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Hinders Use of N. Y. Barge Canal Operation of Federal Railroad Administration on the New York State Barge Canal Retards Expansion by Private Operators EW YORK'S expensive state N barge canal has proved of greater benefit to the traiic passing through. the state than to purely intrastate traffic. This. water- ways system, which cost the state $175,000,000 to build, is consequently giving its benefits to the middle west and the export trade. Since the state assesses no charge for operating on the canal, the benefits to national commerce contributed by the state can readily be seen. The state merely collects a terminal charge against the barge lines using those terminals. A wharfage of 30 cents a day against a boat light, and 50 cents a day against a barge loaded, is collected. The state is now equip- ping the terminals in the harbor of New York with sheds, cranes, etc., and when these are completed it is planned to assess in addition a top wharfage charge. These are the only sources of revenue which the state retains with which to meet the in- terest on the investment and the daily operating cost of the canal. Up to the last week in July less than 50,000 tons of coal had been carried through the canal this season, notwithstanding' the increased demand for coal, and the car shortage on the railroads. The demand for coal in New York is not only local but ex- port: agents have been combing the country. for which are operated under a towing service provided by the state. While there are only four operators who control or own fleets on the canal there are many individuals who have been providing a service during the past season. According to an esti- mate made by the superintendent of public works, the waterway carried 458,310 tons of cargo this season to the first week in August. That total represents an increase of approxi- mately 100,000 tons over the corre- sponding period of last year. Canal rates are variable and are made to meet conditions obtaining at the time the cargo is offered. rates, however, have been published in tariff form by the railroad adminis- tration, and the New York-Buffalo canal rate is 10 cents first class and 3 cents sixth class under the all-rail rate. Rates are also published from New England points via _ rail-canal- and-lake to western territory which are-i20; cents: first class: and 6 "cents sixth class under the standard rail rate. As descriptive of bulk cargo rates, independent boatment have been carrying pig iron and steel articles from Buffalo 'to New York at a rate of $2.65 per gross ton. The wheat rate has been $4.33 per 100 weight for export. Rye, corn and _ barlev rates have been the same. Generally speaking, the rates on bulk cargo in Class. boatload quantities have been from 30 to 40 per cent less than the rail rate. Due to the fact that the government is operating the largest of the fleets as well as the railroads, some state public officials have become appre- hensive and are pointing out that whereas it was intended to forbid the railroads the use of the canal so as to bring about a water competition with the rail lines, the practical effect of what is now being done is to nullify this intent entirely. There has also been considerable disappoint- ment over the 'light movement of grain, but the private operators. say that it is not profitable for them to move rye and similar grain and that they prefer to take the heavy cargoes upon which a more profitable return is earned. Edward S. .Walsh, state superin- tendent of public works, declared that the conditions' obtaining this season, which have so far prohibited the waterway carrying its share of the grain traffic, might have been over- come if adequate state-owned grain elevators had been available in New York and Buffalo. Bulky freight of all kinds can be moved to advantage on the canal but it will require the initiative of business men, and par- ticularly those of New York and Buffalo, to get the canal. started prop- ; erly. The re- some tonnage to ship to South America and Eu- Tope. The op- portunities, have been unprece- dented, but this light movement has been due to the lack of float- ing equipment. There is but one Private operator of barges who fan move any Steat tonnage, but the private Operators insist that they cannot do much in com- Petition with the S0vernment- Owned line. The Independen t Satmen control about 200 boats EIGHT 150-FOOT STEEL CANA L BARGES MOORED IN BUFF ALO HARBOR--THESE VESSELS WERE BUILT FOR THE RAILROAD ADMINISTRATION 475 ce turn of the rail- roads to private control will, of course, help the Situation and make _ possible the realization of some of the earlier -plans. However, there will remain a predominatingly strong canal fleet under govern- ment ownership and operation which will con- tinue a _ specter to private under- | takings along this line. On the first of August, the New York New Jersey ca- nals section of the railroad ad-