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For the 10-year period 1897-1906 the average rail rate from Breslau to Hamburg for export sugar was $3.47 per ton, and if intended for domestic use, $6.81 in 10-ton lots, while the water rate on sugar regardless of where used was $1.35. Hence it appears that both the rail and water rates on this commodity given in the preceding table are considerably above the average.

The principal commodities shipped downstream on the Oder are sugar destined for Hamburg and coal for Berlin. The average water rate during the period 1903-1907 on coal from Breslau to Berlin was $0.766 per ton. From Kosel to Berlin it was $1.28. The following tables show the high, low and average water rates for the coal shipments on the Oder from Breslau and Kosel to Berlin. This trafic passes through the Spree-Oder Canal and pays a small toll. The traffic from Kosel, where the Oder is canalized, pays two tolls, which are included in the rates given. The rail rates on this coal traffic are somewhat lower than those on English coal from Hamburg, in order to permit the Silesian coal to compete on equal terms with the foreign product. In spite of this fact, as will be seen, the rail rates are considerably above the water rates.1

I.-Coal rates from Breslau to Berlin via the Oder and connecting waterways.

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The exceptional rail rate on this coal if shipped in carload lots of not less than 10 tons is 0.745 cent per ton-mile with a terminal charge of 17 cents which for a distance of 205 miles amounts to $1.69 per ton."

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II.-Coal rates from Kosel to Berlin via the Oder and connecting waterways.

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On this traffic the all rail route is in competition with the rail and water route via Kosel.

The exceptional rate on coal from the mines at Königshütte directly to Berlin, a distance of 309 miles, including terminal charges of 17 cents, is $2.37 per ton. To the water rate there must be added about 42 cents per ton to cover a rail haul of 40 miles from Königshütte to Kosel and charges for transshipment from rail to river barges.

The marked difference between rail and water rates on the three large German rivers has led to the formation of a number of large shipping combinations for the purpose of raising water rates which the competition of boatmen forces down to the no-profit level. The coal Kontor on the Rhine has been partially successful in its efforts to this end. On the Elbe there are several large combinations which own their own towing steamers and barges. An interesting combination was formed in 1904, known as the Privatschiffer-TransportGenossenschaft, with headquarters at Magdeburg. It is an association composed of individual boatmen who have united in order to prevent the cutting of rates. It has a membership of more than one thousand, and controls some 1,200 vessels, with an aggregate capacity of 700,000 tons, and valued at about $6,000,000. In 1907 this association entered into a combination with two other leading shipping companies for the purpose of preventing competition. Thus far they have only been partially successful in raising water rates. One obstacle undoubtedly is the existence of strict municipal supervision over terminals so that new companies can enter the field at any time without fear of unfair competition.

Some of these large shipping corporations, especially on the Rhine, operate passenger as well as freight boats, and also because of the large differential between rail and water rates have been able to operate express steamers. The Berliner Lloyd, with headquarters at Berlin, maintains a daily express service between Hamburg, Breslau, Magdeburg, and a number of other ports. The United Elbe Navigation Company also operates an extensive express service between Hamburg and a large number of river ports.1

The wide margin which exists between rail and water rates has furnished one of the strongest arguments in the campaign which Prussia has waged for the levying of tolls on the free rivers." The

1 Cf. Edwin J. Clapp, The Port of Hamburg, P. 148.

2 Cf. Peter's Schiffahrtsabgaben in Schriften des Vereins für Social-Politik, vol. 115-116.
36135°-S. Doc. 469, 62-2-36

amount of the toll proposed to be collected, it is stated, would be only a very small proportion of the existing differentials.

A comparison of the rail and water rates for different commodities in Belgium shows that the margin in favor of the waterways is not so great as is the case in Germany. The rail rate is rarely ever more than 40 per cent higher than the water rate, while on the German rivers it is often from 200 to 300 per cent higher. Except for the three ship canals, the waterways only accommodate 300-ton barges, and on all, except the two free rivers, tolls are charged which are sufficient to cover most of the maintenance charges.

The following table gives a comparison of freight rates by rail and by water between Antwerp and other centers:1

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In the table which follows, a list of 20 rates for coal transported by rail and by water between the same points in France is given. The average rate per ton-mile by rail is 9.3 mills and by water 4.5 mills, or about half. But the distance by water in France is generally very much longer than the rail distance, and hence the ton-mile rates are unduly low. If the rail distances are taken in computing these rates, as is done in the last column, the average rate per ton-mile by water for these 20 examples is 6.5 mills, or about 70 per cent of the average ton-mile rail rate.

Lindley, p. 178.

Relative cost of the transportation of coal by rail and by water.1

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1 Collected for the National Waterways Commission by Maj. F. A. Mahan in 1911.

The following table shows the comparative rates for various articles
transported between Havre and Paris, both by rail and via the
Seine: 1

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NOTE.-Distance by rail, 142 miles; by water, 231 miles. Upstream rates are given only. Weight is

metric ton.

1 National Waterways Commission Doc. No. 16, p. 71.

Slightly lower rates than these are given for carload lots by rail, and by water for 4 tons and over. Downstream rates differ only slightly from upstream and for a few articles only.

In the United States the only water routes which enjoy a considerable margin over competing rail routes are found on the Great Lakes and in the coastwise trade. On the inland rivers rail rates are usually somewhat above the water rates on the higher classes of freight, while on the lower classes in which competition is more severe the waterways, as a rule, are scarcely able to compete at all. The following table shows the average ton-mile rate on the traffic which passes through the canals at St. Marys Falls. In recent years this rate has been about one-tenth of the average ton-mile freight rate for all the railways of the United States and is less than one-third the ton-mile rates on coal shipments from the West Virginia and Kentucky mines to the Lake Erie ports, which are among the lowest coal rates found anywhere in the United States. In recent years the rate from most of these mines to the lake front has been 97 cents per ton for distances varying from 325 to 456 miles, or at an average rate of less than 3 mills per ton per mile.

Traffic statistics at St. Marys Falls Canals, including ton-miles and cost per ton-mile. [Monthly Summary of Commerce and Finance, Dec., 1910 and 1911.]

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The great predominance of iron ore in this lake traffic on which rates have been continually declining is responsible in a large measure for the unusually low ton-mile rate given above. In the table following the rates on iron ore transported from the Lake Superior to the Lake Erie ports are given separately. Estimating the average length of haul at from 800 to 850 miles, it will be seen that in 1900 this traffic was carried at about 1 mill per ton per mile, while in 1911 the average rate was less than 0.6 mill per ton per mile.

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