The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-19
Readjustment of Long
Haul Rates Inevitable
and Important De-
velopments in Stocks
Expected With Open
ing of Waterway
ny ROGER W. BABsON.

nave Deeh H'aue Wy se"'"s SUI VI.
stocks OF the various express COMPANIES.
moreover "o'"''S W s"' 800
likewise nave save" ,"en.s ~
amount Oh money U! "eeu'"s '"e ""''ee
given.
As soon as the parcei posi- "eas"e
was put through the Seha'e IL was
common knowledge inst ."e "n, ~ou'u
become law yet ohIE ie" ""iue's VI
the express Stocks had energy enough
TO sell: wnen the Dill was sisheu ny Tue
PRESIDENT every one khe" tn", .ne
parcel post wouiu DE ihaueura'eo anu
yet very ittie express company SUN
was even then so'd; WINE "heh 'ne par
eel post was actually IN operation amer
can Express STOCK was se'iihs oV Poi"'s
higher than AT the present tiine'
AS Yesterday passed tnr"uSh 'ne
Fanama 'ahai ana Witnessed 'his srea'-
est piece OF engiheerins WORK winch .ne
world mas ever seen wohuereu IL 'ne
stocks OF certain transcontinen'ai ran
roads are TO pass tnroush 'ne sumo
experience as nave the STOCKS OF the
express companies. AS was the case
with the parcel post iegislation' we all
Know that the fanama 'anai Is soon
to be an accomplished fact: moreover
the toll question-so very important 10
the raiiroads-ls on the point OF peihs
settled. but. ike the stuoporn OF lazy
investors in express company STOCKS
the holders or our transcohtihentai ran
road stocks refuse even In consider what
the erect or this canal VIII ne on tnelr
securities certainly the hanuWrl'lhs
Is on the wall ana Tor those Interested
IN reading TINS handwriting l VIII sun
NIT Few racts' III nrst must ne uhuer-
stood that the canal ~ aIreaoy com
pleted ana Will ne IN iuli operation TINS
very year.
That there must he a reimbursement OF
long haul rates Is inevitable. the en-
TIRE structure OF rahroad rates Is most
uehca'eiy pa'ahceu anu "ios' easily al.
iec'eu %! even remote '"""e"'es' =
'ne reuuc'i"h Oh rates wou'u s""P's
chahge the rates from seaooaro 10 sea
poaru II "ou'" ne comparatively SIM
PIE proposition 10 ascertain WHAT 'he
erect Oh opening TINS cahai VIII ne on
'he 'rahsc"h'iheh'ai rai'roaoS' AS soon
as chahSe II n'a"e IN the rates from
seapoaru 10 sea,'ar"' however r'a"-
J"s'meht Oh th""S'hu of more "'ne'
rates IS OFTEN necessary. AS the NOV
ing Oh one DITCH III pu!'u'hS he'essi-
'ates the MOVING OF every "ri'K' SO 'he
chanse :" one important raii"au ra'e
may necessitate remodeiling the entire
structure
The total eastbound transcontinentai
tramc amounts now To apout a.ooo'ooo
ions annually over nVe-siNths OF which
" carried %! the RAILROADS. Inc west
bound tonnage Is ABOUT the same
amount. although much "t II or'gihates
IN the interior OF the country IL VIII
De seen therefore, that the totai trans
continental business al the present tlme
amounts 10 more thah oo"",ooo tons
year. OF Whlch more imam o'o""'"Vo IL
carried by the rallroads ana less IMAM
i'ooV'ooo tons ID! the steamship lines
That the railroads will lose a certain
proportion of this business Is fore
gone conclusion. but as the profit upon
this business Is not large the loss or
this business by itself need not cause
much worry. In other words II the
steamship companies which are operat-
ing coast to coast trade will keep up
the rates and avoid the cutting OF rates
through competition among themselves
investors in transcOntlnental railroads
need not have much to fear.
As, however. Mr.. Morgan learned from
sad experience after organizing the
International Mercantile Marine COM
pany II ~ iHiposs'o'e 10 p".''c UP inc
sea or form MONOPOLY Oh ocean OF
coastwise tranlc' Na'''"aos are
natural monopoly, Dut not SO Win
steamships, In fact II Is practicaiiE I'M
possible to estabiish ana hoiu i"r any
length OF time steamship or coast
wise monopoly. rms means that so
long as the steamship companies wang
together ana are content with COM
peting with the ralIroads there VIII ne
but little reduction III rates ana hehce
the railroads VIII not lose much III net
earnings through the opening OF the
Panama Canal On the other mana II
these steamship lines get 'ut'lhR each
others Threats, materially reuu'lhs the
rates, then the railroads VIII ne opieeu
to reduce their rates TO hoid any pusi-
ness as well as tn lose certain business
altogether. Hence the repeai Oh 'ne
free tolls clause may ne Oh great pehe"'
tn the railroads.
In other words as ! nave talkeu Win
engineers here In the Canal zone, am
continually asking myseH the question:
Whom Is TINS canal 10 pehen'' IL IL
to benefit the shipping interests whose
linz nod