United States. Inland Waterways Commission.

Preliminary report of the Inland Waterways Commission. Message from the President transmitting a preliminary report online

. (page 27 of 83)
Online LibraryUnited States. Inland Waterways CommissionPreliminary report of the Inland Waterways Commission. Message from the President transmitting a preliminary report → online text (page 27 of 83)
Font size
QR-code for this ebook


Westbound .


92, 626








161,239


169,325


Bituminous coal:


72, 410
5,309


24,214




6,721








77,719


30,935


Coke 6


1,637


2, 463







lEastbound and westbound, tonnage in eiich direction is not kept separately.
b All eastbound.



STATE AXD PRIVATE CANALS



257



According to the managers of the canal, railroads do not prorate
with the canal company, or with, any of the transportation agencies
operating on the canal.

Finances.— According, to the statement of the canal managers to
the Bureau of Corporations, the gross earnings for 1904 were $268,-
564.62, operating expenses $378,484.90, excess of expenses $109,-
920.28. In 1905 gross earnings were $298,937.86, operating expenses
$413,382.75, excess of expenses $114,444.89.

Tolls and towage charges. — A comparison of the canal tolls and
towage charges in the rate sheets issued b}'^ the Pennsylvania Rail-
road Company for 1906 (March 12) and 1907 (March 1) will show the
discrimination in favor of the lessee company.

In both rate sheets the regular tolls on fi-eight cargoes are the
same, as follows:





Classification.




Way, per mile.


Through.




Cents.


Mills.


First class

Second class. .. ..




per 2,240 pounds. .

do


3
3
2
1
1
1


5

5'

5
2


SI. 50
1.20






do....


.70






do....


.45


Fifth class . .




do....


.40






do...


.35







In the rate sheet for 1906 a special classification is enumerated for
articles in quantities of 30,000 pounds or upwards; for smaller quan-
tities articles were rated according to rail line Official Classification.
In 1907, the whole table of tolls is "governed by the Official Classifi-
cation."

The rate sheet for 1906 states that the tolls named "apply only to
boats and vessels when towed over the company's (Pennsylvania Rail-
road's) steam towage routes by its own steamers or contractors, and
the right is reserved to charge full legal rates, or any parts thereof, on
the cargoes of any vessels, boats, or rafts which shall violate an}^
published rules, or be towed by any tugs or teams not belonging to,
employed by, or under contract with, the lessee of the canal." It is
fm"ther provided that "when boats tow between New York and New
Brunswick, and between Bordentown and Philadelphia, other than
by the company's or contractor's steamers, the tolls on the canal will
be 50 per cent above these rates ; when towed by companies or con-
tractor's steamers on one end and by other parties on the other end,
25 per cent; provided, that such charge does not exceed 4 cents per
ton per mile." These pnndsions do not appear in the rate sheet for
1907; and apparently tliis discrimination in favor of the company
and its contractors was given up.

Boats carrying full cargoes of 5th and 6th class freight one way (in
1906 cargoes of pig iron, iron and lumber), if in good condition, are
free of boat tolls and lockage, both going and returning, excepting
way boats which are charged $1 each way for passing Wellsf alls Out-
let Lock; on all vessels and boats with exceptions indicated below,
carrying cargoes other than the above, 4 cents per mile and 4 cents
for passing each lock and $1 each way for passing Wellsf alls Outlet
Lock.



258



EEPOET OF THE INLAND WATERWAYS COMMISSION



In both rate sheets the following boat tolls are given on transient
empty boats, including lockage charge:

Boats of capacity of —

10 tons or less |2. 28

11 tons to 50 tons 5. 00

51 tons to 100 tons 6. 50

101 tons to 150 tons 8. 00

Over 150 tons 10. 00

Vessels going through light are charged $10, steamers with mer-
chandise other than full cargoes of class 4, 5, and 6 freight, are
charged $10 (in 1906 $20), in addition to regular toll on cargo.
Steamers with solid cargoes of 100 tons or more, fourth, fifth, or
sixth class freight, passing through the canal pay regular rate per
ton on cargo (and in 1906), $2.28 boat toll. The 1906 rate sheet
contains the following, which does not appear in the 1907 sheet:

When such steamers have consort in tow with similar cargo, the consort will pay
the same rate and boat toll as charged on the steamer. The same vessels returning
light will pay $2.28 boat toll. On all sail vessels loaded with vegetables, melons, and
fruit, the boat toll will be $2.28 each way.

Team towage on canal is payable to the contractor furnishing such
towage on the line of the canal at the following rates in both years:
Between Bordentown and New Brunswick boats not exceeding 150
tons capacity, $7 each way and for cargo 6 cents per ton additional.
Boats exceeding 150 tons capacity $10 each way, and for cargo 6
cents per ton additional. Between Trenton and New Brunswick,
boats less than 150 tons capacity, $6 each way, and for cargo 6
cents per ton additional. Boats exceeding 150 tpns capacity, $7
each way, and for cargo 6 cents per ton additional.

The following are the rates for both years, in cents, for steam
towage, eastbound, from Philadelphia harbor points named to Bor-
dentown, and from New Brunswick to New York and other points
named, on minimum of 100 tons:

Table 89 — Rates of steam towage, Delaware and Raritan Canal
[Per ton of 2,240 pounds]



From —



To-



Bordentown

Sayersville

Points below Sayersville (South Amboy )

Keyport

Perth Amboy

Point.s between Perth Amboy and Buckwheat Island.

Elizabethport

Newark , . .

Hudson City

Lodi, Hackensack, and Sandy Hook

Lodi and Hackensack in Lehigh boats

Bergen Point

To points between Bennetts Dock, Bay Ridge, and

Locust Grove

New York Harbor limits

Staten Island: Mariners Harbor, Vanderbilts Land-
ing, and intermediate wharves. Long Island: Ben-
netts Coal Wharf, Bay Ridge, Twentieth street, Go-
wanus. First Bridge, Newtown Creek, Washington
avenue. Long Island City. New York: East River
(Ninetieth street), North River (Sixty-first street).
New Jersey: Upper Coal Wharves, Weehawken, Na-
tional Storage Companj''s Wharf, Communipaw.



SchuylkiU
River.


Greenwich
wharves.


Port Rich-
mond (Phil-
adelphia) .


14


8


7


18


12


11


20


14


13


32


26


25


22


16


15


24


18


17


26


20


19


32


26


25


33


27


26


43


37


36


48


42


41


28


22


21


36


30


29


31


25


24



New
Brunswick.



STATE AND PRIVATE CANALS 259

It is further stated that :

The steam towing on the Delaware River will be done by Charles H. Gallagher [in
1906, John I. Brady]; the steam towing on the Raritan River and the waters between
it and New York will be done by the lessee of the Delaware and Raritan Canal. This
steam towing will be done by each of these parties as bailee for hire, and any boat may
be refused towage by them.

Boats having paid steam towage on one hundred tons or more
eastbound will, if returning empty within thirty days, be towed free,
but if loaded or partly loaded will be charged only on weight of
cargo.

Pennsylvania Railroad Control op Delaware and Raritan Canal

The Bureau of Corporations is in possession of considerable evidence
tending to show that the control of the Delaware and Raritan Canal
by the Pemisylvania Railroad has been detrimental to interstate com-
merce. Briefly, tliis evidence may be summarized as follows:

In an interview with an agent of the Bureau, a representative
of a canal transportation company at New York City, stated, in the
summer of 1906, that he at one time was engaged in freight for-
warding; that the Pennsylvania Railroad, through its control of the
Delaware and Raritan Canal, has so taxed with tolls and other
charges coal moving via that canal as to prohibit traffic in that com-
modity tlu-ough such waterway. He added that other commodities
are taxed in corresponding amounts so as to eftectually prevent
their movement via the canal, which has been practically put out
of business through these excessive charges. He further stated that
at one time a large quantity of iron ore moved through the Dela-
ware and Raritan Canal to smelters and blowers' mills in Pennsylva-
nia, l)ut that owing to the excessive charges imposed by the Penn-
sylvania Railroad this tonnage has been reduced to notliing.

A representative of the Chesapeake and Delaware Canal, also,
in the summer of 1906, asserted to an agent of this Bureau that
the usefulness of the Delaware and Raritan Canal has been greatly
impaired by the policy of the Pennsylvania Railroad. He was
inclined to think that tolls were not excessive, and in tliis respect dif-
fered from canal men in New York. His opinion was probably due
to the fact, however, that the Delaware and Raritan tolls are not ver}^
different from the tolls charged by the Chesapeake and Delaware
Canal. The principal reason, in his opinion, why the Delaware
and Raritan Canal is falling into disuse is the fact that the railroad
company neglects to keep the canal in repair, or to make necessary
improvements to accommodate it to the needs of the present-day
traffic, and to the further fact that it has erected a number of
bridges over the canal which are so low as to prevent the passage of
steamers. He continued:

A very large amount of lumber now arrives in Philadelphia from North Carolina,
moving tlu'ough the Dismal Swamp or the Albemarle and Chesapeake Canal to Norfolk,
thence by the Chesapeake Bay, the Chesapeake and Delaware Canal, and Delaware
River to "Philadelphia. A very much larger quantity would follow the same com'se if
it were possible to pass boats without unloading through the Delaware and Raritan
Canal to New York and points reached therefrom by water. Under present conditions
this traffic can not move through the Delaware and Raritan Canal without unloading
at Philadelphia and sending one-half cargoes through. The result is that the railroads
out of Philadelphia secure the haid of lumber distributed from that point.

In his opinion the Delaware and Raritan Canal, if put in condition
and properly managed, could earn a dividend of 25 per cent on its



260 REPORT OF THE INLAND WATERWAYS COMMISSION

capital. It has earned this in the past, he maintains, and can earn it
in the future. Where the terminals are both on water, canal rates
are cheaper than railroad rates by 50 per cent. He further explained
that when Mr. Cassatt of the Pennsylvania first became president
he constructed a railroad called the "New York, Philadelphia and
Norfolk" over the Delaware Peninsula from Cape Henry, for the
purpose of carrying southern lumber from the Chesapeake via Del-
mar and Wilmington to Philadelphia. For a number of years this
railroad was operated in competition with the water route, and, it is
said, at a loss. At length this particular traffic was abandoned and
the principal freight now carried by it is fruit.

This representative of the Chesapeake and Delaware Canal further
maintained, as a general proposition, that the relative cost of trans-
portation as between water and rail is in proportion of 30 to 100;
where tolls are added, 50 to 100.

Referring to the Delaware and Raritan Canal, a canal broker at
New York City stated that it is so managed by the Pennsylvania
Railroad as to greatly hinder its use by shippers. Besides the num-
ber and variety of tolls and other charges imposed, if more than one
consort is carried by tow steamers the tolls are doubled, which has the
effect of making transportation by tliis canal unprofitable in compe-
tition with transportation by rail. Otherwise shippers and forward-
ers would be able to make throurfi rates by water from Philadelphia
to Buffalo, which is now impossible.

The permits issued by the Pennsylvania Railroad Compan}^ for
boats moving through the canal are interesting. Two sets of these
permits, furnished the Bureau along with the schedule of the canal,
tend to show that different forms are employed. A yellow slip, or
pass, is evidently intended for coal barges. These coal passes are
attached to stubs, each stub giving the number, date, permit, boat, cap-
tain, tons, amount of coal, destination, shipper, tolls, and steam towage
blanks. The permit has a corresponding number, and is issued in the
name of the Pennsylvania Railroad Company on behalf of the Dela-
ware and Raritan Canal, and corresponds to clearance papers, per-
mitting the boat to pass from one point to another, blank spaces being
left for charges or tolls on lading, boat tolls, and steam towage, and
blank spaces being left for the signature of the collector, showing that
the charges have been paid or otherwise settled. A second stub pro-
vides for the name of the boat, and is evidently a pass to be given up
at certain locks. A second slip or clearance paper is printed on white
paper and is evidently intended for boats carrying freight other than
coal, the form and substance being similiar to that of the papers for
boats carrying coal.

Relation op Delaware and Raritan Canal to Raritan River

The Raritan River, according to the report of the Government
engineers, is a medium-sized stream flowing through the central part
of New Jersey and emptying into Raritan Bay, at Perth Amboy. It
is navigable to New Brunswick, N. J., a distance of 12 miles, where it
is the eastern terminus of the Delaware and Raritan Canal. The
commerce of the river is principally in coal, ores, lumber, building
material, and general merchandise, and, according to the statistics of
the Government engineers, shows a declining tonnage. The com-



STATE AND PRIVATE CANALS 261

merce in 1900 was 1,476,645 tons, and in 1905, 605,197 tons, a
decline of about 60 per cent. The Government has expended con-
siderable money on the improvement of the river. The original
and existing project for improvement, approved June 18, 1878, provided
for a channel 200 feet wide and 10 feet deep from the mouth to the
Delaware and Raritan Canal terminus at New Bruns^\dck. The
amount expended on this project up to the close of the fiscal year
1906 was almost $700,000, of which about $660,000 was used in
carrying on the work, and about $40,000 for maintaining that already
done. About two-tliirds of the work has been completed. It seems
clear that the project had in view the use of the Delaware and Raritan
Canal in connection with the Raritan River.

MORRIS CANAL

Route, physical pj'operiies, and cost. — The route or bed (right of
way) of the canal proper extends from the Delaware River, at Phillips-
burg, N. J., nearly opposite Easton, Pa., and the mouth of the
Lehigh River, tlu-ough the counties of Warren, Sussex, Morris,
Passaic, and Essex, N. J., to the Hudson River at Jersey City, in
Hudson County, a distance of about 102 miles." There are also
two short feeders — the Pompton (4 miles) and the Hopatcong (0.69
mile) — and several reservoirs. As far as can be learned, the surface
width of the canal is 45 feet; at bottom, 25 feet; and the depth 5
feet. The number of locks is 23, their dimensions being 88 by
20 feet; and there are also 23 inchned planes. The canal was con-
structed during the years 1827-1831 to the tidewaters of the Passaic
River, and continued to the Hudson River and completed for use in
1836.'' The cost to 1841 was approximately $3,400,000, and in addi-
tion the rebuilding and enlargement of the planes, locks, and improve-
ments between 1849 and 1860 cost about $1,700,000."= The schedule
of the company gives the total cost of construction to date as
$2,350,743.75. The United States census reports the total cost of
construction as $6,000,000.

History. — The Morris Canal and Banking Company, the owner of
the Morris Canal, was chartered by special act of the New Jersey
legislature approved December 31, 1824. The statute recites that
the construction of a canal " to unite the Delaware River near Easton
with the tide waters of the Passaic" would be of great public benefit
to the people of New Jersey. The company was capitalized for
$1,000,000, which might be increased by an additional $500,000.
The canal property used for navigation was to be forever exempt
from taxation, and the company was authorized to operate the canal.

To encourage the undertaking, this company was given banking
powers for a term of thirty-one j'-ears and was authorized further to
increase its capital for banking operations to an amount not to exceed
$1,000,000. (This banking power was surrendered in 1849.) The
canal was declared to be a public highway, and the company was
empowered to charge tolls for the passage of boats thereon. Finallj^,
it was provided that at the end of ninety-nine years from the passage

a Report of the commissioners appointed under concun-ent resolution [of the New
Jersey Legislature] of Mai'ch 31, 1903, to investigate and report upon the abandonment
of navigation of the Morris Canal, pp. C and 7.

b Ibid., pp. 47 and 48.

'^ Ibid., pp. 48 and 49.



262 REPORT OF THE INLAND WATERWAYS COMMISSION

of the act the State might take the canal and its appurtenances,
paying the fair value thereof, to be fixed by commissioners; and in
case this should not be done, then its charter should be continued for
the further term of fifty years, when it should cease and the canal and
its appurtenances become the sole property of the State.

By act of February 23, 1829, the company was authorized to
borrow $500,000 and mortgage the canal and other property to secure
payment, and further powers of mortgaging were given by act of
January 28, 1830. By supplement of January 19, 1835, the capital
of the company was increased to the extent of $1,000,000, and on
March 5, 1836, authority was given still further to increase it to the
extent of $600,000.

By virtue of authority given, the company, on March 29, 1830,
mortgaged the canal with other property for $750,000 to Wilhelm
Willink, jr., of Amsterdam, A bill to foreclose this mortgao;e was
filed October 20, 1841, and the foreclosure proceedings resulted in
the sale of the canal and property by a master in chancery, who exe-
cuted deed of same October 21, 1844, to Benjamin Williamson, Asa
Whitehead, and John J. Bryant, for the sum of $1,000,000.

The purchasers reorganized the Morris Canal and Banking Com-
pany, and on February 9, 1849, by. further supplement to the charter,
the legislature, after reciting the sale, authorized the reduction of the
number of shares to 10,250 common shares and 11,750 preferred
shares of the par value of $100 each. These constitute the present
capital stock of $2,200,000.«

The canal remained in the hands of its stockholders until 1871,
when by authority of a special act of the legislature passed March 14,
1871, it was leased in perpetuity to the Lehigh Valley Railroad Com-
pany by indenture dated May 4, 1871. By the terms of this lease
the lessee agreed to pay as rentals the interest on the then outstand-
ing debts of the canal company, amounting to $1,125,129.50, and
also 4 per cent per annum on its common stock and 10 per cent per
annum on its preferred stock. ^

Capital stock and indebtedness. — The amount of authorized capital
is $2,200,000, all of which is issued and is now outstanding. Of
this amount, $1,025,000 represents common and $1,175,000 preferred
stock. The Leliigh Valley Railroad Company owns $318,300 of the
common "consolidated" stock and $271,400 of the preferred stock.
The amount of bonds and other indebtedness is reported as $56,835
in scrip and $500,000 in bonds, all of which is owned by the Lehigh
Valley Railroad Company.

The Lehigh Valley Railroad Company, under the lease, agreed , among
other things, to provide for the payment, extension, or renewal of the
loans of the canal company, and the latter stipulated to execute new
mortgages as occasion might arise. Part of these obligations were
subsequently fimded into a mortgage for $1,000,000, dated August 2,
1876. The lessee was authorized to sell fTom time to time any real
estate of the canal company not required for canal purposes and to
use the proceeds toward the payment of the debts of the canal
company.

o Report of the commiseioners appointed under concurrent resolution [of the New
.Jersey Legislature] of March 31, 1903, to investigate and report upon the abandon-
ment of navigation of the Morris Canal, pp. 49 and 50.

bibid., pp. 47-49.



STATE AND PRIVATE CANALS



263



Accordingly, under this authority, sundry parcels of land were sold
from tune to time, the proceeds being applied to the debt, and the debt
was refunded and reduced, so that in 1903 the indebtedness of the
canal company, as reported by the commissioners appointed that year
to investigate its affairs, was as follows : "

Bonds outstanding secured by mortgage dated September 15, 1890, bear-
ing interest at 6 per cent, maturing October 1, 1920 $500, 000. 00

Balance of diAddend scrip unpaid 56, 597. 50

Total 556, 597. 50

Tolls and freight rates. — No toll sheet is published by the com-
pany, but the schedule of the company asserts that "rates are pro-
rated with the Lehigh A^alley RaOroad, the latter company receiving
to Phillipsburg the same proportion as if shipments were forwarded
all rail.' An anthracite coal tariff of the Lehigh Vallev Railroad
Company (I. C. C, No. D 132) issued April 23,'^1901, taking effect
May 1, 1901, gives the rate per ton of 2,240 pounds in full carloads
from enumerated points in the Lehigh and Wyoming regions to
points on the Morris Canal, routed Lehigh Valley Railroad to Port
Delaware, N. eT., and Morris Canal to destination. The tariff
sheet provides that discharging must be done by consignee. An
allowance of 10 cents per ton made to the shipper for discharging
boats was canceled April 1, 1903. The consignee in discharging is
given forty-eight hours after receiving notice of boat's arrival, and is
subject to a charge of $3 per boat per day for any delay beyond forty-
eight hours. To points on Lake Hopatcong consignee is expected to
'make arrangements for towing on the lake from the outlet lock.

The figures furnished the canal commissioners of 1903 by the canal
company regarding tolls are as follows (calculated on basis of average
of years, 1898-1903, 1902 being omitted on account of strike):^

Average freights received for all coal transportation on the canal .per ton. . $0. 654

Average freight paid captains per ton . . $0. 415

Cost per ton maintaining boats do 100

.515

Net balance .139

The annual cost of maintaining the canal is about $90, 000. 00

Average yearly tonnage, 124,452 tons, at 13.9 cents 17, 299. 00

Leaving as annual loss in operation alone 72, 701. 00

Although declared a public highway by legislative enactment, no
boats except those owned by the canal company now ply on the canal.

Gross income, dividends, etc. — The gross income of the canal com-
pany for 1866, the year of greatest prosperity, was S616,350.36. In
1871 the lease of the canal was made to the Lehigh Valley Railroad
Company. From 1872 to 1902, at periods of five years, the annual
gross income is shown in the following table:''



Year.


Gross
income.


Year.


Gross
income.


1872


1397,181.72
170,855.11
193,789.25
109,364.98


1802


$247,724.01
1G7 411 ~n


1877


1S97


1882


1902


52 076 oV


1887











a Report of the commissioners, 1903, etc., pp. 49 and 50.

6 Report of the commissioners, 1903, pp. 35.

c Compiled from report of commissioners, 1903, pp. 30 and 31.



264



BEPORT OF THE INLAND WATERWAYS COMMISSION



The gross earnings for 1904 and 1905, as reported in the schedule of
the company, were $96,231.27 and $86,155.02, respectively. During
these two years the expenses were $162,442,31 ana $163,658.54, leav-
ing a loss in 1904 of $66,211.04, and in 1905 of $77,503.52. During
these years, however, the payment of dividends on the capital stock
was maintained by the Lehigh Valley Railroad Company. These pay-
ments amounted to 10 per cent, or $90,360, on the preferred, and 4 per
cent, or $28,268, on the common or consolidated stock. No payment
of dividends was made by the Lehigh Valley Railroad Company on
stock held by it, nor on the scrip or bonds of the canal company, all
of which latter are owned by the railroad company.

4- Taxation and assessment. — According to the annual report of
the State board of assessors of New Jersey for 1905, the valuation
and assessment of the Morris Canal for State and local uses for that
year was as follows:

Assessed valuation except for real estate used for canal purposes other

than waterway and tangible personal property $2, 781, 000. 00

Assessed valuation of tangible personal property used in State com-
merce 63, 046. 00

Total assessed for State uses 2, 844, 046. 00

Assessed valuation of real estate for canal purposes other than waterway . 448, 667 . 00



Online LibraryUnited States. Inland Waterways CommissionPreliminary report of the Inland Waterways Commission. Message from the President transmitting a preliminary report → online text (page 27 of 83)