, 1873-09-16
TILE COST OF TRANSPORTATION,

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TILE COST OF TRANSPORTATION.
Tho testimony Of Mr. Hayos, General Man-
Empire Transportation Company, furnishes
some light on tho general question OF tranapor-
tation. In the frat place, Mr. Hayes calls atten-
! ton to tho faot that the City Of New York has
no proper facilities for receiving and handling
grain. When grain reaches that city by rail. it
is emptiod in quantities OF throo or four car-
loads into burgess, and Ia bought and sold
from thcao barges. There is no system Of
inspection and no warehouBing, but great
confusion and intoruliuablo dolay. Thezo
bargoa which he pronounced to DO a sort
OF D Credit n1obilior arrangement, charge
from 60 eonts to 81 per ton for their
service, which would be unnecessary il
thero were warehouses at Now York. Thia
explains why 1t is that Ohicago eau roccivo into
warehouse the contents Of over 1000 cara Of
grain in day, whilo 900 cars arc enough to
block all tho railways at Now York. Tho samo
gentleman explained tho operations Of tho
through Hnos. Ordinarily, car belonging to
ono company running ovor tho road OF ono or
moro companiea would earn for it8 ownor = cor
tain amount from these latter companies In al-
dition to the freight on itB contents. Tho limo
OF which ho was manager run over tho roads Of
agroat many companies; each railway company
put in its quota Of cars, md the business Of the
"Dluo Line was to keep tho accounts Of these
several companies with each other for the mile
| age and earnings Of thoir respective
! cars. AL tho profits derived wont to
tho railway companies. To manage this busi-
noBa required number Of officers and agents,
but tho cost he did not think was creator than
it each road conducted its own share Of the
through business separately. He explained
that through business could be done at much loas
expense than local business. Tho railroads in
the season OF navigation Ind to compete with
tho lake and canal route, and thoy had to ndjust
their through ratos accordingly Tho rates by
lake vary according to circumstances, the Charge
for grain from Chicago to Buffalo sometimes
rising from or centa por bushol to II conts.
Last weok, tho luke rate advanced 10 cents per
buahel, making tho wator ratio for tho timo
higher than by a1l-rail. Railroads got all they
could. When wster rates fel1 ratoa by
rail fell also, and uico rersa- Tho rates OF
railroads for grain were controlled by tho
supply and dcmand. When no froiglita
offered" at one rate, they had to reduce.
A1r. Potts asserted. as geuoral principle, that
ut ia an unwiso policy to charge excessive ratcs,
for by 30 doing We cripple our customers md
provent increase Of production = and he added
that :" thore arc railroads that charge high
price for short distances when thoro IL no CON-
petition; but that Ia not good policy, and 1t is
mostly done on roads governed by people of lim-
Ited railroad experience" II tho lattor deacrip-
tion be juat ono, then tloro must be large
want Of experience in the management Of some
lines running out OF Chicago.
All thls, however, still leayos certain dinluul-
ties unBolyed. Theao are. /, That whom nayiga-
tion clones there ia mora grain and other pro-
duce to go forward than tho present lines can
move, especially with tho inadequate, o1ponsiyo,
and unsatisfactory moana Of handling it In
New York. 2. That this surplus Of freight Offer
cd enables tho railroad companies to advance
their frolghts even to tho point Of tho ontre
commercial value fcertain kinds Of grain and at
tlmoH prevents thclr carrying grain ut any price,
5. That there is q lack OF ocean transportation,
which haH resulted In IN advance Of froights to
Europe to double the ratoa which would couati-
tuto a fair compensation.
Again; tho rule OF railways that hauling
freight to way station and leaving tho car thore
to be reloaded involves an expenditure which is
unknown In tho case Of through freigAta, and TO-
qulrea larger rates, cannot Justly ba applied
to points whero grain IL shipped by the CARLOAD,
and ia sont to the destination OF tho road. Tho
rule which authorlzoB higher ratog for way
freight, consisting OF part Of q carload, cannot
apply to tho transportation Of one, two, or a
dozen fully-ladon cara destined to the onl Of the
road. Why should not these fall under the head
OF through freight when moved 200 miles as vol
as whom moved 900 milos ? It Ia proper That
freight moved 200 niloH to tho end Of tho rond
should pay perhaps something moro per ton Per
mile than whom transported 900 ntos, but whsn
grain coming to Chicago IN average distance Of
200 mica Is charged ut rates Which, IL oxtendod
to Nav York, would mako tho cost
OF sending grain to that city 90
aentH Ia 8t mar huaha1 thcra c.n