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MARINE REVIEW. ee = Future of the Lake Grain Trade. [Continued from last issue.] The movement of flour and grain from the regions west of the Mississippi presents an entirely different problem. In this territory the railroads leading to the gulf wil] undoubtedly carry a great deal of grain to the gulf ports that formerly went to the Atlantic ports over the rail-and-lake route and the all-rail lines. Roughly speaking, the grain grown in the territory north of the east-and-west line pass- ing through the southern boundary of Iowa will continue to go over the eastern rail and water lines. And probably the grain produced in northwestern Missouri will continue to move over the old routes. On the other hand, the grain grown in Missouri south of the Missouri river and in the southern half of Kansas and in all the region lying south of these two states, is equally sure to go, if intended for export, by the south-bound lines to the gulf. Between these two regions lies a district of debatable territory formed of the northern half of Kansas, the southern part of Nebraska, the extreme southwestern part of Iowa, and of northwestern Missouri. This region includes much of the best agricultural land of the country west of the Mississippi river. It may therefore be expected that the eastern lines will not re- linquish the traffic of this territory without a struggle. As the rail- roads leading to the gulf have erected or are erecting terminal facili- ties for the handling of grain on a large scale, particularly at their southern termini, they may be expected to wage a spirited contest for the traffic of the disputed territory, and as a consequence grain rates to the Atlantic seaboard and to the gulf will probably fall in the near future. The most southern of the east-and-west trunk lines belonging to the Central Traffic Association have been forced by the association to maintain rates, and asa result they have seen much of the traffic which they at one time handled go to the gulf by the river-and-rail lines. The southern lines of the Central Traffic Association did not regard this traffic as valuable enough to warrant them in breaking loose from the association, and the association preferred to lose some traffic to the gulf lines rather than reduce rates on all east-bound traffic to such a point as would prevent grain from the southern limits of their territory from finding an outlet through the gulf ports. A1- though the Central Traffic Association viewed with equanimity the diversion of a portion of its traffic to the gulf ports it does not follow that the association will much longer permit the diversion to the gulf ports of the traffic originating in the territory which has supplied the railroads forming the association with much of their east-bound freight. Up to the present time the rail-and-water lines and the all-rail lines to the Atlantic seaboard have regarded themselves as the natural heirs to the whole of the traffic originating in or destined for the entire West. To the lake carriers and the managers of the east-and-west trunk. lines the westward course of empire has always presented itself as new traffic for them. For many years there has been an increasing ten- dency for commerce to move on east-and-west lines. The opening of the Erie Canal in 1825 gave the first decisive impulse to commerce to move across the country instead of down the Ohio and Mississippi rivers. In later years the construction of the Great trunk lines, parallel to the northern water route formed by the great Lakes and Erie Canal, strengthened a movement which had already become firmly estab- lished. On the Atlantic seaboard New York and Philadelphia have come to be looked upon as the natural outlets and inlets for the com- merce of the whole country; and, in a like manner, Chicago, by reason of its favored position on the lakes and its excellent railroad facilities, has come to be viewed as the natural distributing and re- ceiving point for the entire west. This idea, that Chicago was to be the gateway through which the- commerce to and from the west would move, received a severe shock Some years ago. As the farmer has pushed westward and still farther westward it has become easier and easier to make a flank attack upon the old lines of commerce. This has been rendered doubly easy where the new regions settled have been either north or south of the great east or west line of movement. It has already been shown how with the westward and northward migration of the wheat fields the wheat and flour traffic avoided Chicago and sought the more northern routes. Most of this business still goes through our chief Atlantic ports, but with the rapid enlargement and improvement of Canadian transporta- tion facilities now in progress it will be surprising if Canadian ports, notably Montreal, do not secure a larger portion of the export grain business, Let us now return to the movement of flour and grain through the gulf ports. The old east-and-west routes have recently been brought face to face with a new and serious situation in the central west and southwest. The lines extending northward from the gulf are not disposed to allow the east-and-west lines to control this great traffic of the trans-Mississippi region. The gulf roads hold that the central west and southwest should export their surplus products through the gulf ports and receive imports through the same cities. This prop- osition is nothing short of revolutionary--it means a breaking away from the old channels of shipment through Chicago and New York and other eastern cities; further, it means that the northern water route and the eastern trunk lines are no longer to be the dominant power in moving the products of western farms. During the past year the railroads running to the gulf have been increased in number by the construction of the short line--the Kansas City, Pittsburg and Gulf Railroad. This line, which was designed to make Kansas City independent of the eastern routes, extends from Kansas City almost due south to Port Arthur (Texas) at the head of Sabine Lake, an arm of the gulf. In the contest with the east-and-west lines this route will be found in the van. The distance to tide water from Kansas City is much less by the Port Arthur route than by the eastern rail routes, and therefore very much less than by the way of the Great Lakes. But too much must not be expected from this route simply on the 'ground of its being much shorter than the eastern lines to tide water. It need hardly be said that cost of service does not vary as the dis- tance, and that rates are not fixed on a mileage basis. Easy grades, straight tracks, a large traffic in both directions, and cheap fuel are fully as important as the question of distance. So far as the first two items are concerned the Port Arthur route will compare very favorably with any of the eastern trunk lines; it can also secure fuel as cheaply as most of them. In respect to the remaining point, how- ever, the eastern trunk lines have the advantage. Not only will the traffic over the new line be much less; at least for some time, than over the eastern trunk lines, but it will also be very largely in one direction unless this particular road is more successful in securing northbound traffic than the other gulf roads. If no freight can be found for the cars going north, the traffic going south must pay the cost, not only of its own movement, but that of hauling back the empty cars as well. It must be admitted that the outlook for this road securing a double haul is better than that of most, if not all, of the other railroads running north from the gulf. The Port Arthur route passes through some of the best timber land on the continent, and it may, therefore confidently expecta large north-bound traffic -- in ties and lumber. As it passes through two large coal fields it may . also hope to move large quantities of coal. Aside from these main items the managers of this line expect to haul a portion of the imports consumed in the territory tributary to their railroad and also hope to develop a considerable traffic in early fruits and vegetables. But even supposing that the Port Arthur route can haul grain from Kansas City to the gulf for less than the east and-west roads can carry it to the Atlantic seaboard, can this line develop a large export business? Are there not adverse circumstances which will fully coun- terbalance the advantage of a low rate to the gulf? Will not higher ocean rates from the gulf ports and the unfavorable climate of the gulf region prevent the growth of a southern export movement? In answer to the first of these questions it may be said that ocean rates are less unfavorable from the gulf ports now than they were formerly, and that as the amount of freight which is being offered to vessels is increasing, there will be more steamship lines to southern ports and - rates will be still further lowered. At this late day it is hardly neces- sary to answer the second question. The large amount of capital which has recently been invested in southern terminals for handling grain, by persons familiar with the climate, and the immense move- ment of grain through gulf ports during the year 1896 ought to be sufficient proof that the gulf climate does not rise as an obstacle to prevent the development of an export trade through the gulf ports. Luce's "Seamanship" is a book that is specially suited to assist young offieers of the nayal reserve. It is being used by naval reserve organizations all over the country. It is a standard work, selling at $10, and will be mailed to any address at that figure by the Marine Review, 409 Perry-Payne building, Cleveland. Now that the Lake Ontario grain movement will be increasing, masters will want Lake Ontario general chart No. 61 and coast chart No. 1, as well as St. Lawrence river charts Nos. 4, 5 and 6. The five will be sent by the Review to any address by express for $2.