Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-10-19
F RE|GHT RATES
To MIDDLE WEST
ARE EXPLAINED
M. [. Fox, Managing Direc-
tor of Chamber of Com
merce, Blames Panama
Canal for High Charges.


Canal for High Charges.
Why freight rates into the mid
die west and the west are high
in proportion to the rates for
complete transcontinental ship
ment was explained to Kiwanians
Yesterday noon by M. l.. Fox,
chamber of commerce. Mr.. Fox
placed the greater part of the
blame for the high rates upon
the Panama canal, which fur
nishes a short waterway from
coast to coast and with which the
railways must compete.
THE people of Albuquerque
are interested in high freight
rates, and have a right to be-"
Mr.. Fox declared. mot only are
rates high, but some times the
rates are made an excuse for abb
normal profits by the middle man.
The story is told of a man who
went into a store to buy needle.
He protested when the merchant
quoted ten cents as the price.
Dul. man, ICplltu llie lliOl
chant, think of the freight have
to pay
Freight rates are high not
only in New Mexico. but through
out the whole of the interior
country between the two oceans.
Generally speaking, the railroads
are not to blame.
Let us grasp one fact firmly:
That is, that IL we are to have
rail transportation the roads must
be allowed to charge enough to
pay operating expenses, interest
on legitimate bonds and reason
able dividends to the stockhold-
ers.
"Tho alternative is government
nership of the railroads. Re-
Jrt to government ownership as
a solution of our transportation
problem would be, I greatly fear.
jumping from the frying pan into
the fire.
Il personally believe the rem
cdy lies in control by the inter-
Estate commerce commission Of
Acoastwise shipping rates, including
Panama canal tolls, just as the
rail tariffs are now controlled by
the commission.
"The original ship service be-
tween Atlantic and Pacific ports
was direct sailing by way of Cape /
Horn or through the Straits of |
Magellan, a distance in each case |
OF approximately $4,000 miles. A |
railroad was built across the 18TH |
81 Do IN, ,ia1,
reduced ship transportation to
about 5000 miles, only involving
unloading from ship and then
loading on cars, and after a rail
haul of fifty miles, then unload
ing from cars and again loading
.on ship. In 1907 another rail
Zine was built, this time across
the Isthmus of Tehuntepec. 1t
shortened the water haul a little
and correspondingly heightened
the rail haul. 1t, of course, in
Nolyed the same break bulk prob
lens that were encountered in
shipping across Panama.
ION account of the time required
in sailings by way of Cape Horn
or through the Straits of Magellan,
railroads could carry freight across
the continent about as cheaply as
it could be carried $4,000 miles
by water. Let me say here that
freight by water is from one-fifth
to one-third of the cost by rail.
THE Panama and Tehauntepec
routes, because or the shorter sail
ing distance, reduced the cost Of
ocean TO ocean freights below
coast to coast freight rates, despite
the fact of unloading from steam
or, loading onto train, unloading
from train and again loading on
steamer.
Canal Opened.
when the Panama canal was
opened in 1914, it made a direct
sailing distance from New York to
san Francisco of approximately
j, 900 miles, and avoided all trans
fers en- route. The payment of
$l.25 a gross ton on shipping !,
through the canal still left the
water route much cheaper than the
all-rail route. Also while ships do ..
not sail as fast as trains run, the !,
water travel between the oceans is !,
almost continuous, therefore the /,
litlt 10 inc suiilt tattbL III lilt lhNN- |
est OF rail freights, and much
faster than most of the freight car :
ried even in carload lots.
THE railroads had permission of
The Interstate Commerce commits ,
sion to carry freight in competi- !
ton with the canal up to 1918. I
They carried much OF their trans !
continental freight below cost, (
making up the loss by shipping /
back to the interior at rate suf-
ficiently high to make up the def u
cit and add profit. S
For example, goods were car (
led from New York, we will say, v
o Los Angeles and shipped back G
rs far as Gallup for the same a
freight charges that Albuquerque v
paid.
"such discrimination were good il
|