The Birmingham age-herald., 1923-03-10
HOW OUR TONNAGE GROWS

HOW OUR TONNAGE GROWS
 When the present schedule of rail rates was fixed by the Interstate Commerce Commission, they were expected to enable the roads to earn an interest on their in- vestment of approximately six per cent, the figure established by statute. Very soon it was realized that, heavy as the rates were, they were not bringing in an income suf- ficiently large to meet the expectation. This was principally due to the great falling-off in tonnage occasoned by the depression and decline in production of 1920 and 1921. It was also partly due to the reaction against the high rates. Some roads made tentative reductions for the purpose of stimulating business, and it is inferred from the fact that the rates were not later again increased that the reduction at least did not result in decline in income.
 The year 1922 showed pronounced and steady improvement in both tonnage and earnings. One great railroad serving the South announces that its tonnage was only three per cent under that of it's peak year, 1919. The same railroad stated that the business for May and June of 1922 reached a total never before attained by that road for any like period. Reports coming from Washington show that for the railroads of the entire country the business of January was more than twice that of January year ago, and would mean if continued through the year an average earning for all roads of 5.54 per cent This is very encouraging to the country in general, for it means that the rate set by the federal commission Is now adequate to meet the congressional stipula- tion as to earnings to be allowed the rail- roads. Indeed, it is believed that the time is not far distant when readjustments and economies in operation in conjunction with heavy traffic will make it possible for an actual reduction in freight rates to be made in the not far-dstant future. The result of such decrease will probably be to stim- ulate the transportation volume still more.
 Aside from the consideration that all this heavy tonnage is the direct result of heavy production and heavy demand for raw ma terials, it is noted that the railroads are enjoying this increased business in spite of an unprecedented 'haulage by canals and in land waterways, and in spite of a heavier coastwise traffic by steamship than ever known. The situation supports the view of those who have held that the very develop ment of the waterways would create busi- ness even greater than that they themselves handled, and that the net result would be an actually increased rail tonnage which the railroads owe directly to waterway develop ment.
 It is logical to infer that our total tonnage will continue to increase and our transpor- taton needs to intensity for many years to come. Our population is increasing; our industrial development is expanding; our exploitation of hitherto untouched resources is being extended; our own requirements of manufactured articles is growing and be- coming more complex; the world market is showing demand never before experienced, except for the short period of war demand, and in every way there is being developed a necessity far transportation facility be- yond precedent. Railroads in territory hith- erto not especially productive are finding such tonnage expanding, and are also draw ing patronage that has arisen chiefly from the greater diversity of routings to seaboard and the more equal opportunity given to 2 larger number of ports. The remarkable part of it is that even those roads, for merly specially favored by long hauls, that have now divided tonnage with other lines seeking nearer ports evidence no suffering because of the general tonnage growth.
 The prospect is that this expanding need for transportation will continue, and there fore there is all the more reason why the development of waterways and barge service should be pressed to a more complete ser vice, in order that they may play their in- dispensable part in our great industrial and commercial drama.