New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1877-01-11
OUR COMMERCIAL PROSPECTS.

OF excessive taxes OF tne properly anu
business of the city, the true cause of our |
commercial stsgnation consists in the d. !
version of trade and travel, from all indi-
rect water lines, upon the more rapid and
certain service of the railroad that the
very circuitous communication between
the East and West by way of the Missis-
sippi river and the coast lines should be
and has been superseded by the numerous
and conflicting lines of railroad is con-
elusive proof that we can not even with
cheap transportation of the current and
Gulf stream, sustain the competition Of
these railroads.
We find this rivalry of water and rail-
road presented by the New York canals
on the one hand, and the various roads
connecting with the West on the other.
Upon theory the tolls and freight on the
canal is much less than the freight on
the railroad. Yet the last report of the
Auditor of New York shows that the gross
revenue from all the canals of New York
was nearly half million of dollars less
than in the year preceding. 1t is then
said
In addition to the great depression in
every branch of business, the year has been
one of unprecedented disaster to the boat
men and to all others engaged in the navi-
cation OF the canals. Many boats have
been laid up, others have been run at a
heavy loss, and none of them appear to have
made any profits.
Among the causes assigned for these
disasters is
An extraordinary competition between
the railway lnes extending from the West
ern States to tide water, which has diverted
| trade from the canals, and Notwithstanding
| the very low rates of toll there has been a
large falling eff in tonnage as well as
revenues.
And it is added that nothing except the
measures of economical reform has ''saved
the canals from total ruin" The pros
pect of returning prosperity to the water
line is more a matter of hope than Of
probability. There is one expectation
which we are compelled to regard as de-
lusive:
1t is believed that the railways can moi
continue permanently their unreasonable
competition without involving themselves
in ruin.
1t is therefore argued that
When such change shall take place thai
forwarders can again realize fair income
from their business, they will, OF course, bt
required to pay such tolls as will provide
tor the canal debt.
| D1k - 10 franlylv c4okal
Until that time 1t must inevitably be (
charge upon the taxpayers of the State,
So the taxpayers are for the present Il
help pay the cost of transportation on tn,
canals.
The hope that the railways will b.
compelled to increase their charges or b
ruined is, TO our mind, fallacious: !
The stock of the railroads of New York
Philadelphia and Baltimore seem to keel
up under the low rates. 2. If the div
dends Of the roads do not keep up an
the stock declines it may be purchased q
less reduced rates, and worked at rat
of charges which will keep up the roa
and pay dividends, not on the first cos
of the road, but on its market value. Z
The cities competing for the Wester
trade will not allow the reduction {
facilities Of intercourse between then
selves and their customers.
They will no more allow railroad
suspend its service than q river. So lon
as railroad will pay for its maintenance
it will run, whether it pays dividends {
not. There are several railroads reporte
insolvent, yet they never stop. PerhaI
they render more service when insolvel
than when held at high market rates. ]
then, thu railroads running parallel vii
the water line Of canal can deprive ar
destroy the canals, why should we expe
, the Mississippi river with its coast shi
,, ping to take trade as against the railroa,
which cross the peninsula between Il
: river and the coast ports? Such an e
pectation is hopeless.
New Orleans should at once dedica
: all her efforts to the development of ra
roads into the Southwestern regions, I
which she has no competitor. She nj
not regain the monopoly Of Western COZ
merce which she once enjoyed, but q
may replace it by trade more valuat
and far more permanent, since 1t c.
never be taken from her by any riyi
The commercial prospects Of New
leans depend upon the construction
material ways which will enable her 81
Z cessfully to reconstruct that great intere
In this connection the commencems
and construction of the Nicaragua int
oceanic canal will have valuable eff
upon our commercial prospects, while |
combination Of other industries with tn.
which already exist viii tend to establI
New Orleans in her true position al
great trade centre between the territor
Of Texas, Arkansas and Kansas on q
s side and Mexico and other foreign Sta
of the continent Of America on the 9th
= OLE OF TEE REDEEMED STATES.
rs Tho Picagaiue Is our aufhoriiy FOR
~ fai1o5ufno.