Transmarine "Sells" Port Newark to Nation's Shippers THIS By A. M. SULLIVAN HIS is the age of intensive specialization. The man or company, neglecting this obvious fact is certain to suffer for carelessness. For years New York had a monopoly of the export and import business, as well as being the hub of domestic distribution for a highly concentrated area now claiming close to ten millions of people. Like all who have a sure thing, the Port of New York paid little attention to the modernization of its facilities for the efficient handling and distribution of freight. The result of this policy was sadly apparent during the early days of the war when one will recall the daily picture of West Street trucks, hundreds of them in line, cluttered docks, and thousands of tons of freight lying about on wharves and in warehouses. The cost of handling became extravagant and the natural result followed. Shippers began using other ports. Philadelphia Baltimore and Norfolk cut heavily into the New York tonnage and new shipping lines were established. Then some one discovered that these young ports could handle shipments directly from the ship's hold to and from the warehouse platform and the railroad car. That meant lower handling charges less pilferage, and lower insurance. But as much as the newer ports could compete with New York in foreign commerce, there was no way of diverting the huge domestic business. The population was still in the purlieus of Manhattan. The man who wanted to sell in this market had to come to New York, and put up with the inconveniences of trying to sell his wares on an overcrowed, and "topsily" developed island. Some shippers had heard that there was an attempt to create a Port on the west shore of Newark Bay, but the dye-in-wool steamship operator in Manhattan sneered, and said it was a fool experiment begun by a city that wanted to waste its taxpayers' money, and tested by a altruistic corporation in the establishment of a Port and steamship line. It was about three years ago, that the shipper conceded he must burn his hand to get the nut out of the fire. It seemed inevitable that he must suffer the trials of dealing on the tight little isle in order to get a share of the business. Opinions and times have altered in the past two or three years. No one was more ignorant of shipping fundamentals than the manufacturer, and no one more difficult to whom to sell a new idea than the railroad official who could only think in terms of New York City. The educational process has been carried along at a great expense to the City of Newark and to the Transmarine Steamship Lines, and the accumulative value of the effort is now evident. The Newark City engineers began with a theory. That theory was that a port should be on the mainland as near the principal railroad freight terminals as possible, and easily accessible to vehicular traffic. Port Newark had potential qualifications of such a port. When the officers of When the officers of the Submarine Boat Corporation organized the Transmarine Line, they accepted the logic of the city engineers, and added a few reasons of their own. genuine port must have proper mechanical facilities for the expeditious handling of freight over the ship's side to flat car and warehouse. The Transmarine Line had 4000 feet of dock to use, a fleet of 32 steel steamers A totalling 160,000 tons deadweight and a fleet of tugs and barges. For three years representatives of the Transmarine Lines travelled through 20 states preaching the economic gospel of Port Newark. The first sermon seldom makes any converts, but they kept religiously to the policy of putting Port Newark on the map. The Gradually experimental shipments were made to the theory was receiving the severest kind of a test. Gulf Ports and later to the Pacific Coast via Transmarine. The new port stood up well under severe competition from the established lines on Manhattan. Suddenly, shippers began to understand that a car going to Port Newark usually beat the car going to the steamer at New York by an average of three to five days. That meant quite an influx of freight, as months rolled by. The experiment was proving successful in spite of doldrum days in the shipping business,-in spite of petty inuendoes from a wondering group of New York steamship owners, and in spite of myriad minor obstacles that rose daily in the path of the operating company. Now freight comes to Port Newark Terminal from states having a population of nearly fifty percent of the nation's total. Other steamship lines, and terminal companies are coming to Port Newark and the Transmarine Line welcomes them. Transmarine put Port Newark on the map as the map as an important lumber terminal. Now with the aid of Weyerhauser, it will be undoubtedly the leading lumber port on the Atlantic Coast. Sears-Roebuck and Kenna Terminals show that Newark is the ideal concentration point for the manufacturer in the Middle West. Here is the vital spot for the distribution of goods and foodstuffs to a consuming population of 19,000,000 in the 90 mile radius of New York. Day and night there is trek of motor trucks in and out of the port to points as far as Philadelphia. Switch engines are incessantly shunting freight cars from docks to classifications yards of the five trunk lines entering the port and passing through Newark. Last year Transmarine handled over a half million tons of freight,- this year Vice President H. R. Sutphen anticipates a total of a million and a half tons, mainly to the Gulf and Pacific Coast ports. And, the pioneers are not yet through with their educational program. educational program. Satisfied shippers are helping them to preach the good word of transportation efficency, and the hardest task is over. Port Newark no longer has to justify its claims to superiority in New York harbor. However, the new port and terminal will function better when it is more populated with those industries which create freight, and serve as a magnet for the steamer, railroad car, and motor truck. Sensible factory owners in Manhattan are now seeing the light and the Newark meadows are adding new factories by the score. All of which portends well for the future of Newark, and the Transmarine Lines. The experiment appears to be successful, and vision of the builders justified. Proposed Bill to Let Shipping Board Operate Ships BILL authorizing the Shipping Board to use not exceeding $15,000,000 of the board's construction loan fund to keep in operation lines taken back from purchasers because of foreign competition was introduced in the Senate on January 29 by Senator Jones, chairman of the Senate Commerce Committee. The President, under the bill, would have to approve expenditures made from the fund. It is understood that President Coolidge approves the principle underlying the bill. General Lord, Director of the Budget, suggested that instead of making a direct appropriation for the purpose, authorization be obtained. from Congress for use of money in the construction loan fund. Would Amend Section The bill would amend Section 11, of the Merchant Marine Act of 1920, the section creating the construction loan fund, by adding the following there: "That not to exceed $15,000,000 of the construction loan fund herein established is hereby made available for expenditure by the board in the operation of ships or lines or ships which have been or may be taken back from the purchasers by reason of competition or other methods employed by foreign shipowners or operators; Provided, That no expenditure shall be made by the board for this purpose without the prior approval of the President of the United States." There is approximately $70,000,000 in the construction loan fund. A comparatively small amount has been lent for the construction of new ships by private interests. Appeal Is Made Chairman O'Connor, of the Shipping Board, recently submitted to President Coolidge an appeal for funds to be used to operate lines the board had sold and then taken back because foreign competition madt successful operation by the purchaser impossible. The board recently took back the Palmetto Line which had been sold to the Carolina Co. on the ground that foreign competition had made it impossible for the line to operate privately. A drive for a special fund to meet foreign ship competition was begun after the budget estimate of $13,900,000 for the fleet corporation for the next fiscal year, as compared with $24,000,000 fo rthe present fiscal year was announced. If Congress adopts the budget recommendation and also passes the Jones bill, the reduction in the appropriation will be somewhat offset, although only to a limited extent, however, as the special fund of $15,000,000, under the bill, could be drawn on only for the specific purpose of operating lines taken back from purchasers. No Reduction in Ships The Shipping Board, it is understood, even if Congress. appropriates only $13,900,000 to meet the cost of operation of the government fleet, will not further reduce the number of ships in operation. If a deficit in excess of $13,900,000 is incurred, it is understood that the Board will ask Congress to meet it. The course will be followed, it is understood, on the theory that the fleet has been reduced to a minimum now and that further reductions cannot be made, if services now being maintained are continued in operation. To Ventilate the Holland Vehicular Tunnel The Westinghouse Electric and Manufacturing Company, which is to build the eighty-four electric motors for the Holland vehicular tubes under the Hudson River, says in a public statement that the letting of this contract leaves no doubt that the tubes will be completed by the end of 1926, and when the last stroke has been taken the commissions of New York and New Jersey will insist upon a period for trial to make sure that nothing has been forgotten. This period of trial and tests may delay the public opening until March, 1927. In its statement the Westinghouse Company points out that the two tubes will each be a mile and a half long and 29 feet 6 inches in diameter. It tells of the many experiments made before the present plan for ventilating the tubes was decided upon, and then it says: "Every part of the tubes will be supplied with air from two different points, spare equipment will always be held in readiness for use in an emergency, two independent circuits will supply the power and the power itself will be received from independent systems. Any part of the equipment may be destroyed or can be shut down or removed for repairs, yet the ventilation of the tunnel will not be interfered with." Within two years after the project of constructing the tubes was began, vehicular traffic on the Manhattan side, in the neighborhood of Canal Street, increased 100 per cent and since then the increase has been steadily going On the Jersey City side the tunnels have worked many changes in the area of the exit and entrance plazas, property values have grown, old buildings are being torn on. down to make room for great business structures, and the New Jersey highways have since been laid out with a view of making easy connection with the tubes from all parts of the State. Real estate men say that whatever doubt existed concerning the effect of the tunnels on realty on both sides of the Hudson at the beginning of the tunnel work, the doubt has been dispelled, and that the success of the tubes is now so certain that already both the States of New York and New Jersey are beginning to figure on the building of more vehicular tubes. Harmony Reigns in Shipping Board The Shipping Board late last month inaugurated a new policy by having Elmer E. Crowley, President of the Fleet Corporation attend the session and be permitted to engage in the consideration of all matters that concern the government fleet. It is planned to have Captain Crowley present at all future meetings of the board. The board also directed Captain Crowley to make an investigation of the operation of the Admiral- Oriental Line, operated from the West Coast to the Orient, with a view to reporting back to the board on the question of offering the service for sale or changing the present operating arrangement. The tonnage is now operated for the Government by the Dollar interests which some months ago purchased the government ships operated by the Pacific Mail Company. SHIP NEWS PLANTS Robins Dry Dock & Erie Basin, Brooklyn, N.Y. Tietjen & Lang Todd Dry Dock Engineering & Repair Corporation Foot of 23rd St., Brooklyn, N.Y. Todd Shipbuilding & Todd Engineering, Dry Dock & Repair Co. New Orleans, La. Todd Dry Dock & Todd Dry Docks, Inc. Harbor Island, 16th Ave., S.W. Seattle, Wash. Todd Oil Burners, Ltd. THE HE value of shipyard service to you depends upon experience and location of plants. Todd experience covers all phases of building, repair, and conversion of ships; Diesel Engine work and Electric Drive installations; all problems of oil burning. Todd plants are all along the United States coastline. Todd engineers are in principal ports of the world ready to render the Todd standard of service TODD SHIPYARDS CORPORATION Main Office: 25 Broadway, New York Ship Builders and Repairers-Engineers-Boiler Makers-Parsons Turbines Twenty-Two Floating Dry Docks Two Gravings Docks Twelve Shipways TODD NEW YORK,U.S.A. THE AND SHIP NEWS PORT OF NEW YORK AND SHIP NEWS Published Monthly by THE PORT OF NEW YORK PUBLICITY CO. Editor Advertising Rates on Application. Subscription $3.00 per Year in the United "Morgan Line" a Pioneer in Coastwise Trade, by A. M. Sullivan ... Staten Island, A.D., 1925, by Henry Clark Davis, Pres. Empire Builders, Progress of Port Newark, Protect Industrial Survey of 1926, by Harrison S. Colburn.. The enormous basin in the North American continent which maps term the Gulf of Mexico, reaches half way to California. That meant that a combination sea and land journey would be the most practicable. The result was the development of the Port of Galveston as the logical gateway. Gradually the pioneers added rail, spike, culvert, and tunnel until the iron horse was able to gallop speedily, and securely over mesa and mountain along the Sunset trail to the Pacific. Behind him came the sturdy people who have contributed to the building of the empire-adventurous men and courageous women who came prepared to wrest a living from the plains, or discover the treasures of the hills. When one goes to California over the Sunset route today in a most luxurious fashion, he is grateful for the vision and indomitable energy of the men who made it No. 2 possible. From the earliest days of the Morgan Line to the present time, the Southern Pacific System has been signally blessed with its executive force. From the intrepid Morgan to Lewis J. Spence is a jump of two generations, and yet the history of the S. P. Lines is one of uninterrupted progress. Some day, when the history of the empire of the southwest is written, proper credit will be given for its peaceful but none the less hazardous conquest. When that day comes, the scribe will conscientiously write Southern Pacific at the head of the page. 3-9 10 12 15-16 17 ..18-19 Three-quarters of a century ago, gold was discovered in California. About the time of that epochal finding by Marshall, Charles Morgan began his steamship line from New Orleans to other ports in the Gulf. There may seem no apparent relativity in the two events yet, one was a cause and the other an effect, in the creation of the empire of the southwest. The Morgan Line was the forerunner of the great Southern Pacific system of steamship lines and railroads which have made possible the growth of Texas, the opening of Arizona and New Mexico. These were the trail builders into the prosperous valleys of Southern California. It is not our purpose to go into historic details; they appear elsewhere in this issue. But let us consider the vision of the pioneers. When Commerce and Adventure demanded a quick route to the gold fields, these leaders saw that the southern gateway was the best. It was longer, of course, but it is more economical to carry freight a mile at sea than a half mile overland. And in those early days, it was quicker and safer. Progress of Port Newark Newark has had dreams of a deep sea port for more than a century, but not until a decade ago was there any physical effort to make the dream a reality. Local business men liked to discuss the possibility, and yet it was amazing how many doubting Thomases. shook their heads when the first dredges began to dig the ship canal. Some grumbled,—some protested loudly about the waste of civic funds in such a foolish undertaking. It took courage to keep on in face of irritating sneers, but the men who had the vision of a deep water terminal for the five large transcontinental railroads entering New York Harbor kept dogfedly to the task. The work had progressed sufficiently to attract the attention of the government during the early days of the war, and Newark Bay soon had a huge shipyard and Army Supply Base. Soon, large ships were creeping in and out of the bay, yet Port Newark had not really began to function as a port. The channel was yet too shallow for fully-laden boats. The government was asked to cooperate, but it was quite apparent that several years would elapse before the slow-moving machinery at Washington would furnish funds for the purpose. The same men who were conspicious in the starting the Port development in 1914, called upon the city to provide money for the dredging of the bay channel. Once more there were howls, but the money was provided and the dredging started. That was only four years ago, and yet during 1925 more than a half million tons of freight were handled over the docks at AND SHIP NEWS Port Newark. Today, Port Newark is one of the most inportant lumber terminals on the Atlantic Coast, and will unquestionably be the leading lumber port in 1926. Conspicious among the champions of Port Newark, has been Thomas L. Raymond, now Mayor of the city. Not satisfied with creating a port, and building over two miles of docks, he devised the agency for selling the merits of the port all over the country. His organization includes a publicity expert, a trade consultant, and a real estate specialist. Their coordinated efforts have resulted in attracting huge industries to the strategic sites on the bay front. With a host of obstacles overcome, Newark now stands ready to bear its share of the tonnage of the Port of New York. The year of 1926 promises to be an auspicious one, and the shipping world watches with interest the manner in which the new port will make use of its natural qualifications as a steamship terminal. Protect American Shipbuilders Even if there is some doubt as to the best policy for this country to adopt for the protection of American ships in foreign trade that is to say, for the protection of the woners of them-there should not be and there need not be any doubt whatever of the justice of protecting our shipbuilders by denying American registry to foreign-built vessels, a denial of registry that should extend to foreign-built yachts; they too, should not be permitted to become American vessels. The builders of American ships are just as much. entitled to protection against foreign builders as the owners of American ships are entitled to protection against foreign ships-no one can deny this, and least of all should Congress attempt to deny it, by longer permitting any foreign-built vessels to become documented vessels of the United States. From 1792 until 1912 American builders of ships for foreign trade were protected against foreign-built ships through the denial of American registry to the latter for one hundred and twenty successive years! But it had been held by free traders that the solution of the American problem was through the free admission of foreign-built ships to American registry, an utterly ridiculous claim, which protectionists consistently denied. In the Panama Canal Act of 1912 provision was made for the admission to American registry of any foreign-built American owned vessel not over five years old, and at the end of two years not one foreign-built vessel had come under American registry-not one! Thus free traders were confounded and protectionists proven to be right. It was a fact, however, that some 2,000,000 tons of foreign-built vessels, under foreign flags, were owned by Americans, but not one of them sought our registry. When the war broke out in 1914, then, of course, conditions changed. Then American owners of vessels under foreign flags were eager to get them under a neutral flag, and so our laws were amended (on Aug. 18, 1914) as to admit any foreign-built American-owned vessel, a law that was a purely war measure, that has never been repealed, but that should be repealed forthwith and the original law of 1792 denying American registry to foreign-built vessels, including yachts, restored. There is no reason on earth for further delay in doing this. Protect American shipbuilders! Winthrop L. Marvin 1863-1926 The whole shipping world was shocked to hear of the sudden death of Winthrop L. Marvin, owner and publisher of the Marine Journal, on Feb. 3. The American Merchant Marine has lost a staunch advocate, and THE PORT OF NEW YORK AND SHIP NEWS feels a keen personal loss in a genuine friend. Mr. Marvin was a native of New Castle, New Hamshire, and the son of a seafaring father. He was educated in the schools of his native town, and at an early age went into newspaper work at Boston, rising to the position of Editor of the Boston Journal. He was a prolific writer on American shipping, and also on economic subjects, and from early life took a deep interest in the principles of a protective tariff. This brought him into contact with many of the leading textile manufacturers of New England, and eventually led to his selection to fill the part of secretary and confidential manager of an association they maintained, with headquarters at Boston. In this connection Mr. Marvin became close friend and confidant of of William M. Wood in the years when the latter was laying the foundation of the American Woolen Company. His sagacity and knowledge of public affairs were highly prized by Mr. Wood. For many years Mr. Wood took no important business step in which he did not seek the counsel of Mr. Marvin. As years went on Mr. Marvin's interest in the development of the American Merchant Marine assumed a paramount position in his daily thoughts, and in 1920 he accepted an invitation to come to New York and take charge of the administration of The American Steamship Owners' Association, of which he was soon made VicePresident and General Manager, which position he held at the time of his death. On coming to New York he also bought a half interest in the Marine Journal, a weekly newspaper. Later he became sole proprietor of the paper, which he owned at his death. Mr. Marvin was a graceful and ready writer, and did much with his pen to advance American maritime interests. When solicited by his Boston friends to return to Massachusetts, and resume his old position there in the textile world, he always said, "I cannot leave shipping; it has grown to be my life. The issues are too great to be abandoned by any friend of the American merchant marine." |