OCR Text |
Show Savings in Transportation Costs In the 20-year period ending June 30, 1948, the transportation savings on the 15 largest and most active waterways, as computed by the Army Engineers, averaged 6 mills per ton-mile and ag- gregated over 2 billion dollars. This is equal to 84 percent of the entire Federal expenditures for inland navigation by the Army Engineers since 1824, including an allowance of $600 million for interest on the investment. Transportation savings prior to 1929 are not included. Accord- ing to these computations, by the end of fiscal year 1952 the total Federal economic cost of the entire waterway program since 1824 will have been fully covered without interest by the trans- portation savings. It is to be understood that the figure of 6 mills per ton-mile aggregate savings as computed by the Army Engineers is based on a comparison of water transportation costs, not including public costs of improving and maintaining the waterway, with normal rather than actual water-depressed rail rates. Neither the number of ton-miles, 371 billion, nor the 6 mills rate by which it is multiplied to arrive at 2 billion dollars, reflects with accuracy the economy of the waterways be- cause of the fact that, on the one hand, water transportation does not bear its full economic costs and, on the other, the waterways are pre- vented from, obtaining the full amount of traffic justified by true differences in transportation costs by competing transportation systems which carry competitive traffic at rates lower than the full costs. Other studies which have been made of com- parative water and rail costs add to the evidence that, on channels of 9-foot depth or greater, sav- ings in transportation costs are very substantial. For example, the Board of Investigation and Re- search (Transportation) published, in 1944, a Comparison of Rail, Motor, and Water Carrier Costs in the Lower Mississippi Valley for 1939, Senate Document No. 84, Seventy-ninth Con- gress, first session, from which is reproduced table 3. The findings of the Board of Investigation and Research were: TABLE 3.-Mileage-cost scale developed for movements In the lower Mississippi Valley area of commodities moving In carloads or equivalent [Costs In cents per hundred pounds] EXCLUDING RETURN ON INVESTMENT 1 Column 2 Column 4 Water with line haul ex- Water with line haul ex- Railroad Motor Miles carrier panded 50 carrier panded 50 (30 tons trucK (in tfini (package freight) percent to allow for (bulk) percent to allow for per load) perjoad) circuity circuity (1) (2) (3) (4) (5) (6) (7) 10 9.458 9.487 1.955 1.998 3.303 3.77 20 9.515 9.573 2.040 2.125 3.533 4.05 30 9.573 9.660 2.125 2.253 3.762 4.55 40 9.631 9.746 2.210 2.380 3.992 4.84 SO 9.689 9.833 2.295 2.508 4.221 5.30 60 9.746 9.919 2.380 2.635 4.450 5.88 70 9.804 10.006 2.465 2.763 4.680 6.46 80 9.862 10.092 2.550 2.890 4.909 7.04 SO 9.919 10.179 2.635 3.018 5.139 7.62 100 9.977 10.266 2.720 3.145 5.368 8.20 200 10.554 11.131 3.570 4.420 7.662 14.00 300 11.131 11.997 4.420 5.695 9.956 19.80 400 11.708 12.862 5.270 6.970 12.250 25.60 500 12.285 13.728 6.120 8.245 14.544 31.40 600 12.862 14.593 6.970 9.520 16.838 37.20 700 13.439 15.459 7.820 10.797 19.132 43.00 800 14.016 16.324 8.670 12.070 21.426 48.80 900 14.593 17.190 9.520 13.345 23.720 54.60 1,000 15.170 18.055 10.370 14.620 26.014 60.40 1,100 15.747 18.921 11.220 15.895 28.308 66.20 1,200 16.324 19.786 12.070 17.170 30.602 72.00 > Water and motor carrier costs include operating expenses, rents, and taxes; rail carrier costs include operating expenses, rents, and taxes, increased by the amount of the passenger deficit. INCLUDING RETURN ON INVESTMENT » 10 10.174 10.213 2.133 2.179 4.094 3.97 20 10.251 10.329 2.225 2.318 4.379 4.26 30 10.329 10.446 2.318 2.457 4.663 4.79 40 10.407 10.562 2.410 2.596 4.948 5.09 50 10.485 10.679 2.503 2.735 5.232 5.58 60 10.562 10.795 2.596 2.873 5.516 6.10 70 10.640 10.912 2.688 3.012 5.801 6.80 80 10.718 11.028 2.781 3.151 6.085 7.41 90 10.795 11.145 2.873 3.290 6.370 8.02 100 10.873 11.262 2.966 3.429 6.654 8.63 200 11.650 12.427 3.892 4.818 9.498 14.74 300 12.427 13.593 4.818 6.207 12.342 20.84 400 13.204 14.758 5.744 7.596 15.186 26.9S 500 13.981 15.924 6.670 8.985 18.030 33.05 600 14.758 17.089 7.596 10.374 20.874 39.16 700 15.535 18.255 8.522 11.763 23.718 45.28 800 16.312 19.420 9.448 13.152 26.562 51.37 900 17.089 20.586 10.374 14.541 29.406 57.47 1,000 17.866 21.751 11.300 15.930 32.250 63.58 1,100 18.643 22.917 12.226 17.319 35.094 69.68 1.200 19.420 24.082 13.152 18.708 37.938 75.79 * Water and motor carrier costs include operating expenses, rents, and taxes plus return on investment. Rail carrier costs include operating expenses, rents, and taxes, increased by the amount of the passenger deficit and return on investment. 202 |