The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

Lake Carriers Opposed to St. Lawrence Waterway | THE conference held by the A National Transportation com- mittee in New York, Dec. 7, the Lake Carriers association, a body representing American vessel owners on the Great Lakes, presented a memorandum stating its views in op- position to the building of the St. Lawrence waterway as contemplated in the treaty now before the United States senate for confirmation. The memorandum, prepared by L. C. Sabin, vice president of the Lake Carriers association, presents in con- siderable detail reasons for the stand taken by the association. The section of this report devoted to the financial returns is quoted below, in part, as follows: Financial Returns Indicated “Tf the freight movement, over 2 new route and by new instrumen- talities, should take place as indi- cated, the effect in a financial way, on government and industries of the United States, may now be outlined as follows: Gains to the United States 3,000,000 tons of United States grain exported to countries other than Great Britain at a pos- sible saving of 3 cents MOL DUSHEl soi. c ics stet ese $ 3,000,000 (This saving is said to go to the producer but being practically debarred from the Liverpool market this is very doubt- ful.) 1,000,000 tons of petrole- um products at esti- mated saving of 50 CONUS DET VON:...<c:.-.-0<0055 3,000,000 tons of miscel- laneous freight at esti- mated saying over present routes of $1.50 OT OM i siiivivssscoscsesovsess 1,000,000 horsepower of electricity energy pos- eihy saleable at $5.00 BY ee es ose Sasackstcctsncane 500,000 4,500,000 5,000,000 Total possible gain......$13,000,000 Loss to the United States Carrying charges on St. Lawrence investment, operation and main- iP ein heW erase pate eek ear Ree eee $17,000,000 Carrying charges, chan- nels, wharves and in- ner harbors borne by dock interests ............ Loss of traffic to Amer- ican __— railroads, the Barge canal and the Great Lakes fieet, 5,- 000,000 tons United States grain diverted to Montreal at average estimated loss in gross revenue $2.20 per ton.. 11,000,000 1,000,000 32 6,000,000 tons coal loss of export to Canada affecting mines, lake and rail carriers, at $3.00 per ton gross TOVCNUG 6s oc aeienes os 18,000,000 1,000,000 tons ore loss of export to Canada, affecting mines and carriers, @ $3.00 per ZYOSS LeveNnue ............ 3,000,000 Total OSs 2. $50,000,000 bess oan ee eas 13.000,000 Net loss per annum..$37,000,000 We are not claiming that the above is an accurate showing of the entire effect of the waterway, but we are endeavoring to point out the sort of difficulties and degree of losses likely to result. It is of course true that a part of the items listed under losses do not represent actual out of pocket ex- penditures, but they do represent a measure of the loss of labor to min- ers, railroad operatives and sailors. Probably the most’ substantial benefit to be derived from the pro- posed waterway is the saving of per- haps 3 cents per bushel on export grain. To the extent to which this saving would accrue to the Amer- ican farmer it is a most desirable fea- ture. Although theoretically correct, the idea that the producer secures the greater part of the benefit of re- duced transport cost has not always proved true in the past. However, it would be far cheaper to give a direct subsidy to export grain rather than indulge in this plan with its far reaching adverse results to industry and commerce. Proponents of the plan are wont to claim that this saving per bushel will be reflected in the entire volume produced. When it is recalled that less than 3 per cent of the wheat grown in the states tributary to the Great Lakes is exported, it requires both imagination and credulity to ad- mit such a thesis. Some of the objections of the Lake Carriers association to the St. Law- rence development, which were touched upon in the memorandum presented, were summarized in that memorandum as follows: Conclusions on Waterway 1. Present transportation facili- ties on the lakes are adequate to serve the traffic with expedition, efficiency and economy. 2. Traffic that might develop on the waterway would transfer to foreign ships and foreign ports the commodities now handled by facilities of the United States. MARINE REVIEw—January, 1933 3. Studies made by the propon- ents, giving estimates of the amount of traffic that might use the waterway and the resulting savings, are inaccurate as to the quantity and kind of commodities likely to move, and give an entire- ly unreliable impression as to re- sulting savings in transport. 4. The entry of foreign ships to the Great Lakes trade would in- jure the American merchant ma- rine and would subject our sailors to the competition of foreign sea- men with a much lower wage scale. 5. The loss of export of coal and iron ore would injure our miners and the operatives of railroads serving the lake territory, as well as our ports through which such traffic now moves. 6. The proposed improvement would result in a further subsidy to Canadian grain and British coal and in the present situation it is not clear that American in- terests would be justified in con- tributing to either. 7. The cost of the project to the United States is considered out of proportion to any benefits that might accrue to agricultural or industrial interests in the United States. If the waterway were to be used to any considerable extent it would involve heavy expense on municipal and private interests to provide for the receipt and ship- ment of freight by means foreign to the present type of vessel for which the terminal facilities have been built, thus adding to the car- rying charges attaching to the project as a whole. 8, Finally it is submitted that no present need exists for this deeper connection between the lakes and the sea; that if used it would disrupt present adequate and efficient means of transporta- tion; that it would subject Great Lakes sailors to the competition of cheap foreign labor and that it would work to the serious disad- vantage of our merchant marine and our export trade. In conclusion it is the hope of the Lake Carriers’ association that be- fore formulating any opinion or re- port upon the proposed scheme your committee will have made a complete and thorough investigation of its probable effect on this country, its industries and its merchant marine.” In 1925 the Soviet commercial seagoing vessels, aggregated 257,800 tons in 200 units. In 1927 this ton- nage decreased to 212,624 tons as a number of older vessels had to be discarded. Since that year, ship- building has steadily developed and at the beginning of 1932, the Soviet merchant fleet included 300 vessels with a total tonnage of 607,596. During the first half of 1932, 15 vessels with a total tonnage of 57,- 260 were added. It is estimated that towards the end of 1932, the total tonnage of the Russian mer- chant fleet reached 700,000.