United States. Inland Waterways Commission.

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

. (page 37 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 37 of 83)
Font size
QR-code for this ebook


except such shipments as it makes to its own warehouses at Louisville,
Memphis, and New Orleans in barge lots by the Monongahela River
Consolidated Coal and Coke Company. The former refuses to ship
by water even when requested to do so by the buyer. This asser-
tion receives some confirmation from the following statements made
in the company's Schedule No. 12 of through, freight rates, effective
January 1, 1907:

The within are the lowest rates obtainable via all-rail lines. * * * Exception :
To iJoints shown herein, not located on any railroad but reached via water, the rates
given apply via rail and water, but no rail and water rates are shown to any points
which can be reached without water transportation.

The river rate by packet on wire nails from Pittsburg to Catletts-
burg, Ky., is 11 cents per hundred pounds for quantities less than
20,000 pounds, and 8 cents per hundred pounds in larger quantities,
and the rail rate in force in May, 1907, was 16^ cents, less than car-
loads, and 13 cents on carload lots. Other instances of the same
kind can be ascertained by comparing the tariffs of the packet lines
with the schedule of freight rates above referred to. It should be
added that the Steel and Wire Company does not itself make these
rates, but publishes the rates of the railroads. The packet lines get
some shipments from the American Steel and Wire Company to those
river points not reached by railroad. The American Steel and Wire
Company also ships in its own barges steel billets from Pittsburg to
its mills at Rankin, Pa., by water, besides carrying coal to its various
mills by. water.



332



REPORT OF THE INLAND WATERWAYS COMMISSION



Prior to the building; of the division of the "Frisco" Railway
between St. Louis and Cape Girardeau, Mo., the Eagle Packet Com-
pany had prorating arrangements on much tlirough business by way
of the latter point, but since the line was completed the railroad has
discontinued the prorating arrangements and the Packet Company
can get no other arrangements with railroads at St. Louis.

The prorating between the Arkansas River Packet Compam'- and the
railroads was given up at the beo-inning of 1907. According to the
packet company the railroads, after taking shipments of cotton for
the East and for export, would cause delivery to be delayed after they
had loaded it on cars from the boat line, and would hurry their own
shipments to attract business to the railroads. The boat line had
to pay the same rate as other local shippers.

insurance. — The following illustration shows the effect of cargo
insurance rates upon the packet lines. Referring to a proprietary
medicine made in Pittsburg and having a large sale in the South, it is
said:

Suppose the company has a shipment of 50 boxes to make, a shipment of this size
weighing 2,000 pounds. The shipment is from Pittsburg to New Orleans. The rail
rate on this is §1.05 per hundred pounds, or §21 for the lot. By the water lines, the
through. rate was originally 70 cents per hundred, or §14 for the shipment, making a
difference of $7. The co'mmon-law liability of the railroad makes it practically an
insurer of the freight, so the shipper has nothing extra to pay for that. By the river,
however, the insurance on such a shipment would be §5.25, reducing the advantage
of that route to $1.75 per ton of 50 boxes. This advantage was not sufficient for the
river lines to hold the business and they were compelled to reduce their rate to 60
cents per hundred, and at this rate they held the business.

Another route on the shipment to New Orleans was by rail from Pittsburg to New
York, and thence by steamship to New Orleans. The ocean line had an advantage
in insurance rates, paying one-fourth of 1 per cent and the river line 11 per cent,
the difference on the shipment of 50 boxes amounting to §4.20.

The following statement shows the cargo insurance rates for barges
on the Ohio and Mississippi rivers:

Net insurance rates on straight lots of railroad iron, pig iron, blooms, and pig had from

Pittsburg. Pa.



Destination.


Class No.l.


Class No. 2.


Class No. 3.




Per cent.

0.33J

.50

.60

.60


Per cent.

0.40
.60
.72
.72
.80

1.00


Per cent.
0.50




.75




.90




.90




1.00




1.25







Note.— From other points in above proportion, as per tariff.

Net insurance rates on nails, bar iron, vire, ploirs, and cotton ties from Pittsburg, Pa.



Destination.


Class No. 1.


Class No. 2.


Class No. 3.






Per cent.

0.40
.60
.72
.72
.80

1.00


Per cent.
0.50
.75
.90
.90
1.00
1.25


Per cent.
0.75


Cairo


1.00




1.50


St Louis


1.50




1.75




2.00






Note.— From othei


point.s in above proportion, jis per tarilT.









RELATION OF WATER AND RAILROAD RATES 383

According to Mr. W. H. Flint, of Pittsburg, Pa., the river insurance
rate on coal cargoes to Cincinnati and Louisville, which was formerly
2h per cent, has been advanced to 3i per cent, and is practicalh' pro-
hibitive. Few, if any, of the coal companies now carry insurance.
The larger companies set aside a fund to cover losses. The rates
mentioned cover the risk only while the coal is in transit.

According to Mr. H. A. Adams, manager of the marine depart-
ment of Mehle & Kausler, general insurance agents, New Orleans,
La., most of the river boats carry hull insurance, but few have
insurance for more than two-thirds of the cash value, and some
take insurance for about one-half of the value. Some boats insure
for part fire risk and part marine risk. For the fire risk only, cotton-
carrying boats pay 3 per cent premium, and other carriers 2h per cent.

According to j\Ir. Walter J. Ferguson, president, Marshall J. Smith
& Co., Limited, an insurance agency at New Orleans representing
various companies:

Most of the river boats carry hull insurance and some carry a "blanket" policy
under which a shipper may have his shipment insured, the risk attaching upon
indorsement of same upon the bill of lading by the clerk or agent of the steamboat
company. Insurance effected in this way is for the convenience of shippers at remote
points. Other shippers or consignees place their insurance directly with the insur-
ance agency and pay the premium to the insurance agent. Most river shipments
are protected by insurance.

The premium rate varies with the risk incurred. The lack of improvement of the
rivers, difference of the natural conditions of their navigability and the danger
attendant on such conditions are reflected in the insurance rates. For example, little
improvement has been made in the Red River. It contains many snags and bars,
and boats running in that trade are in constant danger of loss. Thus rates on that
river are high.

River freight rates are affected directly by the rate of insurance. To attract busi-
ness to the river route the freight rate of the steamboat must be sufficiently under the
rail rate to allow for the insurance premium, particularly at points where there is rail
competition. Thus, at Vicksburg, Miss., the steamboat freight rate on cotton to New
Orleans is 75 cents per bale and the insurance rate is about. 20 cents (this depends on
the value of the cotton), which aggregates 95 cents per bale as the cost of transporta-
tion . The rate by rail from Vicksburg is .SI per bale, leaving the boat an advantage of 5
cents, which is most frequently more than offset by the cost of drayage to and from
the steamboat landing.

Many shippers by rail effect insurance on their own account, preferring to have
such direct insurance rather than rely on the common-carrier liability of the railroad
because of the vexatious delays to which railroads subject them in case of lass. By
this practice the shippers have a double protection, since they do not relinquish the
right to go against the railroad in case of loss, but in such cases, when the insurance
company has paid the loss to the shipper, it is subrogated to his rights against the
railroad. The insurance rate by railroad is considerably less than the rate by boat.
Probably all the railroads entering New Orleans insure their risks through large New
York insurance brokerage concerns.

Insurance companies have reduced their rates from time to time as far as has been
possible in order to help the steamboat lines. The success of the steamboat means
prosperity for the insurance company. As an example of the reductions that have
taken place may be mentioned the hull rate on the Red River, which was 18 per cent
in the '' palmy' ' days and is 13 per cent at present. Cargo insurance in the same
territory was formerly 2 per cent aiid is now nine-tenths of 1 per cent. Cargo insurance
from Vicksburg to New Orleans was fonnerlySl per 5^100, and is now 60 cents per §100.a
The reduction in rates is especially-woticeable in the tariff premiums on cargoes and has
been brought about directly by the competition of railroads.

On the Red River, cotton rates to New Orleans, insured, exceed
the uninsured rates by 25 cents per bale.

oThe tariff of river premiums adopted by the Board of Underwriters of New
Orleans, January, 1903, gives a rate of 40 cents per $100.



334



KEPORT OF THE INLAND WATERWAYS COMMISSION



•(I3AU) sp-BOI

-iTso 'laqnin'j



ooooooooo



|000 o oo

■ O C^ 03 CJ C3 o



'OOOO ;0000



■(J3AU) Sp^Ol

-JBO '•oja 'Ji^s



O 0000^*0000

lo id iO u:5 u5 ui lo X 00 00



oo OOOO
I QC 00 00 00 00 00



•OOOO
• GiGi GiOi



'OOOO
'OOOO



•(laAU)



OOOO O

o o' d o o



•(jaATj)



ooo oo
o oo o o



■(laAU) %VBllJ^



oooo o



■jaAiH



• oooo



■\wi nv



iO lr3lO»00*00^^»O^H^-Hr-^lO>OOOOOOOOOOlOlO»0'0

id ddot^i^oooooici^'OJoJocidd'-Ht-H^^^cccococofo



•jaAja



o oooiooooio".-:



• loooooo 'OOOO

• t^ 00 00 00 X 00 'ddcJd



'OOOO



■iiTsi nv



o t^ioiooxoico^^^ooaioocooooooooo
id i^t^t^o6o6G3oddddddd'-I^c^ic^ioic^c4«did»dLd>d



•joAia:



O ooooooooo 'COCOOO 'OOOO 'OOOO



•lira IIV



^-1 o o o o »o o c^ o C^ I^ t^ o o o o o o o o o o o o o o o
t^ ociciciddojccoic-ic-ifrocoroo6cc»d»did»d»dodoco6Gco6



•laAiH



o ooooooooo
00 coodooocoooJcici



■o o oo o o
'■ C^^ d (^ :d d -.OCOCOCjOOOOOOOOOOOOO

,-H r-( rH r-( 1— « 1— I - • i-H T-H .-* rH r-t i-H I— ( rH i-H .— t rH 1— I 1— t C^ (N C^ M CS



OOOOOOOOLOOO

O o o C) ^ c^i CO CO cc i-*^ o



•OOOOOO
I »0 lO >o »o uO o



•ij^-i nv.



■oooooooot^xxxr*r^«oooooooooooo
• i-Hc^oJ-^oor^x—Iddd^^^i^Mcocccococoooooo



< C^J OJ IM e^l N IN M IM IN C) C^ Cl O) (M IM N !M IN C-l



•jaAiH



OOOOOOOOOOO

cicccocoor-^ocooddd



'OOOOOO

'CJddddd



■oooo -OOOO
• cj c-i c^i (N ' t^ tr t* t*



(NC^KN-NMC^ 'C^C^KNC^I 'CStNC^W



•lira iiv



•OOOOOOOX'-0



»o;or*oosoo



0»0^t



• d d • • ! c3 G J I :

g-S.Sc-^c3^.ggg^
^„ O +^ ^- w hj p -O 2 (p oj






o.

ft



• rt s °
-■So



I B e

. O P



:i^°



is







003301'3°^0"






386



REPORT OF THE INLAND WATERWAYS COMMISSION



- no.

_g Ho >-
CO tiO - .

o-o-o OS'S

n cS Q> m >

M



0 «0
CM?1C^«CMC^IMC1IMCM



•0000000
;oooo o 00



000000

000000



CM o o o o o



00000000000

00000000000



rc(xco^3co^5ccccrorjc^



o-jf O



S 2'H



S ai a

f^'O —
n 03*3
03 o -!0OOOOOi.-5 0iOioiOio

!!!! I ! i .'••■••■■■••' '-^
ooooooooo'omoooirtioio'o^icio



. I o o



t>>e3



Rates per car.



In cents per 100 pounds.



20


m


10


10


m


18§


10


10


10


10


14f


18i


14?


m


14^


18i


Hi


18J


141


m



21J
21i
2U

21 1

2n

l"i
17i

17i
■I7i



Table 101 — Freight rates charged for the transportation of grain and meat products from

Kansas City, Mo., to St. Louis, Mo., from January 17, 1879, to April 1, 1902

[From Interstate Commerce Commission Report on Railways in tlie United States]



Date.



1S79— Jan. 17.
Feb. 1.
Mar. 1.
Sept. 15.
Oct. 16.
Oct. 22.
Nov. 10.

1880— Apr. 17.
Apr. 21.
Apr. 24.
Nov. 8.

1881— Apr. 1.
July 23.
Doc. 20.

1882- Feb. 1.
Feb. 0.
Mar. 13.
Apr. 1.
Nov. 27.
Dec. 1 ,

1883— Jan. 1.
May 15,
June 11,
Dec. 17,

1884— Jan. 15,

1885— Jan. 1,

188(5— Jan. 1,
Aug. 23
Aug. 20

1887— Jan. 1
Jan. 10
Feb. 1
Feb. 15
Apr. 1
Aug. 1
Dec. 20

1888— Jan. 9
Feb. 8,
Feb. 16
Feb. 18
Feb. 27
Mar. 1



Rates m cents per


100 POUNDS.


Pack-






ing-
house


Wlieat.


Other


prod-






ucts.






25


25


15


25


25


15


20


20


15


20


20


15


20


20


15


20


20


15


20


20


15


20


20


15


20


20


15


20


20


15


20


20


15


20


20


15


20


20


15


20


20


15


20


17


15


20


17


15


20


17


12i


20


20


15


20


20


15


20


20


15


20


20


15


20


20


15


20


20


15


20


20


15


20


20


15


20


20


15


20


20


15


17i


20


15


17i


20


15


m


20


15


20


20


15


20


20


15


20


20


15


20


20


15


20


in.


15


15


m


15


15


m


15


9


17i


5


n


17i


5





17i


5


6


17i
17|


5


6


5



Date.



1888— Mar. 26
May 11
June 29
Oct. 1
Oct. 15

1889— Apr. 1
May 25
July 19
Nov. 1

1890— Mar. 3
Apr. 23
Aug. 25
Oct. 1

1891— Jan. 1
Jan. 15

1893— June 10

1894— Dec. 1

1895— June 18
Aug. 1

1896— July 20
July 26
July 30
Aug. 1
Aug. 6
Aug. 17
Sept. 30
Nov. 2

1897— Apr. 1
Apr. 8

1898— Jan. 1
Apr. 8
Apr. 21
Apr. 23
May 5
May 10
Sept. 27

1899— Jan. 2
July 2

1900— Jan. 1
Mar. 6
Apr. 10

1902— Apr. 1



Rates in cents pee

100 POUNDS.



Pack-
ing-
house
prod-
ucts.



vVheat,



Other
grain.



15
• 15
15
15
15
15
15
15
15
15
15
15
a 15
"15
ft 15
15
15
15
15
9
9
6
10
U
10
10
10
10
10
10
10
10
10
10
10
8
10
10
11
8
11
11



a Com and oats, 12 cents.



6 Co rn, 14 cents.



340



REPORT OF THE INLAND WATERWAYS COMMISSION






«



oo 0 1N
■ O O O «i oi Ci O: O C O »-i



•laAi^



"500
CS iOiO



00000000000000
o d o o o o o o o o o o o o

C^l n CM C^l C^J CM CM CM (N C



Online LibraryUnited States. Inland Waterways CommissionPreliminary report of the Inland Waterways Commission. Message from the President transmitting a preliminary report → online text (page 37 of 83)