Copyright USGenNet Inc., 2013, All Rights Reserved USGenNet Data Repository Please read USGenNet Data Repository Copyright Statement on this page: Transcribed and submitted by Linda Talbott for the USGenNet Data Repository http://www.us-data.org/ ========================================================================= Formatted by USGenNet Data Repository Chief Archivist, Linda Talbott All of the above information must remain when copied or downloaded. =========================================================================== REPORT of Board of Directors, Executive Committee and Officers of the Lake Carriers' Association ------- To the Members of the Lake Carriers' Association: Herewith your Board of Directors, Executive Com- mittee and Officers respectfully submit their report of the operations of the Lake Carriers' Association during the year 1913. It was pointed out in the report for 1912 that the year 1913 had opened with a firm, vigorous and rising market and that the business outlook left little to be desired. In volume of business the year has shattered all records. More ore, coal and grain were moved than have ever been moved before and the rates were such that the business was profitably handled. Five cents more was paid on ore and also five cents more on coal to Lake Michigan ports over the rates prevailing dur- ing 1912. The grain rate was somewhat lower than the average for 1912, but was nevertheless profitable. In addition, stages of water had greatly improved so that the modern carrier was enabled to carry a few hundred tons extra per trip. Dispatch at both loading and un- loading docks was excellent and the vessels also enjoyed a somewhat lower rate of insurance, so that all these contributory things conspired to make a profitable sea- son. It was very clearly demonstrated during 1912 that the modern carrier working exclusively in the ore trade could scarcely break even at 40 cents, and were it not for the fact that grain paid a fine premium in 1912, few of the vessels would have made any money. As vessel owners were practically chartered up to --------------------------------------------------------- Page 16 capacity, they were desirous of opening navigation as soon as insurance began, but notwithstanding the clem- ency of the winter ice appeared to linger in the rivers and it was not until May that navigation was fairly under way. The grain fleet which left Fort Wil- liam upon the official opening of navigation on April 15th was practically delayed for ten days in the ice, though the ice crusher St. Ignace made repeated at- tempts to release the fleet. The ice went out of the Straits of Mackinac somewhat earlier and the steamer J. J. Sullivan of the Hutchinson fleet passed down on April 19th. The Canadian canal opened for service on April 14th and the American canal on April 18th, though obviously the vessels could not take advantage of it owing to ice conditions. The ore movement totalled 49,070,478 gross tons, which was 1,634,701 tons more than the movement of 1912, when 47,435,777 tons were moved. It was 16,940,- 067 tons greater than the 1911 movement when 32,130,- 411 tons were moved. Eagerness to begin the season was well reflected in the monthly movement. Nothwith- standing the handicaps, 866,387 tons were shipped in April last as against 204,042 tons for the corresponding month of 1912. May for the first time in the history of the trade became a 7,000,000-ton month and also for the first time in the history of the business over 8,000,000 tons were moved in July. Up to August the movement showed a superb lead over the corresponding months of 1912, but after and including August the pace began to lessen so that no month thereafter equalled the ship- ments of 1912. The reason is probably to be found in the gradual feeling of uncertainty which began to spread over the country as the summer wore away and which had reached a stage of quite pronounced depression by the time navigation closed. The country's volume of trade grew sensibly less though it is encouraging to re- port that since the first of the year a better spirit has been prevailing, due doubtless to more liberal buying and the hope is entertained that by the time navigation is resumed industry may again have reached a normal state. The insurance valuation remained at $51.00 per ton, but the premium was reduced from 5 3/4 per cent to 4 3/4 J. H. SHEADLE Vice-President ---------------------------------------------------------- Page 17 per cent for the year and 4 1/2 per cent for the season. In addition a preferred class of tonnage enjoyed a rate of 4 per cent for the year and 3 3/4 for the season. The ten- dency of late years, however, among vessel owners oper- ating a considerable fleet of vessels is to carry their own insurance. While no loading or unloading records were broken during the year, it can be safely said that the trade im- proves annually in efficiency. The tonnage handled was enormous, heavier than it has ever been; every ship that was fit for service was in commission. Every ves- sel carried a somewhat larger cargo than usual, and yet notwithstanding the extra strain upon the docks, the average detention in port was but slightly increased over that of 1912. The machinery everywhere worked with clock-like precision. Lake interests in general are to be congratulated upon the very efficient way in which the problems of bulk freight handling have been solved. Up to November it was the confident belief that the underwriters, notwithstanding the reduction in premium, would enjoy the most profitable year in their experience on the lakes. Up to that time casualties had been few and unimportant. A few old craft had succumbed but no modern vessel had been destroyed and the loss of life was the lowest in many years, namely nine. How- ever, fate ordained that the second week of November should mark the greatest disaster in lake history. Early Saturday morning, November 8th a northwest storm struck the head of the lakes and vessels in general re- mained in port or kept under shelter of the land until its violence had been spent. Early Sunday morning the wind had died down and several modern freighters put out into Lake Huron. About noon the wind freshened and changed direction from northwest to north and finally to northeast, blowing with increasing velocity until it reached a maximum of 79 miles. It is presumed that the vessels that were caught in it headed for the east shore but the storm continued much longer than storms ordinarily do, changing direction frequently, and masters that lived through it claim that they have never encountered anything equal to it. It was cyclonic in character, the waves running one way and the wind blowing another. The beaches on both the east and ---------------------------------------------------------- Page 18 west shores of Lake Huron were destroyed for hundreds of feet back of the normal shore line, proving its cyclonic nature, and when the storm subsided it was found that eight staunch ships, representing the best of American, Canadian and British shipyard practice, had totally dis- appeared on this lake, and that two of them had disap- peared on Lake Superior, with a total loss of lives of 235 lives. Not a soul was saved on any of these ten ships. Six of these total disappearances were vessels belonging to our Association. In addition two barges foundered on Lake Michigan and a lightship foundered in Lake Erie, while six vessels became constructive total losses by either being thrown upon the beach or by being pounded by the heavy seas. Of these constructive total losses, five were enrolled in our Association. Twenty modern carriers stranded in the blinding gale, entailing heavy repair bills. Practically every vessel that was out in the storm found a visit to the shipyard necessary for repairs to deck houses. Further particulars of the storm and of the relief work performed under the super- vision of your Welfare Committee will be found else- where in this report. It will be recalled that in the closing weeks of navi- gation in 1912, furnace interests were very eager to es- tablish a basis for the operation of 1913. Good prices were ruling for pig iron, which had, in fact, been enjoy- ing an ascending market for several months, and as the demand for ore was strong, the furnace men were anxious to establish prices for the new year. Ore prices were accordingly established upon a basis of just 10 cents lower than the scale of 1911, working out, there- fore, at from 55 to 65 cents a ton higher than 1912 prices. Before the first of the year practically 45,000,000 tons of ore had been covered at these prices. There has as yet been no discussion of the 1914 program and the situa- tion therefore affords a striking contrast to that exist- ing last year. In spite of the marked depression of the past few months, the year 1913 stands unexampled in output, the country having produced 30,652,767 tons of pig iron as against 29,325,513 tons in 1912 and 23,198,601 tons for 1911. Every month of 1913 showed a gain over 1912 -------------------------------------------------------- Page 19 up to October, but since that the slump has been quite pronounced, December producing nearly 1,000,000 tons less pig iron than the corresponding month of 1912. The year 1912 closed with 291 stacks in blast; the year 1913 closed with 191 stacks in blast, a decrease of 100 stacks. Various causes have doubtless contributed to this con- dition, not the least of which is the delay in acting upon the request of the eastern railroads for an increase in freight rates, to which must be added the uncertain- ties produced by tariff and currency legislation. During the year the Gilchrist fleet, formerly one of the largest fleets on the lakes, was sold at receiver's sale and seventeen of its steel ships were merged into a new fleet and placed in very strong hands strengthen- ing the general lake situation financially. The Wilson Seaman's Bill which passed Congress in the closing hours of the last session was vetoed by President Taft practically the last event of his official career, on the ground that time was not left for him to consider its provisions. Vessel interests in general will commend the wisdom of the retiring president in this action, as the measure as drawn would have worked a positive hardship to the lake fleet in that it proposed to increase the crew aboard ship by at least 33 per cent. Vessel interests in general are now confronted, how- ever, by another measure of an extremely pernicious character. This measure, which has already passed the Senate, is known as the Wilson-LaFollette Seaman's Bill, and was inspired by Andrew Furuseth of the In- ternational Seaman's Union. It provides that life boats to accommodate all passengers and crew should be car- ried on all steamers, irrespective of the waters in which they ply, and that ever lifeboat shall have two able seamen assigned to it. The bill then designated what the term "able seaman" means. To be an able seaman one must have served three years in the deck depart- ment of a deep sea vessel or a vessel plying the great lakes. Men that have served on Chesapeake Bay, Dela- ware Bay, Long Island Sound, and similar waters would not be regarded as able seamen and would not be elig- ible under this bill. Everyone who is at all familiar with the sea knows that the able seaman as formerly ------------------------------------------------------- Page 20 understood no longer exists. His place is taken by deck hands and rust cleaners. Every department of the ship mans the life boat nowadays and the men handiest with a pair of oars are as likely to come from the stokehold as from the deck. This measure is to be considered by the committee on merchant marine of the house during the present month. If passed it will work great injustice to both pas- senger and freight steamers in the United States, in addition will also work great hardship on foreign ves- sels trading with the United States, as it legalizes de- sertion of crews. Notwithstanding the fact that crews on foreign vessels may have signed articles for the round trip from their home port and return, there is neither penalty nor provision provided for returning de- serters to their ships. Every possible effort has been made by the officers and members of our Association in appearing before both the House and Senate committees and protesting vigor- ously against the passage of this measure, and at several hearings we have had a number of our most experienced masters and engineers in attendance to give testimony as to the injurious effects of the bill on lake traffic if passed. It is to be hoped that wiser and saner counsels will prevail before the bill is enacted into law. ===========================================================================