The independent. [volume] (Elizabeth City, N.C.) 1908-1936, 1923-06-08
STATE SHIPS
WILL NOT PAY
SO Declares Former Congress
man Jot.l H. Small

operation Of steamboat lines
md laid his reasons f:,r such
opposition before the North
,arolina Ship and Water
transportation Commission at
it's hearing in Washington, n.
{. on June 6. Mr.. Small's
views will be Of unusual inter-
.cst to Elizabeth City people.
I'he Commission meets i'll ElIz-
abeth City today, Friday, June
g.
Mr.. Small says in part:
IL respectfully submit the PROPOSE
ton that il would be both unwiSc and
impraticable for the State to engage
N water transportation by the owner
ship and operation of boat lines. Some
If it's reasons which impelled me to
this conclusion may be summarized:
"(a) Our North Carolina ports are
not provided with adequate water
terminals. Such terminals are cS-
scntial for local traffic. that is to
say. traffic which originates at some
water point and destined for another
water point. Again. water transport
alton cannot be made successful cX-
cept by interchange of traffic between
boat lines and rail lines carried on
through bills of lading by a system
of pro-rating based on joint and pro-
portional rates. Such interchange OF
traffic must be predicated upon the
existence of adequate terminals at
the point of transfer in order that
the transfer may be made nj Il mini
mum of cost and time. 1t is probable
that boat lines cannot be made prOfi-
table except under an interchange OF
traffic with the rail lines.
"bI The initial cost of the ships
will be large. The cost will be less
for boats operating on the inside route
to and from Beaufort and Morehead
City and Elizabeth City and inter
mediate points because of the lesser
cost of bargeS and twO-bOats and of
exclusive freight boats propelled by
their own power. Boats operated to
and from Wilmington would be- OF
more expensive type because they
must go out of Cape Fear River into
the ocean and around Frying Pan
Shoals, and thence either through
Beaufort Inlet to the IntracOastal
Waterway or else all coastwiSc and
subject to the menaces of Cape Look
out and Cape Hattcras.
"(c) Successful transportation
would require an organization fulfill
ing the two primary purposes of man
agemcnt and operation of ships and
administering the traffic phases of
the business. Each of these require
men of intelligence, training and skill
and each are separate and distinct
phases of water transportation. For
instance. the traffic departlnen. must
be capable of dealing with thc State
and interstate commissions Oh trans
pcrtation and with the trained traffic
officials of the railroads. Success
would depend upon properly equipped
mon in each of these departments.
"d) There seem to be inherent
problems and difficulties in tranSpor-
tation, which. with few exceptions.
have brought failure to all attempts
by the government to engas" in the
business Of transportation. In dis
cussing such handicLps we are con-
frontcd with conditions AMI not
theories. Let us cit, first railroad
TRANSFORMATION. North Carolina in
tn, past vcntured upon the expert
mcnt of owning and operating rail
roads. 1t is quite probable that no
one will contend the experiment was
successful As a War measure, the
government of the United States took
over the railroads of the country and
operated them for several years with
full powers and ample financial re-
sources. The venture was not sue
ccSSful, either from the standpoint of
operation and service rendered, or
from the standpoint of profit. In
other countries where the railroads
have been nationalized in whole or
in part. like unfavorable results have
followed. In no country has it been
sue. asSful Even in Germany where
trr 81, ernmcnt ownrd and controlled
the railroads. and olso regulated rates
by water, and which was regarded DE
many as a success for several y"ars.
tie venture now constitutes one of its
greatest economic burdens. Very
recently negotiations have been in
progress for the transfer of the gov
ernment owned railroads to private
ownership. l think the concensus of
intelligent opinion the world over
points to the conclusion that railroads
as public utilities should be owned by
private capital and financed and
operated under public regulation.
Such ventures as have been made
by governments in water transporta-