Omaha daily bee., 1910-01-25
RIVERS NOT FOR RATE WAR
Commission Against Improvements
Merely to Hit Railroads.
FRowNs ON TOLL SYSTEM
Report Holds that Federal Govern
ment Has no Proprietary Right
An NaviEabIe
Streams.

OF local as we'll as general interest in the
preliminary report OF the National Water
ways commission submitted to congress
today. The report is based upon a com
prehenfive investigation In this country
and abroad and will be followed by a sub
segment report with further recommends
tons.
This preliminary report recommends,
among other things, a general plan Of con-
servation Of water power, with the shap-
ing Of projects in the light OF future needs
OF streams; resort TO federal and state leg
islation rather than to unnecessary chan
mel Improvement merely 10 enforce reduc-
ton OF railroad freight rates, with inhibi-
tion, on the other hand, OF manipulation
OF such rates to freeze out water competi-
ton; a uniform system. Of distribution OF
cost Of waterway Improvement between
federal. state and local governments avoid
ance Of multiplication Of ports; restriction
of dam construction permits, inauguration
Of such waterway projects only as can be
completed within a reasonable time; a fed
eral tax on power furnished to consumers
reservation by the government Of power to
alter or repeal power rights.
FrOVvns on Toll Charges.
1hN NOAAAllllbblOn NOUS NnaI the federal
government has no proprietary light or in
terest In n~avigable waters, which would
authorize the collection Of tolls. 1t be-
heves that each consent to construct a
dam should provide that the grantee when
ever necessary to subserve navigation in
terests must construct and furnish power
Tor a lock suited to the locality and to
probable traffic development. Such re-
quirements are claimed to be free from
legal objections which might be maintained
against a system of tolls.
Power developed at government dams for
navigation or irrigation purposes should
be utilized and adequately charged for.
The commission recommends that before
the granting Of rights to construct dams in
any navigable stream, the whole stream. or
at least such parts as will be affected by
the proposed construction should be care
fully surveyed, that II constitutional author
ity therefore exists these grants should
authorize the secretary Of war or other
official to regulate the charge for the power
furnished consumers and should expressly
reserve to congress the right to alter,
amend or repeal
Rates Not Primary object.
While not denying the tendency OF river
improvements to lower railroad rates. the
commission holds it undesirable to expend
money upon river channels solely for this
ERECT upon such rates. The fundamental
criterion, 1t says. should be whether a
railway or a waterway, when constructed
or improved, Will be a profitable invest
ment. Pointing ont that the railways have
temporarily reduced rates and continued
them upon a lower basis until competing
water lines have been driven out of bust
ness the commission recommends that when
a rate is once thus reduced by a railroad
1t should not be permitted to raise again
unless after a hearing by the Interstate
commission or,.other competent
body'ft should be found that such proposed
Increase rests upon changed conditions
other than the elimination or decrease of
water competition.
Railways and Water Lines.
The most essential requirement for the
of water traffic is asserted
to be the establishment OF harmonious re-
iations between railways and water lines.
In practically every case OF water routes
the boats are operated, the report says,
in connection, and in harmony with rail-
way lines. The commission believes the
transportation facilities will be still fur
ther promoted by compelling joint rates and
pro-rating agreements, through bills of
aiding and physical connection between
rail and water agencies. separate ware
houses and terminal systems for railroads
and waterways being often a waste of
Terminal and wharfage charges
be reasonable regardless of the
ownership OF these facilities.
The commission cannot see its way clear
to recommend a general power to fix
minimum rates, but a majority Of the com
mission would the
Interstate Commerce commission to pre-
scribe minimum railroad rates whenever
in its opinion the object Of a railroad in
reducing rates is to decrease waterway
competition.
Communities Must Cooperate.
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