TTTE 3IOKXIXG OKEGOXIAN, MONDAY, JANUARY 1913. PORTb COASTWISE GAINS AND ew" f r ' - . Sl I, 1 - s if ass 7W csTra; c- ft f W "F1 W " -Of S sr;f--f Tort- z ' t & ft ii--;m--iV.-iffriirtitttih&i"friiA v 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- -A -r r i sr' sjsjsjssjsjb hxmjs- ,v-Sgg nssBssnaBnsssp VV q3 -T- -ririwj 1 I 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 A HZ - 1 1 J M m1 z fi' r V ?4Mk olbJr SM t" A 1 ' r $ - . .:,! - - - . -a. 'T&uyzezr bjst trsjp cje4 wd- UP 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.