The Washington times., 1916-01-02

anuclpated; and, although some OF the
aplest traffic men In the country have
Peen Tor the past two years working
diligently to adjust rates, divisions, pro-
poruonals' 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 30 much by the canal competi-
tion 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 II 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 it. 1t waS
cheaper to bring the business clear
around the continent by sea and then
maui It 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
never had a chance to touch before; but
every pound Of II was lost to the West
to the Pacifcs, 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-
NRNs L.. Lee -
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 to low-class,
heavy fre!ghts. the canal beats the
railroads right along. This advantage,
of course is most important right at
the Seacoast towns: when freight
comes via the canal. say TO New York.
railroads for haul inland, and worked
through the congested Eastern ter
.mlnals. much Of the advantage IL lost 1"
This congestion OF the Eastern roads
is reaching proportions that give great
concern to both railroad men and Gov
ernment administrators. The same Of
"our road has an it's terminals
around lne EeNUOdTO UAChe1 WIFI cars
Of freight the jam Is backed uD. M
water by a dam. clear across NGM Jer-
sew. The Pennsylvania has freight
backed uD rs far as Harrisburg. Part
Of The trouble is due TO the slack sup
ply OF ships to take II away.
Such a condition makes operation
fearfully expensive. We have. say. 1000
carloads of freight in our yards tribu-
tarv to New York. A steamship Is
sighted of the Hook. which is chartered
to take out. saw flftv carloads of this
stun. Our freight people are notified.
Roads Face Hard Problem.
"It means that they must fish those
fifty carloads out of the mass OF plled-in
freight. switch them TO the boats track,
and get them unloaded. You may i'm
agine what It means to find and then
move fifty carloads out of that chaos of
miles on miles OF cars"
This suggests the answer to the uues-
tion. where the big gross receipts of the
roads are going that don't seem to be
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 II is the
worse because II is Drecipitated upon
them at a time when they are Just COM
ing out of a period Of depression during
which physical conditions got a good
deal demOralized.