The Washington times., 1916-01-02

| anticipated; and, although some Of the
ablest traffic men In the country have
diligently to adjust rates, divisions, pro-
portlonals, ETC., to the new situation
they have really not begun to master
the big question. An Eastern railroad
Official, talking OF this. said:
Western Roads Suffer Most.
The Eastern roads have not suffered
nearly so much by the canal competi-
ton as have those Of the West. Freight
rates are very much lower east of the
Mississippi. and especially east of the
missouri, than beyond. This differences
is so great that 1t has brought about
some strange results.
Our road, for instance, has handled
freight from California destined to Iowa.
which came through the canal to New
YORK. then was transferred to the rails
and actually hauled west beyond the
mississippi to be delivered: and the
shippers saved money on II. 1t waS
cheaper to bring the business clear
around the continent by sea and then
maui 1t more than 1000 miles by rail
AT the low rates charged on the Eastern
lines than to bring It eastward over
| the railroads, 1000 miles at the high
rates that prevail West. That is all
there Is to that detail.
The Eastern roads have thus picked
up considerable tonnage that they
every pound of 1t was lost to the West
ern lines. This has been hard blow
to the Pacifics. and the readjustment of
rates to meet the condition is going to
require long time.
Canal Beats Railways.
There Is another aspect not yet
very widely understood. The canal
route handles freight across the coun-
try. on an average. in less time than
the railroads. The fast fruit express
trains can cross the country quicker
than the canal route can deliver the
goods, but as a rule they do IT only
under heavy pressure. Commonly. tie
fast freights just about meet the time
OF the better steamships via the canal;
while. when 1t comes tc low class,
heavy fre!ghts. the canal beats the
railroads right along. This advantage.
Of course. Is most important right at
the seac"ast towns. when freight
comes via the canal. say TO New York.
ard then must be transferred to the
railroads for n haul inland. and worked
through the congested Eastern ter
.minals. much Of the advantage Is lost. y
This congestion OF the Eastern roads
is reaching proportions that give great
concern to both railroad men and Gov
ernment administrators. Tic same Of
20 Our r'r road has Al its terminals
around the seahoard backed with cars
or freight. the Jam IS packed hD. IA
water by a dam. clear across Nov Jer-
sev The Pennsylvania has freight
backed up as far as Harrisburg. Part
of The trouble is due 10 the slack sup
ply OF ships to take it away.
such a condition makes operation
fcarfulIy expensive. We have. say. 1000
carloads of freight in our wards tribu-
tarv to New York A steamship IL
sighted off the Hook. which is chartered
to take out. say fftv carloads of this
stun. Our freight people are notified.
Roads Face Hard Problem.
"It means that they must fish those
finv carloads out OF the mass OF plled-in
freight switch them to the boats track.
and got them unloaded. You may i'm
agine what 1t means to nnd and then
move fifty carloads out of that chaos OF
miles on miles Of cars"
This suggests the answer to the nues-
tion. where the big gross receipts OF the
roads are going. that don't seem to he
fully reflected in increased net. They
are going TO increased costs OF OPERA
tion. The roads face the hardest prob
lem they have ever known; and 1t IL the
worse because II Is precipitated upon
them at time when they are Just COM
ing out of a period of depression during
which physical conditions got good
deal demOraliZed.