Morning Oregonian. (Portland, Or.) 1861-1937, January 01, 1912, SECTION THREE, Page 4, Image 36

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    TTTE 3IOKXIXG OKEGOXIAN, MONDAY, JANUARY
1913.
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HAT fpnture lo grlect brut to
pliahlse Porttaml'a proi(Tprtty In
marittnie rhannrla one that
MuM atanl . forth predominant of the
divrsifil traloa that culminate In htt
prilgo over Northwent harbors Is not
ilnnf dlffliult. but m romparlaon mlirht
tlufce.of unfulrnena or tend to belittle
the things thut In their war K to make
tip a period, stretrhed over the past 12
month', that Is epoch maklna-.
To those at home, in Portland and'
throughout the state, the advancement
Is not so strikingly apparent, for we are
prone to applaud a s;ain In one depart
ment because' It Is prominently lllus
trated for some reason, yet overlook
another source of ureater revenue
through KrowinK trade. Hut outsiders
have watched the budding of a new era
In water commerce and even to them a
full realisation la not possible until
farts are completely iclven. whfc-h In
short mean actual figures backed by
the traditional conviction that "they
never lie."
It is not simply the marts of trade
linked to Portland by virtue of export
or coastwise movements that have,
drawn attention from the world, yet
they have served in their way to In
fluence the Interests that are competing:
for future power on the ocean, to se
lect Portland as a basla from which to
draw, and likewise to send cargoes that
will pass through the Tanama Canal in
another two years. Arguments may be
aired that San Pleiio will grow best
because Its location is nearer the Pa
cific entrance to the canal: that Los
Angeles will reap Innumerable bene
fits owing to her push and energy and
newness of her harbor work; that San
Francisco will continue In her posi
tion as queen of the coast as the gate
way to the Far East that railroad and
steamship backing" has striven to up.
bold, but Portland's position Is kingly
over all", for t!ie law of gravitation and
the Creator's handiwork have made the
city the entrance to the basin of the
vast wheat and lumoer resources of the
Northwest, products which the East
must come after.
James J. Hill has said that in a com
paratively few yeHrs the wheat ex
portation of the United Statvs will have
prai-tlcaily ceased. In many ways ex
porters say his prediction is being
borne out. and that feeling; is accentu
ated In the last statistical report of the
lersrtment f Commerce and Labor,
which gives Portland first place above
all districts in the growth column, her
cereal exportations having gained 15
per -cent In a year, while New York's
business has declined, as well as that
( Baltimore and other districts that a
few years ago easily led. The results
do not show a reduction In the yield
or acreage sown, but a rapidly grow
ing home consumption. Last year the
Northwest Increased Its wheat output,
and most of lfc.lo be floated has either
moved or is awaiting transportation via
Portland.
Many things have combined to lessen
the growth expected in lumber exports,
but the Inauguration during the year of
the service of the California A Atlantic
Steamship Company proved that the'
Fast Is in the. market for Oregon tlm-
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truck, haul to the private warehouse
of the Jobber or the plant of the manu
facturer. The strategic points r the
harbor, then, are as follows: For trans
shipment those pointa In the Willam
ette River that are below the city
bridges where the water Is deep, the
channel broad and where the site fur
nishes sufficient ground for A ware
house system in the rear, and, for local
traffic, those points alongr the river
where th ship can be-docked as near
as possible to the several jobbing and
manufacturing centers of the city.
Personally, I have no doubt that the
Board of Consultation In the location
of the city's water terminals will fol
low the above indicated plan. In so
doing justice will be done in the solu
tion of the general dock problem, and
each locality will stand strictly upon
merit. Of course, no matter where our
municipal docks are located there will
be some who will express disappoint
ment. In this particular we are all
human, but it seems to mo that the
commission has pursued a wise policy
in securing a board composed of the
best talent obtainable In the United
States and that the commission should
sustain the opinion of Its expert board
seems equally wise.
On its financial side Portland's future
dock system presents an initial prob
lem of interest. That the aim of the
near future should be that the city own
and ' control its entire water front
seems desirable. To demonstrate that
this can be done without undue finan-
than Z.S00.000 to its credit, and Balti
more, now admitted to be the holder of
a third place, will have to recover a
lead of over 1.000,000 bushels to Inter
cept Portland In the race. In Just the
same amount Puget Sound has declined
In the exports of a year ago.
But wheat ami lumber sent abroad do
not detract from the activity depletes,
in the Coast trade. A perusal of condl.
Hons for 11 years point step by step or
year by year to greater growth In the
number uf vessels and the combined
tonnage. To the North Portland is not
a factor, and has made no bid for the
trade of Alaska, but she has so en
twined herself In the advancement of
the Southland that where a few years
ago there was a straggling fleet wend
ing Its way up and down the Coast,
there Is today a steady line of steam
ers plying from Portland to San Fran
cisco, Los -.Angeles and San . Plegot
North-bound cargoes are not so- heavy,
but thousands of tons might be stored
la docks here of commodities offered
for shipment, and even with the addi
tion of larger and faster carriers the
combined capacity la Insufficient.
Custom-House records show that In
sailing every live days, has swelled ag
gregate shipping in no small way, while
the coming of the fleet of the California
A Atlantic Steamship Company during
the year, more vessels operated exclu
sively on the Oregon Coast route and
many more factors combine to account
for the tremendous Increase.
Passenger travel to and from Port
land by water was heavier during the
year than ever before, despite more
facilities on the regular lines, and a
material addition to the independent
fleet. The steamer Beaver carried the
record load in October of 800. persons.
Individuals have fostered harbor Im
provements in the way of dock facili
ties, but as the Commission of Public
'Docks has actively begun its prelimi
nary labors toward selecting sites for
municipal wharves, property owners
are generally delaying new work until
it is ascertained . where the public
structures will be located and on their
proximity to existing docks will de-
pend the Influence on private projects.
Channel betterments will form much
of the coming year's work "On the part
' of the Government engineers and Port
of Portland Commission, as three aw
dredges are to be built for Increasing
the depth of the road to the sea to 30
feet, and the diggers will be used to
maintain the depth. Of Interest also
to those concerned in the welfare of
the harbor is the beginning of the
north Jetty project at the mouth of the
Columbia, the south Jetty being almost
completed.
If conditions warrant, the Port ol
Portland Is prepared to add to its tow
ing fleet In port and on the river, and
as the Puget Sound Tugboat Company
entered the field less than a year ago.
there are ample means available for
handling grain and lumber ships to
and from the ocean.
Steamboat lines plying from Portland
to points on the Columbia and Willam
ette are prosperous, and additions are
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contemplated to care for growing trade
from the valleys that now exceeds the
transportation equipment.
ISO there were 253 vessels to enter
ber. shipments having been materially V from coastwise ports, with a total ton-
rurtalled owing to limited railroad fa- ' nage of J1.TS. and 151 vessels clesred
cutties across the Isthmus and the
company was unable to operate suffi
cient vessels to handle lumber ready
for shipment. ,
'Therefore, natural deductions have
been made that with the canal accessi
ble there will be a free movement of
wheal and lumber. It is pointed out
that, while foreign vessels cannot trade
from one port to another In the I'nlled
States, European Interests will no
doubt load their carriers across the
Atlantic head first for New York and
discharge part cargoes, and then con
tinue to the Pacific Coast via the canal
loading back with Western products.
If history repeats Itself in the East,
another short wheat crop will result In
the cereal being taken from the Pa
cific to the Atlantic oy water. Instead
of by rail, as was the rasa a few years
ago. while the Initial steps have been
taken for steamers of special construc
tion that will ply front the Pacific
Northwest to the Atlantic side with
great cargoes of lumber.
In. wheat exports. Portland bows to
but one district under the Mars and
Stripes that boasts supremacy during
the year. New York having taken first
place. When complete return are tab
ulated for the year Just close!. It will
be seen that Portland has floated close
to t. 009. Ooe bushels, and unless New
Tork's .trails tskes a sudden Jump she
will probably lead the Union. In the
same time Pugt Sound will .have leas
coastwise with a tonnag of 13.!3.
In 1908 the fleet that entered numbered
Ul vessels of i:0,49 tons and t23
cleared of 657.394 tons. In 109 the
traffic had grown to 711 vessels enter
ing of-S:.603 tons and :o clearing
of 6S1.11 tons, and in JS10. entered 838.
of a combined tonnage of tsi.273, and
710 cleared representing 781,03: tons.
For 1911 the fleet is credited with. 04
vessels entering, having a tonnage of
1.143. 923, and there were cleared . 501 "
carrtar of 43.:3 tons.
The discrepancy between the number
of vessels cleared as compared with
those entered is accounted for through
the fact many foreign carriers come to
the. Coast with cargoes and discharge
part of them at other ports and proceed
here .to finish, or come In ballast after
unloading elsewhere, and when they
load outward are not Included In the
coastwise tabulations, unless they call
at another Coast harbor to 'complete
cargoes.
The tables show a greater number of
carriers In the Coast trade, consequently
the tonnage is vastly increased, but that
Is also due to larger vessels being in
the trade and the numerous big car
riers that have come from Coast points
to load offshore. The gain in tonnage
of the Ssn Francisco A Portland Steam
ship Company through the operation of
the new steamers Bear and Beaver In
conjunction with the Rose City, ope
rating op echad u s. 1U&J, xtnuJdea for
EXPERTS ARE .AT WORK ON ELABORATE
SYSTEM OF PUBLIC DOCKS IN THIS CITY
.
Fund of $2,500,000 Has Been Provided by Taxpayers and More Will Probably Be Required Needs of
l City. Studied in Anticipation of Panama Canal Business. r
By F. W. Hotkey, Chairman Cosaaalsaloa
af Public Docks.
THE Board of Consulting Engineers,
engaged to prepare a comprehen
sive plan for a port ,-rmlnal for
the City of Portland, has not as yet
submitted Its plan to the Commission
of Public Docks. Until the labors of
this board are completed it is impos
sible to say just how much of the work
will be undertaken during the year
191J.'
A system of public-owned docks must
contemplate more than the construction
of mere piers snd quays having sheds
upon the upper deck. To be effective
the sheds upon piers and quays must
be transient sheds, that Is, used only
for the temporary storage of freight.
In the rear of these piers or quays must
be constructed warehouses for the
storage of freight that is to remain in
storage for more than 24 hours.
Between the piers and the ware
houses It will be necessary to make
provision for truckage and rati trans
portation In such manner that there
shall be no Interference between trucks
PUBLIC DOCK PLANS UNDER
WAV.
Control of Portland's water
front is in the hands of a Com
mission of Public Dock a au
thorized by Initiative charter
amendment on November 8, 1910.
This commission is composed of
F. w. Mulkey. Ben Selling,
George M. Cornwall, C. B. Moores
and Dan Kellaher. The commis
sion Is empowered to act for the
City of Portland in purchaelns;,
selling and leaning; waterfront
property. The act that created
the Commission also authorized
It to raise $:.600.000 by sale of
bonds, and. to spend this as the
first step In the acquisition of
public docks. - The Commission
has employed G. B. Hegardt as
temporary engineer.
.
and cars. Such a system Is known as a
"complete terminal"; that Is rail traf.
flc and the water traffic are brought
together and interchanged through the
medium of dock terminals.
If the dock terminals be clen.tiflcaliy
and properly equipped with labor-saving
mechanical devices and free to all
shipping It can at once be seen that
the last link in successful water trans
portation will have been forced. In
other words, water transportation can
never be made competitive with ' rail
transportation unless the dock terminal
charges be reduced to the lowest po
slble point. .
This may be illustrated in the appor
tionment of the water haul cost be
tween Buffalo-and Chicago; one-third
of the cost arises in dock charges aj
Buffalo, one-third by the water haul
and one-third In dock charges at Chi
cago, so that two-thirds of the entire
cost represents terminal charges. Now
as a matter of fact, as far as ' general
freight 1b concerned, neither Buffalo
nor Chicago has . an economical dock
terminal system.- If these cities were
to have modern dock installation it can
be seen that the ensuing reduction that
would at once occur would be In the
Items representing the largest propor
tion of the entire water transportation
cost.
In anjr seaj?ort the freijilit of the port
. can be divided into two general classes;
first, that', which is transshipped;
second, that which is consumed -locally.
Of these two classes the freight which
Is transshipped represents in volume
and In financial return the most im
portant part of the commerce of a port
Therefore, in a harbor development the
transshipment business should receive
the first attention. A dock system con
structed to accommodate this class of
business should be located in close
proximity to all the rail lines entering
" the city; should be in that portion of
.the harbor that is least obstructed by
bridges and at a point where the width
of the harbor is such that large vessels
may easily maneuver. Through a sys
tem of this kind must be brought, eith
er by rail or water, freight from' the
port's natural territory. To accommo
date this business and to load and un
load with despatch requires the most
modern mechanical equipment obtain
able, and as a necessary auxiliary there
must be a system of warehouses in the
rear of the docks to take care of freight
while the same is being collected for
shipment.
On the other hand, the freight that
is either assembled for shipment as the
result of-the activity of tb manufac-.
turing Industries of the port itself or
that comes to the port for local con
sumption presents a different terminal
problem. '
Such traffic comes to the ship's side
not by rail or river transportation, but
by truck. -Again, it leaves the ship to
go to the warehouse of the Jobber or
the plant of the manufacturer. In such
cases as these, then, the docks for the
local business of the port should be
located at those several points of the
harbor which will furnish the shortest
cial burden upon the city will require
that there be sufficient earnings from
the initial investment to pay interest
on outstanding bonds and to provide a
sinking fund to pay the bonds at their
maturity. , -
That revenue for Buch purposes can
be obtained at once I do not doubt.
The way that such revenue could be
obtained would e to lease the docks,
but I doubt the wisdom of such a
policy. Wherever such a policy, has
been followed it has obtained the neces
sary revenue, but the revenue has been
obtained at the expense of open ship
ping. As between revenue and open
shipping, the latter is the more lm-.
portant. If a sacrifice must be made
it should be that of revenue and not of
open shipping.
Probably i:ie best available plan will
be to operate the docks themselves as
a municipal utility and lease the ware
houses under leases containing proper
safeguards. If this policy be followed
there is no reason why eventually the
dock system could not take care of the
interest on the outstanding bonds and
furnish revenue for a sinking fund, that
would retire the bonds at their matur
ity, especially If the bonds te long
term bonds: that is 75 to 100-year
bonds. In such case the amount to
be carried - to the sinking fund each
year would be very small, and if the
dock revenue furnished the Interest
and the sinking fund required there
would be no tax burden on the people
of the city. The most Important thing
in the case of long-term bonds is that
the term that the bonds have to run
should not exceed the economic or phy
sical life of the utility, but In my opin
ion the economic ltefe of a public docks
Is over 100 years and the physical life
at least 100 years, taking Into account,
however, the depreciation of 'mechani
cal equipment, for which a separate
depreciation fund should be carried.