. ST. Wilmington, N. C. Chamber of Commerce T Supplemental Brief €&e Lifirarp Of tl)t SJnitiergitp of JSortt) Carolina Collection of |2ortJ Catolintana diiss book toag ptegenteft bp J^eph ttuAo-i^ Soc^a-V- Vv- C-O VN^tf VV^ » Cf> 9 T l • (b S' • vj l4c\T I $ k SUPPLEMENTAL BRIEF PREPARED BY THE WILMINGTON, N. C., CHAMBER OF COMMERCE AND FILED WITH THE STATE SHIP AND WATER TRANSPORTATION COMMISSION WILMINGTON PRINTING CO., WILMINGTON. N. C. Digitized by the Internet Archive in 2019 with funding from University of North Carolina at Chapel Hill https://archive.org/details/supplementalbrieOOwilm INTRODUCTION In general terms, the last Legislature creating the State Ship and Water Transportation Commission authorized it to find some means to use more fully the navigable rivers, sounds and other bodies of water within the boundaries of the State. This necessarily involved a number of different subjects all germane to the main object in view, such as existing freight rates and the complex method of arriving at same, the zoning system, gateway cities and the reasons therefor, port conditions, termi¬ nals and many other kindred matters all having a bearing on the main purpose which is to further promote the public welfare, to provide cheaper transportation to the markets within and without the State and the products of the farms, the forests, mines and factories of the State and to effect cheaper transportation for commodities purchased by the people of the State, both within and without the State. On April 13th the Commission held a meeting at Wilmington, the Chairman stating that the Commission sought information from all ports of the State in regard to terminals and water transportation, explaining that no opinion had been formed by the Commission and none would be formed until a complete survey of the situation had been made. At this meeting James H. Cowan, Mayor of the city and former Secretary of the Chamber of Commerce and Industrial Agent, showed what other states had done towards the establishment of state ports and clearly demon¬ strated in all instances that where this had been done the state as a whole realized untold prosperity, giving statistics to prove his point. He then showed that, by act of Congress, the Government did not intend to appro¬ priate any huge sum of money to aid port development where the ports are not municipally or state owned or controlled but that it was ready to lend aid to those ports that established state terminals and gave evidence that it was awake and ready to protect the people of the state against discriminative freight rates. He then pointed out the rate advantage in water borne commerce and that the waterways of the State should be used for the benefit of the State. Major Oscar 0. Kuentz, U. S. District Engineer discussed state and federal relation in Port matters. Mr. J. A. Taylor, a wholesale grocer and an authority on rates reviewed the rate question and the problems relating to freight rates and the technical basis for rate making, revealing numerous interesting and valuable facts to the Commission, and tending to show the vital importance of coordinat¬ ing rail and water facilities. His argument developed many inequalities, discriminations and injustices. Mr. Taylor applied his explanation of the subject to the undertaking to bring about a solution of North Carolina’s rate problem by betterment of the Port of Wilmington by securing co- 1 operation between carriers, referring to the Interstate Commerce Com¬ mission as the Court of last resort to compel such co-operation and lastly stressed the discrimination against the Port of Wilmington by means of differentials in favor of Norfolk. Mr. C. C. Chadbourn argued that Wil¬ mington was the strategic location for a state port, outlining the port equipment and commercial activities as they are related to the whole State interests, laying especial emphasis on the modern facilities now existing for the handling of cotton and fertilizers, further stating that the State recognized in Wilmington the one Port capable of being made a deep water port for the best service of the State. Wilmington then submitted a brief setting forth all of the above as well as other arguments pertinent to the subject. Subsequently Southport presented a very comprehensive and elucidating brief covering the matter in all its phases. The Commission has visited every port in the State. In view of the exhaustive investigation made by the Commission covering a period of many months and using information derived from every possible source, we are going to assume that the presentation of further facts, statistics and arguments relative to the benefit to accrue to the State from unlimited use of a State Port would be entirely un¬ necessary. We feel that there is nothing further to be said on the subject. You have probably by this time a very clear idea, unexpressed perhaps even to each other, as to just what recommendation you will make. Since there seems to have been no strong presentation of the claims for recognition of any other ports than Southport and Wilmington, we think it is reasonable to assume that, if you recommend the State Port in principle you will recommend as a location for it some point in the Cape Fear tidal basin. In order, therefore, to save time and avoid useless argument, we will confine ourselves in this supplemental brief, entirely to Southport and Wilmington and it will be an effort to set forth such facts and arguments as to prove to you conclusively that, of the two places, Wil¬ mington is the one best adapted to development which would win the desired relief. * ADVANTAGE OF INLAND PORT We will take up first, and very briefly because it needs little elabora¬ tion, one of the strongest reasons upon which we base our claims. Wilmington is thirty miles from the Ocean. Since it is axiomatic that water transportation is much cheaper than rail transportation, freight consigned to interior points has already received the benefit of a thirty mile longer haul by water. More than this, the rate of freight from foreign or coastwise points to Wilmington is just the same as to Southport, so that the thirty mile rail haul must be added in toto and the freight rate, in tons, by rail from Southport to Wilmington is $3.10 for sixth class; $4.00 for 5th class; $4.30 for 4th class; $4.50 for 3rd class; 2 $5.00 for 2nd class; $5.70 for first class. It has been mentioned as an offset to this that a vessel has to pay pilotage up the river. Let us see about this. The pilotage on a vessel drawing 20 feet of water is $125.28 up the river. Such a vessel would carry a cargo of about 7,000 tons or about 1cents per ton. As the size of the vessel increases the cost per ton would decrease. We have used this size of vessel because there are more of approximately this size than any other size. The cost of docking this vessel would be $65.00 but this would not be taken into con¬ sideration because the cost of docking at Southport would be as much or more as the wind is usually higher and the water rougher at Southport than in Wilmington. Owing to the strong tides at Southport, both flood and ebb, ships could only be handled at slack water if the terminals were slips which ot necessity would have to be to afford trackage to warehouses. The tide at Southport frequently runs as much as 5 knots both ebb and flood, jwhile at Wilmington only one and a half or two, so that at Wilmington | it is practicable to dock or undock, in and out of slips, at any stage of the tide. The members of the Commission may remember the difficulty of the Yamacraw in landing at Southport when the April meeting was held. Quite a little difference between 1% cents and $5.70. However, this is not exactly a fair way of stating the case. It is true but extreme. The fair way to get an accurate estimate of the difference is to take the average cost of handling one ton of freight one mile and multiply this by thirty. As an evidence of the value of a port being as far inland as pos¬ sible, most of the large ports of the world including this country are inland. The principal ports of this country—-Boston 13 miles; New York 17*4 miles; Savannah 28 miles; Jacksonville 28 miles; Norfolk 30 miles; Wilmington 30 miles; Charleston 7% miles; Philadelphia 63 miles; Galveston 6 miles; New Orleans 114 miles; Baltimore 180 miles; Mobile 0 miles; San Francisco located in a bay; Los Angeles 19 miles; Portland 0 miles; Seattle 50 miles. If it were possible to have this proposed port at Fayetteville we would say it would be of more value to the State than at Wilmington because it would have increased water haul and de¬ creased the rail haul. If freight could be delivered to its ultimate des¬ tination by water it would, of course, be cheaper than by rail. It nat- : urally follows that the more we can use water courses the less freight we will have to pay. RADIATION OF TRANSPORTATION ARTERIES ) Another most important factor is the almost perfect radiation of es- 3 tablished arteries for distribution of freight. While we have only two r, systems, we have six separate and distinct railroads leading out of Wil- jtmington, with ample yard room and track for storage of cars, switching, i 3 etc. The Wilmington, Newbern and Norfolk covers the extreme East¬ ern part of the State. The Atlantic Coast Line runs almost due North from Wilmington going through a fine trucking and tobacco section and connecting with the Southern Railroad at Goldsboro to the West and Norfolk and Southern to the East. The Atlantic and Yadkin runs north¬ west to Sanford making physical connection at Fayetteville with the main line of the A. C. L. North and South with a branch line into South Caro¬ lina and with the Norfolk and Southern into Raleigh, and with the Southern at Sanford and coal fields, so that, with any considerable de¬ velopment of the coal fields, Wilmington would be the most available and cheapest port through which to export this coal; connecting with the A. C. L. at Pembroke; a branch line of the A. C. L. at Maxton and the main line of the Seaboard Air Line at Hamlet. The Atlantic Coast Line, over the old W. C. and A., runs through the strawberry belt into South Carolina connecting at Chadbourn with the A. C. L. from Conway and Elrod and the W. B. & S. connects the city of Wilmington with Southport. Of course the Commission is perfectly aware of these conditions and we only mention them now that they may get into the record as a very powerful argument for the recommendation of the City of Wilmington as the State Port. Wilmington is the terminus of several State High¬ ways over which freight will be distributed in ever increasing volumes. The policy of the State of North Carolina with regard to hard roads has resulted in a remarkable increase in the amount of freight thus trans¬ ported and from reasons of convenience and dispatch this volume will continue to increase so that the roads already built and in use is a real factor in the situation. The Northeast, the Cape Fear and the Black rivers are also navigable for many miles above Wilmington and have always been freely used for the transportation of freight not only for economy but because they reach many points not otherwise accessible. It is estimated by men who have had experience that on truck hauls up to 80 or 90 miles the truck is as economical as the railroad and is less damaging to freight because this system of transportation, by the use of pneumatic tires, is smoother and much more convenient because it de¬ livers freight when and where wanted. Truck transportation has here¬ tofore and will continue to be of inestimable value whenever there may happen to be congestion on the railroads or in the event of a strike. Small country towns would soon exhaust their small supply of provisions were delivery to be cut off and the use of our hard roads and trucks would always serve to obviate this danger, so that an elaborate system of highways is of distinctive value. On account of its location and on ac¬ count of the State law Southport can have but one highway. POWER AND TRACTION It might be worth while mentioning the Tide Water Power Company which in addition to its city tracks and an elaborate electric power, runs 0 , P. L r i x S f) V S' /'*ar-VA ' /) Vv* , /y\ju CK 6 JO ci line ten miles to WTightsville Beach. Wilmington also has a dummy line and a belt railroad by means of which every dock and every indus¬ trial plant in and around the city can be reached. Electric power will be essential to a modern terminal for use in op¬ erating trucks, unloading derricks and powerful lights for use in night un¬ loading. The Tide Water Power Company has recently made arrange¬ ments for connection with the Carolina Light and Power Company so that in event of any derangement of its own system, neither power nor lights would be off. PROTECTED HARBOR It is worthy to note that all great ports, as has been mentioned, are inland. There is another reason for this besides the economical dis¬ tribution of freight and that is to afford a harbor protection from the fury of storms. About thirty years ago a tidal wave swept away every thing movable on the water front at Southport. Also the light house on Fort Caswell Beach. As a matter of record, which we shall prove by a competent and credible witness, everything along the water front at Southport has either been destroyed or very seriously damaged and all craft in the harbor driven or sunk in every hurricane in the past fifty years. Should a hurricane strike Southport, shipping would suffer as severe¬ ly as at Charleston in the gale of 1893 provided there were as many ves¬ sels in Port. As a result of that gale the tendency in Charleston ever jsince has been to locate docks and terminals further up stream. South- port, as a study of the situation shows, is absolutely exposed to gales from the East and Southeast and Southwest. It is from the Southeast that the most destructive hurricanes come. • The disadvantage of an exposed port is apparent even when there is no hurricane. With a full Spring tide it is often necessary to steer a loaded ship while at anchor to keep the ship from going aground. Many ships have gone aground from taking a very rank sheer caused by the strong tides and winds. It is well known that the wind invariably blows harder at the coast than inland. The tide also runs faster so that as a matter of fact there are several hours of both flood and ebb tide when a vessel could not dock at Southport at which place there is a stronger tide than any port in the South. • * / * IlS. C -i r"' ^ WAR In setting forth the advantages of an inland location it is necessary lo remember that every country, without exception, is liable to be drawn into war at any time. In the recent war plans had been made to attack f 3ur coast cities and these plans would have been consummated but for ; the abrupt closing of the war. In future wars we may not be so fortu- 5 nate. Would it be wise to hazard so much property as would be repre¬ sented by large terminals and their contents in a place so close to the ocean and consequently so susceptible to attack as Southport? EFFECT OF SALT WATER ON METAL The damaging effect of salt water on metal is so well known as not to require any comment. Nails, hardware and all other items requiring metal must be of galvanized iron, brass or copper, or they will soon dis¬ integrate entirely. The initial cost and maintenance cost of using these metals is a serious addition to cost. - ). ?(* t ri rn t Jk I LX AXi v t *y SA? G / ■ /, THE TEREDO T 8 tr C?ort$* 0 , The Teredo, a salt water worm, has a most destructive effect on wood as we will prove by the accompanying photograph and by letter and other evidence. The General Manager of the Tide Water Power Com¬ pany which maintains three trestles in salt water says—“Regarding your inquiry as to the effect of the Teredo on untreated piling in the Banks Channel between Wrightsville Beach and Harbor Island, would say that before any treatment was used in connection with these piling it was necessary to drive them every two years. By reason of a special preparation which we now use in treating the surface of these piling, we are able to obtain three years’ effective service. “On our power house wharf in the Cape Fear river we obtain from fifteen to twenty years’ effective use from the same grade of piling.” As has been proven by experience a wooden piling in fresh water will last indefinitely wet; when alternately wet and dry decomposition sets in and it is common in fresh water ports to cut the exposed part of a piling off and use the balance, the part in the ground and under water, time and time again. MARINE PILING The average life of a piling in salt water, if cut in the fall is three years, if cut in the spring it will not last over one year. Mr. Irving T. Bush, President of the Bush Terminals Co., says “A location where you are free from insect trouble is preferable.” The National Research Council, Committee on Marine Piling, has made and is still making an exhaustive study of the effect of marine borers on wooden piling the result of which has been to recognize the destructiveness of salt water pests, but so far has failed to find any practical protection from them. We show for your close inspection, photographs of pieces of lumber attacked by the Teredo and the result of 60 days of his work. We also show you shells that have been attacked by some kind of marine borer. The action of the marine borer on con¬ crete is not so well known although the service bureau of the American 6 Wood Preservers Association says: “The discovery in Los Angeles har- boi of borers attacking and destroying concrete would seem to dispel at least partially the theory universally applied of concrete for permanence. In addition to other troubles that visit concrete in salt water structures comes this visitation of the destructive mollusk. Those engaged in the protection of timber piling against borers will find it in their hearts to sympathize with the disappointment of such as fondly hoped that once they built concrete all future troubles would be eliminated. The recent report of the San Francisco Bay Marine Piling Committee presented at the 1923 convention of the American Wood Preservers Association con¬ tains a detailed description of the activity of this additional enemy of wharf structures from which we make a few statements. “In the work of widening the channel in Los Angeles harbor, Novem¬ ber, 1922, it became necessary to remove some old wooden piling which had been jacketed some years previously with concrete. In looking over these piling it was observed that some of the jackets had been attacked by borers. Of 18 jackets examined, 16 were found to be more or less at¬ tacked; about five were considered to be badly attacked. At another location of 12 pile jackets examined, three were rather badly attacked by borers. As regards the extent of damage occasioned by borers in concrete or concrete jacketed piles at four different locations in Los Angeles har¬ bor where such piles exist, about 50% have been more or less attacked, of which rather more than one-fifth have been very considerably bored. Of those not attacked a number stood so well inshore as to be but little ex¬ posed to the action of the borers. If all such piles were eliminated from the count, the percentage of jackets damaged would be considerably higher.” The findings set forth above are, to say the least, disturbing and indicative of serious possibilities. It is entirely to be expected that when rock borers have penetrated the concrete jacket about wooden piles, wood borers will be able to gain entrance through the pholad holes and attack the pile itself. There is also a more serious possibility in the case of reinforced concrete piles. A single borer penetrating such a pile would let water into the reinforcing metal, which would effect corrosion and swelling of the latter, causing the pile to crack and speedily disintegrate. It appears at any rate that the use of concrete for marine construction is not so immediate and certain a solution of the marine borer problem as has been sometimes assumed the case. We want to be perfectly fair about this as about all matters and it is only proper to say that this difficulty does not seem to be insurmountable. The pholad has not as yet appeared on the Atlantic Coast. It is thought that by making the aggregate dense enough that sufficient protection will be afforded, but a large Concrete Pile Company says this: “Concrete has justly been criticized as a material to be used in sea water for the reason that there have been a number of serious failures. These failures, however, have all been attributed to very bad engineering in both the selection of ma- 7 X 7 fi . . ^ (V fjS . i#*. . // . M 4 A *- —' . U / Jr . try terials and in the execution of the work.” Which means that although it is practical to use concrete piling in salt water, great care must be exer¬ cised. No such apprehension need be felt in fresh water. EFFECT OF SALT WATER ON VESSELS The above is applicable to any structure that may be erected in salt water but the effect on vessels is equally as important. Almost the first question the Master of a vessel, if a stranger, will ask the pilot is whether the water is fresh or salt, and the reason for this is barnacles and sea¬ weed in large quantities attach to a vessel, either wood or steel after it has been a long time in salt water. This is harmful to a vessel and se¬ riously retards its speed. This condition in sea language is called foul and clears itself only in fresh water. The Chief Engineer will also ask the same question because it is necessary to have fresh water to clean the boiler tubes. FRESH WATER FOR BOILERS A Chief Engineer says in regard to water as follows: “Subject to your request, in regard to the use of Cape Fear and Black river waters used for boiler purposes, beg to state that I have had approximately twelve years’ experience as Chief Engineer for three of the largest fertilizer plants in this section, and positively know that no better water could be found anywhere near this locality that could compare with the waters of the above rivers for the upkeep of boilers. I don’t know of any plant in this section that uses water directly out of the river, that are using boiler compounds for the purpose of protecting their boilers, the only process required is to blow them regularly, not more than twice in twenty- four hours. “My experience as to the above is from a practical standpoint only. Yours very truly, (signed) J. W. CURTIS, Chief Engineer, Swift & Co. Fertilizer Works.” 8 COST OF FRESH WATER TERMINALS IN PROTECTED LOCATIONS vs. COST OF SALT WATER TERMINALS IN UNPROTECTED LOCATIONS No. 1. Fresh water terminals in protected locations_ Engineers ordinarily design structures of this type to resist the application of common and well known FORCES such as dead loads, live loads and ORDINARY wind pressure; storm wave pressures and Geological forces and resultant changes; also nor¬ mal. It follows, naturally, that all elements involving design, la¬ bor, materials, construction and maintenance will in this case be NORMAL therefore all costs will be LESS than the costs entering into the design and construction of salt water terminals in unprotected locations under totally different conditions. No. 2. OTHER ELEMENTS—making for reduced costs of fresh water terminals are as follows: terminals of this type are generally so located that they can command all of the facilities of a modern city such as railroads, banks, commercial interests, ample labor, light and power, machine shops, lumber mills, supply houses, and all other agencies tending to expedite construction by the elim¬ ination of costly delays. No. 3. SALT WATER TERMINALS in unprotected locations— Engineers in designing terminals of this type are confronted with all of the known forces with all of the EXTRAORDINARY nat¬ ural forces added. These natural forces and elements may be covered by the general terms of HIGH WINDS, STORM WAVES, SALT WATER, GEOLOGICAL CHANGES. These extraordi¬ nary forces and elements make for increased costs in design, con¬ struction and upkeep. (a) HIGH WINDS: Structures to withstand high wind pressures should be seriously studied and designed with a factor of safety sufficient to safely resist the strongest gales ever recorded at or near the site of the proposed terminal; WIND BRACING makes for in¬ creased costs. (b) STORM WAVES: The piling and under-framing of piers and wharves to resist storm waves, and espe¬ cially waves of translation which affect harbor and shore structures should be of special design to guard against the maximum blow of any wave, or series of waves ever experienced at or near the site of the pro¬ posed terminal. Special wharf and pier construction makes for increased costs. 9 (c) SALT WATER: All structures in and around salt water require special or treated piling and timbers to resist marine insects and growths. All iron work should be galvanized or otherwise protected from cor¬ rosion. Special piling, treated timbers and metals make for increased costs. (d) GEOLOGICAL FORCES: The currents induced by wind and waves in the MOUTH OF RIVERS may be¬ come of very serious concern, in causing the scouring out of foundations for piers, sea walls or other struc¬ tures. Wherever this condition exists extra costs will be involved to guard against this action. (e) SITE: If no really suitable site exists for salt water terminals at present, it is quite likely that extensive dredging operations will have to be made, far more so than at any fresh water terminal at or near a large city. (f) SWIFT CURRENTS: If the greatest of pains is not taken in building slips so as the rapid currents and eddies will not fill them up, the dredging necessary to keep slips open will be excessive. (g) In connection with all of the EXTRAORDINARY forces as enumerated it would appear that any engi¬ neer who hasn’t investigated conditions and compiled data on each of the forces as they ACTUALLY exist will be confronted with a serious proposition of design. Marine Railways and Dry Docks are affected by the same forces acting on terminals. Where you find one you generally find both. Both seek fresh water—slow running currents and a protected location. Marine Railways and Dry Docks are generally in or near the shipping district of any port, and in the neighborhood of modern marine repair plants. Wilmington has three Marine Railways, the largest being a 1,000 ton capacity—Crandall. SUPERIOR BANKING FACILITIES In connection with banking facilities to which reference has been made, the Murchison National Bank, one of the largest institutions in the South, says: "The services which this bank must and can perform are those under the following divisions: 10 IMPORTS f We have facilities for— (1) Obtaining for the importer complete credit informa¬ tion regarding the foreign seller, no matter in what part of the world he might reside. This information can be obtained by cable or correspondence. (2) Financing the movement to this country of foreign commodities in any of the following customary ways i A. Through the issuance of dollar letters of credit. B. Through issuance of foreign currency letters of credit (such as Francs, Lires, Pounds, etc.) C. Through loans made direct to importer when payment outright in advance is necessary. NOTE—The two former methods are customary in that the purchaser of foreign goods is making such purchases on credit and is entirely protected throughout the transaction, payments being made only upon delivery in this country of shipments from abroad. (3) Financing storage at the port of importation or at the point of distribution. NOTE—There is usually considerable time elaps¬ ing between the arrival of commodities in this country and the actual distribution of such to the various purchasers on the interior. This bank fin¬ ances the storage of goods against warehouse re¬ ceipts and bill of lading drafts covering the various shipments. (4) Collecting expeditionary bill of lading drafts drawn on any point covering the above mentioned distribu¬ tions. Our collection department has access to every channel for collections in this country, we having cor¬ respondents in not only practically every town in North and South Carolina but in practically every large city in the United States, such as Boston, New York, Phila¬ delphia, Baltimore, Washington, Chicago, St. Louis, Pittsburgh, New Orleans, Jacksonville, Atlanta, etc. EXPORTS This bank has facilities for— 1. Obtaining detailed information relative to steamship sailings and for arranging cargo space. 11 2. Arranging terminal space at port. 3. Financing the storage of commodities for export while awaiting shipment. NOTE—We are prepared to discount bankers’ ac¬ ceptances drawn against port ladings or warehouse receipts, or to sell such bankers’ acceptances in other markets. This form of financing is neces¬ sary in case of delays at the port. 4. Financing shipments abroad. A. By discounting bills of exchange drawn by domestic shippers against foreign customer or foreign customer’s bank, usually sixty day paper. B. By discounting bankers’ acceptances drawn against this bank and secured by the above bills of exchange. C. By selling the above bills of exchange and bankers’ acceptances. NOTE—The Murchison National Bank has access to all markets for such paper whether clean or with documents attached. In gen¬ eral the bank has facilities for financing for¬ eign shipments in all of the customary meth¬ ods. MISCELLANEOUS This bank has facilities for— 1. Furnishing daily exchange rates. NOTE—This service is essential to steamship captains who, while in port, pay off their crews in American dollars on the basis of the exchange rate for their particular currency. For instance, an Italian boat in the port of Wilmington pays the crew and officers on the basis of Italian Lires but the payment is actually made in American dollars. 2. Furnishing foreign exchange drafts drawn on any city in the world. In a port city there are usually a num¬ ber of foreigners residing, or transient foreigners, due to various steamships in port, and the customary meth¬ od of sending funds to their homes abroad is by the purchase of foreign exchange drafts drawn on their local towns. We are prepared to furnish such drafts 12 on moment notice whether the draft be payable in Fiancs, Lires, Pounds, Drachmas or other money. 3. Remitting funds by cable or otherwise to any city in the world. We can, through our connections in all countries, effect transfer of funds within twenty-four hours, usually in less time. 4. Buying and selling foreign currency at current ex¬ change rates. NOTE—There are on all steamships while in port, foreigners who accumulate various kinds of currency and when in America they usually ex¬ change this currency for American dollars. This bank buys these currencies which immediately ef¬ fects the necessary exchange. On the other hand, when foreign steamships leave this port there are foreigners who have a surplus of American dol¬ lars and wish to convert them into currency of the next country at which the steamship will call. We are prepared to convert their dollars into the the desired currency without delay. 5. Remitting steamship freight collections abroad or to New York Agencies. NOTE—When steamships arrive in the port of Wilmington and discharge their cargo and freight charges are collected the Captains wish to remit these collections to the home office of the Steam¬ ship Company. The customary method is by re¬ mitting to New York by wire or to their foreign office by cable. This service is essential in that the steamship Captain can settle with his Com¬ pany immediately and relieve himself of the ne¬ cessity of accumulating surplus funds on board ship. 6. Obtaining funds for furnishing pay-rolls to steamers. NOTE—There are occasions when steamships call¬ ing at Wilmington for cargoes need funds with which to pay off the crew. One of the services of this bank is in obtaining funds by cable or tele¬ graph for the steamship Captain and subsequently making up his payroll in the desired denomina¬ tions. 13 If there is any further information which we can give you in con¬ nection with the services which this bank stands ready at all times to give, please give us the opportunity to furnish such. Very truly yours, (signed) I. B. GRAINGER, Assistant Cashier. FERTILIZER BUSINESS We asked Mr. J. G. McCormick of this city and general counsel of the Acme Manufacturing Company, a man thoroughly posted on freight rates and than whom no man in the city and few in the State is more familiar with the fertilizer business, for a statement on the fertilizer business as it is and as it might be potentially with the relief we are seeking and here is his answer: '‘ADVANTAGES OF WILMINGTON—As to importing fertilizer materials and as to their manufacture and distribution. “Wilmington is well located, from the standpoint of importers of fertilizer materials, as well as fertilizer manufacturers. If this were not true, the three largest importers of nitrate of soda would not advertise it as one of their ports and distributing centers. Wil¬ mington has twelve fertilizer plants, this includes two cotton oil mill and fertilizer plants combined. Even with present terminal fa¬ cilities Wilmington is today the third American city in fertilizer imports and manufacturing and beginning with 1914, it has shown the largest percentage of increase, both in imports and in distribu¬ tion of fertilizers and fertilizer materials of any American port. Nitrate of soda imported from Chile, potash from Germany, sulphate of ammonia from Scotland and other countries, blood and other ni¬ trogenous materials from the Argentine Republic and elsewhere, fish scrap from Beaufort, N. C., the lower Cape Fear, Chesapeake Bay, Long Island and also foreign countries, sulphur from Texas and Louisiana, phosphate rock from Florida are among the fertilizer ma¬ terials in large quantities, which annually seek the port of Wil¬ mington. “The fertilizer industry is not only a distinct asset to Wilming-1 ton but also to the entire state of North Carolina. Additional termi¬ nal facilities here would increase the incoming tonnage of such ma terials, and would decrease the cost of fertilizers to the consumer a* ( larger and more modern terminals would result in deeper water larger vessels, competitive stevedoring as well as competitive termi nal service and, eventually lowered terminal charges and also in creased efficiency in terminal service. 14 “Wilmington is the only North Carolina port available for the feitilizer industiy. There may be isolated development elsewhere, but not continuous and increasing—under practically all business conditions as at Wilmington. With improved agricultural conditions, the industiy heie will rapidly increase beyond its present propor¬ tions. The fact that it is already here, and came here when every other North Carolina city was open to it, is of itself almost proof positive that it is the only logical place for fertilizer imports and distribution. “Fertilizer plants in Greensboro, Raleigh, Selma, Wilson, Laur- inburg, Charlotte and other North and South Carolina points, bring practically all their imports through Wilmington, and if rail rates from Wilmington to many Southern Railway points were upon an equitable basis the area of distribution could easily be extended as far west as Waynesville. At one time, with more favorable freight rates, fertilizers were shipped in large quantities into Georgia and portions of Virginia. “If cargoes from all ports of the world could be assured a berth at Wilmington—which would be the result with additional and com¬ petitive terminal facilities—interior fertilizer manufacturers and im¬ porters of fertilizer materials would largely increase their volume of business through the port of Wilmington, with resultant advantages to every North Carolina fertilizer consumer. “It may be argued that terminals can be built elsewhere and that business will follow the terminals, but adequate terminal facilities are not the only factor in fertilizer development. A landlocked har¬ bor, sufficient radiating railways; terminal facilities and proximity to a large and increasing fertilizer-consuming area must all unite in the development. Only at Wilmington, can the combination of these factors be found. “To stifle the fertilizer industry here would seriously injure our fish scrap factories, oil mills, machine shops, bag and printing estab¬ lishments, aside from the damage to the farmer himself, as well as those engaged in the industry itself. “With what is now here and with what can be developed here— both considered—nothing else comparable to Wilmington, so far as the fertilizer industry is concerned, can be offered.” MOLASSES The largest importer of molasses states that they were handling a large volume of business now but that it would be immensely increased if fair freight rates were established and that the benefit of the increase would inure directly to the consumers all over the State. 15 UNITED STATES CUSTOMS HOUSE An asset of incalculable value is the massive and artistic Customs House, which is a fundamental adjunct of any port and without which no community can truly function as a “port” in the broad meaning of the term. Erected at a cost of $600,000.00 in 1916, and which to duplicate today would involve an expenditure of an amount in excess of $1,000,- 000.00, it houses among other agencies contained therein, the office of the Collector of Customs, whose duty it is to collect the customs charges on articles and commodities imported into this port. These commodi¬ ties are principally raw fertilizer materials from South America, mo¬ lasses and cement. In the office of the Collector of Customs all vessels are “entered” upon arrival and “cleared” upon their departure. The Customs House also contains the United States District Court Rooms, and the office of the Clerk of the United States District Court, and a marshal and a United States Commissioner are on duty at all times. Here members of ships’ crews can come and demand redress for any injustice sustained at the hands of a Master of a vessel and here actions at law of a maritime nature may be instituted and relief granted with despatch, which speedy relief is essential in all cases of this type, as merchant ships are distinctly Birds of Passage and once they have de¬ parted and are without the three-mile limit, as internationally agreed, the jurisdiction of the court does not apply. There is located in this building the office of the shipping commis¬ sioner, before whom crews’ articles of agreement are signed and in whose presence crews are paid off. An immigration officer is on duty to prevent any unauthorized person from putting his foot upon our shores unless he or she can meet the various tests which are applied and provided the quota of their nation has not been exhausted. A federal and state employment bureau is maintained therein where members of ships’ crews can be obtained by vessels in need of them. The offices of the United States District Engineer are located here and the United States Public Health agencies, here located, are open gratis to the crews of American merchant ships. This beautiful structure houses a large force of federal employees and was built with the idea in mind that Wilmington would some day be¬ come the great port that the builders believed it would become, and it is amply able to take care of the large expansion in the volume of busi¬ ness which will inevitably result if the State of North Carolina will pro¬ vide public terminal facilities at this point. The sore spot in the minds and hearts of the people of Wilmington is that our port is not utilized physically by the people of the State in handling the tremendous volume of business which passes through our local Customs House, which in¬ cludes all of the tobacco from Italy, Turkey and Greece, the raw sugar from Cuba and the cigarette paper from France, and the Tonca beans 16 from Trinidad, British West Indies, which is brought into Durham and Winston-Salem and placed in Government warehouses at these places be¬ fore being delivered to the manufacturers. BONDED WAREHOUSE There is located in the local Customs House at Wilmington, also a bonded warehouse, with a cargo space of 6,000 feet. The customs re¬ ceipts for the year 1922 totalled $5,668,130.22. VICE CONSULS In Wilmington there are located Vice-Consulates of two foreign coun¬ tries, where members of ships’ crews of these foreign nations can protest through their Consuls to their Ambassadors, and through them to the State Department of our Government and demand relief from any wrongs perpetrated against them, and through these consulates aid is furnished these needy foreigners who happen to be temporarily upon our soil and who have not yet become American citizens. CEMENT A leading dealer in cement has this to say: “Referring to your letter of the 26th instant we are glad to comply with your request and we submit the following brief, viz:— “The advantages of Wilmington over Southport as a Port for the receiving, storing and distributing of cement are many but we would like to point out three major reasons. “In the first place, a Port is a haven, a refuge, for man, ship and cargo after a voyage at sea, which is always attended by danger from winds and storms, and the land-locked harbor of Wilmington has all the elements of safety which Southport has not. “The second reason is that cement is a commodity that must be kept absolutely dry, which means that it must not only be kept from con¬ tact with water but also from a damp atmosphere, and Southport, which is open to the Ocean winds, does not give the protection afforded at Wilmington, which is far enough inland to be protected from this atmos¬ pheric condition, yet has all advantages of a port. “The third reason, and by no means the least, is that the Port of Wilmington is connected with the Railroad Terminals with miles of tracks for switching and whose lines reach out from Wilmington in all directions, not only over our State but to all sections of the country, and in addition to all these advantages the saving of freight charges from Southport to Wilmington would be considerable and certainly worth sav¬ ing to the people of our own State for whose benefit the State Port is to be established. 17 “We believe that the advantages of Wilmington as a port for hand¬ ling cement over Southport are obvious and not to be overcome. Yours very truly, (signed) W. B. THORPE.” AGRICULTURAL POSSIBILITIES We asked Mr. Hugh MacRae to prepare a paper on trucking and agriculture and here is his reply: “I am glad to note you are preparing supplementary arguments to be presented to the State Port Commission in the interest of Wilmington as a State Port. “I would be glad to undertake to prepare the paper you suggest but am just closing up my work in order to go to Holland and Denmark for a stay of two months in order to study matters relating to diversified farming, co-operation and land settlement; and will not have time, there¬ fore, to take up any new work which would require careful thought. “If we copy the systems of agriculture which are being followed in Denmark, Holland and our own Western States, I feel sure that Eastern North Carolina will have a remarkable future and the wealth thus cre¬ ated will be the cause of rapid development in the City of Wilmington. “Your study of the subject has made it clear to you that a port needs very many things besides depth of water. The Port of Los An¬ geles, eighteen miles from the Pacific, is successfully competing with San Francisco, which is right on one of the finest harbors in the world. “This is only possible because of the fact that Los Angeles is a won¬ derfully progressive city, and shows how much of a factor the business facilities and progressiveness are in making a port. “Today Wilmington has far more of the facilities essential to a State Port than any other point in North Carolina, and with the same expenditure and effort could fulfill all the requirements of a State Port probably ten to twenty years sooner than any other place in North Caro¬ lina could do. “I suggest that you get a copy of the report which Mr. Homer L. Ferguson made to Mr. Chas. F. Piez, Chairman of the Shipping Board, recommending Wilmington as the best place in the South for the build¬ ing of ships. Mr. Ferguson probably kept a copy of this report which he will let you have. “To me the most striking proof of Wilmington’s advantages as a port was given when the Morris Fertilizer Company selected it after the experts of the company had examined all the other Southern ports. They took into consideration all the many factors which are essential, but per¬ haps one of them was that Wilmington now has splendid facilities for dis- 18 tribution and a fine back country tributary to it which would demand the products of their company. I believe Mr. Martin would be in a position to give you some of the other reasons, “Again referring to the agricultural possibilities, would say that we have found by actual surveys within fifty miles of Wilmington there is more than 1,000,000 acres of the finest type of soil available, which is particularly suited to diversified intensive agriculture and the dairying industry. In this connection too, the factor of transportation facilities already provided is of vital importance. “It is not advantageous to great industries to locate in isolated com¬ munities with a view to “growing up with the country.” All employees of such industries, as well as the officials connected with them, like to be where there are social advantages. The ports selected in other States will bear this in mind, and a North Carolina port would have to compete with Boston, New York, Philadelphia, Baltimore, Norfolk, Charleston, Savannah, Jacksonville, Mobile and New T Orleans. “If Wilmington were twice the size it is, it would have a better showing, but it is the best that North Carolina can do, and the least it should do. Yours very truly, (signed) HUGH MacRAE.” ADVANTAGES OF WILMINGTON AS A HOME It is important to consider the operation of terminals as well as building them and the convenience of the vessel. For both purposes men of technical knowledge are necessary and the comfort of the men and their families must be considered or they will not stay. In this connection we quote passages from a letter written in 1918 by Mr. Homer L. Ferguson, President and Treasurer of the Newport News Shipbuilding & Drydock Co., and probably the best posted man on such subjects in this country, to Mr. Charles Piez, who at that time was Vice-President and General Manager of the Emergency Fleet Corporation. “On April 11th, 1918, I sent you the following telegram, ‘I consider Wilmington the best location for a four or six way steel hull shipbuild¬ ing yard of the various Southern cities visited recently. Two good sites are offered there, I would personally prefer the one on the lower edge of the city (that is the site that has been tendered to the State) as being more convenient. I was in Wilmington Tuesday and Wednesday. We looked over a number of shipbuilding sites and inquired into housing conditions, transportation, power, etc. I personally prefer the site in the city. My reasons for thus preferring it are that it is immediately adjacent to a railroad connection of the Atlantic Coast Line; is so lo¬ cated that a majority of the men can walk to work and a great many ot them go home to lunch, and there would be a considerable saving. Wil- 19 mington has a population of 30,000, one-half white and one-half colored, and is the best looking, best kept city of its size I have ever seen. The fresh water of the Cape Fear river is a distinct advantage. The health conditions are reported as excellent and I have no doubt but that a force of 2,000 or 3,000 men or even 4,000 can be built up in a com¬ paratively short time with a minimum delay and expense. The attitude of the citizens was exemplary and no effort was made by any interested parties to have their own sites given preference’.” The conditions are exactly the same now. We are prepared to take care of a largely increased population because many homes, built for shipyard workers are now available. In order to keep labor satisfied, and we mean labor in the broad sense of all those who earn a living either by head or hands, it is abso¬ lutely essential that they and their families have comfort, convenience, some luxuries, perhaps, facilities for education and recreation and op¬ portunity to attend the church of their choice. Particularly is this true with those who, as doubtless will be the case with a large number in any sudden accession to population, will have come from places where all these advantages were available. Experience has proven that the call of home and previous environment, name it nostalgia or homesickness or what you will, is almost irresistible and to offset this perfectly natural instinct it is necessary that the new location offer as many items of com¬ fort as may be possible. Wilmington has them all in abundance. It is a beautiful well kept city of 40,000 people, conservative, well behaved and orderly. It has seventy-five miles of paved and macadam streets over which vehicular traffic is pleasant and easy. There are numbers of small, well-built houses that may be rented at reasonable rates or pur¬ chased on terms which are convenient to the buyer. Hundreds are now buying homes in this manner. It is well known that the property-owning citizens are the best citizens because necessarily they are personally inter¬ ested in good government. In the suburbs on the trolley line or on hard roads, are numerous places where those whose tastes are so inclined may have small orchards, vineyards, vegetable gardens, chickens, etc., and such things are conducive to pleasurable and economic living. Be it re¬ membered that our local climate is so tempered by the Gulf Stream, which makes close inshore, and our rainfall is so evenly distributed that it is practicable to have something growing out of doors for about 240 days in the year, making small farms extremely attractive and profitable and a considerable factor in reducing living expenses to those who live on these little places, and have positions or jobs in the City. EDUCATIONAL FACILITIES The educational facilities of New Hanover County are remarkable. This county of which Wilmington is by far the greater part so far as 20 population is concerned, is spending during the coming year $412 000 00 on «iucat,o„. The total enrollment in the county, hota race, ta “ “ buildings are commodious, safe and convenient. The teachers are the best that can be obtained. The high school compares favorably n curriculum and in the physical property with any in the entire South A diploma from the High School entitles the holder to any college in the United States that admits by certificate including both the Military and Naval Academies. Pupils residing beyond the confines of the Citv are transported, free of charge, in automobile busses, to and from the High School daily. So far as schools are concerned there is nothing more o be desired, except that they keep pace with modern ideas, as they are doing, and be always prepared, as they are and by law will have to be to take care of every child that olfers. We have a modern fire department, all the apparatus being motor driven and operate a fire boat stationed in the heart of the business sec¬ tion and an unlimited supply of water. We mention this because it makes for cheaper insurance rates, an item which enters into every business calculation. CHURCHES We have several churches of each of the major denominations, lo¬ cated in convenient places all over the city and county. The Presbyte¬ rians, Episcopalians, Baptists and Methodists are especially well equipped with up-to-date Sunday School buildings, Guild Rooms, and parish houses. There are a number of ministers here of marked ability, eloquence and religious fervor. RECREATION AND PLEASURE Opportunities for recreation and pleasure here are manifold. In addition to moving picture houses, library, play grounds and such things as are usual to a city of this size, New Hanover County has a thirty- mile beach front at any point on which surf bathing is safe and fishing is good. There are five well defined points that have been selected as especially well adapted to these purposes, the best known and most popular of these at this time being Wrightsville Beach, which is annually visited by thousands of citizens of this and other Southern States. We also have Carolina Beach, Wilmington Beach, Kure Beach, each having at¬ tractions peculiar to itself and Fort Fisher Beach located at a beautiful spot replete with historical interest. These beaches are all easily ac¬ cessible. New Hanover County has over 100 miles of hard roads, many of which are picturesque and of much scenic beauty, one being almost a perfect bower for a large part of its length. Perhaps these things may seem irrelevant and unimportant, but it is such things, in the aggre¬ gate, that make the difference between satisfaction and discontent, between peace and unrest, between happiness and misery. 21 It is such things that make a place desirable to live in or otherwise. It is such things that tend to keep men happy in their work and satisfied with their positions, and since every business is dependent on the attitude of the men who are engaged in it, it is such things that make the differ¬ ence between success and failure. HOTELS With the increased business which would doubtless immediately fol¬ low the building of terminals would come an influx of strangers and transients whose impressions of the city and whose desire to continue commercial relations with it, depend to an almost incredible extent on their opinion of the city. This opinion is almost universally formed by the hotel accommodations afforded. This condition has just been met in Wilmington by the announcement that a contract has been signed and construction will begin at once on one of the best and most conveniently located corners of the down town section. The appointments of this hotel will be modern in every way, comfortable and luxurious, and it is a tre¬ mendous acquisition, as a civic asset. In short—Wilmington is an estab¬ lished city with an established trade, all lines of business, wholesale and retail, being represented so that there would be no interference or dis¬ ruption of its ordinary smooth running wheels of order, business or living conditions by the addition of several thousand inhabitants to its popula¬ tion. The same satisfactory conditions do not obtain with our neighbor down the river. MARITIME NECESSITIES LOCATED IN WILMINGTON A port requires a large floating labor population so that if a number of stevedores were required at one time this could be easily obtained. Much of our present business is seasonal, such as cotton and fertilizer and Wilmington always has an ample supply of labor that can be secured on short notice, thus obviating the expense and annoyance of delay in loading and discharging cargoes. The work of ship carpenters is highly technical and specialized and we have a number of them here. A car¬ penter could be the best kind of house builder or joiner workman and be perfectly useless in repairing a ship. There is another line of business of great importance to ships and requires much specialized knowledge and experience on the part of those who are engaged in it. That is ship chandlery or the furnishing of vessels with tackle, apparel, stores and such things as are peculiar to the use of vessels. An ordinary merchant knows little or nothing of these things. We have several of these stores, long established concerns and while it would not be impossible for them to transplant themselves and their establishments, they would doubtless be extremely loth to do so. The same thing applies to riggers, caulkers, sailmakers, brokers, etc. 22 It is also possible in Wilmington to secure on short notice marine engineers, oilers, cooks and sailors, a matter of great convenience to vessels. APPROACHING HARBOR AT NIGHT It has been said that pilots will bring vessels into and out of South- port at any hour of the day or night and that they will not take them up the Cape Fear river or return at night. As a matter of fact a pilot is always governed by the draft of water the ship draws, and tidal and weather conditions, especially at night. With good range lights, such as we have on the Cape Fear river, it is easier and safer to bring a vessel up the river than it is to bring her over the Bar. In case of trouble, that is if a vessel grounded on the Bar, it is almost inevitable that she would be damaged or possibly lost, whereas if she were grounded in the river she would probably be floated off on the next tide without damage. Of course this particular thing is not an argument for Wil¬ mington. The point is, neither is it an argument for Southport. The able advocate of Southport made this statement— LARGE FREIGHT VESSELS “Any freight ship in the world can enter it (that is the harbor of Southport) at any time in the 24 hours of every day in the year. It can anchor in good holding ground with ample swinging space, however many vessels may be in the harbor. It will not crowd out or endanger other shipping however numerous. It will be always protected from storms and tidal waves. It has entered a harbor of the first class by interna¬ tional definition because it has more than 30 feet of water at all stages of the tide.” We are now working under the 30-foot project on the bar. This means that we have 30 feet of water on the bar at mean low water. W e are willing to admit that this is about the maximum dratt ioi a freight Yggggl^ but no pilot would dare bring a vessel of that draft e\en under favorable weather conditions until the flood was well staited, possibly two hours. On the ebb it would be necessary to wait even longer because a vessel coming in can be handled better on the flood but taking both together with fair weather it would take just about one-half the time when a thirty-foot vessel could be brought in. From this bad and thick weather must be deducted because no pilot would attempt to negotiate the bar channel with a vessel of that particular size, especially at night. It would make no difference if there were forty or fifty feet of water inside; it is necessarily regulated by the depth available on the bar. ANCHORAGE BASIN AT SOUTHPORT In regard to ample swinging space however many ships may be in the harbor, it is customary and necessary now to keep a pilot on deep 23 loaded vessels at anchor in Southport because when the tide turns they must go ahead on the wheel so the vessel will have room to swing. It is our recollection and we are going to ask Captain Adkins about this, that during the war, two interned German vessels, the Kiel and the Ni- caria, were anchored at Southport for some portion of time of their in¬ ternment and complaint was made that they were a menace to navigation. The fact is that no ship that draws as much as twenty-five feet of water is safe at anchor in Southport harbor from swinging at anchor when the tide turns. This is evidenced by the fact that pilots are kept on board for the purpose of helping them swing and even then some of them touch. So that under existing conditions with the depth of water at the site selected by Southport as suitable for a State Port, it would be impossible to dock a vessel drawing over 25 feet of water whereas we have just seen that the largest freight vessels draw thirty feet of water. Most of the docks at Wilmington can take a vessel drawing more than that and the vessels could dock with considerably less difficulty, as has been shown, on account of winds and tide. VESSELS PARTLY UNLOADED AT OTHER PORTS On page 87 of the Southport brief is a list of vessels which it is said were compelled to touch at Norfolk, Charleston or Savannah before coming to Wilmington on account of insufficient water. This argument loses all its force when taken in connection with the letter that accom¬ panied it which made this statement: “In the case of the Potash ships, a great many of them did this on account of expecting to be ordered to the factories beyond Wilmington, the depth at these points being only about 16 feet on the North East river and about 19 feet and 6 inches at Navassa on the Cape Fear river.” The fact that our Cape Fear river project reads “At and below Wilmington” explains why these vessels could not get to points beyond the effect of the project. This project is 26 feet and an article in the Wilmington Star a day or two ago made the assertion, on information obtained from the Engineers’ office, that we now have 26 feet the entire length of the channel. I do not aver of my own knowledge but I have been informed that it is not an uncommon practice for a vessel to load for two points anyway. In the same letter is a list of vessels of which five had trouble. I must speak of these specifically. The first was over thirteen years ago and she was drawing 26 feet of water. Since the channel has been much improved since that time, that could not occur now and need not enter into our calculations. The second went ashore at No. 2 Buoy. This buoy is at sea and the letter specifically states in regard to this vessel “No trouble in the river.” The third rubbed bottom while passing No. 9 dredge. My recollection of this occurrence was that the dredge was partly in the channel and forced the Dorothy out of the channel. The 24 fourth says “Grounded at Southport” and the fifth says “Grounded at Quarantine Station, Southport” which would seem to substantiate our argument that the much vaunted depth of water is not there. We have a channel 300 feet wide and 26 feet deep all the way from the Ocean to the City, well marked with buoys for use by day and range lights for use by night. Any one of the licensed pilots can bring a vessel drawing 26 feet of water, in perfect safety; indeed, by taking advantage of the tide even deeper draft vessels can be safely brought up the river. UNPROTECTED HARBOR AT SOUTHPORT Touching the statement “it (Southport harbor) will always be pro¬ tected from storms and tidal waves,” we have already referred to this mildly, but to be more specific—During the 80’s in a violent storm which prevailed at Southport, a Spanish bark was overturned at the Quarantine Station, inside the harbor at Southport. This bark drifted around the harbor for months, was later salvaged and was placed in operation again under the name of the Lydia Peschau. In another storm during the 70’s, while in Southport harbor, the pilot boat, Uriah Timmons , was sunk under the bow of the barque Glacier which had been driven ashore by the storm. In a hurricane at another period the pilot boats Grace and Swift were driven ashore in Southport harbor and the Swift filled with water. At different periods the pilot boats Oriental and Louisa Harper were driven ashore. The bones of the Oriental now rest near the Elizabeth river, a mile from the point where she was moored. In another hurricane the tug Blanche and the steamer Southport were both driven ashore by the wind and tide and both were carried well up on the beach beyond ordinary high water mark. At one period a severe hurricane cut two inlets through Bay Beach at the same time. Bay Beach is the only protective bulwark from the ocean side (the Southeast from which direction the hurricanes are the most destructive and severe) of Southport. It is entirely possible that future hurricanes may cut additional inlets, which would, as a matter of fact, jeopardize shipping and all other property on the water front by reason of the tremendous volume of water coming through. It should be remembered that in each of the instances mentioned above, and others which we are sure we have overlooked, the wharves and docks were all practically demolished, so that after each hurricane thorough reconstruction is necessary. The argument has been used that the natural breakwater at the Cape is a protection from East to North¬ east storms. , The natural breakwater referred to is Frying Pan Shoals and this does in a measure protect the Bar, but not Soutnport hai boi. Because of the East to Southeast exposure of Southport during a hurricane with the wind from the Southeast, the level of the water in Southport rises from five to eight feet above the average high water mark. When it is recalled that the average tidal rise under ordinary conditions at South- port is between four and six feet, the ever present danger of phenomenal and destructive rises at Southport as the result of hurricanes is clearly apparent. The tidal variation at Wilmington under ordinary conditions is from two to three feet and there is no special variation of the average tide from hurricane or freshet. DEPTH OF WATER AT SOUTHPORT There seems to be a very general impression that Southport has an abundant depth of water, usually stated as 35 to 50 feet. This is prob¬ ably true as to a channel 1,000 feet wide from Fort Caswell for about 1% miles. From that point to Quarantine Station, it is extremely doubtful if there is any point where a vessel drawing 30 feet of water could anchor and swing in safety. The channel runs Northwest for about one mile and a quarter from Fort Caswell with plenty of water, and then, just before reaching Southport, turns almost at right angles running Northeast and begins to shoal up immediately. C. F. & Y. V. R. R. On page 53 of Southport’s brief is the following “that the only appar¬ ent exception to this (that is that the harbor at the mouth of the Cape Fear river tidal basin, or Southport, w 7 as in all cases the selected termi¬ nal) was the C. F. & Y. V. R. R. which was prevented from reaching Southport by financial and other obstacles over which the builders had no control and which forced it into Wilmington. Yet the brief says that in 1852 the General Assembly incorporated the Western road to be built from the Seaport of Wilmington west into the coal fields of Vir¬ ginia. The next paragraph says from 1852 to 1893 this road (then the C. F. & Y. V. R. R.) had been extended from Wilmington on the Coast to Mt. Airy. President Julius A. Gray’s report to the stockholders of the C. F. & Y. V. R. R. at the annual meeting in 1882 said: “Submitted to Governor Jarvis a proposition for the purchase of the State’s stock in the Cape Fear and Yadkin Valley Rail Road, with a view to making it a part of the great trunk line from Cincinnati to Wilmington.” He refers to it again in 1883 as a direct route from Cincinnati to Wilmington. In 1893 Wilmington was made the Eastern terminus of the road by law. Some one may have thought of Southport as a terminus but the evidence does not seem to show that they did very much about it. As a matter of history the City of Wilmington issued $200,000 of bonds, the proceeds of which were given to this road, and these bonds are not yet all paid. It 26 is hardly probable that Wilmington would have given money to a rail- load the terminus of which was to be located at some other point. Southport, being as stated in its brief, a small town of 1,600 people, very naturally lacks most of these advantages. It is especially advantageous for a State to have a large City and Port, that is a predominant City. It is not practicable to have two. OPINION OF EXPERTS The American Association of Port Authorities says this— “Freight could undoubtedly be brought thirty miles up the river for the same ocean rate as to the mouth, thereby eliminating thirty miles of rail haul.” (The next clause refers to our channel which he thinks, just as we all do, should be deeper and we believe the Federal Government, whose province it is, will make it deeper when the business justifies.) “If wood piling is to be used for your wharves, it is desirable to build in fresh water. “It is our opinion that State owned and operated facilities out of politics and open to everyone on equal terms is the solution to problems facing many ports now operated by private interests. If the hinterland of Wilmington is favorable for inland water transportation, then the de¬ velopment of State owned and operated facilities may encourage inland water transportation with a resultant lowering of freight rates to meet this competition. Also rail and water rates may be announced by the carriers which would undoubtedly be materially lower than the all rail rate.” The News Editor of the Commerce and Maritime Record who is thoroughly familiar with the local situation says: “Anybody who is in doubt as to the advisability of spending the State’s funds at Wilmington instead of at Southport only has to visit New York and see the difficulties encountered there with the tide and then come to Baltimore and notice that we do not pay any attention what¬ ever to it here, to be convinced that Wilmington is the logical point. “If there were no other excuse for making Wilmington the seaport, the one cited above would be sufficient. You have everything in \oui favor.” PILOTS AND PILOTAGE On page 73 of the brief presented by Southport is a quotation from a Wilmington paper as follows: “With a wide and deep channel, and it well marked, steamers could come in easily without a pilot and the larg- i est of sailing vessels would never have to take a pilot. The^ fact of « Southport being a free harbor is wonderfully in her favor.” That this 27 is quoted without comment undoubtedly means an endorsement of it. It argues that a free port is desirable. The fact is that pilotage over the Bar is compulsory and in the river optional and the rates of pilotage have been fixed by law, but the legislature of North Carolina can change this law any time it sees fit to do so. It could easily make pilotage com¬ pulsory on the Bar and in the river or it could make it absolutely free. That is, a Master of a vessel could use his own pleasure as to whether he would take a pilot or not. There are certain types of vessels that do not now take pilots, Clyde Line steamers, coasting vessels that ply here regularly, the Revenue Marine, Light House Tenders, etc., but no Master of a vessel (transient), a freighter that goes any and everywhere wants to see a port which has not a well regulated pilot service. Especially does this apply to our Southern ports which are liable to change caused by heavy gales of wind. As the draft of vessels has been increasing, greater skill has been necessary. Human lives are at stake and valuable ships and cargoes are entrusted to their care. In the past many pilots have lost their lives while following the line of their duty. It requires four years (it for¬ merly required nine) to obtain a full branch; that is, a man must work four years on part pay before he is entitled to the full fees authorized by law. And, as for the good of the port, the service must be maintained with a high degree of efficiency, the fact that vessels, in ever increasing numbers, would seek this harbor would tend to make it attractive to young men to enter as apprentices and would always assure a sufficient number of pilots to handle the business. THE HINTERLAND The immediate hinterland of the City of Wilmington has wonderful possibilities for manufacturing and farm development. Being thirty miles inland, with its projected port facilities, it can serve industries located to the East, South, West and North, its lines of communication radiating like the spokes of a wheel. This transport can be by dray, rail or barge on the inland waterway. Every manufacturer of the great State of North Carolina can be benefited by having a wider market, and the same is true of every pro¬ ducer, whether of the farm, field or forest. The greatest field for sales is the world and the road to the coun¬ tries of the world is by ocean ships. That the State of North Carolina can compete for its own trade—both export of its finished products and the import of many kinds of raw materials—it must have modernly equipped terminals. As there are diversified outputs of many factories, these terminals must be universal in their appliances so as to transfer between shore and ship—both in and out—all kinds of package, bulk or coarse freight. 28 A terminal which is to be of service to every citizen must not have only mechanical facilities for fertilizers and not for furniture, not meiely phosphate lock and none for dry goods and groceries. The ma¬ chinery must be applicable to every kind of freight that may come in the railroad classification lists. It is possible today at correctly designed terminals furnished with the universal mechanical appliances to secure the following results_ FIRST. In comparison with ports south of New York, the time of discharging and handling cargoes can be reduced approximately to one- third. SECOND. There can be three times the tonnage transferred over each foot of linear frontage per annum. THIRD. From the above the cost of this transference will be about one-third. It is evident that based upon the above, that ship owners, shippers and consignees will give to the Port of Wilmington preference over ports not so designed and equipped. In order that the Commission may understand what can be done at the Port of Wilmington, and the possibilities of the proposed location, there has been prepared a map showing a concrete plan, not of necessity the only design, but one to indicate an example of what can be done. It is the desire of the City of Wilmington to present something tan¬ gible and to indicate that there is a departure from generalities. In addition to showing what position Wilmington will take among the other Atlantic ports as a competing port, there is here given the following description of what method of procedure would be necessary. This visualizes at a glance how the State of North Carolina will be benefited by having ready for use this terminal opening to all the markets of the world. The commerce of the United States far exceeds that of any country in the history of the world. This enormous commerce will remain, if besides the low cost of production due to manufacturing in large quantities there be a low cost of water transportation with a correct physical preparation tor the trans¬ ference of the cargoes quickly and economically through the poit termi¬ nals. Much of this commerce belongs to the United States on account of the raw material, the natural products from the faim, woods and mines, and the present wonderful facilities for manufactui ing. All in¬ dustries have received a great impulse during the last two \eais. This still increasing commerce must pass through the gateways of port cities to reach the profitable markets of the world, which have been so lately developed and opened to the merchants and manufacturers of this country. Wherever the new gateways for the outflow and inflow 29 of commerce are located, there will arise the richest and most populous cities of the United States. Those gateways will be preeminent which possess natural advantages, which can be developed most quickly and which have the fewest physical and political drawbacks to be overcome. For example, there can be no doubt as to the future of the State of North Carolina. This State has been handicapped in the past. Its man¬ ufacturers have not had the same opportunity that they would have had could ocean-going ships have been able to use the Port of Wilmington more freely. If a manufacturer here located desired to send goods to foreign countries, he must pay the water or rail transportation expense to Norfolk or Charleston, and then the great terminal expenses of rehandling and of transference at these ports. As these expenses are preliminary to the steamship rates, is it any wonder that his profit was greatly re¬ duced? It does not require much business acumen to see that this con¬ dition could not continue long, even had there been no war to stimulate business and foreign commerce. It can be asserted without contradiction that there must be many marine terminals if the greater proportion of the trade of the world is to be secured. Unless there be a change in port facilities, the greatest restraint of foreign trade will be the high expense of obtaining raw ma¬ terial and of the shipping of the finished products to the markets of the world, and not a small proportion of this expense will be the terminal charges—especially when there are several rehandlings—which is ever increasing. It is difficult for the merchants and manufacturers to ex¬ pand according to their other opportunities. There should, therefore, be many new seaport terminals established as near as possible to the place of origin of the finished products. There are being built new terminals along the Atlantic, the inland rivers and the Gulf of Mexico. Some of these will overtower the others. Which states will have the greatest terminals? By what means can a state secure this pre-eminence and attract to itself the business from shippers, consignees and shipowners? How can it compete with existing ports and divide with such ports the ever- increasing new foreign commerce and obtain its share of the old? The answer is not difficult. Provide better facilities than those of the older ports. This should be done in the City of Wilmington, North Carolina. In what do these facilities consist? t MARINE TERMINAL FACILITIES p 1. That class of construction which will avoid interruption of com- j merce, either by fire or by continual repairing—that is, make the quays f or piers fireproof, rat proof and decay resisting. The quays and the n 30 piers above mean low water should be of concrete construction. Such should be the construction of the new quays along the waterfront of Wilmington. 2. Provide transferring and handling machinery which will be equal to, if not bettei, than that of any other port terminal. Such a port will be several times more efficient than any of the larger port cities of the United States. To secure a superiority over other competing ports, it is essential for such a port to be in the van in the construction of its terminals and in the installation of machinery, and not come trail¬ ing after nearby cities. The city which acts first will lead. Copying successful foreign poits and adapting their facilities to American con¬ ditions would put any American port far ahead in the competitive race. Such should be the port of Wilmington, N. C. 3. It is necessary to have the closest railway co-ordination between ship and shore. Outbound goods must be directly loaded by machinery from car to ship and inbound goods from ship to shed. The projected plans for the waterfront of Wilmington so provide. 4. Congestion at the point of deposition or elsewhere cannot be allowed, if speed of unloading is to be attained. It is this absence of congestion which comprises the superiority of the crane over the ship’s winch. Wilmington should have the most modern machinery. 5. There should be at the terminal not only steel sheds for assort¬ ing, distributing and tiering the cargoes, but also concrete warehouses for long storage. Provisions for these devices should be made at Wil¬ mington. There are many other terminal essentials, but only a few are given. It should never be forgotten that the investment in terminals is not a source of expense to a State, that is taxation, but besides the terminal being self-supporting, it is also a source of income. Its bonds are even in a more desirable class than water bonds. This does not apply to an incorrectly designed or poorly constructed terminal. Wilmington should be of the best type. The following have been so universally accepted as to have become proverbs: COMMERCE OF A PORT DEPENDENT ON ITS TERMINALS The commercial future of a seaport city is dependent upon its terminal facilities. Transportation efficiency today is a terminal problem, the main pur¬ pose of which is to secure an adequate development of terminal facilities for the transfer and handling of freight. That city, which, through low terminal cost and high terminal speed reduces transportation expense, not only facilitates commerce but creates commerce and manufacture for 31 the State and an enviable position for itself through its increasing popu¬ lation and prosperity. The trade of a State or city is great as the State or city develops facilities for the easy flow of commerce through its gates, and its pos¬ sible supremacy as a trade power depends upon its transportation effi¬ ciency. This transportation efficiency has long been recognized by those countries which have been the leaders in foreign commerce, and their main purpose has been to obtain the utmost development of their termi¬ nals for economical and rapid transfer between vessel and shore. If a city will observe the above and possesses the following qualifications, the only limit to its growth is the growth of the nation. Through its termi¬ nals Wilmington will double its population. The following are a few of the conditions necessary for a great in¬ dustrial terminal, and then for the greater port city: REQUISITES OF A STATE TERMINAL, ALL POSSESSED BY THE CITY OF WILMINGTON 1. A rich hinterland, rich in the possibilities of the products of the earth and of manufacturing. 2. Rail connections and a possible increase of such connections, and rail service to all parts of the terminal, to the city and to all territory tributary to the terminal. 3. A harbor and terminal site near the business of the city for the industrial terminal, with control of possible future extensions. 4. Low cost of harbor development proportional to that of other cities. 5. A navigable channel to the ocean. 6. A population, energetic and full of faith as to the future of their State and city, and as one unit as to its development in the fruits of which all will participate. 7. An important condition is to have a State-owned and State-con¬ trolled terminals. That is, one that belongs exclusively to the peopie. 8. Correctly designed piers and quays furnished with fireproof sheds *and warehouses and completely and properly equipped with freight transferring, assorting and distributing machinery. 9. Near location for railway tracks for extensive car shifting, clas¬ sifying and storage. 10. Land for manufacturing lofts, which should be under control of the terminal. A city is most favorably situated if possessed of all these advan¬ tages, a combination difficult to be surpassed. 32 CONCLUSIONS 1. In the competition between ports a city whose terminals are largely privately owned and controlled cannot successfully compete with a city whose terminals are owned, controlled and operated by the State and for the people. 2. Any port which hopes to secure its share of domestic and for¬ eign commerce must build permanent and fireproof quays and piers. 3. Not only will the City of Wilmington be so rendered prosperous by being the great open gateway for the State, but the whole State, every manufacturing city, or section, will also share in this prosperity. There will be a greatly extended market for all agricultural prod¬ ucts of the farm and field. The State of North Carolina needs at once this terminal road to the Ocean to foster and to protect the business of its citizens, but it must have all modern terminal facilities correctly designed and properly equipped with modern machinery. OPINION OF A TERMINAL ENGINEER In closing we wish to quote from a letter dated September 21, 1923, and written by the editor of Port and Terminal, a New York Maritime Journal, whose business it is to keep posted on all matters relating to ships and shipping. The letter was in reply to three questions pro¬ pounded by the Wilmington Chamber of Commerce. The answers, of course, indicate the questions. “We have your kind letter of the 15th and in response thereto we have consulted with Mr. H. McL. Harding, our consulting engineer on the points in question— You are right. We cannot doubt but what there will be a sav¬ ing in cost of rail freight by having the terminals located up the river as you suggest. In most cases, up-river points are more favorable from the viewpoint of geographical location as well as the question of safety. As a general rule, in cases of this kind, rail lines can be terminated within a reasonable limit of revenue territory of the railroad. The additional cost of water haul 30 miles from the mouth would be so slight as to be i negligible factor. “2. By all means fresh water is a better location for harboi stiue- Lures, owing to the deteriorating effect and teredo attack in salt water. “3. As regards State owned facilities open and on an equal basis with everyone, there can be no doubt of its advisability. “This is particularly true in the development of a smaller seaport. Terminal facilities can be provided with less waste of sp a ce an , ere- fore, more economically, encouraging the town natives by the flow ot commerce through that port. 33 A VISION At this point, one could well drift for a few minutes into the realms of dreamland visualizing things as they may well be in the future. He would doubtless see on the banks of the Cape Fear river in the fair City of Wilmington, a tremendous space, as space in cities goes and on this space are mammoth buildings and strange looking devices. These struc¬ tures are safe from the destructive element of fire, impervious to the damaging effect of water, immune to the ravages of property destroying rodents and so solid and substantial and permanent that they will never know decay. And what would one see inside these mammoth buildings? In one are bushels and bushels of wheat that have come here from the mid-west by a through East and West trunk line which will be existent then. This wheat is waiting to be exported, at prices that mean profit to the pro¬ ducer, to a rehabilitated Europe. And in another he would see hogshead after hogshead of tobacco from the golden belt of North Carolina to be shipped through the State’s own port as of right it ought to be. And in another, he would see cases of cotton goods and crates of furniture and many other articles manufactured in this great State and seeking outlet through a port that is all its own. And the great black dingy building, what of that? In that are tons and tons of coal which have come straight as the arrow flies from coal fields in the heart of this State of ours. Afid there is yet another picture. In this he would see all marked and ready for distribution into our hinterland, by rail, by barge, by truck, wonder¬ ful silks from Japan, other rich goods from the far East, manufactured goods from Europe, frozen lamb from Australia, quarters of beef and bales on bales of hides from the Argentine, and who knows but what shoe factories would follow in their train. Rubber, and all products of other climes, raw sugar from our neighbors to the South, refineries to be lo¬ cated here, and all the myriads of necessities and comforts and luxuries that are demanded now in our complex lives. And with his mental eye he could penetrate, and this won’t be long, the opaqueness of the cypress stained waters and he would see thirty feet of same between the placid bosom of the Cape Fear and the bed of the channel below, and looking to the North he would see a 12-foot canal from the Cape Fear river to all the Northern marts, a canal so safe from flood and wind and storm that a child could navigate its gentle waters, and plying these waters, hither and yon, are barges and boats and other craft each laden with the products of farm and factory and forest, going to the ultimate consumer at the slightest modicum of cost. And swinging his eye to the West in its roving glance, he would see the North East river and the Cape Fear and Black and South and all the other 1,000 miles of navigable waters that flow to this fair town of Wil¬ mington, each bringing its burden of cheer and prosperity and things 34 for daily use to those who need them most. And that first big space we saw. What a hive of industry it is. What busy men, what healthy, happy women all working at those things which best do suit their taste and capability. And from aloft he would look down upon this, my native State, and see miles and miles of roads. Roads from the lofty mountains of the West to the gently sloping Beaches of the East. Roads from the Old Dominion on the North to the Palmetto State on the South and lead¬ ing to every nook and cranny of the Old North State, he would see roads and roads and roads. And on these roads are truck after truck carrying produce in and merchandise out as needs may be, and farmer and mer¬ chant, mechanic and laborer are going to and fro in autos of their own, so prosperous have all become. And now one reads the list of all these States of this great nation. First in products of the farm, first in furniture, first in cotton goods, first in tobacco, and first in many material things. First in education, first in culture, first in morals and first in all those attributes that make for civic righteousness and there after all these things, he says the name of North Carolina, writ in letters bold and big. CONCLUSION We rest our case here fully satisfied that it is now in the hands of a fair-minded and a competent body which, we know, is considering all matters from the broad view of the most benefit to the State, rather than to any particular location, section or interest. We firmly believe that the proper solution of the problem will even¬ tuate in relief from the inequities and injustices of which this State has long been a victim. Nothing in this argument is intended as a reflection on the town of Southport or on any person who had a part in preparing the brief recently submitted, on its behalf, to the Commission. The papei was ably edited and contains many fine passages. We have always felt sympathetic with the town of Southport and there has been no change in this feeling. We cordially wish for it, success and prosperity and will help, when occasion affords, but we feel so confident of Wilmington’s superiority in every way for this purpose, that we have felt it clearly our duty to demonstrate ; it to the people of North Carolina. It has been our purpose simply to place before the Commission the advantages of the Port of Wilmington, as we see them; to state facts bearing on a little understood situation and to correct erroneous impres¬ sions that may have been created in the public mind. That which the State wants is relief from an intolerable condition inder which it has been laboring for all these years, and now that the ase has been diagnosed it wants the remedy applied and applied quickly. 35 The remedy may be applied, in full, by the use of Wilmington as a State Port many years quicker than by the use of any other place in the State. The remedy may be applied much more economically by the use of Wilmington. It could doubtless save a large sum of money in construc¬ tion costs for reasons previously stated, and if the recommendation were followed that a rail carrier be purchased or constructed to provide the necessary transportation, the saving should be something like one million dollars. That is the first cost alone. There would also be a saving in maintenance charges and insurance on terminals and contents. Feeling fully justified by the reasons above set forth we earnestly ask that you recommend the adoption of the State Port idea in principle and the early acceptance of Wilmington’s proffered site, free of charge, to the State, the plans for terminals to be worked out later by competent engineers. With the Commission in full possession of all the facts just as they exist, we rest content. \ 36 4 i trl m | i^-^v^p/jCtX kjr^A >-f . ->■ > y~- ji. 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