The Washington herald., 1918-03-06
Remuneration Basis.

Pennsylvania and all empties over
the Baltimore and Ohio.
Remuneration Basis.
But the stickIer in this PROPOSE
lion is how to arrive at a basis
Of remuneration for the line which
carries the unremunerative class of
business represented by what are
called the "empties."
So far as passenger traffic is con-
cerned the Vanderbilt system is ad-
mirabIy qualified to handle IT what
ever the demands may be. II is
grades to handle freight. pTesum-
ably at lower cost than any other
railroad can do that.
When Commodore Vanderbilt uni
fed the various Independent rail-
road lines which operated between
Albany and Buffalo. bringing the
Hudson River Railroad INTO the uni
fed family. he looked chiefly upon
freight traf1ic to and from the West
as the means by which the great
est revenue for the system was 10
be secsred. He argued that FOR ne
entire distance between New York
and Chicago the grades were very
low, there being no mountains to
overcome as u the case with the
Erie, the Pennsyly snia and the
Baltimore and Ohio. There were
stretches of many miles Of almost
praiTie-like iatness between Albany
and Chicago. and the Hudson River
line is constructed for the entire
distance between New York and
Albany upon the bands Of the river.
Immense volumes of freight were
daily. offered at Chicago and other
points m the West for transportation
to the great Eastern market. The
Commodore believed that with tine
low grades and the long tangents his
system could carry this traffic, even
wheat. at 50 low a cost as to give to
the Vanderbilt lines supremacy,
There were many who doubted
whether he could compete with the
vessels of the Great Lakes and the
Erie Canal so far as the Transports
ton of wheat was concerned.
But he did demonstrate that it .UUld
be successfully done aud thai wheat
could be removed from Chicago or
lake ports to New York over the Van
deT!biIt lines at = cost per ton mile
50 small that the canal boats and
1 the vessels upon the Great Lakes
would find it impossible To match the
freight charges.
That was one and probably the chief
reason why the Erie Canal gradually
lost business and WIZ the State of
New York at last was willing to ap-
prOpriate S15OO0O.OOO for such enlarge
ment of the Erie Canal as would per-
init steam driven barges of 1,OOO-ton
capacity to navigate that canal from
Buffalo TO the Hudson.
Il was chiefly because the Wander
hiIt lines by reason of low grade and
long ta1gents could transport freight
at less cost than any OF the noun
tain crossing trunklines t6at the ques-
tion of differentiaIs in favor of these
other lines was earnestly advocated
md at last in some measures adopted.
Yet notwithstanding the advan-
tages possessed by the Vanderbilt
lines for Transporting traffic, II
seems probable that Director Gem
eral McAdoo. for reasons which ap-
pear good to him, will direct that
all passenger traffic between Chi
caeo and the East be concentrated
upon the New York Central lines,
all freight traffic upon the Pennsyl-
yanIa lines, while the cars that are
returned empty are to be transport
ed over the Baltimore and Ohio.
Were this plan to be adopted the
capacity of the Pennsylvania sys-
tenn as a freight carrier will be tax
ed to its utmost. Some of the rail-
way mana gers believe that IL will
be impossible for the Pennsylvania
no matter how great its facilities
are for handling freight, to trans
mort much the greater part OF
freight between Chicago and the
midwest to destination at the
Eastern market
The situation, however, is such
as to compel speedy action. perhaps
drastic. by Director General Nc
Adoo.
There is confidence in railroad
circles that the decision that Di-
rector General McAdoo will finally
reach will be the best possible So
luton Of the problem. The Wall
street Journal reports that, IN gem
sra1. railroad officials feel that the
traffic problems of the country
enormous as they are. have been
placed In highly competent hands
ana that Mr. McAdoo has surround
ID himself as Director General OF
lhe railroads with an able stan OF
advisers.
He certainly has secured the ad-
vice and services of men who stand
iire-eminent as managers and opeF-
(stors Of railroad systems. This Is
notably true in the case of the
president of the New York Central,
n n Smith. upon whom Mr.. Nc
Adoo has placed the responsibility
for handling the traffic situation in
much the greater part Of the trunk