which
We're larger, and to allow the coast
jobbers to attend to distribution. A
small profit was netted on the long
haul and there was additional profit
in the rather high rates charged for
the back haul. 1t was the custom to
base rates to the intermountain coun-
try on this procedure, even though
the freight were as a matter Of fact
hauled directly from its eastern point
Of origin to it's intermountain destin-
! alton. Similarly stiff determinations
were made on goods shipped out Of
the intermountain country, and the
whole constituted a heavy charge on
our industries, whose sturdy growth
in the face of 1t indicates rather the
natural resources back Of them than
any commercial advantage. The stu
alton has been much alleviated in re-
cert years by decisions Of the Inter
state Commerce Commission and by
the natural effects of the growing
Importance Of our commerce, but the
net result has been that the inter.
mountain country has Jagged behind
the more strongly stimulated middle
west and coast, although 1t has no
less merit. The question now Is whe-
Their the opening Of the canal will
radically alter the conditions which
led to the formation Of this policy.
II is unquestioned that present in
ter coastal water rates can be sharp
ly lowered by the opening of the ca
nal, and II Is estimated that the can