The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-19

than 6 per cent. Of the total tonnage
through transcontinental routes.
In change of traffic this causes
me duplication of figures but these
figures also fail to include certain traffic
growth of other roads. Moreover In
order to make n worth while analysis
one should ascertain what proportion of
this transcontinental traffic originates at
the seaboard, or east of Chicago. and
what proportion does not. officers of
the Southern Pacific have testified be-
fore the Interstate Commerce Commits
sion that not over 20 per cent. of their
transcontinental business originates east
Of Buffalo and Pittsburg and that fully
one-half already moves by water. Prof.
Emory II. Johnson in his Senate docu-
ment SIS Of the second session of the
SiXty-second Congress states that only
% per cent of the through traffic Of this
line originated from the Atlantic coast
and common points territories, 35 per
cent. from points in the East including
Pittsburg and Buffalo; CO per cent.
orig west Of Pittsburg and Buff
falo. while 81 per cent. was shipped
from Chicago territory and points west
Of Chicago.
That the railroads will lose large
proportion of the transcontinental
traffic which now leaves the eastern
coast points is forecone conclusion
Moreover they will lose much Of the
traffic originating in the great manu-
featuring centre bounded by Pittsburg
and Buffalo on the east and Chicago,
Kansas City and St. Louis on the west.
but much Of this latter business which
is lost To the transcontinental railroads
/
lines. Moreover. as above suggested. IL
the free tolls clause is repealed there
may be little change on any routes.
The railroads as whole are a good
deal in the position of the Standard Oil
Company, which is not the owner of oil
wells hut is simply a shipper and vender
| OF oil. When once asking an officer of
the Standard Oil Company what will
happen to Standard oil stock when the
oil wells in this country are exhausted
he replied:
| Nothing, Mr.. Babson. Our oil pipe
lines and pumping stations are made to
work in both directions. So long as We
are able to buy oil in Ohio. Indiana and
adjacent States We are glad to do So
, ship the same through our pipe lines
east and carry the service in our steam
|
ever. this American supply is exhausted
we Will then buy oil in China Africa and
South America. using the same steam
ships to bring the oil to this country
and pumping through the same pipe
lines. but in the opposite direction. from
the seacoast to the great cities west.
In other words. so long as this country
Is prosperous and uses oil we will have
the shipping of 1t. even when the time
comes that the oil must he manufac-
tnrcd ar substituted by denatured
| alcohol"
with the exception of the throuc h
business and that originating in sea-
port cities or territory adjacent thereto
the business OF the railroads as a whole
VIII not he seriously affected The shin
ments originating in the central West
lost to the transcontinental railroads
VIII he shipped by the Illinois Central
the Kansas city Southern and similar
noTth ana south routes to the gulf and
thenc" ny water through the canal.
Hence after talk with engineers here
on the lsthmuS ! have come to the con
clusion that the Panama Canal may
skim the cream from certain transcon
tlntntal railroads for some Years I,
come; but that large part of this
cream VIII be collected by certain mort N
ana south lines before II ever Reaches
the people Of the United States. II this
Is 50 would IL not be wise when selling
the stock Of certain transcont lncntals
To rcinrest the same in certain north
and south railroads such as Illinois
Central Kansas city southern. possi-
by Louisville and Nashville and certain
others?
owing To tn" development Of the
ia'lh' coast which viii he caused by
the opening Of tn" Panama Canal | am
not hearish on stocks liz" Aichison on
southern Pacific or certain other stocks
which viii he benefited by such drv.l-
opmcnt In the case of certain other
lines, such as Northern Pacific AND
Great Northern, am inclined To- recon-