The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-01-18
ASHBURN CHARGES
Ice. HAMST RINGS
WARRIOR SYSTEM
Inland Waterway Chief ChaI-
lengeS Statement Of Secre-
tary of War--Points to
Need of Modernization
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Der, which is the last report which I
have before me, it exceeded $40. ..
The bulk commodities which we
carry on the Warrior river, such as
coal, steel ore, sulphur, etc. require
steel barges. If the wooden barges
are used it is easily seen how the
shock of loading and unloading great
loads tear them to pieces.
What Mr.. Brent and / have in
mind is the ultimate development of
the Warrior river (by the expendi-
ture of 100000, which might be
spread over the next four or five
years. into a fleet consisting of II
vessels, 25 as indicated above 40
steel merchandise an coal barges to-
gether with necessary power boats
t5), which would give us an esti-
mated carrying capacity of $3.50
tons. When this fleet is carried to
completion with 81 1000, 600 to be
placed at our disposal, we would
have an estimated earning power
biased upon carrying 10000 tons
month at So per tom of $50, 900
monthly.
Estimated Operating Expense
1.-THE estimated operating expenses
would include five line towboats,
maintenance of one reserve towboat.
two tugs to relay between Mobile and
New Orleans, renewal of hatch
covers. depreciation on barges, char
ter rental on barges, terminal cost on
$1,000 tons of merchandise at s1.10
per ton, handling cost at terminals
on coal at 17.75c per ton, traffic and
general expenses, allowance of 1000
for incidental expenses, total
monthly expense of $70860. The es
timated net profits per month, under
these conditions, would be s9,140. or
approximately $4,000 year.
please bear in mind the fact that
under the present rate of division be-
tween the railroads and the water
carriers the average revenue per ton
on the Warrior river is only about 81.
With any sort of a fair division, this
revenue per ton should be increased
at least SO per cent, giving us net
earning of SO per ton; in which case
the total net profits would be in
creased by SO per cent or be approx
mately $4,000 per month, or In the
neighborhood of s16S.o00 a year.
THE Value of the fleet as 1t stands
today is about million dollars. An
other million added to it gives a re-
placement capitalization of 100000.
A profit therefore on this investment
of 100000. of s1eS,000 per year is
S.4 per cent, which would be net
profit, over and above depreciation
charges;
I'm addition to this, I desire tc in
vite your attention to the fact that
the public is saving approximately
s1.S5 per ton on every ton that is
carried down the Warrior river. II
we therefore carry, as we figure,
So. sc
year the net saving to the public
would be $f.s5 times $50 600. or $685.
eco. 1t seems to me that under these
conditions the Warrior can be made
very profitable investment.
River Basis of Operations
Another thing that / think should
be borne in mind Is that the War
rior river is the basis of the coal
operations of Alabama. We serve
several mines that are not served by
railroads. The Paynes Bend Mine has
daily output of 500 tons, which
is served by us. The Daniel Duffy
Coal company has daily output tf
100 tons, served by us; and the King
Mine has daily output of $50 tons.
served by us. The daily output Of
the mines served by this service is
$50 tons.
"The steel that goes out of Bir-
minghan for distribution throughout
the United States is distributed to
the consumer at lower prices
throughout the United States, due to
the fact that the steel company at
Birmingham is utilizing this service.
sulphur and manganese ore con-
sumed by the steel companies form
a very large amount of traffic up
stream, and aid the steel mills in the
/ i 4. i
THE people along the Warrior
river, who would ordinarily seem TO
be entitled to the benefit of this
river. are getting nothing from it.
| The present rulings of the Interstate
| commerce commission are such that
/ those points where we have estab-
| lished terminals, such as Demopolis,
| Tuscaloosa, etc, are getting prac-
| tically no benefit from this river.
Now on any river which is used
/ as national artery of commerce,
as the taxpayers have spent their
money to develop it, they are enti-
| tied to get some benefits from it.
| The people who live on the banks
| of the Warrior river get a very linn
tied benefit from it because in those
| places where the Warrior would
seem to be of service to them, as
| in movements from port to port,
the commerce is very limited. 1t is
! joint rail and water facilities which
they need
Sees Benefit to xAI.
There is no reason in my mind
/ why, if the interstate commerce
commission should extend the terri
tory for interchange rates, allowing
/ shippers from the interior to ship to
those various river ports and thence
/ downstream for distribution or ex-
] port, or up the river for distribution
! in the interior, everybody should not
vastly benefit by it. There can be
| no argument that the Warrior river
is benefiting the people of the War
rior river exclusively. 1t is not
benefiting anybody to any extent
now. But it has potentialities for
benefiting not only everybody along
the Warrior river. but all through
those sections Of the United States
which might be covered by inter-
! change rates, il the divisions OF
revenue are fair.
In this connection, please allow
me to bring to your attention the
advantages which the Mississippi has
over the Warrior under the present
ruling of the Interstate commerce
commission. Most of the export
goods from the northern. eastern and
western part of the United States
which go down the Mississippi river
at all, go either to st. Louis or Cairo
thence by river to New Orleans. The
fdistance hauled by the Mississippi
service compared to the distance
hauled by the railroads, to deliver
commodities to the Mississippi serv-
ice, is so much greater that, although
the earnings per ton mile of the rail-
roads out of the joint revenue are
comparatively high, etill we have sc
many tone miles due to the long dis