The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-13
RAILROAD RATES HIT
BY PANAMA CANAL
Commerce Boards Report Says
Water Carriers Force Keen
Competition.
NEW TARIFFS PLANNED

wAsHIN0roN Dec. 1.-THE marked
effects Of the opening Of the Panama
Canal on transcontinental railroad rates
are set forth in the twenty-ninth annual
report OF the Interstate Commerce
Commission.
Opening of the canal. tho commits
sion says. has resulted In a material
reduction Of railroad rates TO meet the
moro aggressive water competition.
New tariffs authorizing the reduction
OF long haul rates have been approved
and the commission is now scrutinizing
other tariffs. readjusting freight rates
to meet new conditions.
"Since the opening OF tho Panama
Canal" the commission says, the water
carriers have materially reduced their
rates, shortened the time OF trgnspor-
tation, increased the frequency OF sail
ings. added to their tonnage capacity
and largely added to the tonnage Sc
cured OF this coast to coast freight. 1t
was shown that there are in the ser
vice between the Atlantic n Pacific
coasts forty-nine ships. with a capac-
lily OF over 100000 tons.
Tonnage Moved by water.
1.-THE total tonnage moved by water
from he Atlantic TO the Paiiic coast
and TO the Hawaiian Islands for the
ear 1911 was 1891 tons for 1912.
45l.5s2 tons: for 1913. 43%.ll5 tons
while for the month of September. the
first full month after the opening OF
the Panama Canal. the tonnage from
tha ttlunti. fn tha IiugiHs cpust mort Y
Mas 1913 tons. or more than twice
as much as the average monthly tom
mage for the preceding year"
The tonnage handled by the water
lines was moi, confined TO traffic origi-
mating along the Atlantic coast. the re-
port adds. but included Il great deal
originating IN the interior. Much of
/, was steel from the Birmingham dis
trlct through New Orleans and from
Pennsylvania and Ohio through At
lantic "A ports.
at was evident" the report continues,
that the degree OF competition between
the rail carriers and water carriers for
traffic between the Atlantic and Pacific
coasts has been largely increased by the
new conditions created by the opening
OF the Panama Canal and that 1t was
necessary for the rail lines to make
material reductions In their rates II they
were 10 expect 10 ODl1ln any tpilsIitl-
able percentage OF this coast to coast
traffic"
While there has been a reduction In
the work of the commission In some re-
spects there has been an expansion OF
its activities In others largely due 10
Investigations called for by Congress-
Because OF the variety and volume OF
work the commission recommends an
early enlargement OF membership with
statutory power to act through sub
divisions.
Asks for Larger Powers.
Tho commission also recommends
tina II receive increased powers to give
spondence files OF common carriers. II
roposcs that there should be appro-
pirate and adequate legislation on the
talisation. hat the use Of steel cars in
the passenger service be required and
tina the use Of wooden carr between or
In front Of steel cars be prohibited.
Tho physical valuation of the rail
roads which the commission is carrying
| out by direction of Congress will, not
according to estimates embodied In the
report, he completed IN less than fou or
Ave years.
Only 5000 of the 100000 miles OF
| railroad In the United States will have
| been covered by the roadway and track
parties by the beginning OF the new
year. It will be probably some time af.
ter 1890, therefore. before the task Is
| completed.