The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1910-09-01
MEAN LOWER RATES
EFFECT OF WATERWAY COMPETE
TON ON THE RAILWAYS OF
THE COUNTRY.
DIRECT AND INDIRECT SAVING
Conservative Estimate Is That In
Single Year It Would Be Moro Than
Enough to Discharge the Entire Ma
tionaI Debt.

It Was stated In q previous article
that waterways produce both direct
and Indirect savings in the cost OF
transportation and also exert what
may be called CT eative effect. As
an instance Of the direct saving It
was shown that the 100000, 900 tons Of
freight handled on the great lakes
in 1907 were carried for $3.50. 100000
less than 1t would have cost by rail-
If the opinion of the United States
army engineers is cofTect-and this
opinion Is based upon results actually
achieved on the rivers of Europe
we have number of rivers on which,
when properly improved. freight can
be carried for less than on the lakes
and many rivers on which it can be
carried for much less than by rail.
If, therefore, the plan advocated by
the National Rivers and Harbors
congress should be carried out-which
includes the Improvement of all our
rivers to such extent as shall be found
advisable after expert examination
the direct saving In cost of Transports
ton would be vastly increased. It
would probably be increased tenfold,
but If 1t were only doubled the direct
saving in a single year would be more
than enough to pay off the national
debt
But this is not the end Of the bene-
fits which the general improvement of
our watarwayc would hri,g u 4, on1,,
the beginning. Beside the direct saw
ing there is an indirect saving which
results from the effect of waterways
On railway freight rates, for rates
are always lower on railroads which
meet water competition than on those
which do not. The amount of this saw
ing is not everywhere the same, owing
to difference in conditions, but we
can get good general idea Of it from
a study of some sample Instances.
Freight Rates Affected.
Freight rates from New York to
Salt Lake or Spokane are much high
er than to San Francisco or Seattle,
although the distance is much less, be-
cause goods can be carried to the Pa
ciflc coast by water, around Cape
Horn, while there is no waterway CT
any kind to the inland cities named.
1t is not the ocean alone that affects
railroad rates. Compare the rates on
first class merchandise to river towns
and inland towns situated about $50 |
miles from st. Louis. Towns on the
upper Mississippi get a rate of 80
cents hundred, inland towns pay SO
cents; towns on the Ohio pay Al cents, |
inland towns In the same region
pay 81.
still more striking instance, and I
,ne showing the direct result Of wa
-erway improvement, is to be found /
IN the Columbia river. Before the
ocks at the cascades were built !
'reight rates on nails, and that class I
u goods, from Portland to The Dalles (
we're $40 per ton AS soon as the t
ocks were finished and the steam
boats could get through, the railroad
ate dropped to two dollars per tom
ess than one-third what 1t was before.
That the difference was due to the
liver Improvement is shown by the
act that rates were not reduced be-
-ond the point to which the steam
'oats could run. For instance, the
ate on salt in car load lots was $3.50 I
'er ton to The Dalles, and 5000 per
on to Umatilla-$ 1.50 per ton for the
8 miles with water competition and
$40 per ton for the next 100 miles
Without. These rates have since been
educed as the Improvement has pro