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Show (6) Savings.-As indicated in table 1, there has been a considerable variation in unit savings per ton-mile be- tween the various waterways, ranging from 4.6 mills per ton-mile for the Illinois waterway which results largely from the movement of coal, to 19.5 mills per ton-mile on the Sacramento River, where petroleum products con- stitute the largest item in the tonnage movement. Aver- age unit savings are shown in table 1 only to indicate the magnitude of unit savings in a general way. They are composite figures based on many specific cargo move- ments. The average annual savings shown, however, are a good index of the value of each of the waterways. 9. Comparison of Benefits and Costs.-Examination of table 1 will show that for 10 of the 15 waterways the average annual benefits for the 20-year period have definitely exceeded average annual charges. On two of the waterways developing traffic has resulted in average benefit-cost ratios for the period of slightly less than unity; but traffic is increasing and the benefit-cost ratios for the year 1948 are above unity. On two waterways, the Missouri and Columbia, a definite benefit-cost ratio based only on present navigation savings would be meaningless as these waterways are now under construction and traffic has not yet developed, and they are parts of comprehensive plans for water resources development. Only one of the selected waterways shows a definitely unfavorable benefit- cost ratio for the average of the 20-year period and for 1948, the latest year of record. As a matter of general interest it may be noted that total savings for the group of 15 waterways, when compared with total costs for the group including costs of the incomplete waterways, show a benefit cost ratio of 2.5 for the group as a whole for the 20-year period, and a comparison of savings and charges for the group for the year 1948 shows a benefit- cost ratio of 3.8 for that year. 10. Summary.-The economic value of the entire in- land waterway program from its beginning to date may be shown briefly as follows: (a) The total Federal economic cost of the entire inland waterway program since its inception in 1824, including all projects now abandoned or superseded, has been: New work: 15 major waterways_____________ $966, 850, 000 All other waterways_____________ 217, 243, 000 Total________________________1, 184, 093, 000 Maintenance and operation: 15 major waterways_____________ 444,512,000 All other waterways_____________ 161,386,000 Total________________________ 605, 898, 000 Interest: Assuming a 3 percent rate and applying to costs as they built up over the period since 1824, approximately__ 600, 000, 000 Grand total________________2,389,991,000 (6) During the 20-year period ending June 30, 1948, the annual cargo traffic reported for inland waterways has increased from 7.2 billion to 36.5 billion ton-miles. The cargo movement for the period has totaled 338 billion ton-miles. Transportation savings due to the inland waterways as described previously in this study, have ranged from 4.6 mills to 19.5 mills per ton-mile and have averaged 6 mills per ton-mile for the 15 waterways which now carry about 80 percent of the traffic. This average unit saving applied to the total cargo movement shows a total saving during the 20-year period of $2,028,- 000,000. In other words 81 percent of the entire eco- nomic cost of the Federal inland waterway program which cost has accrued since 1824, has been returned by savings produced in the 20-year period 1929-48. (c) The foregoing summary ignores the substantial transportation savings produced prior to 1929 because of lack of comparable traffic records. If these earlier sav- ings could be identified it is obvious that a still larger part of the present economic cost would be covered. (d) If Federal expenditures for inland waterways and commerce on the waterways continue substantially at present levels it is estimated that in 4 years after fiscal year 1948 or by the end of fiscal year 1952, the total Fed- eral economic cost of the waterway program since 1824 will have been fully covered by transportation savings produced in 24 years. At that time the individual projects will have many years of useful life in prospect. 11. The federally improved inland waterways comprise an important element in the basic transportation structure of the Nation. They supplement other forms of trans- portation and are not a substitute for the rails, highways, and pipe lines for freight movement. The waterways, however, do provide a unique means of transportation and are able to handle certain commodities and move- ments which are not practicable on other transportation media. Federal activity in waterway improvements, as indicated by this study, has been largely concentrated on a relatively few major waterways which carry the bulk of waterborne commerce. The value of these waterways is indicated by the steady growth of water-borne com- merce, which has taken place when adequate inland navi- gation facilities have been provided; and by the sub- stantial savings to shippers and receivers of cargo which have accrued from use of these waterways. In addition to the purely commercial value of the inland waterway system there are noncommercial values which are not revealed by an analysis based on freight movements. For example, it is not practicable to place a monetary value on use of the inland waterways during World War II for mili- tary and defense purposes. Inland Waterways in World War II Inland waterway transportation during World War II was of the utmost importance to this Nation and con- tributed vitally to the ultimate victory of the United States and its Allies. Strategic commodities were moved effi- ciently and safely over the inland waterways, seagoing ves- sels were floated to the sea from inland shipyards, and new war industries were established in the interior near water transportation. During this period traffic on the inland and intracoastal waterways continued to grow and each year of the full war effort a new record in ton-miles of barge-borne freight was set. Millions of tons of petroleum products were transported on the inland waterways by tank barges during the war period. This helped to make up for the loss in petroleum shipments caused by the sinking of coastwise tankers and the transfer of vessels to naval service. The water move- 423 |