HE 5D IflQ J7 SUPPLEMENT TO THE ANNALS OF THE AMERICAN ACADEMY OF POLITICAL AND SOCIAL SCIENCE. SEPTEMBER, 1893. INLAND WATERWAYS^ Their Relation to Transportation. EMORY R. JOHNSON, PH. D., Instructor in Political and Social Science at Haverford College. Int of !/ the artificial waterways of the United States which is warranted by the magnitude of our inland commerce. There has, indeed, been strenuous opposition to the policy which the United States has pursued in aiding inland io ANNALS OF THE AMERICAN ACADEMY. navigation.* " Probably no class of general legislation," says Senator Frye, in the report of the Senate Committee on Commerce, "has been subjected to more severe and con- tinued criticism than that enacted for the support and development of our internal and seaboard commerce by affording increased and safer means of communication." This opposition, of which Senator Frye speaks, has pro- ceeded not only from railroads, but also from the demagogues of the press and stump, whose motives are seldom above reproach. There have been those, it is true, who in honesty of purpose and with words of wisdom, have raised a voice of warning against the methods which Congress has employed in its river and harbor legislation, and have urged Congress to pursue a policy not less liberal but more scientific. Such critics are deserving of gratitude rather than censure. me expenditure of money for the construction of canals has been most strenuously opposed. The history and present condition of artificial waterways, and a misconcep- tion of their functions as agents of commerce, as it is carried on to-day, afford an explanation, though not a sufficient justification, for this feeling against the canal. In spite of this feeling, however, the magnitude and recent rapid increase in inland navigation, have not only strengthened the demand for the further improvement of natural water- ways, but have also shown the necessity for supplementing these with canals. The large use that has been made of the ocean-ship canals, and of the purely inland waterways of France and Germany and New York, have increased this demand. The opposition to the liberal and scientific use of public money in the interest of inland routes of navigation will grow less ; for, as Senator Frye says, ' ' a more intelligent and clear perception of the results of such expenditure has been manifesting itself, and in all probability within the present century, as our inland and ocean traffic continues to * For a fuller discussion of the opposition to appropriations for the aid of inland navigation than is here given, consult the author's paper on " River and Harbor Bills," ANNALS OF THE AMERICAN ACADEMY, Vol., II, p. 782. May, 1892. RENAISSANCE OF INLAND NAVIGATION. 11 develop and demonstrate each year more forcibly the wisdom. and absolute necessity of our expenditures for rivers and harbors, the undeserved censure will have entirely ceased, and the only question to receive attention will be that of where the invariably adequate funds can be expended to the best advantage. ' ' There is no doubt but that the growing favor in which the direct promotion by the State of inland navigation is regarded in the United States, France and Germany, is due in no small degree to the change which has taken place in men's conception of the functions of the State. The laissez faire, laissez passer theory is abandoned, and the direct intervention of the State in the affairs of trade and commerce for the purpose of adding to the wealth and welfare of society is to-day approved of under circumstances where it would have been condemned even a generation ago. Such being the attitude of men toward the State, attention is naturally turned to the inland waterways to see what is their commer- cial r61e, and to decide to what extent the State ought to participate in their improvement and extension. _The military significance of inland waterways has done nota little to turn attention to t^pm arf| f interest in their construction. The growth of the feeling of nationalism that is so characteristic of the present, and of which the development of the military in every European country is but one manifestation, would and does do much to incite each nation to do all it can to improve the condition of jts trade and industry, but the requirements of defence are an especially strong incentive toState aid to waterways. Prussia ancPthe Empire are constructing the Nord-QsJ:-See Cana!7 very largely for the military purpose of securing- a waterway from" the Baltic to the North Sea thrpugh German territory. Our recent trouble with Chili did much to awaj^en tlie interest of the United States government in the Nirfl.rfl.gfi a Capal. and the feeling that the waterway ought to be controlled by the United States and by no other power is the reason that will ultimately induce the United 12 ANNANS OF THE AMERICAN ACADEMY. States government to aid or undertake the work. ingfor the construction by the United States of a lake ship canal from the Great lyakes to tide water never omit to score the telling point that such a waterway would be necessary^ to the defence of our frontier in case of a war with England. Evidences of the renaissance of inland navigation are manifest in every country. In England, the Manchester ocean-ship canal" is nearing completion, and other similar works of scarcely less importance are being discussed. France has been steadily enlarging and extending her inland waterways since 1879, and the much mooted project of making the Seine navigable for large ocean vessels as far as Paris seems reasonably sure of execution. Austria and Hungary are improving the Theiss and the Danube, and breaking down the ' ' Iron Gates ' ' that obstruct the com- merce to and from the lower course of the Danube. Bavaria is considering the improvement of the Main and its connec- tion with the Danube by a larger and more serviceable waterway than the existing canal. Besides aiding in the construction of the Nord-Ost-See Canal, Prussia is putting through a canal from the coal mines near the Rhine at Dortmund to the lower course of the Ems River, and has authorized the construction of other important canals. Rome and Brussels are especially interested in waterways, because of their desire to bring the ocean ships to their wharves. The interest of the United States in the promotion of inland navigation is indicated by the numerous waterways conven- tions that have met during the last two years, and by the liberal appropriations which several successive Congresses have made. Private capital has begun the construction of the Nicaragua Canal, a work which the United States will doubtless aid if not entirely assume. A corporation is enlarging the Chesapeake and Delaware Canal into a water- way for ocean ships. Congress has appropriated large sums to continue the improvements of the Mississippi, Missouri, and Columbia rivers, and to deepen the channels of the RENAISSANCE OF INLAND NAVIGATION. 13 Great Lakes to twenty-one feet, and to begin the construction of an efficient waterway between the Great Lakes and the Mississippi River. Pittsburg is casting about to se whether she may not obtain connection with Lake Erie by means of a lake- ship canal ; and the Minnesota Canal Company has recently been formed at St. Paul for the purpose of connecting St. Paul and Minneapolis by means of a similar waterway with Duluth and Lake Superior. These and the many other works now being executed, or about to be begun, warrant the use of the expression The renaissance of inland navigation. The works and projects referred, to include not only the improvement of natural waterways, but also the construction of canals. The experi- ence of the ' ' Hepburn ' ' investigating committee which the New York Legislature appointed in 1879, indicates the important place inland waterways, including the canal, have in transportation : ' ' While the committee made no attempt to investigate the relations of the railroads to the canal, and sought to lessen their labors by avoiding this question, the canal, like Banquo's ghost, would not down ; but we were compelled to meet it at every point and turn of the investigation." CHAPTER II. CLASSIFICATION OF INLAND WATERWAYS. THF, WAY THEY SHOULD BE STUDIED. Inland waterways may be divided according to the pur- poses they subserve, into three classes : First, natural waterways, of which there are two kinds : (i) Rivers and lakes whose commerce is distinct from that on the ocean in the sense that ocean vessels cannot navigate them, and (2) the lower courses of large rivers and the arms of the sea, whose waters float both ocean vessels and boats from the interior. Second, the inland canal, the purely artificial waterway whose purpose may be to lengthen a natural water-course, to connect separated rivers, lakes or arms of the sea, or to establish a waterway in a region where no water-course exists. Third, the ocean-ship canal, of which also there are two kinds : (i) Those such as the Suez Canal is, and as the Nicaragua Canal will be when completed, that shorten the routes of ocean travel and traffic. They are similar to the canal connecting two separated inland systems of navigation except that their purpose is rather to promote inland commerce indirectly, through facilitating carriage on the ocean, than directly by extending the routes of inland navigation. (2) The other class of ocean-ship canals are such as the Rotterdam, Amster- dam and Manchester canals, whose purpose it is to float ocean ships to the docks of cities that have previously been inland. The maritime and lake-ship canal differ essentially from other artificial waterways. Their object is not only the transportation of goods a distance equal to their length, but also, in order that reloading may be avoided, to bear the ships containing the goods, either from one ocean, or large lake, to another or to some city that is a great manufactur- ing or distributing centre. The service they perform is a definite one ; t and one, too, that, as compared with the (14) CLASSIFICATION OP INLAND WATERWAYS. 15 railroads, may be estimated in advance- of construction with nearly as large a degree of accuracy ^because of the fact that the railway can compete with such a^canal in only a limited way and at a disadvantage^ The probability that capital in- vested in such an enterprise will or will not yield a profit may be tolerably easily calculated. Maybe, the preliminary esti- mates of cost of the Manchester Canal fell far short of the actual expense of the work, while the experience of the Panama Company shows that over-credulous capitalists may be made the dupes of speculators and rogues in the case of waterway improvements, the same as in other enterprises. The failure of the Panama scheme was so obviously due to the fact that the undertaking became the gambling project of designing men that the future invest- ment of capital in ocean-ship canals will not thereby be at all deterred. Economists and statesmen have united in advocating the construction of ocean-ship waterways since the Suez Canal gave such an impetus to commerce. The good returns yielded on capital invested have induced capitalists to undertake other similar works. ^The_Man- chester Canal is well on its way toward completion. The Nicaragua Canal has been begun and the success of the Suez Canal makes men well-nigh certain that these canals will be good investments of capital. The question, then, to be considered in connection with them is quite as much low and by whom they should be constructed as whether or not the works ought to be executed. Of all countries in the world, the United States, because of its present and prospective commerce, has the most to hope for from maritime and lake-ship canals. We need in this country to study the actual commercial conditions, and in what way they can be bettered by these canals, and especially by the one at Nicaragua. The United States seems to stand before this project hesitating to enter upon it, much as the children of Israel stood at the entrance to the promised land and would not enter in. We, too, ne some Joshua for a leader. 1 6 ANNALS OE THE AMERICAN ACADEMY. Many who concede the importance of maritime and lake- ship canals doubt whether the improvement of natural inland waterways and the construction of canals are works on which it is advisable, under present conditions, to expend capital. This phase of the question may, then, rightly be investi- gated at greater length. /These two classes of undertakings, river improvements and canal construction, will not, nor should not as is done by some, be classified and discussed together. \ Because the improvement of important streams such as tne Rhine and the Mississippi may, by reason of the commercial importance these rivers enjoy, be wise economy, it does not follow /necessarily that canal building is worthy of promotion. Canals must be studied independently of rivers and be separately compared with railroads? That some one, the State or corporations, ought to improve the large lakes and more important rivers as commercial routes is granted by all. The relation that the government ought to bear to such works deserves further analysis than has yet been given the subject. The commercial importance of streams of secondary rank needs study in order to reveal what their real place is and ought to be in the transporta- tion systems of the present time. As a result of the prelim- inary surveys of water-courses, which Congress in each river and harbor bill directs the United States Engineers to make, we have, in the ' ' Annual Report of the Chief of Engineers, ' ' a large amount of material regarding the condition of the various water-courses of the United States and some infor- mation as to their commerce.* The statistics of the inland navigation of the United States are, however, still very incomplete. The eleventh census is the first one that has undertaken to gather, compile and publish full statistics concerning all classes of transportation by water, and, with the exception of the Great Lakes, Lake Champlain and the rivers of the Mississippi Valley, this has given us no * In 1890, Major H. M. Adams, of the United States Engineer Corps, prepared, in the office of the Chief of Engineers, an outline map of the United States, show- ing the tonnage of the rivers and harbors of the United States. This work has not been repeated since. CLASSIFICATION OF INLAND WATERWAYS. 17 statistics of inland navigation as distinct from the coast- wise traffic. There ought to be legislation enacted by Congress providing for the collection, classification, and compilation of full and reliable statistics of the inland commerce of tlie~ United States. Perhaps we shall secure this when Congress establishes a permanent bureau of statistics. The United States Engineers have given us data enough to show that streams of secondary importance have a place in our trans- portation system ; we need, however, to classify these statis- tics and to investigate in a broader and more comparative manner the commercial industrial and economic effects of these streams and to inquire how and by whom the expenses of carrying this on are to be met. To ascertain the position the canal occupies in the com- mercial and industrial world is not easy. If " specialists, even, have the greatest difficulty in holding that tight rein on their thought without which it is impossible to arrive at an independent judgment," we can hope to get at a true solution of the problem before us only by a careful historical and statistical study. The present condition of the canal, and the progress which engineering science is now making in rendering the canal a more efficient agent, need to be given a careful consideration in the investigation which this mono- graph proposes to make. To state the problem broadly, it is necessary, in order to answer the question What is the present and what may be the future importance of inland waterways ? to find out their present condition, and how much freight is carried on them and on the railroads, to ask what influence inland waterways exert on railroad tariffs and revenues, to inquire especially under what condition and to what extent canals can compete with railroads in the future. To make this discussion com- plete it is necessary to decide to what extent the State should construct canals and improve inland waterways, and how far the State ought to leave this work to corporations, and to treat the question of tolls on State waterways. Having done this, the peculiar needs of the United States and what. 1 8 ANNAI.S OF THE AMERICAN ACADEMY. is being done to meet them may be profitably studied. To accomplish all this is admittedly a task at once difficult and important. The question whether inland waterways shall be im- proved cannot be answered alike for all countries. In these States where both railroads and waterways are owned and controlled by the government, the problem is simpler. Waterways will be found to have an important influence on railroad charges even under these circumstances ; but the waterways are to be regarded less as competitors and more as complements of the railroads. The problem in such countries is to discover how the two carriers may best be made to co-operate as parts of a single unified system of transportation. In countries such as the United States, France and England, where the railroads are private property under private control, the influence of navigation on railroad tariffs calls for more detailed study. In this case waterways must regulate railroad rates chiefly by competition, and how to maintain the navigable ways as independent competing routes becomes a vital question. It should still be the purpose of the State to form of the two carriers a single system of transportation, the difference between the relation of waterways private or State to State railways and to private railways being that in the latter case the two parts of the system should compete with each other, while in the former instance this is not necessary. Most of all it is essential in considering the relative merits of railroads and improved waterways that one's mind be kept free from prejudices. The question of improv- ing waterways and constructing canals affects favorably and unfavorably large money interests. Business men often argue on the basis of their own individual advantage. Engineers sometimes approach the question more regardful of their present and future reputation than of the real merits of the discussion. Legislators, especially under our system of making improvements, are frequently too strongly influenced CLASSIFICATION OF INLAND WATERWAYS. 19 by personal and local interests, and do not give due weight to national considerations. The investigator of an economic problem such as this should not approach the question as ~an- advocate of the waterway, nor as a friend of the railway, but as a seeker after truth. His attitude should be one of unbiased inquiry. CHAPTER III. THE PRESENT CONDITION OF ENGLISH AND AMERICAN INLAND WATERWAYS. The policy of the federal government toward the improve- ment of rivers and harbors during the past fifteen years has been liberal. The deepening of harbors has been generously cared for, and the Great Lakes and the Mississippi River have been treated in a like manner ; but the construction of canals to connect the more important systems of waterways with each other and to the ocean has not been so vigorously pushed. Indeed, the construction of canals in the United States, either by the States or by the Federal Government has stood practically at a standstill for a generation. Those waterways that were once the pride of the States, have either been abandoned by their owners, or allowed to fall into a condition of little usefulness. The present condition of inland waterways is easily accounted for. The r61e that the canal is to-day called on to play in commerce, differs from its r61e of sixty years ago. Most canals existing at present were constructed at a time when industrial needs existed that have since greatly changed or passed away. They were constructed when the volume of freight seeking movement was comparatively small, and when through, as contrasted with local, freights was relatively unimportant. The localization and centrali- zation of industries, and the concentration of population into great manufacturing centres had but begun. Industry did not then as now call for the movement of great quantities of bulky raw materials long distances, but rather for the car- riage of small quantities to less remote points. The canals of Kngland and the continent generally were built accord- ingly. Numerous corporations constructed small waterways with dimensions sufficient only to meet the needs of the (20) ENGLISH AND AMERICAN WATERWAYS. 21 time. Very little regard was paid by one canal company to the dimensions of waterways other than their own. In the United States, most canals were longer and looked to the^ movement of traffic greater distances, but they were small and calculated only for the movement of small volumes of freight. The railroad also entered the transportation field when traffic was largely local in character and still small in amount. The first railroads were short local lines. They began competing with the waterway for a traffic which they soon showed themselves better able to handle ; for the rail- road is an agent better adapted than the waterway to the transportation of small quantities of goods a short distance. The railroad conquered in the early contest with the canal and the improved river, and what is more, during this con- test an important industrial change was going on in society. This alteration in industrial conditions was partly due to the influence of the railroad, partly caused by other inventions, and not a little accelerated by the awakened intellectual activity, and the increase in the scale of human wants that have accompanied the change. This transformation has put quite a new phase on the commercial needs of society. There has been a great revolution in transportation. Passes ger traffic has reached such immense proportions that those of fifty years ago seem insignificant. Freight has not only enormously increased, but has radically changed in char- acter, a fact of which the great trunk lines of the United States are a striking example. The railroad has made possible the rapid growth of large cities, and the concentra- tion of manufacturing into great centres. The food supply of the cities of the eastern part of the United States and of those of England even is drawn from the grain fields of the Mississippi Valley. In determining what is the function of inland waterways in commerce, these facts must be kept in mind. To enter at length into the history of the struggle of the railway and waterway that brought about the present 22 ANNALS OF THE AMERICAN ACADEMY. condition of the canal would take this discussion too far afield.* But while we are especially concerned with present conditions we may with profit refer to the past when such references help explain present conditions and aid us in deciding what policy ought to be adopted in the future. The purpose being rather to accomplish this than to cover the history of the relation of the railway and waterway in a complete man- ner, it will be sufficient to bring out the salient facts of the struggle in England and in America. England being the jOnly country where the waterways and railroads were and are both private property, her experience is especially instructive. The contest between the waterways and railroads of Eng- land was very bitter. When the railroad strove to enter the field there was great opposition on the part of the canal companies. They were sole possessors of commerce. There was very little competition among canal companies, they held monopolies and charged excessively high tariffs, f The first railroad charter of importance was granted in 1826 for a line between Manchester and Liverpool. The two canals connecting these places had pooled and raised their charges exorbitantly high. They opposed the request of the rail- road company for a charter so strongly that it cost Huskisson $350,000 to get the act through Parliament. The Man- chester and Liverpool railroad was a great success and rail- road building progressed rapidly. The contest with the waterways raged inside and outside of Parliament, and the canals were not long in losing their overpowering strength. As pointed out above, the railroads were a better commercial * For a full account of the struggle in England, see Cohn's "Englische Eisen- bahnpohtik." An account for France and England is briefly given in Hadley's ' Railway Transportation." The text of all the important English laws for the regulation of railways is given in the " Second Annual Report of the Interstate Commerce Commission." t Cf a speech by Morrison in the House of Commons, May 17, 1836 : " The history of existing canals, waterways, etc., affords abundant evidence of the evils to which I have been adverting. An original share in the IjC of the company's stock, is now fetching 600^", and yields a dividend of about 30^" a year. And there are various other canals in nearly the same situation." Hansard's Debates, 3d. Series, Vol. xxxiii., p. 981. ENGLISH AND AMERICAN WATERWAYS. 23 agent for the carriage of most kinds of freight then seeking transportation, and though built chiefly like canals to carry on a local traffic, they quickly and easily adapted themselves, to the transportation of through freight. They kept pace with the revolution in industry and commerce, because they readily admitted of extension, unification, and consolidation. Not so the canals of England, whose dissimilarity of dimen- sions made combination difficult, and prevented competition to any great extent with the railroads for long-distance traffic. They did not keep abreast of the progress of events. The owners of the canals were, of course, largely to blame ; for they did not understand that with the advent of the railroad the function of the canal changed, nor did they push forward the improvements in waterways that were necessary to adapt them to the altered industrial and com- mercial interests. Vested interests are by nature always conservative. The railroads were alert and several circumstances were favorable to them. Most of the industrial cities had grown up along the lines of the canals, and thus it was that many railroads paralleled the canals and came into competition with them. No attempt was made by either party, as has since been done, to share freights in order that each might take the part it was by nature best fitted to transport, but various methods were adopted by the railroads to injure the efficiency of their rivals. The canal lines, as has been said, were composed of several parts, each section being in the owner- ship of an independent company. The railroad company had only to buy a short section, if it were an important one, to get possession of a whole line. This it did, and the canals or sections so purchased were frequently repaired in the busy season, and were often closed for traffic during the night. When the waterway was parallel to the railroad, rates on the latter were made lower. Furthermore, it was of advantage to the railways that canal companies were not allowed, till 1845, to be shippers, and that canal freight rates were fixed by the government. The railroads had neither 24 ANNANS OF THE AMERICAN ACADEMY. of these governmental restrictions. Some canals and rail- roads ended competition by uniting in trusts. Other owners of waterways strove, but unsuccessfully, to form independ- ent trusts ; thus canal property declined rapidly and its absorption by the railroads continued. By these means the railroads were able the more quickly and more fully to cripple the waterways. These circum- stances, however, only hastened a result that must surely have ultimately followed. The canals of England were doomed to defeat from the moment of their entry into competition with the railroads in the general field of trans- portation ; and for several reasons : The railway lines, at least after the first few years, were much longer than the competing waterways ; thus the canal companies with small quantities of capital had to compete with the larger amounts of capital owned or controlled by the railroad corporations. Again, the canals could carry only freight, while the rail- roads conveyed passengers as well. The policy of the railroads, very naturally, was to keep passenger rates high and to cut on freight charges till competition on the part of the canals became impossible. Of course the railroads were not obliged to cut on all freight. All fast freight came to them in any case, and it was only on slow, bulky goods that they needed to lower rates to embarrass the canals. The last two of these reasons are as valid to-day as they were then and are quite sufficient to demonstrate the fact that the field of the waterway in transportation is a narrower one than that of the railway. What that field is and what its importance is will be the subjects of later inquiry. The legislation of Parliament has done but little in aiding the development of canals and their maintenance as compet- ing waterways. The numerous petitions from railway companies for charters kept the relation of the State to railroads and canals, and the relation of the two means of transportation to each other constantly before Parliament during the early decades of railroad building. The neces- sity for governmental control of railroad charges was not at ENGUSH AND AMERICAN WATERWAYS. 25 first realized. It was thought that canals and railroads would compete and keep down charges, and it was also generally supposed that on railroads the same as on turnpikes shippers would compete with each other. The Select Com- mittee of the House of Commons that reported in 1839 was the first to recognize the fact that the owners or operators of a railroad must necessarily control the shipment of goods, and that it was impracticable for individual ship- pers to own and run cars and engines in the way they had used their own boats and wagons on canals and turnpikes. The following year the Select Committee of the House of Commons declared itself to be " aware that instances are not wanting where companies and large capitalists, instead of competing, have combined and entered into agreements whereby the public have suffered, ' ' but still it did not consider it had material enough to judge itself able to establish a schedule of maximum rates. It thought the canals might be looked to to control rates on heavy articles, but could not deny that the tendency of canals also would be to combine with the railroads rather than to compete against them. The power of the railroads rapidly grew strong in Parlia- ment. A resolution introduced into the House of Commons, by Mr. Morrison, 1836, for the governmental revision of rates each twenty years, met at first with approval in Par- liament, but soon encountered such an opposition from railroad interests as to defeat it. In 1844, Mr. Gladstone, at that time president of the Board of Trade, said, ' ' The railway interest is, perhaps, the strongest in regard to direct influence on votes of members."* The bill which passed in 1844, stipulating that railroads constructed in the future might be purchased by Parliament after they had been operated twenty-one years without interference, and had yielded a profit annually of ten per cent for three years pre- vious to purchase, had, of course, placed no real control over * Speech in Parliament, July 8, 1844. Hansard's Parliamentary Debates, third series, Vol. Ixxvi., p. 493. 26 ANNAI OP THE AMERICAN ACADEMY. the actions of railroad companies. In 1845, tne canal com- panies petitioned Parliament for protection against the competition of the railroads, and secured, for the first time, the right of becoming shippers over their own canals, and obtained the power to raise and lower their tariffs. The canal companies were now, for the first time, on equal legal footing with the railroads.* Reasons have been given that explain why simple legal equality of the canal and railway companies was insufficient guarantee that canals would or could maintain themselves as independent agents of commerce. Railways continued to combine with each other and to get the canals, either by purchase or consolidation, more and more under control. Parliament investigated the matter, and in 1847 established a well-nigh powerless Railway Commission, which existed till 1851, without accomplishing anything. In 1852, the House appointed a select committee ' ' to consider the prin- ciple of amalgamation as applied to railway, or railway and canal bills, and to consider the principles which ought to guide the House in railway legislation." The committee found that in several important districts the canals and rail- roads had united ; that the absorption of canal property by the railroads had not been checked, and that the parlia- mentary regulation to secure freedom of traffic on the canals had been ineffectual, f The result of the investigation was the ' 'Act for the Better Regulation of the Traffic on Railways and Canals," 1854; Section 2 of which enunciated several provisions that have appeared in most subsequent English and American laws for the control of railroads. It may, indeed, be said that it has been the ideal of railroad legisla- tion since 1854 to gi ye validity to the provisions of this section. It provides : ' ' Every railway company, canal *" Only ten of the sixty or seventy canal navigation proprietors (1892) in the United Kingdom act as carriers." Edwin Clements, in article on "Taxes and Tolls of the United Kingdom." Report to Fourth International Congress on Inland Navigation. t Reference is here made to only such part of the committee's report as concerns the discussion in hand. ENGUSH AND AMKRICAN WATERWAYS. 27 company, and railway and canal company shall, according to their respective powers, afford all reasonable facilities for the receiving and forwarding and delivering of traffic .upon and from the several railways and canals belonging to or worked by such companies respectively, and for the return of carriages, trucks, boats and other vehicles, and no such com- pany shall make or give any undue or unreasonable preference or advantage to, or in favor of, any particular person or com- pany, or any particular description of traffic, in any respect whatsoever; nor shall any such company subject any particu- lar person or company, or any particular description of traffic, to any undue or unreasonable prejudice or disadvantage in any respect whatsoever ; and every railway company, and canal company, and railway and canal company having or working railways or canals, which form a continuous line of railway or canal or railway and canal communication, or which have the terminus, station, or wharf of the one near the terminus, station or wharf of the other, shall afford all due or reasonable facilities for receiving and forwarding all the traffic arriving by one of such railways or canals by the other, without any unreasonable delay, and without any such preference or advantage, or prejudice or disadvantage as aforesaid, and so that no obstruction may be offered to the public desirous of using railways or canals, or railways and canals as a continuous line of communication, and so that all reasonable accommodation may, by means of the railways and canals of the several companies, be at all times afforded to the public in that behalf." The law also pro- vided that complaints of aggrieved parties were to be brought in the Court of Common Pleas, and this was quite sufficient to make the law without effect. In twenty years only two suits were brought to enforce the stipulation in regard to the ship- ment of goods, and both cases were lost. The rulings of the courts as to the meaning of undue preference and unreasonable rates were so liberal as to deprive the law of nearly all force. The relation of the waterways and canals of Kngland has not materially changed since 1854. In 1872 the means of 28 ANNALS OF THE AMERICAN ACADEMY. communication were again investigated at length by another Select Committee of the House of Commons. The report made was only negative in character as regards the policy to be pursued in legislating on inland waterways. The committee reported that when Parliament had permitted canals to unite with railroads the conditions which she had imposed to secure the maintenance of the canals in a navi- gable condition had been easily avoided. If Parliament were to prohibit the canal companies from selling out to, or uniting with, the railroads, the competition of the railroads would bankrupt the canal companies. Again, if a canal company came to Parliament asking permission to sell out in order to avoid bankruptcy what was to be done except to grant the request ? The committee thought nothing short of State purchase of canals would be able to preserve them as com- petitors of the railroads, and such a policy the committee did not feel warranted in recommending. The bill of 1873, " An Act to Make Better Provision for Carrying into Effect The Railway and Canal Traffic Act, 1854, and for other purposes connected therewith," resulted from this investigation. It established a Railway Commission consisting of three members and two assistants, in whose hands was placed the enforcement of the law of 1854. The law stipulated (Section 14) that "Every railway company and canal company shall keep at each of their stations and wharves a book or books showing every rate for the time being charged for the carriage of traffic other than passengers and their luggage from that station or wharf to any place to which they book, including any rate charged under any special contract, and stating the distance from that station or wharf of every station, wharf, siding, or place to which any such rate is charged." The commissioners were empowered to decide whether terminal charges were reasonable. No rail- road company was permitted except by statutory permission from Parliament to purchase or to obtain control of a canal without consent of the commissioners.* Thus the law * The law was to be in effect only five years, but in 1878 it was continued till the end of 1879, then till December 31, 1882, then for three years longer, when the commissioners were made a permanent body. ENGLISH AND AMERICAN WATERWAYS. 29 strengthened the degree of the State's supervision and was a step in the right direction. The commissioners did not secure low rates for shippers, the law did not by any means cure the evils of unequal and excessive charges by the rail- roads ; but the commissioners did constitute a court before which many railroads guilty of unjust and unequal charges were brought and made to change their tariffs. The law did not bring about a revival of inland commerce, and the fore- going discussion has given reasons amply sufficient to show the impossibility of that taking place on the canals as con- structed seventy and a hundred years ago. Though from 1873 to 1882 the commissioners' power of compelling a rail- road owning canals to maintain its waterway in a navigable condition was exercised only once, still the position of the canals as compared with the railroad was a more favorable one. They did not prosper very much, but they held their own. The revival of interest in inland navigation has been espe- cially marked since 1880, and this was very largely the cause of an attempt by Parliament in 1888, to pass such a law as would surely enable the waterways of England to develop and enter more fully into competition with the rail- roads. The condition of inland navigation in England is at present not entirely discouraging. The canals have not been entirely driven to the wall. The map of England shows a complicated network of canals and canalized rivers whose length is 3813 miles. Of canal companies proper, there are in England thirty-nine, in Scotland none, and in Ireland five. Of public trusts which control canals or canal- ized rivers as municipal or county conservancy boards, commissions, or trusts there are thirteen in England, two in Scotland, and five in Ireland. Three city corporations of England are proprietors of navigations, and five canals of England are owned by private individuals. The number of railway companies owning canals in England are fifteen, in Scotland two, and in Ireland one, and they own or control no less than 1375 of the total 3813 miles of the waterways of 30 ANNAI^S OF THE AMERICAN ACADEMY. the United Kingdom.* This last fact presents the most important and most difficult phase of the problem. In spite of the past legislation, the railways control a large share of I the English canals ; indirectly, they dominate many more. This indirect control comes about in two ways. On the one hand from the fact that the railway-owned canals often con- stitute parts of longer lines, and on the other hand, because the railroad, on coming into competition with the canals, has influenced them to confer in fixing rates. The more important provisions of the railway and canal traffic act of 1888, by which it is hoped to free the canals further from the domination of the railroad and maintain them as competitors, are as follows : The Railway Commis- sion was superseded by a Railway and Canal Commission, consisting of two commissioners appointed by Her Majesty, and three ex-officio commissioners. The three ex-officio members are judges of a superior court, England, Ireland and Scotland each having one of the three. In England, by the Lord Chancellor ; in Scotland, by the Lord President of the Court of Sessions, and in Ireland, by the Lord Chan- cellor of Ireland, the judge is designated who shall serve for a period of at least five years as ex-officio railway and canal commissioner. The commissioners are given a greater control over rates. They can (Section 31,) on the applica- tion of any one interested in through traffic, order through rates, and decide whether any proposed rate is just and reasonable. Formerly they could act only on the applica- tion of a canal or railway company. The navigation owners must make yearly reports to the Board of Trade and the Registrar of Joint Stock Companies regarding the capital, revenue, traffic and capacity of their navigations. No canal can be closed for more than two days without previously notifying the Board of Trade. By Section 42, no railway company is allowed to acquire any interest in canals without previously securing statutory authority therefor. Every * Cf. " Taxes and Tolls on Inland Navigation in the United Kingdom," pp. 5-6. Edwin Clements' Report to the Fifth International Congress on Inland Navigation. ENGLISH AND AMERICAN WATERWAYS. 31 canal company is required (Section 39) to submit revised classifications and schedules of rates and tolls to the Board of Trade, and these schedules are to be submitted to Parlia- ment for revision. Parliament has revised the schedule of maximum rates which the railroads may charge for the conveyance of merchandise traffic. In May, 1892, the Board of Trade began the investigation of the powers of navigation com- panies and their rate charges ; the schedules have been revised by the Board of Trade, but have not yet been acted on and put in force by Parliament. As the first step in this investigation the board, in pursuance of Section 39 of the law, required statistical information from each canal and navigation company, and it was found that the paid up capital invested in canals and navigations, not owned by the railroad companies is about $100,000,000. The railway companies owning canals do not separate the capital invested in waterways from their other capital. The total traffic on all the inland waterways of the United Kingdom reaches the considerable sum of 36,301,120 tons. The waterways of Scotland are the only ones showing actual loss on investment ; those of England and Wales not owned' by railway companies netted the low profit of 2. 76 percent ; if Scotland and Ireland be included, the average falls to two and a-half per cent. Concerning the operation of the law of 1888 it is still rather early to judge. One thing, however, may be asserted ; should the law result in making competition possible between rail and water traffic it will only prepare the way for the revival of inland navigation. The inland navigation routes of England must most of them be reconstructed before they become effective agents of modern commerce. This will mean in many cases the enlargement and improvement of existing routes, in some cases the location of new ones, and doubtless the abandonment of many old ones. The causes that have brought about the present condition of English waterways have been cited here because they seem 32 ANNALS OF THE AMERICAN ACADEMY. especially instructive. From England's experience with waterways under private ownership we may learn much by which to guide our action in the future. The conclusion that we may rightly draw is nc/necessarily that the State ought to own the waterways. \That the State must, how- ever, closely supervise the location, construction, and opera- tion of both waterways and railroads when both are owned by corporations, if it wishes to maintain the waterways as competitors of the other routes, seems tobe a fact strongly emphasized by the experience of England^ The present condition of the inland waterways in the United States is partly explained by the history of their construction and partly by the industrial changes that have taken place since the introduction of the railroad. These changes have made the competition of railroads more ruinous to the waterways. The larger natural waterways of the United States are playing an increasingly important r61e in our commerce, while most of the old canals have lost their former commercial significance. The mania for canal build- ing seized the States after the successful completion of the Erie canal, in 1825. New York, Pennsylvania, Ohio, Indiana, entered upon the construction of extensive works of internal improvement, and other States aided private enterprise with large contributions of money. In most States private companies, usually with State aid, constructed canals of more or less importance.* The total length in 1880, of the canals in the United States was 4468 miles. They had cost $214,041,802. Of these canals, 1953 miles had been abandoned, leaving the length of those in operation 2513 miles, f The only States owning or aiding canals at present are New York, Ohio and Illinois. The other States have quite ceased to aid internal improvements. Most of the canal property they once owned *Ihave purposely avoided going at length into the early history of water communication in the United States, but have inserted in the bibliography at the end of the monograph those books that I have found useful in studying the subject. t Cf. Report on Canals of the United States. Tenth Census, Vol. iv. ENGLISH AND AMERICAN WATERWAYS. 33 has been abandoned or sold to private corporations, while a few important ones have been turned over to the Federal Government. Such was the case with the St. Mary's Canal^ constructed by the State of Michigan, and later, in 1880, handed over to the United States. The reason why the Federal Government has taken such canals from the States, and the same is true of the many river improvements that have passed from the States to the United States, is not because the unprofitable character of such works made the States desirous of being rid of them, but primarily because the national importance of the waterways made it preferable that their improvement, and the control of them should be the charge of the Federal Government rather than of the States. One of the causes why the States ceased making internal improvements and sold or abandoned their canals was the financial panic of 1837. Many States had gone heavily into debt in constructing canals and improving waterways, and the financial storm left them stranded. They were bank- rupt and had to cease their works of internal improvement. More than this, they found the works that had been executed to be in many cases a burden to their treasury, and not a source of income. This was partly due to the fact that the canals had not always been well located, and that too many had been built ; but more because of the war of the railroads against the waterways. The canals were mostly located while the industries of the States were yet young. When the States developed, the movement of freight was often not in the direction of the canals, and this left to the waterways only the comparatively unimportant local traffic. The canals, poorly located and ill-adapted to perform large commercial services, were unable, in most cases, to hold their own against the railroads. The war of the railroads on the waterways was, very naturally, no less incessant here than in- England. The length of the abandoned canals, both private and State, is large. The canals in the New England States were private 34 ANNAI should have greater influence, by means of reports and per- sonal attendance on the sessions of the committees that frame the bill, in shaping legislation. Furthermore, the Secretary of War ought to have greater discretionary power as to the way in which the money appropriated shall be applied. When President Arthur vetoed the river and harbor bill of 1882, he recommended that Congress authorize the Secretary of War and the President to spend such of the money appro- priated as they thought best, the restriction being imposed on them that they should spend money only on the objects named in the bill, and that they should spend no more on a particular work than the bill authorized. Whether in detail or not, in principle at least, this recommendation to vest the Secretary of War with greater discretionary power in the out- lay of money which has been appropriated was sound. The Secretary of War, aided by the counsel of the United States engineers, is better able than Congress to apply the money * For a iustification of this statementsee the author's " River and Harbor Bills.'* THE RIVER AND HARBOR Biu,. 119 granted scientifically and economically to an improvement. He is practically free from local influence, is subjected to but little political pressure, his only object can be the wisest administration of his department. The democratic spirit of Americans is chary of granting much power to the executive. The French have secured great advantages from giving the executive branch of the government extensive powers over inland navigation. To a large extent the administrative part of our government is still undeveloped, and the small discretionary power given the Secretary of War over the application of money appropriated to improve rivers and harbors is but one instance of the fact. The most objectionable feature of our river and harbor legislation is our driblet system of appropriations. This plan encourages the commencement of more works than would otherwise be begun. Congress feels freer to authorize a work when the immediate appropriation is small. The brunt of the burden is thus not only shifted onto future legislators, but becomes greater by virtue of the shifting. River and harbor improvements are often begun and left for sometime in an unfinished state. This causes a great waste of capital, adding, in some cases, from twenty-five to fifty per cent to the cost.* Driblet appropriations cause another waste by compelling engineers to adopt unscientific plans in executing the works. Many engineering projects require plans reaching through a series of years in order to secure satisfactory results, Furthermore, the present way of making appropriations often precludes large contracts thus adding materially to final costs. Z tion concerning the river. With the improvement of the mouth of the Mississippi by means of the jetties which Captain Bads successfully completed in 1879 every one is more or less familiar. The works of improvement at present consist mainly in the construction of reservoirs at the head waters to secure water for release during the season when the river is lowest, in the construction of wing dams to confine the channel and cause it to maintain a greater depth , and in dredging the channels and harbors of the river. (122) WORKS IN PROCESS OF EXECUTION. 123 For this work the River and Harbor Bill of 1892 appro- priated $3,655,000 to be expended on the Mississippi River, exclusive of its branches. Of its tributaries, the Ohio, Cumberland, Tennessee and Kentucky rivers alone received $1,525,000. The bill also authorizes contracts to be entered into by the Mississippi River Commission that may entail a maximum expenditure of $12,870,000 during the next three years. The improvement of the Missouri River is likewise under the supervision of a commission. This body consists of three army engineers and two civilians. The commission is improving the river in a systematic way by completing the work on one reach after another, beginning with the mouth of the stream and working up. The bill of 1892 appropriates $752,500, and authorizes contracts involving the expenditure of $2,225,000 during the three years from 1893 to 1896. The most important item in the bill of 1892 is the appro- priation for the construction of " a ship channel, twenty and twenty-one feet in depth, and a minimum width of three hundred feet in the shallows of the connecting waters of the Great Lakes between Chicago, Duluth and Buffalo." The total cost of the work is estimated at $3,340,000, and the bill authorizes the United States engineers to enter into con- tracts for completing the entire work. As a result of the urgent demands of the commercial interests of the West, Congress provided in the bill of 1890 for the examination of the channels connecting the lakes. In the report of the sur- vey by Colonel O. M. Poe, who is the engineer in charge of the improvements of the Great I/akes, the feasibility and desirability of the work were strongly set forth. The men most interested in the commerce of the lakes met in conven- tion at Detroit, December 17 and 18, 1891, and sent a memo- rial to Congress urging it to authorize the work and to make the necessary appropriation. The result was the clause in the bill of 1892, to which reference has been made. The 124 ANNANS OF THE AMERICAN ACADEMY. work of improving the harbors of the Great Lakes is being adequately cared for by liberal appropriations of Congress. In view of the zeal Congress is manifesting in the improve- ment of the Great Lakes and the Mississippi River, it is sur- prising to find that the work of connecting and co-ordinating these two great systems of inland waterways has not been correspondingly pushed. The fullest use of the natural waterways cannot be possible as long as they are connected by such an inefficient canal as the Illinois and Michi- gan, extending from Chicago to La Salle on the Illinois River. At present Lake Michigan is connected with the Mississippi River by this canal and the improved Illinois River. Congress is now carrying on the work which the State of Illinois had previously begun, of canalizing the Illinois River. "The ultimate object of this improvement is to furnish a through route of transportation by water from the southern end of Lake Michigan to the Mississippi River of sufficient capacity for its navigation by the largest class of Mississippi River steamboats that can reach the mouth of the Illinois River."* The United States has also begun the construction of the Illinois and Mississippi (the so-called Hennepin) Canal from the great bend of the Illinois River near the town of Hennepin to the mouth of Rock River. This canal is to be ninety-seven miles long, eighty feet wide, seven feet deep, and with locks 170 feet long, with thirty- five feet in width of lock chamber, and is, of course, to be constructed so that river steamers can navigate it. This canal will shorten the water route from Chicago to all points north of the mouth of the Rock River by 419 miles, will surely increase the traffic on the upper Mississippi and exercise an important influence as regulator of the freight charges in the Upper Mississippi Valley ; that is, will do so as soon as the Illinois and Michigan Canal has also been reconstructed. That is at present a barge canal six feet * Report of Committee on Commerce, U. S. Senate. Report No. 666, Fifty-second Congress, first session, p. 375. WORKS IN PROCESS OF EXECUTION. 125 deep and sixty feet wide, on which there is a traffic of but 1,500,000 tons annually. Boats of the size that can pass the locks of the Illinois River must at present stop at La Salle and transfer their cargo to the smaller boats of the Illinois and Michigan Canal. It is to be hoped that the enlargement of this waterway will not be long delayed,* and that the Illinois and Mississippi Canal will be put through as soon as possible. In speaking of the improvement of the waterways of the Mississippi Valley, the Ohio River and its branches, the Kentucky, the Cumberland and the Tennessee deserve especial notice. The large amount of traffic on the Ohio has already been referred to.f Nearly eight million dollars have been expended on the river since 1827, when the first works were begun. The Ohio is 967 miles long, and is at present navigable throughout its entire length for coal boats drawing six feet of water. This, however, is possible for only 155 days of each year on the average. The proposed improvements would make this coal traffic possible from one to three months longer each year. Of course, the ordi- nary smaller-draft river boats can navigate the stream throughout the season of navigation. The last River and Harbor Bill appropriated $560,000 for use on the Ohio River. The Kentucky, Cumberland and Tennessee rivers, like the Ohio River, flow from rich lumber and mineral regions through fertile agricultural districts. Steamboats navigate the Kentucky to Frankfort, and large amounts of freight are brought down the river from the Three Forks in flat boats. The tonnage on the Kentucky in 1891 was nearly 400,000 tons double what it was eight years ago. The existing * Or that the Chicago drainage canal, now being constructed to connect Chicago with the Illinois River, will be pushed to an early completion. This canal is to be fed by the waters of I^ake Michigan, is to drain the sewage of Chicago into the Illinois River, and is to have dimensions that will make it navigable for lake and river boats, f Videfupra, page 45. 126 ANNAIcf the construction of the canal, or brings the Maritime * Vide Supra pp. 137-38. 144 ANNALS OF THE: AMERICAN ACADEMY. Canal Company completely under control and allows the company to proceed with the work strengthened by the credit of the government, is a question of secondary import- ance. In one way or the other the United States ought to promote the enterprise. The government can carry through the work far more economically than can any corporation of individuals. The State can construct the canal for $100,- 000,000 ; no corporation can do it for less than $200,000,000. The burden of extra cost must, of course, fall chiefly on our trade and industries. Nbtice what the difference in the fixed charges would be in the two cases : Were the United States to construct the canal, or loan its credit for the pur- pose, the annual fixed charges would be, interest at three percent on $100,000,000, $3,000,000; maintenance, repairs and operation probably less than (but we will say) $2,000,- ooo ; for a sinking fund which invested at three per cent would amortize the principal in fifty years, $1,000,000, total fixed charges, $6,000,000. Now, compare this with the fixed charges that a corporation would have to bear : Inter- est at six per cent on $200,000,000, $12,000,000; mainte- nance, repairs and operation, $2,000,000; total fixed charges, exclusive of amortization of capital, $14,000,000. The fixed charges have to be met by tolls. If there be 9,000,000 tons a year passing the canal, a toll of one dollar a ton would yield $9,000,000. This sum would meet the fixed charges in case the Government constructs the canal or loans its credit for the purpose, and leave $3,000,000 for distribution among shareholders ; but a toll of a dollar a ton would come $5,000,000 short of meeting the fixed charges that a cor- poration would have to bear ; while a toll of $2.00 a ton would yield only a two per cent dividend. A toll of $2.50 a ton would yield only four and one-eighth per cent divi- dend, and a toll as high as that would be an exclusive one for some kinds of bulky freight. The government could make the toll less than a dollar a ton as the traffic on the waterway increased, indeed could THE NICARAGUA CANAI,. 14$ reduce the tolls, after the capital invested had been amortized, so that they would simply cover fixed charges. More that) this, the government might adjust the tolls so as to favor our coast-wise trade. We would be obliged to levy the same toll on our ships engaged in the foreign trade as we laid on vessels of other countries ; but the coast- wise traffic might be given the free use of the canal. Furthermore, with the aid of the State, the canal can be constructed, and its benefits realized much sooner. Should the United States be apathetic the project will not fail. " It will be worked out ; we cannot help it. This generation of men may hesitate and halt and falter about it, but there will come another along who will take it up and work it out."* American enterprise and genius will, in time, overcome the difficulties and obstacles, though the enterprise be left to individual effort ; however, this work of widest national importance ought not to be delayed and made a needlessly heavy burden on commerce, trade and industry, but should receive the prompt and efficient support of the State. NOTE. After Chapter XII. had been given final form by the printer, the morning papers of August 31, 1893, ave notice that, on the day previous, the Nicaragua Canal Construction Com- pany had been obliged to go into the hands of a receiver, Mr. Thomas B. Atkins, secretary and treasurer of the Maritime Canal Company. The Construction Company, it appears, has been embarrassed for some time, and not very much work has been done since January i, 1893. There are several reasons for the financial embarrassment of the company. Of course the chief one is the crisis that has so thoroughly crippled business. As Warner Miller, the president of the Construction Company, says : " During all the present finan- cial difficulties it has been trying to get money to carry tlie work of construction along. The hard times have rendered * Speech by Senator Morgan in th Senate, February 13, 1893. 146 ANNAI OF THE AMERICAN ACADEMY. it substantially impossible to get subscriptions to keep things moving. ' ' The financial crisis has weakened the Construe? tion Company by the financial losses it has brought upon certain members that were largely interested in the company. Furthermore, the Panama scandal has tended to lessen the confidence of capitalists in the success of the Nicaragua Canal. The recent war in Nicaragua has retarded the work, and has probably made the receivership necessary earlier than it -would otherwise have been. Whether the construction of the canal will be interrupted very long or not is impossible to foretell. Mr. Miller says : "It ought not to. The Maritime Company, to which the concessions were made, will remain intact. It is unimpaired, and ought to be able, after times improve, to revive the enter- prise and go ahead with it." It is quite probable that the re-organized Construction Company or some other private association of men will resume the work of construction after a ; short time ; but, without venturing to prophesy, I feel confident that the ultimate assumption of the enterprise by the United States will come sooner, because of the delays that come to the execution of the work by private corpora- tion. The canal is of too vital importance to be very long delayed. CHAPTER XIII. THE ECONOMIC SIGNIFICANCE TO THE UNITED STATES OF THE EXTENSION OF 'INLAND WATERWAYS. The improvement and extension of inland waterways alter industrial, commercial and social conditions. The significance of cheap transportation has been but briefly referred to in the previous pages. The closing chapter of a monograph written, as this is, in the hope of showing how waterways conduce to cheapen the cost of carriage and to develop industry, ought, from the nature of the subject treated, to emphasize strongly the economic importance of inland navigation, to direct attention especially to the indus- trial, commercial and social interests of the United States and to show how they may be modified by the further ex- tension of water routes. The industry that lies at the basis of all others is agricul- j ture, and its dependence on the conditions of transportation , ; is most vital. Indeed, the farmer is especially at the mercy / of those who control the shipment of freight. His produce must, in large part, be moved during a few months of the year, a fact of which the railroads take advantage by raising rates when produce is being moved. The agricultural development of the States north of the Ohio and east of the Mississippi has been phenomenal. Bordering on an inland waterway of unparalleled value, fourteen hundred miles long and connected with the sea- board by a navigable river and a canal, that have furnished cheap rates for a part of the freight and have regulated all charges by rail, they have marketed their farm produce on the seaboard and across the ocean.* Kansas, ^Nebraska and the Dakotas, though possessing soil superior to that of the Lake States for the growth of several kinds of grain, are at * Even such a bulky article as hay is shipped to Europe. The farmers of Wis- consin, even, are this year marketing hay in France, shipment being entirely by water. One Fond du I,ac hay buyer shipped $65,000 worth in June, 1893. (147) 148 ANNAI^S OF THE AMERICAN ACADEMY. a great disadvantage as compared with them, because of the high rates of transportation by rail. It is not because the Dakotas are farther from New York and Liverpool than Minnesota, Wisconsin and Illinois are, that the former States are so much at a disadvantage ; had they such a waterway as the Great Lakes available for use, their greater distance from the seaboard markets and from the mines and forests that supply them with fuel and lumber would be of small moment. The extension of the commerce of the Great Lakes to St. Paul and Minneapolis and the further improve- ment of the Missouri and Mississippi Rivers and their better connection with the lakes will give the agriculture of the west Mississippi States a great impetus. If in addition to securing better means of transportation these States can find ample coal beds within their borders, they will rank second to none of the States in their industrial prosperity. The agricultural interests of the Mississippi Valley will be largely promoted by the Nicaragua Canal. It will continue the water route, beginning with the Missouri, Ohio and the upper Mississippi, to the harbors of San Francisco, Portland, Callao and Valparaiso, where the prairies of the United States will then market their produce. The agri- cultural interests of the Pacific slope will be greatly for- warded by the Nicaragua Canal. Take the single item of wheat and flour, of which 1,800,000 tons were shipped from the Pacific States to Europe in 1891. The canal would have saved $2.00 a ton, or $3,600,000 in freight charges. Under present conditions for marketing the produce of the Pacific States, the amount grown is far less than it would be with the Nicaragua Canal open for traffic. The wheat crop of Washington last year is estimated at 20,000,000 bushels, but the capacity of the cereal-growing lands of the State is about 200,000,000 bushels (6,000,000 tons).* The benefits of inland waterways to agriculture manifest themselves in a more local and specific way. There are * Cf. Speech by Senator Squire, Congressional Record, February 15, 1893, p. 1676 EXTENSION OF INLAND WATERWAYS. 149 many articles of comparatively small value for which trans- portation by rail is possible only to limited quantities and for short distances. Cheap transportation by water increases the marketable quantities of such subsidiary farm products as fertilizers, clay, sand, straw, hay and wood. The by- products, as is the case with manufacture, are often the real source of the farmer's profit ; if they are marketable, much more land becomes possible of cultivation, population in- creases and the value of land rises. The water routes of the United States have, to a large degree, made possible the development of our iron industries. Some of the richest iron regions of the United States, those of northern Michigan and Wisconsin, lie nearly a thousand miles from the great coal fields of Pennsylvania, but with a waterway connecting them, on which freight rates are only a little over a mill a ton mile, the two mining regions are brought close together. They are able, because of this fact, to compete with the newly-opened mines of the South that lie next door to the rich coal beds of Alabama. The distribution and consumption of coal, both for manu- facturing and heating purposes, have been made much greater in the United States because of inland transporta- tion ; nor have we by any means yet reached the limit of the possibilities of wider distribution or lower prices. The distribution of Pennsylvania coal by means of the Ohio River and the Great Lakes will increase in the future with the improvement and extension of the water routes of the Great Lakes and the Mississippi River system. The im- provement of the Missouri, the construction of a river-ship canal between the Mississippi River and Lake Michigan, of lake-ship canals from Pittsburgh to Lake Erie and from Lake Superior to St. Paul and Minneapolis, will cheapen coal throughout the North and West, and greatly widen the present marketable limits. By the improvements of the Torabigbee and Warrior rivers, now in process of execution, the coal from the rich 150 ANNAIng . 4,163 na . . 6,827 New Orleans to Miles San Francisco . . 11,005 Guayaquil .... 9,343 Callao 79 T 3 I4verpool to Miles. New Zealand . . . 1,051 Hong Kong .... 1,265 Yokohama .... 3,929 ne . 3,290 iland . 3,870 Valparaiso .... 5,975 Liverpool to Guayaquil .... 5,431 Callao . 4,090 h Islands, 7 842 6.981 San Francisco . . 6,996 Melbourne .... 392 Valparaiso . . . . 2,114 Sandwich Islands, 4,944 so .... 5,062 Melbourne New Zealai Sandwich I Callao . . Valparaiso Taken from the Senate Report, 1142, Fifty-second Congress, second session. It will be noted that the saving in distance is without exception in favor of the United States. f See Congressional Record^ February 14, 1893. Speech by Senator Frye. EXTENSION OF INLAND WATERWAYS. 155 Japan was in 1888, when 85,000 pounds were sent. In 1891 7,000,000 pounds were sent to supply 380,000 spindles. The industrial development of the Orient must surely follow the introduction of better means of inland communica- tion. This industrial revolution has as yet but begun. If we are in possession of a water route across Nicaragua we shall greatly benefit by the growth that the foreign trade of the Pacific States is to experience in the future. The Orient and the Occident are now separated from each other by the mountain wall that skirts the coast of America from Alaska to the Strait of Magellan. At Nicaragua this wall is only a few feet high. Twenty-six miles of excavation at this point will make a waterway from ocean to ocean. When once this way is constructed the East and the West will be united by the close bonds of commercial amity, we shall send iron and steel to the nations beyond the Pacific, we shall sell them locomotives, engines and other machinery with which to build their railroads and telegraphs and to establish and develop their manufacturing industries. The Nicaragua Canal will be the highway through which the civilization of America will pass to the peaceful conquest of the East. Reference has been made in the introductory chapter and in this to the fact that the extension of inland waterways is of social, as well as industrial, significance. Economic forces combine with moral ones in social reform. Rapid transporta- tion and cheap freight rates condition to a large degree all industrial activity. It is with cheap transportation only that this monograph has concerned itself ; but to the extent that waterways have been shown to cheapen rates to that extent have they been shown to be an economic force that makes for social reform. Inland waterways operate indirectly to promote social reform. The regeneration of the dependent classes will be brought about directly by the influences that work to change the subjective nature of the men in the lower strata of society. 156 ANNALS OF THE AMERICAN ACADEMY. Of course, the fundamental forces by which this can be accomplished must be subjective and psychic, but these can be efficient in a large degree only when the objective condi- tions are made as favorable as possible. Society, the State and capital in its organized forms have an important duty to perform in setting in order the theatre in which the moral, the psychic forces must act. If the thesis of this monograph has been established, the extension of inland waterways has an important beaming on the social asjge.11 as thft industrial problems of thejlay, and it is an incomplete view of the present functions of inland navigation that reveals only their commercial and industrial aspects. To the extent. transportation to promote social reform is realized will the striking words of the Cullom Committee acquire j>ignifi- cance : * ' The manifest destiny of our country,, points ujjerr- inglY^to^ this emancipation of the waters as its next_great work, a fitting sequel to the emancipation of the slave, a destiny not of war, but of beneficence an^peace7to which the heart of the nation turns as spontaneously and resistlessly as the waters of its great river flow to the Gulf. ' ' The fig- ure of speech is a strong one, it is true, but it serves well emphasize an important truth by expressing the hope the present in a prophecy for the future. j [ Sept.) 1893. INDEX. Ac worth, W. M., crowded condition of passenger traffic in London, 67 Adams, H. M., 16 Annals of the American Academy, 10, 67, 112 Arthur, Chester A., Veto of river and harbor bill of 1882, 118 Atkins, Thomas B., 146 Balize, English settlement at, 135-136; England's treaty with Guatemala in 1859, 136 Bellingrath, Ewald, cost of moving freight by canal, 79 ; quoted concern- ing use of hydraulic lifts in Germany, 86; on power of canals to compete with railroads, 88-89 Bibliography of works consulted, 157- 160 Bompiani, 104 Brentano, Lujo, on construction of waterways by the State and by corpo- rations, 96-97 Canals, maritime and lake ship-canals characterized, 14-15; should be studied independently of river improvements, 16 ; length of canals of United States, 32; causes of the abandonment of many canals of New England, Penn- sylvania, New York and Ohio, 33-36 ; traffic on canals : in New England, 31, in France, 42, in Germany, 44 ; con- ditions under which canals can com- pete with railroads, 73-89; classifica- tion of, 73 ; considerations regarding the costs of construction, 74-76 ; the cost of maintenance, 76-78 ; of moving freight on, 74-76 ; use of steam on, 80-81. protection of banks, 81 ; traction of canal boats, 81-83 ; large canals more economical, 83-84; Haupt's law, 84; locks on, 84-87; hydraulic lifts and inclined planes, 85-87 ; Bellingrath on power of canals to compete with rail- roads, 88-89; use of for draining and irrigating, 88; requisite dimensions, 89 ; tolls on European waterways, 90 ; cost of transportation on English waterways, 94 ; Illinois and Michigan Canal, 124-125 ; Hennepin Canal, 124 ; Chicago Drainage Canal, 125 ; proposed canal from Pittsburg to Lake Erie, 130, from St. Paul to Lake Superior, 130 ; canal from Great Lakes to the ocean, 131 ; should be within the United States. 131, 132 ; proposed canals be- tween Cincinnati and Lake Erie, and between Philadelphia and New York, 132 ; Nicaragua Canal, 133-146 Chesapeake and Delaware Canal, 129 Chicago Drainage Canal, 125 / Chipman, J. L., suggested Detroit water- ways convention 100 Citizens' Municipal Association of Phil- adelphia, report of 1893, quotation concerning the electric light monopoly of Philadelphia, 50 Clayton-Bulwer Treaty, 135-137 Clements, Edwin, 26-30 Cohn, Gustay, 22 Columbia River, size and resources of region drained, 128 ; obstructions to navigation, improvements, 128, 129 Combination and consolidation of rail- roads, See "Railroads." Commerce, coastwise and inland of United States, 38 ; on French water- ways, 42, 43; on German waterways, 44, 45 ; relation between traffic by rail and by water, France, 42, 43, Germany, 45, 46, the United States, 46, 47 Commissions, State railway, 48 Cullom, Shelby M., opposed to pooling contracts, 54; Cullom committee of 1885, 57, 58, 156 Cumberland River, improvements on, 126 Delaunay-Belleville, 70 Detroit, Waterways Convention at, 100 Dufourny, 55, 103 Economic significance of the extension of waterways of the United States, 147-156 : I. As regards agriculture, 147- 149; II. Iron industries, 149-150; III. Lumber business, 150, 151 ; IV. Foreign competition, 151, 152, V. Domestic and foreign commerce, 152-155; VI. The promotion of social reform, 6, 151-152, 155-156. Edmunds, George F., 135 Ely, George H., on a canal from Great Lakes to the sea, 101 England, Waterways of, reasons why they were crippled by the railroads, 23, 24 ; legislation of Parliament con- cerning, 24-32; methods employed in improving, 115 Erie Canal, completion of, 32 ; improve- ments needed, 35, 36; character of freight on, 40 ; tonnage on, 46 ; grain rates on, 55-57 ; rate per ton mile, 78 ; boats used on, 78; steam traction on. 81 ; electric traction on, 83 ; locks on, 85 Evansville, Waterways convention at, 101 Evarts, William M., 135 Finet, Theophile, quoted concerning rail and water traffic, 39 Fink, Albert, on waterways as regulators, of tariffs, 59-60 (161) 162 ANNALS OF THE AMERICAN ACADEMY. Fleury, 43 France, Waterways of, length 41-42 ; law of 1879, 41 ; classification and tonnage of freight on, 42 ; compared with rail- roads, 42-43 ; subventions by the de- partments, 107-108 ; 'navigation cham- bers, 108 ; methods by which improve- ments are made, 115-116 Frye, William P., on opposition to Con- gressional aid to inland navigation, 10-11; speech in Senate on Nicaragua Canal, 134 Germany, Waterways of, traffic on rivers, 44; on canals, 44-45; statistics of ton- nage on, 45 ; relation to railroads, 45-46 ; tolls on, 90 ; State improvement an ac- cepted fact, 96 ; the way improvements are made, 115-116 Gladstone, William E., quoted concern- ing power of railroads in Parliament, 25 ; quotation from speech of 1844 on inefficiency of railway competition, 50 Granger legislation, 48 Hadley, Arthur T., 22 Haunaii, Edward, quoted on New York canals, 36; rates on canals and rail- roads of New York, 56-57 ; economy of steam traction on Erie Canal, 81 Haupt, Lewis M., relative cost of large and small canals, 75; this stated as a law, 84 Hepburn committee, quoted concerning relation of the canal to the railroad, 59 Hennepin Canal, 124 Hoerschelman, 81 Hotchkiss, Hiram, 138, 142 Hudson River, traffic on, 8 ; its improve- ment the charge of the United States, 111 ; conditions of navigation, improve- ments, 127 Hydraulic lifts, described, 85 ; Anderton lift, 86 ; at FontinStteand LouviSre, 86 ; suggested for use in Germany and at the Dalles of the Columbia River, Ore- gon, 86, 129 Illinois and Michigan Canal, 124 Improvement of waterways, arguments for private enterprise, 91-93 ; for State construction, 93-98; Brentano on, 96- 97 ; chief works should be by the State, 98 ; facts concerning the United States and the States, 110-111 Inclined planes, described, 85 ; use on Shropshire Canal, 86 ; use in Germany and on Morris and Essex Canal, 86; their superioritv over locks and lifts, 86-87 Inland navigation, opposition to con- gressional aid, 9, 11 ; reasons for pre- sent promotion by the State, 11-12 ; re- naissance of, 12-13 ; international con- gresses on, 38, 72, 99-100 Internal improvements in the United States, 110, 121 ; causes of the abandon- ment of them by Congress from 1830- 1870, 112 ; the River and Harbor Bill, 110-121 International congresses on inland navi- gation, committee on statistics, ap- pointed by Third Congress, 38 ; resolu- tion of the Fourth Congress concerning relation of waterways and railroads, 72 ; the proceedings of the Fourth and Fifth, 99-100 Interstate Commerce, assumption of its control by Congress, 11; the National Commission: its report referred to, 22 ; the establishment of the commission, 48; it favored pooling, 53; investigation in 1885 of Senate Committee on Inter- state Commerce, 57-61; the Commis- sion's freight classification, 59, 60 Jeans, J. Stephen quoted on the use of canals, 36 ; on locks designed for Nic- aragua Canal, 87; on condition of English canals, 93, 94 Kentucky River, length, traffic, improve- ment of navigation, 125, 126 Lakes, The Great, vessels and traffic on, 8 ; the commerce compared with the foreign commerce of the United States, 9; tonnage on, 38,47; freight rates compared with charges by rail, 56 ; the growth of lake commerce has aided the railroads, 68 ; average freight rate on, 77 ; costs of transportation on, 77 ; their improvement not a work adapted to private enterprise, 94, 95 ; work of Detroit convention to secure twenty- foot channels, 100, 101; convention to discuss a ship-canal to the ocean, 101 : no tolls on the Lakes, 106 ; the twenty- foot channels in, 123 ; a ship-canal to the ocean, 131 ; influence of the Great Lakes on the agricultural development of neighboring States, 147, 148 Locks, invention of, 84 ; impediment to navigation, 85 ; attempts to substitute lifts and planes, 86, 87 ; locks on Erie Canal, 85; on Nicaragua Canal, 87, 140 ; on the Hennepin Canal, 124 Load, relation of net to dead on boats and cars, 77 ; of an average train, 78 , of a boat, 78 Manchester Canal, cost underestimated, 15 ; cost per mile, 75 ; its service to commerce, 75 Maritime Canal Company of Nicaragua, 135, 138, 139, 141 Mason, A. T., 142 Mayo-Smith, R., 56 Meitzen, August, 79 ; quoted on taxing the increment in property resulting from the construction of a waterway, 107 Menocal, A. G., description of Nicaragua Canal, 139, 140 ; testifies before Senate Committee, 142 Merchants' Exchange of Buffalo, petition to keep the Erie Canal open, 37 Michaelis, estimate of costs of construct- ing canals in Prussia, 75 Miller, Warner, 137, 138, 142; quoted 145, 146, 153 INDEX. 163 Mississippi River, boats and traffic on, 8; tonnage on. 47; its influence on charges by rail, 57 ; its improvement should have more reference to control of floods, 94 ; its improvement is rightly a State enterprise, 94, 95 ; it is prop- erly a free way, 106 ; the Mississippi River Commission, 122 ; the present work of improvement, 122, 123 Minnesota Canal Company, 13, 130 Missouri River, the Missouri River Com- mission, 123 ; improvements, 123 Morgan, John T., 134, 146 Morrison, quotation from speech in Par- liament, May 17, 1836, 22; resolution introduced in Parliament, 1836, 25; quoted on railway consolidation, 50 Navigation Chambers, proposal to estab- lish them in France, 108 New York Central and Hudson River Railroad, tonnage on, 8 ; earnings per ton mile, 56 ; twenty-hour trains from New York to Chicago, 67, 68 ; expense of moving freight on, 78 Nicaragua Canal, interest in it awakened by the trouble between the United States and Chile, 11 ; conventions in the interest of, 102 ; general discussion of, 133-146; three- fold functions of, 133; it should be controlled by the United States, 133, 134, 137, 139, 141, 143, 145; Pres. Hayes quoted on this point, 134 ; the Clayton-Bulwer Treaty, 135-137; treaty of 1867, 136; proposed treaty oi" 1884, 136 ; the Nicaragua Canal Asso- ciation organized, 137 ; organization of the Nicaragua Canal Construction Company, 137 ; concessions of Nicara- gua and Costa Rica, 138 ; the formation of the Maritime Canal Company, 138 ; beginning of work on Canal, 139 ; route of canal described by Menocal, 139-140 ; estimated cost, 140, 141 ; work done up to January, 1893, 141 ; Senate investi- gation in 1890, and bill of 1891, 141, 142 ; investigation of 1892, 142 ; bill of 1893, 142, 143 ; economy of government sup- port of the enterprise, 144, 145; the influence of the canal on the agricul- tural interests of the Mississippi Valley and Pacific slope, 148 ; the impetus its construction will give trade and com- merce of the United States, 153-155 Nicaragua Canal Association, 137, 138 Nicaragua Canal Construction Company 137, 138, 139, 141 ; passes into receiver's hands, 145, 146 ; probable effect of this, 146 Nord-Ost-See Canal, in process of con- struction by Prussia and the German Empire, 45 ; military purpose of, 11 Ohio River, tonnage, 46, 47 ; the improve- ment of navigation on, 125 ; the coal trade on, 149 Panama Canal, cause of failure, 15 Parliament, The English, legislation to maintain waterways independent of railroads, 24-32 ; futility of such legis- lation, 24 ; report of select committee of 1839, 25 ; power of railway companies over, 25; resolution by Morrison in 1836, 25 ; bill of 1844, 25 ; canal owners allowed to become shippers, 26 ^rail- way commission from 1847 to 1851726"; select committee of 1852, 26 ; bill of 1854, 26. 27; investigation of 1872, 27, 28; bill of 1873, 28 ; the Railway and Canal Traffic Act of 1888, 29-31 ; revision of schedule of rates on railways and waterways, 31 ; operation of law of 1888, 31, 32 Patten, S. N., quoted, 151, 152 Peabody, James, favors pooling, 53 Pennsylvania, Constitution of, Art. XVII, regarding combination of waterways with railroads : quoted, 51 ; article not enforced, 52 Pennsylvania Railroad, tonnage, 8; earn- ings per ton mile, expense of conduct- ing transportation, 77, 78 Peslin, 81 Poe, O. M., on deepening channels of the Great Lakes, 123 Pooling contracts, favored by Interstate Commerce Commission, 53 ; James Pea- body on, 53 ; opposed by Senate Com- mittee, Fifty-second Congress, 54 ; Sen- ate Committee of Fifty-third Congress to investigate, 54 Railroads, their freight compared with that of waterways, 37-47 ; influence of waterways on tariffs of, 48-62 ; differ in character from waterway, 49 ; com- bination the natural law of their man- agement, 49-54 ; Mr. Morrison and Mr. Gladstone on competition among, 49, 50 ; purpose of English legislation con- cerning, 51 ; operation of competition among, 52, 53 ; pooling discussed, 53, 54; waterways the best regulator of their tariffs, 54 ; average freight earn- ings on railroads of United States, 56, compared with rates by water on Great Lakes and Erie Canal, 56, 57 ; operat- ing expenses in United States, 66, in Germany, 66; cost of conducting trans- portation on railroads of United States, 78 Railroads and waterways, complemen- tary character of, 64, 69, 70 ; resolution of the Fourth International Congress on Inland Navigation, 72. Railway Commission of England, from 1847 to 1851, 26 ; commission re-estab- lished in 1878, 28 Reading Railroad, tonnage, 8 ; expense of moving freight on, 78 Regulation of railroad rates, independ- ent waterway best regulator, 54 ; Cul- lom committee on waterways as regu- lators, 57, 58; volume of freight by water may be less than by rail, 58 ; wide extent of the influence of the waterway, 59, 60 ; this extent will in- crease with growth in unity of charges by rail, 59, 60 ; small canals have little influence, 60 ; Van Ornum on water- ways as tariff regulators, 58; water- ways must be independent of railroads, 61 164 ANNALS OF THE AMERICAN ACADEMY., Revenues of railways, influence of waterways on, 63-72; competition of waterways helpful, 61-66 ; this shown by statistics of Main from Frankfort to Mayeuce, 64-66, and by tonnage of railroads near the Great Lakes, 68 River and Harbor Bill, 110-121 ; first ap- propriation for harbors, 111 ; present form of bill, 112 ; the framing of the bill and its contents, 113-115 ; section 7 of bill of 1892 quoted, 113 ; method of executing works, 115 ; our methods compared with those of England France and Germany, 115, 116; our methods criticised, 116-121; lack of unity of effort and plans, 116 : number of works too large, 117 ; log-rolling, 117- 119 ; its cure, 118 ; driblet appropria- tions, 119; these partially abandoned in bills of 1890 and 1892, 119-121 ; the bill has been too harshly criticised, 121 Rhodes, James F., 135 Roberts, Thomas P., 7, 66, 80, 130. Sax, Emil v., 109 St. Paul, proposed canal from Great Lakes to, 95, 149 Schlichting, Julius 45, 81 Seligman, E. R. A., 56 Bering, M., 57, 66 Sherman, John, 135 Squire, Watson C., 148, 151 State railroads, the relation of water- ways to, 70-72 ; this relation in Prussia, 97 ; surplus earnings ought not to go into the State's general budget, 105 ; division of costs Qjf construction in Prussia between central and local governments, 109 Stahl, 39 Supervision of waterways by the State, the necessary extent of, 93 Symphner, cost of freight by canal, 79 ; quoted, 88 Ships, their cost relatively to cars, 78 Standard of life, influence of cheap and rapid transit on, 6, 7, 151, 152, 155, 156 Steamboats, kinds used on rivers, 82 ; use of chain and screw steamers on water- ways, 82 Tennessee River, conditions of naviga- tion, improvements, 126, 127 Tolls, on waterways of France, Italy, Belgium, Holland, England, the United States. New York, Illinois and Ohio, 103 ; their abolition has aided naviga- tion, 104 ; the four principles accord- ing to which tolls may be assessed, 104, 105 ; an undesirable form of taxation, 105 ; the law according to which tolls should be levied, 105 ; the application of the law, 106-109 ; taxing the increment, 107, 108 ; abolition of tolls on all water- ways not necessary, 109 Traction of boats, difliculties in the way of steam traction on canals, 80-82; electric traction, 83; by locomotives, 83 Trade, dependence on transportation, 7 foreign trade of the United States compared with inland navigation, 9 Transportation, importance of the study of, 5, 6 ; social and industrial effects of cheap rates, 6-9, 151, 152, 155, 156 ; eco- nomic effects of cheap transportation, 147-155 Union for the improvement of the canals of the State of New York, centennial convention of 1892, 101 United States, waterways of, See " Water- ways ; " waterways being constructed, 122-129 ; proposed waterways, 129-132 Van der Borght, 46 ; quoted, 69 Van der Sleyden, 81 Van Ornum, John L., quoted on water ways as tariff regulators, 58 Washington, Convention at, to consider project of a larger canal from Great Lakes to the ocean, 101 Waterways, tonnage on Great Lakes, 8, Mississippi River, 8, Hudson River, 8 ; few improvements during several decades, 9; military significance of, 11, 12 ; classification of, 14, 15 ; the way they should be studied, 16-19 ; present condition of English and American, 20-36; this accounted for, 20, 21; strug- gle of English railways with, 22-32, length and ownership of English, 29 ; traffic on English, 31 ; condition of waterways of the United States, 32-36 ; manner of collecting statistics of traffic on, 37, 38; statistics of traffic classified, United States, 38, France, 42; kinds of freight adapted to car- riage on, 38-40; nature of freight on waterways, 40, 41, of France, 41-43, of Germany, 44-46 ; effect of dissimilarity of dimensions in traffic on, 41-43 ; they are public highways, 49; regulators of railroad tariffs, 54-62 ; costs of moving freight on, 77-79 ; interruptions to nav- igation on, 87, 88 ; improvement of by the State and by corporations, 90- 102 ; arguments for private enterprise, 91-93 ; for State construction, 93-99 ; present study of the functions of, 99- 105 ; tolls on, 103-109 ; methods em- ployed by the United States to improve them, 110-121 ; leading waterways of United States, 122-129 ; proposed works, 129-132 ; economic significance to the United States of the extension of, 147- 156. 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