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Such vessels are thus usually confined to routes where such freight is offered.

A great part of the country's traffic is through freight. Our waterways are now divided by differences in channels, etc., and by diversity in floating equipment. The rail system of the country is standardized, physically unified, and its control is largely centralized. It is well adapted to handle such through freight. A share, at least, of this through freight is essential for the success of either system. There has been bitter competition between rail and river lines. But the inland water system, divided and disorganized by the conditions described, is greatly handicapped, especially as to through traffic.

Under a general plan, our inland waterways can be made much more of a commercial unit. They must be placed in such a position that they can secure, even against rail competition, a far greater proportion than now of the country's traffic. River and canal traffic is now insignificant as compared with rail traffic.

We must, of course, recognize that no reasonable expenditure will wholly remove these difficulties. For instance, it is probable that transshipment from rail to water, or from one water carrier to another, will continue to be necessary on most long inland or partly inland hauls. Transshipment means terminals. Part III of this report, now in preparation, will take up the question of terminals in detail. It has had far too little attention in the past. It is sufficient to say now that terminal improvement is greatly needed and is entirely possible.

Since 1870 a general policy of Federal waterway improvement has been followed. The total Federal appropriations for inland river improvements up to 1907 have been over $250,000,000. There has been very little cooperation between the central and local authorities. This has resulted in inevitable lack of uniformity and of comprehensive plan, and in the lack of any proportionate contribution from the localities peculiarly benefited. European countries have in many cases distributed the costs of waterway improvements upon localities in some ratio with the special benefits received. Such cooperation is worthy of careful consideration in any comprehensive plan of waterway improvement.

The report sets forth certain general facts as to floating equipment, company organization, finance, legal conditions, etc. The total gross tonnage of documented vessels in the domestic trade in 1896 was 3,858,927 tons; in 1906, 5,735,483 tons, a gain of 48 per cent. American vessels in the foreign trade, whose tonnage reached its maximum in 1860, declined until 1898. Between 1896 and 1906 there was an increase of only 11 per cent in this latter tonnage. Steam has largely superseded sail power, and its proportionate tonnage is steadily

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increasing. The Atlantic and Gulf coasts are the most important districts, with nearly half the total documented tonnage. The Great Lakes have more than one-third of that total tonnage, and almost half the total documented steam tonnage. On the coasts and the Great Lakes there has been a marked increase in the size of vessels, bringing about there a reduction in transportation costs.

Corporations control the great proportion of the steam tonnage, particularly the larger vessels. In 1906 the average size of vessels owned by individuals was 113 tons; by firms, 223; and by corporations, 526. There was also a proportionate increase of corporate ownership of barge lines, and even of sailing vessels, though not so marked as with steamers. There has been a recent tendency toward consolidation of many lines under single corporations. The control of steamer and barge lines will be discussed in a later part.

The returns to the Bureau as to earnings and expenses were highly unsatisfactory. Only a few rough conclusions can be drawn therefrom. Operating expenses averaged, for the companies making returns, about 80 per cent of the gross earnings, the lowest ratio of operating costs being that of the bulk-cargo vessels of the Great Lakes. The highest ratio is that of the packet lines on the Mississippi system and southern rivers.

Marine insurance rates on river traffic reflect in a striking way the differences in waterway improvement, navigability, and dangers. The cost of cargo insurance is often a determining factor as between rail and water shipments, especially on rivers.

Very respectfully,

HERBERT KNOX SMITH,

Commissioner of Corporations.

The PRESIDENT.

REPORT OF COMMISSIONER OF CORPORATIONS ON TRANSPORTATION BY WATER IN UNITED STATES.

Part I. GENERAL CONDITIONS OF TRANSPORTATION BY WATER.

SUMMARY.

This first part of the report on Transportation by Water in the United States deals with the general conditions of such transportation, involving the following topics:

(1) The natural and artificial coastwise and inland waterways, and the character and results of the more important improvements thereof.

(2) Vessel equipment-types, number and tonnage.

(3) Vessel ownership, business organization, and finances of navigation lines and companies, in regular lines, bulk carriers, and towing

concerns.

(4) Contracts for the carriage of goods, shipping documents, the liability of carriers, and statutes relating thereto.

(5) Marine insurance and its general influence on water transportation.

(6) Taxation of vessels and of navigation companies.

The present Part I is of a somewhat preliminary nature. It sets forth mainly conditions familiar to those in the business, though not hitherto presented to the public in complete form. Such a survey of conditions is necessary as a preparation for the discussion of the specific branches of the subject in subsequent parts of this report.

This report deals only with domestic traffic, except so far as foreign traffic is incidentally involved in such discussion. The domestic water-borne traffic carried by vessels of the United States is far larger than the foreign trade so carried, and of much greater importance. Coastwise traffic is by law restricted to American vessels. Most of the foreign trade is carried in foreign vessels. Domestic coastwise commerce, however, uses the same ports as does the foreign commerce, and the early policy of the Government in improving these ports, with especial view to foreign trade, gave also especial advantage to coastwise trade. In physical characteristics also the coastwise business is of the same class as foreign business, while the two differ largely from inland water traffic.

1

WATERWAYS AND THEIR IMPROVEMENT.

The possibilities of transportation by water in the United States may be roughly indicated by a brief survey of the extent of its waterways.

COAST LINE.

The Atlantic coast line of the United States is more than 2,000 miles in length, and it is extended for a little over 1,850 miles more by the Gulf of Mexico. The Pacific coast line is more than 1,800 miles long. The coast line of continental United States aggregates 5,705 miles. This is increased to a meandered length of 64,604 miles by including the numerous indentations, many of which provide important bay, sound, and inlet routes. Chief of these are the Gulf of Maine (so-called), Long Island Sound, Delaware Bay, and Chesapeake Bay, on the Atlantic coast, and Puget Sound, on the Pacific coast.

GREAT LAKES.

Next in significance are the Great Lakes, the most important group of inland waterways in the world. Their shore line in United States territory is 2,760 geographical miles. In the meandered length there is 4,329 miles. They are connected by a series of natural and artificial channels. Canals also connect the Lakes with the Atlantic Ocean and the Mississippi and Ohio rivers, but these are not of dimensions to permit of through navigation by large vessels. Another series of canals, constructed by the Canadian government along the St. Lawrence River, give 14 feet draft to Montreal, and are used to some extent by American vessels.

On the coasts the Government has deepened harbors and connecting channels. Similar works on the Great Lakes give a depth of 20 feet on the main channels at mean water level.

COAST AND LAKE ROUTES.

The coastwise trade routes radiate mainly from a few central ports, such as Boston, New York, Philadelphia, and Baltimore, on the Atlantic coast, and San Francisco, Portland, and Seattle, on the Pacific. On the Lakes, notwithstanding the large number of routes, the great movement of traffic follows a few well-defined main lines. Most important is the route from Lake Superior ports across Lake Huron to Lake Erie ports. Another main route, formerly the most important, is that from Lake Michigan ports to ports on Lake Erie.

RIVERS.

The number of navigable streams used to a considerable extent for commercial purposes in the United States is about 295, with an approximate mileage of 26,400.

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• No classification of this sort can, of course, be absolutely accurate. Sections of a river that might be rendered navigable are not included, nor streams practically abandoned for navigation purposes. There are also many small streams navigable for very light vessels in local commerce which have not been included.

Chief of these are:

NAMES, NAVIGABLE LENGTHS, AND DEPTHS OF PRINCIPAL RIVERS OF THE UNITED STATES.

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20 feet to Wilmington, 8 feet to Kings Bluff, and 2 feet to Fayetteville.

d 21 feet to Savannah.

f 20 feet to Vancouver, Wash.; 8 feet to The Dalles.

e 20 feet to Jacksonville; 5 feet to Sanford. 920 feet to Portland, Oreg.

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