New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-05-12


Fuder. - Let these Conservative business
men saaAefS hrmly 70 their wke-deter-
mination, and Louisiana will soon be as
peaceable in a political canvass as YER
mont or Rhode Island Il j. their money,
wrung from them by threats that kesps,
up the strife almost a. much as the hope
Of capturing the State offices.
OUR COMMERCIAL CUTOFF
We are sincerely sorry that the o.
PRECIOUS current Of the Mississippi has 80
much interrupted the trade and impaired
the property values Of Vicksburg. New
Orleans itself is threatened With IN analo-
gous diversion of trade and similar in
jury Of values from another cause. The
five great railroads leading from the prin-
cipal Eastern seaports to the Mississippi
valley have gone to war for the carrying
trade once due exclusively to the Ohio
and. Mississippi rivers and even OF the
Northern lakes and canals Successful
efforts have been heretofore made 10 regu-
late the competition among these roads
by agreement among themselves. This
co venant has been occasionally broken up
by the parties themselves Lately, it ap-
pears that some of these roads having the
shortest lines to the West have renounced
the compact, cut the agreed tariff, and
sailed in against any aud all competitors.
The Baltimore and Ohio, and the Pennsyl-
vania Central claim these advantages,
while the New York roads have been re-
luctantly compelled to 90 into the war
for se.f preservation. "A manager Of
one Of these roads" is introduced by .
New York Sun reporter, and in reply to
the question, "Do you think the war is
going to be . hot one5 answers:
Most assuredly; the worst We have ever
had. Already there is most thorough con-
fusion ID the freight market, and each road
il striking out for itself. The fight began
in Boston because all the Eastern trunk
lines were averse to taking the lead, pre-
ferring rather to follow in the footsteps of
there will probably be Q break of from
thirty to fifty per cent in passenger rates.
and freight will be carried merely at nomi-
nal figures. All hands mean fight, and
think it il going to be to some extent
question of endurance. The roads that are
in. the hands of receivers, such as the Erie
and the Vermont Central, will have the
best Of the fight, for they hare neither bond.
interest nor stock diridends to pay, and
IN fl, fbpi1s nm
expenses But the solvent roads are placed
in the position of the merchant who pays
dollar for dollar, but who has bankrupt
neighbor on each side who is selling OH at
fifty per cent below cost. They can not
make interest and dividends st the current
rates. When they 60 lower still they will
have to run q; . dead ,oss.
To show the ruinous rates to which COM
petition has reduced the roads carrying
East-bound freight, it is only1necessary to
cite one incident. Late last week the
Great Western, Michigan Central and New
York Central, which are close connections.
contracted to transport 300, 900 bushels OF
grain from Chicago to New York at twenty
cents per 100 pounds. At this rate the
Great Western netted exactly 81 50 per
car load, after paying bridge tolls at Black
being 800 miles. In other words, it hauled
loaded Oars at less than one cent per mile
each.
The war as to passengers is anticipated
to be as reckless as that in regard to the
freights Boston cuts the compact rates
to Chicago from s22 s. to SIG. 1t is
probable that this same rate will be made
out of New York. In that event the other
compa MES would have to follow suit, and
centenni travel will be cheap. In local
rates, both freight and passenger, but lit
tie change is anticipated, since all the
great lines rely on their way traffic to
make up in part at least for their immense
losses on through business.
Here then opens contest against the
Mississippi river on the part Of five or six
rival routes, each one of which carries as
many tons as our river does, and some OF
which carry from three to five times its
tonnage, with almost a monopoly of the
merchandise and travel. There is ready
competition among the four or five routes,
but it is q concentrated competition
az ainst the Mississippi. "Ab," perhaps
will exclaim some believer in the superio,
economy of river transportation, "bu'
| look at the ruin which this competition
must bring upon these railroads by thei1
mad rivalry" To this we reply that these
roads can carry through freights and pas
sengers at greatly reduced rates, because
there is no change proposed in local rates
If, however, these roads should be ruined
as dividend paying investments, they viii
become even more formidable to the
Mississippi than even at present. If The
reader will look at the words italicised il
a quotation above, it will be seen that thu
Erie and Vernon. railroads will have thu
best of the fight, because they have onl!
to s.look after their running expenses.
These roads are insolvent. They are a
if given to the public, and no other cos
than to keep them up and keep them IL
running order. There will have been
loss to the builders, but the road viii
INST stop. 1t may become as cheap wa.
as the river itself, No one need expec
that the railroads will cease to conduc
travel and transportation, unless som
more effectual mode of service. shall b
discovered. We may add that since eacl
of the great Eastern seaport cities depend
upon this direct commerce of the West TO
prosperity, they will never consent to sus
pend these ways OF communication.