Omaha daily bee., 1921-07-26
Bv VICTOR B. SMITH.

| to market.
BY VICTOR B. SMITH.
Shipping by water has two possible advan
| 1t may be cheaper; it may avoid delays in con
gested terminals. If the Great Lakcs-to-O Ocea,
water highway to be made possible by the i'm
provement of the St. Lawrence river is to prov
its worth as a shipping route, it must NEE
these tests. If it does meet them, if it promise
lower freight rates from Great Lakes ports t
Europe or to the Atlantic seaboard, with equa
or shorter shipping time, then it gives hope o
increased prices for the products Of western
states which are now embarrassed yhigh trans
portation costs.
The most exhaustive investigation of thi
question has been made by Roy S. MacElwe,
and Alfred H. Ritter economists who rank al
engaged III their study with open minds, seek
ing only the conclusions which the facts nigh
Justify. The facts here presented are drawr
from their report, which covers in all nearly
800 printed pages.
After presenting tables as to distances b,
economists report:
The above shows that the rail distance be-
tween San Francisco and New York is 3,l9l
miles and the water distance by way Of the
Panama canal is 6,059 miles. the former being
s. per cent of the latter. The tolls on vessels
about 50 cents per ton Of cargo but the rail-
roads have been unable to compete with the
water route. Rates by rail have been as
much as 200 to 300 per cent of the water rates
and the rail traffic has been largely con-
fined to hgh-cass goods on which the saving
use of the quicker but more expensive route.
The distance from Seattle to New York
by rail is 3.l36 miles. while the distance by
water is 6954 miles, the rail distance being As
per cent OF the water distance. Large auan-
titles of grain and -four are carried from Seat
also the United Kingdom, Scandinavian and
Mediterranean ports. During the fiscal year
ending June 80, 1920, total Of 100 vessels
carried grain eastward through the Panama
canal. In the past goods have been carried
from the Pacific coast to New York by vessel
and sent long distances inland for less cost
than the same goods could be sent direct by
rail from the Pacific coast The Great Lakes
St. Lawrence waterway will extend the bene-
fits of cheap transportation to the Trans
Mississippi territory, which has been placed
at a serious disadvantage by the influence Of
the Panama canal.
From Chicago to New York is distance
Of 912 miles by rail and 2o26 miles by water.
There can be no reasonable doubt that high
class freight can be carried between these
points by water at less cost than by rail. The
present rail rate on fresh meat from Chicago
to New York is 9311 cents per hundred
pounds. or $3.50 ton. 1t is carried from
New York to Liverpool distance Of 3,s7s
statute miles. for 81 per hundred pounds, or
$40 per ton. and the vessels made handsome
profits at this rate. 1t could be carried by
the St. Lawrence to New York for Is cents
per hundred pounds and afford the vessel
large profit on the business.
From Duluth to Boston is distance of
1873 miles by rail and 2,775 miles by water.
From Cleveland to Boston the distances are
682 miles by rail and ,964 miles by water.
Wool, hides. salt, copper, iron, steel. etc,
could be carried to Boston and vicinity by
water at large saving as compared with the
haul between Duluth and Boston is more ia
vorable to the use of the waterway than is
the relation of rail to water haul on the
Panama canal route between the Pacific and
the Atlantic.
Further, Messrs. MacElwee and Ritter state: ::
Present rates show costs per ton from
Chicago to Liverpool (by rail to New York
and sea to Liverpool Of $3.50 on agricul-
tural implements. $3.50 on clothing, $l4oO
on grain and 5000 on meats. The rate on
grain from upper lake ports to New York by
lake and rail is approximately l8H cents per
bushel, or 31.8 cents per hundred pounds, in
Guiding elevator charges at Buffalo. The lake
rate to Buffalo is about 4 cents per bushel,
and If the st. Lawrence were open to lake and
ocean vessels the rate for carrying grain as
far as Montreal would be about cents per
bushel on present costs.
1t would therefore be entirely feasible to
get the grain as far as Montreal, distance OF
3,2O7 statute miles from Liverpool, at saw
ing OF to IL cents per bushei. as compared
with getting it to New York, 1878 miles from
Liverpool. Since the cost of transferring
grain to ocean carrier at Montreal
would not exceed | cent per bushe there is
clearly an opportunity for net saving of s to
10 cents per bushel, utilizing the lake vessel
as tar as Montreal As shown elsewhere,
however the greatest economies will result
from shipping direct in ocean vessels Carrying
well balanced. cargoes consisting of proper
proportion: Of grain and high-class freight.
Comparing the present rail and ocean rates
from Chicago to the United Kingdom with
ocean rates from gulf ports, which are as
sumed to be equivalent to the probable lake
rate, it will be seen that a very great saving
will be effected by the proposed waterway
On agricultural implements a saving Of IS
cents hundred is indicated on meat75 cents
hundred and on clothing probably 81 hun
dred.. Grain is carried from gulf ports for so
cents hundred while the rate through New
York from Chicago is 70 cents hundred,
indicating possible saving of 13 cents a
hundred. Steel from Gary to the United
Kingdom via New York takes a rate of SLIP
hundred. It can be shipped from gulf ports
for "a cents hundred and similar rate
would probably be feasible direct from Gary
by vessel.
(Tomorrow's article will continue this dis
cussion of freight rate savinss)
"ponf' fsoAs Anofh>r Ds~;6et;e pAr,h