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RAILROAD COMMITTEE FOR THE STUDY
OF TRANSPORTATION
SUBCOMMITTEE ON VATER TRANSPORT
ASSOCATION OF AMERICAN RAILROADS
TRANSPORTATION ON THE GREAT LAKES
December 9, 1946
P R O P E R T Y O F
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63||||7
Asso CIATION OF AMERICAN RAILROADS -"
Railroad Committee for the Study of Transportation
R. W. Fletcher, Chairman
TRANSPORTATION ON THE GREAT LAKES
Alexander Gawlis, ,
Research Analyst.
| Subcommittee on Water Transport :
R. E. Dougherty, Vice-President,
New York Central System.
W. D. Faucette, Executive Representative,
Seaboard Air Line Railºray.
H C Hallmark, Freight Traffic Managers
Southern Pacific Company.
George A. Knapp, Special Engineer,
Southern Pacific Lines in Texas and La .
W.H.Hobbs, Director of Research,
Missouri Pacific Lines.
Chairman of Subcommittee
Elmer A. Smith, Senior General Attorney,
Illinois Central System.
Transportation
Library
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* A35
3 º' 6%
CONTENTs
LIST OF TABLES e e s e o • e ‘o e s is a • * * * * * * * • - tº e • * * . III
ºr Yºr, r: -º-º: * 8. - . - f - -
FO E.JOTD & e. e. e. e. e. e. e s e º e o e e s s e s e e s a e g c e s e e s e tº l
| 7 || A rººf- ‘.
SU. If ARY • * * s & e e s - e. e. e s is v e e o o e s a • e s e o e s • * * * * 3
OBSERVATIONS AND CONCLUSIONS . . . . . . . . . . . . . . 13
SECTION I. HISTORY A.D DESCRITTICN . . . . . . . . . . . . . . 30
Port Dist&rices . . . . . . . . . . . . . . . . . . . . %
Vessels . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Lake Fleet 1945 . . . . . . . . . . . . . . . . . . . 42
Terminals . . . . . . . . . . . . . . . . . . . . . . . . . 45
Great Lä GS Tonnage . . . . . . . . . . . . . . . 49
Lakes–New York State Barge
Cerial Tonnage . . . . . . . . . . . . . . . . . . 52
Lakes–Illinois WaterWay Tonnage . . . . 32
Løkes-St. Lawrence River Tonnage... 53
Principal Jortiodities • . . . . . . . . . . . . 54
Fluctuation of Tonnage . . . . . . . . . . . . 54
Imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bº
Bºorts . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Tom-Tiles and Average Haul. . . . . . . . . 57
- º
* II. TRAFFIC .............................. 38
FUIX CC 0 ITIES . . . . . . . . . . . . . . . . . . 58
Dè finition of Bulk Collinoćities . . . . 59
Tollnäge &nd Colºrioſities . . . . . . . . . . . F9
Tºº O-e . . . . . . . . . . . . . . . . . . . . . . . . . . . 6l.
Silişinents . . . . . . . . . . . . . . . . . . . . . 62
Receipts . . . . . . . . . . . . . . . . . . . . . . 62
Coal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Lūice E "ie Ports Siłipment S . . . . . 64
Iºke C. tai'io PCit's Shipments . . . . (57
L. e iiichigan Poit S Shipments. , 6
Grain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
I'Orts Of Grain Gili ºrients . . . . . . 69
**
Port S of Grain Receipts . . . . . . . . 70
St. Give • * * * e s e e g o e º a s "o e o e o e s o o e e o c s e 71
Pºtroleuri and Product S : s . . . . . . . . . . . 72
Sºtić and Gravel . . . . . . . . . . . . . . . . . . . . 73
CAR-FETRY TRAFFIC . . . . . . . . . . . . . . . . . . 73
PASSENGER TTAFFIC . . . . . . . . . . . . . . . . . 76
PACKAGE. F. ET HT . . . . . . . . . . . . . . . . . . . 7
Pºincipal Colºmočities . . . . . . . . . . . . . Öl



SECTION III. OPERATIONS OF REGULATED CARRIERS ...
SECTION
SECTION
SECTION
TWe
W.
WI.
Services . . . . . . . . . . . . . . . . . . .
Volurne of Toili, age . . . . . . . . . .
Character of Treffic and
Priº Ciºal. CO: ... OCities . . . .
sportation Property and
E”uipment . . . . . . . . . . . . . . . .
Financial Results . . . . . . . . . .
Froin 1916 to 1940 tº 6 s e g e s is e s 6 s is 9
Subs
Volume of Tonnage . . . . . . . . . .
Cilaract Cr of Traffic . . . . . . .
Principal Comriodities . . . . . .
Ports . . . . . . . . . . . . . . . . . . . . . .
Transportation Property and
Equipment e . . . . . . . . . . . . . . .
Financial Results . . . . . . . . . .
ſ}} -, -,
... .I.C& S • * * * * * * * * * * * * * * * * * * * * *
3Guent to 1940 . . . . . . . . . . . . .
Voluße Of TOnnage . . . .
Finańcial Results . . . . . . . . . .
-->
g
e
º
º
o
Aut Oñobile Traffic . . . . . . . . . . . .
OPERATI Cº S Ojº FTVATE ANT) EXT. Piº CAFR
|FU3LTC AID . . . . . . . . . . . . . . . . . . . . . .
+-) fºrtſ ITtº
H2O3H W .E.M. º.
j º, wººl rºc.
jºCSi ECTS a c e s : 8 g c e s c e o a o a 6 e a 2 & O
6 c q & 9 tº 6 @
i.
63||||Y-III
Table
II.
III.
IV.
WI.
WII.
WIII.
IX.
XI.
XII.
XIII.
YIV.
XV.
~~
LIST OF TABLES
Principal United States Harbors . . . . . . . . . . . . . . . . .
Distances via Water and via Rail Between
Ports on Great Lakes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and Gross Tonnage of Steam, Gas, and
Sailing Wessels and Barges Registered at
Ports on The Great Lakes, 1868–1935 . . . . . . . . . . . . .
Number and Carrying Capacity of Wessels of
United States Registry in Great Lakes Fleet
OI). Loading Draft Of 2O Feet; o, © 9 e º e o as a e o n e º 6 e o 9 Q 6 tº
Lake Fleet by Types and Trades and Its
Carrying Capacity in Gross Tons as at
Opening of Navigation in 1945 . . . . . . . . . . . . . . . . . . .
Commerce of the United States Ports on The
Great Lakes, 1920 to 1944 . . . . . . . . . . . . . . . . . . . . . . .
Distribution of Tonnage, 1943 . . . . . . . . . . . . . . . . . . to
Great Lakes Traffic Moving via New York
State Barge Canal, 1939 to 1943 © o O S o 9 e o ºs º o tº 6 & q' 0 &
Great Lakes Traffic Moving via Illinois
Waterway, 1939 to 1943 o o 3 o c e o o o c tº o t e o 'º 3 e g g o & 9 e o o
Great Lakes Traffic to and from J verseas via
St. Lawrence River, 1931 to 1943 . . . . . . . . . . . . . . . .
Principal Commodities in Domestic Trade for
Selected Years o tº c e e o 'o e o e s e º e t e o e o e s tº e o e o e e o os e o e e
Great Lakes Tonnage Related to National
Income, 1929–1943 with 1929 Equaling 100 . . . . . . . .
Principal Commodities Imported, For
Selected Years e c o o O e o o e º 'º e 9 •
* c o 6 e o & e o e e s e o & º 6 & © tº
Principal Commodities Exported, For
Selected Years © o tº $ 32 o 'º & O e Q tº dº o 6 @ e o e º p & cº e o 'º dº e º o e s tº D
Ton-Miles and Average Haul, For
Selected Years © o o O 3 o' e o 'o e º 'o o o O e º 'º e º o o c e o a ºn e º gº tº gº © tº
Page
...”
36
37
H1
l;2
lſº
50
51
52
52
53
5);
55
56
56
57
Table
XVI.
XVII.
XVIII,
XIX.
XX.
YXI.
XXW .
XXVI.
xxvii.
XXVIII.
XXIX.
XXX.
XX..I.
Bulk Freight Commerce by Years,
1920 Through 1944 . . . . . . . . . . . . . . . . . . . . . . . . . . * *
Iron Ore Shipment s by Ports —
1942, 1943, 1944 . . . . . . . . . . . * e o e s = e s w = • * * • e s p * * *
Receipts of Iron Ore at Detroit and
Lake Erie Port s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receipts of Iron Ore at Lake Michigan Port s
Shipments of Coal by Port Districts, 1944 . . . . .
Shipments of Soft Coal from Lake Erie Port s,
1944 and 1943 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receipts of Soft Coal from Lake Erie Port s
to United States and Canadian Lake Port s —
1944 . . . . . . . . . . . . . . . . . . . . . . . . * * * * * * * * * * * * * * * * * *
Shipments of Soft Coal from Lake Erie
Ports to Principal Port Districts for Years
1933, 1937 and 1940 through 1944 . . . . . . . . w e o e s e e
hipments of Anthracite from Lake Erie
Ports, 1929, 1933, 1937 and 1940 through
1914); ſº tº º tº ſº tº sº e º 'º e º sº tº e º 'º e º sº tº e s ſº º, e e s w w w e e s = e º s • s e º e
Shipments of Coal from Lake Ontario Port s,
1933, 1937 and 1940 through 1944 . . . . . . . . . . . . . . .
Shipments of Grain by Warieties by Years,
1933, 1937, 1940 through 1944 . . . . . . . . . . . º, e s e o 'º'
Port Shipments of Grain by Years, 1933, 1937
and 1940 through 1944 . . . . . . . . . . . . . . . . . * @ e º 'º w tº © e
Receipts of Grain at Principal Ports Shown
in Percentages of Total Movement, 1939 vs
1914); tº gº we e º us e º tº º e º e º e e º 'º e e º e º º ºs e s e º e º a tº tº s tº $ tº º & © ºn tº
Petroleum Movements For Selected Years . . . . . . . . .
Car Ferry Traffic on Great Lakes, 1943 and
1933 * * * * u, e º e º e º 'º sº e º te e º 'º e º 'º p is de • * e s e e º s e º e 9 * * * * *
Package–Freight Commerce of Jnited States
Great Lakes Ports, 1920 Through l823 . . . . . . . . . . .
62
63
63
6);
6||
65
66
67
63
69.
70
7l
72
76
73
63||||7–7
*, ^
Table g Page
XXXII. Package–Freight Commerce of United States --
Great Lakes Ports, 1924 Through 1928 . . . . . . . . . (º, 79
XXXIIIs Package–Freight Commerce of United States
Great Lakes Ports, 1931. Through 1940 . . . . . . . . w & 30
XXXIV. Principal Commodities in Package–Freight
Commerce of United States Lakes Ports,
1923 and 1923 º, C is e ºs º ºs e º ºs e º 'º dº & e e © tº C tº ſº & tº 2 e s p e º 'º º is 32
XXXV. Principal Commodities in Package–Freight
Commerce of United States Lakes Ports,
1933, i939 and 1940 . . . . . . . . . . . . . . . . . . . . . . . . * * * 33
XXXVI • Railroad–Gwned Lake Lines . . . . . . . . . . . . . . . . . . . . * 37
XXXVII, Principal Lake Tines, Number of Ships
Operated and Ports of Call, 1914 . . . . . . . . . . . . . . 33
XXXVIII, Tonnage of Seven Lake Lines, 1903 Through
191] tº tº Q 6 @ 9 & © Tº e º e º 'º e © tº e s tº as e o e s sº e e o e o 'º a tº e º 'º' ô Q & © tº 90
XXXIX. Lake Lines Classification of Tonnage for
Year Ended December 31, 1914 . . . . . . . . . . . • * * * * * * 94
XLs Investment in Transportation Property and
Equipment of The ‘Canada Atlantic Transit
Co. Erie & Western Transportation Coe z
Erie Railroad Lake Line, Lehigh Walley
Transportation Co - , Mutual Transit Co. 5
Rutland Transit Co., and Western Transit
Co., 1905 Through 1914 . . . . . . . . . . . . . . tº º ſº e º 'º & © © 96
XLI. Financial Statement of Canada Atlantic
Transit Co., , Erie & Western Transportation
Co., Erie Railroad Lake Line, Lehigh Valley
Transportation Coe, Mutual Transit Co., a
Rutland Transit Co., , and Western Transit ſº
Co., 1905 Through 1914 . . . . . . . . . . . . . . . . . . . . . . . 93
XLII. Tonnage Transported by the Principal Lake
Lines for Years 1916, 1925, 1934 and 1940 1OO
XLIII e Tonnage Transported by the Great Lakes
Transit Corporation, 1916 Through 1940 . . . . . . . 101.
YLIW, Tonnage by Principal Commodity Groups;
1916, 1925, 1934 and 1940 . . . . . . . . . . . . . . . . . . & o iOl
XT.W. Joint Rail and Water, and All Other, Traffic
and Revenue of Four Principal Carriers, 1940 103
631ſlº/-VI
Table
XLVI.
XLVII.
XLVIII e
XLIX.
LI •
III.
LIII &
II.W.
LW.
LWT ,
LWII,
LVIII.
LIX.
Principal Commodities of the Manufactures
and Miscellaneous Group, 1916, 1925, 1934
and 1940 * * * * * * $ 9 º' tº e º 'º e º 0 & 9 s a e s e º 'º e e o e s s e
Revenue Tonnage of Package Carriers by
Ports, 1940 • * * * * * * * * * * * * * * * * * * * * * * 9 a tº € 6 tº
Investment in Transportation Property and
Equipment of Principal Lake Lines, 1916,
1925, 1934 and 1940 c 2 & © tº gº © tº gº © e º g º O 9 tº e º o C
Condensed Income Account of the Principal
Lake Lines for Years 1916, 1925, 1934 and
1940 & Q @ Q & Q & Q & s is ſº tº G e º & © & © e º O & 6 s tº e C & & 9 º' tº C &
Operating Revenues and Expenses of the
Great Lakes Transit Corporation, 1916
Through 1940 tº u & © tº 9 & 0 & 9 º' tº e º e º 'º- c tº e º 'º e º ſº Q & O
Financial Condition of the Great Lakes
Transit Corporation as of December 31,
1916 and 1940 tº e s e e s e o e º 'º e a o e < * * * * * * * * * * *
Selected Statictics of Package Freight
Carriers on the Great Lakes, 1929 Through
1940
J © 9 & 0 & 9 tº º e g o e s e e o 0 tº c tº 9 0 e º e º sº e o e º 'º e º 'º 3
Federal, and State and Local Taxes of the
Detroit & Cleveland Navigation Co . , Great
Lakes Transit Corp. and the Minnesota-Atlantic
Transit Co. for 1940 & © e e º 'º e a e º w & © e 9 & 0 tº dº &
Tonnage of Package Freight Lines, 1941
Through 1944 • * > e o e s e e s a Q s e s m e º e º 'º e º e º e º a
Total Number of Automobiles Carried by
Lake Lines Operating from Detroit to All
Ports for the Years 1938, 1939 and 1940. .
Total Number of Automobiles Hauled by
the Nicholson Universal Steamship Company
from Detroit, Michigan, to All Ports,
1938, 1939 and 1940 . . . . . . . . . . . . . . . . . . . .
Revenue and Expense of Typical Bulker
Operation on the Great Lakes, 1942 . . . . . .
Commodities and Tonnage, 1941 and 1944 . .
Condensed Income Account . . . . . . . . . . . . . . .
Page
104
105
106
109
ll.O
ll2
115
117
ll.9
121
123
l35
137
634.7-VII
Table
IX.
IXI.
IXII.
Unit Cost of Federal Aid to Navigation at
United States Ports on the Great Lakes,
* # * -
1940 tº e º ſº tº tº e º 'º a t t e º b e º 'º y e i º e º sº e º s e º P & s • & e
Unit Cost of All Federal Aid to Navigation
Using United States Ports on the Great
Lakes, 1940 e e s & e o 'º e s e º e s e s e e s to o e s tº a 4 tº e o 'º
Unit Cost of Public Aid to Traffic Using
United States Ports on the Great Lakes,
1940 • * ~ * * * e º e o a s a w e o a s e o e o e s e s e º 'º e e s a tº e >
Page
llºl
l!!
1115
63.5-1
FOREWORD
Y--, -
This report on Transportation on the Great Lakes is the sixth
of a series released by the Subcommittee on Water Transport.
The water-borne commerce on the Great Lakes is greater than
upon any inland waterway. The total tonnage in each of the years
1941 through 1914 amounted to more than 202 million tons, with the .
major portion consisting of four commodities, iron ore, coals
st one and grain, These and a few others moving in bulk in lesser
volume comprised more than 95 per cent of the total tonnage. me
remaining portion was package freight.
The report deals with the transportation of bulk commodities
and of package freight separately because the transportation is
performed by carriers which confined their services to one or to
the other. There are some instances where a carrier transports
bulk and package freight tonnage, but the amount of the latter is
Small.
In dealing with the bulk tonnage six years have been reviewed,
namely, 1923, an early year; 1929 a peak year; 1933 a low year;
1937 a peak year; 1940 a war-preparatory year; and 1943 a war year.
Also a review of the tonnage history over a span of years from
1920, is afforded. Data on the principal commodities, amounts
transported and the facilities used, were assembled. In addition,
somé data on the operations of private and contract - or exempt car- -
riers have been reviewed, in the hope that it may contribute a
little to help understand the statements frequently made in the
past that private and contract carriers are not competitive with
the railroads or with the common carriers on the Great Lakes. It
63!!!!"-2
was such statements that were, in part at least, responsible for
the exemptions in the Transportation Act of 1910.
The portion of the report dealing with package freight con-
tains a little more detailed matter. Data as to tonnage, princi-
pal commodities and some operating statistics were assembled and
designed to give a background for this type of transportation and
results of operations during three periods, (1) the decade, prior
to the effective date of the order of the Inter state Commerce
Commission under the Panama Canal Act, when the major portion of
the package freight transportation was performed by water carriers
owned by the railroads, (2) from the time the railroads disposed
of the water carriers to the passage of the Transportation Act of
1940, or what may be termed as the period before regulation, and
(3) after the passage of the Transportation Act of 1910, or when
these lines became regulated carriers. It was thought that these
data brought together in this manner would be helpful to those
interested in the trends of package freight tonnage in the past and
the financial results of those carriers operating this class of
services.
While the package freight tonnage is small as compared with
the bulk freight tonnage, interest in its transportatiºn is two-
fold: (1) it is competitive with the railroads, and (2) at one
time this tonnese was transported in vessels owned by the railroads.
Because of the latter, some observations have been made of the
problems that would confront the railroads should they consider
entrance intº lake transportation.
December 9, 1946.
f 63.7–3.
SUMMARY -2 3.
Lakes Superior, Huron, Erie and Ontario situated with connect-
ing waters between the United States and Canada, and Lake Michigan
lying wholly within the United States, constitute the Great Lakes
and form a natural transportation highway for Water-borne Commerce.
The connecting waterways are the St. Marys River between Lakes
Superior and Huron, the Straits of Mackinac between Lakes Michigan
and Huron, the St. Clair River, Lake St. Clair and the Detroit
River between Lakes Huron and Eries and the Welland Ship Canal con-
necting Lakes Erie and Ontario. The commerce, in 1929, amounted to
slightly more than 161.3 million tons with practically the same
amount transported in 1937, after a decline in the intervening years.
The largest amount transported in any year was in 1942, when 213.2
million tons were carried.
The first American ship on the lakes was built at Erie, Pa. in
l/97, the first steam vessel was built on Lake Untario at oswego in
1816, and the first trip by steamer was made from Lake Erie to
Chicago in 1832. Motor vessels appeared in 1897s
The first tanker, Canadian owned, appeared on the Lakes in 1910.
A United States tanker entered the trade in 1912. By the end of 1931
the fleet had increased to lº, Canadian and ll United States vessels,
and at the opening of the season of navigation in 1945 there were 34
Canadian and 36 United States tankers.
In 1937, out of 518 vessels of United States registry, 1160 were
bulk freight carriers, 26 package freight carriers and 32 oil tankers.
The lake fleet at the beginning of navigation in 1945 consisted of
&mi-
659 vessels, lilº of American registry, with an average capacity of
3. thousand tons, and the remainder were of Canadian registry, with
an average capacity of li thousand tons =
A large part of the terminals on the Great Lakes are specially
designed and equipped to handle wak cargo. The ore loading facili-
ties at the upper Lake ports consist of docks that range from 920 to
2,304 feet in length, and from 66 feet 6 inches to 84 feet in height,
and are equipped with bins and pockets into which ore is dumped from
specially designed cars brought direct from the miness The ore is
loaded into vessels by means of gravity by opening a trap at the bot-
tom of the pockets and allowing the ore to pour through spouts into the
vessels' holds. At the lower Lake ports unloading gear consists of
electrically operated ore unloaders equipped with buckets ranging in
capacity from five to 17 tons.
Loading equipment for vessels loading coal at the Lake ports is
usually of the car-dumper type. Loaded cars are rolled down to a
pit by gravity, whence they are drawn by cable up to a loading plat-
form and clamped to a cradle. They are the n raised and inverted,
dumping the contents into a pan, whence the coal travels by telescopic
chute into the vessel's hold. The unloading facilities consist of
electrically operated traveling bridge cranes equipped with clam-
shell buckets. These docks are owned by coal and steel companies,
and the railroads.
In 1955 there were 92 package freight terminals at the United
States ports on the Great Lakes which had a combined berthing Space
of 33,079 lineal feet and serve li, 277, 589 square feet of transit shed
area. The majority of these terminals were owned by the railroadse
* 63hillſ—5
The traffic is divided into two classes, (1) bulk traffic or
the commodities, transported without transportation mark or count
and without wrapper or container, which can be poured, scooped or
shoveled, and (2) package freight traffic. The movement of the bulk
commodities amounts to more than 95 per cent of the total tonnage,
and the remainder is package freight. The principal bulk commodities
are iron ore, coal, grain and stone.
Iron ore contributes about an average of 50 per cent of the
total tonnage and moves from the head of the Lakes with Superior,
Duluth and Two Harbors as the principal shipping ports. The major
portion is shipped to Lake Erie ports, the principal ones being
Cleveland, Conneaut, Ashtabula, and Buffalo. More than 22 million tons
were shipped to Lake Michigan ports in 1943 and 1941.
Of the 60 million tons of coal carried in 1911 nearly 98 per
cent was soft coal and the remainder anthracite. The largest move-
ment of soft coal was from the Lake Erie ports with Lake Ontario
ports shipping slightly more than three million tons and Lake
Michigan ports one-half that amount. The Lake Erie ports of Toledo,
Sandusky and Ashtabula shipped 80 per cent of the tonnage and the
major portion was destined to Lake Superior and Lake Michigan ports,
The anthracite coal movement amounted to slightly in excess of l. li.
million tons in 1914, The most of it was shipped from Buffalo,
Ashtabula and Erie, and more than 50 per cent was destined to Superior,
Wisconsin, 28 per cent to Milwaukee, and the balance to Detroit, Lake
Superior and Lake Michigan ports other than Milwaukee.
The grain movement consisted of wheat, corn, oats, bye, barley,
flax, screenings and soy beans, totalling in 1941 to slightly more
than 591 million bushels, almost 16.3 million tons. Wheat was easily
the for-most grain moved. Over a 15-year period, 1930 to 1911, in-
63||17–6
clusive, it constituted 70.6 per cent of the movement, Most of
\,
\,
the lake grain moves from the Canadian ports of Fort William—Port
Arthur and the United States ports of Duluth-Superior, both on
Lake Superior. Ia 1914, a total of 73.3 per cent was from Fort
William—Port Arthur and 19.9 per cent from Duluth-Superior. The
remainder moved from Lake Michigan ports. Of the lake receipts in
1944 the United States ports took 60.8 per cent with Buffalo as the
principal port of receipt, and the remainder went to Canadian ports.
This grain was handled almost equally, as to volume, as between
vessels of American and of Canadian registry. Practically all
Canadian vessels were employed in the movement from Fort William-
Port Arthur, while American vessels were employed in the movement
from American ports as well as in the Fort William-Port Arthur
movement.
Stone, sand and gravel, petroleum and products made up the
larger portion of the balance of the bulk commodity traffic. The
stone tonnage amounted to 16.8 million tons in 1944. The petroleum
movement, which has shown an increase since 1929, amounted to
slightly more than 10 million tons in 1944.
The transport of railroad cars across the Great Lakes was in-
augurated in 1883, when the ſlackinac Transportation Company placed
a ferry in scrvice between Mackinaw City and St. Ignace, Michigan.
ncipal car-ferry companies aye, the Ann Arbo; Railroad Co.,
Grand Trunk Milwaukee Car Ferry Company, ackinac Transpo
The pri
Co., Ontario Ferry Co., Ltd., Pennsylvania-Ontario Transportation
Co., Pere Marquette Railway Car Ferry Service and Canadian Pacific
Car & Passenger Transfer Company.
The car-ferry traffic, in 1943, amounted to more than seven
million tons, and the passenger traffic amounted to 6.5 million
passengers, of which 37 per cent were ferry passengers, 36 per cent
regular passengers, and 27 per cent excursionists.

\ 631ſliſ–7
*
The domestic package freight commerce on the Great Lakes
amounted to 2.3 million tons in 1920, with an everage of 2.4 million
tons for the four-year period, 1920–1923. During the period 1924–
1928 the average rose to 3.1 million tons. In the decade, 1931–1940,
the tonnage ranged from 2,089,000 to 3,965,000 tons. The foreigh
package freight averaged 376,000 tons. The principal commodities were
flour and meal, cement, lime, automobiles, paper, sugar, and iron and
steel. |
Transportation by the package freight or regulated carriers dif-
fered in one respect from that existing on other waterways. During
the early 1900's the most important lake lines were owned by the rail-
roads. The tonnage transported by the seven railroad-owned limes
amounted to 3.86 million tons in 1905 and 4.36 million tons in 1907,
the peak year, declining to 3.52 million tons in 1914. Practically
all of the carriers transported some commodities in bulk. The largest
part of the traffic, in 1914, consisted of products of agriculture.
This commodity group contributed 62.5 per cent of the total tonnage,
with flour as the principal commodity. The manufactured products were
responsible for 23 per cent of the tonnage, and in this group sugar
was the principal commodity. The investment of these carriers averaged
$11.6 million during the period 1905 through 1914. The operating ratios
ranged from 90.5 in 1906 to 103 in 1914. The net income was favorable
for the first three years, 1905–1907, however, after that it acclinea
until in 1914 these carriers had a deficit of $334 thougènd.
Several years following the passage of the Panama Canal Act of
1912, the Inter state Commerce Commission denied, after a hearing, the
petitions of the railroads to continue the operations of these car-
riers. In March, 1916, the Great Lakes Transit Corporation was in-
6317-8
corporated and acquired virtually all of the lake vessels formerly
owned by the railroads. In 1916 this company handled almost 700
thousand tons less than six railroad-owned lines handled in 1914.
The tonnage carried by was co-ºw declined in the years following
its organization, reaching a low mark in 1934 of 785 thousand tons.
In 1916, 1925 and 1934 the products of agriculture contributed the
largest amount of tonnage, with the manufactures and miscellaneous
commodities ranking second. In 1940 the order was reversed. During
these four years flour and other mill products were the principal com—
modities in the products of agriculture commodity group. Animals and
products group consisted chiefly of butter, cheese and wool, and auto-
mobiles, iron and steel articles and sugar were the *incipal commodi-
ties included in the manufactures and miscellaneous commodity group.
A large portion of the traffic either originated or terminated, or
both, at points on the railroads and moved under joint arrangements of
the two modes of transport. The principal ports handling package
freight in 1940 wore Buffalo, Duluth, Detroit and Chicago. Buffalo
and Detroit receipts were greater than the shipments, while at the
other ports the shipments exceeded the receipts. By the end of l925
these carriers increased the invostment in transportation property
and equipment 50 per cent as compared with 1916, and at the end of
1934 it amounted to $24,570,000, which was slightly higher than in
1925. They closed 1940 with an investment of $17.9 million. At that
time most of the vessels were 20 years of age or over, substantiating
the fact, often stated, that the Great Lakes package freight fleet was
made up of obsolete ships. The packago freight carriers enjoyed a
good year in 1916, when the net income of three of the four companies
was $2,354,000. In 1925 their net income decreased, and in 1934 and
63.4147–9
1940 they earned no income. The Great Lakes Transit Corporation,
which took over the services of the railroad-owned limes, had a freight
profit of $1,727,000 in 1916, the first year of its operation. In 1920
its profit was $659,000, in 1930 it was $134,000, and in the years
1936-1939, inclusive, this carrier operated at a deficit. In 1916 its
net current assets were $1,064,000 as compared with $535,000 in 1940,
and the net equity in its transportation property and equipment was
$1,175,000 in 1910 and $2,805,000 in 1916,
With the passage of the Transportation Act of 1940 the lake
transportation entered upon the third period, or the period of regu–
lation. In June, 1942, the War Shipping Administration commenced
taking the ships of the Great Lakes Transit Corporation, and by the
end of that year package freight transportation on the Great Lakes was
practically discontinued. This carrior transported grain for account
of the War Shipping Administration during 1945 and 1914. In 1945
*
g
it sold its remaining ships, and at the end of 1945 it was not in
operation and had no vessels. After 1942 the package freight was
transported almost wholly by the Detroit & Cleveland Iſavigation Company.
The automobile traffic, while small in volume, is of great
importance to the principal regulated carriers. Some of the equipment
used is specially built for the handling of automobiles. The prin–
cipal automobile carrier was the Nicholson Universal Steamship Co.,
During the period 1933 to 1940, inclusive, they transported approxi-
mately 50 per cent of the automobiles.
With the sole exception of 1937, the automobile operations of the
Nicholson Universal Steamship Co, consistently reflected annual losses
throughout the period 1930 to 1940, inclusive, due to the available
Surplus of transportation facilities and the increased cost of opera-
6317-10
tions. Practically all of the items of expense showed an increase
in May, 1941 as compared to those in May, 1938.
The cost to this carrier from the opening of navigation to
August 1, 1941, for the transportation of automobiles in automobile
vessels from Detroit to Cleveland, when proper allocation of taxes,
depreciation and other items of expense was made, was $27.73 per
automobile. The cost of transporting automobiles on both the auto-
mobile and the combination automobile and bulk vessels was $25.43 per
automobile.
The private and exempt carriers transport the major portion of
the traffic on the Great Lakes. Their vessels are large, and in 1944
the average iron ore cargo was 10, 713 tons, although Some vessels
were capable of carrying as much as 13 thousand gross tons. An im-
portant factor in the économical operation of ore carriers is the
opportunity to secure return loads. Many of the vessels transporting
ore eastbound carry coal westbound. The average load in the coal
trade was 3,797 tons and the largest cargo transported was 15, 189 tons
in 1944. Vessels in the coal and ore trade are also suitable for the
transportation of grain. During the 1944 winter season 205 vessels
were used for storage purposes,
The cost for transporting 10 thousand tons of ore in one direc-
tion for an average distance of 35.4 miles and the same amount of coal
on the return voyage was .775 mills per ton-mile in 1942. In the
case of a cargo of 14 thousand tons in each direction the cost per
ton-mile was . 37076 mills. -
The operations of one contract or exempt carrier netted its
owners $16.63 per share in 1944 and $26.55 per share in 1945. Its
earnings from 1939 to 1943 ranged from $36.98 to $14. 73 per share.
Another carrier owning 15 steel steamers and transporting 75.7
63||17–ll
million tons in 1945 realized a net profit of $1,217,580 from the
Operations.
There are several carriers, although they have secured operat-
ing authority from the Interstate Commerce Commission to transport:
commodities generally, they have transported, almost wholly, traffic
exempt from regulation. Four of such carriers transported ll.9
million tons in 1941 and 12.3 million tons in 1944. The traffic
consisted chiefly of grain, coal and iron ore. These carriers as a
group had operating ratios ranging from 81.5 in 1941 to 91.8 in 1944.
With the exception of one company, which operated one year at a de-
ficit (in 1942) each company in each of the four years, 1941-1944,
earned a net income.
Tanker traffic consisted of petroleum and its products. In 1944
there were 70 tankers employed in the Lake trade, owned and Operated
chiefly by the oil companies, and transported 10 million tons •
The Federal costs attributable to the Great Lakes ports in 1940
averaged 3.3 cents per ton, excluding duplications of traffic. To
this must be added the cost of improvements in connecting channels,
which brings the average Federal aid for the Great Lakes, considered
as one system, to 5. 2 cents per ton, or only 0.1 mill per ton-mile
on net to tal Great Lakes traffic reporta in 1940.
The carriers operating bulk freighters will have little diffi-
culty in adjusting themselves to peacetime operations in the postwar
period. The fleets are owned by well-financed companies and no dif-
ficulty is anticipated in keeping a sufficient supply of ships avail-
able for the transportation of bulk cargoes.
63||17–12
The operators of package freight services will experience diffi-
culty in the resumption of services. During the war these services
were practically discontinued and at the end of the war the operators
were without vessels and organizations. The volume of package freight
on the Great Lakes has declined in recent years. The amount of pros-
pective available traffic will depend upon the conditions of the in-
dustries formerly served and upon their attitude to return to the
slower steamer service.
At present there are no suitable vessels available for the use of
the package freight operators, and if they wish to build up their
fleets it appears they must purchase new vessels. It is doubtful that
these operators are financially able to purchase new vessels. Aside
from their ability such an investment will, to a large extent, depend
upon the prospects of profits, and the prospects must include consi-
deration of (l) prewar operations have not been profitable, (2) cost of
operations have increased since the discontinuance of services, (3) com—
petition of improved services of railroads, freight forwarders and
trucks, and (4) the freight rates they are able to charges
r” 634);7–13
OBSERVATIONS AND CONCLUSIONS .
On this waterway where there is the largest amount of water-
borne commerce there is also the greatest amount of coordination
of rail and water facilities to accomplish efficient performance of
services. Practically all of the bulk commodity traffic is trans-
ported to or from, or both, the lake ports by railroad.
Wessels specially built for the trade and harmonized with
terminal facilities permit the loading, unloading and interchanging
of cargoes with utmost dispatch. For a large part of the season two-
way cargoes are available.
Because of the need of the large quantities of ore and coal in
this territory during the war opportunity was afforded these car-
riers to experiment with larger vessels than before the war. This
proved to be an advantage.
The war did not materially reduce the number of vessels suit-
able for bulk cargo transportation. Some additions to the fleet were
made in 1942 and 1943. Most of the fleets are owned by well-financed
Companies who are able to purchase new vessels, when needed, to meet
the requirements of the trade • However, there will be a tendency to-
Ward keeping the present vessels in good repair because the cost of
louilding of new vessels is highs There is likely to be few new
vessels built in the early postwar years,
Thus, with the specially built ships of large cargo-carrying
capacity, highly developed facilities for the transfer of cargoes
and the availability of two-way cargoes, lake bulk operators pro-
vide transportation at such low cost that no other mode of trans-
port is in a position to compete for the traffic. With the
satisfactory employment of larger vessels during the war there is
likely to be a tendency in the future to the employment of large
63||||7–14 w
vessels, and the elimination of smaller ones resulting in lower
operating costs per unit. The bulk cargo carriers will not have
difficulty in adjusting peacetime operations in the postwar years.
t–
Higher wages and higher costs of supplies and fuels have in-
creased the oparating costs of the bulk carriers. The opportunities
to reduce the overall operating costs are limited, for the reason
/ •
that the time in Abort of vessels (a very important factor) is now at
/
a minimum, and/the possibilities of further improvement or reduc-
tion in tiſſiº/ consumed in loading and unloading are small. The
Speed of the vessel between ports may be improved a little which may
increaseſ the number of trips slightly, There is also the possibility
ing two-way cargocs at certain times of the seasone Howſ-
ome of the operators, particularly those transporting iron
re not inclined to seek return cargoºs because of their sche-
dule? operations. In other words, delays in loading and unloading
return cargoes may have a sorious effect upon their surplus sur-
pl{ies of ores *
Transportation of package freight presents a different pictures
Change of ownership of the water carriers occurred in 1916 as the
rºsult of the Panama Canal Act, Package freight tonnage has declined
fince that times In dealing with package freight operations on the
Great Lakes the report of the Federal coordinator, "Regulation of
Transportation Agencies" 1ſ under "Economic Effects of Panama Canal
Act" states :
"Most of the railroad-owned steamers on the
Lakes passed into the hands of the Great Lakes
Transit Corporation, organized in 1916, which has
Since operated as a package–freight line between
Buffalo and other Lake Erie ports on the one hand,
and Chicago, Duluth, and other ports on Lakes
Michigan and Superior on the other hand. It has
also continued to operate three passenger vessels
1/ Senate Document No. 152, 73D Congress 2d Session.









ſº 63||17–15
'between Buffalo and Duluth, formerly belonging to
the Pennsylvania's Anchor Line. Several other boats
were taken over by the Rutland-Lake Michigan Trans-
portation Co., which for a number of years operated
them between Ogdensburg, N.Y., and Chicago, but it
never prospered financially and discontinued opera-
tions 7 years ago. In addition to the Great Lakes
Transit Corporation, there are now in operation the
Minnesota-Atlantic Transit Co. between Buffalo, and
Duluth, and the Nicholson Universal and Spokane
Steamship Co s, , between Lake Erie, Lake Michigan,
and Lake Superior ports. The last two specialize in
transportation of automobiles but also carry some
package freight . There are some cross-lake and local
Operations by motor manufacturing companies.
"In 1915 the railroad-owned steamers in opera-
tion on the Great Lakes numbered 56. In 1931 the 4
Companies presently operating corresponding service
owned 34 vessels and operated 20. Package freight on
the Great Lakes has been steadily shrinking in
volume for many years. General merchandi se carried.
through the canals at Sault Ste. Marie, Mich. ,-Ont. . ;
reached an all-time peak of 1,770, 860 tons in 1915,
and in 1928 amounted only to 863, 140 tons, a decline
of 51 percent. Package freight moved into and out
of Chicago by the Lakes in 1930 was about 23 per-
cent of the tonnage in 1902 and 39 percent of that
in 1916.
"The change of control of the Great Lakes rail—
road-owned lines did not bring about any increase in
Water-borne package freight on those waterways. The
change became effective in 1916, and in the 13-year
period beginning with that year receipts and ship-
ments at Chicago were lili.5 percent of those in the
preceding lº years. General merchandise carried
through the Soo Canals in the period 1916-28 was 58
percent of that in 1903-15. The Great Lakes Transit
Corporation in the first year of its existence, 1916,
had a larger tonnage than it has had in any subse-
quent year. Truck competition has, of course, been
a factor in recent years."
It was developed from responses, from 19 common carriers, to
a questionnaire that,
"This group owns many more ships than are needed
º for handling the tonnage transported in recent years.
As of June 30, 1933, 22, or about 35 percent of the *
steamships in the fleets were out of service. The
average loading of those in operation probably has not
exceeded 50 percent of capacity during the past 5
years. In some instances practically full-capacity
loads are carried; in others, not more than 2 percent
of capacity is utilized."
634.47–16
There were 13 carriers that submitted data on their yearly
tonnage, from which it was noted that the tonnage handled in 1932
was 1,754,852 tons less than that in 1928, a decrease of about lil
per cent.
"The traffic of one of the oldest and best oper-
ated of the Lake lines has decreased 74.3 percent since
1916, despite the mainténance of excellent service and
of earnest effort to attract business to its route,
The experience of this company is said to be typical
of that of other Lake carriers." -
The tonnage of less-than-carload freight, as reported by
seven companies for the years 1923 to 1932, and by ten companies
for the years 1929 to 1932, amounted to 245,137 tons in 1928 and
101,572 tons in 1932. This tonnage was 7.91 per cent of the total
tonnage handled in 1928 and 1.7 per cent of that handled in 1932.
The decline in tonnage of the common carriers was attributed
to many things. The report states:
"Some contract carriers have encroached upon
the traffic usually handled by the package–freight
carriers and by cutting rates have forced large re-
ductions by the latter, resulting, in some instances
at least , in an unduly low, rate level, The automo-
bile traffic affords a notable instance of such con-
ditions. Contract carriors seek dieckloads of auto-
mobiles for ports to which they contemporaneously
handle bulk cargo and in some such instances have
charged rates which were from 75 to 85 percent lower
than those of the package–freight carriers."
Despite the fact, as noted above from the above quotation,
that encroachments within the industry were severe, the report
states,
"As stated, the Lake lines attribute to the
railroads much of the responsibility for their
...” present unfavorable situation.
"There is much competition, however, from
other sources, as follows: -
le Forwarding companies, who operate
over railroads and furnish store-door-pick-
up and delivery service with their own and
contract trucks,
63ini-17
2. Motorships operating between the
Atlantic seaboard and Lake ports, carrying
through traffic without broaking bulk.
3. Some bulk-cargo carriers, who trans-
port automobiles on deck at rates lower
than those quoted by regular freight lines.
H. Common-carrier motor–truck com—
pan ièS. *
5. The unregulated contract truck opera-
tors and unregulated drive-away companies.
The operations of forwarding companies have broken
down class rates, and those of the unregulated interstate
motor trucks have been particularly destructive. To meet
Such competition the package carriers have been obliged to
make drastic roductions in their port-to-port rates, and
in Some instances have 3 stablished through rates with
trucking compani s. " º
What ever may have won the cause for the decline prior to
1932 the tonnage did not increase in later years. ine tonnese *~
reported to the interstate Commerce Commission by the principal.
lake lines in 1934 and 1940 was less than that transported in
1916 and 1925. A
Package freight transportation was practically discontinued
during the war chiefly because the vessels were taken from the ,
trade. Very few, if any, of the prewar vessels will return to the
trade. Available war-built vessels are not suitable for economical
and efficient operations in the trade. Therefore, it appears that
it will be necessary for these carriers to build new vessels. On
the other hand, it has been said that the financial results in the
prewar years were not sufficiontly adequate to permit the accumula-
tion of reserves for the purchase of new vessels, and as vessels
operating in this trade are not eligible for subsidies, such caids
as loans afforded them under the present statutes are not of much .
as sistance to them.
63||17–18 --
Competition with other modes of transport will be more severe
in the postwar period than in the prewar years. The tonnage has
shown a decline in volume almost consistently each year since the
railroads discontinued vessel operations.
The cargo handling methods of the prewar years cannot be con-
tinued but must be improved to reduce the high stevedo ring costs
and reduce the vessel-time in port in order to reduce operating
expenses. With the decreases in the volume of tonnage and the in-
creases in Operating expenses in prewar years, it is very doubtful
if these carriers could have operated very long even if there had
been - no World War II e
Because of the competition of other modes of transport the
volume of package freight on the Great Lakes during the postwar
years is likely to be small. A small amount will be transported
by carriers engaged in bulk carrier operations. However, as to the
strictly package freight carriers it will be very difficult for them
to resume profitable operations under private, ownership,
As the railroads owned and operated the steamer lines at one
time some observations have been made of the conditions in the
package freight trade and the problems which would confront the
railroads should joint ownership and operation be considered.
The problems that face the railroads are much the same as those
which confront the other boat operators, i.e., the difficulty of
securing suitable ships for economical and efficient operation, the
competition of railroads, motor trucks and freight—forwarding com—
panies, the decline in the package-frcight tonnage, the high operat-
ing costs and the low freight rate level.
635-19
Some railroads may be in a position to finance the purchase
of new vessels. The competition of other modes of transport is
likely to be the same whether the water carrier is owned by, a rail-
road or someone else. For the most part the water operations
would compete with paralleling railroads. Whether there would be
an increase in the tonnage depends upon the service, rates and com-
petition. No discussion of rates will be undertaken, for the reason
that each rate adjustment presents many angles and requires treat-
ment based upon conditions existing at the time. However, one thing
is certain. They must be considerably higher than in the prewar
years, as will be observed from the results of the operations of one
of the largest package–freight carriers over a number of years, and
shown in the tabulation below.
The most important problem is the operating cost. The exper-
ience of the largest package freight carrier is #aken as a back-
ground for, or an example of, package freight operations, and com—
ments are made looking to possible improvements that might result
in profitable operations.
In a study2/, made by the Board of Investigation and Research,
of the operations of the Great Lakes Transit Corporation, 1934 to
1940, inclusive, the revenue and cost per ton were developed as
are shown below.
2/ Comparison of Rail, Motor, and Water Garrier Costs, 1944.
- 63]).7–20
Average per ton: -*
l. Operating revenue. . . . . . . • * * * * * * * * * - $3.17
2. Operating axpense -
(a) Wessel operations:
Wages. . . . . . . . . . . . . . . . . . . $ .49 S-
Fuel . . . . . . . . . . . . . . . . . . . . . 27
Repairs . . . . . . . . . . . . . . . . . . 29
Insurance . . . . . . . . . . . . . . . .30
Other items. . . . . . . . . . . . . • 22
Total vessel expense . . . . . $ 1.57
(b) Port expense:
Stevedoring. . . . . . . . . . . . . l. l8
sº Other items . . . . . . . . . . . . . . 22
Total port expenses. . . . . . - l. 110
(c) Terminal expense:
Maintenance . . . . . . . . . . . . . . .02
Other Shipping expense. . .34
Adminstrative and
general . . . . . . . . . . . . . . •ll
Advertising . . . . . . . . . . . . . . . O2
Depreciation (vessels
and other). . . . . . . . . . * * • 22
Taxes, other than
Federal . . . . . . . . . * * * * a s tº .02
Provision for Federal
taxes . . . . . . . . . . . . . . ‘p a ge , Ol
Total terminal expense . . . ..Tº
Total operating expense. . . . . . . . . . . . . 3. 71
Deficit (or loss) . . . . . . . . . w $'. 21.
The non-waterline revenue was $16,642 and the non-waterline ex-
penses and appropriations were $516, 805, resulting in a deficit for
the period of more than $2 million.
However, the above tabulation is only part of the picture of
the results of the operations of the Great Iakes Transit Corporations
The recent maritime- strike has resulted in higher wages for all workers,
and it can be safely said that wres of crews and stevedores aft->r the
strike period will be at least 50 per cent higher than in the prewar
years. There have been increases in other ship operating costs. On
the other hand, freight rates as a whole have been increased but º
fraction of this increase in expenses.
Now, going back to our example, the Great Lakes Transit
Corporation. It was the largest package carrier and the one that
took over the operations of the railroad-owned lines after 1916.
Its operations resulted in a loss for the entire period, 1931 to
63.417–21
1940. Taking this result as a starting point, two things must te
done to prevent operating deficits. Operating costs must be reauces
and more tonnage secured at higher rates. As to the operating ex-
penses, wages of crews and freight handlers constitute the largest
item. It will be found very difficult to reduce the rates of pay.
Labor saving devices have been assesses to reduce the stevedore
expense. However, it has been said that when such devices had been
installed the labor unions permitted them to be used only on a small
part of the cargo avoiding a reduction in the take-home pay. Only
Small savings, consequently, were realized. Containers for the
handling of this traffic have been Suggested. This method probably
has the greatest possibilities for reducing the cargo-handling costs,
but it also has its limitations. Much of the Sucess depends upon the
volume, the flow and the fluctuation of the tonnage. The first consid—
eration is the cost of the containers and the investment in the machin-
ery for the handling on the docks and to and from the vessels.
Again going back to the Great Lakes Transit Corporation, and
commenting upon the possible use of containers on the traffic handled
in 1940. This carrier transported 15, l'HO tons of less-than-carload
port-to-port traffic in 1940. None was handled in joint rail-and-water
Service. As the commodities with amounts transported are not avail—
able, the handling of this type of traffic in containers cannot be
discussed. However, it is appropriate to observe that this traffic
amounted to less than two per cent of the total tonnage, and conclude
that after taking into consideration the interest upon the investment
of the containers and upon the machinery installed for their handling,
the saving would be extremely small,
63a7-22
As to the use of containers on the carload port-to-port traffic.
There are possibilities of some savings on this traffic, because the
traffic may be loaded by the consignee or unloaded by the consignor,
or both, either at the plant or at the dock. If loaded or unloaded
at the plant, there would be a charge for transportation to and from
the dock. whether loaded or unloaded at the plant or at the dock,
there would be a saving of time and expense in loading to or unload-
ing from steamer as compared with the prewar method of handling each
piece of freight on hand truck or trailer. However, even as to this
traffic there are limitations, for the reason that there would be some
traffic that could not be loaded into containers. In 1940 the Great
Lakes Transit Corporation handled 34,806 tons of automobiles and
12,705 tons of butter, which could not be handled by containers. No
doubt there are other commodities, such as lumber, steel and the *
like, that could not be so hanaia. {
As to the joint rail-and-water traffic. This traffic consisted
entirely of carloads, and * large part comprised possibly less than
a dozen commodities, and possibly involved only a few shippers and
receivers of each commodity. Therefore, there is reason to believe
that the containers could be used. For example, the Great Lakes
Transit Corporation in 1940 transported 309 thousand tons of wheat
flour and 90 thousand tons of mill products. This traffic could, no
doubt, be loaded by the shipper at his plant and unloaded by receiver
at his plant or at the dock. But, if loaded at the plant, there is
involved the matter of getting the containers there, which In 63.11S Đll
additional charge for transporting empty containers to the shipper's
Warehouse. Then there is to be considered the flow of traffic. While
the shippers of the commodities mentioned above have considerable
6317–23
traffic for outbound movement it, is likely that they would receive
little, or possibly no, inbound warrie, was necessiºns rail
hauls of empty containers upon which the water carrier would be .
assessed charges. The same condition would exist at the destina-
tion if there were no return cargoes. An indication of the possible
transportation of empty containers by railroads and steamers may be
gathered from the fact that the Great Lakes Transit Corporation
transported to Buffalo 571 thousand tons in 1910 and shipped out only
161 thousand. This company transported from Chicago slightly less
than 173 thousand tons and carried to Chicago slightly less than
64 thousand tons. It loaded out of Cleveland 33 thousand tons and
received at Cleveland only about seven thousand tons. This unbal-
anced cargo situation would necessitate the transportation of many
empty containers. While the transportation by the steamer line would
not cause an expense there would be involved the expense of loading
and unloading these empty containers to and from the steamer, and
those transported by rail would be subject to a transportation charge,
and both would add to the expenses of handling this traffic in con-
tainers. *
A review of Table XIV (page 119) develops that a smaller portion
of the traffic is local traffic on which this carrier secured its best
revenue. Therefore, the quickest way to increase operating revenues
is to secure more local traffic. It is not likely that it can be
ſ
|
secured from the motor trucks or freight forwarding companies. Some
may be taken from the other water lines. The only source left is
traffic now handled by the railroads. This carrier handled a large
amount of joint rail-and-water traffic. However, from available data.
the handling of this traffic was not profitable, This may have been
caused by the small amounts received, and had larger amounts been trans-
- 65urſ-2",
ported it might have proved profitable. This, for the reason that
ship operating expenses do not increase with the *on of cargo.
To get this additional cargo the major portion would come from the
railroads. f f
The foregoing comments on package freight transportation in-
dicate that
l. With no suitable vessels available new ships must
be acquired which involve a large investment.
* 2. The present high rates of pay for maritime work-
ers cannot be reduced,
3. The prewar method of handling cargo is expensive.
H. The use of labor saving devices will not reduce
substantially the freight handling costs, the largest
single item of expense.
5. The profitable use of containers appears doubtful
because of the unbalanced movements causing the transpor-
\
tation of empty containers ,
6. An increase in the tonnage of the water carrier,
particularly local traffic, is necessary for the water
carrier to operate profitably.
7. Any substantial increase in the traffic, local or
joint, would come from that now carried by the railroads.
8. Freight rates must be higher than during the pre-
war period, yet sufficiently low enough to attract traf-
fic.
There are no data available to indicate that ownership of a
water carrier by railroads will reduce operating costs. The rates
of pay of maritime workers would be as high under railroad ovſner-
ship as under any other. The same applies to the costs of materials
- & # 63||||7–25
ſ
f
and supplies. This conditon would not permit - the charging of
lower rates under railroad ownership to attract traffic. There
are no data to indicate that water carrier services could be im—
proved sufficiently under railroad ownership to attract a substan–
tial greater amount of traffic than if the Water carrier is owned
by any other experienced operator. If the tonnage should be in-
creased it is likely that a part, and maybe the larger part, would
be traffic formerly handled by the railroads, causing a loss to the
latter.
Under these conditions and circumstances, it is concluded that
water carrier operations under railroad ownership will not be any
more profitable than under the ownership of independent steamship
operators.
A suggestion has been made that the railroads operate a service
similar to a car-ferry between the lake ports; that is, vessels con–
Structed with tracks to receive and discharge rail equipment with
space provided for the handling of ioaded trailers. This method of
Operation has the advantage of
1. Peducing the delay of ships in port, thus re-
Sulting in more trips per season.
2. Reducing the expens Fe transfer of tonnage
from and to cars, resulting in a reduction
in terminal costs and damage claims.
3. Removing the limitation of commodities presently
transported in lake service, making possible the
transportation of all commodities loaded in rail—
wray cars, trucks and containers.
H. Improving the time in transit, making it more
comparable with the transit time via all-rail
route S.
S -- 63||17–26
To enter into this form of transportation it would require large
expenditures for vessels and the building of terminals to accommo-
date Such an interchange arrangement.
While this method would reduce the operating costs and im—
N.
prove the service of lake transportation, it would also set up a
competitive factor for the railroads which does not exist. The
operation is really workable, in a large part, in connection with
traffic Originating and terminating on the railroads. It may be
concluded that this method would be instrumental in diverting tonnage
from the all-rail routes, although some of the present lake traffic
would be diverted from other water carriers because of the more
attractive service.
Another situation has been examined. t deals with the case
/
of a railroad operating between two lake ports (A and B) entering
into lake transportation. It was developed
l. The trucks are handling the major portion
Of the less-than—Carload tonnage.
- 2. The boat line at present operating between
the two ports handled over all of its services, in
1945, 54,000 tons of less-than-carload freight, al-
though there are no data available as to the amount
transported from A to B.
3. The railroad is handling very little local
traffic,
H. Should the all-rail services be improved,
the prospects for securing additional traffic are
poor.
As the trucks are transporting the major portion of the local,
or port-to-port, traffic which pays the highest revenue, the real
source for this additional class of traffic (for the boat line) nar-
rows itself to the traffic handled by the trucks, If the railroad,
at the present time, cannot secure any more of this traffic it is
* 3.
A
6317-27
very unlikely that a boat line can take it away from the trucks.
The present boat service is not doing it. The only attraction for
securing the traffic from the trucks for the boat line would be
lower rates, and the high operating costs of the latter would not
permit a much lower level of rates . y
Therefore, it is necessary to look to other sources for traffic.
At the prosent time there are about 75 carloads of less-than-car-
load. freight loaded at oort city. A for port city B each month moving via
all rail. Of the total number less than 10 per cent is local traffic.
All of the other traffic is transferred, i.e., coming in from points
beyond A and there reloadied for 3 and for points beyond. If any of
this traffic were delivered to the boat line at A in joint rail-and-
Wat or service it would. doprive the rail line of its haul to B.
There is another feature irºvolved in the handling of joint
rail—and-water traffic. On the traffic roferred to above that breaks
bulk at A the handling cost for unlot jing cars is between $2.50 and
$3.00 per ton. If there woro track concoctions with the waterfront
the traffic could be interchanged by car in switch movement. At this
point the handling cost on joint rail-and-water business would be the
same as on all-rail, because the car must be unloaded and another
loaded for movement by railroad to B, the same as if the traffic were
Switched to the steamer line's torminal. However, when joint rail-
\
and-water traffic is handled in switch movement, there would be a
Switching cost from the rail line to the steamer line terminal. This
cost may be easily figurod to be at least $1.00 per ton. In addition,
there would be the cost of unloading tºo car to steamer, which might
bo figured at about $2.00 per ton, resulting in a total, cost of
$3.00 per ton.
63||17–23
Should the water line terminal have no track connections it
would then be necessary to make the interchange by truck. If there
were a truck standing by all day at the rail terminal for this
interchange of freight the cost o: handling out of car to the truck
may very Woll be the same as in the case of the handling from car to
car on all-rail business, or $2.50 per ton. If it were necessary to
place the freight on the platform for concentration and segregation,
there would be an additional cost to load from platform floor to
truck. To be conservative, it might be said that at this point the
cost differs very little from that incurred when traffic moves by
rail beyond A. However, the truclzing charge from the rail line
terminal to the waterfront terminal is about $2.50 per ton, and
with the cost of $2.00 per ton for unloading from truck to steamer,
the total cost becomes $4.50 per ton.
The above deals with less-than-carload freight. On carload
freight the handling cost at A, if the Water line terminal had a
rail connection, would be a switching cost from yard to water line
terminal and $2.00 per ton for unloading from car to steamer. If
the terminal did not have a track connection, a cost for placing the
car accessible to the truck and unloading from car to truck, amount—
ing to at least $1.00 per ton, $2.50 per ton trucking charge from
yard to Waterfront terminal, and $2.00 for unloading from truck
to the steamer was |be incurred, }
Summarizing the above on less-than-carload traffic, if handled
'by switch movement, the cost would be $3.00 per ton, and if the
water line terminal had no rail connections it would be $4.50 per ton.
On carload traffic, with rail connections at the Water line terminal,
the additional cost would be $2.00 per ton, plus actual switching
cost from yard to waterline terminal, and if handled by truck, the
additional cost might be around $5.50 per ton.
634-29
Therefore, in addition to depriving the rail line of its haul . . .
from A to B, the additional cost mentioned above would be incurred,
In addition, the rate by the joint rail-and-water route must be
lower than by the all-rail route, for the reason that the boat line
could not attract any traffic with rates the same as those appli-
cable by the all-rail routes.
. . . - ~6317–30
TRANSPORTATION OF THE GREAT LAKES
SECTION I
HISTORY AND DESCRIPTION
/
The Great Lakes and their connecting channels form a natural
transportation highway having a water surface area of over 95 thou-
sand square miles, and a shore line of over 3,300 miles. From
Montreal, which is at the head of deep draft ocean navigation on the
St. Lawrence River, the sailing distance to the head or westerly end
of Lake Superior is about l,340 ºries, and to the head or south end
of Lake Michigan, about 1,260 miles. In each case about 1,000 miles
of the distance are through the open lakes. The Great Lakes and
their connecting channels afford access to a region notable for the
magnitude of its natural and industrial, resources. In point of
volume and importance of traffic, this lake group has no equal º 3.ſ.l.
inland route for water—borne commerce,
Lakes Superior, Huron, Erie and Ontario, with connecting waters
between the United States and Canada, and Lake Michigan, wholly, with-
in the United States, constitute the Great Lakes. However, important
passages are necessary to connect them. Tides do not occur on the se
lakes but they are subject to periodic and seasonal stage cycles.
Lake Superior, the largest of the lakes, has a length from
Duluth to Point Iroquois of 333 miles and a breadth of approximately
160 miles. Its maximum recorded depth is l, 290 feet. It is connected,
with Lake Huron by the St, Marys River,
yº | 65)||17–31
Lake Michigan is approximately 321 miles long and 118 miles
wide, with a maximum measured depth of 923 feet, and is connected
with Lake Huron by the Straits of Mackinac. Through areasing and
the construction of locks and dams at public expenses an outlet is
available at Chicago via the Illinois Waterway to the Mississippi
River. This Waterway along with the Mississippi River provides an
outlet to the Gulf of Mexico •
Lake Huron is about 223 miles long and 101 miles wide, with a
maximum measured depth of 750 feet. Its connection with Lake Erie
is through the St. Clair River, Lake St. Clair and the Detroit
River,
Lake Erie is about 240 miles in length, with a maximum width of
57 miles, and a maximum recoreded depth of 210 feet. Its connection
with Lake Jntario is through the Welland Canal. The outlet of this
lake to the Atlantic Ocean is through the ſiagara River to Tonawanda,
the New York State Barge Canal to Waterford, thence via the Hudson
River ,
Lake Ontario is about 130 miles long, 53 miles wide, and has a
maximum recoreded depth of 774 feet. This lake has two outlets to the
Atlantic Ocean, one through the St. Lawrence River and the other
through Oswego and the New York State Barge Canal via Three Rivers
and Waterford to the Hudson River.
The expenditures made by the Federal government for permanent
work on lake harbors and channels to the middle of 1944 was over
$300 million.
The St. Marys River, connecting Lakes Huron and Superior, is
about 63 miles long and has a total fall of about 21:# feet. To ty-
pass the Falls a small canal was built on the Canadian side by the
&f 634||7–32
Northwest Fur Company in 1791-93, which provided a depth of about .
two feet. This canal was destroyed in 1814. Thereafter, until 1855,
the movement of freight to and from Lake Superior was by boat to
Sault Ste. Marie, thence a one-mile portage to lake water again. In
1855 the state of Michigan completed a canal with a double lift lock,
providing a channel for vessels having a draft of ll, 5 feet at mean
stage of water, thus establishing the first through navigation route
to Lake Superior. This canal was taken over by the United States in
1881, and in 1883 the original locks were destroyed in making the
excavation for the present Poe lock.
In addition to the improvements made by the United States at
St. Marys Falls, the Dominion of Canada between, the years 1888 and
1895 constructed a canal 1. H. miles long and 150 feet wide. Because
of the importance of this waterway to national defense during the War
period additional lock facilities were provided by the United States
Government. The existing project calls for channels suitable for
vessels drawing 20 feet up-bound and 24 feet down-bound with a least
width of 500 feet in the up-bound and 300 feet in the dowm-bound routes;
Construction and operation of four locks, two canals, and an emergency
dam for each of the canals at the Falls. The total amouſlt expended
for permanent work to the middle of 1944 was $63 million.
The St. Clair River, between Lake Huron and Lake St. Clair, is
40 miles in length and has a total fall of about 5; feet. It dis-
charges into Lake St. Clair through numerous distributaries, the tone
known as the South Channel being used for deep-draft vessels, with
several other channels available for small craft. The existing pro-
ject provides for improved channels at various localities With depths
at low-water datum of 20 to 26 feet for traffic. The total amount
expended for permanent work to June 30, 1944, was $4 million.
63||||7-33
Lake St. Clair is an expansive shallow basin lying between the
St. Clair and Detroit rivers in the chain of connections from Lake
Huron to Lake Erie. Originally the channels through the Lake were
obstructed by a shoal at the entrance to the Detroit River and by
bars. The existing improvement consists of the St. Clair Flats Canal,
7, 200 feet long, 700 feet wide and 25 feet deep, with a rubble-mound
dike along its easterly side, extending from the mouth of the South
Channel of St. Clair River into Lake St. Clair, and thence a dredged
channel 25 feet deep with width increasing to 300 feet across the lake
to the head of Detroit River. Total amount expended for permanent
work to June 30, 1944 was $5,400,000,
The Detroit River, which completes the connection into Lake
Erie from Lake Michigan, is about 31 miles ions. Its total fall is
about three feet. The Width of the river varies from one-half mile
to about three miless In its original condition the river was navi-
gable throughout its entire length but shottls limited the usable
depth to 12# to 15 feet, The existing improvement provides a depth
of 25 feet for a least width of 800 feet through shoals in the head
of the river; a channel 26 feet deep and 800 feet wide in the lower
river and two channels between Ballards Reef and Lake Erie, consist—
ing of the Livingstone Channel for down-ºwa traffic, With least
width of 450 feet and depth of 26 feet, and the Amherstburg Channel
for up-bound traffic, with inst width of 600 feet and depth of 21
feet. Total amount expended for permanent work to middle of 1944
was $24 million.
To overcome the barrier go traffic formed by the Falls of
Niagara, the Dominion of Canada constructed the Welland Ship Canal,
extending from Port Colborne on Lake Erie to Port Weller on -Lake
Ontario. The canal is 27.6 miles long, with prism having width of
63||17–3),
200 feet at the bottom and 310 feet at the water surface; the depth
for the present to be 25 feet. The depth on lock sills is 30 feet.
There are eight locks, comprising one guard lock about 13 miles north
of the Port Colborne entrance and seven lift locks located in the
northerly one-third of the total length at and below Thorold,
The Illinois Waterway connects Lake Michigan at Chicago with
the Mississippi River at Grafton, Illinois. It has a channel of
nine feet deep and 300 feet wide from the mouth of the Illinois River
at Grafton, Illinois, to Lockport, Illinois, a distance of 291 el
miles. From Lockport to Lake Street, Chicago, a distance of 34.5 miles,
the Waterway uses the Chicago Sanitary canal and the south branch of |
the Chicago River, and from a point on the main channel 12.4 miles above
Lockport to Turning Basin No. 5, near the entrance to Lake Calumet,
the Waterway, uses the Calumet—Sag Channel, the Little Calumet and
Calumet Rivers for a distance of 23, 3 miles. This Waterway provides
a link connecting Take Michigan with the Gulf of Mexico.
The New York State Barge Canal extending from Tonawanda, New
York, 13 miles below Buffalo on the Niagara River to Waterford 11 miles
north of Albany, New York, on the Hudson River, and from Oswego, New
York to Three Rivers, New York junction to the above, form a link be—
tween the Great Lakes and the Atlantic Coast points.
The St. Lawrence River flows from Lake Ontario northeasterly
1, 186 miles, to empty into the Atlantic in the far northern latitude
of Labrador and Newfoundland. The first ll0 miles of the river, just
pelow Lake Ontario, are the boundary between the State of New York
and Canada. The remaining 1,076 miles, or 90 per cent of the length of
the river, lies wholly within the Dominion of Canada.
63ill"—35
There is now, and has been for forty years, a channel and sys-
tem of canals with a minimum depth of lll feet in the St. Lawrence
between the Lakes and Montreals
For more than half a century, efforts have been made to have
constructed a "seaway" through the St. Lawrence River. It is now pro-
posed to provide a channel and canals of a depth of 27 feet, with
numerous locks and passages of restricted width. There has been, and
is, much opposition to this project.
Principal Harbors
An obvious prerequisite for the commercial use of the Great Lakes
Waterway System is commensurate harbor development, so that vessels
may have safe access and receive and discharge cargoes. In general,
the harbors are in or include the mouths of the rivers where the
Federal government has created oute: harbors in the lakes, and has
deepened the mouths, protecting them with piers or jëtties. The
harbors, while primarily for commercial use with terminal facilities
for transfer of cargoes, are incidentally harbors of refuge, afford-
ing shelter to vessels. The most important ports on the Great Lakes
have facilities and railroad connections for handling through and
local commerce.
The principal United States harbors on the Great Lakes are shown
in Table I,
Lake Superior
Grand Marais, Minn.
Two Harbors, Minn.
Duluth, Minn.
Superior, Wis.
Port Wing, Wis.
Ashland, Wis.
Ontonagon, Mich.
Ports on Keweenaw Waterway, Mich.
Marquette, Mich.
Grand Marais, Mich.
Lake Michigan
Munistique, Mich.
Escariaba, Mich.
Monominee, Mich. and Wis.
Oconto, Wis.,
Green Bay, Wis.
Sturgeon Bay, Wis.
Algoma, Wis.
Kewaunee, Wis.
Two Rivers, Wis.
Manitowoc, Wis.
Sheboygan, Wis.
Port Washington, Wi
Milwaukee, Wis.
Racine, Wis.
Kenosha, Wis.
Waukegan, Ill.
Chicago, Ill.
Calumet (South Chicago) Ill.
Indiana Harbor, Ind.
Michigan City, Ind.
St. Joseph, Mich.
South Haven, Mich.
Saugatuck, Mich.
Holland, Mich.
Grand Haven, Mich.
Muskegon, Mich.
White Lake, Mich.
S •
Lake Michigan, cont'd
Pentwater, Mich.
Ludington, Mich.
Manistee, Mich.
Portage Lake, Miich,
Frankfort, Mich.
Loland, Michs
Charlevoix, Mich.
Petoskey, Mich.
Lake Huron
Mackinac, Mich.
Cheboygan, Mich.
Alpena, Mich.
Harbor Beach, Mich.
Lake Erie
Monroe, Mich.
Toledo, Chio.
Sandusky, Ohio
Huron, Ohio
Vermillion, Ohio
Lorain, Ohio
Cleveland, Ohio
Fairport, Ohio
Ashtabula, Ohio
Conneaut, Ohio
Erie, Pa.
Dunkirk, N.Y.
Buffalo, N.Y.
Jake Ontario
r—
Olcott, N.Y.
Charlotte (Rochester) Y.Y.
Great Sodus Bay, i.Y.
Little Sodus Bay, N.Y
Oswego, N.Y.
St. Lawrence River
Ogdensburg, N.Y.
Detroit, River
Detroit Mich.
6347–37
with OrlG exception, which was six feet, the depth maintained at:
the channel entrance to those harbors ranged from a minimum of 1);
to a maximum of 26 feet, and the inner harbors with several lesser
exceptions varied from 13 to 26 feet at low-water datums
Port Distances
\
Distances in statute miles between representative ports on the
4.
Great Lakes are shown in Table II.
TABLE II
DISTANCES VIA WATER AND WIA RAIL
BETWEN PORTS ON GREAT LAKES
(Statute Miles)
Between And
Oswego Buffalo Cleveland. Detroit Chicago Milwaukee
Duluth
All Water 1,110 936 333 726 303 7.43
All Rail 1,130 990 3O3 T32 l:63 373
Milwaukee
All Water 932 323 675 B63 3P) --
All Rail 7.7 607 l;25 369 35 **
Chicagó §
All Water 1,047 893 7|| 633 * 35
All Rail 662 522 34 23.4 tºº 35
Detroit,
All Water l;15 261 lO3 *g 633 563
All Rail 373 233 16); wº 2314 369
Cleveland. *
All Water 33L 176 * LO3 740 675
All Rail 362 184 4 º' L61. 340 l;25
Buffalo
All Water 193 - 176 261 393 323
All Rail 173 - - 134 233 322 607
Oswego
All Water — 193 33l H15 1,047 932
All Rail " ** 173 362 373 662 77
SOURCES: Corps of Engineers, U. S. Army,
Transportation on the Great Lakes,
Transportation Series No. 1 (Revised 1937).
Letter New York Central System - B. S. W. July 24, 1946
6317–38
Wessels
While there was floating equipment of various types on the
Great Lakes in the véry early period, it is not considered as being
employed in commercial activities so far as this report is con-
cerned,
The first American ship on the Lakes was built at Erie, Pa.,
in l797. Shipbuilding progressed on Lakes Erie and Ontario during
\
the following years and for some time shipping activities on these
lakes exceeded that of the other lakes combined. The first steam—
powered vessel was built on Lake Ontario, at Oswego, N.Y., in 1816,
and in 1832 the first trip was made loy steamer from Lake Erie to
Chicago. Previous to 1841, when the Vandalia was launched, all of
he lake steamers were of the side-wheel type. In 1843 seven more
propellers were constructed, and by 1850 there were 50 propellers,
aggregating 15,247 gross tons. Motor vessels appeared in 1897, but
no spearate record was kept of their number and tonnage until 1915.
In that year they numbered 773, with a gross tonnage of 9,902, and
in 1935 the number of documented motor vessels had increased to 958
and the tonnage to 58,1437.3/
When the state of Michigan completed a canal around ins rapids
at Sault Ste. Marie in 1355, capable of passing vessels drawing
up to llº feet, Lake Superior was open to the small vessels then in
use. Up to this time Lake Superior had not been included in the
main traffic lines established,
During the 10-year period, 1881 to 1390, when the navigation
improvements undertaken by the National government were becoming
available, the lake commerce began to progress. The most important
project brought to completion during this period was the ship canal
37 Corps of Engineers, U.S. Army, Transportation on the
Great Lakes, Transportation Series No. 1 (Revised 1937)
page 25.
63||17–39
at Sault ste. Marie, which provided a draft of 18 feet and sup-
planted the Ilā-foot canal built and maintained by the State Of
Michigan.
Developments in shipbuilding during and following this period
reflected the increased navigable capacity of the channels and lake
harbors. In 1831 there were constructed 65,000 tons of vessels,
about 75 per cent of which were in steam vessels averaging about l:BO
tons. Previous to this time the average steamer was but little over
200 gross tons. In 1884, steam vessels, while yet outnumbered, ex-
ceeded the tonnage in sailing vessels. From 1886 on, the fleet in-
creased in keeping with better navigation conditions, and steam-
ships of 2,000 tons were common when a few years before steamers of
l,000 tons were rare. H/
Since 1900 radical changes in the general characteristics of
d
the bulk cargo vessel have been unnecessary, as the original design
\
was developed by ingenious marine architects in collaboration with
doe: engineers, with the result that vessels and docks have been
constructed in direct relation to each other. This coordination of
design has facilitated the rapid and inexpensive transfer of cargo
from one carrier to the other.
There was a period of active construction of bulk cargo vessels
from 1900 to 1910. A number of vege ships was constructed between
1914 and 1920, but few were built between 1920 and 1941. The trend
has been for larger vessels with greater power, and one company had
f
five of the larger vessels constructed in the latter year. The A
A
H/ Corps of Engineers, U.S. Army.
Transportation on the Great Lakes, Transportation
Series No. 1 (Revised 1937),
63 lºſ-lo
major changes were an increased capacity and the inclusion Of
powerful turbine–drive engines, which enabled these vessels to
maintain a speed of approximately 17 miles per hour while carry-
ing a cargo of 17,000 tons. Although operating costs per ton-mile
are not available, they are undoubtedly less than those of older
Vessels e
The United States Maritime Commission in 1942 had 16 bulk car
Great Lakes. These were the first vessels of this type to have
welded, instead of riveted, hull plates. Since turbine propulsion
was not available because of Navy priorities, recipro cating engines
WGI’C used.5/
The first oil tanker appeared on the Lakes in 1910. This was
a Canadian owned and it was followed by a United States vessel in
1912, when Standard Oil Company of Indiana entered the lake tanker
field. At the beginning of 1920 the fleet consisted of eight
Canadian and two United States vessels. The oil tanker trade lagged
through the decade 1920-1929 when only onc United States and one
Canadian vessel were added. Beginning in 1930 sharp activity mani-
fested itself so that at the end of 1931 the fleet had increased to
15 Canadian and 11 United States vessels. At the opening of navi-
gation in 1945 there were 36 United States and 34 Canadian vessels
in the trade.6/
5/ Board of Investigation and Research, Comparison of Rail, r
and Water Carrier Costs, p. 237. Senate Document No. 34, 79th
Congress, 1st Session. *
6/ Lake Carriers' Association Annual Reports.
Y.
63.07-41
Table III shows the documentation of registration of vessels
at United States Great Lakes custom districts ports for 1863, 1890,
1900, 1920, and 1935.
TABLE III
NUMBER AND GROSS TONNAGE OF STEAM, GAS, AND SAILING
WESSELS AND BARGES REGISTERED AT PORTS ON THE GREAT
LAKES, 1868–1935l/
Steam Gas Sailing
Year Total Wessels Wessels Vessels Barges
ge • Number Tons fumber Tons. Number Tons Number Tons iWumber Tons
*~~~ (OCO) (009) (OOO) (000) (OOO)
1868 2,543 HE), 624 1442/ -- —— 1,855 29.4 64 16
1890 2,853 995 1,527 6532/ -- -- 1,272 329 54 - 1);

*$
1900 2,775 l,524 1,739 1, 1112/ -- ems º 832 335 2OH \ 73
1920 3,010 3,130 1,586 2,846 370 ll. 108 l;2 lil;6 lºl
1935 2, 160 1, 773 790 1,479 958 33 29 75 333 160
l/ Exclusive of canal boats. |
2/ Includes gas vessels. -- -º-º:
SOURCE: Corps of Engineers, U. S. Army, Transportation, on *
Great Lakes, Transportation Series No. 1 (Revised 1937).
The actual number and tonnage of United States registry vessels
Operating or available for operation on the Great Lakes is not in-
dicated in this table, since some vessels are documented in other
customs district s, particularly in the Wilmington, Delaware district •
United States shipping on the Great Lakes, like that of inter-
Coastal and coast wise shipping, is restrict ed to vessels of American
seasº. However, under legislation enacted in the World War II
emergency, Canadian ships were used in the trade. These ships were
restricted generally to the iron ore movement.
During 1942 the War Shipping Administration took over for opera-
tion in the coastwiše service a total of 47 lake cargo carriers of
128, 218 gross registered tons and l;2,050 gross tons' carrying capa-
63||||7-l;2
city. The Administration acquired an entire fleet of 14 package
freighters leaving only one vessel of this particular type remain-
ing on the great Lakes of American registry and with the exception
of one, took over the Ford Motor Company's fleet of steel barges.
(Annual Report Lake Carriers' Association, 1942, p. 37.) Various
restorations of vessels were made during the war years and 16 new
iro... ºre carriers were built and placed in the service.
A review of United States vessels in the lake fleet before
and through the war years to 1944, inclusive, is afforded in
Table IV.
TART.E IV
SELS OF UNITED
NUMBER AND CARPYING CAPACITY OF WES *** *
IEET ON LOADING
STATES REGISTRY INT GREAT LAKES F
DRAFT OF 20 FEET.
(Thousands Gross Tons) -
Total Bulk Freight Package Freight Oil Tankers
No. No. No. T- No.
Wes- Carrying Wes— Carrying Wes— Carrying Wes— Carrying
Year sels Capacity sels Capacity sels Capacity sels Capacity
1937 513 3, 170 l;60 3, 253 26 . Illy 32 103
1940 H79 3,522 127 3,318 . 20 92 32 112
1941 HTO 3, 497 l.22 3,309 16 77 32 111
1942 l!24 3,105 336 3, 27; 1 5 37 126
1943 l:63 3,649 lil; 3, 174 7 33 113 142
19|| lºlº 3, 577 l;03 5, lili 5 l 13 36 116
SOURCE: Lake Carriers' Association, Annual Reports.
Lake Fleet lgº
The lake fleet available for the carriage of iron ore, coal,
grain, limestone, petroleum products and other bull: freight commo-
dities of lesser importance and volume consisted of 659 freight
vessels of various carrying capacities as of the beginning of navi-
gation in 1945. (See Table V) There were 25 passenger carrying
vessels available, 13 of American registry and 12 of Canadian registry.
*
63*T-3
TABLE W
LAKE FLEET BY TYPES AND TRADES AND ITS CARRYING
CAPACITY IN GROSS TONS AS AT OPENING OF NAVIGATION
IN 1945
Carrying Capacity. In
Tons of 2,240 Pounds
Bulk Freighters in Iron Ore Trade Total Average
50l steamers, U. S. Registry in ore,
Coal and grain trades . . . . . . . . . . . . . . . 2, 350,690 9,1470
2 motorships, U. S. Registry in
ore and coal trades . . . . . . . . . . . . . . . . 23,750 11,870
H steamers, U.S. Registry in ore,
Coal and Sulphur trades . . . . . . . . . . . . 23,300 5,820
2 barges, U. S. Registry exclusively
- in ore trades . . . . . . ... • * * * * * * * * * * * * * * * 15, 700 7,850
B barges, U. S. Registry in ore,
Coal and grain trades . . . . . . . . . . . . . . 35,600 7, 120
36 steamers, Canadian registry in
ore, coal and grain trades . . . . . . . . . 301,400 3,370
A barges, Canadian registry in
ore, coal and grain trades . . . . . . . . . 24, 100 6,020
Bulk Freight, Self. Unloading Wessels
34 steamers, U.S. Registry, in self-
unloading conveyors in stone
and coal trades . . . . . . . . . . . . . . . . . . . . . 277,316 3, 160
3 steamers, U. S. Registry, self- º
unloading conveyors in cement
and coal trades . . . . . . . . . . . . . . . . . . . . º 15, 290 5, 100
9 steamers, Canadian registry, self- -
unloading conveyors in coal trade 314, 150 3,800
2 vessels (1 steamer, l motorship)
Canadian regist cy, self-unloading
conveyors in cement, and coal
trades . . . . . . . . . . . . . . . . . . . . . . . . * * * * * * li,600 2,300
Bulk Freight Wessels in Mixed Trades
| te
7 steamers, U. S. Registry in steel
scrap and coal trades . . . . . . . . . . . . . . . . 30,000 1,300
13 steamers, U. S. Registry in grain . +
and coal trades . . . . . . . . . . . . . * * * * * * * * * 77,200 5,160
9 motorships, U. S. Registry, lake-
barge canalers in special trades . . . . . 21,500 2,400
l2 steamers, U. S. Registry self-unload-
ing and loading Sand carriers . . . . . . . . . 21,450 l, 300
634.7-lily
TABLE W (Cont'd)
LAKE FLEET BY TYPES AND TRADES AND ITS CARRYING
CAPACITY IN GROSS TONS AS AT OPENING OF NAWIGATION
IN 1945
*— * Carrying Capacity In
Tons of 2,240 Founds
Bulk Freight Barges, in Mixed Trades Total Average
ll barges, U. S. Registry in coal, .
grain and pulpwood trades • . . . . . . . . . 50,350 l!,620
ll barges, Canadian registry in coal,
grain and pulpwood trades • . . . . . . . . . 52,300 l,754
Package Freighters
4 steamers, U. S. Registry in grain -
trade • * * * - - - - - - - - - - - - - - - - - - - - - - - - - - 18,000 lſ, 500
* steamers, Canadian registry, upper
lake fleet in package freight and V
grain trades 6 º' e e s e e º e s p → • e s e º e o e v tº e \ 12,900 3,225
18 steamers, Canadian registry, lower
lakes fleet in package freight and
grain tradies © c e o 'º e º e s tº e s & e s e a se e c tº $ tº 113,500 2,700
Oil Tankers
191 oil tankers, U. S. Registry (15 .
steamers, 4 motorships) in petro- .*
leum products trade . . . . . . . . . . . . . . tº tº 31,950 H, 310
7 oil tankers, U. S. Registry, motor- !
ships in lake-N.Y.Barge Canal trade \ 17,100 2,450
10 barges, U. S. Registry, oil tankers . . 17,000 l, 700
30 oil tankers, Canadian registr; (26
steamers, 4 motorships) Q @ 40 e º s e e s s w {} 71,500 2,330
4 barges, Canadian registry, oil
tankers Q & C S e º e º 'º e º sº e e o e tº º O & © e º sº & © © Cºp 6,600 1,650
659 — Grand Total — !,1118,646 6,700
Nationality
43 of these vessels were American registry with combined
capacity of 3,576,696 gross tons, average por vessel 8,000 tons.
216 remaining vessels of Canadian registry, with combined
capacity of 841,950 gross tons, average per vessel H,000 tons.
Capacities based on loading draft of 20 feet.
SOURCE: Lake Carriers' Association, Annual Report, 1914.
63), ly"—lºp
Terminals
A large part of the Great Lakes terminals are specially de-
signed and equipped to handle bulk cargoese
f
The ore loading facilities at 'the upper Lake ports consist Of
docks that range from 920 to 2,304 feet in length and from 66 feet
6 inches to 84 feet in height, (from water to the decl: above the
bins) and are equipped with bins and pockets into which ore is
dumped from specially designed cars brought direct from the mine.
The number of pockets vary from 148 to 384, depending upon the length
of the dock. All discharge ore into vessels by means of gravity by
opening a trap at the bottom of the pockets and allowing the ore to
pour out through spouts into vessels' holds. A good example of the
modern ore dock is No. 6, owned by the Duluth, Missabe & Northern
Railway, at Duluth. It is 2,504 feet long, and contains four tracks
with the necessary trestle approach, upon which are two tracks.
t is 84 feet high and the width between the outside faces of the
pockets is 70 feet. The extreme width of the operating platform is
75 feet 5 inches. It has 384 pockets arranged in pairs, one on either
side of the longitudinal ridge running along the center. The floors
of the pockets have a slope of 1749 from the horizontal, the depth
being 5 feet 11 inches on the inside and about 59 feet on the outside,
or front of the pockots. The pockets are 12 feet wide, center to
center, and ench has a capacity of 6,550 cubic feet,
The terminals are owned by the railroads. A charge is made for
the handling of the traffic,
6347–16.
At the lower lake ports unloading gear consists of electri- º
cally operated ore unloaders equipped with buckets ranging in capa-
city from five to 17 tons, those of the larger type being capable
Of discharging a. LO thousand deadweight-ton vessel in from three to
four hours. These unloaders are usually operated in batteries of
from four to six, located on tracks at ship side, permitting an en-
tire battery to be used simultaneously on one ship.
While the operation of unloading is in process the ore is
ampled in the holds of the vessel in order to determine its F test . "
*
*
As the ore is removed from the ship it is weighed and carried to
ment to interior points, or to stock piles in the rear of the dock
for future consumption. Some of the machines are designed to act
as unloaders, distributors, and loaders, while others are used for
unloading to railroad cars or stock pile only. The latter type re-
quire bridge cranes in conjunction with them to distribute the ore
uniformly over the stock piles and to load cars from them. \
These unloading docks are ownied by railroad. dock companies and
industries. Charges are collected by railroads and dock companies
for the handling from vessels.
Loading equipment for vessel loading of coal at Lake ports is
usually of the car-dumper type. Loaded cars are rolled down to a
pit by gravity, whence they are drawn by cable up to a loading plat-
form and clamped to a cradle. They are then raised end inverted,
dumping the contents into a pan, whence the coal travels by teles-
copic chute into the vesselt s hold, There is now under construction
by the Lakefront Dock and Railroad Terminal Co. (subsidiary of the
New York Central and Baltimore & Ohio Railroads) a large coal and
ore dock with three coal dumpers and two ore unloaders, at Toledo,
63.47–117
to take the place of separate docks now operated by the two rail-
roads located on the Maumee River.
The unloading facilities at the lower Lake ports consist of
electrically operated traveling bridge cranes equipped with Clam
shell buckets of from five to 12 tons capacity which can discharge
a vessel at the rate of 250 to 600 tons per hour.
The coal handling docks are owned by coal and steel companies
and the railroads, \
At the larger ports the method of handling stone is similar to
that used in handling coal and ore. The stone is carried along
conveyors to the stock pile, then through hoppers to movable convey-
ors which deposit it in the ships. The important ports also use un-
loading machines. The modern type machines are equipped with clam-
shell buckets which are attached to movable bridges and can be
manipulated at any point at the dock.
Self-unloading facilities aro also used to augment the unload-
ing facilities of the ports, These ships are equipped with eleva-
tors to bring the stone up out of the holds and load. it onto the belt
conveyors which carry the material to the storage yard.I./
Due to the decline azid practical discontinuance of package
freight traffic, data on these terminals as of a recent date are not
available. In 1935 there were 92 package–freight terminals worthy of
mention at the United States ports on the Great Lakes which have a
7ſ Corps of Engineers, U.S. Army, Transportation on, the Great
Lakes, Transportation Series No. 1 (Revised 1937.)
634.7-lis
combined berthing space of 83,079 lineal feet and serve H, 277, 539 square
feet of transit shed area.
The ownership of these terminals, together with their berthing
.*
spact; and transit shed areas, is as follows:
e Berthing Transit
Ownership Number Space Shed area.
Lin. ft. Sq. ft. —-rr
Railroads . . . . . . . . . . . . . . . . 41 34, HOl 2,371,605
Steamship lines . . . . . . . . . . 12 10,784 670, 635
City tº Q @ Q & © tº e º C C & © tº Q tº e º O & O 3 10,316 577,720
State . . . . . . . . . . . . . . . . . . . . 5 5,410 59,120
Private . . . . . . . . . . . . . . . . . . . 26. BL 168 693, lººp
Total . . . . . . . . . . . . . . . . . 92 38,079 H, 277, 539
SOURCE: Corps of Engineers, U.S. Army, Transportation on the
Great Lakes, Transportation Series No. 1 (Revised
1937)
The terminals of the water lines , whether owned or leased, & ré
generally operated for the exclusive use of the owning or leasing
line. In some instances other lines are permitted to dock at the
property when in noncompetitive business.
The municipally owned terminals are usually open to all carriers
on equal terms. These are found at Milwaukee, Chicago, South Haven,
Toledo, Cleveland, and Erie. The State owned terminals at Buffalo,
Tonawanda, and Oswego are also open to all carriers.
63,17-19
Great Lakes Tonnage
As used in this report , except where otherwise noted, the term
"Great Lakes Tonnage" includes not only traffic which moves strict-
ly lakewise, but that which moves into and out of the lakes via the
New York State Barge Canal, via the Illinois Waterway, via the St.
Lawrence River, the local traffic, that is, traffic in and out of
other tributary waters, the intraport traffic, which is the traffic
moving between several areas within a harbor district such as
Dotroit , and the import and export traffic.
To the extent usable, tonnage figures have been taken from the
reports of the Chief of Engineers, U.S. Army, Part 2. Because of
the limitations of these figures &ue principally to duplications,
tut, also to other factors, reports of the Lake Carriers' Association
have been used preferably wherever-possible.
The tonnage handled at the Unit od. States ports on the Great Lakes
for the years 1920 to 1911!!, separated as to domestic and foreign, is
shown in Table WI,
631ſly?–50
COMMERCE OF THE UNITED STATES FORTS ON
TABLE WI
THE GREAT LAKES, 1920 TO 1914
(Thousands Tons 2,000 Pounds)
Year
1920
1921
1922
1923
1924
1925
1926
1927
1923
1929
1930
1931
1932
1933
1934
1935
1936
1937
1933
1939
1940
1941
1942
1943
1914);
Domestic
93,751
58,947
31,033
110,858
93,703
113,644
120,791;
119,776
125,730
141,136
llº, 727
77,509
lily,366
73,723
77,307
89,356
122,738
lº,355
32,430
1211,1475
153,601
176,933
136,013
172,939
179,639
Canadian
13,272
10,239
10,235
13, H33
13,1431
15,155
17,352
15,567
16,735
20,924
25, 107
27, 129
31,043
31,632
12,389
12,513
13,005
14,660
16,129
16,501
16,600
20,585
23,927
20, 159
19,514
SOURCE: Annual Report of Chief of Engineers,
U. S. Army, Part 2.
l/ Separation not available prior to 1931.
1920-1925 as 100, was as follows: .
1920–1925
1926–1930
1931–1935
1936-1940
1941—1944.
• e o e e o e e
• e. e. e. e º a dº
tº ſº º ſº tº Q. C. ×
• 2 e e. e. e. tº e
• * * * * * * *
Index
sºmesº-sº-sº
100
135
79
133
1914
Foreignl/
Overseas
33
253
364
31;
3||||
H31
337
254
3].7
22
2}}
95
71.
Total
111,140
71,460
94,033
125,518
193,332
130,143
137,394
140,361
1149,707
161,345
135,241
90,819
54,913
34,327
91,033
103,131.
133,374
161,094
93,301
1141,577
174,547
2O2, H19
213,237
2014, 112
211,371.
|
2-
For quick appraisal the trend of this traffic over the groups of years, using
l
63||1-51
Since traffic moves into and out of the Great Lakes via other
tributaries, a breakdown of the 1943
tonnage , to show the sources
and outlet for tonnage other than strictly lakewise, is offered in
Table VII,
TABLE WII
DISTRIBUTION OF TONIAGE, 1943
Thousands Fercentage
Domestic Net, Tons
Lakewise . . . . . . . . . . . . . . . 159,453 73, 1
Via New York State Barge Canal:
Coast wise receipts. . . . . . . 13 l/ •l
!! shipments......H25 219:
Internal traffic receipts. ... 276.
!! shipments 1,671 1,947 l.0
Via Illinois Waterway
Miss. River to G. Lakes... H.,690
G.Lakes to Miss. River . . . ].25 11,815 2.3
Via other tributaries . . . . . . . . . . . . 294 •l
Local traffic and movement of sand,
gravel and marine products from
the lakes . . . . . . . . . . . . . . . . . . . . . . li,940 2.l.
Intraport traffic, i.e., between
Several localitics comprising a
- port • * * * * * * * c e s • * * * * * * * * * * * * * * * { 1,317 .7
l'ſ 2,990 84.7
Foreign
Imports from Canada & s tº 6 tº e º 'º e a e º t 7,049 * 3.5
Imports from overseas via
St. . IſāWrence River . . . . . . . . . . . . . 71. #
Exports to Canada . . . . . . . . . . . . . . . 23,999 ll.8
Exports to overseas via
St. Lawrence River . . . . . . . . . . Sk
31,122 15.3
2OI, II: 100.0
SOURCE: Annual Roport of the
U.S. Army, Part 2.
Chief of Engineers,
l/ This is the result of source data
dividing receipts and shipments
by two, presumably because they are also reported in coastwise
movement. The practice obviously
* Less than one-tenth of one per cent.
distorts the reported total.
634.7-52
Lakes-New York State Barge Canal Tonnage
The movement via the New York State Barge Canal for a period
of available years is shown in Table VIII.
TABLE WIII
GREAT LAKES TRAFFIC MOWING WIA NEW YORK STATE
BARGE CANAL, 1939 TO 1943
Year Thousands net tons
Coastwise” Internal Total
1939 . . . . . . . . . . . . . . . . . . . 135 2,213 2, 398
1940 . . . . . . . . . . . . . . . . . . . 196 2,550 2, 71.6
1941 . . . . . . . . . . . . . * e º sº º 0. 70 2, 179 2, 249
1942 . . . . . . . . . . . . . . . . . . (2. 73 2,116 2, 194
1943 . . . . . . . . . . . . . . . . . . . 219 1,947 2,166
* Apparently one-half of receipts and shipments.
It is interesting to note that the total canal traffic was
2,824, 160 tons in 1913/. and of this total 2,166,000 tons originated
and terminated at Great Lakes ports.
Takes-Illinois water, Tonnage
The movement via the Illinois Waterway if offered, to the
extent available, in Table IX.
TABLE IX
GREAT LAKES TRAFFIC MOVING WIA IILINOIS WATERWAY,
1939 TO 1943 º
Year ~r- Thousands net tons t Year. Thousands met tons
1939 . . . . . . . . . . . . . . . . .3,856 1942. . & & ſº g tº . . . . . .4, 311
1940 tº º º O & & Q @ e º e tº a e º O .l., 1176 1943. . Ç • . . tº º • * * * .*, 315
1941 . . . . . . . . . . . . . . . . .4, 355
8/ Railroad Committee for the Study of Transportation,
Transportation on the New York State Barge Canal,
1945 (Appendix A).
65uliſ–53
While in the case of traffic moving via the New York State
Barge Canal the shipments from the Great Lakes ports were greater
than the receipts, the reverse is true as to traffic moving via
this waterway. In 1913 there were H, 690,000 tons moved into the
Great Lakes and 125,000 tons were shipped out .
Lakes-St. Lawrence River Tonnage.
The use of the St. Lawrence waterway for United States overs eas
traffic being of present public discussion, a statement of this
movement back to 1931 is offered in Table X.
* TABLE X'
GREAT LAKES TRAFFIC TO AND FROM OVERSEAS WIA
ST. LAWRENCE RIVER, 1931 TO 1943
r—r
Year Thousands net tons
Imports Exports
1931 33 5
l932 213 lſº
1933 285 79
1931 271 72
1935 323 2l
1936 333 98
1957 330 B7
1938 * 185 69
1939 205 ll 2
1910 l; 7
1941 5 19.
l912 7|| 2l
1943 & 71 3
The peak year for the period was 1936, the tonnage amounting
to H31,000 tons, The total Canadian and overseas commerce that year
amounted to 15,586,000 tons. Since 1936 the overseas traffic has
declined.
63H7-54
Principal Commodities
Iron ore, coal, stone, petroleum and products, grain, sand and
gravel, and iron and steel, the last named principally in unmanu-
}
Y
factured but also in rolled form, easily dominate the trade.
XI shows these movements for selected years over a span of 21
years.
TABLE XI
PRINCIPAL COMMODITIES IN DONESTIC TRADE FOR
SELECTED YEARS
Table
-Thousands tons of 2,000 poundis-
1923 1929
Iron ore . . . . . . . 64,516 69,337
Coal and coke . . 28,363 35, 167
Stone . . . . . . . . . & 3,56]+ 15,921
Petroleum and
product š . . . . . &Ol; 1,114
Grain . . . . . . . * e e 2,985 3,379
Sand and gravel. 2, 133 3, 637
Iron and steel . . 97 835
All other . . . . . . –3, 31 il,596
Total . . . . . . . 110,853 14-, 186
1933 1957 1990 1943
23,869 63,267 63,702 90,455
27, 185 36,812 ºl,050 33,779
6, 50l., 11,785 lº, 169 16,650
3,119 l, 717 5, 476 6,364
3,672 2, #15 3,391 2,934
950 3,870 l, 676 3,291
l, 105 2, 290 2, 50l l, 547
6,946 15,199 tº,316 - 12,470
73,723 143,355 153,601 172,990
SOURCE: Annual Report of the Chief of Engineers,
U. S. Army, Part 2. One-half of totals shown.
Fluctuation of Tonnage
This tonnage, so largely composed of basic commodities, such as
iron ore, fluxing stone, and coal, was, as might be expected, particularly
*/
.#
Sensitive to the ebb and flow of the economic status of the nation,
measured in terms of national income.
However, both in epo and flow it
usually receded and advanced farther than did the tide of income, except
during the war years, as shown in Table XII.
concentrated nature.
This was oecause of its
63p;7-55
TABLE XII
GREAT LAKES TUNNAGä RELATED TO NATIONAL INCUME,
1929–1943 WITH 1929 EQUALING 100
Great Great
National Lakes National Lake S
Years Income Tonnage Years Income Tonnage
1929 . . . . . . . , 100 lOO 1936 . . . . . . . . . . 78 36
1930 . . . . . . ... 33 &l; 1937 . . . . . . . . . . 36 lOO
1931 . . . . . . . . 65 56 1938 . . . . . . . . . , 77 6l
1932 . . . . . . . . 48 34 1939 . . . . . . . . . . 35 33
1933 . . . . . . . . 51 32 1940 . . . . . . . . . . 9|| 103
1934 . . . . . . . . 60 57 1941 . . . . . . . . . . 115 125
1935 . . . . . . . . 67 64 1942 . . . . . . . . . . 144 l32
1943 . . . . . . . . . . 176 127
Imports
Imports, over the years reviewed, consisted principally of
grain, pulpwood's Wood pulp and paper, and Sand and gravel. The
respective movements in six selected years are shown in Table XIII.
TABLE XIII
PRINCIPAL CONTIODITIES IKIPORTE), 3'OR SELECTED YEARS
(Thousands Not Tons)
1923 – 192 1935 1957 1940 1953
Grain, a . . . . . ... H., 224 2,942 1,372 l, 323 1,579 H., 156
Pulpwoode . . . . . . ) 906 591 l,031 1, 25l. l, 0
Wood pulpo . . . . . l:63) 6l. 340 303 l:0 5||
Papers • . . . . . . © º' -- n o t a v a. i l a, b 1 e -- / 362 343
Sand and gravel 631 1,776 60 1914 229 326
All other. . . . . . . .332 697 6T1 l, 25l. 656 - 896
Total ...... 5,705 6,385 3,034 hio2 117 7,120
F-r-r- r T T I +- r—
63||||7-56
Exports
Exports, over the years reviewed, consisted chiefly of coal and
coke, iron ore, grain, petroleum and products and stone. The respect-
ive movements in six selected years are shown in Table XIV.
* TABLE XIV
PRINCIPAL COMMODITIES EXPORTED, FOR SELECTED YEARS
(Thousands Net Tons)
—r-
1923 1929 1933. 1937 1940 1953
Coal and coke... 5,994 9,610 6,932 10,906 11,974 17,834
Iron ore. . . . . . . i.,138 1,615 Ill; 1,1413 1,555 2,636
Graine. . . . . . . . . 1,163 1,667 346 H69 735 62
Petroleum and
products. . . . . 39 169 320 36!! 1,564 2,161.
Stones . . . . . . . . . 35 77 29 390 266 513
All other. . . . . . 536 636 * — 95. 635 715
Total . . ... • 3,955 lj, 774 7,771.1/ 13, 637 16,329 24,001
1/ The total shown in this tonnage is not sufficient to take care
of the details shown in another table of U. S. Army Engineers
Report, Part 2.
NA-Not available.
63]);7~5?
Ton-Miles and Average Haul
The ton-miles and the average haul computed from application
f
of the ton-miles to the tonnage are shown in Table XV.
TABLE XV
TON-MILES AND AVRAGE HAUL, FOR SELECTED YEARS
Short, Average
Year Ton–Miles Tons Haul
Millions Millions Miles
1923 . . . . . . . . . . Not available * *}
1929 . . . . . . . . . • 97,322 16.1 605
1953 . . . . . . . . . • 19,069 3: 536
1937 . . . . . . . . . . 93,244 161 579
1940 . . . . . . . . . . 95,645 l?}} 550
1943 . . . . . . . . . . 115,346 20|| 565
The overwhelmingly large tonnages of iron ore which vary
little in their origins and destinations prevent any wide varia-
tions in the length of haul averages. Noticeable shorter-haul
trends have occurred in the grain movement, Lake Huron ports having
absorbed tonnages formerly moving nearer seaboard to Buffalo and
Canadian ports. Attention is drawn to this under the grain movement
discussione
63hp?-53
SECTION II
TRAFFIC
As already stated the major portion of the commerce on the
Great Lakes consists of commodities moving in bulks There being
some package freight movements, the two types have been separately
discussed. The separation has been made to give emphasis to the
large volume of bulk-commodity movements and at the same time to
attract attention to the transportation which is not subject to
regulation,
BULK COMMODITIES
f
Before entering upon the presentation of the tonnage statis-
tics of the two movements it was thought that the inclusion of the
definition of bulk commodities, or commodities in bulk, might be
helpful. As the definition is in connection with the exemptions
provision of the Transportation Act of 1940 a section of the law
follows: -
Section 303 (b) - Nothing in this part shall
apply to the transportation by a water carrier of
commodities in bulk when the cargo space of the
vessel in which such commodities are transported
is being used for the carrying of not more than
three such commodities. This subsection shall
apply only in the case of commodities in bulk which
are(in accordance with the existing custom of the
trade in the handling and transportation of such
commodities as of June 1, 1939) loaded and carried
without wrappers or containers and received and de-
livered by the carrier without transportation mark
or count . . . . . . .
}
6347–59
Definition of Bulk Commodities
---
The Interstate Commerce Commission in discussing the exemption
of transportation of bulk commočities stated in Mulqueen Contract
Carrier Application, Docket No. W-763, 250 I. C. C. H.36, 153:
"Section 303 (b) exempts the transportation of
commodities in bulk when not ſhore than three such
commodities are transported in the same vessel or
tow. Not all such commodities are exempt. It is
only those bulk commodities which are transported
without wrapper's or containers and without trans-
portation mark or count which are exempt. It has
been contended that the practice of transporting
commodities without transportation mark or count
and without wrappérs or containers is determinative
of the question of whether or not an article is a
bulk commodity within the meaning of this subsec-
tion. This, in our opinion, is not a correct inter—
pretation of the statute. Only commodities in bulk
are exempt. Nonbulk commodities are not exempt,
even though they be transported without wrappers or
containers and without transportation mark or count.
The determinative factor is whether a given article
is a commodity in bulk.
"The term 'commodities in hulk' is a common one
and is used in describing, fungibles, which can be
poured, scooped or shoveled, and which generally are
of such size that they cannot be handled piece by
piece. Typical of such bulk commodities are coal,
Ore, Sand, gravel and grains. Pig iron is a pro-
cessed or semi-manufactured product and is of such
Size and weight that it cannot be poured, scooped or
shoveled. Pigs are often li to two feet in length
and weign upward of 100 pounds. They can be handled
piece by piece. The foregoing statement s apply with
equal force to steel billets. We therefore conclude
that pig iron and steel billets are not bulk commodi-
ties and their transportation is not exempt under
section 303 (b), even though they be transported with–
Out Wrappers or containers and Without transportation
mark or count. " *
Tonnage and Commodities
Bulk freight on the Great Lakes consitutes over 95 per cent
of the tonnage moved thereon. Figures of the Lake Carriers'
Association, both because of their preciseness and availability of
receipt and shipment sources, as well as the 1944 tonnage details
have been adopted in this treatment. Differences from the U. S.
Army Engineers' figures are not of consequence except as to the
grain where in the Lake Carriers' Association figuras distribute
the entire lake movement, both American and Canadian. This is an
advantage.
The following tonnages of the principal items of lake bulk
commerce are shown for the years 1920 through 1944. The trends
are likewise shown by relating the ensuing years to the 1920–1925
average;
63H]+7-61
TABLE XVI
BULK FREIGHT COMERCE BY YEARS, 1920 THROUGH 1911,
(Thousands Net Tons) (Years 1920–1925=100)
-º-º-º-wa
*Includes Canadian Lake movement.
Soft, {
Year Iron . Index and Index Grains”Index Stone Index Total Index
Ore Hard
Coal
1920 65, 550 26, #10 6, 737 7, 322 106, 519
1921 24, 976 26, 661 12, #70 3,926 63,033
1922 l;7, 726 19, 369 11,267 7, 592 39,154
1923 66,122 100 33,137 100 ll, 350 100 9,920 100 121,029 100
1924 HT, 733 25, 360 15, 223 9, 226 93, Oli'ſ -º-º:
1925 60,571. 28, Olig 13, 320 11, 352 113, 292
|
1926 65, 56); 31, Oll 12,037 12,623 121, 290
1927 57, 240 31, 794 14,693 11,033 120,760
1923 60,158 119 34,823 13, 16,372 102 15,677 171 127,330 125
1929 73,029 39, 25.4 10, O2]. 16, 270 L33, 57.4
1930 52,173 33,072 9, 851 12,133 112,529
1931 26, 28.4 31, 176 9, 1130 7, 209 74, 149
1932 3,996 24, 357 8,890 3,929 11,672
1933 24, 213 H2 31, 777 112 8, 713 63 6,665 33 71,373 70
1934 24, 920 35, #77 7, 951 7, 392 75,740
1935 31,766 35, 239 6, 750 9,032 32,837
1936 BO, 200 lº, 699 7, Mºl; 12,031 11)}, \ll1
1937 70, 111 lſº, 319 3, 329 1H, 129 134,683
1933 21, 575 100 34,625 160 10, 679 73 3, 241 119 75,118 117
1939 50, 481 10,363 ll, lſ2 12, 208 11\},229
1940 71, 359 H9, 320 9,645 14,893 115, 217
1941 39,731 53, 535 ll, 337 17,633 172,236
1942 103,126 52, 533 3, 502 13, 570 132, 731 k
1943 94,531 115 51,969 205 ll,810 97 17,340 169 175,653 11th
1944 90,912 60, 163 16, 229 16, 356 184, 160
SOURCE: Lake Carriers' Association, Annual Report, 1944.
Iron Ore
In Minnesota, Wisconsin, and Michigan is located a preponderance
of the Nation's supply of iron ore, all of the deposit being within a
short distance of the Great Lakes. Iron ore is moved from mine to the
~&s
63||17–62
loading port at the head of the Lakes via railroad over distances
varying from 20 to 95 miles,
Shipments. The shippine season usually extends from varying
dates in April to varying dates in November and December. In 19n,
the season opened with the loading of cargo at Escanaba. on April
Hth and the last shipment moved out of Ashland on November 23. The
ore shipping season that year, therefore, was of 239 days duration.
Superior, Duluth and Two Harbors are the principal shipping
ports having accounted for 30 per cent or better of the shipments
in 1942, 1943 and 1944. A review of the shipping ports and their
tonnages is afforded in Table XVII.
TABLE XVII
IRON ORE SHIPMENTS BY PORTS - 1942, 1943, 1944
(Thousands Net Tons)
1919, 1943 1942
Superior . . . . . . . . . . . . . . . . . . . . . . © e 29,053 31,061 35,312
Duluth . . . . . . . . . . . . . . . . . . . . . . . . . . 22,772 23,939 26,844
Two Harbors . . . . . . . . . . . . . . . . . . . . . 21,653 21,589 21,069
Escanaba. . . . . . . . tº e º & e º 'º e º a tº b v e s e e 6, 472 7,091 7,006
Ashland. . . . . . . . . . . . . . . . . . . . . . . . . º 6, 243 6,103 6,923
Marquette . . . . . . . . . . . . . . . . . . . . p a tº l, 178 H,254 5,4142
Michipicoten . . . . . . . . . . . . . . . . . . . . 536 l;97 E30
Total . . . . . . . © 90,912 94,531, 103,126
Receipts. Seventy per cent of the iron ore shipped in 1943 and
1944 was received at Detroit and Lake Erie ports, with Cleveland,
Conneaut, Ashtabula, Buffalo and Erie absorbing the major portion.
A review of the Detroit and Lake Erie ports and the tonnages re-
ceived thereat is afforded in Table XVIII.
=

63||17–63
TABLE XVIII
OF TRON, ORE AT DETROIT A.D LAKE ERIE PORTS
.*
RECEIPT
S
(Thousands Wet, Tons)
-ms--- w 1941 1943
Cleveland ........... 14,078 l3,913
Conneaut ............ 13,145 13,325
Ashtabula ........... 9,353 10, 1940
Buffalo ............. 6,929 7,804
Brie . . . . . . . . . . . . . . . . 5,788 l,730
Lorain ............. • 5,341 6,430
Toledo . . . . . . . . . . . . . . 5,712 3,030
Detroit ............. 2,880 2,560
Fairport . . . . . . . . . . . . 1,957 2,125
Huron © C tº e º 'º e º O sº tº Q & Q C 970 l,527
Total • * * * * * 9 , 153 65,834
Record of receipts at Lake Michigan ports is shown in Table XIX.
|
TARIE XIX
R3 CEIPTS OF IRON ORE AT TAKE MI CHIGAN PORTS
(Thousands Met Tons)
19|| 1913
Indiana Harbor . . . . . 5,562 †E,776
South Chicago . . . . . . 9,665 10,555
*ary • , . . . . . . . . . . . . . 6,9 7,269
Total . . . . . . 22,163 23,600
Before Canada entered World War II its receipts of Lake Superior
iron ore never reached as much as 1% million tons. Receipts of Over
2 million tons were recorded in the four years ended with 1941.
In addition to the vessel shipments of more than 90 million short
tons of iron ore in 1944 there occurred an all-rail movement of
1,325,000 tons from the mines, making total shipments for the year
of 92,237,000 short tons,
634,7–6,
Coal *
Of the total movement of 60,163,000 tons of coal shown in
Table XVI to have moved by lake in 1941, nearly 98 per cent was
Soft coal and the remainder anthracite. The distribution by lake
port districts is shown in Table XX.
TABLE XX .
SHIPMENTS OF COAL BY PORT DISTRICTS, 1944
(Thousands Net Tons)
-r-
From Soft Coal Anthracite . Total
Lake Erie ports . . . . . . . . . . . . . 53,931 l,066 55,047
Lake Ontario ports . . . . . . . . . . 3, 174 350 3,524
Lake Michigan ports . . . . . . . . . l, 592 sº l, 592
Total . . . . . . . . . 5.77 TTTE COIC,
ſake Erie Ports Shipments
Toledo, Sandusky and Ashtabula accounted for about 80 per cent
of the Lake Erie soft coal shipments in 1944. The soft coal ship-
ments by ports on Lake Erie for 1943 and lºlli are shown in Table XXI.
TABLE XXI
SHIPMENTS OF SOFT COAL FROM LAKE ERIE PORTS,
1941; AND 1943
(Thousands Net Tons)
-vº- 1944 12:3–
Toledo . . . . . . . . . . . . . . . . . . . 23,434 21,915
Sandusky . . . . . . . . . . . . . . . . . 14,247 10,644
Ashtabula . . . . . . . . . . . . . . . . 5, 153 3,992
Lorain . . . . . . . . . . . . . . . . . . . 2,743 2, 323
Conneaut . . . . . . . . . . . . . . . . . 2, 190 1,976
Fairport . . . . . . . . . . . . . . ... 1,794 l, C32
Erie . . . . . . . . . . . . . . . . . . . . . 1,713 l, 236
Cleveland . . . . . . . . . . . . . . . . 1,316 1, 166
Buffalo . . . . . . . . . . . . . . . . . . 369 690
Huron . . . . . . . . . . . . . . . . . . . . Blz l, 0.35
Total . . . . . . . . 53,981 I5,055
63||||7-65
Approximately 77 per cent of these Lake Erie Soft coal
shipments went to United States lake ports and the remaining 23
per cent to Canadian lake ports. The following table shows the
distribution of the tonnage between United States and Canadian
lake ports in 1944.
TABLE XXII
OF SOFT COAL FROM L.AKE FRIE PORTS TO
S AND CANADIAE LAKE PORTS - 1944
(Thousands Net Tons)
To Port S on United States Canadian Total Per
Port S Port S Cent;
Lake Superior . . . . . . . . . . . . . . . 10,927 l,607 12,531, 23.2
Sault Sto. Marie . . . . . . . . . . . de 362 l,973 2,840 3.2
Lake #uron . . . . . . . . . . . . © g º Gº & © l,646 l,579 3,225 6.0
Lake Michigan . . . . . . . . . . . . . . . 15,165 * 15,165 28.1
Lower Rivers . . . . . . . . . . . . . . . . 9,394 1,020 10,41+ 19.3
Lake Eric . . . . . . 9 tº 9 tº e º 'º e º tº e º 'º' 3,718 l,303 5,026 9.3
Well,and Canal—Lake Ontario. . . - 59 l,713 l,777 3.9
Total . . . . . . . . . . . & e º gº IIFT 12,210 53,931 100.0
PerContage . . . . . . . . . . 77.l. 22.6 100.0
+ s
t
This l944 movement was the highest in the history of lake navi-
gation when it reached. and passed the 50 million ton volume for the
first time. This movement is said to have been accomplished through
Suspension of restriction of water shipments into the industrial
districts of Chicago and Buffalo that prevailed in 1942 and 1943 to
more effectively free ships for the iron orc traffic. Other helpful
factors included the flow of coal from the mines uninterrupted by
labor troubles, to unprecondented precision of movement by the rail—
roads from the mines to the loading docks and a fleet of coal car-
riers augmented by the addition of 13 new 15,000-ton carriers.2/
9/ Lake Carriers' Association, Ánnual Report, 1944.
631ſl;7–66
The Lake Erie soft coal movement for the years 1933, 1937
and 1940 through 1944, and the principal port districts of desti-
nation are shown in Table XXIII.
TABLE XXIII
SHIPMENTS OF SOFT COAL FROM LAKE ERIE PORTS To
PRINCIPAL PORT DISTRICTS FOR YEARS 1933, 1937
AND 1940 THROUGH 1911!!
(Thousand Net Tons)
TO To TO To To TO
Lake Lake Lake Lower Lake Welland. All
Year Superior Michigan Huron Rivers . Erie Canal Öther. Total
1933 7,563 10,267 l, 131 5,626 3,714 2,338 662 31, 351
1937 ll, 653 12, 127 2,155 6,964 li, 75l. 3,731 l,659 143,645
1940 3,894 ll, 509 l,691 3,750 5, 716 H, 24.4 2,744 H6, 543
194l 10, 707 l3,055 3, Hlí2 10, liº 5,694 H,504 2, 189 H9,733
1942 ll, 240 'll,840 3,818 lo, 207 3, 72l H., 552 3, 157 HY, 315
1943 lj,015 10, 147 3,270 9,796 2,957 H, 312 2,562 H6,059
1944 12,534 15, 165 5,225 10, 41H 5,026 H, 778 2, 339 53,931
The l,066,000 tons of anthracite that moved from Lake Erie ports
in 1944 moved 417 thousand tons from Buffalo, 65 thousand tons from
Erie and 534 thousand tons from Ashtabula. It was not until 1923 .hat
Ashtabula became a gateway for anthracite shipping, the rail movement
from mines to the lake front dock having been reached by the New York
Central via Clearfield. In 1943, for the first time, Ashtabula move—
ments exceeded Buffalo movements and in 1914 exceeded the combined
Buffalo and Erie movements,
The movement of this anthracite coal from
Lake Erie ports for years 1929, 1933, 1937, 1940 through 1944 is shown
in Table XXIV.
p3||17-67
TABILE XXIV
SHIPMENTS OF ANTHRACITE FROM IAKE ERIE PORTS,
1929, 1933, 1937 AND 1910 THROUGH 1911!!
(Thousands Net Tons)
|From | From From
Year Buffalo. Erie Ashtabula Total
1929. . . . . . . . . . . . . . 81/2 319 16O l, 321
1933. . . . . . . . . . . . . . 209 73 1113 l!?5
1937. . . . . . . . . . . . . . 337 123 2ll 67.1
1940. . . . . . . . . . . . . . 2ll 62 127 l;0
1941. . . . . . . . . . . . . . 242 6l 23); F37
1942. . . . . . . . . . . . . . 260 76 239 575
º tº º ºs º gº tº º tº ſº ºn tº e º q 23|| 10), 32 661
1944. . . . . . . . . . . . . . \ll 7 65 G8 1,066
were than 30 per cent of the l, O66,000 tons of anthracite coal
shipped from Lake Erie ports in 1911 was consigned to the port of
Superior, Wisconsin, and 28 par cent to Milwaukee. The remaining
20-odd per cent went to thirteen ports, principal among which were
Detroit with eight per cent and Lake Michigan ports other than
Milwaukee with 10 per cent.
Lake Ontario Ports Shipments
As shown in Table XXV, Lake Ontario ports shipped 3, 174,000
tons of soft coal and 350 thousand tons of anthracite in 1914],
These shipments were 47 per cent from Sodus Point, 32 per cent from
Rochester (Charlotte) and the remaining 21 per cent from Oswego.
Table XXV shows the movements for the years 1933, 1937, 1910 through
1941.
6347–68
TABLE XXV
SHIPMENTS OF COAL FROM LAKE ONTARIO PORTS,
1933, 1937 AND 1910 THROUGH 1914
(Thousands Net Tons)
From Rochester From Sodus Point From Oswego Total
Year Soft. Anthracite Soft Anthracite Soft Anthracite Soft Anthracite
\
1933 215 cº 269 l 130 34 6.13 35
1957 275 3. liO7 67 273 101 955 171
1940 735 113 34 116 301 143 1,970 372
1941 Till 90 l, H17 12O 703 222 2, 333 1133
1942 395 llyl, 1,900 65 329 125 3,624 335
1943 l,253 ; 1,927 3O 313 126 3,998 133
1944 1,009 1145 1,606 33 553 172 3,174 350
The fluctuation downward in the 1944 soft coal movement is said
to have been incident to the sharply expanded movement of soft coal
from Lake Erie through the Welland Canal to the highly industrialized
centers of Hamilton and Toronto thus curtailing the lake shipments of
Pennsylvania and Ohio soft coal from these Lake Ontario ports.
*
Lake Michigan Ports Shipments
The 1,592,000 tons of soft coal shown in Table XX to have moved
from Lake Michigan ports was Illinois coal from the rail-to-water
transfer terminal at South Chicago to Laize superior and Georgian Bay
for the Canadian Pacific Railways This movement began in 1942 when
185 thousand tons constituted the movement, Shipments in 1943 were
1,062,371 tons and in 1944 ended with 1,592,000 tons only because of
inability of the storage docks at Fort William, Little. Current and
Britt to accommodate additional tonnage,
(
63||||7–69
Wheat was easily the foremost grain moved. It constituted 71.1
per cent of the 1914 movement, and over the 15-year period 1930 to
1944, inclusive, constituted 70.6 per cent of the movement. Shipments
of the different varieties of grain for years 1933, 1937, 1910 through
1941 are shown in millions of bushels in Table XXVI.
TABLE XXVI
SHIPMENTS OF GRAIN BY WARIETIES BY YEARS,
1933, 1937, 1940 THROUGH 1944
(Millions Bushels)
**-*-
——x r r—- 3–
Year Wheat Corn Oats Rye Barley Flax Soy Beans Total
——-ºr--ºr- w r —r -y- —x–
1933 210.3 52.5 24.l. 6.3 3,7 3. 1 anºt 305.3
1937 11:0.5 10.6 19.6 9.0 25.3 1 s 3 l. 2 207.5
1940 230s 7 54.6 21, l. 7.0 15.1 7.0 * 335.3
1941 298.6 lić.2 10.8 10.2 16, 2 5.0 tºng 339.0
1942 225.3 29.1 17.9 2.3 13sl ll, 5 fºuge 299.2
1943 30!!...], 7.l. 39.7 5.7 lºſ. 3 17.0 * l;2200
1941; 1120. A 2.6 82.3 3.3 56.9 12.5 0.3 591.1 1/
l/ Contains 7-3 screenings not itemized.
Ports of Grain. Shipments
Most of the lake grain shipped moves from the Canadian port of
Fort William-Port Arthur and the United States ports of Duluth-
Superior, both on Lake Superior. In 1914 a total of 78.3 per cent
of all shipments was from Fort William—Port Arthur and 19s 9 per cent
from Duluth-Superiors The remaining 1.8 per cent moved from the
Lake Michigan ports of Chicago (1.2 per cent), Manitowoc (0.1 per
cent) and Milwaukee (0.5 per cent).
* The movement in 1944 was 16, 228, 300 met tons or 591,141,000
bushels. Since the historical record by ports of shipment is carried
631ſlig–70
in bushels, the movement for the years 1953, 1937 and 1940 through 1941,
is shown in bushols in Table XXVII,
TABLE XXVII
PORT SHIPMENTS OF GRAIN BY YEARS,
1933, 1937 AND 1940 THROUGH 1944
Y (Million Bushels)
* From From From From From Unac—
Year Ft. William- Duluth- Chicago- Mani- Milwau— counted Total
Pt. Arthur Superior S. Chicago towoc kee for
1933 1714.6 62.7 Bl, 7 2, 3 14.l * 305.3
1937 ll:3.4 54.3 34.4 * H.9 * 207.5
1940 206.4 81s2 l!6.0 gº 2.2 * 335.3
1941 252.0 95.7 25.9 1.4 H.0 * 339.0
1942 2.ll, 1 72. 3 12.8 *e 2.5 * 299.2
1943 343.9 72.6 5.5 * Qºse pºse l;22.0
1941; 1163.3 ll.T.H. 7.2 .5 2. 3 **s 391, 1
the movements over five-year periods:
The trend is focused in the following percentage
tabulation of
From , From From From From Unac—
Years Ft. William— Duluth- Chicago— Mani—. Milwau— counted Total
Pt. Arthur Superior S. Chicago towoc kee for
1930–3]+ 60.6% 19.1% 16.5% 0.5% 3.1% 0.2% 100.0%.
1935–39 62.l. 2l el lik.5 0.3 2.0 * 1OO ... O
1940–41; 73.0 21.6 H.8 O. l. 0.5 gºssº 100.0
Total - 66.0 20.7 11.3 0.2 1.7 0.l. 100.0
The change in the Chicago–South Chicago volume
Inote.
since 1940 is of
In 1944 these ports, normally shipping ports of grain exclusively,
received grain, principally feed grain, as did also Duluth which, too,
is normally a shipping port exclusively.
Ports of Grain Receipts
Important diversionary trends occurred in the grain movement in
the 1940's away from the established ports nearer the seaboard, such
as Buffalo and Oswego in the United States and Port Colborne and the
Yº.
St. Lawrence River in Canada. The trends were toward Lake Huron
ports on Georgian Bay, Duluth on Lake Superior, and Lake Michigan
|
ports, principally Chicago. The ports of receipt of the l839 and
l944 shipments are shown in Table XXVIII.
TABLE XXVIII
RECEIPTS OF GRAIN AT PRI;CIPAi, PORTS SHOWN IN
• PERCENTAGES OF T
1933 lº.
Bushels, millions . . . . . . ... 394.2 591. 1
United States Ports Af w
Buffalo . . . . . . . . . . . . . . ... H2.2% 37.5%
Erie . . . . . . * * * * * is a e s e e e e º ' 2. b 2. ()
Toledo . . . . . . . . . . * & sº ºn e s is is l. 3 2. l
Oswego . . . . . . . . . . * s = e º s tº ºr 3.3 .6
Duluth . . . . . . . . . . . . . . . . . . gº 7.2
Chicago . . . . . . . . . . . • * * * a v 0. 5 8.1
Milwaukee . . . . . . . . . . . . . . º tºº 1. 5
All other . . . . . . . . . . . . . . . 1.0 2. O
Sub-total . . . . . . . . 51.9 60. 3
Canadian Ports
Georgian Bay . . . . . . . . . . . . 13.1% 22.1%
St. Lawrence River . . . . . . 16. H. H.H.
Port Colborne . . . . . . . . ... 10.6 lº. 3
Goderich . . . . . . . . * e o e s gº e e 5. 5 H. 1
Sarnia. . . . . . . . . . . . . . . . . . . 1.6 l. 7
Toronto . . . . . . . . . . . . .* * * * * 2. 7 2. li.
All other . . . . . . . . . . . . . . w . H. _0. 2
Sub-total . . . . . . . . 48.1 33.2
Total . . . . . . . . . . . . 1Oſ. . ) 190. O
Stone
The stone movement is susceptible to, but not regulated by,
the demand for flux stone in iron and steel making. In later years
an increasingly large amount of limestone has been used by the
chemical industry and in other commercial channels, and this has
affected the relationship between the limestone trade and the iron
ore trade. The movement from 1920 to 1944 has been shown in Table
XVI. From the 1935 port movement of this stone, which is the only
63ri-12
detail available, 70 per cent of it originated at the upper Lake
Huron ports of calcite, Rockport and Alpena in Michigan, 20 per
cent at the upper Lake Michigan port of Port Inland near Manistique
in Michigan, and a few ports on Lake Erie shipped the remaining 10
per cent. The movement was both ways from these upper lake ports,
to the lower lake ports of Lake Michigan and Erie, 19/
p
Bet roleum and Products
As Table VIII has shown, petroleum and products have steadily
increased in lake movement over the years and this has been princi-
pally in gasoline and refined oil movements domestically and in
The movement distributed among the commodities
crude oil exported.
Over a period of years is shown in Table XXIX.
TABLE XXIX
PETROLEUM MOVEMT TOR SET.C.H.ED YEARS
(Thousands Iſet Tons)

Domestic 1923 1929 1933 LS37 1910 1913
Crude Oil ............. se II;2 1,503 335 11.6 136
Fuel and gas oil . . . . . . sº 24 316 1,336 l, 350 1,914
Gasoline . . . . . . . . . . . . . . sk l,lili 1,515 2,846 3,763 l,524
Kerosene . . . . . . . . . . . . . . bº 35 57 113 157 1814
Lubricating oil . . . . . . . Sk ll 13 27 28 29
Other products . . . . . . . . . * B7 5 32
Total domestic ...... TEöII I, III: 3.36 II,717 5, 76 6,36.
Export * w
Crude oil . . . . . . . . . . . . . §: 163 193 303 1,283 2,073
Fuel and gas oil . . . . . . Sk 3. 8 0.8 15 160 1.
Gasoline . . . . . . . . . . . . . . $: 1.5 122 lily 12O 36
Kerosene . . . . . . . . . . . . . . * . O. 7 1.5 l. 3 0.14 º
Lubricating and other —t- O. H. 2 l,5 0.14 º
39 169.1, 319.3 361.8 l,563.3 2,160
* Not available
SOURCE: Annual Report of the Chief of Engineers, U. S. Army, Part 2.
10/ Corps of Engineers, U.S. Army, Transportation on the Great
Lakes, Transportation Series No. 1, (Revised 1937.)
- &#1-3
A distribution of these products is available for 1935 in
which year 3, 331,000 tons moved domestically and 151,000 tons to
Canada. Of the combined total 59 per cent Iloved from Indiana.
Harbor, Indiana, 13 per cent from Saginaw River, ll per cent from .
Toledo and almost four of the remaining 12 per cent from Cleveland.
The principal ports of receipt were Detroit, 26 per cent, Toledo,
16 per cent, Cloveland, 12 per cent, and Duluth-Superior ll of the
remaining 16 per cent. The export traffic, principally crude oil,
was in 1935, principally to Montreal.il/
Sand and Gravel
Most of the sand and gravel is dredged up out of the Lake bot-
toms. For example, in 1935 where details are available, receipts
exceeded. shipments by approximately 3,800,000 tons. Receipts were
4,633,000 tons and shipments 342,000 tons. Of the receipts in that
year 40 per cent were to Gary, Indiana, 21 per cent to Chicago, 13
per cent to Detroit, nine per cent to Buffalo and the remaining 17
per cent scattered among the other lake ports.
CAR-FERRY TRAFFIC
The car-ferry system was initiated in 1833, when the Mackinac
Transportation Company put in service a boat across the Straits of
Mackinac, at the head of Lake Michigan, to connect the Michigan
Central Railroad terminus at Mackinaw City with that of the Duluth,
South Shore & Atlantic Railway at St. Ignace, a distance of about
cist to ten miles. (This ferry now connects the New York Central
and Pennsylvania systems at Mackinaw City with the Duluth, South
Shore & Atlantic Railway at St. Ignace.)
ll/ Corps of Engineers, U.S. Army, Transportation on the e
Great Lakes, Transportation Series No. 1, (Revised 1937).
63||17–74
For the longer or open-sea crossing of the lake itself, the
Ann Arbor Railroad was first, putting two boats in operation in
1892 between its terminus at Frankfort, Mich., and that of the
Green Bay & Western Railway at Kewaunee, Wis. Later, it estab-
lished additional routes from Frankfort to Menominee and Manitowoc,
Wis., and Manistique, Mich. In 1897, the Pere Marquette Railroad
entered the field. This line onds at Ludington, Mich., some 30
miles south of Frankfort, and its first service was with one boat
loetween Ludington and Manitowoc. The Chicago & West Michigan
Railway started a boat between Muskegon, Mich., and Milwaukee in
1898, but this railway was soon acquired by the Pere Marquette
Railroad, which then changed the route, operating the boat between
Ludington and Milwaukee. To these two routes it later added a
third, to Kewaunee. In 1906 the Grand Trunk, Western Railway - now
a part of the Canadian National Rall-ways - started its car-ferry
between Grand Haven, iiich., and Milwaukee, Wis., but in 1953 it
adopted Muskegon, instead of Grand Haven, as its eastern port.
(A.R.E.A. Bulletin Wol, 38, No. 387, July, 1936, Pages 3 and 4.)
The Lake Michigan car-ferry service constitutes by far the
largest car-ferry system in the World, and is an important link in
railway transportation. This service originated in the fact that
the lake intersects several rail routes . There are alternative
routes via rail around the south end of the lake but these involve
additional time and expense. In some instances the car-ferry
routes saves at least 100 miles of rail transportation.
63ari-15.
The principal car ferry companies and the points between
which they operate are shown below.
Name of Company º Ports (between)
kfort, Mich. and Kewaunee,
Ann Arbor Railroad Co. Fran
Manitowoc, Wis., Marinette,
Manistique and Menominee, Mich.
Grand Trunk Milwaukee Muskegon, Michs and
Car Ferry , Co. * Milwaukee, Wis.
Mackinac Tiffansportation Co., Mackinaw City anº/ St. Ignace,
Mich.
Ontario Car Ferry Co., Ltd. Genesse Dock (Port of Rochester)
and Coburg, Ontario,
Pennsylvania, Ontario Ashtabula, Ohio and
Transportation Co. Port Burwell, Ontario.
Pere Marquette Railway Iudington, Mich, and Manitowoc,
Car Ferry Service Milwaukee and Kewaunee, Wis,
/
-gº
In addition, the Canadian Pacific Car & Passenger Transfer
Co., Ltd., operates a ferry across the St. Lawrence River between
Ogdensburg, N.Y., and Prescott, Ontario, anā Canadian National Railways,
|
Pere Marquette Railway Co. and Wabash Railway Co. operate ferries be-
tween Detroit, Mich. arid Windsor, Ontario.
Car ferry traffic on the Great Lakes in 1943 and 1933 is shown
in Table XXX,








63||||7–76
TABLE XXX
CAR FERRY TRAFFIC ON GREAT LAKES, 1943 AND 1933
(Thousands Net Tons)
/
WESTBCUND
From 1943 1935. To 1913, 1933
Frankfort, Michs . . . . 57.7 321; Manistique, Mich. 33 31
Muskegon . . . . . . . . . . . . l,67 * Nenominee . . . . . . . . . 6); 110
Grand Haven o . . . . . . . º 94 Kewaunee, Wis. . . . . . |21. 169
Ludington . . . . . . . . . . . 1,356 87), Manitowoc . . . . . . . . . . 507 331
Total . . . . . . . . . . . 2,400 l. 2921/ Milwaukee. . . . . . . . . . . . 1, 325 559.
Total . . . . . . . . . . 2,100 l, 250 l/
FASTBCUND
To. From *
Frankfort, Michs . . . . . , 1,3149 1167 Manistique, Mich. 237 27
Muskegon , s , . . . . . . . . . , 752 Menominee . . . . . . . . . . . 107 33
Grand Haven s , . . . . . . . . *e 134 Kewaunee, Wiss . . . . . . . 788 119
Iudington . . . . . . . . . . . . l. , 51.7 536. Manitowoc . . . . . . . . . . . 906 390
Total . . . . . . . . . . . . .3,598 l, 1571/ Miiwuakee . . . . . . . . . . . 1,560 I65
Total . . . . . . . . . . 3,593 l, 384 l/
NORTHBOUND SOUTHBOUND
From To
Ashtabula . . . . . . . . . . . . 257 197 Ashtabula . . . . . . . . . tº 3 l
Rochester . . . . . . . . . . . . 335 208 Rochester • . . . . . . . . . . 132 2O
Ogdensburg . . . . . . . . . . . . 226 16, Ogdensburg . . . . . . . . . . 119 79.
Total . . . . . . . . . . . , 1,018 F89 Total . . . . . . . . . . , 309 100
l/ No explanation of failure to balance.
SOURCE: Annual Report of the Chief of Engineers,
U. S. Army, Part 2. /
Information is not available as to the Mackinac Straits, and
Detroit River, movements,
PASSENGER TRAFFIC
Passenger traffic on the Great Lakes consists largely of ferry
passengers. In 1929 of 28 million passengers reported, 76 per cent
were ferry passengers, 10 per cent were regular passengers and 14
per cent excursionists. In 1935 of 10, 782,000 passengers reported,
6317-77
5, T
67 per cent were ferry passengers, 19 per cent regular passengers
and lll per cant excursionists. In 1913 of 6,560,000 passengers
w
.** ar
reported, 37 per cent were ferry passengers, 36 per cent regular
!
S
passengers, and 27 per cent excursionist
to
The bridge and vehicular tunnel construction linking Detroit
to Windsor, Canada, had considerable effect upon the ferry traffic
after 1929 and 1930, and the war period, which restricted travel
a like effect after 1941.
Č.
between Canada and the United States, ha
While the tonnage of this class of traffic is small as com-
pared with the total tonnage in the lake trade, it includes many
...?
commodities, and its transportation is more competitive with other
modes of transports In view of the competitive nature an effort
º:
has been made to develop the amounts of traffic writh the commodi-
ties, wherever possible, in the inter a st of showing the trend over
a period of years,
Table XXXI shows the package fraight traffic of the United
States Great Lakes ports for the four years, 1920 through 1923.
N
65uri-Is
TABLE XXXI
PACKAGE-FREIGHT COMMERCE OF UNITED STATES GREAT LAKES PORTS,
1920 THROUGH 1923
(Thousands Net Tons)
Grand Foreign Domestic
Calen- to tal —F----—T +- Ship- Total
dar adjust – Imports Exports Total Receipts ments Total (adjust-
year ed ed) l/
1920 2, 353 HO 39 79 2,316 2,242 H, 558 2,279
1921 2, OOl 63 H3 ll.l 1,918 l,862 3,780 l,890
1922 2,722 64 127 191 2,644 2,417 5,06l 2,531
1923 3,051 HO 1OO 1HO 3, 119 2,702 5,821 2,911
Annual
Average 2, 533 52 73 130 2, 499. 2, 306 H,805 2,403
1/ Domestic commerce has been adjusted by discounting half of the
total, for the reason that receipts duplicate shipments, or
vice versa, Shipments are less than receipts because of the
movement from minor ports, for which no statistics are available.
SOURCE: War Department-Corps of Engineers, U.S. Army and U.S.
Shipping Board, Transportation on the Grant Lakes
(1926) p. 373.
The average annual imports during the four-year period. Were
51,975 tons; exports, 73,468 tons; domestic receipts, 2,499,236 tons;
and domestic shipments, 2, 305,710 tonse Eliminating tile duplications
resulting from the addition of domestic receipts and shipments, the
net average package freight of United States ports on the Great Lakes
during the period was 2,532,916 net tons.
In 1920 the total tonnage of the Great Lakes amounted to lll-l
million tons, and the package freight tonnage was 2.36 million tons.
In 1923 the total tonnage increased to 125.5 million tons with the
package freight increasing only 700 thousand tons.
In the next five-year period, 1924 through 1923, the average
domestic and foreign traffic was greater than in the previous period,
p
*
M
631ſh;7-79
although in 1924 and 1926 the domestic freight fell below the amount
transported in 1923. In 1923 the movement amounted to almost four
million tons or about three per cent of the total lake trade. Table
XXXII shows the package freight tonnage for 1924 through 1923, sº
TABLE XXXII
PACKAGE-FREIGHT COMMERCE OF UNITED STATES GREAT LAKES PORTS,
1924 THROUGH lºº&
(Thousands Net Tons)
Grand.
Calen- to tal. Foreign DGmeştic ſº-sºº sºmeo
dar adjust– Imports Exports Total Receipts Ship— Total Total
year ed. * ment S (adjust-
ed)1/
1924 2, 200 6O 61 lel 2, 353 l, 305 ||, 158 2,079
1925 3, 50l. 151 179 310 3, 427 2,960 6,387 3, 1914
1926 3, 145 lili 243 387 2, 327 2, 633 5, 515 2,753 ;
1927 1,071 lfilt 2ll 363 3,678 3, 727 7,405 3,703
1928 Hijīl; 155 £ol. His 3,383 5,298 L1215 3,228
Annual
Average 3, 459 l29 192 321 5, 242 3,034 6, 276 3,133
lſ Domestic commerce has been adjusted by discounting half of the
total, for the reason that receipts duplicate shipments, or
Vice versa. Shipments are less than receigts because of the
movement from minor ports, for which no statistics are avail—
able.
Corps of Engineers, U. S. Army, Bureau of Operations
U. S. Shipping Board, Transpºrtation on the Great
Lakes, Transportation Series No. 1 (Revised 1930), p. 357.
SOURCE:
The average annual imports during the five-year period were
128,922 tons; exports, 191,659 tons; domestic receipts, 5,241, 190
tons; and domestic shipments, 3,034, 181 tons. Eliminating the dup-
lication resulting from the addition of domestic receipts and ship-
ments, the net average package freight of United States ports on the
Great Lakes during the period was 3, 458, 566 tons,
631||7-30
|
Data for 1929 and 1930 are not available. However, the rela—
tive importance of the package freight traffic in the Great Lakes'
commerce as a whole for the period 1931 through 1940 is shown in
Table XXXIII.
TABLE XXXIII
PACKAGE-FREIGHT CO., FRCE OF UNITED STATES
GREAT LAKES PORTS, lg,31 THROUGH 1940
(Thousands
Net Tons)
Foreign and Domestic
combined r Dome stic Foreign
All Package Per All Package Per All Package Per
Year Freight Freight Cent Freight Freight Cent Freight Freight Cent
1931 90,819 2, 361 3.2 77,509 2,629 3.4 ly, 310 232 l. 7
1932 54,913 2,739 5.1 lily, 366 2,513 5. 7 10,547 276 2.6
1933 81,327 3, 510 l.2 73,723 3,203 lſ.l.. 10,599 302 2. 3
1934 91,082 2,653 2.9 77,307 2,362 3. l l 3, 775 291 2.1
1935 103,131 lº, 395 H. 3 39, 356 3,963 H.H 13,775 H.32 5.1
1936 133,374 3, lili; 2.5 122, 738 3,012 2.5 lb, 536 H31 2.8
1937 lol,094 3,064 l.9 ll:3, 355 2,612 1.3 ly, 739 132 2.5
1933 98, 30l. 2, 573 2.6 82,130 2,116 2.6 lº,821 l;2 2.7
1939 IHL, 577 2,557 l. 3 124, 175 2,039 1. 7 l', 102 liliğ 2.6
1940 l/11,547 2,893 1.7 153,601 2,1126 1.6 20,946 l;67 2.2
Annual
Aver—
age ll 3,817 3,072 2.7 98,897 2,696 2.7 lik,920 376 2, 5
SOURCE: Annual Report of £he Chief of 3ngineers, U. S. Army,
1941, Part 2,
Corps of Engineers, U. S. Army, Transportation on
the Great Lakes, Transportation Series jo. 1
(Revised 1937) Table 201 and Summary.
Special compilation of Package Freight of U. S.
Great Lakes ports, 1936–1940, for Division of
Economics and Statistics, United States Maritime
Commission, by Board of Engineers for Rivers and
Harbors, War Department.
total lake tonnage has been shown.
In the above table the relationship of package freight to the
These totals would have been slightly
higher but for the fact that pig iron, cement and fish included hereto-
fore in package freight tonnage have been eliminated in the totals com—
mencing in 1931.
6317-31
- From the preceding tºlation it will be seen that of the t
combined foreign and domestic United States Great Lakes commerce
the package freight ranged from 1.7 per cent to 5.1 per cent.
during the 10-year period, 1931 through 1940. The domestic pack-
age freight ranged from 1.6 per cent to 5.7 per cent of the total
domestic commerce, and the foreign package freight from 1.7 per
cent to 3.1 per cent of the total foreign commerce.
The trend in domestic package–freight tonnage does not follow
that of the lake tonnage. Since 1935, which was the peak year,
the package–freight tonnage declined each year, with the exception
of 1940. In some of the years when the total tonnage increased this
traffic showed a decrease. For example, in 1937 the total tonnage
increased slightly more than 22 million tons over 1936, and the
package-freight tonnage decreased almost loo thousand tons. Com-
paring 1940 with 1931, the total domestic tonnage increased almost
100 per cent, whereas, the domestic package–freight tonnage was less
in 1940 than in 1931.
Principal Commodities
It will be noted from Table XXXIV that a small number of
commodities made up the major portion of the package–freight ton-
nage. In 1923, after eliminating the unclassified tonnage, sugar
produced practically all the import ton:hage, and in 1923 manufac-
tured iron and steel and pig iron contributed the major portion of
the tonnage. In the case of exports three commodities, manufac-
ured iron and steel, sugar and flour, were the most important
commodities. The domestic tonnage consisted of a greater number of
commodities. Without considering the unclassified commodities the
63!!!7-32
principal ones were cement, lime, automobiles, sugar, flour, salt , ,
manufactured iron and steel and pig iron.
TABLE XXXIV
PRINCIPAL COMMODITIES IN PACKAGE-FREIGHT COMMERCE
OF UNITED STATES LAKES PORTS, 1923 AND 1923
(Thousands Net Tons.)
Foreign Domesticl/
Imports Exports
A 1923 1923 1923 1923 1923 1923
Cement, line, etc. . . . - ſºmº §: tºº 2O6 734
Copper. . . . . . . . . . . . . . . * tºº 7 *sº 54 56
Automobiles. . . . . . . . . . * º Sk l; 163 299
Suëare . . . . . . . . . . . . . . . 11 5 3 55 36 195
Fish. . . . . . . . . . . . . . . . . tºº, 6 §: §: 13. 12
Floure. . . . . . . . . . . . . . . – (º 11 21 3]+2 710
Salto . . . . . . . . . . . . . . . . (ºſs º ©º -> 13 133
Fruits and vegetables * tºº Sk * l; lig
Livestock. . . . . . . . . . . * §: §: * l **
Manufactured iron -
and steel. . . . . . . . . . . * 18 2O 166 94 lºló
Petroleum products. . . ~~ $º $4 •- 9 *
Pig irons • . . . . . . . . . . . - 6 l 2 21. 172
Unclassifieds . . . . . . . . . 29 120 53 l; lºok 1,150
HO
Total . . . . . . . . . 155 LOO 26L 2,911 3,953
* Less than 1,000 tons.
1/ Total of receipts and shipments divided by two.
SOURCE: Corps of Engineers, United States Army,
Bureau of Operations, U. S. Shipping Board.
Transportation on the Great Lakes, (1926
and Revised 1930)-
Imports during the three years, 1935, 1939 and 1940, increased
greatly as compared with 1923. The most important commodity in this
trade was paper, which contributed more tonnage than the remainder
of the commodities. On the other hand, the exports decreased. The
total of the three years did not equal the amount of exported traf-
fic of 1928. The most significant change was in the sugar tonnage,
63||17–33
While in 1928 was contributed the second largest amount of ton-
nage, there was none exported during these three years. In the
domestic trade automobiles, flour and meal, iron and steel and
sugar were the principal commodities. Ali of these commodities
showed an increase in 1935 as compared with 1928, but in the other
two years, all except the automobile tonnage, decreased.
Table xxxy shows the principal commodities and the amounts
transported awing 1935, 1939 and 1940.
, TABLE XXXV
PRINCIPAL COMMODITIES IN PACKAGE-FREIGHT COMMÉRCE
OF UNITED STATES LAKES PORTS, 1935, 1939 AND 1910
(Thousands Net Tons)
Foreign Domestic
Imports £ports
1935 1939, 1910 1935, 1939 1910 1935, 1939, 1940
Automobiles . . . * l Sk 6 2 l 1196 B]...i 652
Canned goods. ... l 2 #: * Sk sk 37 7|| l!6
Copper, un-
manufactured. . *sº lºs {º tºº 3 – 12 33 17
Dairy pro- |
ducts and eggs * Sk sº • * &º fººmsº 70 37 94
Flour and meal. 3 9 6 13 21 9 769 1:23 365
Fruits and
Vegetables, _*
fresh . . . . . . . . 2 sk l Sk Sk * 5 2 3
Iron and steel,
rolled forms
of . . . . . . . . . . . 3 *k, Sk 2]. 19 35 733 2p, 243
Machinery . . . . . 1 sk Sk Sk 3 l 52 6 l!
Paper . . . . . . . . . 221 235 333 Sk l l 1H 19 18
Sugar . . . . . . . . . 3 15 tºº tºº * sº 356 13|| 142
Unclassified . . .9l 55 63 60 31 ll 1,399 501 842
Total . . . . . . 332 367 HO8 100 30 58 3,963 2,089 2,126
* Less than 1,000 tons.
SOURCE: United States Maritime Commission –
Division of Economics and Statistics.
The data dealing with the package freight tonnage after 1940
have been confined to that transported by the regulated carriers and
are set forth in that section of the report.
SECTION III
OPERATIONS OF REGULATED CAREIERS
Transportation by the so-called package–freight carriers, which
after the passage of the Transportation Act of 1940 became the regu-
lated carriers as designated in this section, differs in one important
respect from that existing on other waterways. That is, in the early
1900 is the most important lake lines were owned and operated by the
railroads. Beginning with 1916 these lines were sold by the railroads
and the latter withdrew from water transportations The next change
was in 1941, when the Interstate Commerce Commission was delegated
the jurisdiction Over these carriers as a result of the passage of
the Transportation Act of 1910. Because of these changes an effort
has been made to present the conditions and the results of package-
freight transportation on the Great Lakes in three parts. The first
part deals with the period prior to 1916, or the early history. It
deals chiefly with the railroa-owned lines, for the reasons that they
transported the major portion of the freight. The second part includes
the period from 1916 through 1910, or after the relinquishment of the
lake lines by the railroads, until the passege of the Transportation
Act of 1910. Here an effort has been made to deal with the principal
carriers With emphasis placed upon the operation of the carrier Which
took over the services of the railroad-owned lines. The third part deals
with the operations of the package freight carriers, after th prºne,
of the Transportation Act of 1910.
63||17–35
Early. History
Prior to the passage of the Panama Canal Act of August 24,
1912, and for a short period thereafter, there were ll principal
carriers operating in the package–freight trade and participating
in rates by routes, partly by rail and partly by lake. They were:
Canada Atlantic Transit Company,
Cleveland & Buffalo Transit Company,
Detroit & Cleveland Navigation Company,
Erie Railroad Lake Line,
Lackawanna Transportation Line,
Lehigh Valley Transportation Company,
Mutual Transit Company,
Port Huron & Duluth Steamship Company,
Rutland Transit Company,
Erie & Western Transportation Company,
Western Transit Company.
With the exception of the Cleveland & Buffalo Transit Company,
Lackawanna Transportation Line, Port Huron & Duluth Steamship
Company, and the Detroit & Cleveland Navigation Company, the se lake
lines were owned and controlled by the railroads,
The first railway line under a single management which con-
nected the Lakes with tidewater was the Erie, which in 1851 was
completed between Piermont and Dunkirk, N.Y., the latter being an”
important lake port in the early days. The Erie immediately began
to charter and later to construct lake vessels to serve as feeders
for its railroad. For more than 60 years it operated lake vessels
either directly or through a subsidiary company,
In the early eighties the Lehigh Walley extended its line
into Buffalo and thereafter operated vessels between Buffalo and
Chicago in connection with its railroad.
The Rutland Railroad Company in 1900 acquired its line
between Ogdensburg, N.Y., and Lake Champlain, and organized a sub-
sidiary line of steamers to operate between Ogdensburg and Chicago.
- 634-36
In 1883 James J. Hill organized * northern Steamship Company
to engage in water transportation between Buffalo and the head of
the lakes as an adjunct to what is now the Great Northern Railway.
At about the same time a boat line was established to operate be-
tween Buffalo N.Y., and Gladstone, Mich., as an outlet for the recently
constructed Soo Line. Both these steamer lines were used for the
purpose of giving Duluth and the Twin Cities a favorable line of
rates from the East in comparison with Chicago. In 1903 and 1907
the boats owned by these lines were bought by a company owned by
the eastern railroads after rail outlets through Chicago had been
obtained by the Great Northern through the Burlington purchase and
by the Soo Line through acquisition of the Wisconsin Central. (In
1907 the Mutual Transit Company took over the lake package route
theretofore operated by a subsidiary of the Minneapolis, St. Paul &
Sault Ste. Marie Railway company aſ
The New York Contral and the Pennsylvania for many years did
not ongage directly in lake transportation. The former road in l870
had established traffic arrangements with a steamer line operating
from Buffalo. In 1883 this was taken over by the New York Central
and reorganized as its subsidiary, the 'estern Transit Co. Similar
considerations forced the Pennsylvania, in 1900, to acquire the Anchor
Line Gris & Western Transportation Co.). ---
The Canada Atlantic Railway Co. constructed a railway in Canada.
to Depot Harbor, Ontario, on Georgiam Bay in 1897, and soon after-
wards organized a steamer line, known as the Canada Atlantic Transit
Co., commonly called the C.A.T. line, an American corporation, op-
erating boats between Depot Harbor and Chicago and kilwaukoo.13/
l2/ I & S Docket No. 615 – Rates via Rail-and-Lake Routes,
37 I.C.C. 302, 306. •
l3/ Regulation of Transportation Agencies, Senate Document No. 152,
73rd Congress, 2d Session.
63||||7–87
Thus, we had the railroad-owned steamer lines, as shown in
Table XXXVI, in operation.
TABLE XXXVI
RAILROAD-6)WNED LAKE LINES
Name of Line sº Owned by
f
Canada Atlantic Transit Company Grand Trunk Railway of Canada.
Erie Railroad Lake Line Erie Railroad Company
Erie & Western Transportation Co. Pennsylvania Railroad |
Lehigh Walley Transportation Co. Lehigh Walley Railroad Company
Mutual Transit Co. ' Mutual Terminal Company,
which was jointly owned by
Lehigh Walley, Erie, Delaware,
Lackawanna & Western, New York
Central & Hudson River, Rail-
road Companies,
Rutland. Transit Company Rutland Railroad Company
Western Transit Company New York Central & Hudson River
Railroad Company's
SOURCE: Lake Line Applications under the Panama Canal
Act, 33 I. G. C. 700, pp. 701, 703.
Serºrices
The lake carriers called at all of the principal ports. Six of
them reached Chicago, and the same number made Buffalo as a port of
calle Their names and the ports of call along with the number of
ships operated are shown in Table XXXVII.
63||||7-88
TABLE XXXVII
PRINCIPAT, I.AKE LINES, NUMBER OF SHIPS OPERATED
- AND PORTS OF CALL, 1911; -
+-
—r-
Name of Line Number Operating
of boats loetween
Canada Atlantic Transit
Co. - . . . . . . . . . . . . . . . . . . - 3 Chicago, Milwaukee, and
+ Georgian Bay ports.
Cleveland and Buffalo ar"
Tran sit Co. © tº e º e s e s sº s * l; Cleveland. and, Buffalo.
Detroit and Cleveland. Buffalo and Detroit,
Navigation Co. . . . . . . . 9 Cleveland and Letroit, and
Mackinac Island.
Brie Railroad. Lake Line l! Chicago, Milwaukee, Fairport,
Ohio, and Buffalo.
Lehigh Valley Transporta- Buffalo, Manitowoc,
tion Co. . . . . . . . . . . . . . 6 Milwaukee, and Chicago,
( 3 Buffalo, Tairport, Cleveland,
( upper Michigan ports,
( Duluth-Superior, Itasca dock,
Mutual Transit Co. . . . . ) Fort Williary—Port Arthur,
( West Ports
( 1. Biffalo, . Cleveland, Fairport,
( Windsor, Green Bay, Gladstone.
Port Huron and Duluth
Steamship Co. . . . . . . . . 5 Port Huron and Duluth.
Rutland Transit Co. ... L2 gdensburg and Chicago,
The Erie & Western Buffalo and Duluth, stopping at
Transportation Co. Erie, Cleveland, Detroit,
(Anchor Line) * * * * * 6 & 6 12 Mackinac Island, Sault Stes
Marie, Houghton, and Marquette;
Buffalo and Chicago, Ille,
stopping at Erie, Detroit, and
Milwaukee,
Western Transit Co. s.. 10 Buffalo and Chicago, Milwaukee,
SOURCE:
Buffalo, N.Y. , Hancock, Houghton,
and Dollar Bay, Mich. : Duluth,
Minn. ; and Superior and Itasca,
Wis,
Investigation and Suspension Docket No. 615,
Rates via Rail-and-Lake Routes, 37 Is C. C. 302,
DT2 - 319-321
O
63||||7-89.
Volume Of Tomaše
Table XXXVIII shows comparatively for the years 1903 through 1914
certain statistics of tonnage movements by vessels of seven railroad-
Owned lake lines. It will be observed that over a period of years
these lines showed no regular increase, year by year, in tonnage handled.
Using 1905 as a basis of comparison, 1914 shows a decrease of almost *.
10 per cent, whereas 1913 is an increase over 1905, and the tonnage
runs quite evenly in 1909 and 1910. The peak year was 1907, when .
4,361,000 tons were transported. In the decade prior to the relinquish-
ment of lake lines, 1905–1914, these lines transported on an average
of almost 4 million tons per year. The Western Transit Company led
the group with the Erie & Western transportation Company second.
While the major portion of the traffic was package freight, all of the
carriers transported some commodities in bulk.
63||||7-90
TABLE XXXVIII' ' '
TONNAGE OF SEVEN LAKE LINES, 1903 THROUGH 1914.1/
(Thousands Net Tons)
1903 1904
Package Other Package Other
freight freight Total freight freight Total
Canada. Atlantic -v–
Transit Co. 2/ 2/ . 2/ 2/ 2/ 2/
Erie R. R. Lake
Line . . . . . . . . . 250 10]. 351 215 90 305
Erie & Western
Transportation
Co. . . . . . . . . . . 602 169 771 l'Olſ. ill 315
Lehigh Walley
Transportation y
Co. . . . . . . . . . . 2/ 2/ 2/ 2/ 2/ 2/
Mutual Transit
90. . . . . . . . . . . 236 1113 l:34 233 33 321
Rutland Transit
90. . . . . . . . . . . 109 110 249 79 78. 157
Western Transit
90. . . . . . . . . . . 7||7 25+ 1,001 518 253 771
Total 1,994 312 2,306 l, 50l. 565 2,069
1905 1906
Package Other Package Other -——r-
freight freight Total freight freight Total
Canada Atlantic
Transit Co. 95 157 252 102 203 305
Erie R. R. Lake *
Line . . . . . . . . . 359 136 5:15 273 181 154
Erie & Western
Transportation
Co. . . . . . . . . . . 6ll! 93 742 636 135 321
Lehigh Walley
Transportation **
Co. . . . . . . . . . . 386 236 622 399 133 537
Mutual Transit -
Co. . . . . . . * * w p 379 19 l;23 l:51; 30 l:34
Rutland Transit
Co. . . . . . . . . . . 113 103 221 119 l?3 292
Western Transit *
Co. . . . . . . . . . . 734 312 1,046 732 346 l, 128
Total . . . . . . 2, 715 l, 141 3,356 2, 315 l, 206 H,021


63!!!!7–91
TABLE XXXVIII(Cont'd)
TONNAGE OF SEVEN LAKE LINES, 1903 THROUGH 1914.1/
(Thousand Net Tons)
1907 1903
Package Other Package Oth Cr
freight freight Total freight freight Total
Canada Atlantic
Transit Co. . . lll . 11.5 256 112 l39 251
Erie R.R. Lake
Line . . . . . . . . . 351 61 H12 235 1); 299
Erie & Western -
Transportation
Co. . . . . . . . • * * 703 L73 376 636 ll'ſ 753
Lehigh Walley -
Transportation ..f
Co. . . . . . . . . . º lilić 168 616 304 iól! l:63
Mutual Transit
Co. . . . . . . . . . © 650 1143 798 607 J.29 736
Rutland Transit *
Co. . . . . . . © tº e º 1142 1119 291 133 llº 253
Western Transit
Co. . . . . . . . . . . 673 H3)4 1, 112 701. 237 933
Total 3,033 l, 278 l!,361 2,733 915 3, 698
*~ 1909 1910
Package Other Package Other

freight freight Total freight freight Total
Canada Atlantic
Transit Co. . . 128 1H8 276 96 l63 279
Erie R.R. Lake
Line . . . . . . . . . 293 63 36]. 337 110 lil;7
Erie & Western *
Transportation
Co. . . . . . . . . . . 712 l38 350 700 95 793
Lehigh Walley
Transportation
Co. . . . . . . © e º e 365 93 l63 H25 l25 550
Mutual Transit -
Co. . . . . . tº ºr e º e 683 35 763 621 119 7||O
Rutland Transit
Co . . . . . . . . . . © 219 132 351 213 126 339
Western Transit
Co. . . . . . . . . . . 79.2 265 l,057 742 220 962

sº
Total . . . . . . 3, 192 934. H., 126 3,134 976 H., 110
- - 63||17–92
TABLE XXXVIII (Cont'd)
TONNAGE OF SEVEN LAKE LINES, 1903 THROUGH 19111/
(Thousands Net Tons)

1911 • 1912
ſ s Package Other . Package Other
freight freight Total freight freight Total
Canada Atlantic
Transit Co . . . 116 196 312 127 150 277
Erie R. R. Lake ---
Line . . . . . . . . . 255 36 311 276 l6 322
Erie & Western
Transportation
Co- . . . . . . . . . . 669 . 155 824 7ll 85 826
Lehigh Walley
Transportation
Co. . . . . . . . . . 359 205 56), 312 95 107
Mutual Transit,
Coo . . . . . . & e º ºr s 599 123 722 623 88 7ll
Rutland. Transit
Co. . . . . . . . . . . . 197 lló 313 1914 liO 30),
Western Transit *
Co. . . . . . . . . . . . 683 232 915 7|12 101. 813
Total . . . . . . 2, 878 1,083 5,961 3,015 675 3,690
1913 1914 *
Package Other Package Other
freight freight Total freight freight Total
Canada Atlantic
Transit Co . . . . 12O 156 276 125 138 263
Erie R. R. Lake
Line . . . . . . . . . . . 273 6O 333 256 25 281
Erie & Western
Transportation -
Co. . . . . . . . . . . . . 765 197 962 715 6O 805
Lehigh Welley ! f
Transportation
Co. - . . . . . . . . . . 311 232 51.3 312 85 397
Mutual Transit,
Co. . . . . . . . . . . . . 7ll! 105 819 666 36 702
Rutland Transit
Co. . . . . . . . . . . . * 159 132 291 17O 11!! 23);
West arn Transit
Co. . . . . . . . . . . . . 787 210 997 758 3)4 792
Total . . . . . . . 3, 129 l,092 +, 221 3,032 lig2 3,524
— ------------------- * 634);7-93
TABLE XXXVIII (Cont'd)
M • - - ... -
TONNAGE OF SEVEN LAKE LINES, 1903 THROUGH 1911.1/.
—r-
Per cent of total tonnage
Package J ther Package Uther
freight reight freight freight.
1905 . . . . . . . . . . . 70.41 29. 59 1910 . . . . . . . . 76.25 23.75
1906 . . . . . . . . . . . 70.00 30.00 1911 . . . . . . . . 72.65 27.35
1907 . . . . . . . . . . . 70.69 29.31 1912 . . . . . . . . 31.69 l&. 31
1908 . . . . . . . . . . . 75.26 24, 74 1913 . . . . . . . . 74.14 25.36
1909 . . . . . Q tº e s tº 6. 77.36 22.34 1914 . . . . . . . . 86.03 13.97
l/ Years ending December 31.
2/ Not available. - *
SOURCE: I. & S. Docket No. 615, Rates via Rail-and-Lakes Routes,
37 I. C. C. 302, pp. 340 and 3.41.
Character of Traffic and Principal Commodities
As shown in the preceding table these carriers transported
traffic Other than package freight althºugh the amount was small.
--~~~~
The tonnage transported by all the lines, except the Conada Atlantic
Transit Company, for the year ending December 31, 1914, has been
Separated as to the principal commodities with the amounts of each
transported and shown in Table XXXIX.
63m.7-9,
$ }
TABLE XXXIX
LAKE LINEs. CLASSIFICATION OF TONNAGE
FOR YEAR ENDED DECEMBER 31, 1914
r——-r—
Per Cent
Tons of to tal
* * * * (000)
Products of agriculture: –
Grain . . . . . . . . . . . . . p tº • * * * * * 309 9,149
Flour . . . . . . . . . . . . . . . . . . . . . . . . , 1,076) *
Other mill products . . . . . . . . . . . H.32) ||7.77
Hay . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 . 22
Tobacco . . . . . . . . . . . . . . . . . . * * * * * 2 ,06
Cotton . . . . . . . tº tº lº & © e º e º 'º º e º a § e ſº 9 .27
Fruits and vegetables . . . . . . . . . 90 2.75
Other products of agriculture . 63 l.9
Total . . . . . . . . . . . . . . . . . . . . . . . . 2,058 62.5l
|
Products of animals :
Other packing-house products .. L .0l.
Poultry, game and fish . . . . . . . . 6 .13
Wool . . . . . . . . . . . . . . . * * * * * * * * * * & 9 .29
Hides and leather . . . . . . . * e o e º e l; • 12
Other products of animals . . . . . 12 –226
Total . . . . . . . . . . . . . . . . . . . º 32 .99
Products of mines :
Anthracite Coal . . . . . . . . . . . . . & © B9 l. &l
Other ores . . . . . . . . . . . . to e o ºr dº º q > l .02
Stone, sand, and other like
articles . . . . . . . . . . . . . . . . . . . . 12 .36
Other products of mines . . . . . . . 110 -3s.5%
Total . . . . . . . . . . . . . . . . . . . . . º 132 5.53
Products of forests :
Lumber . . . . . & © & ſº º & b tº dº ſº $ tº e s e a e o 52 1.59
Other products of forests . . . . ); () l, 23
Total . . . . . . . . . . . * * * * * * * * * ... — 92 2.82
Manufactures;
Petroleum and other oils . . . . . 9 • 23
Stéar . . . . . . . . . . . . . . . . . . . . . . . . l99 6.09
Naval stores . . . . . . . & © e º 'º º e e º 35 l .03
Iron, pig and bloom . . . . . . . . . Ö. }
Iron and steel rails . . . . . . . * 11) 2.53
Other castings and machinery . 69)
Bar and sheet metal . . . . . . . . . . 119 1.49
Cement, brick, and lime . . . . . . 24 .75
Agricultural implements . . . . . . 12 .36
Wagons, carriages, tools, etc. 3 .10 ...sº
Wines, liquors, and beers . . . . 7 , 20
Household goods and furniture, 17 , B2
Other manufactures . . . . . . . . . . $º 353 10,33
Total . . . . . . . . . . . * * * tº e º 'º 753 23, 23
Miscellaneous commodities *
not specified . . . . . . . . . . . . . . . . * LOO 3.06
Merchandise . . . . . . . . . & 9 tº dº sº e º ºs e º a 39 l,81.
Total revenue freight . . . . . . . . 3, 261 100,00
SOURCE: I. & S. Docket No. 615, Rates via Rail—and Lake Routes, 37 I. C. C.
302, 3}lk.
634,7–95
These carriers received 62.5 per cent of their tonnage from
the products of agriculture and 87 per cent of it moved eastbound.
In this group flour and other mill products made up the largest
amount of the tonnage. The other commodity groups, other than the
manufactured products, contributed comparatively little tonnage.
In the latter group sugar was the most important commodity, con-
tributing six per cent of the total tonnage and almost 19 per cent
of the westbound tonnage, Other manufactured products comprised
almost 31 per cent of the westbound tonnage. A review of the Com-
modity movements indicates that the major portion of the eastbound
movement consisted of products of agriculture, and manufactured
products supplied the largest amount of Westbound tonnage.
Transportation Property and Equipment *
The investment of these carriers averaged during the period
1905 through 1914 slightly in excess of $lle 5 million, and as in
the case of water carriers operating on, other waterways, the major
portion was in floating equipment. Table XI shows the investment
for this period. It will be noted that during 1907, 1908 and 1909
the investment remained practically stationary, increased in 1910
and declined in the following years. The average for the period
Was greater than the investment at the beginning of the decade.
634);7-96
TABLE XL
INVESTMENT IN TRANSPORTATION PROPERTY AND EQUIPMENT
OF THE CANADA ATLANTIC TRANSIT CO., ERIE & WESTERN
TRANSPORTATION CO . , ERIE RAILROAD LAKE LINE, IEHIGH
WALLEY TRANSPORTATION CO., MUTUAL TRANSIT CO ...,
RUTLAND TRANSIT CO ..., AND WESTERN TRANSIT CO ...,
1905 THROUGH 1914 1/
1905 1906 1907 1903 1909
(900) (OCO) (OOO) (OOO) (009)
Investments:
Wessels . . . . . . . . . . .); $ $ $ $ 4.
Docks, Wharves ) ll, 215 10,975 ll,765 ll, 633 ll,725
and buildings ...) - --
Other . . . . . . . . . . . . . )
Depreciation included |
in operating expenses. 295 323 305 155 727
Accrued depreciation,
Dec. 31: Wessels . . . . . ** 250 125 H6O l, l87
ſ 10-year
3 • average,
1910 1911 1912 1913 1914 1905–1914
r—— 992) (002 (900) (000) (OCO) (990)
Investments:
Vessels. . . . . . .) & $ $ $ $ $
Docks, wharves,) l2,57l ll,682 ll, 257 11,369 11,531 ll, 572
and buildings)
Other. . . . . . . . . )
Depreciation in-
cluded in operat- g
ing expenses . . . 159 235
Accrued deprecia-
tion, Dec. 31;
Wessels , s . . . . . . 1,233 l, HB3 l,628 l,946 2, #79
2
6
6
3.
3
2
3
3
6
l/ Years ended Dec. 31.
Rates of depreciation: Erie & Western Transportation Co.,
1911 and 1912, 2 per cont; 1913 and 1914, 3 per cent. -
Erie R.R. Lake Line, 6 per cent to July 1, 1907, on inventor
values; 6 per cent on residual values, less estimated scrap
for year June 30, 1903, 4 per cent thereafter.
, Lehigh Valley Transportation Co. 2% per cent, Mutual Transit
Co. , 5 per cent, Western Transit Co., l'905–1909, no regular
rate: 1912–1914, 3 per cent. * g -
SOURCE: Investigation and Suspension Docket No. 615 -
Rates via Rail-and-Lake Routes, 37 I - C - C - 302,
pp. 338, 339, ;
63||||7-97
Financial Results.
In each of the years, 1906 to 1914, the operating Tevenues
from lake operations were greater than in 1905, with 1913 as the
peak year. In that year the freight revenues were in excess of
$5.3 million. The lake operating expenses in each of the years,
1906 to 1914, were also greater than in 1905, and as in the case
of the freight revenues they were largest in 1913. During this
period the operating ratio ranged from 90.5 in 1906 to 103 in
1914, The net income was favorable for the first three years,
1905–1907, however, after that it declined until in 1911; these
Cörriers had a deficit of $334,000. The taxes ranged from $49,000
in 1905 to $63, OOO in 1908. Table XLI shows the financial results
of the operations of seven lake lines,
634.7-98
TABLE XLI
FINANCIAL STATEMENT OF CANADA ATLANTIC TRANSIT CO., ERIE &
WESTERN TRANSPORTATION CO., ERIE RAILROAD LAKE LINE, IEHIGH
WALLEY TRANSPORTATION CO., MUTUAL TRANSIT CO, , EUTIAND
TRANSIT CO., AND WESTERN TRANSIT CO., 1905 THROUGH 1911.
1955-1555-1557-1553–1555 ISIS

(000) (000) (900) (900) (000) (000)
Operating revenues, Lake: º t -
Freight • . . . . . . . . . . . . . º *1,579 $5,227 $5,733 *1,863 *5,799 *5,678
Passenger. . . . . . . . . . . . . . 202 218 231 193 203 268
*~~ Hää # # 5.5% gº sº
º: ...: ########### gº
Operating expenses, Lake: 4,630 5,125 5,660 H,904 5,999 5,918
3: ...: Hä gº º gº gº sº;
Net operating revenue . . 371 572 537 279 13, 173
3
Operating ratio . . . . . . . . 93 90s 5 91.3 94.9 97.9 97, 3
Taxes .............. * G & Cº. lig 53 57 63 66 57
*ents • . . . . . . . . . . . . . . . . . 87 26 – 28 – 103 — lig 115
Total • * * * * * * * * * * * * * * © tº Ç. 136 149 155 i.76 13|| 172
Net Income . . . . . . . © C & b c > * 235 l;23 332 103 d 50 l
*- —-d
1911, 1912 Tigi; Tiº III iO-year average,
—r (000) (000) (000) (000)1905–1914 (000)
Operating revenues, Lake:

Freight • . . . . . . . . . . . . {} *5,325 *5,561 *5,237 °5,151 *5,331
Passenger c. . . . . . . . . . • 53]. *:: 363 316 262
Miscellaneous s. . . . . . . 53 4 73 # —º
5, TiH 5,505 Egg E.55 5, 695
Other operations ..... 323 310 37L 237 z:#
Total tº º º, e o e s e s e e º e s a e 6, Olſº 6,213 6,659 5,711 s 093
Operating expenses, Lake: 5,674 5,812 6,229 5,742 5,569
Other operations. . . . . . . 271 2:3 293 – 173 296
Total . . . . . . . . . . . . . . . . 5,945 6,060 6,522 5,915 5, 365
Net operating revenue .. 97 153 137 d 17.4 223
9perating ratio ........ 98.4 97.5 97.9 103 96.3
Taxes * * * * * * * * e s s e s e º e º 'º 60 66 63 61. 60
** “ . . . . . . . . . . . . . . . . . 169 - 182 - 176 - 1.6 —l 30
Total . . . . . . . . . . . . . . . . . . 229 2lºg 239 210 190
Wet Income • ............d 132 d 95 d 102 d 331, 33
SOURCE: Investigation and Suspension Docket No. 615 -
Rates via Rail-and-Lake Routes, 37 I. G. C. 302,
pp. 338, 339.
6317-99
In 1911, the Interstate Commerce Commission held hearings upon
petitions filed by the rail carriers owning or having an interest in
one or more boat lines, in accordance with the provisions of section
5 of the act to regulate commerce, as amended by the Panama Canal.
Act. (Lake Line Applications under Panama Canal Act, 33 I.C.C. 699.)
These petitions for a continuance of operations were denied., offec-
tive December 1, 1915.
The opening of navigation on the Great Lakes in 1916 marked
the beginning of a new period of lake transportation. The transpor-
tation of package freight was performed by carriors in no way owned by
ths railroads. On March 22, 1916 the Great Lakos Transit Corporation
was incorporated and acquired virtually all of the lake vessels former-
ly owned by the railroads.
Q For a review of the package freight traffic and the principal
carrier's transporting it, the years 1916, 1925, 1934, and 1910 WOTO
chosen and the data assembled.
Some tonnage included in the statistics may have been trans-
ported to and from Canada but the quantity is comparatively small.
As revenues and expenses in the aniual reports are shown for the
entire operations of the carriors the total tonnage transported has
been included in the report.
Volume of Tonnage
The number of lines in Table XLII for the years shown differ
a little because of the addition of one line and the discontinuance
Of operation of another, howevºr, an idea of the volume of package
freight traffic may be gained from this table,
63||17–100
TABLE' XLII *
TONNAGE TRANSPORTED BY THE PRINCIPAL LAKE
LINES FOR YEARS 1916, 1925, 1931. AND 1910
1916 1925, 1931, 1910
Tons Tons Tons Tons
(000) (000) (OOO) (000)
Great Lakes Transit Corp. 2,578 1,382 785, 927
Cleveland & Buffalo A.
Transit Co. . . . . . . . . . . . 113 97 60 (l)
Detroit & Cleveland - t
Navigation Co. . . . . . . • * 2115 216 231 lul:0
Canada Atlantic Transit \
Co. of U. S. . . . . . . . * e ºs 287 277 187 262
Minnesota-Atlantic " *.
Transit Co. . . . . . . . . . ſº -x- tºº. 277. 212 295
Total 3, 223 2, 219 1, 175 1,923
(l) Not in operation.
These carriers enjoyed the best tonnage in 1916. After that
year package freight tonnage declined. Even with the addition of
one line in the 1925 and 1931 tabulations the total tonnage trans-
ported each of the years was still less than in 1916. The most
striking change was in the amounts transport 2d by the Great Lakes
Transit Corporation, In 1916 this carrier handled almost 700
thousand tons less than six railroad-owned lines handled in 1911, and
in 1925 it transported but slightly more than 50 per cent of that
handled in 1916, with a lesser amount in 1931. At this point the
amounts of tonnage carried by this water carrier for the period
1916 through 1910 were assembled to develop the tränd. The data
are shown in Table XLIII. It is evident, so far as this carrier
is concerned, that the volume of package freight declined over the
years shown.
63||17–101
TABLE XI, III
TONNAGE TRANSPORTED BY THE GREAT LAKES :
TRANSIT CORPORATION, 1916 THROUGH 1940
Year Tonnage Year Tonnage
(OOO) (OOO)
1916 2,573 - 1929 l, 589
1917 2, 339 1930 1,249
1913 1,193 1931 931
1919 l, 106 1932 396
1920 1, 752 1933 912
! 1921 l,092 1934 735
1922 1,167 1935 976
1923 1,920 1936 1,036
1924 l,573 1937 912
1925 l, 532 1933 &ll!
1926 l, 762 1939 965
1927 1,620 1940 927
1928 1,691
it 1, Witness Thomas.
SOURCE: Exhibi
I. C. C. Docket W-15]+,
Character of Traffic
*mºnºsº
Table XLIV shows the tonnage of these carriers by commo-
dity groups.
TABLE XI, IV
TONNAGE EY PRINCIPAL COMODITY GROUPS,
1916, 1925, 1934 AND 1910
1916 1925 1934 1940
Tons Tons Tons Tons
(OOO) (000) (OOO) (000)
Products of Agriculture 2,239 1,336 641 7||7
Animals and Products . . 29 53 107 ll!?
Products of Mines . . . . . 156 63 (1.7 32
Products of Forests . . . 66 26 l;5 76
Manufactures and
Miscellaneous . . . . . . . lily6 766 364 36||
L. C. L. Freight . . . . . . . . . 287 º 1Ol Y 57
2, 2.49 l, l;75 1,923

Total . . . . . . . . . . . . . . . 3, 223
63 F-102
The tonnage of the products of agriculture, which amounted
to more than two million tons in 1916, declined to slightly in
excess of 700 thousand tons in 1940. A large part of this traffic
moved in bulk and cannot be considered as jackage–freight traffic.
There is no way to separate the revenues and expenses, particularly
the latter, in the handling of this traffic, therefore this traf-
fic is. shown in the total tonnage transported by these carriers.
The volume of products of mines and the less-than-Carload
traffic likewise decreased in 1940 as compared with 1916. On the
other hand, there was an increase in the tonnage of animals and
products and of products of forests. Tho largest increase in 1940
as compared with 1916 was in the tonnage of the manufactures and
miscellaneous.
* As in the case of the transportation on the Atlantic and
Gulf coasts much of the tonnage transported by the principal car-
riers was carried by them only part of the distance from origin.
to destination. Stat od. differently, a large portion of traffic
either originated or torminated, or both, at points located on the _*
railroads, and moved under joint arrangements of the two modes of
transort. The distribution of the traffic of four principal car-
riers as between joint rail and water and other traffic (port-to-
port) is shown in Table XIV. The domestic package freight ton–
nage on the Great Lakes (see table XXXIII) for 1940 was 2,426,000
tons, and these carriers transported 1,923,000 tons. So it can be
said that the larger portion was handled by theso carriers. Assum-
ing that a small portion of the difference between the two amounts
also was joint rail and water traffic, the result would be that at
least 50 per cent of the domestic package freight tonnage trans-
6347-103.
ported on the Great Lakes originated or terminated, or both, with
the railroads, t
TABLE XLV
JOINT RAIL AND WATER, AND ALL OTHER, TRAFFIC
AND REVENUE OF FOUR PRINCIPAL CARRIERS, 1940
Number of Tons *—r—- Freight Revenue
Joint ~r- Joint
rail rail
and . All and All
Water G ther Water other
traffic traffic Total traffic traffic Total
(OOO) (OOO) (Ö00} . (000) (000) pºd (000)
Detroit &
Cleveland $
Navigation t
Co. . . . . . . . . . He 398 |||O $ 30 $1,607 $1,637
Great Lakes ;
Transit Corp. 75l. l/6 927 2,123 l,007 3, 1135
Minnesota—
Atlantic Transit A
Company . . . . . 269 27 296 l, 124 193 l, 517
Canada Atlantic t
Transit, Cos Of
U. S. . . . . . . . . 172 39 26l. ---, 332 56 338
Total .... 1, 234 690 l, 92+ 3,964 2,363 6, 327
Per cent of
Total tonnage 64. l 35.9 100.0
Per cent of
Total revenue. , 53.1 Hl.9 100.0
Revenue
per ton . . . . . . - $3.2l $4.15 $3.55
In the case of these carriers only 35.9 per cent was traffic
that might be called port-to-port of all-water traffic from which
they received 41.9 per cent of their freight revenue. On this
traffic the revenue per ton amounted to $4.15.
63.7-10,
Principal Commodities
During whe four years 1916, 1925, 1934 and 1910, flour and
other mill products were the principal commodities in the products
of agriculture commodity group. The animals and products' tonnage
consisted chiefly of butter, cheese and wool. The largest number
of commodities were in the manufactures and miscellaneous commo-
dity group. As that group is the most important from the com-
petitive angle, the principal commodities transported in the four
\
years have been shown in Table XLVI.
TABLE xIVI
PRINCIPAL COMMODITIES OF THE MANUFACTURES AND
MISCELLANEOUS GROUP, 1916, 1925, 1931 AND 1910
Commodity 1916, 1925, 1934, 1910
ºr (000) (900) (900). (000)

Petroleum oils refined and
all other gasolines • . . . . . . . . 3 2i. 7 Ǻ
Sugar (beet or cane) ......... . 52 (1) 39 75 HL
Iron and steel articles . . . . . . . 30 l 5|| L37
Automobiles (Passenger) . . . . . . . (2) 21 ºn-yº 91 24lf
Canned food products . . . . . . . . . . º-e 116 l!2 57
Automobiles and autotrucks 2^
Ko D. and parts, N. O. S. . . . . . . ' tº 34 16 12
Machinery and boilers . . . . . . . . . 36 9 * 3
Cement, brick and lime . . . . . . . . H.3 *g ** *
Other merchandise . . . . . . . . . . . . . • 231. ºp tºº
Other commodities . . . . . . . . . . . . • 23 l:3 1OO 197
Manufactures and Miscellaneous,
N-9. S. e. . . . . . . . . . . . . . . . . . . . . 226 _l(ſ l/9 173
Total . . . . . . . . . . . . . . . . l;9 766 56|| 36||

(1) Includes molasses and Syrupse
(2) Vehicles, wagons and autos and parts, N.O.S.
Ports
Although there are a large number of ports on the Great Lakes
only a few enjoyed the major portion of the package freight traffic.
Table XLVII shows the amounts loaded and unloaded at the ports in
1940.
63||||7-105
TABLE XLVII
REVENUE TONIAGE OF PACKAGE CARRIERS BY PORTS, 19101/
Loaded Unloaded
|PORT Tons Tons
*------ (OOO) (OOO) –
Buffalo, N.Y. . . . . . . . . . . . . . . 23); 905
Chicago, Ill. . . . . . . . . . . . . . . 313 L1 O
Cleveland, Ohio . . . . . . . . . . . . 2OO 75
Detroit, Miche . . . . . . . . . . . . . 251 287
Duluth, Minne s O 3 º' o o e e o e º O 6 tº 5ll 199
ºrie, Pa. . . . . . . . . . . . . . . . . . . 13 55 -
Green Bay, Wis. . . . . . . . . . . . . º l;
Houéhton, Mich. . . . . . . . . . . . . l3 t 3
Mackinac Island, Mich. . . . . . §: §§
Milwaukee, Wis. .......... . . 193 77
Sault Ste. Marie, Mich. . . . . Sk 2
Depot Harbor, Ontario . . . . . . . . ) 39 33
Midland, Ontario . . . . . . . . . . . § 89
Windsor, Ontario . . . . . . . . . . . 17 -
Total f tº e º 'º e s ∈ P tº e > 0 tº tº & O sº 1,339 l, 389
l/ Does not include 34,000 tons of passenger automobiles.
Less than 1,000 tons,
As will be noted from the above table the tonnage is greatly
unbalanced. In the case of the tonnage transported to and from
Buffalo the outbound tonnage was less than one-third of the inbound,
Of the principal ports Detroit had the closest balanced movement.
Transportation Property and Equipment
These lines did much in the decade 1916–1925 to improve their
facilities, as shown by Table XLVIII, The total investment in 1925 was
50 per cent greater than in 1916. Although by the end of 1934 the
investment increased slightly, there was a de crease by the end of
1940. The largest increase was made by the Detroit & Cleveland
Navigation Co. As about 50 per cent of this Company's operating
revenues were derived from passenger traffic there is some reason to
feel that the increase was for the improvement of the handling of
'63|||}|T-106
that traffic. On the other hand, the Great Lakes Transit
Corporation's passenger revenue in 1934 was but 12 per cent of the
total, and therefore it may be assumed its increase in investment was
for the improvement of its freight facilities. In 1916 this car-
rier started its operations with an investment of $5.6 million.
The average for the decade 1905–1914, when the lake lines were
operated by the railroads, was $11.5 million.
TABLE XLVIII
INVESTIENT IN TRANSPORTATION PROPERTY
AND EQUIPMENT OF PRINCIPAL LAKE LINES,
Af 1916, 1925, 1934 AMD 1910
Carrier 1916 1925 1934 1940
(OOO) (OOO) (000) (OOO)
Great Lakes $ $ $ $
Transit Corp. . . . . . . . . . . . 5, 663 6,975 7, 209 l!,235
Detroit & Cleveland
Navigation Co. . . . . . . . . . º 6,501 12, 179 12, 11.7 l2,957
Cleveland & Buffalo
Transit Co. . . . . . . . . . . . * w 3, Hill 3,993 H,638 (1)
Canada Atlantic
Transit Co. of U. S. . . . . . 399 l:00 549 Bl,7
Minnesota-Atlantic
Transit Co. . . . . . . . . . . . . . (l) &lp2 57 112
Total . . . . . . . . . . * * e e s e © $16,005 T52,591, 32,570 $17,901

(l) Not in operation
According to the Board of Investigation and Researchiºl the
Great Lakes fleet , in 1940 consisted of 317 vessels, of which 757
were cargo carriers. Of these 715 carried oulk freight and 42 were
engaged primarily in the movement of package freight. From the
annual reports filed by four lake lines in 1940 it was developed
that 50 vessels were operated in this trade. These vessels had a
lºſ Comparison of Rail, Kotor, and Water Carrier Costs, 1944.
net tonnage ranging from 1128 to 3982 tons.15/A very important factor
in the usefulness and efficiency of any merchant marine is the age
of the vessels. A check of the 30 vessels resulted in the follow-
ing:
*º- Built Numb ºr of Age
| Ships Years
1888–1900 l, , lil to 52
1901-1910 15 30 to 39
1911–1920 8 21 to 29
1921-1924 3 16 to 19
There appears to have been no recently constructed vessels in
operation in 1940. Two vessels constructed in 1921 were of the com—
bination freight and passenger type employed by the Detroit & Cleve-
land Navigation Co. Thus, from the tabulation it will be noted that
90 per cent of the vessels were 20 years of age or older and sub-
stantiates the fact often stated, that the Great Lakes package freight
fleet was made up of obsolete ships.
Financial Results
The package freight carriers enjoyed a gººd year in 1916.
Three of the four lines had operating ratios ranging from 65.7 to
79.5, and a net income of $2,354,000. Of this amount $1,871,000
was paid out in dividends, the Great Lakes Transit Corporation
distributing $19,000 and the Detroit & Cleveland Navigation Coe
$1,352,000. The Canada Atiantic Transit Co. of United States did
not fare so well. Its operating ratio was 105.2.
15/ Net tonnage.- The tonnage of a ship remaining after certain
deductions have been made from the gross tonnage expressed
in tons of 100 cubic feet. Among the deductions are; crew
Spaces, master's cabin, navigation spaces, donkey engine and
boiler, shaft trunks, allowances for propeller power, and
other items.
63,017-108
In 1925, while the operating revenues of the group increased
over those in 1916, the operating expenses increased to a greater
extent resulting in larger operating ratios and a smaller net in—
come. In that year the same three carriers earned $1,493,000 and
distributed $776,000 in dividends. In 1934 and 1910 none of the
lines earned any income, they all showed a deficit as a result of
their operations.
Table XLIX shows the income account of each of the lines in
condensed form.
6317-109
TABLE XLIX
CONI) ENSED INCOME ACCOUNT OF THE PRINCIPAL LAKE LINES
FOR YEARS 1916, 1925, 1934 AND 1940
1916 1925 1934 1940
(OOO) (OCO) (OOO) (OOO)
GREAT LAKES TRANSIT CORP. T
Operating revenues . . . . . . . $ 4,824 5,211 $ 3,057 $ 3, 168
Operating expenses . . . . . . . 3, 171 H.53% 3.48% 3, 118
Net revenue . . . . . . . . . . . . . . i.655 875 d Tai 2O
Net income . . . . . . . . . . . . . . . 1,497 1196 d 507 d 71
Operating ratio (per cent) 65.7 87. 1 114.0 99.4
Dividends • . . . . . . . . . . • 2 c e w H9)4 193 $ 126 O
CLEVELAND & BUFFAIO
TRANSIT CO .
Operating revenues . . . . . . . 346 l, 533 77), (1)
Operating expenses . . . . . . . 673 l, 313 362
Net revenue . . . . . . . . . . . . . . 173 220 d 33
Net income • . . . . . . . . . . . . . . 107. 1O7 d 224
Operating ratio (per cent) 79.5 85.6 lll. H.
Dividends . . . . . . . . . . . . . . . . 25 lOO O
IXETROIT & CIEVELAND
NAWIGATION CO .
Operating revenues • . . . . . . 2,700 l, 319 2,000 3, 196
Operating expenses . . . . . . . i. 937. 3, 207 2,532 3, 168
Net revenue . . . . . . . . . . . . . . Tſ63 III: a $32 23
Net income . . . . . . . . . . . . . . . 750 390 d 723 d 150
Operating ratio (per cent) 7 le 7 74.3 129. l 99, l
Dividends . . . . . . . . . . . . . . . . ] , 352 H33 O O
CANADA ATLANTIC TRANSIT CO .
OF U.S a
Operating revenues . . . . . . . 326 390 231. 335
Operating expenses . . . . . . 3+3 ligh 313 H53
Net revenue . . . . . . . . . . . . . . 17 TOII d 55 d TC3
Net income . . . . . . . . . . . . . . . H6 O O d 33
Operating ratio (per cent) 105.2 126.7 Lll.H. 117.7
Dividends . . . . . . . . . . . . . . . . O O O O
MINNESOTA-ATLANTIC TRANSIT CO .
Operating revenues . . . . . . © (l) 936 l,034 1,432
Operating expenses . . . . . . . 1,144 l,023 1,450
Net revenue . . . . . . . . . . . . Q & 2O3 —g a 13
Net income . . . . . . . . . . . . . . . 342 d 7l d 3O
Operating ratio (per cent) 12242 99.4 10l. 3
Dividends • . . . . . . . . . . . . . . . O O O
TOTAL
Operating revenues . . . . . . . . 3,696 12,339 7,146 3, 131
Operating expenses . . . . . . . 6,124 10,696 3,269 3,219
Net revenue . . . . . . . . . . . . . . 2,572 l,693 d l, 123 d 33
Net income . . . . . . . . . . . . . . . 2,303 l, lºl d 1,529 d 339
Operating ratio (per cent) 70. H. 36. 3 llº. 7 100.4
Dividends . . . . . . . . . . . . . . . . 1,871 776 126 O
(l)
Not in operation
631);7–lio
Some additional data were assembled dealing with the operat— .
ing revenues and expenses of the Great Lakes Transit Corporation
and are shown in Table L. The net revenue in 1916 amounting to
$1,727,000 was the highest and in no year during the balance of the
period, except in 1923, did it exceed $1 millions In most of the
years it was less than $500,000. On the other hand, the spaces
were greater in most of the years than in 1916.
TABLE I
OPERATING REVENUES AND EXPENSES OF THE GREAT
LAKES TRANSIT CORPORATION, 1916 THROUGH 1940
I. C. C. Docket
No. W-154, Great Lakes Transit
Corporation Applications.
Freight Operating Total Freight
Year Revenue Expense Profit
(OOO) (OOO) (OOO) F-
1916 $ 4,469 $ 2,742 $ 1,727
1917 l, 246 3,681 365
1918 3, 637 2,943 694
1919 3,059 2,415 6||l,
1920 11,513 3,384 659
1921 3,954 3, 135 319
1922 H, 732 3,760 972
1923 5,670 11,659 l, Oll
1924 H., H2] 4,150 271
1925 l,023 3, 713 31O
1926 l, 510 H., 101 l;09
1927 l,674 H,301 373
1923 H., 328 l, 538 240
1929 !,6111 H., 1157 134
1930 3,934 3,300 1314
1931 3,464 3,002 162
1932 2,995 2,572 H23
1933 3, 15l 2, 719 l{32
1934 2,515 2, 373 d 353
1935 3, 1145 3,124 21.
1936 3, 182 3, 588 d H06
1937 2,661 3,038 d 377
1933 2, 752 2,892 d IHO
1939 3, 277 3,291 d 17
1940 3, 132 5, lll 2].
SOURCE: Exhibit l, Witness Thomas.
* * 634-III
"The Great Lakes Company was organized in March 1916 to take
over vessels on the Lakes in which railroad interests of an illegal
nature (because of the Panama Canal Act of 1912) were found to
existe See take Line Application Under Panama Canal Act, 33 T.G. C.
699. Initially it acquired 35 ships, including 3 passenger vessels,
but passenger service was discontinued after the 1936 season.
The railroad boat lines also operatod in both lakes (Michigan
and Superior). The successor company's experience with its Lake
Michigan division has not beon fortunate. It withdrew from this
service in 1918, but with an increase in rates resumed operation in
Lake Michigan in 1922. Two American companies later entered the
trade without success, one withdrawing in 1923 and the other in
1927. Two Canadian lines likewise have not prospered, their losses
being sustained ultimately by their Canadian rail owners. In Lake
Superior, the Great Lakes company operatod free of competition in
through service between the upper and lower lake ports from 1916 to
the inception of the Minnesota, company. " (Minnesota-Atlantic Transit
Company Control, Finance Docket No. 13373, 250 I.C.C. 35, 36).
With this bit of background a comparison has been made of this
company's financial condition existing at the end of the years 1916
and 1940. These data are shown in Table LI.
f 63,17-112
TABLE LI T-
FINANCIAL CONDITION OF THE GREAT LAKES TRA SIT CORPORATION
AS OF DECEMBER 31, 1916 AND 1940
1916 r— 1940
(OOO) (OOO)
Current Assets: * \
Cash . . . . . . . . . . . . . . . . . . . . . ... $ 978 $ 50l.
Other assets . . . . . . © C & E 6 g º º sº 269 132
-- 1,27 836
Less liabilities . . . . . . . . . . . L83 10l.
TOTAL . . . . . . . . . . . . . . . . . . . . . . 1,064 535
Transportation property
and equipment . . . . . . . . . . . . 5,667 H,235
Accrued depreciation . . . . . . . 10); ; 3, ll0
Net book value ............. 5,563 l, 175
Less funded debt . . . . . . . . . . . 2,758 O
Yet equity . . . . . . . . . . . . . . . . . 2,305 l,l/5
Other investments and * A
intangible assets . . . . . . . . 750 750
Deferred charges less *
deferred Credits . . . . . . . . . Hl d. 130
Net worth . . . . . . . . . . . . . . . . . . II, 660 \ 2,280
Represented by
Capital stock . . . . . . . . . . . 3,500 l,831
Surplus . . . . . . . . . tº º c s s a s 1,160 lilig
II.650 2,230
There was a decided change in the conditions of this company
during this period. The most favora ºle was the elimination of its
funded debt. At the beginning of its operations it amounted to
$2.75 million. The net book value of its property and equipment was
greatly reduced. At the end of 1910 it was slightly in excess of
º 20 per cent of the 1916 figure. The current assets and the net worth
of this carrier were also reduced. The latter was $4.66 million in
1916 as compared with $2.28 million in 1940. #
While the above deals with a 25-year period, at this point it
may be pertinent to examine the results of the last five years of
the period, or 1936 through 1940. This carrier's operations were
ºri-113
divided into two parts, Lake Superior and Lake Michigan Services.
To show the results of operations on both lakes the revenues and - |
expenses have been separated and are shown below, with the net in-
.*
come from both operations.
IAKE SUPERIOR
1936 1937 1938 1939 1940
f (OOO) (000) (OOO) (OOO) (OOO)

Revenues . . . . . . . . . . $ 1,597 $ 1,632 $ 1,452 $ 1,814 $ 1,799
Expenses . . . . . . . . . . l,627 l. 678 la 30+ 1.5%l 1,659
a 35 a 5 III.g 273 1140
A
LAYE MICHIGAN
Revenues . . . . . . . . . . l, 53.1 1, 210 l, 500 1,163 l, 333
Expenses . . . . . . . . . * l,961 1,240 l,587 l. I53 lºë
d 377 d 330 d 237 d 290 d 119
Net income . . . . . . . { d 509 d l39 d 217 d 149 d 71
SOURCE: Minnesota—Atlantic Transit Company Control, º
Finance Docket l'o. 13378, 250 I. C. C. 85, 87.
Thus, it will be observed that for the entire five-year period
this carrier suffered a loss each year. Although there was some net
revenue resulting from the Lake Superior operations. those on Lake
Michigan showed a deficit for each year.
Before going to the period following the enactment of the
Transportation Act of 1940, a review has been made of the operations
of all carriers operating in this trade reporting to the Interstate
Commerce Commission. These data include ferry companies as well as
regular freight and passenger carriers. Table I, II shows a few of
the items contained in the reports. The chief purpose of this table
is to show the net income of all lake operators as a group.
6347–11!!
TABLE LII
SELECTED STATISTICS OF PACKAGE FREIGHT CARRIERS
ON THE GREAT LAKES, 1929 THROUGH 1940
Total Total
Year Number Revenue Passen- Operat- Operat- Net
- of tons Freight ger ing ing In-
carriers carried revenue revenue revenue expenses Come
(OOO) (000) (000) (000) (000) (000)

1929 27 1,941; $ 15,550 $ 7,533 $ 23,866 $ 22,023 $ 897
1930 29 1,267 12,345 5,720 13,926 19,015 d 1,169
1931 23. l,632 11,547 l.,251 16,476 16,391 d 1,006
1932 26 3,695 9,079 2,190 ; 12,755 d 1,681;
193 26 5,243 10,270 2,970 13,742 lj, 335 d 310
1934 24 2,950 7,302 2,979 11,513 12,722 d 1,767
1935 22 3,123 10,013 2,851 13,653 13,990 d 1,077
1936 21. 3,730 10,510 3,794 15, 299 15,515 d 1,080
1937 21. 1,135 10,083 3,574 14,914 14,739 d. 392
1933 22 3,233 7,836 2,332 11, 375 12, 208 d. 1,173
; 24 3,332 9,248 2,604 ; 13, 301 d 7.46
1940 21. li,169 10,149 3,001 11,142 13,904 d 365
SOURCE: Board of Investigation and Research, Comparison of
Rail, Motor and Water Carrier. Costs, 1944, Senate
Document No. 84 ºth Congress, 1st Session.
From the above it will be observed that only in 1929 iid this
group of carriers have a net income. For the period 1930 through
1940 they suffered a loss each year with the largest deficit being
in 1934. It is also interesting to note that had there been no de-
cline in passenger revenues the operations during all these years
would have been profitable.
Taxes.
The taxes of the three principal lake carriers in 1940 amounted
to $177,583 or 2, 3 per cent of their operating revenues. In Table
IIII the distribution as between United States Government and the
State and local taxes is shown,
63||17–115
TABLE LIII –
FEDERAL, AND STATE AND LOCAL TAXES OF THE DETROIT &
CLEVELAND NAVIGATION CO., GREAT LAKES TRANSIT CORP.
AND THE MINNESOTA-ATLANTIC TRANSIT CO. FOR 1940.
r—
| State and local Taxes
Accrued on floating equipment . . . . . . . . ... • * * * e tº sº e º º q § 3,105
Accrued on other physical property . . . . . . . . . . . . . . . 60,222
Fayroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 * * 59,1416
All other accruals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . © tº 6,900 129,645
Capital Stock . . . . . . . . . * * * * * * * * * * e o e s e e s e s e º e e s e e . $ 3,103
Unemployment . . . . . . . . . . . . . . Q e s is e º is e º 'º e o e o º is a * @ e e º a H., 193
Social Security . . . . . . . . . . . . . . • e º e s sº e s is e e s t e ºs e e o e * 37,645
Other taxes . . . . . . . . . tº º e º e º e º ſº tº º º º Aº e º º e º ºs e º e s tº e e s º l,732 16,938
Grand Total . . . . . . . . . . . . . . . . . . . . . . . Q º ºs e º e º & § 177, 583
Here, as on other waterways, the carriers pay but little taxes
on floating equipment. The amount shown above was paid by the Detroit
& Cleveland Navigation Co., and the other carriers paid none. The
amount that accrued on other physical property was the largest with
the payroll taxes ranking next. The total of the State and local
taxes greatly exceeded the United States Government taxes. In the
latter group the largest item was the Social Security taxes.
Subsequent to 1940
As in the case of water transportation on the Atlantic and
Gulf coast s the Inter state Commerce Commission had limited juris—
diction over water carriers prior to the passage of the Transporta-
tion Act of 1940. The subject of regulation has been treated in
the report on Atlantic and Gulf Coastwise Transportation and will
not be repeated here, as its history is the same.
63||||I-116
The Water carriers filed their annual reports with the
Interstate Commerce Commission beginning with 1941. Among then
are a number of small are: which transported small amounts of traf-
fic. These carriers were not included in the discussion because of
the incompleteness of statistics; and further, such data, as are
available would not add to the value of the report.
The Erie & St. Lawrence Corporation which has authority to
operate on the Lakes and also on the New York State Barge Canal was
not included for the reason that it was shown in the Barge Canal
report,
In ighl there were three principal regulated package freight
carriers in operation, the Detroit & Cleveland Navigation Co., the
Great Lakes Transit Corporation and the Minnesota-Atlantic Transit
Co. In 1942 the latter line was consolidated with the Great Lakes
Transit Corporation.
Commencing with June, 1942, the War Shipping Administration
took title to all of the vessels of the Great Lakes Transit Corpora-
tion. During 1943 its services for account of the War Shipping.
Administration were in the grain trº.de only, on a charter basis, and
in 1944 the package freight was handled between Buffalo and Detroit
from May 1 to June 30 only, whenever space was available on grain
vessels, and the bulk freight was handled from April 15 to October 31.
This latter trade was confined to grain transported on a charter basis.
There were several lines, although holding operating authori-
ties from the Interstate Commerce Commission to transport commodi-
ties generally, which confined their activities almost wholly to the
transportation of bulk or exempt traffic, It was felt that in view
63ini-117
of these operations the more appropriate place for the discussion
would be in the section on private and exempt carriers, therefore,
these lines have been included in that section.
Volume of Tonnage -
The total amount of tonnage handled by package freight car-
riers is shown in Table LIV.
TABLE LIV
TONNAGE OF PACKAGE FRIEGHT LINES, 1941 THROUGH 1944
Line 1941 1942 1943 1944
(000) (900) (900) (900)

Detroit & Cleveland Navigation Co. 483 l;5 219 267
Great Lakes Transit Corp. . . . . . . . . 960 735 (l) 37 (2) l;63
Minnesota-Atlantic Transit Co. . . . 501 (3) (3) (3)
Total . . . . . . . . . . . . . . . . . . . . . . 1,744. 9.40 306 750
(l) Bulk traffic.
(2) Major portion consist of bulk traffic
(3) Not in operation. Consolidated with Great Lakes
Transit Corp.
There is very little comment that can be made dealing with
the operations of package freight carriers during the War. There
was little package freight moving. After 1942 the package freight
was transported almost entirely by the Detroit & Cleveland Naviga-
tion Co.
In 1941 the traffic of the above carriers consisted of 791
thousand tons of products of agriculture, principally wheat, flour
and mill products, N.O. S. Practically all was transported by the
Great Lakes Transit Corp. and Minnesota-Atlantic Transit Co. In
the animals and products commodity group butter and wool were the
principal commodities. The products of mines contributed 10, 905
tons, and 41,823 tons of products of forests were carried. There
63hliſi–ll3
were, at least, 50 commodities in the manufactures and miscel-
laneous commodity group transported in 1941. The principal ones
were automobiles, canned food products, N. O. S., sugar, iron and
steel, lead , and zinc, beverages and soap and washing compound. The
tonnage of this commodity group amounted to 673 thousand tons and
there were 108, 705 tons of L. C. L. freight carried.
Financial Results
The investment in transportation property and equipment of the
Detroit & Cleveland Navigation Co. in 1911 was slightly in excess
of $13 million and at the end of 1944 it was $9.7 million. For the
period 1941 through 1911, this carrier earned a net income of
$299,000. The Great Lakes Transit Corporation began 1911 with an
investment of $14,364,000. In 1945 it sold its remaining ships and
at the end of that year this carrier was not in operation and had
no vessels or terminal property. Its operations in 1911 resulted
in a deficit of $264,000. In 1912 and 1913 its deficit was $201,000
and $353,000, respectively, and it earned e net incorne of $38,000
in 1941.
Automobile Traffic
In a class by itself is the automobil.3 traffic. It is trans-
ported by package-freight carriers, bulkers and vessels specially
built for it. This traffic has increased in volume in * two de-
cades ending 1941. The war interrupted the manufacture and conse-
quently the movement.
According to the statistics compiled by the Corps of Engineers,
U. S. Army, there was shipped from ports on the Great Lakes and Detroit.
63||17–119
91 thousana tons in 1920 and cliently more than 161 thousand tons in 1935.
The increase continued in later years, as shown in the tºwiation below
of the automobiles carried by the Detroit & Cleveland Navigation Co.,
Great Lakes transit Corporation, Winnesota-Atlantic Transit Co., Nicholson
Universal Steamship Co. and the Western Transit Co. during 1938, 1939,
and 1940.
TABLE TW
TOTAL NUMBER OF AUTOMOBILES CARRIED BY TAKE LINES
OPERATING FROM DETROIT TO ALL PORTS FOR THE YEARS
1933, 1939 AND 1940.
Ports 1938 1939 1940
Buffalo, N.Y. ................... 97.75l. 114,933 145,952
Cleveland, Ohio ſº tº 6 C & Q º dº º tº dº ſº e º 'º º sº 16,673 50,243 76,637
Duluth, Minn. ................... 16,973 21,067 26,640
Frie, Pa. . . . . . . . . . . . . . . . . . . . . . . . . .652 "925 1,361
Green Bay, Wis. © dº e º 'º e º e º e º e e º 'º e º so , is 362 2,315 2,832
Houéhton, Mich. ................. '68 90 121
Milwaukee, Wis. ................. 6,336 8,244 10,32%
Total . . . . . . . . . . . . . . . . . . . ... .140,315 197,872 262,967
SOURCE: Exhibit 2 Dockets 23673 and W-732,
Based upon an average of three thousand pounds per automobile the
tonnage was
- Year Tons
/ *
1938 ...................210,423
1939 . . . . . . . . . . . . . . . . . . .296,806
1940 . . . . . . . . . . . . . . . . . . .394,451
This traffic was transported py four carriers and a brief des—
cription of the facilities follows. The Great Lokes Transit; cºor-
tion operated from Detroit, with vessels having overall carrying capa-
city of 783 automobiles per trip. The Minnesota-Atlantic Transit
Co. could carry from 290 to 390 cars per trip and the Detroit a
Cîeveland Navigation Co. had carrying capacity around 1,775 cars per
trip. The Nicholson Universal Steamship Co. operated: ll vessels and
one barge, all being used in the transportation of automobiles. Four
6317-120
of these vessels were specifically and exclusively designed for the
handling of automobiles. The capacity of these were l,630 automobiles
per trip. The remaining vessels and the one barge could carry 655
automobiles. The fleet had an overall carrying capacity per trip of
2,285 automobiles.
As the Nicholson Universal Steamship Company transported, about
50 per cent of the above tonnage, a brief analysis of its operations,
and the results, has been made,
In 1940, this carrier transported automobiles in regular route
service between Detroit, Michigan, Duluth, Minnesota, clevelena, Ohio,
Milwaukee, Wisconsin and Buffalo, New York. Its secondary activities
consisted in maintaining a so-called bulker fleet transporting bulk
commodities; such as coal, or e, etc. , principaliy eastbound, the cargo
facilities in the west bound operation being utilized by the auto-
- /
mobiles, the carriage of which constituted its principal transporta-
tion activity. It did not maintain or operate any schedule sailings.
Because it carried neither package freight nor passengers, its ves—
sels were dispatches to such ports and with such frequency as the
needs of the trade required.
Terminals were maintained by this company at the above mentioned
ports, all equipped with the Latest designed material and equipment
to insure the proper and expºsitious handling of automobiles. The over-
all investment of the vessels, terminals and other facilities used in
automobile transportation was in excess of $2,750,000.
As stated above, the Nicholson Universal Steamship Co. transported
50 per cent of the automobiles in the period 1938 to 1940, inclusive.
Data have been assembled as to the ports of destination of these auto-
mobiles shipped from Detroit, and shown in Table LVI.
631ſlf-121
TABLE LVI
TOTAL NUMBER OF AUTOMOBILES HANDLED BY THE
NICHOLSOE UNIVERSAL STEAMSHIP COMPANY FROM
DETROIT, MICHIGAN, TO ALL PORTS, 1938, 1939
AND 1940.
Ports 1938 1939 1940
Buffalo, N.Y. . . . . . . . . . 51,499 55,1]il 66,683
Cleveland, Ohio . . . . . . . 3,91.3 26,692 50,846
Duluth, Minn . . . . . . . . . . 3,923 l,083 8,910
Green Bay, Wis . . . . . . . . l,862 2,315 2,832
Milwaukee, Wis. . . . . . . . lſ, Hlſo 6,232 6,542
Total . . . . . . . . . . . . . 70,667 94,471 135,813
SOURCE: Exhibit 1 Dockets 28678 and W-732.
The normal period of lake navigation contemplates 252 days Of
open navigation. In 1940 one combination automobile and bulk and
four automobile vessels were tied up at the docks for 161 boat days
because of i madequate automobile tonnage available for transportation
on the lakes. In other words, throughout the period of open naviga–
tion there were on an average two of these vessels tied up each operat-
ing day of the season. The Hól boat days does not include lay-up time
for minor repairs and relat ad matters. Because of the inadequacy Of
the automobile tonnage four of its vessels formerly used exclusively in
€
its Westbound automobile trade as automobile carriers were converted
to combination automobile and bulk carriers ,
With the sole exception of 1937, the automobile operations of the
Nicholson Universal Steamship Co. consistently reflected annual losses
throughout the period l330 to 1940. The greatest single cause for
these financial losses was the available surplus of transportation
facilities for the quantity of automobiles transported on the Lakes.
The costs of maintaining and operating equipment varies very slightly,
if at all, when the boats are dispatched loaded to capacity, or with
&mi-ize
light loads. Another reason, and an important one, for the financial
losses was the increased costs of operations and practically no in-
creases in the freight rates,
During 1911 this carrier transported 605 tons of products of
agriculture, 661 tons of products of mines and 307 thousand tons of
manufactures and miscellaneous. Of the latter 262, 7ll tons were automo-
biles. The results of operations in 1941 are shown on page 137 and cover
its entire operations. However, as this discussion deals chiefly with
automobiles some date were assembled on the costs of transportation
of automobiles.
A review of several items of the operation of the steamer
Woodruff, an automobile carrier, in May, 1938 and May, 1911, are
shown below:
Expenses 1938 1941 Increase
Wages of crew. . . . . . . . . . $4,639 $5,185 10.5%
Food. . . . . . . . . . . q e e º e º e º s 385 696 16.1
Fuel . . . . . . . . * @ º e º e º e s e Q ... li., 839 5, 170 6. li.
Stores. . . . . . . . . . . . . . • . . . 233 312 31.8 /
Insurance. . . . . . . . . . . . . . . 2,516 3, 280 23.3 /
Repairs. . . . . . . . . . . . . . . . . 1, 877 2, 238 16.2
The increases were not confined to ship operations. There were
many items that showed an increase in May, 1941, as compared with
May, 1938. Only a few are shown below.
63rºl 23
Terminal Operations: 1938 - 1941. Increase
Salaries of Superinten- gº -
** dents, Agents, etc. ... $6,060 $8,831 31.4%
Agency office expense s. 1,369 1,707 19s 9
Stevedore and wharf
labor (cents per º
hour) o e º e < * * * * * * * * * * * 72 93 -- 7.7
Claims .................. • $3,061 $5,821 l!?.11.
Administration Expenses:
Salaries - General
office • . . . . . . . . . . . . . . 2,158 3,033 30.1
Salaries - Clerks . . . . . , 1,700 2, 27.4 20, 9
Stationery and supplies. 539 1,052 !!!, 1
Other administrative
expenses (legal) ..... 1,116 2,029 55, 0.
Traffic Dept. - Super- \
intendence ........... 1,264 2,144 41.1
Traffic Dept. - Outside
Agencies © tº a dº e o e a e o 'º e & 12,342 26,850 54.1
The actual out-of-pocket cost to this carrier for the trans-
{
portation of automobiles from Detroit to Duluth on automobile car-
riers was $21.48 per automobile representing the average weighted
cost resulting from the handling of 5,027 automobiles from the
opening of navigation to August 1, 1941, *
The actual out-of-pocket cost on both automobiles and bulk car-
riers was $19,23 per automobile resulting from the carriage of 5,877
automobiles. When a proper allocation of taxes, depreciation, return
on investment, interest, officers' salaries, and general expenses is
made, there is an additional cost factor of $6, 25 per automobi:c
making the cost $27.75 and $25,113 per automobiles
From present reports the operating expenses have increased
since 1941,
" . - 63||17–124
SECTION IV * ar - * |
OPERATIONS OF PRIVATE AND EXEMPT CARRIERs 16/ w .**
These carriers confined their activities to the transportation
of large quantities of commodities moving in bulk. The amount of
this type of transportation on this waterway is large. A review of .
the bulk commodity section of this report will reveal the large
amounts transported each year. These large movements each year pro-
vide the possibilities for operations on a large scale. Wessels
suitable for the transportation of this traffic are available to
these operators and terminals are constructed in direct relation-r
Ships with the vessel operations. As in the case of this form of
transportation on other waterways, the available data are limited.
In the following discussion some data on facilities, performances
and accomplishments are given in order to construct a background for
this form of transportation.
The development of Shipping tonnage has been covered earlier in
the report. However, it should be stated that just prior to the
war one of the large steamship companies constructed five vessels
which have become commonly called super-freighters, and during 1942
and 1913 the United States Maritime Commission built 16 new bulk
carriers for operations on the lakes.
In 1944 all of these new vessels were transporting ore. Their \
presence in the ore fleet was reflected in a new record for a
season's average iron ore cargo of approximately 10,718 tons. lſ/
While this was the average load the larger ships, such as the 16
16/ Any industry or business enterprise which transports its own
products or raw materials in its own vessels, or vessels
operated by it as a necessary function of its business, which
is other than transportation, is engaged in private transpor-
tation. Exempt transportation is the transportation coming
within the exemption provisions of Part III of the Interstate j
Commerce Act a ;
17/ Annual Report Lake Carriers' Association, 1944.
ºur-las
previously mentioned, transported as much as 16,389 gross tons, - Af
and the so-called wer-treaters recorded a load in excess of
13, OOO gross tons. The concentration of ore at wearie docks per-
mits the economic handling and transfer of cargoes. For example,
the total shipments from United States ports amounta to 30.7
million gross tons in a total of 7,519 cargoes. Of this number
only 19 cargoes were partly taken on at one dock and the load com—
pleted at another . The unloading operations are such as to keep
to a minimum the time the ship must stay in port of discharge. A
new lake record for iron ore unloading was established by the
T - Pittsburgh and Conneaut docks at Conneaut, Ohio. During the 24-hour
period beginning with 7:00 A.M. on August 12 the Company's un-
loaders listed a total of 85,994 gross tons of ore from six ships.
An important factor that aids in the economical, as well as profit-
able, operation of ore carriers is the opportunity to secure return
loads. Many of the vessels transporting ore eastbound handle coal
Westbounde g
The next largest tonnage producing commodity was coal. Some
of the United States steamers used in this trade are 617 feet or more
in overall length and are capable of transporting as much as 15,875
tons (in 1943) in one load. During the 1914 season there were 1,131
cargoes with an average load of 8,797 tons, and the largest cargo trans-
ported was 15,489 tons. A new cargo record was established in 1944
by the Canadian steamer Lemoyne, which loaded 18, 116 tons for one
Cargo trip.
As is well known, a vessel earns money for her owner only when
she is moving with cargo. It is generally recognized one of the
637-126 -
most important factors in the cost of operation is the time spent -
in port. Any reduction of this time of loadine or unloading in-
creases the opportunity for additional trips and cargoes. An ex-
ample of the time spent in loading a vessel of coal is taken from
the operations of the above mentioned steamer at the time the re-
cord load was carried. She was loaded at Ashtabula, and the New
York Central's car-dumper amped a total of 13,297.65 tons of cargo
and fuel in six hours and 10 minutes, which time included shifting
the vessel and trimming the cargo.
Wessels used in the coal and ore trade are also suitable for
the transportation of grain. During the early part of the season
these vessels are engaged in the ore trade, and in the late fall
periods, after the ore requirements are fulfilled, the grain trade
affords them cargoes,
The grain movements consist chiefly of six varieties, wheat ,
corn, oats, rye, barley and flax, and in the 1944 season the move-
ment of these commodities amounted to 533,883,803 bushels, or
16,228,380 met tons, and its transportation required 2,647 vessel—
trips.
3. A problem that faces operators on waterways that are not open .
to navigation throughout the year is the use to which vessels may
be put during the closed season. There are some expenses that con-
tinue even when the ships are laid up. Therefore, any revenue re-
ceived during the closed season helps to defray the expenses . On
the Great Lakes at least a part of this problem is solved. During
the winter many cargoes of grain are stored in vessels. In 1944
there were 205 winter-storage cargoes to talling almost 53 million
637-127
bushels. In other words, 205 vessels We'r 6 uses during that winter
for storage purposes.
Some data were assembled by the Board of Investigation ana
Research on the revenue and expense of typical bulker operation on
the Great Lakes and are shown in Table LVII, In its report on the
Comparison of Rail, Motor, and water Carrier Costs (1941) the fol—
lowing appears: }
"Computations of the cost of transporting ore and coal, based .
upon estimates supplied by operators. . . . . The expenses per day in-
clude an allowance for the laid-up expense of each vessel during
the closed season. This expense is distributed among the number of
days the vessel is in active service.
* *- -
f TABLE LVII 63||||7-128 °
REVENUE AND EXPENSE OF TYPICAL BULKER OPERATION
- ON THE GREAT LAKES, lSH2.
Revenue
Average miles Ton and cost
351 (1 way) Revenue Expense Profit, Miles per ton-
* - (OOO) mile
*------ tº Mills
lC),000 tons ore, —s • ,
at 80 cents . . . . . . . . . $ 3,000 $ -- $ -- 8,540 O.936.76
Expense 3–3/11
days, at $960 . . . . . . ** 3,600 **us 8,540 .lp215||
Profit or loss e . . . . *ss-st *** l, l;00 3, 540 • 51522
10,000 tons coal,
at 45 cents . . . . . . . . . l, 500 *** *ºtºmº 8,510. ..52693
Expense li–3/4
days, at: $960 o tº c > * sº º l,560 tº ºmnº 8,540 & .53396
Profit or loss . . . . tº º *** 1/ 60 3,540 #1/.00703
Total revenue . . . . . 12,500 *ºº Cºnsº 17,080 .73135
Total expense . . . . . gº tºº 3,160 ** 17,080 ..]|TW/5
Total profit
or loss . . . . . . . . . . Q *** ** wºme º l, 340 17,080 .25):10
Profit per day . . . . sº tºº ** 5il **** * * *
10,000 tons ores *
at 80 cents . . . . . . . . . 3,000 •-se-se ** 3,5},O .936.76
Expense 7# days wº
at: $960 & O & © tº $ 9 y o 6 & **** 7, 200 • *-* 3, 5/10 . 31.309
Profit . . . . . . . . . . . . **** **** 3OO 3, 540 .09367
Profit per day 2 . . e. *sº -- 107 * * * **ºgº
ll,000 tons ore, J
at 30 cents . . . . . . . . . 11, 200 *sº vºsºvº 11,956 .936.77
Expense of g
$1,043 per day
for 3-3/4 days . . . . eº º 3,911. cºsº, 11,956 .327.1%
Profit or 1 oss **** * cºng 7, 239 11,956 ,60963
14,000 tons coal,
at: l{5 cents • , s , s , o a 6,300 ****) **** 11,956 .52693
Fixpense at
$1,043 per day for
H-3/4 days . . . . . . . *tº l, 9514 *4-se 11,956 ..}}ll{37
Profit, or loss ** ~~~ 1.346 11,956 .11256
Total revenue 17,500 *tº ** 23,912 .73135
Total expense tºº 3,365 *ºtºs 23,912, .37076
Total profit
or loss • , . . . . . . . . s-ºs- gº tºº 3, 635 23,912 .36109
Profit per day Qººme ** l, Oló sºzºng *ºmº
111,000 tons ore,
at 80 cents . . . . . . . . 11, 200 *Cºmº sº 11,956 .93677
§"... as *
eI'
#3; ##. :... ** 7,822 tºº 11,956 .65);27.
Profit • . . . . . . . . . ** ** 3ºl. ll, 956 .23250
Profit per day . . . *º ** 50 **** Ǻmºsº
lſ
Denotes losse
NOTE:-Expense per day includes allowance for idle time in closed season,
Total expense per year is prorated over the time in services
SOURCE: Board of Investigation and Research, arison of Rails - Motors
Water Carrier. Costs • Doc. No. &lt, 79th Congress, 1st Session, p. 239.
63||1-129
Where the costs covered a two-way movement—that is, ore in - 1.
one direction and coa in the other——the cost of each movement is
applied against the tonnage in that direction. The first illustrº-
tion covers the movement of 10 thousand tons of ore and a return
movement of 10 thousand tons of coal. The cost for the entire move—
ment of the two commodities, including vessel port time and lay-up
expenses, was 0.47775 mills per ton-mile. The second situation
illust; rated in Table LVII involves a movement of 10 thousand tons
of ore in one direction with no cargo on the return movement; the
cost per ton-mile was 0.84309 mills. The third illustration covers
the use of a larger vessel and the movement of ll; thousand tons of
ore with a return movement of 14 thousand tons of coal, with a
combined cost for both movements of 0.37076 mills per ton-mile. The
final computation is for the movement of 111 thousand tons of sº "-
in one direction with no cargo on the return movement. The cost per
ton-mile was 0.65!127 mills."
From another source the financial results of the operations
of two carriers engaged in the transportation of bulk commodities
were assembleds Company A owned is steel bulk freight steamships.
No data are available as to the amounts of traffic transported,
However, its income account for the years ending December 31, 1944
and 1915 was as follows:
63in4–130
• * * * • * * * * *
• -- e o 'º -- * * * * * * * * * *
- * * * * * *
Income tax º & • © º m e. > tº º tº * - * * • * v e s = n
Net Income . . . . . . . • - - - - - - - - - - - - - -
Dividends . . . . . . . . - - - - - . . . . . . . . . - -
Surplus for year
Surplus, l—l .
º º e º ſº º sº dº º &
º, º º tº º ſº
(2) Credits . . . . . . . . . . . . . . . . . . . . .
Surplus, 12-31
Earned per share .
No. of shares
• e º 'º a e s e e s , p *
a & © w w e s m e o e º 'º'
& © º ºs º º
* tº 9 & © 2
$ l, --
346,609
1945
309,534
265,520
697, 154
525, Lillo
l/2, Olli.
8||5,109
1914);
H12,237
277,519
525, lil;0
33, 133
933,547
815,109
$16.63
26,272
(1) Includes amortization
(2). Adjustment prior years taxes, depreciation and amortization.
In each of the two years this carrier paid out $525, lilk) in
dividends or $20 per share.
Its balance sheet as of December 31, 1944 and 1945, shows
the following:
As sets:
Wessels, (net) . . . . . . . . . . . . . . . . . $ 2,848,341 $ 2,978, 733
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . 160,950 692,551
Acct s. receivable . . . . . . . . . . . . . º 562,323 - 227,260
U.S. sec. , etc. . . . . . . . . . . . . . . . . 791, Olj HO2,275
Stock of subsid. . . . . . . . . . . . . . . . 2,500 2,500
Other invest. . . . . . . . . . . . . . . . . . . 9, 295 ---
Insurance fund . . . . . . . . . . . . . . . . . 1,425,000 925,000
Post-war tax refd. . . . . . . . . . . . . . 9, 536 21, 165
Deferred charges . . . . . . . . . . . . . . . 105,675 102, H16
Total . . . . . . . . . . . . $ 5,711,972 $ 5, 352,249
Liabilities:
(1) Capital stock . . . . . . . . . . . . . . . $ 2,627, 200 $ 2,627, 200
Accts, payable . . . . . . . . . . . . . . ... • - llili,696 157,965
Res. for taxes . . . . . . . . . * < e s s a s t 265, 52O 296,269
Insurance reserve . . . . . . . . . . . . l, 425,707 l, l;25, 707
Surplus . . . . . . . . . . . . . . * * * * * * * * * e l, 221,850 845,109
Total . . . . . . . . . . . . $ 5, 714,972 $ 5, 352,219
(1) 26,272 no par shares A
Its earnings for the six years, 1933 to 1943, were as shown
below: -
Year Operating ifet Earned
Profit, IncC:he per share
1913 ... § 33,337 s 333,910 # III.75
l942 . l, H03,941 726,641. 27.66
1911 ... 1,268,957 725,933 27.63
1940 ... l., H31, 35l 893, 1714 34.00
l939 . . . 1, 290,502 97.1, 6110 36.98
l938 . . . 33l, l08 1711,646 6.65
SOURCE:
Moody's Manual of Investments, 1946.
63!!!T-131
Company B owned 15 modern steel freight boats, with an
aggregate capacity of 152,600 tons, in the iron ore, grain and
coal carrying trade. It transported 81,170,538 tons in 1944 and
75,711,750 tons in 1945. Its income account shows;
# 1944
Gross profit a . . . . . . . . . . . ... $ 5,139,199 $ 6,197,973
Oper. exp. , etc. . . . . . . . . . . 3,236,399 3,950,671
Admin, expense . . . . . . . . . . . . 139,491. 139,190
General taxes • . . . . . . . . . . . . 29,231. 33,962
Deprec, , etco • . . . . . . . . . . . . 157,401 630,643
Operating profit .......... l,626,421 l,liliğ,507
Othor income . . . . . . . . . . . . . . 17,734 (1) 32,872
Total income 2 . . . . . . . ...... 1,644,155 1,476,379
Interest . . . . . . . . . . . . . . . Ǻ 2 & $ººd 34,1476
Inc. & Prof, tax . . . . . . . . . . (5) 426,575 l,014, 200
Net profit . . . . . . . . . . . . . . . . 1, 217,580 l!27,704
Dividends • . . . . . . . . . . . . . . . . 299,250 299,250
Surplus for year • . . . . . . . . . 913, 330 128,154
Surplus, Jan, le . . . . . . . . . 1, 331,053 1,119,1614
Credits • . . . . . . . . . . . . . . . . . . (5)1,451,378 (2) 33,1134
Debits . . . . . . . . . . . . . . . . , , . (H)3,268,547 ~~~
Surplus, Dec. 31. . . . . . . . . . . l:32,213 l, 331,053
Earned per share • . . . . . . * * * $10-17 $3. 57
No. of shares . . . . . . . . . . . . . 119, 700 119,700
Includes $20,753 profit on sale of securities.
Adjustment of reserve for digiposit in suspended banko
Comprises: Claims for refund of Federal income taxes due
to prior years' accelerated amortization, $333,777;
reversal öf excess of amortization of emergency facilities
over normal depreciation for prior years, $612,601;
total, $1,451,373.
(4) Comprises: Elimination of excess values assigned to steamers
and equipment at date of reorganization, $1,555, 503;
restoration of balance of depreciation reserve eliminated
at date of reorganization, $1,713,039; total, $3,268,547.
(5) After deducting $111,921 credit for 1945 resulting from
accelerated amortization of emergency facilities not recorded
On books,
:
:
:
63||17–132
Its balance sheet as of December 31, 1944 and 1945, shows
the following:
Assets; } 1945 1914);
Cash . . . . . . . . . . . . . . . . . . . . . . § 2,316, iſ; $ 1, Elliſ, 33i
Acct s. receivable . . . . . . . . iº 124,605 101,1422
Tax claims . . . . . . . . . . . . . . . . 963,1}l –––
Total current . . . $ 3, H33,925 $ i. 59,35
Ships and equip . . . . . . . tº * tº wº 9,064,579 10,693,835
Depreciation . . . . . . . . . ſº tº e º 'º 6,004, 763 l,746,924
Net ships & eq. . . . . . . . . 3,059, 316 5,946,911
Post-War tax ref. . . . . . . . . . * * * 222,428
Restrict ed cash . . . . . . . . . . . l;0,000 10,000
Deferred charges . . . . . . . . . . — 16,251 25,639
Total . . . . . . . . . . . $ 6,55,975 § 7,761,23i
Liabilities: * g
Acct S. pay. , etc. . . . . . . . . . § &lp, HBO $ 153,988
(2) Accr. inc. taxes . . . . . . - *3,799 £39,590
Total current . . . 128, 159 l!98,578
(1) Common stock . . . . . . . . . . 6,000,000 6,000,000
Surplus . . . . . . . . . . . . . . . . . . . 32,213 l, 331,053
Total . . . . . . . . . . . . . . . . . . . . & 6,432,213 7,331,053
(3) Reacq. stock . . . . . . . . . . 6.11 2: ;
Net stk. & Surp . . . . . . . & 6,426,813 7,522,653
Total . . . . . . . . . . . $ 8, 55,973 $ 7,784, 231
Net curr. assets . . . . . . . . . . $ 3,310,766 $ 1,090,671,
(l) 120,990, no par shares. *
(2) After deducting U.S. tax notes: 1945, $382,866; 1941, $306, #10.
(3) 300 shares at cost. .*
The earnings for the years 1938 to 1943 were:
Gross Net Earnings
Year -*. Profit Profit per Share
1913 .... $ 1,832,331 #THO3,171 $ 3.37
1942 . . . . H., 378,370 326,560 2,73
1941 .... H, 133,829 614,225 9.13
1940 . . . . 2, 340,994 lil;2,258 3.69
1959 . . . . 2,090, Ol& l!83,641 H.03
1938 . . . . 662,146); 3,903 0.03

SOURCE: Moody's Manual of Investments, 1946.
As stated earlier in the report there were several carriers
that had secured operating authority from the Interstate Commerce
Commission to transport commodities.
enerally but during the years
1941 and 1944 had confined their activities almost wholly to exempt
631ſlit-133
transportation. Only a very small amount of tonnage trensported -
in 1941 and 19th can be identified as package freight. In other
words, the lines shown below were engaged in exempt transportation
during these two years. No attempt was made to develop the charac-
ter of traffic during the intervening years, as it was felt that
1911 and 1941 were sufficiently representative. The lines covered
by this portion of the report with the amounts and character of the
\
traffic transported are:
—Tons
1911 19||l;
Q99)—(999)—
Columbia Transportation Co. *
Products of Agriculture . . . . . . . . . 28 129
Products of Mines. . . . . . . . . . . . . . . 6,380 6,979
Manufactures and Miscºllaneous . . . 341 268
6, 719 7,376
Gartland Steamship Co.
Products of Agriculture. . . . . . . . . . 193 liſh.
Products of Mines. . . . . . . . . . . . . . . . 1,616 1,343
Manufactures and Miscellaneous. . . # O
| 1,967 l, 817
Nicholson Transit Co-
Products of Agriculture . . . . . . . . . . 353 317
Products of Mines. . . . . . . . . . . . . . . . l,65 876
Manufactures and Miscellaneous . . . . 824 l!
l,642 1,567
Nicholson Universal Steamship Co.,
Products of Agriculture . . . . . . . . . . . 605 Not
Products of Mines. . . . . . . . . . . . . . . . . 661 in
Manufactures and Miscellaneous. . . . (1) 307 Opera-
L • C. L. freight . . . . . . . . . . . . Q & e º e º dº ſº (2 tion.
1,573 .*
Overlakes Freight Corp.
Products of Agriculture. . . . . . . . . . & Not, 621.
Products of Mines. . . . . . . . . . . . . . . . . in opera- 960 -
tion l, 58
GRAND TOTAL. . . . . . . . . . . • * * * * * * * * * * * * ll,931 12, 3]il!
(1) Includes 262, 7ull tons of automobiles and autotrucks.
(2) Less than 1000 tons.
63||17–134
These carriers transported ll, 183,000 tons in 1942 and
10,773,000 tons in 1943.
Although the total tonnage on the Great Lakes increased
1944 over 1941, only one carrier, The Columbia Transportation Co. s
showed a substantial increase. There vas but a slight change in
the amount transported by the others,
After having developed the amounts of tonnage transported
it was thought pertinent to ascertain the commodities that made
up the esses. As in the case of the private carriers iron ore
and coal were the principal commodities, The commodities that
made up the cargoes of these carriers in the two years with amounts
of each are shown in Table LVIII,
65ul!?-135
TABLE LVIII
COMMODITIES AND TONNAGE
1941 AND 1914.
1911 1919.
Tons Tons
(OOO) (006)
Wheat . . . . . . . s w t & e s s a s e e tº º, ø, ºr º 7|13 962
Corn . . . . . . . . . . . . . . . . . . . . . . . . 245 2
Oats . . . . . . . . . . . . . . . . . . . . . . . . l2 250
Barley and rye . . . . . . . . . . . . . . 92 l?9
Grain, N.O.S. . . . . . . . . . . . . . . . ll 70
Flour, wheat . . . . . . . . . . . . . . . . l O
Beans, and peas, dried . . . . . . . , 0 5
Flaxseed . . . . . . . . . . . . . . . . . . . . 70 76
l, 179 l,5III
Anthracite coal . . . . . . . . . . . . . 237 521
Bituminous coal . . . . . . . . . . . . . 5,823 l,741
Coke . . . . . . . . . . . . . . . . . . . . . . . . 79 l:S
Iron ore . . . . . . . . . . . . . . . . . . . . 5,597 3,134
Ores and concentrates, F.O.S. 2 O
Gravel and sand . . . . . . . . . . . . 517 715
Stone, broken, ground or $
crushed . . . . . . . . . . . . . . . . . . . 570 661
Stone, rough . . . . . . . . . . . . . . . . 33 O
Salt . . . . . . . . . . . . . . . . . . . . . . . . 2 22
Phosphate rock . . . . . . . . . . . . . . 73 ... O
Sulphur . . . . . . . . . . . . . . . . . . . . . l63 319
Products of Mines, N.0, S. . . . . 31 ... O
9,122 10,158
Iron, pié . . . . . . . . . . . . . . . . . . . 266 l/3
Iron and steel products . . . . . 650 270
Automobiles (passenger)...... 253 O
Autotrucks . . . . . . . . . . . . . . . . . . 16 O
Newsprint paper . . . . . . . . . . . . tº 3 O
Furnace slag . . . . . . . . . . . . . . . . 3 52
Scrag iron and steel . . . . . . . . 331; 112
Manufactures and miscellan-
eous, N.O.S. . . . . . . . . . . . . . . . 50 35
IGO GIE
GRAND TOTAL . . . . . . . . . . . . . . . . 11,931 12,5ul.
6317-136
The operating ratio of these carriers as a group ranged from
81.5 in 1941 to 91.8 in 1944, and all of them earned a net income
in 1944.
The Columbia Transportation Co. showed the largest increase
in operating revenues in 1941. In turn its operating expenses in-
creased to a greater extent causing its operating ratio to increase
from 32 to 91.1. Even with this higher operating cost this company
was able to earn $302,000, and it paid out $216,761, which was at
the rate of 20 per cent on its capitalization. Its operating revenue,
in 1944 amounted to 67.2 cents per ton and its operating expense
61.2 cents per ton, revians in a net revenue of 6 cents per ton.
The condensed income account of the several carriers is shown
in Table LIX.
- 634);7-137
TABLE LIX
CONDENSED INCOME ACCOUNT
iglpi 1912 1913 1911;
(OOO) (000) (000) (OCO)
Columbia Transportation Co., p
Operating revenues . . . . . . . . $ 1,159 $ 1,810 l, 781 11,954 .
Operating expenses •. . . . . . . 3,402 . H., 179 *# #
Net revenue . . . . . . . . . . . . . . {} 757 631 21. H3
Operating ratio * * * * * * * * * * j, 32 86.9 91.2 91.1
Net income. • . . . . . . . . . . . . . . . N.A. 3H3 3.11 302
Capital stock • . . . . . . . . . . . , 1,088 1,037 l,035 1,080
Dividends {} o tº e s - e. e. e. e. e. • ‘º e C & B No As 218 217 217
Corporate surplus • . . . . . . . . 2,347 2, 471 2,560 2,903
Taxes . . . . . . . . . . . sº a 6 & e º 'º e C & 345 317 1511 158
Investment in property
s and equipment . . . . . . . . . ... 5,557 6,297 '6,526 6,352
Gartland. Steamship Co. º t . . .
Operating revenues . . . . . . . , 1,402 l, 290 1,249 1,790
Operating expenses . . . . . . . . 1,185 l,155 l,068 lsº
Net revenue . . . . . . . . . . • * * * * 217 135 181 217
Operating ratio - . . . . . . . . . . &lk, B *: 35. 5 87.9
Net income • . . . . . . . . . . . . . . . 107 7 12O . 76
Capital stock • . . . . . . . . . . . . 7LO TLO 7LO 710
Dividends . . . . . . . . . . . . . > * * * 63 63 63 63
Corporate surplus a . . . . . . . . 272 279 27); 275
Taxes • . . . . . . . . . . . . • * s e s e º e 110 70 71 ill;
Investment in property
and equipment • . . . . . . . . . , 1,530 1,555 1,062 1,053
Nicholson Transit Co. \\
Operating revenues . . . . . . . . 1,639 1,16i l,273 l, 396
Operating expenses . . . . . . . . 1,142 1,070 l,090. l, 2
Net revenue . . . . . . . . . . . . . . IE7 91 133 129
Operating ratio . . . . . . . . . 3 e 69.7 92.2 85.6 90.8
Wet income . . . . . . . . . . . . . '... 215 l;3 96 TO
Capital stock . . . . . . . . . . . . . 194 1914 1914 194
Dividends . . . . . . . . . . . . . * * * a 16); O lOl. O
Corporate surplus . . . . . . . . . 55l. 624 607 676
**es . . . . . . . . . . . . . . . . . . a tº 5 232 17 72 59
Investment in property
and equipment • . . . . . . . . . . 893 396 1,045 1,063
Nicholson Universal Steamship
Co. (1)
Overlakes Freight Corp. (2)
Operating revenues ........ 3,096 l,097 923 2,141
Operating expenses ....... 2,665 1,154 827 2,035
Yet revenue . . . . . . . . . . . . . . . lºl d. 57 101. 56
Operating ratio ........... 86.1 105.2 89, l 97.4
Net income . . . . . . . . tº & © tº s e e Q. 224 d. 113 96 55
Capital stock ... .......... HO -19 19 32
Pividends .......... • * * * o e s 2OO lſo 33 Hl
Corporate surplus ........ tº 17|| 697 325 621.
##########" 32 13 5 5
*śā’īnān *::::::..... 2,316 713, 733 773

TABLE LIX (Cont'd) 63||||7–133
CONDENSED INCOME ACCOUNT -
—------. – TOTAL • —-
- - 1941 1942 1943 1911;
Operating revenues . . . 2 * * * * o o $. 10, 296 $ 3,353 $ 8, 231 $ I5, agi
Operating expenses . . . . . . . . . . . . 3,394 7,558. 7,345 9, 136
Net Revenue . . . . . . . . . . . . . . . . . TI, 553 - 305 -gg -gſ;
Operating ratio . . . . . . . . . . . . . 31.5 90.14 89, 2 91.8
Net income . . . . . . . . . . . . . . . . . . 546 352 623 503
Investment in property
and equipment . . . . . . . . . . . . . 10, 796 9,1491 9,1116 9, 246
Taxes . . . . . . . . . . . . . . . . . . . . . . . 769 H52 302 366
Per cent of Operating
revenue s • * * * * * * o e o n e < e < 7.5 5.4 3.7 3.6
N.A. º Not available.
(l) For 1941 only.
(2) For 1942, 1943 and 1944.
63.47–139
In addition to the dry-cargo movement there was a movement of
petroleum. Noticeable activity in the lake trade began in 1930 when
the fleets of 23 United States and Canadian oil tankers had a com—
bined capacity of 78,680 met tons, or approximately 536,166 barrels
for a single trip. Immediately preceding Fearl Harbor the two fleets
had grown to a total of 59 vessels of 181,485 net tons, or 1,352,063
barrels capacity. The United States and Canadian fleets of tankers
during the season Of 1943 was composed of 31 steamers, motorships and
barges of 243,702 met tons' capacity, the equivalent of approximately
l, 615, 580 barrels each trip. 18/
The reduction from 31 tankers in 1943 to 70 in 1944 consisted of
vessels that in the two preceding seasons had been brought up from the
Atlantic coast to alleviate the emergency. Accordingly, the past sea-
son's requirements were fulfilled by the established lake fleet regis-
try. The two fleets were enabled to transport more than 10 million
tons for the first time by reason of the shorter hauls from points of
origin to destination. In this connection it is noteworthy that in
total freight receipts at the port of Milwaukee only coal amounted to
a larger tonnage than petroleum products which to taled 653,944 net
tons • 19/
The Lake Carriers' Association in 1941 began collecting data re-
lative to the lake shipments of petroleum products, and results for
the past four seasons follow:
Wessels Net Tons Barrels
1941 . . . . . . . . . . . . 67 9,327,065 T53, 93,523
1942 . . . . . . . . . . . . 67 3,939, 795 66,232,957
1943 . . . . . . . . . . . . 31 9, Hig,367 70,401,519
1944 . . . . . . . . . . . . 70 10, 195,912 73,854,355
SOURCE: Lake Carriers' Association,
Annual Report , 1944, p. 83.
A large portion of this traffic moved in equipment owned or
operated by the large oil companies.
le/ Lake Carriers' Association, Annual Report, 1943
I9/. Lake Carriers' Association, Annual Report, 1944.
65||7–140
SECTION W
ſº
An analysis of the unit costs of the Federal aid to navigation
represented by work done at the 123 United States ports on the Great
Lakes is summarized in Table LX. The average unit costs of the
/
improvements at the ports, measured in terms of the gross tonnages
using each port are shown by groups in column 6. In computing from
these figures the weighted average cost of Federal aid at the ports
for all traffic originating and terminating at each of the United *
States ports on the Great Lakes, lakewise traffic is counted twice,
once as a shipment and again as a receipt. To avoid this duplication
in showing the per ton cost of Federal aid at United States ports for
the Great Lakes considered as a system, the average cost of $0.053,
given in the bottom line of the table, is determined by using the
net—total tonnage which includes half of the sum of the lakewise
shipments and receipts. These unit costs refer only to the cost of
improving and maintaining the ports; the costs of watersonnectine
waterways are considered below.
TABLE IX
63)||17–141
UNIT CUST OF FEDERAL AID TO NAVIGATION AT UNITED
STATES PURTS UN THE GREAT LAKES, 1940
º Numb- Gross ton— Per cent Annual Public
Port group ber of nage, 1940 of total Federal costs aid per
port S tonnage of freight at ton at
the ports the
ports
(000) (OOO)
(1) *—º (H) (5) (6)
Ports improved at
Federal expense,
grouped according
to 1940 gross
tonnage:
l, More than (-
10,000,000 . . . . . ll 222,099 69.00 1/32,975 $0.013
2. log 000,000 -
to 1,000,000. . . . 21. 65,369 20, 31 l, 851 ... 023
3, 1,000,000 sº
to 100,000 . . . . , 15 6, 6l3 2.05 7&l , 118
H. 100,000 to
10,000 . . . . . . . . . 17 566 ... lºſ 315 . . 556
9. Less than
10,000 . . . . . . . . . 13 33 . Ol 39 2.692
Port S not improved
at Federal eX—
pense 2/ c o e e o e o 'º e < * Hl 27, 222 8. H6 *º dºsº
Total:
Including duplica-
tions • , . . . . . . . . . . . 123 321,902 100.00 6,0ll 3/.019
Excluding duplica- -
tions 9 @ 9 s tº 6 tº 9 0 s 6 3 & 8 123 H/131,092 * 6,0ll .033
l/ Includes Chicago Sanitary District costs of $46,576 assigned to
freight navigation in the port of Chicago.
2/ The 41 ports not improved at Federal expense consist of H. ports of
group 2 size accounting for 7.24 percent of the total traffic, 8.
ports of group 3 size with l.07 percent, 12 of group 4 size with
0.14 percent, and lſ of the smallest size with 0.01 per cent of the
total traffic.
Weighted average.
H/ Net tonnage: Duplications avoided by averaging lakewise receipts
arid lakewise shipments.
SOURCE: U.S. Army, Chief of Engineers, Annual Report, 1941, Pt. 2;º
Board of Investigation and Research, Public Aids to Domestic
Transportation, 1944,
*-- ~~~~ *-m-tº-
63||17–1112
Eleven United States ports, each accommodating over 10 million
tons, accounted for more than wo-thiras of the total tonnese touch-
ing United States ports on the Great Lakes in 1910. In order of total
tonnage originated and terminated they are tº 3 ports of Duluth-
Superior, Toledo, Detroit, Buffalo, Cleveland, Chicago, Conneaut,
Ashtabula, Agate Bay (Two Harbors), Indiana Harbor, and Sandusky.
All of these ports have hadžimprovements at Federal expense for the
benefit of Watar—borne commerce. o: the 25 United States ports accom—
modating between one million and lo million tons, 21 have been im-
proved at Federal expense. The traffic at the four ports not improved
by the Federal Government consisted principally of commodities identi-
fied with some one industry. Together these 25 ports accounted for
over a quarter of the total 1910 tonnage accommodated at the United States
ports on the Great Lakes.29/
There are l; Federal projects in the Great Lakes and inter-
connecting waterways which accomodate through traffic. Ten of these
also originate and terminate traffic, and the annual costs of the
improvements are allocated between these twº types of traffic on the
basis of the gross tons for each using the project. The costs at the
ports shown in column 5 reflect the costs allocated to originating
and terminating traffic, in-so-far as the 10 projects serving both
that and through traffic are concerned. S
Thus, the costs shown in Table LX do not take into account
the costs to the Federal Government of improving the connecting chan-
20/ Board of Investigation and Research, Public Aids to Domestic
Transportation, 1914.
63||17–143
nels in the Great Takes system for the benefit of the traffic re-
ported here. The total annual cost, in 1940, of the improvements pro-
vided for through traffic on the 13 projects was $3,315, 1943.
The total costs (column 6, Table LXI) are allocated among the
groups of United States ports on the basis of the gross total of all
tonnage, except for local and intraport traffic originated or termi-
nated at the ports in each of the groups. This latter traffic is
excluded because it may be presumed it did not make use of any of the
through channels. These allocations and the resulting total unit
cost of all Federal aid to navigation on the Great Lakes are shown
in Table IXI.
63||17–11);
TABLE IXI
UNIT COST OF ALL FFDERAL AID TO NAVIGATION USING UNITED
STATE PORTS ON THE GREAT LAKES, 1940
*-*- Gross tonnage Percent Allocation Annual
excluding distribu- of annual cost s
Port group local and in— tion of costs of of the
traport1/ gross ton- through ports
nage channels
(1) (2) (3) _(H) (5).
Ports improved at Federal
expense, grouped according
to 1940 tonnage : *
1. More than 10,000,000... 219, 545, 726 69.20 $2,294, 290 $2,974,771?
2, 10,000,000 to 1,000,000 63, 767, 692 20, 10 666,105 l, 351, 160
3, 1,000,000 to 100,000. . . 6, 552,912 2.07 t 63,650 731, 2014
H. loo,000 to 10,000. . . . . . 520,020 , 16 5,304 31}, 550
5. Less than 10,000. . . . . . . 27, 226 ,01 332 39,103
Ports not improved at
Federal expense. . . . . . . . . . . 26, 326,637 3.16 230,187 *º
Total;
Including duplications. . . . 317, 240,263 100.00 5, 315, lili8 6, Oll,083
Excluding duplications . . . . ** * 3,315, lili & 6,011, 038
*- Total annual Gross Total Federal aid
Port group costs (445) Tonnage, 1940 per ton
(6) (7) (3)
1. More than 10,000,000. . . $5, 279,061 222,093,941 $0.024
2. 10,000,000 to 1,000,000 2, 517, 565 6:5, 369,174 .039
3. l; OOO, 000 to 100,000 . . . 349,334 6, 613, 31.2 .l.29
H. 100,000 to 10,000 • * e º s º 319, 354 565, 759 .565
5. Less than 10,000. . . . . . . 39,735 33,216 2.702
Ports not improved at *
Federal expense. . . . . . . . . . § 230, 1137 27, 221, 500 .010 A
Total; 3
Including duplications. . . . 9,326, 536 㺺lſ .0292/
Excluding duplications. . . . 9,326, 536 181,091, 971: .052

l/ Includes all overseas, coastwise, Canadian, lakewise, and internal traffic.
**
port of Chicago.
/ Weighted average.
Ż/ Includes Chicago Sanitary District coats $46,576 assigned to navigation in the
# Duplications avoided by averaging lakewise receipts and lakewise shipments.
SOURCE:
Annual Report of the Chief of
Engineers, U. S. Army, 1941, Part 2;
€3.3"
Board of Investigation and Research, Public Aids to Domestic
Transportation, 1944.
r
**
t
~"
The total tonnage of all Great Lakes' traffic using United
States ports, including duplications but excluding local and intra-
port, was 37,240,263 tons in 190, and the allocation of annual
costs of through cºnnel was $3,315,448. mus, the average unit
cost of the through channels to be assigned to each group was
approximately one cent per ton.
Also of interest is the average annual cost of public aid per
ton-mile of freight. Various average unit costs of Federal aid to
navigation on the Great Lakes in 1940 are summarized in Table LXII.
TABLE IXII
UNIT COST OF PUBLIC AID TO TRAFFIC USING UNITED
STATES PORTS ON THE GREAT LAKES, 1940
Traffic * Costs
Item Amount r .
Unit, (Thousands) Amount Per unit
wº--~~~~ -T- —r
Port costs per tonl/ Net tonnage2/ 181,092 $6,0ll,083 $0.033
- º per t on
Total costs per ton’ſ Net tonnage2/ J31,092 9,326,536 $0.051
* - per ton
Total costs per ton -
mile3/ . - Ton-miles 96,645,008 9,326,536 $0.0001
* - per ton-
- mile
Includes only the costs of improving the ports.
Duplications avoided by averaging lakewise receipts and lakewise
#
shipments. -
Includes costs of the ports and the through or connecting
channels,
SOURCE: Board of Investigation and Research,
Public Aids to Domestic Transportation, 1944.
63447–146
For comparison the cost of public aid on several inland
waterways as developed by the Board of Investigation and Reséarch
in its report on "Public Aids to Domestic Transportation" are
shown: (p. 67)
Waterway
Mississippi River:
Reservoirs to mouth of Missouri .
Mouth of Missouri to mouth of Ohio . . .
Mouth of Ohio to New Orleans . . . . . . .
Missouri River:
Kansas City to
Kansas City to
Ohio River . . . . . . . .
Monongahela River
Allegheny River, lower portion ...
Kanawha River . . . .
Warrior River system: .
mouth . . .
to 9 º' º e º gº
• o 'º e o a
tº e º & e º 'º a
* * g e º
& © tº º
Cost per ton-mile
(Mills)
3, 7
H.9
© [º 1.7
gº º 107.3
3.19.0
2.4
9
* @ 22.3
,8
© •9
On the New York State Barge Canal, which connects Lazes Erie
and Ontario with the Hudson River, the cost of public aid for 1942
was l.H.7 cents. 21/
2l/ Railroad Committee for the Study of Transportation,
Transportation on the New York State Berge Canal, 1945.
6344.7-iº/
POSTWAR PROSPECTS
.#
In dealine with the postwar prospects or outlook for freight
transportation on the Great Lakes the discussion that follows will
be separated into two parts; first, the bulk, and second, the
package freight, transportation.
The carriers operating bulk freighters handling the major por-
tion of the iron ore, coal and grain tonnage will have the least
difficulty in adjusting themselves to peace-time operations in the
postwar period. Practically all of the carriers performed the same
service between the same points and for the same receivers and
shippers during the war period as before the war and will do so in
the postwar period. *: \
The shipping industry will be faced with increased costs. Be-
sides the increase in the costs of fuel and supplies there will be
an increase in wages and a decreese in working hours per week of the
personnel on the vessels.
While there is likely to be less vessels in the early postwar
years than in the prewar years, it does not necessarily mean that
there may be less available shipping space. Larger vessels are now
available for this service than before the war.
The war did not materially reduce the supply of vessels in this
trade. At the same time there were 16 large bulk freight steamers
constructed for the United States Maritime Commission and are now
owned and operated by private and contract carriers. These were
- 634.7-i}{3.
added to the fleet in 1942 and 1943. ºn the other hand, many of *
the vessels are growing old. At least 70 per cent of the steam steel
vessels operating in the coal and ore trade were built before 1910.
Ordinarily, with vessels of this age comprising the major portion
of the fleet, there would be a tendency towards early replacements,
but on the lakes the vessels have a higher average useful life than
on the ocean, principally because hulls do not deteriorate so rapid-
ly in fresh water and because ships are laid up for several months
each year e Such being the case, the process of replacing vessels
can proceed slowly, and as most of the fleets are owned by well-
financed companies, no difficulty is anticipated in keeping a suffi-
cient supply of vessels available for the transportation of bulk
Cargo eSo
Unlike the bulk cases transportation the package freight trans-
portation services were affected by the war. Shortly after the
middle of 1942 almost all of the vessels in this trade were requisi-
tioned or shifted to transport bulk cargoes and package freight
services practically ceased. Thus, at the end of the war the opera-
tors were without ships, without organizations, and without con- -
tacts with the shipping public and shipping conditions in the terri-
tory.
The package freight tonnage on the Great Lakes has shown a change in
volume in the past 25 years. This tonnage, while increasing in some
years and éecreasing in others, has not kept pace with the total
tonnage on the Great Lakes. In 1920 the domestic package freight tonnage
amounted to 2,279,000 tons. In 1939 the total tonnage increased 25
million tons, and the domestic package freight tonnage was 200 thou- i
sand tons 1ess. The Great Lakes Transit Corporation, the largest
carrier, transported 2,578,000 tons in 1916 and only 927,000 tons in
63.7-49
1940. The principal lake lines carried 3,223,000 tons in 1916 and
slightly less than two million tons in 1910. During the war the
package freight service was preemeans discontinued. A factor
affecting the amount of prospective available tonnage in the imme-
diate future is the condition of the industries formerly served by
these carriers. During the interval, between the discontinuance and
resumption of services, changes in location, output, source of supply
and others, may have occurred. In addition, in the absence of the Se
services, the shipping public has become accustomed to current trans-
portation facilities and may show some he sitancy in making changes in
their shipping schedule to return to the slower steamer service.
The next factor is the acquisition of suitable vessels. The
trend of package freig
ht vessels is provided in the Lake Carriers'
& e \ , •
Association Annual Report, 1945, which states:
hanges that have
that sail, the
"Most significant of the c
ls
Great Lakes is the complete absence, in the ac-
Q&
4.
U
occurred in the types of vesse
Companying tabulation, of the ckage freight
steamer of United States registry. Prior to the
end of the Civil War, antedating the development
of iron ore and coal trades and before grain ship-
ments from Lake Michigan reached large propor-
tions, the package freighter carried on a flourish-
ing trade, Its only rivals for domination of lake
tonnogo were the lumber carrying steamers and
schooners in their vast trade to Tonawanda, and
Buffalo,
- "The package freighter pioneered in the de-
velopment of lake ships. In 1862 there came out
the propeller Morchant , the first iron ship con–
structed on the lakes for commercial purposes and
in 1886 the Anchor Line brought out the steel
package freight steamer Susquehanna, 325 feet in
length and of 27&l gross registered tons and con-
sequently the largest ship on tile lakes,
"In 1915 when the lake line s of several rail—
roads were merged into the Great Lakes Transit
Corporation, the fleet embraced 30 ships of 99,825
gross tons. At the outbreak of the war 14 still
remaining in the lake service went to the sea,
63.41FT-150
"Four, the George D. Dixon, Fred W. Sºrgent,
- Alfred H. Smith and Utica, came back two years
ago, but in 1945 were sold to vessel operators in
Chile. Thus, the only ships still intact as pack-
age freighters passed from the lakes There re-
main on the lakes four steamers that originally
were package freight steamers but which have been
reconstructed to carry bulk cargoes of grain or
steele These are the Charles - Donnelly; originally
the Troy; Steel King, originally the Starruca;
the Ralph Budd, originally the Chicago, and the
Arthur Orr." (pp. 43 and HH) 4
Thus, it Will be seen that there are no paekage freight vessels
available for the resumption of these services.
Contrary to the impression of many, the vessels built during the
war by the Government do not solve the problem for these operators.
There are but a very few suitable vessels for the package trade on
the lakes. This situation was commented upon by Admiral Wickery be-,
fore the Great Lakes Shipping Conference, at Chicago, Illinois,
February 1, 1944. He stated:
"Although the Commission is building many
vessels, few &re suitable for service on the
Great Lakes * * * If you will let us know What
sort of vessels you want, howev ºr, ... e Will be
glad to see what can be done."
Therefore, it appears the only way for these operators to build
up their fleets is to purchase new vessels, A review of the results
of package freight operations in the prewar years indicates that the
unfavorable returns create much doubt upon the financial ability of
thé operators to purchase newſ vessels. However, aside from the
financial ability to purchase a vessel, new or old, a very important
factor in determining the willingness to do so is the prospect of *
earning a profit from the operation of the vassel. Experienced
operators are not likely to purchase a vessel unless they believe
that a profit can be made with the vessel. The prospects of profits
65||17– 151
from operations of package freight services on the Great Lakes are
influenced by several things. There is every indication that the
railroads, motor trucks and freight forwarders will exert every
effort to provide better services than before the war. This in turn
means more strenuous competition for the water carriers. The de—
cline in this class of tonnage has already been commented upon.
Taking a glance into the past the operations of these carriers in
the prewar years were not profitable, It will be noted from Table
LIV that during the period 1934 through 1940 the operating expenses
of the Great Lakes Transit Corporation exceeded the freight revenues
in five of the seven years. From Table LII it will be observed that
A
the lake carriers as a whole suffered a loss each year from 1950
-i-
U O
1940, inclusive. ;
Besides the above these carriers are faced with operating cost s
in excess of those existing in the prewar years. The costs of Sup-
plies and fuel have increased. The personnel of the lake vessels
are in the midst of a strike for bett er working conditions, which
translated into the operators' language means increased costs. The
wages of the stevedores are now higher than in the prewar years. On
the other hand, freight rates are but slightly above prewar levels.
It has been stated that this level is too low to meet operating ex-
penses.
-Considering the accine in package freight tonnage and the poor
earnings in the prewar years, the difficulty in securing suitable
vessels, the competition of railroads, motor carriers and freight
forwarders and the increased operating cost s, the operators in this
service will experience considerable difficulty in their efforts to
resume profitable package freight service.
||||||||||||
|
i
------——s,
ſ UNIVERSITY OF MICHIGAN º
\ 39015068.305658 .
/
\
* .
DATE DUE