New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-18
Oil Shipments
Bv W alter Show
Large. Increase
Traffic Diverted From Rail
Lines Because of Higher
Rates. States Report of
the Petroleum Institute
Railroads Lose Tonnage
Bulk Stations Established to
Receive Movement by
Ocean, Lakes and Canals

Increased rail rates since the pre-
war period have had the effect of di
verting petroleum traffic from land to
water routes, according to Favette B.
Dow. OF the petroleum rate committee
OF the American Petroleum Institute.
In a statement made to the railroad
executives of the Eastern, Western and
Southern territories. Mr.. Dow declared
that survey by the committee showed
that the railroads had lost a great
volume OF tonnage OF petroleum and
its products. He added that action was
being taken al this time and that plans
we're being developed for the future
10 greatly increase this diversion of
traffic to less costly means of trans
portation.
The chief development in this direc-
ton. Mr.. Dow said, was the use of
transportation OF the ocean. the lakes.
rivers and canals. Illustrating the
tendency toward water routes, Mr.. Dow
stated:
Use of Barges Favored
"A large number of bulk stations
have been established on the Atlantic
and Gulf coasts, on the navigable
rivers far into the interior and on
canals and lakes. These bulk stations
are supplied by boat and barges One
company reports that for the year 1920
part of its deliveries of petroleum
products by barge to points in official
classification territory from Maine to
Illinois amounted to more than 2O0.-
600 tons. A company which does a
large business in the Southeast has
substantially readjusted its whole
transportation service by the esta b.
lishment of bulk stations, which can
be reached by water facilities.
another concern. which has made
reports that within the last year it
has displaced rail shipments by barge
deliveries to such an extent that it is
now shipping ten times as much oil
by water as it was a year ago
Commerce reports for July 10, 1921
issued by the Department of Com
merce. state that for the quarter end
ing June 80. 1920. 94.766 tons of oil
were shipped westbound through the
Sault Ste. Marie canals, while for the
same quarter this year 1881 1886 tons
were shipped, an increase of IS per
cent. This means a movement by
water in three months of about 5.919
carloads. the increase in that period
this year over last amounting to 2,493
carloads.
Cut Shipments by Rail
The instances cited are only few
of many which have been reported to
our committee. Our records show that
these efforts to eliminate entirely or
greatly reduce shipments by rail
through the use of water tnansporta-
ton are not. confined to a few c.
panies or to the comparatively
companies. They are not confined -
the Atlantic seaboard or the Gulf
Coast, but have been extended to many
interior points, where bulk stations
can be reached by rivers, lakes and
canals.
while exact figures cannot be given.
there can be no doubt that the rail
tonnage which has been thus displaced
is very great. Furthermore. this de
velopment has by no means reached
its maximum. Our records show that
some companies are rapidly extending
their provision for barge construction,
and that others have made plans to
use barge sportation. as the cost
Of such construction is modified, unless
IN the mean time the costs of rail
transportation are substantially re-
ducedn