228 THE IMPORTANCE OF PORT FACILITIES IN THE 



of Engineers on Rivers and Harbors. This board has performed valuable work already, and 

 its program includes the preparation and publication of reports in separate pamphlets upon 

 the facilities of each of the important ports of the United States. These pamphlets will con- 

 tain all information needed by vessels and will enable the charges of different ports to be com- 

 pared. The board has reported that its investigations "show that the terminal charges and 

 practices at railroad terminals at South Atlantic and Gulf ports have exercised an injurious 

 effect upon the commerce of the United States, by rendering it impracticable for private and 

 municipal terminals to handle through business, thereby restricting port growth and develop- 

 ment." In reporting these matters to the Interstate Commerce Commission, the Secretary of 

 War, in March, 1921, endorsed the significant statement of the Chief of Engineers that the 

 success of our merchant marine depends largely on the economical operation of our ports. 



In accordance with the River and Harbor Act of July 18, 1918, the Board of Engineers 

 for Rivers and Harbors has prepared for the Chief of Engineers a very comprehensive and 

 valuable report upon water terminal and transfer facilities of the United States. This report 

 will include, when printed, a separate pamphlet with numerous illustrations, giving descrip- 

 tions and general plans of terminals and appropriate types of construction for harbors and 

 waterways of the United States, suitable for various commercial purposes and adapted to the 

 varying conditions of tides, floods, and other physical characteristics. . 



An important contribution to our port facilities was made by the War Department dur- 

 ing the war, through the construction of extensive terminals costing over $150,000,000, at 

 Boston, South Brooklyn, Port Newark, Philadelphia, Norfolk, Charleston, New Orleans, Ho- 

 boken, and San Francisco, many of which are now available for commercial use. 



The importance of public terminals and the public control of water frontage at each port 

 cannot be overestimated. The day has passed when control of water terminals by railroads 

 is advantageous or necessary. As shown by C. O. Ruggles in his report on "Terminal Charges 

 at United States Ports," made to the U. S. Shipping Board in 1919, railroad control of 

 water terminals has several important disadvantages. Government control over railroad 

 rates has increased railroad competition in terminals and terminal construction, resulting in 

 duplication of expensive terminals by the railroads operated independently, and causing un- 

 necessary plant expenditures. Competition of this character in our ports has also resulted in 

 the railroads offering gratuitous service at terminals in order to obtain additional freight. 

 When charges are made by the railroads for dockage and wharfage, they are usually merely 

 nominal. The investigation of the Board of Engineers for Rivers and Harbors of our South 

 Atlantic and Gulf ports showed that the terminal charges at those ports averaged only from 

 one-fourth to one-half the actual cost of same to the railroads. While the railroads may jus- 

 tify this practice to themselves from their methods of accounting, there is no question but that 

 the practical effect of this procedure is detrimental to the growth of our ports and to our mer- 

 chant marine, for terminals at those ports, constructed by either private capital or from public 

 funds, cannot operate profitably in competition with railroad terminals that furnish free or 

 practically free dockage to vessels and free wharfage to cargo. Many specific examples could 

 be cited in support of this statement. The third unsatisfactory result of railroad ownership of 

 water terminals is lack of coordination. Railroad tariffs applying to terminals commonly 

 specify that the railroad does not obligate itself to provide wharfage, storage or 

 handling for freight which is not to be transported over its lines. This restriction is undoubt- 

 edly due to the fact that railroad competition in terminals has made the terminal charges 

 such that a railroad cannot afford to permit the practically free use of its terminal facilities 



