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May, 1940 Houston PORT BOOK 19

Wings Over Latin-America

Houstonians’ ~ood-Will Trip Wins Friends

By T. L. EVANSManager, Foreign Trade Department,

Houston Chamber of Commerce

N ’rWSVAVERS of North and South America hailed the goodwill airplane trip to Latin America sponsored by the Hous-ton Chamber of Commerce, the Houston Port Bureau,

and the Houston Foreign Trade Association, as an important con-tribution to neighborly relations.

The trip covered 17,000 miles by air, included visits to 14principal cities in nine countries, and from the standpoint of in-creased trade relations between Pan America and Houston, andTexas, was most opportune.

This was especially so, since the business men of these LatinAmerican countries are anxious to establish trade connections inour country for the purchase of commodities they formerly re-ceived from Europe. Due to the present European war, this sourceof supply is no longer available to them. We should endeavor tomeet their needs in every respect, and thus lay the foundationsfor a more lasting economic relationship.

The present situation is a close parallel to that existing in1914 when we were handed the business of Latin America over-night, which ordinarily would have taken us years to accomplishin the face of strong competition from other nations. And whenthe World War was over, we turned our attention again to thetrade in Europe and neglected our neighbors to the South. Theresult was that this business again returned to Europe.

It is to be hoped that we have profited by our experience inthe past and will at this time endeavor to establish trade connec-

The Oil and Gas Building, Houston, home of Continental0il Gompany.

PORT HOUSTON POPULAR WITHLATIN-AMERICA

The following table gives a word picture of the amountof business that the various ports are receiving from theLatin-Americans:

Export Export Import ImportPort Rank (Tons) Rank (Tons)

New Orleans, La ....... 1Norfolk, Va ............ 2HOUSTON, TEXAS.. 3Baton Rouge, La ......... 4Pt. Arthur, Texas ....... 5Newport, News, Va ...... 6Mobile, Ala ............ 7Baltimore, Md .......... 8Galveston, Texas ........ 9Charleston, S. C ......... I0Beaumont, Texas ....... 11

455,633 2 2,162,789442,490 8 226,260

321,245 6 277,669288,579 5 339,309280,874 10 135,622278,692 (No Imports)158,420 3 364,521151,114 1 2,953,280109,960 9 178,239105,995 7 271,753100,494 (No Imports)

tions on a permanent basis, instead of accepting the present in-crease in trade with Pan America as a temporary expedient toabsorb our losses with nations now engaged in war.

The general opinion seems to be that European naticns exerta great influence in South American countries and in their internalaffairs. We did not find this to be the case. At every place wevisited we found a very definite pro-American feeling and a greatdesire on the part of the people to definitely improve the friendlyrelations now existing between them and the United States.

Our increased trade with Pan America, as well as this friendlyatmosphere, had its beginning with Secretary of State Cordell Hull’sreciprocal trade program. Secretary Hull and the present nationaladministration proceeded on the theory that the Americans are aneconomic as well as geographical unit, and that the best way topromote Pan American understanding and good will was to fostera free and unhampered interchange of commerce.

A striking illustration of the courtesy shown our party wasevidenced in a very pronounced way throughout our trip, but itwill suffice to give one example of the hospitality in one of thecities not on our schedule.

We received an invitaticn to stop our plane there for onehour, and when we arrived, imagine our surprise to find that abarbecue had been prepared for us at the airport, and a greatnumber of business men and ladies were present to greet us, in-cluding a number of Government and City officials.

We were indeed overwhelmed with the outpouring offriendship toward us and the people of our country throughoutour trip.

With such a splendid relationship now existing between thepeople of Latin America and those of our country, and a great

20 Houston PORT BOOK May, 1940

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desire on their part to do business with us, there is no reason whythere should not be a greater increase of our commerce with LatinAmerican countries to the mutual benefit of all concerned.

They were very much impressed with our program of assist-ing them to sell their products by offering to put on display inHouston the products they have to offer in this market, which wasthoroughly convincing of our sincere desire to be of service. Theonly way to promote the interchange of commerce is to recognizethe necessity of buying their products in order to place them ina better position to trade with us.

In other words, we must recognize the indispensable two-waytrade which makes for better understanding, friendship, and goodneighbors--which in the final analysis is a guarantee for everlast-ing peace on this Hemisphere.

I would like to pay tribute to the Federated Women’s Clubsof Texas for having sent with us such a splendid representativein the person of Mrs. Nancy Rupley Armstrong, who commandedthe respect and admiration of the women in these countries forher message of good will to the women of Latin America.

Her efforts will no doubt serve to unite the women of theseccuntries with the women of Texas in their most laudable pro-gram. And we are also grateful for the presence of the other ladiesin our party, since they contributed so much to the success of thisundertaking. Finally, we wish to express our sincere appreciationto the men and women in these Latin American countries for theirmost cordial reception and hospitality extended to us, also thePress for their most generous publicity on the purpose of ourmission.

A Nuestros AmigosDe Sur America

Ahora que llegamos a nuestros hogares despues de haber visitadolas Repfiblicas de Sur Am6rica, abrigamos recuerdos muy g.ratosde nuestra visita, las recepciones eran tan cordiales, que ]areaspodemos olvidar y nunca queremos borrar de nuestra mente lasimpresiones tan gratas, y una vez m~s deseamos expresarles nuestromils sincero agradecimiento por todas las atenciones que se dispen-saron a nuestra Delegacidn y confiamos en que esta visita sea elmedio de atraer una amistad todavia mas estrecha entre los pueblosde sur Am6rica y los de Texas.

T. L. Evans, Gte.Departamento Exterior de laC~mara de Comercio de Houston.

HOUSTON AGAIN LEADS STATEIN BUILDING

BUILDING PERMITS FOR 1939

HOUSTON ..... $25,373,545Dallas ........... 12,831,699San }Antonio ...... 8,431,255Austin .......... 7,107,670Fort Worth ...... 7,084,490Corpus Christi .... 6,567,588Lubbock ........ 3,593,956Amarillo ........ 2,644,126

Galveston ........ $ 1,371,578Wichita Falls ..... 1,277,742Tyler .......... 916,476Odessa .......... 603,097Big Spring ....... 306,503Corsicana ....... 171,613

Total ......... $78,281,338

BUILDING PERMITS FOR PERIOD JANUARY 1TO APRIL 28, 1940, INCL.

HOUSTON ..... $ 8,647,125Corpus Christi 3,673,657Austin ......... 2,765,610Dallas .......... 2,725,747Fort Worth ...... 1,637,982Lubbock ........ 1,580,102San Antonio ..... 1,006,802Galveston ........ 829,402

Amarillo ........ $ 747,466Tyler ........... 430,552Wichita Falls ..... 407,527Odessa .......... 384,791Big Spring ...... 129,799Corsicana ........ 59,091

Total ......... $25,025,653

May, 1940Houston PORT BOOK 21

Restrictive Waterway and Port LegislationTHE WHEELER-LEA TRANSPORTATION BILLmS.2009

Congressman Mansfield ol Texas is Chairman o~ the Riversand Harbors Committee and is thoroughly inJormed on

Waterway Transportation.

"By this Wheeler-Lea bill we are giving to them (the railroads)all our rivers and canMs, and with them a quitclaim deed to theGulf of Mexico and the Atlantic and Pacific Oceans. It is to behoped that the railroad lobby will not demand more of Congressat this time."

REMARKS

OF

HON. JOSEPH J. MANSFIELD

OF TEXAS

IN THE HOUSE OF REPRESENTATIVES

Monday, April 8, 1940

(REPRINT FROM CONGRESSIONAL RECORD)

M R. MANSFIELD. Mr. Speaker, the conference report on theWheeler-Lea transportation bill will doubtless be readyfor consideration at an early day. The general public has no

conception of what is embraced in this complicated scheme of trans-portation. In fact, I believe it can be truthfully said that only avery small minority of the members of Congress fully understand it.

The bill was drafted under the direction of a committee of six,all representing railroad interests. The general public, the shippers,farmers, and others who have all the bills to pay, were never con-sulted, but completely ignored. Under the greatest lobby that hasever invaded the halls of Congress the bill has been whipped andspurred through both Senate and House.

I have only heard two reasons advanced in favor of this legisla-tion. First, that the railroads are in financial distress and should haveincreased compensation for transporting the commerce of thecountry. Second, that the railroads are regulated under the InterstateCommerce Commission, and therefore, all other methods of trans-portation, including not only that upon the rivers, but also ourships upon the oceans and Gulf of Mexico should be regulated inthe same manner, and by the same railroad commission.

The first of these reasons is absolutely without foundation intruth. It is true that the depression of the past 10 years has borneheavily upon every industry, but the record shows that the railroadshave been among those that have been the least affected by it. Table19, page 87, Report of the President’s Committee of Six--the com-mittee that drafted this bill--shows that even during the depressionyears 1930 to 1937 the l’ailroads paid dividends aggregating $1,612,-688,416. Agriculture, even with the hundreds of millions of Gov-ernment aid, was not half so prosperous. During the past year therailroads have been more prosperous than for many years and madetremendous profits.

The contention that because the railroads are under regulation~y the Railway Commission, therefore all our ships upon the oceanmd Gulf of Mexico should be placed under the same Commissionmd regulated in the same manner, is without any reason whatever.in addition to our coast-wise and intercoastal trade, our ships go to:he ports of all countries, and must compete with the ships of other~ations. We pay our seamen higher wages than are paid by other"-ountries and have adopted other measures for their protection.

Any additional and unnecessary burdens to be placed upon our shipswould place them at a great disadvantage in their competition withthe ships of England, France, Germany, Japan, and other maritimenations.

At tremendous cost we are building the greatest Navy of anycountry in the world. All authorities agree that our Navy, withoutan adequate merchant marine to support it, will be absolutely help-less and of no value. A few decades ago only 9 per cent of ourforeign trade was carried in American bottoms. By wise legislationwe have increased that to about 34 per cent. We are yet behindEngland and one or two other maritime nations which carry 50 percent of their foreign commerce in their own ships.

Now, by this transportation bill a bevy of New York bankerswho do not own but who control the railroads and play with themas so many pawns upon the transportation chessboard, are seekingto upset our whole merchant-marine program and subject our oceanships to railroad domination.

The only reason that railroad propaganda advances for thisrevolutionary proposal is, that rail and water transportation shouldbe under the same head and subjected to the same rates of trans-portation charges. If our coastwise shipping is to be placed underrailroad rates, then our merchant marine will soon cease to exist. Itshould be plain to all, that if forced to give to the railroads a largeproportion of the coastwise and intercoastal trade as contemplatedby this bill, while approximately two-thirds of our foreign tradewill continue to be carried in foreign bottoms, then the Governmentwill be required to pay enormous ship subsidies in order to utilizeour great Navy, and maintain the American flag upon the high seas.

In all the railroad discussions, a studied effort has been putforth to draw public attention away from that feature of the billpertaining to water transportation in the coastwise and intercoastaltrade, and especially that portion of it in the Gulf of Mexico. Theyknew that the country had been covered with the railroad propa-ganda in opposition to river improvement and navigation, and thatmany thousands of people had been misled and prejudiced againstthat type of transportation. Their effort has been to play upon thatprejudice.

They have magnified the Ohio and Mississippi River transporta-tion in an effort to make the public believe that it is the cause ofall railroad ills. Yet, we find that only 5 per cent of the traffic onthis river system was moved by common carriers. More than 90 percent was by contract or private carriers, the great preponderancebeing the shippers’ own materials, handled in their own boats. Asthis bill can only apply to common and contract carriers, by far themajor portion of this river tonnage will not be subject to it, butwill continue as heretofore.

The tonnage carried by the Government barge line has beenrepresented as a destroyer of railroads. Yet the record shows that theGovernment barge line in 1939 carried only 2,175,198 tons offreight, while the ports of Texas alone had 66,561,030 tons of coast-wise trade. The barge-line traffic on the Mississippi is not a proverbial"drop in the bucket" as compared to the enormous coastwise trafficthe railroads are expecting to take from our merchant marine, andwhich would be at a tremendous additional transportation cost tothe farmers of Texas and of other states. There was also 9,909,380

22 Houston PORT Book May, 1940

tons of freight carried in American ships through the Panama Canal,which the railroads are after.

The fact should further be borne in mind that the 2,175,698tons carried by the Mississippi barge line, while but an atom in thetransportation field of more than 2,000,000,000 tons, actuallydwindles into insignificance under the further contention of therailroads. I have in my files, and in hearings before committees ofCongress the contentions of some seven or eight different railroads,each seeking to show that it alone was the loser of this entire amountof traffic carried by the barge line.

If the little more than 2,000,000 tons carried by the barge linehas come from approximately seven or eight different railroads,then no one railroad has been seriously crippled on account of theloss it sustained. It is not the volume of freight carried by the bargeline that the railroads are objecting to. It is the yardsticl¢ they wantto get rid of.

Transportation on the Gulf of Mexico has been in operationfrom the earliest settlement of the country---even before the firstrailroad tie was laid in Baltimore. It has provided a saving of manybillions of dollars to the people in transportation costs. Hereafterno commercial boat can use the Gulf without a permit in the formof a "certificate of convenience and necessity," from the railroadcommission. If the boat proposes to carry freights that might becontended for by the railroads, then, of course, this permit will berefused.

If the Gulf of Mexico with its more than 100,000,000 tons oftraffiic is to be taken away from the free use of the people and given

to the railroads as authorized by the Wheeler-Lea bill, then I desireto call attention to the effect it will have on only a few of our lead-ing items of commerce.

I have heretofore called attention to the fact that only a verysmall proportion of the cotton grown in the Southwest is milledthere. It must seek either a foreign market or be shipped to easternspindles. Our foreign market is uncertain and much of the cottongrown there must hereafter seek a market in the East. The waterrate on cotton from Galveston and other Texas ports to the mills ofNew England is 40 cents per hundred, or $2 per bale. The rail rareis $1.44 cents per hundred, or $7.20 per bale. The railroads havecontended that their rates are as low as the cost of transportationwill permit, and cannot be reduced. In this, they have the approvalof the railroad commission. Therefore, to equalize the rail-and-waterrates the rates by ship must be very materially increased. This wouldcost the cotton farmers of the Southwest several dollars per baleadditional freight cost, and greatly cripple the business of theTexas ports.

So much for cotton from the coast region. Let us see how itwould affect the cotton farmers of the interior. The rail rate fromDallas to Lowell--via Vicksburg--is $1.53 per 100. The rail-Gulfrate is only 75 ¼ cents.

The rail rate from Durant, Okla., to Lowell is 96 cents. Therail-Gulf rate is 89¼ cents.

The rail rate on grain from Altus, Okla., to New York is 71cents. The rail-Gulf rate is only 60 cents.

The rail rate on flour from Altus to New York is 71¼ cents.

Statement showing comparison o] all-rail rates with rail-water-rail or rail-water rates on selected com-modities of heavy volume movement between Texas and Oklahoma points on one hand, andNorch Atlantic ports and interior New England cities, on the other.

Tariff referenceRail-water-Minimum All-rail rail or rail-From- To--- carload rateweight water rate

Per 100 Per 100pounds pounds

PeePs I. C. C. 3202Miller’s I. C. C. 820

$0.88 Dodge’s I. C. C. 480.021A.40 King’s I. C. C. 8

.751A

NORTH-BOUND

Cotton :Dallas, Texas... Vicksburg, Miss..._..I 50,000 $0.69Vicksburg, Miss. Lowell, Mass ........... [ 50,000 .84Dallas, Texas Tex Galveston, Texas

50,000Handling Charge at Galvesto .......

~======~=~~=========== ........g~25~5Galveston, Texas __ --

Through rate.. 1.53

Durant, Okla... Lowell, Mass ............ 50,000 .96Do .... Galveston, Texas 50,000Handling charge at Galveston, Tex .................................................................................... ,

Galveston, Texas._. Lowell, Mass ............ 50,000

.96

Kansas City, Mo. 40,000 .29East St. Louis, Ill. 40,000 .12New York, N.Y. 40,000 .30Galveston, Texas 40,000New York, N.Y. 40,000

Kansas City, Mo.East St. Louis, Ill.New York, N. Y.Galveston, TexasNew York, N. Y.

Dallas, Texas ...........Galveston, TexasDallas, Texas ...........

San Antonio .................. do .............Fort Worth, Tex.

........ do ......

........ do..... do.

........do ...............

........do.

PeePs I. C. C. 8202.47 PeePs I. C. C. 3075.02~.40 King’s I. C. C. 3

.89~

.71

40,000 .294O,O00 .1240,000 .80½40,00040,000 t.

.71x~

40,000 1.1240,00040,000 ......................

1.12

40,000

{

40,000 1.1640,00040,000 1.08

(*) } 2.52(*)86,000

}36,000 1.27

A. T. & S. F. I.C.C. 12816St. L.-S. F. I. C. C. 10774Jones I. C. C. 3356

.85 PeePs I. C. C. 3096.25 King’s L C. C. 3

.60

.35

.32

.67

.36.47

.83

.69

.83

1.80½

.97

A. T. & S. F. I.C.C. 12816St. L.-S. F. I. C. C. 10774Jones I. C. C. 8356PeePs I. C. C. 8096King’s I. C. C. 3

Peel’s I. C. C. 3144King’s I. C. C. 8Peel’s I. C. C. 2719Peel’s L C. C. 3105

tPeel’s I. C. C. 3144King’s I. C. C. 3Peel’s I. C. C. 3144King’s I. C. C. 3

Peel’s I. C. C. 2882King’s I. C. C. 3

Peel’s I. C. C. 3144King’s I. C. C. 3

Through rate ............

Grain :Altus, OklaKansas City, Mo.East St. Louis, Ill .....Altus, Okla.Galveston, Texas.

Through rate

Grain products (flour) :Altus, Okla.Kansas City, Mo .....East St. Louis, Ill.Altus, Okla .............Galveston, Texas

Through rate .......

SOUTH-BOUND

Iron and steel :Baltimore, Md.

Do ....Galveston, Texas .....

Through Rate

Canned goods :Boston, Mass.

DoDo ..........Do ....

Cotton piece goods (unfinished) :New York, N. Y ......

DoGreen coffee :

New York, N. Y.Do ................

* Any quantity (no carload rates).

The rail-Gulf rate is 67 cents.The rail rate on iron and steel

from Baltimore to Dallas is$1.12. The rail-Gulf rate is only83 cents.

The rail rate on canned goodsfrom Boston to San Antonio is$1.15. The rail-Gulf rate is only69 cents.

The rail rate on canned goodsfrom Boston to Fort Worth is$1.08. The rail-Gulf rate is only83 cents.

The rail rate on cotton piecegoods from New York to FortWorth is $2.52. The rail-Gulfrate is only $1.80 ½.

The rail rate on green coffeefrom New York to Fort Worthis $1.27. The rail-Gulf rate isonly 97 cents.

The rail rate on grain fromAmarillo, Texas, to New Yorkis 76 cents. The rail-Gulf rate isonly 60 cents.

The rail rate on grain fromLubbock, Texas, to New Yorkis 82 cents. The rail-Gulf rateis only 60 cents.

The rail rate on cotton fromAmarillo, Texas, to Lowell,Mass., is $1.73. The rail-Gulfrate is only $1.09¼.

The rail rate on cotton fromLubbock, Texas, to Lowell,Mass., is $1.76. The rail-Gulfrate is only 93 ¼ cents.

All these rates are fully shownin the table alongside.

This table of rates is an illus-tration as to the effect of thisbill when put into operation.The effect upon our Texas portswill also be very material,


Freights from the interior that now pass through our ports seekingthe cheaper rates will no longer be continued. Eastern freights forpoints inland, to a great extent, will no longer pass through ourTexas ports but will go direct by rail, to the detriment of our portsand at greater cost to the people.

It is shown by Document No. 264 of the Seventy-fifth Con-gress, first session, page 13, that railroad freight rates in the south-western zone, which includes the whole of the State of Texas, areslightly more than 75 per cent higher than for the northeastern zone.These zone freight structures have been built up under the approvalof the Interstate Commerce Commission and they are an admonitionto us as to what we may expect of that body if it is given the same

power over our ocean and Gulf shipping it now exercises over inlandshipping.

The land grants of the Federal and State Governments thathave been made to the railroads were equal in extent to the combinedareas of the States of Maine, New Hampshire, Vermont, Massa-chusetts, Rhode Island, Connecticut, New York, New Jersey, Penn-sylvania, Delaware, Maryland, Virginia, West Virginia, North Caro-lina, South Carolina, and the District of Columbia. By this Wheeler-Lea bill we are now giving to them all our rivers and canals, andwith them a quitclaim deed to the Gulf of Mexico and the Atlanticand Pacific Oceans. It is to be hoped that the railroad lobby willnot demand more of Congress at this time.

Harris County Flood Control

T HE United States Army Engineers have now reached the finalstages in preparing an adequate flood control plan for HarrisCounty and report with estimates of cost will shortly be sub-

mitted by Col. F. S. Besson, District Engineer, through Col. Roger G.Powell, Division Engineer, New Orleans, to Major General JulianL. Schley, Chief of Engineers, at Washington, for approval of theWar Department.

The general plan meeting the joint approval of the DistrictEngineer and the Advisory Committee of Engineers to the HarrisCounty Flood Control Authority (The Commissioners Court) the result of several months study by all parties concerned, andprovides for a certain amount of improvement of Buffalo Bayouwest of and through the City of Houston, together with a diver-sion canal from White Oak Bayou eastward across Green’s Bayouto San Jacinto River, and a south diversion canal extending froma point about 12 miles west of the city to an outlet in GalvestonBay.

These improvements and diversion canals will reduce thequantity of water passing through the city to an amount whichcan be carried safely within the banks of the stream, and to avolume which will not seriously interfere with shipping on theChannel.

Harris County Flood Control. General J. J. Kingman, Asst.Chief of Engineers; Col. Roger G. Powell, Division Engineer, andlocal Engineer Committee, as guests of Col. F. S. Besson, DistrictEngineer.

It is expected that some of the work will be underway beforethe end of 1940.

Left to right: Standing, W. E. White, K. Heagy, K. Smith, M. S. Biekel, H. R. Norman, J. M. Nagle, J. Russell Wait, Jack Raffertyand Capt. Charles Crotty; seated, Col. D. M. Duller, Capt. M. J. Asensio, Judge Roy Hofheinz, R. J. Cummins and Col. F. S. Besson.


Champion Pulp and Paper Mill InvestmentReaches $6,500,000

T HE PAPER MILL of the Champion Paper and Fibre Company onthe Houston Ship Channel at Pasadena will be completed andin operation in June.

The new mill brings Champion’s total Houston investment toapproximately $6,500,000; and will raise the number of Champion’spermanent employees to something between six and seven hundred.About 150 of these will be employed in the new mill.

A market for about 60 per cent of the mill’s production isrepresented by a contract between Champion and the publishers ofTime and Life, who actively cooperated with Champion in theestablishment of the mill. Balance of the mill’s production will bemarketed to the paper trade, with a heavy percentage expected to besold to Southwestern users. Capacity of the mill will be 175 tons offinished paper per day.

The paper mill is a logical outgrowth of the pulp plant and

thereby illustrates how one new industry begets another in theHouston area. The paper mill will not itself utilize a Texas rawmaterial, but will use the chief end-product of the pulp mill, whichdoes utilize, not one, but four, of Texas’ major natural resources.These are wood, natural gas, salt and oyster shell.

The pulp plant processes Texas pine, producing several gradesof pulp for paper-makers, and such industrial by-products as causticsoda, hydrogen, sodium resinate, trostol, and turpentine.

The new paper mill will consume between 30 and 40 per cent ofthe pulp mill’s output; the balance will be supplied to Champion’splants in Canton, North Carolina, and Hamilton, Ohio, as well asoutside customers.

In effect, paper-making at Houston will be a continuous processfrom the time the wood goes through the first process of the pulpplant until it comes out as finished paper.

Finishing Mill Addition to Pulp Paper Plant.

May, 1940 Houslot~ PORT BOOK 25

Transportation and Rates

By H. B. CUMMINSGeneral ,Manager, Houston Port & Traffic Bureau

T HE economic warfare among different forms of transport(railroads, steamship lines, trucks and barges) is makingpoor hash of the rate structure; and Houston stands square-

ly in the middle of the combatants, also in the midst of a num-ber of competing ports, each of which is struggling to have itsown natural disadvantages removed by arbitrary action of theregulatory bodies, or, stated otherwise, trying to have Houstondivested of its natural advantage of location on the waterways,the railroads and the truck routes.

In so far as the transporters are concerned, it is a day ofmaximum service at the very minimum compensation. In so faras ports are concerned, aside from any question of reasonable com-pensation for services rendered, it is a day of dog eat dog. Thepublic, which in the end must foot the bills and pay the freight,sits on the sidelines, and seemingly enjoys the era of low freightcharges and cut-throat competition.

The administrative bodies, among which the powers to regu-late have been so unscientifically and promiscuously scattered bythe lawmakers, have too much power in some respects and notenough in other respects, and are following very largely the ex-ample set by Nero (fiddling while Rome burned), and appearto be completely lost in the morass of changes in freight ratesthat move across the scene almost like moving pictures.

Precedents in the field of transportation are being kicked overevery day, and what has gone before is now being treated withthe greatest neglect and even contempt. The example set by Gov-ernment itself is being followed by all others.

If transportation itself were regarded as a governmentalfunction, existing conditions might appropriately be called revolu-tion rather than evolution. If the changes that are taking placeright under our eyes properly may be called evolution in themethods of transportation, and if the result is progress, it appearsthat we must find language to give a new meaning to the wordprogress.

The port that happens to be nearest to the inland areas ofproduction and consumption, and which may have been developedwith the taxpayers’ money because of that fact, is now the objectof every known method of attack and destruction. More-distantports call upon the regulatory bodies arbitrarily to project therates of the near port to the more-distant port. Rail, truck,steamship and barge lines that serve the more-distant port butnot the near port, are permitted to and do engage in the practiceof "equalizing" ports. This ’~equalization" takes on many differ-ent forms; but, in substance and effect the result is always thesame, to-wit: The conversion of natural advantages into positivedetriments.

Railroads serving New Orleans and the Sabine Ports absorbthe disadvantages of said ports and neutralize Houston’s naturaladvantage of location by shrinking their rates in an amount suffi-cient to accomplish the so-called "equalization." In relation tocertain services such as the Puerto Rican service, for example,the steamship lines serving different ports absorb differences ininland rates among ports; and in some very important instancessteamship lines absorb the cost of rail transportation from oneport, which they do not serve, to a port that they do servedirectly. In Maritime circles this is called "on-carriage" of freight.

The most recent example of this practice is that of the Seatrainoperating between Texas City and Havana, which absorbs therail freight from Houston to Texas City on locally-produced ton-nage that is exported to Cuba through Texas City, the total oftransportation charges to the shipper being the same as if the freightwere moved directly by water from Houston to Havana.

Another shining example of "on-carriage" or absorption ofof rail charges by a steamship line serving one port but not another,is the handling of Brazilian coffee from Brazil to New Orleans bywater and thence to Houston by rail, the steamship line payingthe railroad 17c per 100 pounds for its rail service out of its ratefor the ocean carriage. This is practiced by a foreign-flag linethat is subsidized by the Brazilian Government. Incidentally it maybe said in this connection that the 17 cents paid by the steamshipcompany to the railroad is allowed to stand as a credit on furtherrail transportations; hence, under what is known as the ~’railroadtransit privilege," the green coffee brought to New Orleans bywater and reshipped to Houston by rail may be converted intoroasted coffee and forwarded by rail to interior points at the bal-ance of the through rate on roasted coffee from New Orleans tofinal destination. Inasmuch as the through rates on coffee from

Thirteen-floor addition to the Commerce Building, home ofthe Houston Chamber of Commerce; Annex and Garage underconstruction in the foreground.

2* Houston PORT ~BooK May, 1940

New Orleans and Houston are the same to the major portion ofthe great Southwest, the practices mentioned (the steamship’sabsorption and the railroad’s transit privilege) enable Houston’scoffee roasters, who elect to use the service, to get a substantiallylower aggregate of charges by handling their coffee through NewOrleans than they would have to pay when handled directly toHouston by water and out by rail.

In a very recent decision in a case known as Docket No. 514,the U. S. Maritime Commission held that there is nothing unlawfulabout absorption of differences among ports in inland rates by thesteamship lines or the absorption of "on-carriage" charges; so, wesee that unless the Maritime Commission can be persuaded tochange its mind and reverse itself, there must be a very materialchange in the law if the ports are to have the benefits of theirnatural advantage of location.

In Maritime Commission Docket No. 567 the Port of Mobile,Alabama, and Baltimore, Lake Charles, Houston, Galveston andBeaumont, have asked that the steamship lines operating in thePuerto Rican trade be required to discontinue the practice ofabsorbing inland differences in rates among ports. New Yorkand New Orleans support the practice because they are enabled totake tonnage away from other ports so long as the practice isallowed to continue. The maximum absorption by the steamshiplines is equal to 30 % of the ocean rate.

In I. C. C. Dkt. 28235 the Port of Beaumont has asked theInterstate Commerce Commission to project Houston’s rail rates(including truck-compelled rates) to Beaumont in relation to inlandareas lying on and beyond a zone line drawn 160 miles from Hous-ton. Beaumont contends that inland rates should be on a mileagebasis around each port only for a radius of 160 miles, and that be-yond this distance ports should be equalized without regard fordifferences in distance. This question awaits the decision of theI. C. C.

In Dkt. 28259 the Port of Corpus Christi has asked the I. C.C. to project Houston’s rates to Corpus Christi in relation to Colo-rado, Kansas, New Mexico and Oklahoma traffic, also the majorportion of Texas. In the area in Texas where Corpus seeks equaliza-tion with Houston, Houston’s advantage in distance ranges from90 to 221 miles. This question also awaits the decision of theI. C. C.

Seatrain and its connecting rail lines intend to establish be-tween Atlantic Seaboard Territory and the Southwest, the samethrough rates as are now maintained by the break-bulk cargo linesand their rail connections. Seatrain’s port of interchange is TexasCity; and, this new service will divert from Houston and Galves-ton much of the coastwise tonnage that moves between the NorthAtlantic Ports and the Southwest.

Since the recent changes in the official family of the SantaFe system lines in Texas and Chicago there has been a marked

New Addition to the Niels Esperson Building.

change in the Santa Fe’s policy on port equalization. The oldpolicy laid down by Ripley and followed religiously by Chambers,Houghton, Hershey and others, is gradually being abandoned.In the old Galveston-New Orleans case (Docket 12798) theSanta Fe took a leading part in the fight of the Texas Ports againstNew Orleans on the question of port equalization; but, now wefind the Santa Fe sponsoring port equalization schemes, which itregards as essential for protection of its own interest, that arepositively detrimental to the port of Houston.

Now that rail rates are being driven to new low levels bycompeting forms of transport, it seems strange indeed that disre-gard of distance in the process of equalizing ports would becomea fixed policy of any form of transport. It appears to the laymanthat the lower the rates become and the less the compensation ofthe carrier, the farther they seek to haul the tonnage.

Transportation laws respecting railroads, trucks and watercarriers, are woefully deficient in the sense that they fail to estab-lish standards for the guidance of the regulatory bodies in ratemaking. These laws require that rates be just and reasonable, andthat there be no unjust discrimination against persons, localitiesand descriptions of traffic; however, the regulatory bodies are thesole judges of questions of fact, which means that they have anunbounded field of discretion in deciding whether or not any givenstate of facts constitutes an unjust discrimination. The lack ofstandards in the laws makes the regulatory bodies virtual dictatorsin passing upon the results inherent in any given state of facts.

The I. C. C. has jurisdiction over interstate rail and truckrates. The State railroad commissions have jurisdiction over intra-state rates, and these are sometimes used to defeat interstate rates.The Maritime Commission has jurisdiction over port-to-port waterrates; but, the I. C. C. claims the jurisdiction when the port-to-port rates are so qualified as to be applicable only on tonnage thatis moved by rail to or from a port. The I. C. C. has partial juris-diction over rates on freight carried partly by rail and partly bywater when there are joint arrangements for through transporta-tion of the tonnage; however, the I. C. C. can not prescribe mini-mum rates for such carriage, except when the water carrier isowned or controlled by a railroad. Common carriers operating onthe inland waterways are regulated little, if any; however, theycarry a small portion of the tonnage moving on such waterways.Most of the tonnage carried on the inland waterways is handledby private carriers--industries that own and operate their ownfloating equipment.

Port terminal facilities that are owned by railroads are subjectto the jurisdiction of the I .C.C.; however, there is little regula-tion of such facilities. Privately-owned and publicly-owned portterminal facilities are not regulated; however, the Maritime Com-mission claims to have jurisdiction. Private carriers of freight onthe highways are subject only to the police powers of the States.These carriers handle a large volume of tonnage.

Transportation today is the biggest mess in our economic struc-ture, and existing law is not adequate to deal with it properly.

In conclusion I wish to express the view that the plans forequalization of ports advocated by Beaumont in I. C. C. Dkt.28235 and by Corpus Christi in Dkt. 28259 would wreck all ofthe Texas ports and concentrate nearly all Southwestern exportsand imports through New Orleans. Houston is forced to fightfor such rights as should inhere in natural advantages of location.

SHIP.SHORE RADIO PHONE SERVICENOW AVAILABLE

Many of the tugs, dredges, and larger recreational craft operat-ing at Houston and adjoining gulf coast waters are being equippedwith radio telephone service sets, and it is now possible to callthese craft, as well as vessels at sea by merely calling long distanceover your office or home phone, giving the name of vessel andparty wanted and securing the same service as land stations.

May, 1940 Houston PORT Book 27

Twenty-Five Years of Progress

T HE rIP, ST public wharf facility was completed in August, 1915,and the Port of Houston officially opened to world commerce.The progress since that time has been most remarkable, reach-

ing the rank of second port in the United States in 1938 on sea-borne cargo tonnage, and third place in total tonnage, includingbarge, local and interport traffic, following such old established portsas New York and Philadelphia.

The first decade of shipping was handicapped by the World War,which diverted the available vessels to North Atlantic and overseasroutes, and by the restrictions of a 25-foot depth of channel, 100 to150 feet in width, with many very sharp curves.

After 1920, shipping was stepped up rapidly by the export ofcotton and petroleum products, and with the completion of the30 feet depth of channel in 1925, and increase of width to 150 and250 feet, larger vessels were placed in service and many new linesestablished their offices in Houston with routes to the principalforeign countries. Coastwise lines increased their sailings and speededup their schedules.

This traffic development called for further improvement of thechannel and during period 1928-1933 it was deepened to 32 feet, anda number of the sharper bends were eased and curves widened. TheGalveston Bay section was widened from 150 feet to 250 feet onthe bottom.

The River and Harbor Act of August 30, 1935, provided fordeepening the channel to a usable depth of 34 feet--actual 36-37 toallow for slight shoaling--and to widen bay section from 250 to 400feet on the bottom; from Morgan’s Point to Baytown, width to be

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increased from 200 to 300 feet; thence to Norsworthy to 250 feet,and 200 feet to turning basin. The work on this project is rapidlynearing completion, with only five miles ahead of the dredges.

After reviewing the rapid growth of traffic and the tendency touse still larger vessels in the foreign and coastwise trade, and particu-larly the increase in night navigation, the U. S. Army Engineersrecommended further increases in width of channel to provide 400feet from Morgan’s Point to Baytown, 350 feet to Shell PetroleumCompany plant, 300 feet to Manchester and 250 feet to basin. Thisproject has been approved by War Department and both Rivers andHarbors Committees of the House and Commerce Committee of theSenate, and is included in the pending authorization bill now beforeCongress.

The War Department records show the cost of the HoustonShip Channel to June 30, 1939, as follows:

New Work, Government Funds .................. $13,202,921.32New Work, Nay. Dist. Funds .................... 2,574,178.78

TOTAL .................................................. $15,777,100.10Maintenance, Government Funds ................ $ 8,733,477.30Maintenance, Nav. Dist. (Dredges) ............ 200,000.00

TOTAL .................................................. $ 8,933,477.30

GP,AND TOTAL ............................................ $ 24,710, 577.40

From the opening of the channel to seagoing vessels in 1915, toclose of 1939, a grand total of 288,113,621 tons of cargo, valued at$8,293,295,673.00, have been transported over the waterway, repre-senting a unit cost of 8 ½ cents per ton for the fifty mile haul.

The story of growth in traffic is clearly set forth in the graph,a continuous rise except for depression years of 1931-32 drop, whichwas soon overcome. The other graph represents the present and pro-posed dimensions of channel and the distribution of cargo to thevarious terminals on the upper twenty-five mile industrial area.

PORT TRAFFIC GROWS IN 194,0

The first three months of 1940 shows a total of 7,618,169short tons of cargo handled through the port, an increase of13.35% over 1939. The increase in ship movements was 4.08~o,indicating heavier loading of vessels as channel has been improvedby deepening and widening. During same period cotton exportswere ~29,270 bales, against 28~,049 for first three months of 1939.

2s Houston PORT BOOK May, 1940

A Directory of the Houston Chamberof Commerce

Many persons and firms located far from Houston desireservice and information with reference to their various interests,for which the Houston Chamber of Commerce is always glad tobe called upon.

Following is the Executive Committee:

WRIGHT MORROW ............................ PresidentH. O. CLARKE ........................... Vice-PresidentJ. SAYLES LEACH ........................ Vice-PresidentJ. M. LYKES ............................ Vice-President

RALEIGH HORTENSTINE ........... Secretary of the BoardJ. VIRGIL SCOTT ............................. Treasurer

L. S. ADAMS ......................... Member-at-Large

W. N. BLANTON ..... Vice-President and General Manager

The service rendered by the Chamber of Commerce is dividedinto several departments, of which the following is an outline, andthey at all times welcome inquiries from those desiring theirassistance :

EXECUTIVE DEPARTMENTW. N. BLANTON, Vice President and General Manager

T. W. ARCHER, O~ce Manager

TRANSPORTATIONC. E. HOLLOMAN, ManagerE. E. DULLAHAN, Assistant

Rate quotations. Readjustments of rate situations. Publicationof rate changes. Preparation of statistical information in defenseof rate adjustments. Analysis of transportation problems. Dissemi-nation of information on the car situation and any other transpor-tational subjects of interest to shippers.

INDUSTRIAL AND AVIATIONMAJOR ROLAND A. LAIRD, Manager

IndustrialSites. Warehouses. Retail locations. Labor situation. Statistical

information on industrial subjects. Business conditions (city andstate). Present and future industrial possibilities.

AviationStimulates the establishment of new airmail and passenger

services at Houston; inaugurates statewide movements for the bet-terment of commercial flying in Texas and fosters the improvementof airports in Houston and generally throughout Texas.

FOREIGN TRADET. L. EVANS, Manager

Foreign trade problems. Information on Houston. Trade pos-sibilities, with special reference to Mexico, Central and SouthAmerica and the West Indies. Spanish translations. Information oncustoms regulations, tariffs, etc. Domestic trade. Local conditions oftrade with special reference to wholesalers and jobbers. Classifiedlist of Houston concerns. Present and future possibilities of specifictrade propositions. Port activities and improvements.

PUBLIC RELATIONS AND SAFETYCOL. NORMAN H. BEARD, Manager

BAKER ARMSTRONG, Assistant

Public RelationsDeals with a variety of Chamber of Commerce activities which

do not center in any division under the direction of a departmenthead, including inter-organization activities. Participates in the wel-coming and entertaining of distinguished visitors and arrangesdetails for a variety of meetings and conferences held by localagencies.

SafetyAdvocates and promotes the observance of approved safety

measures both with reference to the individual and to group em-ployes. The department regularly carries a message of safetythrough every publicity medium and interests itself in the adoptionof legislation to enforce worthwhile safety methods.

MEMBERSHIP DEPARTMENTL. GOLDSTON, Manager

JIMMIE HILL JONES, AssistantMORRIS H. TRIFON, Assistant

Establishes friendly contacts between members, prospectivemembers, new citizens and visitors through confidence in theChamber of Commerce.

RESEARCH AND STATISTICSGEO. F. FINDLAY, Manager

Maintains a file of approximately 1,500 items on subjects ofinformational value with reference to Houston, its trade territoryand Texas. This information is available to anyone anywhere.

MANUFACTURERS AND WHOLESALERSHAROLD E. NELSON, Manager

Contacts Houston trade territory and assists jobbers and manu-facturers to develop new business.

AGRICULTURALW. O. Cox, Manager

Agricultural conditions in Harris County and adjoining coun-ties. Specific information to individuals on farming problems. Boys’and girls’ rural club work. Information from specialists employed inthe department of livestock and dairying, home demonstration andfield crop subjects. County agent work. Information availablethrough direct contact with the Extension Service of the StateAgricultural and Mechanical College.

HIGHWAYGLEN R. BLACKBURN, Manager

Provides comprehensive service for motorists and tourists andassists in the planning of new or improved highway construction.Assists in planning new highways that directly or indirectly benefitHouston.

PUBLICITYJ. T. MCCULLY, Manager

MALCOLM YATES, AssistantNational and local distribution of civic advertising, including

news publicity on Houston development. Pictures and cuts ofHouston’s commercial and civic life for the use of visitors and forloan to interested individuals. General information regarding thecity. Direct contact with local newspapers which makes availableassistance for those desiring that character of publicity service.Advice and counsel in the preparation of publicity matter which hasa bearing on Houston publicity. File of newspaper clippings ollstories of interest.

CONVENTION AND TOURIST BUREAUW. A. SIEFERTH, Manager

ELTON V. AMBURN, Assistant

Promotes the holding of conventions at Houston; arranges forconventions and other conferences and stimulates the holding ofsales conferences at Houston.

HOUSTON MAGAZINEC. E. GILBERT, JR., Editor and Manager

IRVIN H. BRACKMAN, Assistant

A monthly business journal, combined with the Port Register.

JUNIOR CHAMBER OF COMMERCENORMAN H. BEARD, Managing Director

BAKER W. ARMSTRONG, Executive Secretary

An organization of young business men of Houston but adistinct division of the Chamber of Commerce operating under thelatter’s supervision. Promotes the general civic welfare of Houstonthrough a great variety of activities.


Houston’s Relationship to the Cities of theGreat Southwest

THE CITY OF LUBBOCK"The Hub of the Plains"

The fi]teenth o] a series o] articles showing Houston’s relationship to other cities o] the Great Southwest.

Some other city will be covered in the next issue o] the Houston Port Book.

T I-IE BEGINNING Of the opening and settling of the PlainsCountry was in about March, 1873, during the administrationof Governor Davis, and the last year of the "carpetbaggers"--

when an exploring and surveying party of about one hundred andten men was organized at Sherman, Texas, to explore NorthwestTexas. Even for a long time after that exploration there were only afew shack ranch houses and stores scattered about over the country.But in 1890 two townsites were located about four miles northeastof the present site of Lubbock. The following year the towns wereconsolidated and adopted the name of Lubbock, after LieutenantTom Lubbock of Terry’s Texas Rangers, who was killed in the CivilWar at the battle of Shiloh, April, 1862; but it was not until April12, 1909, that the city of Lubbock was incorporated. Lubbock nowhas a commission-manager form of government.

The Federal census of 1900 gives Lubbock County 293 inhabi-tants, and the 1910 count gives the city of Lubbock 1,938; 1920,4,051. The next ten years witnessed one of the most rapid growthsin the history of any city, as the i930 census report gives Lubbock

a population of 20,520 people, a gain of 408.8 per cent. Today, thepopulation, based upon a recent city directory count, stands at 39,-936. Every indication points to a continued steady growth for Lub-bock; its strategic location for wholesale distribution, its educationalfacilities, its more than five million acres of virgin land awaitingcultivation, its remarkable low city and school tax rate, based on anequitable valuation, naturally forecast a continuance of its solidgrowth and development.

Lubbock is the hub city of a vast territory known as the SouthPlains of Texas. Lubbock is the geographical, the trading, the finan-cial, the industrial, the commercial, the educational center of thisarea. Most cities the size of Lubbock are circumscribed--their terri-tories bounded by competing cities of equal or larger size. Lubbockis the largest city of a territory extending nearly three hundredmiles north and south and an equal distance east and west, and rail-roads and highways radiate from Lubbock to this territory as spokesfrom the hub of a wheel.

The fifteen counties adjacent to Lubbock comprise technically

Institutions located in the Hub City: 1. Burrus Elevators. 2. Swift & Company Poultry Plant. 3. Lubbock Poultry & Egg Plant.4. Hilton Hotel. 5. Hotel Lubbock. 6. Myriek Office Building. 7. County Jail. 8. Junior High School. 9. First Methodist Church.10. Chemistry Building, Technology. 11. Lubbock Municipal Ailport Hangar. 12. Administration Building, Technology. 13. Senior

High Sehool. 14, Court House. 15. Citizens National Bank Building.


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Commercial cattle feeding.

the "South Plains of Texas" and are included in Lubbock’s imme-diate retail trade territory. Its wholesale trade territory is very muchlarger.

This South Plains city has every reason to face the future withconfident optimism, based on its business and industrial life, withthree national banks with combined deposits of over twelve milliondollars to handle the financial matters of approximately 979 busi-ness establishments serving the city and its trade territory. Theseestablishments have an annual payroll of more than $3,635,000, oran average of over $152,000 each fifteen days. The importance ofLubbock as a wholesale center may be seen from a study of the lastavailable Federal census made in 1933, when the 72 wholesale con-cerns here showed net sales amounting to $9,079,000. It also shows27 manufacturing concerns with products valued at $3,160,277.Lubbock now has 78 manufacturing concerns, 127 wholesale anddistributing houses, 358 retail stores, 142 service businesses, and224 miscellaneous employers. Lubbock is particularly suited to in-dustries manufacturing commodities from raw materials producedfrom the soil and the distribution of materials and commoditiesnecessary to the farming industry. Ninety-seven per cent of thepopulation of Lubbock is white and the remaining 3 per cent isabout equally divided between negroes and Mexicans.

Contributing factors to this business are the splendid trans-portation facilities. The Santa Fe Railway Company and the FortWorth & Denver City Railway Company provide eight rail outlets,while fifty bus schedules and 126 truck lines, operating over eightpaved highway outlets, amply fill the transportation needs, as far asfreighting is concerned. The passenger service is further augmentedby Lubbock’s air terminal facilities on its 640-acre municipallyowned airport, fully equipped and holding an A-1-B rating by theDepartment of Commerce.

The spirit of the plains’ progressive people demand recreationalfacilities. Lubbock is the focal point for recreation of the surround-ing territory attracted by the 545-acre MacKenzie State Park, andeight municipally owned parks and playgrounds covering 117 acres,a country club, two excellent golf courses, race track, tennis courtsand five modern motion picture theatres. The literary desires arepartially supplied by the county-owned library, housing approxi-mately 10,000 volumes.

The principal occupations of residents of the trade territory areagriculture, dairying, and cattle raising, and occupations related tothe oil industry. The products from these activities have placedLubbock as the third largest inland cotton market in the world andthe largest butter producing point in Texas.

Black gold no longer is a visionary dream so far as this andother immense sections of the South Plains are concerned. It is aproven reality. The major oil companies, their geological and geo-physical experts tell us that without doubt the South Plains of Texaswill be the site of one of the greatest oil fields in the South, in thenot too distant future.

Naturally, in the development of such a large territory, consist-ing of over six million acres of land, a large number of oil operators,drilling contractors, and many others connected with the oil industrywill seek a satisfactory place to make their homes and transact theimmense volume of business necessary in their operations in the pro-duction area. All of the requirements of the most exacting individualcan be found in Lubbock. The fact that Lubbock is located farenough away from actual production to escape the shack construc-tion makes it an ideal home and business center for those in the oilbusiness.

Four newspapers serve this territory: the Lubbock MorningAvalanche, the Lubbock Evening Journal, and two weekly publica-tions, the South Plains Farmer and the Lubbock County Herald.

Along with the rapid growth of Lubbock, the independentschool system has not been lax in its progress, the present enroll-ment being 4,245, with 42 ½ units of affiliation. One of the greatestassets of the city is the Texas Technological College, establishedhere in 1923 and opened for students in 1925 with an initial en-rollment of 1,043. The present enrollment is in excess of 7,062. Thecollege has four principal divisions: agriculture, engineering, homeeconomics, and arts and sciences. With 2,008 acres of land to use, adefinite 25-year plan was drafted, placing 320 acres in the campusand using the remainder for farm experimental purposes.

The water supply, coming from deep wells, is adequate and ofexcellent quality. Future development can be made as expansion andgrowth of city demand.

Lubbock has an active Chamber of Commerce, Board of CityDevelopment, Lions Club, Rotary Club, Kiwanis Club, AmericanBusiness Club, Optimist Club, Business and Professional Women’sClub, Elementary, Junior and Senior High School Parent-TeacherAssociations and various study groups.

Thus, it is upon agriculture, wholesale and retail distribution,and educational facilities that Lubbock’s future development is based.

Architectural drawing of the new eight-story modern office buildingnow under construction.

May, 1940 Houston PORT ]Book 33

Clyde-Mallory Inaugurates Houston Service

E FFECTIVE May 29, the Clyde-Mallory Lines will inauguratetheir coastwise service out of the Port of Houston, theAlgonquin, a large combination freight-passenger steamer

sailing at 3:00 P. M. on that date for New York via Miami.The Clyde-Mallory Lines, which have been operating in New

York-Gulf Service since 1866 have heretofore used the Portof Galveston as their southern terminus; however, the continuedgrowth of the Port of Houston as the principal distributing pointfor the Great Southwest, which is also the source of great quanti-ties of cotton, wool, mohair, hides, carbon black, onions, etc., madethis port the most advantageous location for their freight andpassenger service.

The Port Commission has assigned to them Wharves Nos. 1and 2 on the south side of thc basin, and these wharves are nowbeing equipped with sloping ramps to reach the side ports of thevessels, and waiting rooms for passengers are being provided, withsuitable ticket and baggage offices.

The service, as announced, will be a weekly passenger-freightschedule with the Algonquin and Seminole arriving alternatelyat 8:00 o’clock each Tuesday morning and sailing at 3:00 P. M.each Wednesday. Straight freight service will be carried on the

CLYDE-MALLORY LINE VISITORS

(Reprinted from Now’tuber, 1939, Port Book)

"Prominent visitors to the Port of Houston for a thorough in-spection of its facilities were ot~cials of the Clyde-Mallory Line ofNew York and Galveston. Mr. John E. Craig, vice-president, andMr. George H. Homer, his assistant, in company with Mr. E. C.Crane, local agent at Galveston, recently spent several days con-taeting the many business firms which patronize their splendidcoastwise service."

As a result o~ this visit the Clyde-Mallory Line decided to makeHouston their Southern terminus.

Left to right: John E. Craig, Vice President, New York; E. C.Crane, Agent, Galveston; and Gee. J. Herner, Assistant to VicePresident, New York.

Clyde-Mallory Line Steamship Algonquin, 1940

Mallory Line, 1866

Steamers Henry R. Mallory, Brazes and Medina, one ship leavingeach Saturday afternoon.

The passenger ships Algonquin and Seminole will stop over inMiami, Florida, from 8:00 A. M. to 3:00 P. M. each Saturday in

both directions, the north bound vessel reachingNew York early Tuesday mornings. The pas-senger accommodations are of the very best, atprices to meet any purse, with excellent foodand service for a passenger list of 300. Recrea-tional facilities such as swimming pool, decktennis, shuffle-board, quoits, bridge tournaments,

i moving pictures, amateur theatricals, etc., areprovided to keep everyone interested.

Fast freight (practically express) service be-tween New York and Houston will be providedin the 5 ½ day run of steamers H. R. Mallory,Brazes and Medina, with a brief stop enroute atCharleston, S. C.

In order to furnish New York breakfasttables with Texas’ delicious grapefruit andoranges, these Clyde-Mallory freight vessels willrun from Houston to Brownsville, at the mouthof Rio Grande--Texas’ Magic Valley of citrusfruits, then back to Houston and on to NewYork.

i Houston and all its maritime and com-mercial interests extend a most hearty welcometo the Clyde-Mallory and its personnel, and allare looking forward to a long period of friendlyco-operation in helping to develop a wellrounded port and ship service.


/

On the

Gulf Coast...

. . . chemical plants have this happy combination of advantages:

Raw resources in abundance; economical transportation to all domestic markets and

foreign markets; a mild climate and varied recreational facilities; an unlimited sup-

ply of efficient NATURAL GAS for fuel and for use in chemical manufacturing

processes.

J~A

~~ for A SURVEY of

the TEXAS COAST COUNTRY

Your company should have detailed informa-

tion about the Texas Coast Country. To assist

you in obtaining it, we maintain a Research

Department which will prepare for you--

without cost or ohligation--a carefully engi-

neered survey of this chemically rich region,

individualized to your Company’s require-

ments. These surveys are specially prepared

on request, and names of companies request-

ing them are kept strictly confidential . . .

When you send for yours, please indicate

what information will be most helpful to

you . . . Address your request to Research

Department, Houston Pipe Line Company,

Petroleum Building, Houston, Texas.

HOUSTON PIPE LII~!E, CO.S,,b.ld,,,,-y oi H.o,,,to. O~l Co=p,,,,, of T,.,,, ~+,:. ....

Wholllalerl of "J]~A

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May, 1940 Houston PORT Book 35

PORT NOTES

General Motors CorporationOfficials Inspect Ship Channel ¯ ¯ ¯

The Houston Ship Channel and its facilities were inspectedrecently by Hon. W. S. Knudsen, President of General MotorsCorporation, who made the principal address at the HoustonChamber of Commerce annual meeting. The picture of the groupdisembarking from the Port Commission boat at the San JacintoMemorial Park shows Mr. Knudsen second from left, and Mr. JesseH. Jones, Reconstruction Finance Commission Chairman, fourthfrom left.

The picture below shows Col. Geo. A. Hill, President, Hous-ton Oil Company, with Mr. Chas. Stewart Mott, Vice President,General Motors Corporation, who followed Mr. Knudsen a fewweeks later.

Top: Mr. Percy S. Strauss, Pres., Macy’s, New York, InspectsHouston’s Port Facilities.

Below: Mr. Thos. J. Watson, International Business MachineCorp., New York City, and party, guests of CoL J. W. Evans, Chair-man Port Commission, on inspection trip of the Houston ShipChannel.

in this section. Col. J. W. Evans, chairman of the Port Commission,soon convinced them that natural resources and water transportationto the markets of the World was the answer.

New Steamship Service ¯ ¯ ¯The American Pioneer Line have established regular steamship

service between Houston and Australia. The Lykes Brothers Steam-ship Company, acting as agents, will represent this line in Houstonand other Gulf ports.

The American Pioneer Line fleet is composed of American flagships exclusively and this service will consist of sailings every fortydays from Houston to the ports of Brisbane, Sydney, Melbourne andAdelaide.

Houston Visitors ¯ ¯ ¯

Mr. Percy S. Straus, President of Macy’s, New York’s greatstore, was a visitor to Houston in the early winter. His son, PercyS., Jr., is a rising young attorney who has decided to make his homein Houston.

Mr. Thos. J. Watson, head of the International Business Corp-oration, and his son, of New York, spent several days in Houstonfinding out why there was so much demand for business machines

K Line Announces NewTientsin Service ¯ ¯ ¯

The establishment of service between Dairen and Tientsin bythe Kowa Kisen line, effective April 1, was announced March 5 byTexas Transport and Terminal Company.

The Kowa Kisen is a subsidiary line of the Kawasaki KisenKaisha which operates regular service from Houston to the Far East.

With the establishment of the new service, Houston shippersnow have transshipment facilities from Dairen to Tientsin.


Henry R. Luce, Associate Editor Fortune magazine, and sonvisit Houston. Picture taken at base of San Jacinto Memorial Monu-ment. Left to right: Wright Morrow, Pres. of C. of C.; J. M. John-son, Houston Compress Co.; Geo. A. Hill, Jr., Houston Oil Co.; Robt.J. Cummins, Port Commissioner, H. R. Luce, Jr.; Ike Moore,Director San Jacinto Museum; Brantz Mayor, New York; H. R.Luce; Robt. L. Dabney, Houston Oil Co., and D. A. Simmons,Counsel for the Port Commission.

National Associationof Manufacturers ¯ ¯ ¯

The following officials of the National Association of Manu-facturers visited Houston and its port facilities cn April 16: H. W.Prentis, Jr., President (President, Armstrong Cork Company);Howard Coonley, Chairman of the Board (President, WalworthCompany); C. M. Chester, Chairman of Public Relations Commit-tee (Chairman, General Foods Corporation); Walter B. Weisen-berger, Executive Vice President; Noel ~argent, John C. Gall andDr. W. P. Edmunds, Employment Relations Experts.

After the trip over the waterway to the Battleground on theyacht Southern Breeze as guests of Mr. L. A. Layne of Layne &Bowler, the party lunched at the DeeFwater plant of the HoustonLighting & Power Company and spent several hours in discussingmanufacturers’ problems.

At the banquet held at 7:00 P. M. attended by 600 leadingbusiness men, addresses were made by Gov. W. Lee O’Daniel, Mr.Coonley and Mr. Prentis.

Fortune’s Editor Visits Houston ¯ ¯ ¯Houston had the good fortune recently to entertain as its

guests Mr. H. R. Luce, the Editor of Time, Life, and AssociateEditor of Forh~ne Magazine and his son, Junior, who were takenfor a trip down the Houston Ship Channel and to the historic SanJacinto Memorial Monument. Mr. Luce, third from right, and sonin center lifting hat, have been touring the south in the interestof his publications, and was especially interested in the new finish-ing mill of the Champion Paper & Fibre Company at Houstonwhere the magazine paper for Time and Life will soon be manu-factured from Texas pine.

Dr. Edwin J. Foscue and S. M. U. Students.

A New Course in Geography ¯ ¯ ¯Here are a group of advanced students of geography from

Southern Methodist University of Dallas getting some first handknowledge of seaports, ships and transportation to and from thefar countries of the world. Under the leadership of Dr. Edwin J.Foscue, these classes each year visit many points of interest on threeto ten day trips.

New Ecuadorian Consul ¯ ¯ ¯Senor Jose Ignacio Burbano has recently been assigned to duty

as Consul for Ecuador and has now taken up his duties in handlingthe commerce of his country with the United States.

Top: The Southern Breeze Yachting on the Houston ShipChannel.

Bottom: National Association of Manufacturers InspectingHouston Ship Channel.

Record Freight LoadMoves Through City ¯ ¯ ¯

The largest piece of freight ever to ride the rails moved throughHouston in March to the Humble Oil and Refining Company re-finery at Baytown.

The freight was 430,000-pound bubble tower, manufacturedin Alahambra, California. The tower was loaded on three flat cars.Because of its size, engineers resurveyed the route from Californiato its destination to determine if the tower would clear bridges,underpasses and passing trains.

The tower is 115 feet long and 10 feet in diameter. It movedover the Southern Pacific.


New Type C-3 Vessel, Frederick Lykes, Lykes Line Far East Service.

New Ships in Lykes Service ¯ ¯ ¯

The Frederick Lykes, first of four of the C-3 type vesselspurchased by Lykes Brothers Steamship Company for operation intheir trade route from Gulf ports to the Far East, arrived hereFriday, April 26, on her maiden voyage.

The Frederick Lykes, launched February 24 at Kearny, N. J.,came to Houston in command of Capt. J. V. Smith, a veteran inthe service of Lykes Brothers.

This vessel, along with the Doctor Lykes, Almeria Lykes andHowell Lykes, will be the largest in cargo capacity, and the fastestever operated in direct liner freight service between Houston andthe Far East, officials of the company stated.

The ships also are the fastest and most modern dry cargofreight vessels to fly the American flag, and demonstrate the lastword in marine architecture and engineering. In many respects,they are well in advance of any foreign flag freight tonnage nowin service on the trade routes of the world.

Operation of these vessels should be of great interest to bothexporters and importers since they will represent a marked savingin time between Gulf and Oriental ports.

The Frederick Lykes sailed Sunday morning, April 28, for theOrient.

guests of former Gov. W. P. Hobby and Col. B. F. Bonner, closedthe day’s activities. Col. J. W. Evans, Chairman of the PortCommission, as toastmaster, presented the various members of theparty, and short talks were made by President Engel, Hon. T. W.Lamont of J. P. Morgan Company, W. C. Potter, Chairman ofGuaranty Trust Company and several others.

Louisiana-Texas Canal ServiceAdds New Equipment ¯ ¯ ¯

The Louisiana-Texas Canal Service has placed a new Diesel tugand all-steel cabin-type barge in operation which will maintain aregular schedule between New Orleans and Houston via the Intra-coastal Canal. Barges will sail from Houston on the 10th, 20thand 30th of each month and from New Orleans on the 5th, 15thand 25th of each month.

The Santa Fe ¯ ¯ ¯Houston was honored April 22 by a visit from the official

family of the Atchison, Topeka and Santa Fe, headed by PresidentEdward J. Engel. Twelve of the fifteen directors were members ofthe party travelling from Chicago in a special diesel electric stream-lined train of pullmans. On reaching Galveston, the southernterminus of the Santa Fe, the party made the trip up the HoustonShip Channel on private yachts as guests of the Galveston WharfCompany and Houston Port Authorities. Lunch was served at SanJacinto Inn and the Battlefield and Memorial Monument inspected.

On arrival at the turning basin, the party was taken for atour of the oil fields adjacent to Houston as guests of HumbleOil & Refining Company.

A dinner attended by over one hundred Houston business men,

Top--Left: Edward J. Engle, Pres. Santa Fe R. R. System,Chicago, and Former Gov. W. P. Hobby, Houston. Right: Col. B. F.Bonner, Kirby Lumber Co., Houston, and Edward J. Engel.

Second Row: Santa Fe R. R. officials at Houston Harbor. Pres.Edward J. Engle at right center.

Third Row: Santa Fe Special. President Engel and his staffused this train from Chicago to Texas Coast. In front is J. P.Morris, Mechanical Supt., Eastern Lines, Ft. Madison, Iowa, andR. B. Ball, Vice President and General Manager, Gulf Colorado &Santa Fe.

38 Houston PORT BooK. May, 1940

Lykes Announces New Service ¯ ¯ ¯Due to an increasing Latin-American trade, the Lykes Broth-

ers Steamship Company announced two improvements in serviceeffective January 27.

Weekly steamship service from Houston to Havana, Cuba,will be started January 27 with the sailing of the Stella Lykes.

An improved service for shippers to Christobal, Canal Zone,and the west coast of South America will also be started January27 with the sailing of the Margaret Lykes. Fortnightly sailings toCristobal will be maintained thereafter, without stops at interme-diate points. The improved service will reduce the present transittime not only to Cristobal but also to Cartagena, Colombia, andBarranquilla, Colombia.

Autos by Barge, Evansville, Indiana, to Houston.

Autos TakeaRide ¯ ¯ ¯Barge loads of automobiles are streaming down the Ohio and

Mississippi Rivers and Intracoastal Canal from Evansville, Indiana,to Houston. Specially built three and four decker barges carry 120to 160 autos each, which are ready to drive away as soon as landed.The water rate affects a substantial saving over the all rail rate.

The Iroquois.

Clyde-Mallory RotaryConvention Steamer ¯ ¯ ¯

The Rotary-International Convention will be held in Havana,Cuba, June 10-13, and to provide transportation facilities fromthe Southwest, the Clyde-Mallory Line has designated their splendidpassenger liner Iroquois to sail from Houston at 2:00 P. M. June7 and return on June 15.

Rotarians and their guests will be enabled to use the steameras their hotel during the 4-day convention and to enjoy the manysight-seeing trips arranged for by the Convention Committee.

Southern Steamship CompanyOfficial Visits Houston ¯ ¯ ¯

T. A. O’Brien of Philadelphia, Vice President and GeneralManager of the Southern Steamship Company, was in Houstonthe first part of April on an inspection tour. He planned to visitother Texas Cities before returning to Philadelphia.

French Shipping Head Houston Visitor ¯ ¯ ¯Col. P. La Porte, president of the French American Shipping

Company, with headquarters in Paris, spent several days in Hous-ton in January. The company represents Lykes Brothers SteamshipCompany in France. Col. La Porte was on a tour of inspectionof various American ports.

Italian Envoy Visits Houston ¯ ¯ ¯Dr. E. Ballerini, commercial attache of the Italian Embassy

in Washington, was a visitor in Houston the latter part of January,accompanied by his wife. He was visiting the Southwest to geta personal view of conditions and the possibilities for improvedtrade. He stated that he was seeking information while here whichwill enable Italian exporters to send more of her goods to Southernports. He was honored by several functions while here, one ofwhich was a tour of inspection of the Houston Ship Channel.

j. A. Folger & CompanyBuilding Plant Addition ¯ ¯ ¯

For the second time since 1938, when the plant was erectedhere, the J. A. Folger & Company coffee firm is building an addi-tion to its plant on Norwood near Navigation Boulevard. The addi-tion will be three stories and 60x120 feet. It will cost around$60,000.

The addition will be used for the storage of green coffee arriv-ing from South America.

Proof of the success of the big roasting plant which has dailycapacity of 50,000 pounds of coffee, was seen in the addition, al-though the concern has had its roasting plant in operation hereonly about 1 ½ years. Before the original plant was completed anaddition was added.

Chamber of Commerce 100 Years Old ¯ ¯ ¯April 4, 1840-1940, 100 years of service to Houston--a record

to be proud of in both efforts and results. The Chamber’s Maga-zine Houston, April issue, is a faithful chronicle of the developmentof the city and the port.

$1,500,000 Dewaxing Plant BeingConstructed by Sinclair Refinery ¯ ¯ ¯

Work started the middle of March on a $1,500,000 dewaxingplant at the Sinclair Refinery on the Ship Channel at Pasadena. Thegeneral contractor for the work is the Lummus Company of NewYork. It is estimated that it will take about eight months to buildthe plant and when completed will give employment to severalhundred persons. Dewaxing plants are used to take the paraffin outof oil. The paraffin is then converted to other usage. Oil with ahigh paraffin content has a tendency to congeal during cold weather,producing poor motor circulation.

The new plant is being erected near the east property lineof the Sinclair plant’s side which consists of 750 acres, near theHouston Lighting and Power Company’s Ship Channel plant.


General American Tank StorageTerminals Make Addition to Wharffor Barre~,~ngPurposes ¯ ¯ ¯

The General American Tank Storage Terminals are construct-ing a 125x126 feet square addition to their wharf at their terminalon the Ship Channel for the purpose of barrelling and shippinggasoline and other highly volatile oils.

This facility will materially increase the capacity of the portin handling barrelled and package oils.

/

U. S. Submarine Searaven on good-will visit to Houston.

Plans for $350,000 Paint Plant Drawn ¯ ¯ ¯Plans for a $350,000 paint plant to be erected by the Pitts-

burgh Plate Glass Company on a 21-acre tract fronting on theHomestead Road in the Burchfield Industrial District are beingdrawn by A. C. Finn, architect.

The plant will include four buildings, a four story manufactur-ing building, two one-story warehouses and a one-story office build-ing, is all of masonry, fire proof construction. It will also haveits own water system and storage tanks. A full line of paints, var-nishes and lacquers will be manufacturered. This plant should befinished by the end of the summer.

stay. The Little Theatre will present an old-time melodrama witha Houston cast aboard the showboat. The play will be presentedtwice nightly with two completely different casts. A carnivalwith sideshows and concessions will be held along the bayou banksadjoining the boat’s mooring place.

The Dixie Queen, built last year, is said to be the secondlargest craft of its type in the world. She is 140 feet long witha beam of 37 feet and is built in the authentic oblong, showboatshape. Two deck verandas on the end and two balustraded walksaround the upper and lower parts of the boat give a Southern noteto the craft’s appearance. A square pilot’s house tops the structure.The boat’s auditorium with a balcony and loge around the upperpart will seat 577. The Theatre is planning to remove some of theseats and insert tables so that refreshments and drinks can beserved.

U. S. Destroyer Benham at Port Houston.

Playtime on the Waterfront ¯ ¯ ¯Port Houston, busy with the commerce of the modern world

and point of call of fast, sea-going vessels, soon will welcome acraft out of another era--a showboat.

The D~xie Queen, replica of a Mississippi River showboat ofthe nineteenth century, will arrive in Houston on May 15, pushedby a 93-foot tugboat with a 10-foot paddle wheel. The DixieQueen will travel up Buffalo Bayou and be moored between theMain Street viaduct and Fannin Street.

First Showboat ever to visit Houston, the Dixie Queen isbeing brought here by the Little Theatre of Houston for a I 0-day

CROWN CENTRAL PETROLEUM CORRHOUSTON, T EXAS

40 Houston PORT BoOK May, 1940

Public Wharves

Wharf Length Feet BerthingCapacity

Covered Open RailroadArea Area Car

Sq. Ft. Sq. Ft. Storage

MaterialWharf Shed

No. 1 ................................................ 823No. 2 ................................................ 522No. 3 ................................................ 799No. 4 ................................................ 777No. 5 ................................................ 80Nos. 7 and 8 .................................... 800No. 10 ................................................ 600No. 11 ................................................ 530No. 12, Two story ............................ 530No. 13, Two Story* ............................ 460No. 14 ................................................ 480No. 15 ................................................ 480Manchester Wharf (No. 75) .......... 500Channel Fuel Dock (No. 77) .......... 253Distribution Warehouse ................Cotton Concentration Shed ............

2 Vessels 66,299 35,085 30 Creosoted Pile1 Vessel 53,500 23,190 55 Concrete2 Vessels 35,930 46,031 60 Concrete2 Vessels 60,827 27,841 73 Concrete1 Vessel ............ 3,680 .... Wood2 Vessels 59,340 16,000 .... Wood1 Vessel 72,700 28,338 61 Concrete1 Vessel 66,660 29,160 65 Concrete1 Vessel 95,644 29,260 60 Concrete1 Vessel 91,156 32,500 57 Concrete1 Vessel ............ 49,040 26 Concrete1 Vessel 65,640 21,830 481 Vessel 86,836 10,000 301 Vessel ............ 32,295 20

201,203 ............ 82277,163 ............ 150

ConcreteWoodSteel

ConcreteOpenWoodSteel

ConcreteConcrete and Steel

Concrete & SteelGrain Berth

Concrete (Also Grain Berth) ConcreteConcrete (Also Grain Berth) SteelWood None

ConcreteWood

Totals ....................................7,634 18 Vessels

*Equipped with 17,000 cu. ft. refrigerated space.

1,232,898 384,250 817

Private Wharves

Wharf Owned By Length BerthingCapacity

Material of Wharf and Shed

Ralston Purina Co. (Using Armour Wharf)Armour Fertilizer Works .......................................................... 150 Ft.

Houston Compress Company .................................................... 3,426 Ft.Ship Channel Compress Company ............................................ 800 Ft.Magnolia Petroleum Company .................................................. 150 Ft.Houston Milling Co. (American Maid Flour Mills)

(Using Manchester Wharf) .............................................. 500 Ft.Carnegie Steel Co ....................................................................... 400 Ft.Southern Pacific Lines (Morgan Steamship Line) .............. 1,250 Ft.Manchester Terminal Corporation .......................................... 1,600 Ft.Coastal Oil & Transport Co ..................................................... 150 Ft.Gulf Refining Co ......................................................................... 590 Ft.Sinclair Refining Company ...................................................... 1,400 Ft.

General American Tank Storage & Ter. Co ......................... 150 Ft.Houston Lighting & Power Co ................................................. 150 Ft.The Texas Company .................................................................... 1,400 Ft.Champion Paper & Fibre Co ..................................................... 200 Ft.Crown-Central Corporation ...................................................... 300 Ft.American Petroleum Co ............................................................. 150 Ft.Shell Petroleum Corporation .................................................... 2,600 Ft.Gulf Pipe Line Co ....................................................................... 200 Ft.Humble Oil & Refining Co ......................................................... 1,400 Ft.

(Slip)

(Slip)

1 Vessel Creosoted timber fitted with hopper and conveyor forfertilizer, and pipe line for molasses.

8 Vessels Concrete apron track: Cotton and general cargo.2 Vessels Concrete: Cotton.1 Vessel Creosoted piling and clusters; Oil wharf.

1 Vessel Grain loading berth for elevator with four spouts.1 Vessel Creosoted piling: Handling steel products.3 Vessels Concrete: General cargo.4 Vessels Concrete: Cotton and general cargo.1 Vessel Creosoted piling; Oil Wharf.1 Vessel Steel bulkhead, pile clusters; Oil wharf.3 Vessels Concrete and Creosoted piling: Oil pipe lines and

case goods.1 Vessel Oil wharf: Creosoted piling. Barrelling at wharf.1 Vessel Creosoted piling: Oil wharL3 Vessels Steel bulkhead; Oil wharf.1 Light draft vessel--Barges, etc., creosoted piling.1 Vessel Creosoted piling: Oil wharf.1 Vessel Creosoted piling: Oil wharf.4 Vessels Creosoted piling: Oil wharf.1 Vessel Creosoted piling: Oil wharf.4 Vessels Concrete piling: Oil wharf.

Totals ................................................................................16,966 Ft. 43 Vessels

wings over latin-america - portarchive.com 19 may, 1940... · humble oil & refining company...

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