AMEBIC AN SOCIETY OF CIVIL ENQINEERS. 
 
 INSTITUTED 1852. 
 
 TRANSACTIONS. 
 
 INTERNATIONAL ENGINEERING CONGRESS, 
 1904. 
 
 THE CONCURRENT DEVELOPMENT 
 
 OF TRAFFIC ON IMPROVED WATERWAYS 
 
 AND ON RAILROADS. 
 
 Congress Paper No. 30. 
 
 By Edward P. North, M. Am. Soc. C. E., 
 New York City, U. S. A. 
 
 Discussion of the Subject by 
 
 Leo Sympher, Berlin, Germany. 
 
 Lionel B. Wells, Manchester, England. 
 
 Th. Hoech, Kolberg, Germany. 
 
 Edward P. North, New York City, TJ. S. A. 
 
 NoTX.— Figures and Tables in the text are numbered consecutively through the 
 papers and discussions on each subject.
 
 5 
 
 1%^ 
 
 TRANSACTIONS 
 AMERICAN SOCIETY OF CIVIL ENGINEERS. 
 
 J^ INTERNATIONAL ENGINEERING CONGRESS, 
 
 $r 1904. 
 
 Paper No. 30. 
 
 THE CONCURRENT DEVELOPMENT 
 
 OF TRAFFIC ON IMPROVED WATERV^AYS 
 
 AND ON RAILROADS. 
 
 By Edward P. North, M. Am. Soc. C. E., New York City, U. S. A. 
 
 Although there is a general, if not exact, knowledge that the 
 average yield of wheat per acre in the United States (13 bushels) 
 is only about 43% of the yield in the United Kingdom, decidedly 
 less than half the yield of Holland and Belgivim, 61% of the German 
 yield, and 71% of that of France, the assertion is so constantly 
 made that the phenomenal prosperity of this country is due to its 
 superior fertility and unequaled natural advantages, that there is 
 a nearly universal acceptance of this untrustworthy statement as 
 to fertility. The habit of accepting authorities rather than refer- 
 ring to facts has led public opinion nearly as far astray, if we 
 take the output of coal and iron as a standard for productive wealth, 
 as is usual. 
 
 We find on comparing the United States with the United King- 
 dom of Great Britain and Ireland, that, although we surpassed 
 Great Britain in our make of pig iron in 1890, and mined more 
 coal in 1899, having since made more pig iron than both England 
 and Germany, and nearly equaled the product of the world in 1880, 
 
 /^ 54106
 
 476 
 
 TEAFFIC ON WATERWAYS AND RAILROADS. 
 
 our output of iron per capita in 1900 was but 83% of the British, 
 and we mined only 58% as much coal. 
 
 The production of coal and iron in the United States, and in 
 four European countries, both for equal areas and per capita in 
 1900, is set forth in Table 1, in which the area and population 
 of Alaska and our non-contiguous islands have been omitted, and 
 the area, production and population of Luxemburg, are added to 
 those of Germany: 
 
 TABLE 1. 
 Production of Coal and Piq Iron. 
 
 
 Coal Mined. 
 
 Pig Iron Produced. 
 
 
 Tons per 
 square mile. 
 
 Tons 
 per capita. 
 
 Tons per 
 square uUe. 
 
 Pounds 
 per capita. 
 
 United States 
 
 79.56 
 
 1 865.98 
 714. 
 161.24 
 
 2 073.24 
 
 3.17 
 5.49 
 2.65 
 .86 
 3.48 
 
 4.55 
 74.25 
 40.61 
 18.10 
 89.73 
 
 406 
 
 United Kingdom 
 
 489 
 
 Germany 
 
 332 
 
 
 155 
 
 Belgium 
 
 888 
 
 
 
 Here it is seen that our natural advantages are not sufficiently 
 greater than those of our neighbors to explain our superior pros- 
 perity. The possession of a large area of from cheap to free land 
 has undoubtedly been an important factor in our increased popu- 
 lation, and in our aggregate wealth, but the influence of this 
 advantage has been greatly diminished since some time before our 
 development gained such impetus, and our 14% of foreign-born 
 population, arriving as it has lately almost entirely without capital, 
 must have decreased our wealth per capita. Our population and 
 wealth, as ascertained by our Census Bureau, have increased as 
 follows for the years mentioned: 
 
 Population. Aggr^ate Wealth. peT^pita 
 
 1870 38 559 371 $30 068 518 000 $779.83 
 
 1880 50155 783 42 642 000 000 850.20 
 
 1890 62 222 250 65 037 091000 1038.57 
 
 1900 76 303 387 94 300 000 000 1235.86
 
 TRAFFIC ON WATERWAYS AND RAILROADS. 477 
 
 The aggregate wealth has increased in a partially satisfactory 
 ratio, but during the past 30 years the wealth of individuals in 
 this country has been augmented by less than 60 per cent. 
 
 In one great source of national wealth, however, viz.: Cost of 
 transportation, which is not a natural product, the United States 
 has an undisputed advantage over all other countries. Shortly 
 before his death, Mulhall said that the average rate received by 
 railroads of different countries for transporting a ton of freight one 
 mile was, reduced to cents: United Kingdom, 2.80; Italy, 2.50; 
 Russia, 2.40; France, 2.20; Germany, 1.64; Belgium, 1.60; Holland, 
 1.56; United States, 0.8. Acceptance of this statistician's figures 
 as approximately correct, will immediately show that our low cost 
 of internal transportation has probably been the principal cause 
 of our augmented wealth; an augmentation that was greater in 
 the decade ending with 1900 than during the 80 years preceding 
 1870. For not only does a low freight rate allow more to be divided 
 between producer and consumer, but it has a more potent effect in 
 inviting the production of commodities which with higher freight 
 charges could not reach consumers; thus adding greatly to the 
 employment offered to labor and capital. 
 
 Data showing the beneficent effect of low freight rates on pro- 
 duction have not been compiled, and any estimate is as liable to be 
 governed by enthusiasm as by knowledge. But reliance is placed 
 on "Poor's Manual," the United States Census returns, and those 
 of the Bureau of Statistics, in submitting Table 2 as showing 
 the direct contributions made by our railroads to the wealth of 
 the Nation. 
 
 The highest freight rate during this period was, in 1886, 1.067 
 cents, and the lowest, 1899, 0.726; since which time the rate has 
 increased by about 5% to 0.764. 
 
 If our rates had remained as in 1885 we would have paid 
 $3 500 000 000 more for transporting our freight than we did, and 
 if our freight rates had been equal to those of England, as stated 
 by Mulhall, and with as large a volume of business possible at such 
 rates, the cost would have been nearly $33 000 000 000 greater, or 
 more than our increase in wealth during the last decade. There is 
 no doubt that our railroad freight rates are the lowest in the world, 
 and this is probably true also of our coastwise freight rates. Nor
 
 478 
 
 TEArnC ON WATERWAYS AND RAILROADS. 
 
 is there reason to doubt that the low cost of assembling and dis- 
 tributing our commodities has had an important influence on their 
 production and consumption. 
 
 TABLE 2. 
 Railroads of the United States. 
 
 Years. 
 
 1886-89 
 1890-94 
 1895-99 
 1900-02 
 
 ^■2 
 53 2 
 
 596. 
 717.4 
 841.6 
 1 116. 
 
 60.528 
 83.524 6 
 104.. S71 
 148.915 
 
 
 -4 
 
 5 
 
 
 
 CD « 
 
 iS'SS 
 
 gg 
 
 |i 
 
 602.4 
 764. 
 817.2 
 1 125. 
 
 113 
 116 
 124 
 133 
 
 « t. B 
 •w 0,0 
 aj 03 o 
 
 0.995 
 
 0.915 
 0.783 
 0.755 
 
 Note.— Figures in 2d, 3d and 4th columns should be multiplied by 1 000 000. 
 
 It is noticeable that we have reached this distinctive position 
 as transporters with the highest wages paid for labor known, and 
 until lately with a higher cost for materials than our neighbors and 
 competitors. But both the high wages and high prices have, by 
 stimulating production and consumption, added to the volume of 
 freight moved and reduced its cost. 
 
 One influence making for our general prosperity, which should 
 not be lost sight of, is the universal desire for useful development, 
 which, at least avowedly, has governed our financial projects. In 
 1840, the French economist, Michel Chevalier, wrote after a visit 
 to this country: 
 
 "There are certainly wild speculators, blind and desperate 
 gamblers here also; but the objects of their schemes are almost 
 always objects of utility. The spirit of speculation has strewn this 
 country with useful works — canals, railroads, turnpikes, with manu- 
 factories, farms, villages and towns; amongst us it has been more 
 rash, wild and foolish and much less productive in useful results. 
 It is with us mere stock -jobbing." 
 
 A like view was held as late as May 26th, 1899, by The Engineer, 
 which said:
 
 TRAFFIC ON WATERWAYS AND RAILROADS. 479 
 
 "Another phase of the national character has not received half 
 the attention it deserves. Such a man as Hooley is impossible in 
 the United States. * » * The drift of speculation is different. 
 Company mongering as it is practiced here has no existence in the 
 United States. There is plenty of dishonesty and wrong doing, but 
 it is wholly different in kind, and on the whole very much less harm- 
 fuL Nay, indeed, it is very often indirectly beneficial. Thus, for 
 example, the formation of a copper trust leads to the development 
 of new sources of supply, and the ultimate cheapening of the metal." 
 
 While it is possible the last quoted view would not be written 
 to-day, the effect on our freight rates of over 100 years of steady 
 devotion to developing our transportation and production should 
 not be overlooked. And it is possible we are better able to endure 
 some stock-jobbing of the Hooley kind than other peoples. 
 
 Accompanying our general honesty of purpose we have had 
 until lately freedom from those laws based on the theory of vested 
 interests which are used both to prevent improvements and solidify 
 monopolies, while our development has been aided by subsidies of 
 various kinds from both State Governments and the General Govern- 
 ment, to which local aid has often been added. 
 
 Since our organization as a nation we have been pre-eminent for 
 the energy and persistence with which we have developed and im- 
 proved such aid to our wealth as is offered by water transportation. 
 Improvement of the Mohawk west of Schenectady, the precursor of 
 the Erie Canal, commenced with the adoption of our constitution, 
 and concurrently the navigation of many streams falling into the 
 Atlantic was improved and extended. Our canal-building era was 
 virtuaUy inaugurated by the building of the Erie Canal connecting 
 the navigable waters of the Hudson River with all of our Great 
 Lakes under legislation by the State of New York in 1816. The 
 great influence of this canal after its completion in 1825, with its 
 branches, on land values, and its success as a channel for transporta- 
 tion, led not only to more or less successful efforts to connect the 
 James, the Potomac, the Delaware and the lakes above Niagara 
 with the affluents of the Mississippi, and to many less important 
 projects, but also to such an enlargement of the Erie Canal, author- 
 ized in 1835, that the burden of boats could be increased from 
 40 to 240 tons. 
 
 The improvement of rivers, mentioned above, was generally
 
 480 TRAFFIC ON WATEBWAYS AND RAILROADS. 
 
 made by companies operating under State Charters. The canals 
 were generally built directly by the States in which they were 
 situated, but were sometimes aided by National land grants or 
 appropriations of money. Tolls were charged on both rivers and 
 canals, and are still charged on some State Canals. The canals of 
 the State of New York were not made toll free until 1883. Nearly 
 all of these canals assisted materially in the development of the 
 country through which they passed, but as few of them were 
 navigable by boats of over 60 tons burden their value to the public 
 quickly fell after the trains on competing railroads could carry 
 more than the boats. But in their time they added largely to those 
 margins over the cost of living which formed the capital necessary 
 for building the railroads that sui)erseded them. 
 
 The net area of lands granted by Congress to States, Territories 
 and Corporations has been : In aid of railroads, 162 000 000 acres ; 
 in aid of canals, 4 433 000 acres ; in aid of wagon roads, 2 554 700 
 acres ; 168 987 700 acres in all. 
 
 On the 6th of April, 1802, the United States entered on its policy 
 of River and Harbor Improvements with an appropriation of 
 $30 000 for the improvement of the Delaware River. Up to March 
 3d, 1903, the sums appropriated on this account have reached the 
 aggregate of $451 344 907.20. During the 58 years ending with 
 1860 but a little more than $16 500 000, or less than 4% of this sxim, 
 had been appropriated. Taking the appropriations for these 
 improvements by decades we have: 
 
 1861-70 $17 290 445.80 
 
 1871-80 60 440 417.96 
 
 1881-90 Ill 687 724.36 
 
 1891-1900 175 372 564.22 
 
 1901-March 3d, 1903 70 067 231.24 
 
 Approximately 55% of this sum has been expended on the 
 improvement of rivers, 35% on harbors and 10% on canals. Mr. 
 Alfred Noble, in his address as President of the American Society 
 of Civil Engineers, June 9th, 1903, puts the total expenditure by 
 Government for all harbors and waterways on the Lakes above 
 Niagara, as $68 000 000. Of this sum probably a5out $40 000 000 
 has gone to Lake harbors.
 
 TRAFFIC ON WATEEWAYS AND RAILROADS. 481 
 
 Excepting a few instances, and then but for a short time, the 
 rivers, harbors and canals improved and built by our Government 
 have been absolutely free from charges for their use. While a 
 large proportion of the money expended for improvements has gone 
 to important centers, and the main lines of distribution, minor 
 streams and small harbors, have not been neglected, as advised by 
 many who vainly endeavored to direct public opinion. On the 
 contrary, they have secured about their full share of consideration 
 and the country has not been robbed by the city, to the loss of both. 
 
 Although two short roads had been built or commenced before 
 this, our trunk line railroad building was inaugurated consequent on 
 "a meeting of a number of citizens to take into consideration the 
 best means of restoring to the City of Baltimore, that portion 
 of the Western Trade, which has lately been diverted from it by the 
 introduction of Steam Navigation, and by other causes," held in 
 the City of Baltimore, February 12th, 1827. This meeting resulted 
 in a charter for building a railroad from Baltimore to the Ohio 
 River. At substantially the same time, May, 1828, Congress 
 appropriated $1 000 000 in aid of the Chesapeake and Ohio Canal, 
 which was also to connect the waters of Chesapeake Bay with the 
 Ohio. The Hudson and Mohawk Eailroad, which has developed 
 into the New York Central and Hudson River Eailroad, was built 
 to abridge the delay to canal traffic caused by the 22 locks between 
 the Hudson River and the Schenectady level of the Erie Canal. 
 The Boston and Albany was built to divert trade at the Eastern 
 terminue of the Erie Canal from New York to Boston. The South 
 Carolina road was projected to connect the harbor of Charleston, 
 with the Ohio at Cincinnati. 
 
 The first roads were built under special charters, which wore 
 generally obtained without difficulty, except in such cases as the 
 Pennsylvanian's objection to the Baltimore and Ohio reaching 
 Pittsburg, on the no doubt honest plea that there could not be 
 traffic enough for two roads. The menace to invested capital, now 
 so strenuously insisted on, is a doctrine hardly 25 years old with 
 us. Afterwards the more enlightened States passed general railroad 
 laws, under which any persons filing the requisite papers became 
 a body corporate, and could make the necessary surveys, and biiild 
 as much road as they could finance. It is believed that only one
 
 482 TRAFFIC ON AVATERWAYS AND RAILROADS. 
 
 State, New York, ever penalized a railroad. The Utica and 
 Schenectady, now a part of the New York Central and Hudson 
 Uiver Railroad, was for a time prohibited from carrying freight, 
 ■whether the canal was closed by ice or not, and the railroads which 
 "formed that system paid canal tolls to the State on all freight 
 -carried until 1851. 
 
 The Government of the TTnited States gave a great impetus 
 to railroad building by its legislation of September 20th, 1850, 
 giving to a trunk line railroad between Lake Michigan and the 
 Gulf of Mexico, substantially, six square miles of land for each 
 linear mile built. This aid was so continued that every State and 
 Territory west of the Mississippi and five States east of it, viz., 
 Alabama, Illinois, Mississippi, Michigan and "Wisconsin, are in- 
 debted to land grants, in a greater or less degree, for their trans- 
 portation facilities. In aid of the Texas Pacific the land grant was 
 40 square miles, through the Territories, per mile of road. The 
 Union and Central Pacific Railroads, with some of their branches, 
 in addition to a land grant of 20 square miles per mile of road, 
 amounting to nearly 32 000 000 acres, secured a loan of Government 
 6% 30-year bonds, varying with the difiiculty of construction from 
 $16 000 and $32 000 to $48 000 per mile. This loan was in the 
 aggregate $62 652 952, of which the Union Pacific received 
 $27 236172 and the Central Pacific received $25 885120. These 
 loans were repaid with outstanding interest in or about 1898, 
 excepting a small default on the part of one of the branch roads. 
 This combined aid was sufficient to induce the Union Pacific to build 
 535 miles in one year and 20 days. 
 
 The accompanying diagrams. Figs. 1 and 2, made by F. W. 
 Hewes, Esq., for Scribner's, "The American Railway," show the 
 development of our railroads in 1850 with the influence of land 
 grants in 1860 and 1870, the year after the first Pacific Railroad 
 was completed. The direct and indirect influence of land and 
 credit subsidies can be plainly seen by comparing these diagrams 
 with a railroad map of to-day. They have probably hurried the 
 settlement of the West by fully 20 years. But the fact that the 
 Homestead law was passed in 1862 should not be overlooked in this 
 connection. 
 
 The British Government, according to the report of a "Com-
 
 TRAFFIC ON WATERWAYS AND RAILROADS. 483 
 
 mittee on Contract Packets" made in 1863, subsidized its main 
 lines of steamers "to afford a rapid, frequent and punctual com- 
 munication with those distant ports which feed the main arteries 
 of British commerce, etc."; refusing aid to, if not oppressing, 
 internal communication. On the other hand, the Government of 
 the United States, and also individual States, coimties and localities, 
 subsidized its turnpikes, watercourses and railroads almost entirely 
 for the improvement of internal communications, and neglected 
 or oppressed our efforts to reach distant ports. England is pre-emi- 
 nent as a ship building and ship sailing country, but its people 
 pay the highest internal freight rates known. America now has 
 a contemptible merchant marine, but its internal freight is handled 
 at a rate unapproached in other countries. If, as has been lately 
 urged, our Government was unable to develop at one time both 
 foreign and internal communications, it has apparently adopted the 
 most profitable alternative, though our annual payments to 
 foreigners for over-sea freights are said to exceed the receipts from 
 either Custom dues or the Internal Revenue tax. 
 
 While the land subsidies granted by our Government in aid 
 of turnpikes, canals, colleges, etc., have not generally hurried the 
 lands granted into cultivation, it is noticeable that in the case of 
 land granted to railroads the recipients have had a financial interest, 
 strong enough to be a governing interest, in its quick distribution 
 in small holdings, as the possible ultimate value of the land is 
 secondary to the development of traffic on the road. And the Immi- 
 gration Bureau is greatly aided in its efforts by low freight rates. 
 As the cost of transportation is vital in the eyes of the prospective 
 buyer, its cost has been kept down on non-competitive branches. 
 The beneficent results following the practices of the land-grant 
 aided raib-oads have not, however, prevented the "friends of the 
 plain people" exhibiting fierce opposition to the development of our 
 unsettled areas through the aid of land grants or other forms of 
 subsidies. 
 
 Under the combined influences of local. State and National 
 encouragement with the competition from watercourses which were 
 being increased in capacity, the mileage of our railroads has 
 increased as given in Table 3, to which is added the population 
 per mile, and the total of our foreign commerce in merchandise for 
 the years mentioned :
 
 484 
 
 TRAFFIC ON WATERWAYS AND RAILROADS. 

 
 TRAFFIC ON WATERWAYS AND RAILROADS. 
 
 485
 
 486 TRAFFIC ON WATEEWAYS AND EAILEOADS. 
 
 TABLE 3. 
 
 
 Total 
 mileage. 
 
 Bunt 
 per decade. 
 
 Inhabitants 
 
 per mile of 
 
 railroad. 
 
 Foreign 
 
 commerce, 
 
 excluding gold 
 
 and Sliver. 
 
 1830 
 
 23 
 
 2 818 
 9 021 
 30 626 
 52 922 
 93 282 
 166 664 
 175 170 
 194 334 
 203 132 
 
 ■2795 
 6 203 
 
 21 605 
 
 22 296 
 40 340 
 73 892 
 
 27'686 
 8 798 
 
 560 000 
 6 057 
 2 571 
 1 027 
 729 
 538 
 375.7 
 371.0 
 389.5 
 389.0 
 
 $134 391 691 
 
 1840 
 
 221 927 688 
 
 1850 
 
 317 885 252 
 
 1860 
 
 687 192 176 
 
 1870 
 
 828 730 176 
 
 1880 
 
 1 503 593 404 
 
 1890 
 
 1 647 139 093 
 
 1892 
 
 
 1900 
 
 2 244 424 266 
 
 1903 
 
 2 445 860 916 
 
 
 
 The niunber of inhabitants per mile of road is interpolated for 
 1892, when it was at the minimum; since that date the number has 
 increased by almost 5 per cent. In the six years including 1893 
 and '98, only 11 640 miles were built or about 26.5% of the average 
 yearly building in the preceding decade. This decreased building 
 was partly due to a well known loss of commercial confidence during 
 the years mentioned, and possibly to a rumored imderstanding 
 between financiers interested in railroads, that no more competing 
 lines should be encouraged. This understanding was arrived at 
 before 1890, and the fact that in the six years above mentioned 
 46 646 miles of railroad were sold under foreclosure proceedings, 
 will probably for some time aid in curtailing the extension of rail- 
 roads in this country. 
 
 The free development of railroad building and the fall in freight 
 rates have also been impeded by the action of State Railroad Com- 
 missions. The first of these, for the State of Maine, was appointed 
 in 1853. There are now 34 of them. At first their action was 
 doubtless beneficent, but in some States the appointment of com- 
 missioners seems a perquisite of the railroads, and, as notably in 
 the State of New York, it seems virtually impossible for an oppressed 
 community to secure better accommodations or lower rates by 
 investing their own money in a raiboad which may reduce the 
 profits of an existing line. All such efforts being apparently held 
 by the commissioners, as well as the stockholders of existing lines, 
 to be a piratical venture and a speculative strike of more or less 
 colossal magnitude.
 
 TRAFFIC ON WATERWAYS AND RAILROADS. 
 
 487 
 
 The value of our Railroad Commissions generally to vested 
 interests, may be partly judged from the subjoined table showing 
 the density of traffic, freight rates, etc., for 1900 in the 8 groups 
 into which "Poor's Manual" divides our railroads. 
 
 TABLE 4. 
 
 •• 
 
 w r 
 
 t-i 
 
 'ii 
 
 •6 
 
 p 
 
 :2 
 
 M 
 ©■ 
 
 A 
 
 o 
 
 d 
 
 H 
 
 d 
 
 a 
 
 i 
 
 si* 
 
 H 
 
 M 
 
 ■3.H 
 
 Hi 
 
 1^ 
 
 Groups: 
 No. of States 
 
 T. 
 
 II. 
 
 III. 
 
 IV. 
 
 V. 
 
 VI. 
 
 VII. 
 
 VIII. 
 
 
 
 
 
 
 
 
 
 with commis- 
 
 
 
 
 
 
 
 
 
 sions 
 
 6 
 
 66 465 
 5 592 017 
 
 1 
 
 116 530 
 IT 100 17-) 
 
 4 
 
 2*9 015 
 15 985 581 
 
 5 
 
 268 205 
 8 791983 
 
 5 
 
 230230 
 8 929 832 
 
 5 
 
 768 060 
 10 462 835 
 
 5 
 
 609 315 
 6106128 
 
 3 
 
 Area 
 
 717 060 
 
 Population 
 
 Miles of R. R 
 
 8 020 479 
 
 7 501 
 
 22 385 
 
 41 138 
 
 21917 
 
 16 211 
 
 37 530 
 
 32165 
 
 15 486 
 
 Tons per mile of 
 
 
 
 
 
 
 
 
 
 R. R 
 
 6980 
 1.16 
 
 17 951 
 0.61 
 
 5 521 
 0.69 
 
 2 879 
 0.69 
 
 4167 
 0.83 
 
 1936 
 1.00 
 
 2628 
 0.95 
 
 1 791 
 
 Ton-mile rate 
 
 0.97 
 
 Population per 
 mile of R. R.... 
 
 
 
 
 
 
 
 
 715.3 
 
 764.2 
 
 388.6 
 
 401.1 
 
 550.8 
 
 278.8 
 
 289.8 
 
 195.0 
 
 Square miles per 
 
 
 
 
 
 
 
 
 
 mlleof K. R.... 
 
 &86 
 
 5.21 
 
 6.05 
 
 12.24 
 
 1420 
 
 20.47 
 
 18.94 
 
 46.30 
 
 This table is not submitted as conclusive, but it may be noticed 
 that the railroads of New England, dominated by the most respect- 
 able and highly appreciated Commission, exact the most onerous 
 charges on traffic known in this country, and have driven nearly 
 all heavy manufacturing out of their territory. 
 
 The Interstate Commerce Commission is directed by the General 
 Government to take cognizance of discriminations and combina- 
 tions in restraint of transportation as administered for the general 
 good, but it is not empowered to encourage railroad building as a 
 remedy for injustice. In fact, the Government of the United States 
 has no right of eminent domain in any State of the Union, and 
 as it has alienated nearly all its land, cannot encourage railroad 
 building outside of the Territories.* 
 
 Note. —The author is indebted to Mr. Brooks Adams for the following correction: 
 "The United States Hovernment has plenary powers over interstate commerce, and 
 may. therefore, build any roads it likes, provided they are interstate; may charter cor- 
 porations; may take State roads, and may police them."
 
 488 TRAFFIC ON WATERWAYS AND RAILROADS. 
 
 A considerable percentage of the 451 million dollars appropri- 
 ated by the General Government for the improvement of rivers and 
 harbors, has been expended on isolated or semi-isolated projects, 
 where the statistics covering the consequent development of traffic 
 are not available without great research. In other cases like the 
 18 500 000 net tons of freight traffic found 12 years ago on the 
 Hudson River, or the 11 610 000 tons of freight carried on 11 
 improved tributaries of the Ohio in 1902, as reported by the Depart- 
 ment of Commerce and Labor, no idea of the cost of freightage is 
 given. Nor are the rates charged on the total traffic of the Great 
 Lakes given in the report of the same Department, which gives the 
 average arrivals and departures in domestic trade for the two years 
 1902-03 for which statistics have been gathered as 74 390 000 and 
 74 340 000 net tons of f reiglit. During the same two years the 
 average imports of foreign merchandise at these Lake ports have 
 been valued at $61 187 000 and the exports at $88 076 000. 
 
 As the natural depth at most harbors on the Great Lakes was 
 about 6 ft., and not more than 8 ft. could be carried over the St. 
 Clair Flats, above Detroit, this large traffic would be impossible 
 without the increased depths made by the expenditures authorized 
 by the various River and Harbor bills. The first appropriation, 
 1823, was for the harbor of Erie. Ohio followed in 1825 with appro- 
 priations for Cleveland and Fairport. Buffalo did not get an appro- 
 priation from the General Government until 1826; Chicago in 
 1833, and the St. Clair Flats received its first appropriation, $20 000, 
 in 1852. 
 
 In the last mentioned year, Congress gave the State of Michigan 
 750 000 acres of public land in aid of a canal connecting Lake 
 Superior with Michigan, Huron and Erie. This canal, built for 
 the State by an incorporated company to which the land was trans- 
 ferred, was opened June 18th, 1855, with two locks of 9 ft. lift, each 
 350 by 70 by Hi to 12 ft., to overcome the 18 ft. difference of level 
 at the Falls of St. Mary, or, as it is generally known, the "Soo." 
 The General Government took over this canal from the State of 
 Michigan, June 9th, 1881, and completed the "Weitzel" lock, 515 by 
 80 by 17 ft., September 1st, 1881, and the "Poe" lock, 800 by 100 by 22 
 ft., August 3d, 1896. The Canadian Government had in the mean- 
 time built a lock 900 by 60 by 22 ft., opened September 9th, 1895.
 
 TRAFFIC ON WATERWAYS AND RAILROADS. 
 
 489 
 
 These figures are from the "Statistical Eeport on Lake Commerce," 
 1903. The depths of Lake channels, in general, have been less than 
 the depths on the lock sills. Tolls amounting to $778 128.41 were 
 collected on the 19 414 242 net registered tons of shipping passing 
 through the canal in the 26 years, including 1880, that the canal 
 remained State property. They were 6 cents per net registered ton 
 until 1871, 4i cents until 1879, and after that 3 cents. Since 1880 
 the traffic through both the American and Canadian locks has 
 been free. 
 
 We are fortunate in having the net tonnage passing through the 
 canal from its opening, and since 1887 the IT. S. Engineers in 
 charge of the canal, with the co-operation of those in charge of the 
 Canadian Canal, have kept and published statistics which are among 
 the most valuable in the history of transportation. From these data 
 Tables 5, 6 and 7 have been compiled. 
 
 TABLE 5.— Freight Tons Passing the Sod. 
 
 Year. 
 
 Tons. 
 
 Total Value. 
 
 Value 
 per Ton. 
 
 1851.... 
 
 12 600 
 
 88 000 
 
 585 000 
 
 1568 000 
 
 8889 000 
 
 2S 403 065 
 
 34 674 487 
 
 $1 675 000 
 
 6000 000 
 
 13 000 000 
 
 30 000 000 
 
 128 000 000 
 
 289 916 865 
 
 349 405 014 
 
 $183.00 
 68.00 
 22.00 
 19.00 
 14.50 
 10.80 
 10.08 
 
 1861 
 
 1871 
 
 1881 ;;!.■.■;■■■■ 
 
 1891 
 
 1901 
 
 1908 
 
 
 T^BLE 6.— Net Eegistered Tonnage Passing the Locks at 
 Sault Ste. Marie (The Soo). 
 
 Year. 
 
 Tonnage. 
 
 Year. 
 
 Tonnage. 
 
 Year. 
 
 1876 
 
 Tonnage. 
 
 f 
 Year. 
 
 Tonnage. 
 
 Year. 
 
 Tonnage. 
 
 1856 
 
 106 296 
 
 1865 
 
 409 062 
 
 1259 534 
 
 ! 1886 
 
 3 086 937 
 
 1896 
 
 16 806 781 
 
 1866 
 
 101 458 
 
 1866 
 
 458 680 
 
 1S?6 
 
 1 541 676 
 
 1886 
 
 4 219 897 
 
 1896 
 
 17 249 418 
 
 1867 
 
 180 820 
 
 1867 
 
 556 899 
 
 1877 
 
 1489 216 
 
 1887 
 
 4 897 698 
 
 1897 
 
 17 619 988 
 
 1858 
 
 219819 
 
 1868 
 
 482 563 
 
 1878 
 
 1667136 
 
 1888 
 
 5 130 659 
 
 1898 
 
 18 622 7.')4 
 
 1859 
 
 858 642 
 
 1869 
 
 624 885 
 
 1879 
 
 1677 071 
 
 1889 
 
 7 221936 
 
 1899 
 
 21 9.'i8 847 
 
 1860 
 
 403 657 
 
 1870 
 
 690 826 
 
 1880 
 
 1734 890 
 
 1890 
 
 8 454 486 
 
 1900 
 
 82 316 884 
 
 1861 
 
 276 689 
 
 1871 
 
 752 101 
 
 1881 
 
 2 092 767 
 
 1891 
 
 8 400 686 
 
 1901 
 
 24 626 976 
 
 1862 
 
 859 612 
 
 1872 
 
 914 735 
 
 1882 
 
 2468 088 
 
 1898 
 
 10 647 208 
 
 1902 
 
 31955 582 
 
 1868 
 
 507 434 
 
 1878 
 
 1204 446 
 
 1883 
 
 2 042 259 
 
 1898 
 
 8 949 754 
 
 1908 
 
 87 786 444 
 
 1864 
 
 671488 
 
 1874 
 
 1070 867 
 
 1884 
 
 8997 887 
 
 1894 
 
 18110 366 
 

 
 490 
 
 TRAFFIC ON WATERWAYS AND R.ULROADS. 
 
 i 
 
 
 
 W"fr^*i "-^s 
 
 :g2 
 
 ^2 
 
 SS»— o^vico Mc 
 
 ^§S3 
 
 >C5— to 
 
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 OS5 s 3d 
 to CJt &3 c: 
 
 00 02 
 
 
 IXCC-l*- l^CSI-'CT 
 
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 :cots;=ts «.£C;S30 
 
 >i&ooot& cn<{'ts>E> 
 
 iiik isgtg 
 
 SSSc 
 
 5(xacoDOO -Q-^acoo ^ 
 
 
 OCSoSiE. l-i>Ui:05 *»O!0S^ -^QC-IO 
 
 3 X -^ lO --S 
 
 iS:x3 
 
 S.f' 
 
 p o 
 
 O O O ^ 1-1 o o o 
 
 V'?D':^coio ccot'ctco 5 5 
 
 5£g 
 
 1^ 
 
 -" 2 „ 
 
 2^2.* 
 
 
 ciH-x xei^o 
 
 JXCCO'*^ C503w 
 
 
 Ml 
 
 KK«S xSS3 otEESsS Soox-j 
 
 tsxo-^ ^^ (a CD VI «cocnv<x SiStstD 
 
 525i_i *.«oeio viit^Ci~ix *.»oe5 — 
 
 A-oStO OO-^tO COJ4<l-l® X-55D-1 
 
 
 OeCOO '-'O'-'lO OOCONlit^ '— — toco 
 
 
 -JMXtO -J_OS05C5 _X_-jpX-J 50_0_50W M 
 
 ^ » 2 
 5S*
 
 TRAFFIC ON" WATERWAYS AND RAILROADS. 491 
 
 The values given in Tables 5 and 7 are values on the docks at 
 points of delivery, and the freight rates include loading and 
 unloading. Exact value is not claimed for either the several 
 items, or the total, of Column 8 in Table 7. For water-borne 
 freight is always of a lower average classification than railroad 
 freight. But as during the 16 years, ending with 1902, that the 
 Engineer Officers of our army have kept reliable statistics of the 
 traffic through the "Soo," the difference on an equal classification 
 between the actual and railroad charges is nearly four times the 
 total expenditures for River and Harbor improvements by the 
 Government, it is not necessary to be rigorously exact to show that 
 the expenditures authorized were reproductive expenditures. Mr. 
 Noble, in the paper above quoted, says of the traffic of 1902, which 
 he compares with a charge by rail of only 3 mills per ton-mile : "This 
 amount of saving on Lake Superior commerce alone, during a single 
 year, is within $5 000 000 of the entire amount appropriated by the 
 United States for all harbors and waterways on the Lakes above 
 Niagara Falls from the formation of the Government; if the com- 
 merce between Lake Michigan and Lake Erie be included, the 
 annual saving greatly exceeds the amount thus appropriated." - 
 
 As only 41^ of the 958J statute miles between Duluth and 
 Buffalo have required improvement to accommodate vessels of 
 20-ft. draft, and the same improvement has sufficed for the 885 
 miles between Chicago and Buffalo, the combined traffic on these 
 routes being without an eqi;al in any other channel, no other im- 
 provement undertaken by our Government has had so beneficent an 
 effect on our national wealth, nor, it is possible, has returned so 
 large a dividend on the mbney expended. But many instances have 
 been mentioned in our local papers where the savings on increased 
 freightage have returned from 30 to 60% for the year on the cost 
 of the improvement. 
 
 In consequence of repeated comparisons like that of Mr. Noble, 
 the first of which it is thought appeared in 1890, neither those so 
 educated that they can see no significance in the inverse relation 
 between the value per unit and the volume of Lake freight, nor 
 any advocate of supposed railroad interests, can any longer secure 
 respectful auditors to the phrase, "River and Harbor Steal," which
 
 492 TRAFFIC OX WATERWAYS AND RAILROADS. 
 
 for many years was applied to Congressional effort to increase the 
 national wealtli by decreasing the cost of internal transportation, 
 and the claim by obstructionists that any appreciable percentage of 
 the River and Harbor appropriations is non-productive and wasted, 
 no longer receives consideration. 
 
 It is not proposed to refer to the economies, many of them 
 calling for large expenditures, by means of which our railroads have 
 become the chief of the labor saving appliances, not only of this 
 country but of the world. But aside from the influence of our, 
 one time, free railroad building, these economies have in almost 
 all instances been forced on our railroad managers by the com- 
 petition of improved waterways; which while their traffic fed, and 
 was fed by, the railroads, cut rates to an extent that called out 
 high intellectual effort in the attempt to compete on a paying basis. 
 This competition has resulted in our being able to produce and 
 ship a third more freight per capita, despite oiir longer haul, than 
 any other people, and has filled our country with consumers, who, 
 as James Bryce says in his "American Commonwealth," "allow 
 themselves luxuries such ac the masses enjoy in no other country." 
 And the traffic in luxuries as well as in passengers is generally 
 transported by rail. 
 
 There has been one noticeable instance in which the railroads led 
 in improvements to waterways, forcing the deepening of the Lake 
 channels. This was a consequence of the rate wars of the Seventies, 
 which covered much of the United States, but was most intense 
 between the roads connecting Chicago with New York. Under 
 this rivalry the Lake commerce seemed to be dying. The situation 
 at that time is tersely and ably described in the "Report of the 
 Committee on Canals of New York State, 1899," made to then 
 Governor, now President, Roosevelt. It says: 
 
 "In 18Y5 the total tonnage on the lakes was nearly 600 000 tons. 
 * * * The traffic, as estimated by entrances and clearances at 
 American ports, was for that year about 15 000 000 tons. 
 
 "This development had, however, been secured without any 
 material increase in the size of the vessels in use — a limit being 
 placed on size by the depth of water in the harbors and in the 
 channels connecting Lake Erie and Lake Superior with Lake Huron- 
 Michigan. By 1875 the advance in railroad construction and manage-
 
 TRAFFIC ON AVATERWAYS AND RAILROADS. 493 
 
 ment had reached a point which enabled the raiboads to compete 
 wi.h the lake vessels; and when to this was added the railroad rate 
 wars of the next few years there was not only a cessation of increase 
 in lake commerce, but a positive decline both in equipment and 
 traiBc. New construction of vessels, which had reached as high as 
 73 000 tons in 1S74, was only 7 000 tons in 1877, and averaged only 
 13 000 tons a year for the five years ending in 1880. In the latter 
 year all the vessels on the lakes aggregated only 560 000 tons, 30 000 
 less than five years before. 
 
 "The beginning of the new decade marked a significant revival 
 in lake commerce, which cannot be disconnected from the improve- 
 ments in lake harbors and channels undertaken by the national 
 goyeniment. The most important work brought to completion at 
 this time was the opening of the ship canal with an 18-ft. draft, 
 which took the place of the 10-ft.* canal and locks maintained by the. 
 State of Michigan at Sault Ste. Marie, but other works were well 
 under way, which have had for their ultimate aim the securing 
 of 20 ft. of water in all the main channels and important harbors 
 on the lakes." 
 
 If the existence of the Lake business aa well as the Lake marine, 
 had not been threatened by the development of improved methods 
 of conducting railroad traffic, it may be doubted if Government 
 would have received sufficient support to justify it in entering on 
 the heavy expenditures necessary for navigable channels 18 and 
 eventually 20 ft. in depth. There is always available such testi- 
 mony as was given in 1870, by one prominent in Lake commerce: 
 
 "It had been clearly established that vessels of over 700 or 800 
 tons were not so profitable on the Lakes as vessels of a smaller size. 
 Nature has placed barriers in front of most of our harbors, also 
 wide flats across some of our greatest thoroughfares, that will, in 
 spite of art, for ages to come, make it necessary to build lighter- 
 draft vessels. Sail vessels of over 800 tons could not safely navigate 
 the lakes even if harbors were deep enough." 
 
 Such testimony, by an authority, is always available and influ- 
 ential in procuring delay and insufficient improvements unless there 
 is a strong interest capable of organization to confute it. And as 
 the nearly accomplished improvement has resulted in 19 vessels, 
 carrying over 8 000 net tons each, passing the Soo last year, the testi- 
 mony seems confuted. 
 
 The United States possesses no noticeable superiority in natural 
 resources, and is handicapped by the necessity of finding money 
 • An evident misprint for 11 J4 to 12 ft.
 
 494 TRAFFIC ON WATERWAYS AND RAILROADS. 
 
 to do in a part of a century that for which other countries have 
 taken nearly a thousand years. It has in the aggregate exhibited 
 a superiority in general honesty of purpose and in the broad- 
 mindedness of its legislators, both national and locaL It is largely 
 through legislation, notably and peculiarly in its help to all 
 schemes for increasing wealth by diminishing the cost of inter- 
 change between producers and consumers, that this country has 
 attained its superiority. From the fairly equal distribution of 
 subsidies and direct payments between waterways and railroads, 
 there has issued a system of mutually beneficent rivalry, in that the 
 railroads often own boat lines and the boat lines have owned rail- 
 roads, which has given a higher remuneration to the producer, and 
 a lower cost to the consumer, than would have been possible under 
 any other system. 
 
 As a resultant our internal commerce for 1902 is estimated 
 at $20 000 000 000. These figures are given by our Bureau of 
 Statistics : 
 
 "It is estimated that the internal commerce of the United States 
 now annually amounts in value to at least $20 000 000 000. This 
 estimate is based on one transaction in each of the leading classes of 
 commodities produced in the several different divisions of national 
 industry. On the basis of the figures of the Twelfth Census the 
 products of agriculture are valued at nearly $4 000 000 000 ; manu- 
 factures, $13 000 000 000; minerals, $1000 000 000. To these the 
 products of the forests, of fisheries, and other minor forms of in- 
 dustry should be added at a valuation of certainly not less than 
 $3 000 000 000. Including also the growth of commerce since 1900, 
 there can be no doubt as to the aggregate for 1902 being fully 
 $20 000 000 000." 
 
 Our foreign commerce amounts to nearly 12% of this sum, and 
 6.8% of it suffices to settle our foreign balances, and pay for our 
 foreign transportation with such luxuries and raw materials as 
 we require from other countries. 
 
 Exclusive of the benefits derived from land grants, there seems to 
 be no reason why any other country should not develop its transporta- 
 tion systems in a manner analogous to that pursued by the United 
 States and reap as substantial a reward.
 
 TRANSACTIONS 
 AMERICAN SOCIETY OF CIVIL ENGINEERS. 
 
 INTERNATIONAL ENGINEERING CONGRESS, 
 1904. 
 
 DISCUSSION ON 
 
 THE CONCURRENT DEVELOPMENT 
 
 OF TRAFFIC ON IMPROVED WATERWAYS 
 
 AND ON RAILROADS. 
 
 By Messrs. Leo Sympher, Lionel B. Wells, Th. Hoech and 
 Edv^ard p. North. 
 
 Leo Sympher, Esq., Berlin, Germany.* (By letter.)— As a con- Mr. Sympher. 
 sequence of the canalization of the Main, the coal tonnage of the 
 railroad from the Ruhr District to Frankfort dropped from 77 000 
 to 40 000 tons in 1886. The first year in which the whole canal was 
 opened to service was 1887. In 1888, the tonnage rose to 41000 
 tons, but since that time it has again nearly reached the old figure. 
 Inasmuch as a large part of the coal tonnage is now sent to Frank- 
 fort before being reloaded to the railroads, the railroad tonnage for 
 other parts of South Germany has been affected. No large falling 
 off in the transportation of coal by rail between the Ruhr District 
 and South Germany, however, has taken place since the opening of 
 the canal; on the contrary, if we except 1888 and 1889, there has 
 been a steady increase. Despite the fact that the railroad coal 
 tonnage of Frankfort has fallen off, the total freight tonnage of the 
 railroads has increased from 911000 to 1909 000 tons in the 16 
 years since the opening of the canal. A large proportion of this in- 
 crease, however, should be credited to those classes of freight that 
 call for reloading from canal-boat to train or vice versa. This does 
 
 ♦ Oeheimer Baurat.
 
 496 DISCUSSION ON WATERWAYS AND EAILEOADS. 
 
 Mr. Sjrmpher. not necessarily mean an increase of income for the railroads, in 
 fact, for some cases, it indicates a loss. Deducting the freight ton- 
 nage due to reloading, we still have an increase from 896 000 tons 
 in 1886 to 1 234 000 tons in 1902. Taking the total freight moved 
 through Frankfort, less the coal and reloaded tonnage, we have an 
 increase from 661000 tons in 1886 to 974 000 tons in 1902, or 
 47 per cent. 
 
 At no time since the Main Canal was opened for operation has 
 the railroad freight tonnage been less than it was before. It is only 
 when we deduct the reloaded tonnage that we find a loss of 110 000 
 tons, or about 12% of the total freight tonnage in the second year 
 of operation. On the other hand, we have a great increase in the 
 canal tonnage. This, in 1886, amounted to 156 000 tons, of which 
 12 000 tons are credited to the Lower Main, which had been opened 
 in the autumn; in 1902 the tonnage amounted to 1273 000 tons, of 
 which 1 116 000 tons should be credited to the lower part of the 
 Main. In the canalized part of the Main we have, therefore, the 
 same result as has been found in other canals and canalized rivers, 
 i. e., the coal traffic, that is to say, the principal freight, is largely 
 diverted from the railroads to the canals. On the other hand, all 
 other classes of freight show so great an increase that there is no 
 diminution of freight receipts on the railroad. 
 
 The railroad freight of the City of Frankfort has increased from 
 911 000 tons in 1886 to 1 909 000 tons in 1902; the reloaded freight 
 has increased from 15 000 tons in 1886 to 675 000 tons in 1902^ and 
 the net actual local freight has increased from 896 000 tons in 1886 
 to 1 234 000 tons in 1902. Government freight is not included in 
 the above. 
 
 The reloaded freight has shown a steady increase from 1886 to 
 1902. The local freight showed a small loss for two years, viz.^ from 
 896 000 tons in 1886 to 786 000 tons in 1887 and 895 000 tons in 
 1888; since that time there has been a constant increase up to 
 1 234 000 tons in 1902. The water freight of Frankfort has shown 
 a proportionately larger increase. In 1886 it amounted to 156 000 
 tons, and in 1902 had risen to 1 273 000 tons. Deduct from this 
 figure the freight on the Upper Main, which was not improved by 
 canalization, and there remains for the Main Canal 12 000 tons for 
 1886, as against 1 116 000 tons for 1902. 
 
 The Harbor of Frankfort has diverted from its rival, the harbor 
 at the junction of the Main and Rhine Rivers, at least 75% of the 
 freight reloaded for Hesse, Bavaria and Austria. Nearly all this 
 loss fell on Gustavsburg, which did not recover until 1893, or, in 
 other words, received a setback in its development for seven years. 
 
 The amount of coal received by rail from the Ruhr District at 
 Frankfort was as follows :
 
 DISCUSSION ON WATERWAYS AND RAILROADS. 497 
 
 1886 77 340 tons. Mr, Sympher. 
 
 1887 36 640 " 
 
 1888 35 800 " 
 
 1901 89 810 " 
 
 1902 56 970 " 
 
 The amount of reloaded freight in coal was as follows: 
 
 1886 37 340 tons. 
 
 1887 71 430 " 
 
 1888 119 380 " 
 
 1901 233 980 " 
 
 1902 243 110 " 
 
 The total amount of coal shipped from the Ruhr District to 
 South Germany was as follows : 
 
 1886 1 027 600 tons. 
 
 1887 1 081 170 " 
 
 1888 974 690 " 
 
 1889 1 006 650 " 
 
 1890 1 311 280 " 
 
 1901 1 805 280 " 
 
 1902 1 578 680 " 
 
 The amount of freight passing through the Main at its junction 
 with the Rhine (lock at Kostheim) was as follows : 
 
 Year. Boat freight. Lumber rafts. Total. 
 
 1877 494 000 tons. 192 000 tons. 686 000 tons. 
 
 1888 724 000 " 140 000 " 864 000 " 
 
 1889 784 000 " 155 000 " 939 000 " 
 
 1890 928 000 " 201000 " 1129 000 " 
 
 1891 835 000 " 162 000 " 997 000 " 
 
 1892 1011000 " 194 000 " 1205 000 " 
 
 1893 1045 000 " 165 000 " 1210 000 " 
 
 1894 1249 000 " 150 000 " 1399 000 " 
 
 1895 1071000 " 180 000 " 1251000 " 
 
 1896 1 529 000 " 225 000 " 1 754 000 " 
 
 1897 1340 000 " 251000 " 1591000 " 
 
 1898 1634 000 " 270 000 " 1904 000 " 
 
 1899 1620 000 " 317 000 " 1937 000 " 
 
 1900 2 033 000 " 294 000 " 2 327 000 " 
 
 1901 1860 000 " 273 000 " 2133 000 " 
 
 1902 1924 000 " 218 000 " 2142 000 " 
 
 1903 2 462 000 " 295 000 " 2 757 000 " 
 
 By the statistics of the Chamber of Commerce, it is shown that, 
 while there was a falling off in certain classes of railroad freight.
 
 ^98 DISCUSSION ox WATERWAYS AND RAILROADS. 
 
 Mr. Sympher. coal in particular, the railroads show absolutely no loss in total 
 freight tonnage at any time; in fact, a very constant increase can 
 be proven. At the same time, the new waterway has greatly aided 
 the commercial development. 
 
 In consequence of the ease of obtaining water and for the dis- 
 posal of sewage, etc., the banks of the Main River have been used 
 for a long time by various industries, particularly by chemical and 
 dye works. The use of the river for freight transportation was ren- 
 dered impossible by reason of the rapid fluctuations in the rate of 
 flow, the poor condition of the channel and the difficulty of provid- 
 ing proper landings. In 1886 the canalization of the Main was 
 completed, and the effect of the same on the various industries was 
 very marked.^ This is proven by a comparison of the freight tonnage 
 of the different classes of manufactures, etc., for 1886 (immediately 
 before the canal was put in service) with those for 1902. The fol- 
 lowing table shows this in detail: 
 
 Total Traffic, in Tons. 
 1902. 1886. 
 
 Class 1 Group Vc 1 Tube Works 13 550 
 
 " Via 1 Machine Works 1584 180 
 
 Total 15 134 180 
 
 " 2 " IVb 2 Lime Works 90150 16 900 
 
 " 5 " XXa 3 Railroad Traffic... 2 628 400 1073 000 
 « XXb 2 Canal " ....1207 800 23 896 
 
 Total 3 836 200 1096 896 
 
 « 6 " Vllb Chemical Works... 13 000 
 
 (1887) 
 
 " Vlld Dye Works 414 100 155 000 
 
 " Vile 1 Chemical Factories. 303 810 95 962 
 
 " Vnid Oil Factory 9 200 7 215 
 
 " Xa 2 Paper Factory 40 221 319 
 
 Total 780 331 258 496 
 
 « 7 " Xlla 2 Celluloid Factories. 20 863 1000 
 
 " Xllle 5 Breweries 58 586 43 204 
 
 Total 79 449 44 204 
 
 The chemical industries. Class 6, show a great increase, due no 
 doubt to the reduced freight, both on raw materials (coal in par- 
 ticular), and on a large part of the product. In consequence thereof
 
 DISCUSSION ON WATERWAYS AND RAILROADS. 499 
 
 many new factories have been built along the Main. Local pro- Mr. Sympher. 
 ductions have also been favored by the cheaper transportation. 
 
 For the solution of the problem as to how much traffic existing 
 railroads lose by reason of the new canals, many cases can be cited 
 where both have shown a favorable development. It is, however, 
 seldom possible to prove this as clearly and undoubtedly as is done 
 by the statistics concerning the Oder-Spree Canals. These are 
 singularly free from all doubtful or hypothetical figures. 
 
 As is well known there was formerly a water route between 
 Silesia and Berlin, Brandenburg and Hamburg, by way of the Oder, 
 Frederick William Canal and the Spree. The water freight was 
 unimportant, amounting to about from 200 000 to 300 000 tons in 
 the early Eighties; on the other hand, the railroad freight, from 
 Oppeln to Berlin, Brandenburg and Elbe Harbor amounted to 
 1 200 000 tons in 1883 and 1 800 000 in 1890. 
 
 After the completion of the Oder-Spree Canal in 1891, the canali- 
 zation of the Upper Oder in the autumn of 1895 and the ship canal 
 at Breslau in 1897, a great change took place in the shipping be- 
 tween Upper Silesia and Berlin, etc. Before these improvements 
 were made transportation was limited to boats of 125 tons capacity, 
 but after they were completed the canal was deep enough for boats 
 up to 400 tons capacity. By this means a modern equipment for 
 water transportation was possible — let us see how it affected the 
 railroads. 
 
 It must be explained here that the statistical data available do 
 not permit of comparing strictly identically travelled districts for 
 railroad and water routes. It will be sufficiently accurate to as- 
 sume that the greater part of the freight passing Furstenburg on 
 the Oder is for Berlin, the Province of Brandenburg or Hamburg, 
 or has come from there, and that the greater part has either come 
 from or is destined for the Oppeln District in Upper Silesia. In 
 the absence of other data, it will be proper to compare the Oder- 
 Spree Canal freight with the railroad freight between Upper Silesia 
 and Berlin, Brandenburg and Hamburg. In so doing we neglect 
 the comparatively unimportant tonnage that arrives by water in 
 the Province of Brandenburg by routes other than the Frederick 
 William and Oder-Spree Canals. Space will not permit of giving 
 all the statistics available, and, in Tables 8, 9 and 10, no figures are 
 given between 1883 (the first year in which official records were 
 kept) and 1890 (the year before the Oder-Spree Canal was opened). 
 
 Tables 8, 9 and 10 show that the freight on the Oder-Spree Canal 
 was very light at the start, but it has increased from year to year, 
 so that in the first eleven years it has been more than quadrupled. 
 In the opening year, 1891, the freight amounted to 446 000 tons and 
 in 1902 to 1819 000 tons.
 
 500 
 
 DISCUSSION ON ^VATER^VAYS AND JIAILROADS. 
 
 Mr.Sympher. TABLE 8. — FREIGHTS ON THE FREDERICK WiLLIAM AND THE OdER- 
 
 Spree Canals. 
 
 
 Frederick William 
 
 Canal, 
 Passing Brieskow. 
 
 Oder-Spree Canal, 
 Passing Fcrstenburq. 
 
 Stm Total. 
 
 Yeak. 
 
 i 
 s 
 
 1 
 
 
 1 
 
 3 
 
 
 1 
 1 
 
 h 
 
 •=11 
 
 1883 
 
 285 000 
 243 000 
 426 000 
 117000 
 130 000 
 121000 
 106 000 
 
 102 000 
 
 108 000 
 
 109 000 
 119 000 
 
 103 000 
 93 000 
 76 000 
 
 87 000 
 
 105 000 
 
 247 000 1 
 
 19 000 
 
 28 000 
 
 15 000 
 
 11000 
 
 7000 
 
 15 000 
 
 12 000 
 
 19 000 
 
 14 000 
 
 11000 
 
 9000 
 
 
 
 285 000 
 
 243 000 
 
 871000 
 
 973 000 
 
 1018 000 
 
 1145 000 
 
 1047 000 
 
 1256 000 
 
 1477 000 
 
 1577 000 
 
 1798 000 
 
 1713 000 
 
 1 726 (.00 
 
 1896 000 
 
 37 ax) 
 
 1890 
 
 
 
 105 OCO 
 
 1891 
 
 446 000 
 
 856 000 
 
 888 000 
 
 1024 000 
 
 941000 
 
 1154 000 
 
 1369 000 
 
 1468 000 
 
 1679 000 
 
 1610 000 
 
 1683 000 
 
 1819 000 
 
 216 000 
 514 000 
 533 000 
 614 000 
 565 000 
 718 000 
 820 000 
 826 000 
 966 000 
 861000 
 985 000 
 1088 000 
 
 468 000 
 
 1892 
 
 533 000 
 
 1898 
 
 561000 
 
 1894 
 
 629 000 
 
 1896 
 
 576 000 
 
 1896 
 
 725 000 
 
 1897 
 
 835 000 
 
 1898 
 
 838 000 
 
 1899 
 
 984 000 
 
 1900 
 
 875 OCO 
 
 1901 
 
 946 000 
 
 1902 
 
 1097 000 
 
 
 
 TABLE 9. — ^Railroad Freights between Oppeln, Upper Silesia 
 
 and: 
 
 
 Berlin. 
 
 Provincb of 
 Brandenburg. 
 
 Hakbuko. 
 
 Sum Totals. 
 
 
 go 
 
 1 
 
 icb bard 
 = tons. 
 
 1 
 
 h 
 
 I 
 
 1. 
 •Sll 
 
 OS 
 
 1 
 
 Of Which 
 
 Year. 
 
 !•' 
 
 
 
 1 
 
 Of wb 
 coal 
 
 1 
 
 
 1 
 
 5§ 
 
 H 
 
 Hard 
 ton 
 
 of 
 £ 
 
 1883 
 
 766 000 
 
 699 000 
 
 406 000 
 
 873 000 
 
 14 000 
 
 1000 
 
 1186 000 
 
 1078 000 
 
 118 OOO 
 
 1890 
 
 1092 000 
 
 974 000 
 
 785 000 
 
 664 000 
 
 22 000 
 
 9000 
 
 1849 000 
 
 1647 000 
 
 202 000 
 
 1891 
 
 1037 000 
 
 916 000 
 
 727000 
 
 638000 
 
 27 000 
 
 9000 
 
 1791000 
 
 1563 000 
 
 288 000 
 
 1892 
 
 961000 
 
 846 000 
 
 666 000 
 
 579 000 
 
 15 000 
 
 
 1641000 
 
 1425 000 
 
 816 000 
 
 1883 
 
 975 000 
 
 866 000 
 
 706 000 
 
 610 000 
 
 16 060 
 
 1000 
 
 1697 000 
 
 1467 000 
 
 280 000 
 
 1894 
 
 776 000 
 
 676 000 
 
 624 000 
 
 5.36 000 
 
 15 000 
 
 
 1415 000 
 
 1212 000 
 
 203 000 
 
 1896 
 
 TMOOO 
 
 700 000 
 
 606 000 
 
 522 000 
 
 16 000 
 
 
 1415 000 
 
 1222 000 
 
 19.S000 
 
 1896 
 
 746 000 
 
 647 000 
 
 621000 
 
 531000 
 
 16 000 
 
 
 1382 000 
 
 1178 0Q0 
 
 804 000 
 
 1897 
 
 771000 
 
 671000 
 
 681000 
 
 592 000 
 
 18 000 
 
 
 1470 OCO 
 
 1263 000 
 
 207 OCO 
 
 1898 
 
 865 000 
 
 735 000 
 
 782 000 
 
 670 000 
 
 16 000 
 
 
 1653 000 
 
 1406 000 
 
 248 000 
 
 1899 
 
 874 000 
 
 7^000 
 
 860 000 
 
 786 000 
 
 88 000 
 
 
 1746 000 
 
 1482 000 
 
 864 000 
 
 1900 
 
 1066 000 
 
 961000 
 
 936 000 
 
 818 000 
 
 41000 
 
 
 2032 000 
 
 1769 000 
 
 868 000 
 
 1901 
 
 1046000 
 
 948 000 
 
 989 000 
 
 880 000 
 
 36 000 
 
 
 2 071000 
 
 1828 000 
 
 843 UOO 
 
 1908 
 
 866 000 
 
 766000 
 
 910 000 
 
 786000 
 
 87 GOO 
 
 
 1818000 
 
 1668 000 
 
 800000
 
 DISCUSSION^ ON WATERWAYS AND RAILROADS. 
 
 501 
 
 TABLE 10. — Kailroad akd Canal Freight between Oppeln^ in Mr. Sympher. 
 Upper Silesia, and Berlin, the Province of Brandenburg 
 and Hanover. 
 
 Year. 
 
 1890.. 
 
 i«n.. 
 
 18W.. 
 1893.. 
 1894.. 
 1995.. 
 1896.. 
 1897.. 
 1898.. 
 1899.. 
 1900.. 
 1801 . . 
 1908.. 
 
 StmifAHT. 
 
 Rail- 
 road. 
 Tons. 
 
 Canal. 
 Tons. 
 
 1 186 000 
 1 849 000! 
 1 T91 OOOi 
 1 641 000 
 1 697 000 1 
 1 415 000,1 
 1 415 000 1 
 1 88S 000 1 
 1 470 000 1 
 1 653 0001 
 
 1 746 000 1 
 8 032 000 1 
 
 2 071 000 1 
 il 812 OOOil 
 
 Total. 
 Tons. 
 
 235 0001 
 243 0002 
 871 0002 
 978 000i2 
 018 0002 
 145 000 2 
 
 Classitication. 
 
 Hard Coal. 
 
 Rail- 
 road. 
 Tons. 
 
 047 000 
 256 000 
 477 000 
 577 000 
 798 000 
 713 000 
 728 000 
 895 000 
 
 421 0001 
 092 0001 
 662 000 1 
 614 000 1 
 715 OOU'l 
 560 0001 
 462 000 1 
 638 OOO'l 
 947 OOOil 
 280 OOOil 
 
 Canal. 
 Tons. 
 
 544 000 
 745 000 
 797 000 
 707 000 
 
 073 000 
 647 000 
 563 000 
 425 000 
 467 000 
 212 000 
 222 OOO! 
 178 000 
 263 000 
 405 OOOi 
 482 000 
 769 000 
 828 000 
 552 0001 
 I 
 
 37 000 
 105 000 
 463 000 
 533 000 
 561-000 
 629 000 
 576 000 
 725 000 
 835 000 
 838 000 
 984 000 
 875 000 
 946 000 
 097 000 
 
 Total. 
 Tons. 
 
 110 000 
 
 752 000 
 026 000 
 958 000 
 028 000 
 841 000 
 798 000 
 903 000 
 098 000 
 243 000 
 466 000 
 644 000 
 774 000 
 649 000 
 
 Othkb Freight. 
 
 Rail- 
 road. 
 Tons. 
 
 118 000 
 
 202 000 
 228 000 
 216 000 
 230 000 
 208 000 
 193 000 
 204 000 
 207 000 
 248 000 
 264 000 
 263 000 
 243 000 
 260 000 
 
 Canal. 
 Tons. 
 
 198 000 
 
 138 000 
 408 000 
 440 000 
 457 000 
 516 000 
 471 000 
 581 000 
 642 000 
 739 000 
 814 000 
 838 000 
 780 OOOil 
 798 00011 
 
 Total. 
 Tons. 
 
 811 000 
 340 000 
 636 000 
 656 000 
 687 000 
 719 000 
 664 000 
 785 000 
 849 000 
 987 000 
 078 000 
 101 000 
 023 000 
 058 000 
 
 The possibilities of further increase are not at an end, but the 
 history of this canal shows that a well-equipped modem canal, 
 properly located, is able to draw to itself large quantities of freight 
 in a place where a small unimportant canal had had a hard struggle 
 to maintain itself and had given opponents of canalization an oppor- 
 tunity to question its right to existence and to state that, in this 
 day of railroads, canals are superfluous. Success was gained in spite 
 of the fact that we are not dealing with a river, the maintenance of 
 which calls for no expense, but with a canal that calls for various 
 expenditures. The result has been that at the present writing this 
 canal is not only paying for its maintenance, but is also returning 
 2% on the capital invested in it. 
 
 It is .a matter of special interest to determine in what measure 
 the railroad traffic has been decreased. In 1890, the year before 
 the Oder- Spree Canal was opened, this traffic reached a tonnage of 
 1 849 000 tons, including 1 647 000 tons of coal, which was, up to 
 1900, the greatest tonnage observed for the traffic between Oppeln 
 and Berlin, Brandenburg, and the harbors on the Elbe. A very 
 gradual decrease took place up to 1896, when the figures were 
 1 382 000 tons, of which the coal tonnage was 1 178 000. In 1901, 
 the figures show that the total tonnage had increased to 2 071 000, 
 of which 1 828 000 tons were coal. For 1902, the figures were 
 1 812 000 and 1 552 000 tons, respectively, showing a slight decrease. 
 The loss amounted to 467 000 tons in 1896 and was about 25% of 
 the traffic as it existed in 1890.
 
 503 DISCUSSION ON WATERWAYS AND EAILROADS. 
 
 Mr. Sympher. Considering Berlin alone, where the Rhine-Elbe Canal would 
 have allowed almost all the freight to be diverted to the water 
 route, we have a reduction from 1 092 000 tons, of which the coal 
 tonnage was from 974 000 to 745 000 and 647 000 tons, respectively, 
 in 1896 ; and then a gradual increase up to 1901, which shows a ton- 
 nage of 1 046 000 and 958 000, respectively. For 1902, in this case, 
 as in the larger one, a decrease again takes place, the total freight 
 tonnage being 865 000, of which 766 000 tons were coal. 
 
 The maximum decrease amounted to about 32%, and it took 
 about five years for the railroads to get back to their former 
 tonnage. As the figures for Berlin show such a close analogy to 
 those for the larger district, for further comparison, it will be ample 
 to consider only the traffic between Upper Silesia and Berlin. If we 
 distinguish between coal and other freight, coal being the heaviest 
 of the large consignments, we can readily prove that the railroad 
 loss is due mainly to the diversion of the coal hauling. For all 
 other freight, the loss between 1890 and 1895 amounted to only 
 9 000 tons, having dropped from 202 000 to 193 000 tons in that 
 period. In 1902 this business had increased to 260 000 tons. For 
 Berlin, the figures are as follows: 
 
 1890 118 000 tons. 
 
 1895 94 000 " 
 
 1902 99 000 " 
 
 The loss amounts to 24 000 tons. Taking the totals of railroad 
 and canal tonnage, we find that the total traffic between Oppeln and 
 Berlin, Brandenburg and Hanover increased from 1 421 000 tons in 
 1883 to 2 092 000 in 1890, and in 1902 had reached 3 707 000 tons. 
 In other words, the yearly increase before the canal was finished 
 was 96 000 tons, and after its completion, .135 000 tons. 
 
 That this increase is to be credited to the canal can be seen from 
 the following tabulation of railroad traffic between Berlin and 
 Brandenburg on the one side, and all other districts, except Oppeln, 
 on the other:* 
 
 Province of 
 
 Year. 
 
 Berlin. 
 Tons. 
 
 Brandenburg. 
 Tons. 
 
 Total. 
 Tons. 
 
 1883 
 
 2 558 000 
 
 2 514 000 
 
 5 072 000 
 
 1890 
 
 4 318 000 
 
 4 277 000 
 
 8 595 000 
 
 1896 
 
 5 017 000 
 
 5 682 000 
 
 10 699 000 
 
 1899 
 
 5 931 000 
 
 7 130 000 
 
 13 061 000 
 
 1900 
 
 6 690 000 
 
 8 123 000 
 
 14183 000 
 
 1-901 
 
 6 697 000 
 
 8 358 000 
 
 15 055 000 
 
 1902 
 
 7 105 000 
 
 8 892 000 
 
 15 997 000 
 
 * HambuTK is not included here, as its total traffic is not at all affected by tlie small 
 amount of traffic between it and Upper Silesia.
 
 DISCUSSIOX ON WATERWAYS AND RAILROADS. 503 
 
 This shows an average yearly increase, from 1890 to 1902, of Mr. Sympher, 
 about 600 000 tons, while the average increase of the period from 
 1883 to 1890 was about 500 000 tons. 
 
 The above figures show that the traffic development on the Oder- 
 Spree Canal is analogous to what may be expected for the canal 
 between the Rhine and Hanover. The following facts have been 
 proven as regards the development of canal traffic. 
 
 1. — The canal traffic increased very slowly at first, but finally 
 reached a respectable figure. 
 
 2. — The railroad traffic showed a gradual loss at first, but soon 
 recovered, and the maximum loss was never greater than one-third 
 of the traffic of the canal in its opening year. 
 
 3. — The freight lost to the railroad was mostly rough and bulky 
 freight, mainly coal. 
 
 4. — The canal has had a tendency to increase the total amount of 
 freight from the surrounding country, and thereby materially in- 
 creased the prosperity of the same. 
 
 ■5. — The railroad loss is due not so much to any diversion of 
 existing traffic as to a diversion of the natural increase due to the 
 building of the canal. In case the canal had not been built, rail- 
 roads would have had to be. This was not so much the case in the 
 districts we have been dealing with as in others, and is the main 
 reason why work on the canal from the Rhine to Hanover should 
 be started as soon as possible. 
 
 Should these conclusions be acknowledged as correct, no reason 
 exists for doubting that the canal from the Rhine to Hanover will 
 have a traffic that will justify its existence on one hand and will 
 not materially affect the income of the existing railroads. 
 
 Lionel B. Wells, M. Inst. C. E., Manchester, England. (By Mr. Wells, 
 letter.) — Mr. North's reference to Mulhall's estimate of the cost of 
 transportation in different countries is well worthy of attention by 
 men of affairs and philanthropists. 
 
 When law and order have been assured to a community, the im- 
 portance of good, rapid and cheap means of communication for 
 passengers and freight becomes paramount, and each year as the 
 means of locomotion generally is improved, enabling products from 
 a greater distance to be used with advantage and economy, the 
 cheapening of the cost of carriage within its boundaries becomes of 
 greater consequence to each civilised nation and also to humanity 
 at large. 
 
 When supplies were drawn from a short distance the cost per 
 ton per mile was relatively of less account; at the present time it 
 looms large, making for prosperity and comfort if it is fostered, and 
 for poverty and decay if it is neglected. 
 
 The United Kingdom is in the unenviable position of being at
 
 504 DISCUSSION ON WATERWAYS AND RAILROADS. 
 
 Mr. Wells, the top of Mulhall's list, with an average cost for transportation of 
 2.80 cents per ton per mile. 
 
 How this can be lowered is a problem which ought to receive the 
 attention of all who are concerned for the welfare of England. Two 
 generations ago the condition was reversed. With the sea at a mod- 
 erate distance even from the Midlands, a network of canals, not 
 then out of date, and a railway system in advance of other nations, 
 our products were carried at lower rates than those of other nations. 
 
 Mulhall puts the ordinary cost of land carriage for goods in 
 Europe in 1850 as 16 cents per ton per mile. This compares with 
 rates varying from 2.50 cents in Italy to 1.56 cents in Holland ob- 
 taining at the present time, the English rate being, as already stated, 
 2.80 cents. 
 
 This, on the face of it, is an intolerable position, and ought to be 
 faced. How can the rate be appreciably lowered without making 
 greater use of waterways? and to be of real utility, the waterways 
 must be improved and brought up to date. 
 
 The net receipts of railways compared to the gross receipts are 
 continually diminishing in spite of the high rates paid for carriage. 
 In discussing this question, side issues are continually raised. It .is 
 said to be due to excessive local rates and other causes, all acting 
 to the disadvantage of the railway shareholder who, although, in 
 some instances, he is amply remunerated for his enterprise, on the 
 average is certainly not too well rewarded. 
 
 Some 14 or 15 years ago, long and costly enquiries were held 
 both by officials of the Board of Trade and Committees of Parlia- 
 ment to investigate the (piestion of the charges made by railway 
 and canal companies for transportation. Some relief was obtained 
 by the trader, but, as shewn by Mulhall's figures, this is not sufficient 
 to meet the case. 
 
 If we look to Europe for guidance we see at once that countries 
 that have the best system of waterways pay the lowest rate for trans- 
 portation, viz., Holland, 1.56 cents, and Belgium, 1.60 cents per ton 
 per mile. Belgium maj be taken as somewhat similar to the manu- 
 facturing districts, while Holland compares with the districts in the 
 eastern part of England, where the land is level and agriculture is 
 almost the only pursuit. 
 
 The canal system of these two countries has long been well de- 
 veloped, and, in spite of the introduction of railways, water com- 
 munication has not been neglected. New canals are being made 
 and the old ones enlarged. 
 
 There are signs of a revival of interest in canals in England. 
 The matter is before the Chambers of Commerce and when the 
 Associated Chambers of the United Kingdom meet in Manchester 
 in the autumn of 1904, resolutions will be brought forward hy the
 
 DISCUSSION ON WATERWAYS AND RAILROADS. 
 
 505 
 
 Manchester, Liverpool, and Worcester Chambers pointing to the Mr. Wells, 
 necessity for the Government taking over the canals and working 
 them in the public interest; or, as an alternative, that the canals 
 should be placed under a National public trust with a Government 
 guarantee, supervision and control. The Liverpool resolution is: 
 
 "That in view of the urgent necessity of cheapening the cost of 
 the internal transport of goods and of the immense benefit that is 
 bound to follow from the modernisation and extension of our inland 
 navigations, this Association, being of opinion that the best results 
 can be obtained only through unity of management, strongly urges 
 that all the inland navigations of the United Kingdom should be 
 acquired by the State or by a suitably constituted National trust." 
 
 The interest in this question has extended to the House of Com- 
 mons; several influential men of affairs and of good commercial 
 reputation are engaged in furthering measures for the consideration 
 of the subject with a view to action being taken. 
 
 The Manchester Ship Canal was opened for traffic on January 
 1st, 1894; the traffic on it to the end of 1903 has been as follows: 
 
 1894. 
 
 1895. 
 
 1896. 
 
 1897. 
 
 1898. 
 
 1899. 
 
 1900. 
 
 1901. 
 
 1902. 
 
 1908. 
 
 Tons. 
 
 Tons. 
 
 Tons. 
 
 Tons. 
 
 Tons. 
 
 Tons. 
 
 Tons. 
 
 Tons. 
 
 Tons. 
 
 Tons. 
 
 925 659 
 
 1858 875 
 
 1826 237 
 
 2 065 815 
 
 2 595 585 
 
 2 778 108 
 
 8 060 516 
 
 2 942 898 
 
 8 418 059 
 
 3 846 895 
 
 The distance from Manchester to Liverpool is 35 miles, and there 
 are four lines of railway between the cities. The London and North 
 Western Railway owns two of these, yet it has never been suggested 
 at any meeting of railway shareholders that the railway companies 
 have suffered in their traffic owing to the competition of this canal. 
 
 Of the loss due to the competition of electric trams, we hear 
 continually, and the sums estimated to be thus abstracted from the 
 railway receipts are specifically mentioned. If it were possible to 
 ground a complaint against the ship canal it would have been voiced 
 by the railway interest. 
 
 The trade of Manchester arid the surrounding district has re- 
 ceived an enormous impetus since the canal was opened and it con- 
 tinues to expand. A new industrial quarter has sprung up in Traf- 
 ford Park, on the canal side, where the Westinghouse Company and 
 a score of other manufactories are installed, employing thousands 
 of men. 
 
 The depth of water in the canal is about to be increased from 
 26 to 28 ft. The lock sills admit of this. A basin, 15 acres in extent 
 with the most modern appliances for dealing with the cargoes of
 
 506 
 
 DISCUSSION ON WATERWAYS AND RAILROADS, 
 
 Mr. Wells, large ships trading here, is being added to the 10 i acres originally 
 provided. 
 
 During these years, Liverpool has been busily occupied in ex- 
 tending its docks, with far greater rapidity than in former decades, 
 and of necessity, for her customs tonnage in and out, which in 1893 
 amounted to 16 831Y00 tons, was last year (1903) 23 901000 tons. 
 Whilst Manchester has attracted 3 847 000 tons dead weight, Liver- 
 pool has added over 7 000 000 tons to her customs tonnage. 
 
 Liverpool opposed the canal to the uttermost. At the time, our 
 great financier, Mr. W. E. Gladstone, a native of Liverpool, told 
 the citizens that they would not suffer damage from the ship canal 
 to Manchester, but, on the contrary, that they would derive benefit, 
 because a new inducement to cause trade to flow into Lancashire 
 would be brought into existence, and, seeing that Liverpool could 
 never lose its position of advantage at the portal of the district, it 
 must gain from the additional impetus given to the prosperity of the 
 country at its back. Time has shewn his prescience. 
 
 TABLE 11. 
 
 
 Canal Tbafpic, 
 IN AND orr. 
 
 Railway Traffic, Petite 
 Vitesse in and out. 
 
 
 Tons. 
 
 Tons. 
 
 1872 
 
 256 804 
 
 802 264 
 
 345 190 
 
 585 834 
 
 694 082 
 
 813 321 
 
 849 598 
 
 948 650 
 
 960 859 
 
 866 939 
 
 996 635 
 
 1 Wl 697 
 
 1 101 281 
 
 1 110 824 
 
 990 694 
 
 1 003 683 
 
 1 079 606 
 
 1 22(1 135 
 
 1 077 561 
 
 t 017 093 
 
 1 106 727 
 
 505 400 
 
 1882 
 
 991 500 
 
 1883. 
 
 1 021 000 
 
 1884 
 
 1 040 200 
 
 1885 
 
 1 0&9 700 
 
 1886 
 
 1 071 900 
 
 1887 
 
 1 ore 800 
 
 1888 
 
 1 207 100 
 
 1889' 
 
 1 295 400 
 
 1890 
 
 1 465 400 
 
 1891 
 
 1 596 500 
 
 1893 
 
 1 434 900 
 
 1893 
 
 1 455 300 
 
 1894 
 
 1 427 100 
 
 1895 
 
 1 273 100 
 
 1896 
 
 1 397 300 
 
 1897 
 
 1 429 800 
 
 1898 
 
 1 719 600 
 
 1899 
 
 1 674 900 
 
 1900 
 
 1 771 775 
 
 1901 
 
 1 748 950 
 
 The advent of the ship canal was contemporaneous with the re- 
 moval of the Mersey Bar, on which dredging commenced in 1890. 
 The bar has been removed and the channel of approach deepened to 
 25 ft. at dead low water. It is hard to suppose that the great traffic 
 now passing in and out of Liverpool could have found accommoda- 
 tion under the old restricted conditions, as to time and depth of 
 water.
 
 DISCUSSION ON WATERWAYS AND RAILROADS. 507 
 
 That a large canal traffic is not detrimental to railway traffic is Mr. Weiie. 
 evident by studying the lines of trade followed in France from Paris 
 to Havre and from Paris to the northwest and Belgium. It is also 
 palpable to all who have watched the steamers and barges and the 
 railway trains on both banks which traverse the valley of the Rhine. 
 
 Facilities of communication, when duly provided, give an im- 
 petus to trade which acts and reacts to the benefit of the district. 
 This is exemplified in Table 11, which shews the weight of goods 
 carried to and from Dunkirk by railway and canal in 1872 and 1882 
 to 1901 inclusive. 
 
 As money makes money, facilities beget trade, and the best 
 available means of communication is a great promoter of trade and 
 well-being. 
 
 Th. Hoech,* Esq., Kolberg, Germany. (By letter.)— In reading Mr. Hoech. 
 the paper, it occurred to the writer that the rates per ton-mile, re- 
 duced to cents, as given on pages 477 and 487, namely, 
 
 England Germany New England United States 
 
 2.80 1.64 1.16 0.80 
 
 recognized the rule that the unit of cost decreases as the length of 
 the mileage increases. It follows that the larger areas have cheaper 
 unit rates, partially making good the large average haulage to the 
 points of destination. Still, there is another rule which applies, 
 namely, that the density of population causes the number of short 
 hauls to increase, and, similarly, the average freight rate, according 
 to the first rule. 
 
 As to the cost of construction, the New England States were 
 obliged to invest more money in railroad stations, in rights of way, 
 etc., than the average State in the United States. Even the cost 
 of the railway lines in New England is much greater than in the 
 Mississippi Valley, and even in the Far "West, with the long canons 
 which Nature has prepared for railroad routes. 
 
 Whether less capital invested in railways is lost in New England 
 than the average in the TJnited States, the writer does not know. 
 Statistics cannot be considered perfect unless the rate of interest of 
 the invested capital is given, and the loss of investments by fore- 
 closures is counted in. One might perhaps find this rule to hold 
 good, namely, that the more foreclosures the cheaper the rates. The 
 writer would like to see it demonstrated that the rules of Nature 
 prevail over human manipiilations. 
 
 Edward P. North, M. Am. Soc. C. E., New York City. (By Mr. North, 
 letter.) — The valuable discussion contributed by Mr. Sympher shows 
 how little, in Grermany as in the United States, railroads have to 
 
 • Baurat.
 
 608 DISCUSSION ON WATERWAYS AND RAILBOADS. 
 
 Mr. North, apprehend from the competition of improved waterways. This prac- 
 tically endorses the theory of the Grerman engineers under whose 
 advice to their Government about $150 000 000 have been expended 
 during the past 20 years in improving Grerman waterways, although 
 the Government owns about 90% of the railroads of the country. 
 O. Eltzbacher* sums up the results of this concurrent improvement 
 of German railroads and waterways as follows: 
 
 
 Tons Carried per Kilometer. 
 
 
 1875. i 1895. 
 
 On waterways 
 
 290000 ! 750000 
 
 On railroads 
 
 410000 ! 590000 
 
 
 
 This great increase in tonnage per kilometer on the waterways 
 must have been influential in reducing "the economically unrepro- 
 ductive cost of transport" to the i)eople of Germany. During sub- 
 stantially the same period, from 1882 to 1902, the boats engaged in 
 internal navigation carrying 150 tons, or less, have decreased by 
 nearly 20%, while those carrying 300 tons, or more, have increased 
 by 565 iper cent. 
 
 Since the Rhine has been deepened, many light-draft steamers 
 find it profitable to escape the cost of transferring cargo at the 
 mouths of the Rhine by running direct from British and North 
 European ports to Cologne, while the transference of freight from 
 deep-sea steamers at the Dutch ports is adding to the wealth of 
 Holland. 
 
 Note should be taken, in considering the usefulness of 400-ton 
 boats on the German canals, that the freight rates in Germany are 
 about twice as high as in the United States. 
 
 The discussion by Mr. Hoech is very valuable in the sug- 
 gestions made. But attention should be called to an apparent 
 lack of discrimination between capital invested and the face 
 value of certificates of indebtedness issued. The more doubt- 
 ful the success of a projected railroad, the greater the excess of 
 bonds over stock, which the law required to be full paid. This law 
 did not apply to bonds and there were instances in the 20 years 
 succeeding 1865 when for every dollar of stock two dollars in bonds 
 of different denominations were issued. In such cases it is im- 
 probable, if, after bankers' commissions were paid, more than 
 25% of the face value of the so-caUed securities ever reached the 
 office of the railroad company. But these practices were almost 
 
 * Contemporary Revtetc, December, 1904.
 
 DISCUSSION OX WATERWAYS AND RAILROADS. 509 
 
 unknown in either Groups I or II of Table 1, which present both Mr. North, 
 the highest and the lowest average freight rates. Their exhibition 
 was confined almost entirely to groups west of the Mississippi. 
 Both seller and buyer knew this was blind and desperate gambling, 
 and foreclosures were almost inevitable, but it is doubtful if, in the 
 majority of such cases, values were wiped out, or the capital in- 
 vested was sensibly impaired by the foreclosure. No statistician 
 can perfect the rate of interest paid on the money actually invested 
 in constructing our railroads. It would be extremely difficult for 
 any road of great extent. 
 
 Nearly all railroads make rates that are, in some measure, inverse 
 to the length of haul, and the traffic rules laid down by Mr. Hoech, 
 if not intuitively suggested, will be immediately accepted as correct 
 by all thinkers on this subject, but the rules are general and not 
 rigorous in their application. Taking the second one: 
 
 "The density of population causes the number of short hauls to 
 increase, and similarly the average freight rate." 
 
 The first year that "Poor's Manual" was able to collect statistics 
 for all railroads in the United States was 1882; then our popiila- 
 tion was 16.89 iter sq. mile; we shipped 6.87 tons per capita, which 
 was carried 109.02 miles at a cost of 1.236 cents per ton-mile. In 
 1900, we had 25.2 people per sq. mile, sent 14.08 tons per capita 131.8 
 miles to its destination at an average cost of 0.746 cent per ton-mile. 
 There are also other instances limiting this rule, e. g., Belgium has 
 590, Holland, 400, and Germany, 270 inhabitants per sq. mile; yet, 
 as given by Mulhall, the freight rates are, Germany, 1.64; Belgiuiii, 
 1.60, and Holland, 1.56 cents per ton-mile, with probably shorter 
 hauls in Holland and Belgium than in Germany. In view of the 
 exceptions noted, it may be safely said that the rule defines a ten- 
 dency and should not be accepted for any case without investigation. 
 
 The first rule: that the unit of cost decreases as the length of 
 mileage increases, has few, if any, exceptions, but it does not seem 
 applicable, as cited in a comparison between the rates in New 
 England, 1.16 and 0.8 for the United States. Table 4, page 487, has 
 no mention of the average ton-mile rate in the United States. It 
 was not submitted as conclusive, but to show the effect of respectable 
 and highly appreciated railroad commissions in upholding freight 
 rates and driving heavy manufacturing out of the territory in which 
 railroad building is controlled by them. Table 12, in which the 
 groups are arranged as in Table 4, except that the miles of rail- 
 road are miles operated, as returned in "Poor's Manual," shows that 
 Group I, though, with one exception, having the largest population 
 per square mile, had the highest freight rate of all the groups. It 
 also had the shortest haul of any group. But Group II, which is 
 the most densely populated of all the groups and has the shortest
 
 510 DISCUSSION ON WATERWAYS AND EAILROADS. 
 
 Mr. North, average haul of any but Group I, has the lowest freight rate, 52.6% 
 of Group I, and to understand this question the rate of the Middle 
 States, 0.61, should be interpolated between "New England" and 
 "United States." 
 
 It probably will not be contended that the quantities moved, or 
 constructed, in building railroads in the States of New York, New 
 Jersey, Pennsylvania, Delaware, Maryland and the District of 
 Columbia have averaged less than in the New England States, or 
 that the right of way has been materially cheaper. But in these 
 two groups the cost of construction has been much greater than in 
 the other groups. The rate in Groups I and II is 0.66 cent per 
 ton-mile where there is a population of 124 per sq. mile and the 
 average haul is 103 miles, but in Groups III to VIII inclusive, where 
 the population is 18.8 per sq. mile and the average haul is 155 miles, 
 the ton-mile rate is 0.79 cent. Groups I and II, however, carry 
 nearly three times the tonnage of the other groups. 
 
 As for capitalization, stock and bonds, "Poor's Manual" gives it 
 as $140 600 for Groups I and II and $49 700 for the other groups. 
 The value of this comparison is greatly impaired by the "water" in 
 the stocks of some of the heaviest carriers in Groups I and II, and, 
 by the fact, or possibly theory, that the water has been pretty 
 effectually squeezed out of the capital account of roads in Groups 
 TIT to VIII. There is, however, nothing to show that either a short 
 haul or density of population increases the average freight rate. 
 Nor is it apparent, as our railroad reformers declare, that a large 
 capital account forces, Tpcr se, high freight rates. 
 
 Croesus was truthfully told that some one with better steel 
 would take his wealth. But better transportation has for centuries 
 moved the wealth and power of the world. It supplies that com- 
 mercial confidence which commands land, labor and capital in the 
 service of production. When Brindley, with his coadjutors and fol- 
 lowers, commenced canal building in England, they provided that 
 country with the cheapest transportation in the world and developed 
 that commercial confidence which carried England, with the further 
 aid of its railways, to the front as a world power. But very shortly, 
 what Sir Michael Hicks-Beach frankly admitted is a very powerful 
 interest, the railway interest, bought canals so as to break up 
 through routes and has succeeded in keeping England's methods of 
 internal transportation and rates for freight without substantial 
 improvement. At present, according to Sir Michael, at a late 
 meeting of the Society of Arts, that interest will prevent any en- 
 largement of English canals. It was between 1870 and 1880 that 
 our average freight rates dropped below the English rates, and since 
 that time, in any comparison of industrial and consuming capacity, 
 England has seemed anchored.
 
 DISCUSSION OX WATERWAYS AND RAILROADS. 
 
 TABLE 12. 
 
 511 
 
 Mr. North. 
 
 Yeab. 
 
 1880. 
 
 1885. 
 
 1890. 
 
 1895. 
 
 1900. 
 
 1903. 
 
 United States. 
 
 Miles of railroad. . . . 
 Freight hauled 
 
 93 269 
 
 122 110 
 437 040 099 
 112.46 
 1.04 
 
 157 976 
 701 344 487 
 112.91 
 0.93 
 
 20.80 
 
 397.54 
 
 179 154 
 
 755 799 883 
 
 115.96 
 
 0.839 
 
 191455 
 
 1071431919 
 
 131.80 
 
 0.746 
 
 85.20 
 
 397.41 
 
 204 668 
 1 299 684 081 
 
 Length of haul 
 
 
 131.79 
 
 Rate p>er ton-mile. . . 
 
 
 781 
 
 Population per 
 square mile 
 
 16,89 
 537.59 
 
 
 Population per mile 
 01 railroad 
 
 
 
 
 
 
 
 
 Gkoijp I. 
 
 Miles of railroad 
 
 Freight hauled 
 
 Length of haul 
 
 Rate per ton-mile. . . 
 Population per 
 
 square mile 
 
 Population per mile 
 
 of railroad 
 
 60.42 
 670.99 
 
 6 476 
 30 186 233 
 59.81 
 1.56 
 
 7 Oil 
 41 5294 970 
 69.40 
 1.37 
 
 70.82 
 
 670.48 
 
 7 659 
 42 183 240 
 79.99 
 1.24 
 
 7 8« 
 54 337 873 
 82.94 
 1.16 
 
 84.24 
 
 718.06 
 
 7 738 
 54 260 898 
 85.91 
 1.18 
 
 Group n. 
 
 Miles of railroad 
 operated 
 
 
 17 794 
 189 619 916 
 91.50 
 0.84 
 
 19 314 
 
 302 5S0 992 
 84.89 
 0.82 
 
 121.36 
 
 782.22 
 
 21 890 
 337 037 563 
 89.52 
 0.71 
 
 
 
 24 710 
 413 573 1»1 
 105.86 
 0.61 
 
 146.80 
 
 692.27 
 
 23 425 
 
 Freight hauled 
 
 
 527 874 019 
 
 Length of haul 
 
 
 105 30 
 
 Rate per ton-mile. . . 
 
 
 067 
 
 Population per 
 square mile 
 
 100.88 
 
 
 Population per mile 
 of railroad 774.39 
 
 
 
 
 
 
 
 
 
 Geoup III. 
 
 Miles of railroad 
 
 operated 
 
 Freight hauled 
 
 Length of haul 
 
 Rate per ton-mile. 
 Population perj 
 
 square mile 46.01 
 
 Population per mile' 
 
 of railroad. 446.31 
 
 42 1991 
 182 124 264 
 144.44 
 0.89 
 
 50 936 
 204 659 671 
 136.28 
 0.79 
 
 54.10 
 
 284.48 
 
 53 732 
 215 784 762 
 138.10 
 0.76 
 
 58 087 
 820 631700 
 137.73 
 0.69 
 
 64.80 
 
 275.67 
 
 60154 
 896 044 799 
 138.42 
 0.70 
 
 Group IV. 
 
 Miles of railroad 
 operated ! 
 
 Freight hauled i 
 
 Length of haul \ 
 
 ■ Rate per ton-mile . . . ' 
 
 Population peri 
 square mile 28.63 
 
 Population per mile 
 of railroad. 747.98 
 
 10 806 
 
 15 888 029 
 
 107.77 
 
 1.85 
 
 14 556 
 35 185 795 
 111.46 
 1.03 
 
 27.65 
 
 5C9.68 
 
 20 443 
 
 45 800 646 
 
 185.72 
 
 0.79 
 
 22.625 
 
 65 547112 
 
 161.69 
 
 0.69 
 
 82.77 
 
 388.60 
 
 24 784 
 
 60 168 159 
 160.49 
 0.78
 
 512 
 
 DISCUSSION ON AVATERWAYS AND RAILROADS. 
 
 Mr North. 
 
 TABLE 12— (Conti7iued). 
 Groop V. 
 
 Miles of railroad 
 oi)erated 
 
 Freight hauled 
 
 Length of haul 
 
 Rate per ton-mile . . . 
 
 Population per 
 square mile 
 
 Population per mile 
 of railroad 
 
 27.04 
 
 9 249 
 19 197 613 
 102.43 
 1.43 
 
 9 569 
 780 161 
 98.38 
 1.04 
 
 32.36 
 
 788.73 
 
 10 329 
 26 779 193 
 137.37 
 0.89 
 
 9 694 
 40 391 899 
 141.35 
 0.83 
 
 921.12 
 
 Geoup VI. 
 
 Group VIII. 
 
 Miles of railroad 
 operated 
 
 Freight hauled 
 
 Length of haul 
 
 Rate per ton-mile. . . 
 
 Population per 
 square mile 
 
 Population per mile 
 of railroad 
 
 1.94 
 271.81 
 
 5 835 
 5 503 588 
 161.74 
 3.27 
 
 7 376 
 
 937 953 
 
 191.53 
 
 1.56 
 
 3.17 
 
 307.61 
 
 10 849 
 11 690 185 
 289.29 
 1.81 
 
 13 576 
 23 524 092 
 249.55 
 0.97 
 
 240.17 
 
 10 812 
 50 268 899 
 145.58 
 0.83 
 
 Miles of railroad 
 operated 
 
 
 19 541 
 27 690 116 
 132.32 
 1.74 
 
 28 356 
 
 38 272 891 
 
 176.26 
 
 1.35 
 
 10.86 
 
 291.92 
 
 31 744 
 43 655 714 
 166.88 
 1.34 
 
 32 550 
 63 015 069 
 197.01 
 1.00 
 
 13.72 
 
 321.44 
 
 36 712 
 
 Freight hauled 
 
 
 93 844 012 
 
 Length of haul 
 
 
 179 37 
 
 Rate per ton-mile,. . 
 
 
 1 00 
 
 Population per 
 square mile 
 
 8.43 
 416.94 
 
 
 Population per mile 
 of railroad 
 
 
 
 
 
 
 
 
 
 
 Group VII. 
 
 
 
 
 Miles of railroad 
 operated 
 
 
 11 666 
 16 835 340 
 159.15 
 1.46 
 
 20 859 
 
 81 633 0(M 
 
 301.33 
 
 1.06 
 
 8.17 
 
 338.60 
 
 33 507 
 53 918 571 
 199.77 
 1.04 
 
 33 370 
 61411037 
 
 182.27 
 0.95 
 
 10.02 
 
 261.28 
 
 25 892 
 
 Freight hauled 
 
 
 77 831 015 
 
 Length of haul 
 
 
 201 95 
 
 Rate per ton-mile. . . 
 
 
 91 
 
 Population per 
 square mile 
 
 5.01 
 347.35 
 
 
 Population per mile 
 of railroad 
 
 
 
 
 
 
 
 12109- 
 23 334 944 
 224.92 
 1.16 
 
 The only noticeable improvement in England for over half a 
 century that competes has been the Manchester Ship Canal. And 
 Mr, Wells tells us that in 10 years the shipping entering the Mersey 
 has increased by 66%, only about one-third of this increase 
 going into the canal. It does not seem possible that the railways 
 between Liverpool and Manchester, which joined in the fight against 
 the canal, have had no increase of traffic through the business de- 
 veloped by this increase of tonnage. 
 
 Comparing the services per capita in 1882 and 1900, as men- 
 tioned above, it will be seen that the service of 1900 would have
 
 DISCUSSION ON WATERWAYS AND RAILROADS. 513 
 
 cost US $7.10 more per capita if the rate of 1882 had been charged. Mr. North. 
 This is not only an addition of this amount to the net income of 
 every man, woman and child, but it also gives a bounty of about 50 
 cents per ton on the consumption of our yearly products. And while 
 our area is an important factor in our long hauls, the low cost of the 
 service enters largely into both the length of haul and the quantity 
 of our marketed products. It is doubtful if under the artificially 
 high cost of transportation in Great Britain the adult males in that 
 country could pay for a service of 1S6* ton-miles. / / / 9" 
 
 Apparently no more economies in transportation in the service / 
 of the public are to be made by our railroad companies. For over 
 20 years a propaganda has been preached for restrictions to rail- 
 road building. The chief advocates are those who at one and the 
 same time demand cheapness and denounce "ruinous competition." 
 They have been successful in convincing the greater part of the 
 ^-oters in the City of New York that a canal bringing 8 000 000 tons 
 to their wharves will be of more service than one bringing 20 000 000 
 tons. And they are hoping to prevent inconvenient competition by 
 curtailing or abolishing those appropriations for the improvement 
 of our water courses that have in the past paid profits on expendi- 
 ture unapproached by other large investments, either ISTational or 
 private. Our legislators, executives and publicists are proposing 
 plans for control which do not even suggest a reduction in the cost 
 of transportation. None of them have the courage to advocate a 
 return to our one time free railroad building, which would allow the 
 cost of freightage to be governed by the best management rather 
 than by the desires of stoclcholders. 
 
 The nation that will take our wealth from us by cheaper trans- 
 portation is not yet apparent, but its unexpectedness may be partly 
 gauged by reference to an assertion made by the late A. S. Hewitt, 
 in 1870, when our freight rate was possibly the highest in the world, 
 that England would probably continue to make more than half the 
 pig iron of the world.
 
 ^