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The State is now engaged in constructing a waterway at
its own expense, along the coast, from Cape May to Bay
Head, a distance of about 100 miles, and has appropriated
$300,000 for the purpose. This waterway will be not less
than six feet deep at low tide, eleven feet at mean high tide,
and 100 feet wide. It will connect all the seaside resorts
along the coast and will be of great value to truckers, to the
hundreds of thousands of visitors to the seashore resorts and
to the owners of pleasure craft, particularly motor boats.

There is a project to carry this inland waterway from Bay
Head to the Shrewsbury River, and the Legislature haS
authorized a survey and report ofi that proposed extension.

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If that project should be carried out there would be a com-'
plete inland waterway from the lakes, through the Erie Canal,
the Hudson River, the Shrewsbury River and the coast water-
way to Cape May. And from the Capes of the Delaware,
small motor boats, by a short outside passage, could get to
Philadelphia, or to Baltimore and the South.

But the great project to which New Jersey is devoted is
the construction of a ship canal across the State, connecting
Raritan Bay with the Delaware River. We have already
secured appropriations for deepening the channel between
Trenton and Philadelphia, and much of that work has been
done, although much more will be required to make the Dela-
ware, from Trenton to the sea, a great ship channel.

The Legislature has passed a bill authorizing the appoint-
ment of harbor boards, empowered to buy or condemn water-
front properties and erect public wharves, etc., and under this
authority Trenton has organized such a board and prepared
to enlarge its port facilities. Other cities on the line of the
proposed canal will follow suit. The Legislature has also
authorized the appointment of a commission to buy the right
of way for the proposed canal between the Raritan Bay and
the Delaware River, with the intention that the State shall
present the site to the United States government whenever
the latter shall signify its intention to construct the canal.
The commission has been appointed and has begun its work,
and an appropriation of $500,000 has been made to carry out
this undertaking.

The United States engineers have prepared a plan for the
canal and recommended a route, and the State is ready to
do its part in the construction of this great improvement. Its
value can scarcely be overestimated. It will connect by a
cheap and safe water route, two of the greatest manufactur-
ing cities of the Union, which consume enormous quantities
of raw material from the South, and from Europe; it will
put both of these cities, as well as other sections of the coun-
try, in water communication with Trenton, one of the busiest
manufacturing centers on the globe, and it will open up cheaj)
factory sites all along the way, from New York to Phila-

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delphia, until these two cities shall be amalgamated in the
greatest industrial development the world has ever seen.

Need I say more? New Jersey is with you heart and soul;
not merely for the canal in which it takes a special interest,
but for the waterway all along the coast, from Maine to

In conclusion Mr. Donnelly made an impassioned plea for
prompt action by Congress, advocating a bond issue if nec-
essary, similar to that made for the Panama Canal, to the end
that work on the entire line may be prosecuted vigorously and
the present generation be given an opportunity to enjoy some
of the fruits of this great and beneficent undertaking.

Mr. Bartol: There is no doubt that the State of New
Jersey has set a magnificent example, and there is no doubt
the representative of New Jersey has been chiefly responsible
for New Jersey's enthusiasm. It would be impossible to listen
to him without becoming enthusiastic. (Applause.)

There is one State that very early in the history of this
country appreciated to the fullest extent the advantages of
waterways. Back in the early part of the last century a
waterway was constructed connecting the waters of Lake Erie
with the Hudson River. It was not very much of a canal, and
in its incipiency it was a very small canal. It was, however,
a waterway that has resulted in making that State the Empire
State. It filled central New York with an aggregation of
cities which we do not think of as particularly large cities,
but which, compared with many cities in the country, are
very large cities indeed. All along that canal to the Hud-
son River, all the way from Lake Erie to Albany, you find a
succession of thriving towns. Unlike the canals built in other
States, New York was wise and preserved intact the owner-
ship of the canal. It has been steadily improved as time passed.
New York has done things. While we have been talking, New
York is spending over $100,000,000. We are very proud in
having with us today the Chief Executive of our greatest
American city, not only the first city in the United States, but
the third city in the world, and which is acquiring wonderful
prominence in every department: art, literature and finance.

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Its commerce goes to all parts of the world. That its promi-
nence is due to water transportation is conceded by every one.
The railroads are severely handicapped by the water. The
formation of the island, its extreme narrowness and the water
which presses it so closely on each side have been the real
handicaps. The Chief Executive of that city, who will speak
to you now, is known to all of us. As Chief Executive he was
almost a martyr to duty. If it had not been for the fortunately
bad aim of his assailant he would have been a martyr to the
country. I take pleasure in presenting Hon. William J.
Gaynor. (Cheers and applause.)

Hon. William J. Oaynor, Mayor of New Yorl^

Mr. Chairman, Ladies and Gentlemen:

After all that has been said by preceding speakers, including
the several introductory speeches of the chairman, nothing is
now more evident than that there is nothing left for me to
say. At last I concluded that I would speak of the Erie Canal,
but the chairman in introducing me has even taken that away
from me. (Laughter.) I see now how unnecessary it was for
me to be here. (Laughter.) I am introduced as Mayor of the
third largest municipality. Perhaps I may be permitted to
say that the city of New York happens to be the largest mu-
nicipality in the world instead of the third. (Applause.) I
am not reckoning any Asiatic cities. The city of London has
a resident population of less than 29,000 people, and the Lord
Mayor, outside of his social duties, has less to do than the
poundmaster of Richmond. The great aggregation of houses
which the world ordinarily calls London is not one municipal-
ity and has no Mayor. It is an amalgamation of many bor-
oughs and parishes, with many subdivisions of government
under different jurisdictions instead of under one municipal

I came over here with my mind burdened about the affairs
of my own government — affairs hard enough to deal with
without some people conspiring to make them even harder.
(Laughter.) The principal thing I had on my mind when I
got into the train was whether I should approve an act of the

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Legislature to give equal pay to the men and women teachers
of New York ; for you know that all acts of the Legislature
of the State of New York relating to a city have to be ap-
proved by the Mayor. I have a notion to organize you into
a convention on the question of equal pay and see how you
.would decide it. (Laughter.) That might relieve me of a lot
of bother. Or I think I might organize the women present into
such a convention, if I were certain that the women teachers
of New York would be satisfied with that. It may be that
they would be better satisfied to have the men decide the
question. ( Laughter. )

It is really unnecessary for any one to say anything about
this waterways system which you advocate. You only need
to take the map and look at it to see that it is a complete
scheme in itself and entirely feasible. It does not need argu-
ment. Beginning at Boston and thence by a canal across Cape
Cod is one way to start. Another way is from Boston to NaT-
ragansett Bay by canal. In either case you continue on, and
through Long Island Sound to New York city, thence into
Raritan Bay, New Jersey, and across New Jersey and Penn-
sylvania, mostly by inland tide waters, and thence through
Hampton Roads and Chesapeake Bay, the grandest inside
waters I ever saw. (Applause.) And so on, from one sound,
bay and tidal river to another, with here and there a short
connecting canal to be cut, until you come to the peninsula of
Florida itself. And there you have a complete inside water-
way along the coast from Boston to Florida. To open it up
and avoid the dangers on the outside would be of the utmost
advantage to commerce, to say nothing of the lighter and
simpler vessels which could be used, and other things which
occur to you more readily than to me. That it would pay on
an investment greater than anything that has been mentioned
here is obvious, and the carrying of freight will be made much
cheaper that it is now, although I do not always agree that
to reduce a thing to a basis of absolute cheapness is a benefit
to commerce or to human kind. (Applause.) .There have
been many overstatements on that head by economists, it
seems to me.

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I am down on your programme to say something about the
port of New York. I would much prefer to leave that to the
Dock Commissioner of New York Mr. Calvin Tomkins who
IS next to address you, and who will say something worth
hearing. I wish you could see and hear all the heads of de-
partments whom I have appointed in the city of New York.
If you read the Hearst newspapers you might think they were
a lot of thugs instead of, one and all, educated and accomplished
gentlemen, each in his own line. (Great applause.) The
great problem in the port of New York is to have facilities for
the commerce which goes through there, the great commercial
city of America, and very soon, I suppose, of the world.
Many large docks have been built by the city in recent years.
And yet we had no dock in the borough of Manhattan — I do
not to say in the city of New York — long enough to receive the
Olympic steamship. The problem of longer docks there is now
under careful consideration. We must extend further out into
the Hudson River, or else inshore, to get longer docks. The
United States Government refuses to permit us to extend
further out. It allowed only temporary extensions to receive
the Olympic and her sister ships. Favorable points are being
located along the river for the extension of docks inshore.
In the borough of Brooklyn there are recently built city docks
and private docks long enough to receive any vessel likely to
be built in future years. We have there one. of the greatest
dock developments in the world. I hope you will not fail to
look at it when you are in New York. They are not yet used
by the great ocean passenger steamers, because they are rather
remote from the hotel center. Better transit facilities will do
away with that objection in time.

There is one matter you will not blame me for mentioning,
and that is the railroad freight rate discrimination or differ-
ential against New York in favor of other cities. The rail-
roads charge three cents more the hundred pounds on ocean
freight to New York city than on ocean freight to Baltimore,
Newport News and Norfolk, and two cents the hundred
pounds more than to Philadelphia. We see neither morality
nor economic reason in this. It is one of those artificial in-

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terferences with the natural course of commerce which have
always worked injury and mischief instead of benefit to com-
merce, as was intended. The whole family of such commercial
interferences were so scathed and blasted by Buckle, in his
History of Civilization, that it is difficult to understand how
any of them, or the false principle on which they all rest, sur-
vives among us today. He said — and it is timely to repeat it
in view of the trend and doings of government of recent years
in this country — ^he said that instead of leaving commerce and
industry to take their natural course, they had been interfered
with by laws, all intended for the good of commerce, but all
inflicting serious harm upon it instead. And I need not say
further to picked men of affairs like you that the decisions
of the courts prescribing and enforcing similar regulations
and interferences in past generations, and up to date, only
resulted in like mischief. That which appeared to Chief Jus-
tice Kenyon and his associates in England in their day to be
necessary and wise in regulating commerce had to be dis-
carded by the nation as absurd afterwards. What say you?
Will the statutes and court decisions of our generation which
are trying to interfere with the natural course of commerce
and business be seen by the next generation to have been as
futile and mischievous as those of past generations? Many
among us who want to go even further with such artificial
interferences have no doubt of their vision. But let them not
be too confident of it. As John Stuart Mill says of such mat-
ters and such people, that which appears to be the height of
wisdom to one generation is often clearly seen to be the height
of folly by the next.

And since I am on the subject, I desire to particularly apply
these remarks to favoritism or discrimination in railroad
freight rates to particular shippers. Favoritism in freight
rates to cities or localities and favoritism in freight rates to
particular individuals come in the same category. They are
both absolutely wrong and to be condemned, and they are un-
lawful. (Great applause.) They are both interferences with
the natural course of commerce, and, .as I have said, such in-
terferences, as long as we know them in history, resulted not

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in benefit to commerce, but in injury to commerce, and, conse-
quently, to mankind. Favoritism in freight rates to individ-
uals during the last thirty years in this country has been the
great economic crime of our day and generation. It is wholly
indefensible. It was from the beginning and is contrary to
law. Some think that it was recently made illegal. Not so. It
was illegal from the beginning. Some say it has now stopped.
Well, I wish I had learned to wink with my left eye when
young, for that would express my doubts more clearly than
any words I can use. (Laughter.) It has not stopped, and
•I shall not live to see it stopped, but it has been mitigated to
some extent. The first law of the being of railroads forbids
that they should exercise such discrimination, and thereby
destroy some shippers in order to build up others and thereby
create monopolies. The Interstate Commerce Commission has
now been given the far-reaching power to fix freight rates.
How this will work out has yet to be seen. It was the notion
of some of us all along — but in time of clamor the moderate
voice is seldom heard and still more seldom heeded — it was
the notion of some of us all along that what was needed was
not that government should undertake the stupendous job of
fixing freight rates, but to see that every one was charged
and made to pay the very same freight rate for the same
service. The great thing to be done was to stop all favoritism
in freight rates to shippers, and make every one pay the rate
fixed by the company. (Applause.) The evil of the past has
not been so much that rates were too high, but that some
shippers were given favorite rates to the great wrong of their
rivals. (Applause.) Our railroads are not private roads with
which the railroad companies may do as they please. On the
contrary, let it never be forgotten that they are created and
enfranchised by government as public highways. (Great ap-
plause.) They are created and exist on this fundamental
principle. On this principle they acquired their roadbeds under
the government power, of eminent domain — that transcendant
power of government to compulsorily take private property
for public highways or any other public use, but for no private
use whatever. The government cannot take private property

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for private use. It has not the power. It can only take
private property for public use. Being public highways, the
very law of the existence of railroads requires that every one
be charged by them exactly the same, neither more nor less,
for the same or like service, and that no rate favoritism be
given to any one. (Applause.) It was a general violation
of this fundamental law of their being which grew into one
of the greatest economic evils which any country ever saw.
It was not excessive freight rates, but favoritism in freight
rates, which caused individual failures, and the creation of
what we loosely call trusts, that is to say, monopolies, all over
this country. When one man or set of men in a given business
can get their freight carried over these public highways at a
rate lower than their rivals have to pay, they can undersell
their rivals by that much in the market, namely, by a price
that much lower. And in that way, if the favoritism in rate
equals or approximates the wholesale profit, they can destroy
their rivals and drive them out of business, and thus acquire
a monopoly in themselves, (Applause.) That is how our
monopolies — or trusts, as we mildly and mistakenly call them
— were all created. And then, after they had existed for years
— some of them for more than a full generation — came bicker-
ing and hair-splitting lawsuits by the government to dissolve
them. Let us just remove the artificial cause of their creation
and growth and they will disappear fast enough. (Applause.)
The laws of commerce are as regular and recurring as the
change of the seasons or the rising and setting of the sun.
Do not let a few business men destroy their rivals by favorit-
ism in freight rates, and rivals will come along and outrival
them fast enough. Let the great genius of the people of the
nation have a free and full play in business, with no freight
rate favoritism on the public highways, nor any other legal
or illegal favoritism to any one, and monopolies will decay
and disappear. A monopoly cannot exist among a free people
except by some culpable omission or commission of govern-
ment or government agencies in the way of favoritism in
commerce. And if we do not want trusts, namely, the com-
bination together of the corporations engaged in a certain kind

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of business, why did we pass and why do we not repeal the
statutes which enable such partnerships or combinations of
corporations to be formed, namely, the statutes which enable
corporations — holding companies, as we call them — to be
formed to hold the stock of any number of corporations, and
thus make them a business unit or monopoly? (Applause.)
The courts have held in the Sugar Trust case and in the
Standard Oil Trust case that corporations could not become
copartners or combine in any way or by any agreement. These
holding company acts were passed to frustrate these decisions
and make a legal method for corporations to combine together
in business. If I recollect aright, it was in the very same year
that we passed our holding company act in New York State
that we passed a flaming anti-trust act denouncing penalties on
combinations and monopolies. How farcical that will appear to
the future historian ! He will have to say that our legislature
was guilty of mere demagoguery, or else that we were so
ignorant in economic matters that we really did not know
what we were doing.

I listened with deep interest to the magnificent report of
Hon. J. Hampton Moore. As soon as I heard it I knew that
it should have been read first of all, with all deference to the
orators who have spoken with the watch under their hands to
see that they did not exceed the twenty minutes — or one hour
and a half. (Laughter and applause.) The lasting impres-
sion and the lasting interest of all that has been said and done
here will linger in the history of this matter around the report
of your Chairman, whom I hope you are going to reelect
tomorrow. (Applause.)

At the conclusion of Mayor Gaynor's speech, the North
Side Board of Trade presented him with a huge bouquet of
flowers. Mayor Gaynor said:

I did not even know the North Side Board of Trade was
here. But I am so unused to having bouquets thrown at me
(laughter and applause), even when I do my best, that I am
very much surprised to have one presented to me in this hand-
some way today when I have done so little compared to what
others have done here. I thank you very much. (Applause.)

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Mr. Bartol: I have pleasure in introducing Hon. Calvin
Tomkins, Commissioner of Docks of New York City. (Ap-


Hon. Calvin Tomkins, Doclc CommiMioner, New Yorlc City

Mr. Chairman, Ladies and Gentlemen:

The level road leading from the interior of the country to
the mouth of the Hudson, together with the commercial and
industrial advantages afforded by the Interstate harbor of
New York and New Jersey, have made the port the greatest
harbor of the world and the first city of America.

Excepting only the Canadian railroads, all transcontinental
lines now have their eastern termini here. The rails of the
New York Central come to the New York side of the harbor.
The New Jersey railroads ferry their cars across the Hudson
on floats ; and railroads terminating at the coastal cities from
Galveston to Philadelphia transfer here by steamship ferries.
The national competitive influence of the port upon railroad
rates throughout the country is of far greater significance than
the artificial restrictions imposed by the Interstate Commerce
Commission for commercial policing purposes. This is true
in spite of the fact that one of the principal aims of these
restrictions has been, and is directed against the commerce of
this port. The commercial power and influence of New York
will be greatly increased by ending the differential; by the
completion of the Erie Canal, equipped with modem ter-
minals; by the completion of the Panama Canal, and by the
construction of the Intra-coastal Canal.

Canal transportation between New York and Boston with
New England and Canada back of it, and with the
Delaware and Chesapeake ports will advantageously supple-
ment outside ocean transportation and will benefit all cities
concerned. For the same reason that Chicago, Cleveland and
Buffalo are mutually benefited by the waterway which links
their interests and that of every inland city with New York,

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SO every coastwise city is helped by railway and waterway
improvements connecting its terminals with those of New
York. All lines of transportation tend to focus here to con-
nect with the regular ocean ferry service operated to all
parts of the world. Conversely, New York is benefited by
the increased wealth and population of Boston, Philadelphia
and Baltimore just as it is by the growth of its outlying
boroughs and by the growth of the New Jersey section of
the port.

New York has always been cosmopolitan and can well
afford to be catholic in its sympathies with other cities. His
Honor, Mayor Gaynor, has directed me to place the results
of our engineering experience in terminal improvements at
the disposal of other cities seeking information — and many
have applied.

I am here today to forward the progress of the Intra-coastal
Canal in the general interest, recognizing, as I do, that if
properly equipped with railroad connections, terminals and
harbors, and if the lands adjacent to it are planned and
reserved for the most efficient industrial development, that

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