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Show ize the benefits to farmers of the Missouri and Arkansas Basins which would flow from increas- ing the value of their grain 5 to 10 cents a bushel through lower transportation charges to market; the benefits to both producers and consumers from moving the coal and other mineral and forest products of the Tennessee, Arkansas, and Missouri River Basins at substantially lower rates, thus increasing their dollar value as raw ma- terials and putting them to economic use where they now are undeveloped. One must consider how industries and industrial population con- centrate aroxind navigable water, creating work, income, new traffic for other modes of transport, and wealth for people, bringing farms and mar- kets, producers and consumers closer together, making living conditions better for farmers and industrial workers alike. (See Appendix 5.) Federal Barge Lines Federal Barge Lines had its inception in 1918. After 1917 the movement of freight on the Mis- sissippi River System (including the Warrior River) had about disappeared. Its service was begun by the United States Railroad Administra- tion pursuant to directions contained in the Fed- eral Control Act of March 21, 1918. Since 1924 the service has been operated by the Inland Waterways Corporation, created by act of Congress. Federal Barge Lines was intended from the be- ginning as a. pioneer operation with the mission of rehabilitating river transportation and further- ing the development of less-than-bargeload traf- fic and a system of joint rail-barge rates which it was hoped would bring the advantages of water transportation to shippers at interior points. The eventual aim was the disposition of the line to private interests after these purposes had been accomplished, subject to guarantees that the same type of service would be continued. The princi- pal present private barge operations came into existence after the establishment of service by Federal. While these carriers are generally in a sound economic condition, Federal has shown a net operating loss over a period since 1924, due partly to the developmental purposes for which it was created, and to some extent in recent years to obsolete equipment. The total freight car- ried on the Mississippi System in 1948 amounted to 26,256,687 net tons. Because increased terminal costs have made merchandise freight unattractive, the barge lines in recent years have concentrated on bulk or heavy types of traffic. In consequence, there has been a steady decline in the barge movement of the types of traffic handled in connection with railroads. In fact, some of the lines have placed embargoes against rail-barge carload and less- than-carload freight because of losses sustained in the handling of this type of interchange traffic. The Interstate Commerce Commission in its most recent decision dealing with joint rail-barge rates (270 I. C. C. 591) after an appraisal of the facts stated that- * * * we cannot find that at the present time there are demonstrable economies in barge-rail transportation on the Mississippi River and its tributaries including the Warrior, which from the standpoint of cost of service would justify differ- entials. Pursuant to its interpretation of the policy of Congress, however, the Commission found that through routes and joint rates for barge-rail trans- portation were necessary and desirable in the public interest and prescribed a system of differen- tials between all-rail rates and joint barge-rail rates. The great expansion of river service and use since 1924 may be credited in large measure to the pioneering activities of Federal Barge Lines. Although the nature of its mission may well ex- plain why the operation has not been an economic success in itself, the experiment has paid tremen- dously in public benefits from the steady increase in river transportation over the last 25 years. Attention is now being given by Federal and other barge lines to the use of trailers or other containers as a means of overcoming the present high cost of handling merchandise traffic. A re- vival of rail-barge traffic to substantial propor- tions clearly is not foreclosed. 204 |