Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-08-15
HOLDS WATERWAYS
Vital. TO MIDWEST
Barrier of Railroad Toll
Gates Must Be Severed,
Says Hoover.

HAMMOND Ind. August IA
Shifting of economic currents by the
World War coupled with construc-
ton of the Panama. Canal, have in
creased railroad rates and erected Il
barrier of tollgateS round the Middle
West which must be severed by
waterways If the farmer is to win
back his advantage in the markets
of the world, Herbert Hoover. Secre-
tary of Commerce, told an audience
here tonight. He spoke before the
Calumet Seaways Association.
Pointing oM that the settlement of
the Middle West was due peculiarly
to its natural waterways. but that
railroads subsequently superseded
lakes and rivers as avenues OF trans
pOrtation. the Secretary declared that
the West has now reverted to Ii
status in which the rivers and lakes
can serve again with profit as car
riers of agricultural and industrial
products TO the seas.
Until waterways restore the eco
nomic equilibrium of the West. said
Hoover, inland America will ind her
self handicapped in the journey to
sound prosperity.
Cheaper Transportation Vital.
utA necessarily ADVANCE All
railroad rates as IL result of realign-
ment of values from the war puts IA
row of tollgates around the Middle
West" said the Secretary, which, to-
gether with the completion of the
Panama Canal and with ocean rates at
the low pre-war basis. combine to dis
tort the economic setting of this whole
section.
1T has placed Midwest agriculture
and industry in a new relation to diff
ferent parts of our country and to
world markets. The shift and the I'M
evenneSS in advances works to the
great disadvantage of the Middle
West. II we would restore the old re-
lationshipS we must find fundamental
ly cheaper transportation of what we
export and import.
The change has caused certain
types of Midwest business to migrate
to Seaboard. 1t steadily tends to es-
tablish manufacture nearer to sea
board and farther from the heart of
agriculture, to the mutual disadvan.
tage of both. This disturbance. how
ever. affects agriculture more deeply
than industry. Our competitive agri.
culture lies largely in the Argentine
Australia and India. They are nearer
to seaboard and ocean rates remain
the same. These foreign farmers reach
European markets at less cost in pro-
portion to pre-war than our Middle
Western farmer.
One Cause of Farm Crisis.
This is one of the contributing
causes of the farmers postwar diff
Guilty. 1t is not the whole cause nor
the sole remedy, but we can contrib
ute greatly to remedy this situation
by Improvement of our waterways"
Three forces. Hoover pointed out,
make it possible to reconsider water
ways as the avenue of cheaper
transportation for many kinds of
gOods-the economic distortion Of
the Midwest from war increases of
railroad rates. the advances of en-
gineering in deepening channels and
improving craft and the increased
national wealth which permits eX-
penditureS for great undertakings.
Two major inland waterway sys-
tens are obviously susceptible to de-
velopment. he declared-the Missis-
sippi system and the Great Lakes
system.
Must Provide for Future.
Tracing the possibilities of these
routes and the steps necessary TO
make them operative. the Secretary
pointed out that the expenditure
must be put into transportation for
the Midwest within the next %
years TO provide for the 40,000,0o0 in
creased population 1t will have.
I'VE must either build more trunk
lines of railroads in States which can
be served by waterway systems, or
we must improve our waterways TO
take part of the burden. / believe
any study of the comparative capital
outlay will show that to duplicate the
capacity of the completed Mississippi
and Great Lakes system by rails
would cost three times as much as to
complete the waterways"
The Secretary explained the
economy% in freight costs offered by
water development. declaring again
that increased railroad rates en-
phasized the possible saving.