New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-06-07
CANAL Us, R.fII.


war a. to tie relative prosperity of the trunk
lines, there can be no question as to Its
consequences to lake and canal transpOrters.
They suffered from such contest last year,
and know by sad experience that to them the
battles of tho railway kings mean no good.
The lowest rates ever known in the history OF
lake and canal transportation were made in
consequence Of that struggle. Hundreds OF
boats were driven gu, of the fight scores oil
transpofters were crippled or forced INTO
bankruptcy. But this year opens 0mlnou.ly.
The average rate On the canal during
the month of Nay was only 81
cents for wheat, and 81 cents for
corn, and lat year during the same
month the average was IA cents Tor
wheat and &c cents for corn. 1t has never
been claimed that rates az low as those OF
last year were remuncratiVe, though, by en-
thrsiaaic advocates OF tie Baxter invention,
il was maintained that grain could bo trans
ported at such rates if the steamers oould Get
enough of it to give Them constant employ
ment during the season. Bat now, at the
very beginning of the season. the monthly
average drops ten to fifteen per cent below
the average OF the worst year in the history
of the canal. Nor is this the worst Opening
May at cents for wheat, the tianspoiterS
were forced to yield rapidly until, on the 9th,
tho rate was only SIS GEMS, tho lowest ever
known ON the canal.
These low ralcs brought a large business for
the inst month of the season. The shipments
from Buffalo for the month were 1,52e,O2o
bushels and in May, 1875, they were only
2,23O,lO2 bushels. The lake rates were also
extraordinarily low tho average for May being
3D. cents for wheat, and 2.S cents for corn,
whereas last year the Nav average was 80
cents for wheat and SO cents for corn, and
low lake rates always help the canal materially
in It's competition with the railways. On the
other hand there has been II very large in
crease also in the amount of grain shipped by
rail and there are as yet no signs OF "a DIS
position on the part Of the railways Ia ahan-
don their struggle. Many Of the canal tOGts
have Withdrawn from competition. 1t is not
altogether pleasant To observe the statement
that the Baxter steamers, which were
expected to push rates far below any that the
railroads could reach, are not running this year,
because bir. Baxter maintains that rates are
below the cost of transportation. No doubt
this il the fact. Nor can lie be blamed for
preferring not to exhaust the resources of his
| comparatively new enterprise in struggle
with the most powerful corporations on The
continent. But this very fact brings ont with
painful distincncss tho essential weakness OF
| the canal system, which all sound rcasoners
upon the problem of transportation must have
perceived, namely, that The railways bave, and
| in the nature of things must have, not only
| financial resources which no company en-
gagged in transportation by water can
| command, but an enormous and steady
| business which remains not at all
affected, even in times Of The sharpcst
| competition, and which, in such times, enables
| the roads TO contnae for months 10 bear
heavy losses upon that part of their traffic to
which the competition extends.
For example, even the Erie, which ia the
weakest of the American trunk lines, endured
| the struggle of last year with an average loss
Of gross earnings not exceeding 100000 per
month, but its heaviest losses were earlier in
| the season, before the lowest rates were
reached. la April and May it, gross earnings
compared thus with those OF the previous
|