The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-02-18


York merchants on the other side furnished
some assistance toward the statement of
problem which it did nothing, or next to
nothing to solve. 1t was q diagnosis with
out prescription, but even that is an adj
vantage SO far as it protects the patient from
quack remedies 1t seems to us that the
symptoms disclosed were not fully inter-
.preted, and that even as diagnosis the
work of Saturdays conference was incom-
plete. Let us attend to some of the partic-
ulars which did not receive sufficient notice
We call attention to the circumstance that
the discussions of the conference related
almost exclusively to westward bound
freiehts. 1t will be of some assistance in
understanding the problem if we can ex-
plain why tho merchants are 80 loud in
their complaints respecting rates from the
seaboard and so nearly silent in relation to
freights in the other direction. 1t results
from the fact that westward bound cars and
westward bound ships on the Atlantic must
go back comparatively empty, or IT some
get full loads OF cargoes others will have
none. This is consequence of the heavier
and bulkier nature of Western commodities
in proportion to their value. The trains
Of cars which come East fully loaded
with grain, and carry back the value Of
that grain in cloths or groceries, need but a
small part of their room for tho return
ireights. Now, as the cars which bring
grain to the seaboard must Immediately 60
back for other loads. and the cost differs but
little whether they have return freights or
not, load at almost any price is so much
gain. Hence results the constant tempta-
ton to cut established rates whenever it can
be done clandestinely, the agents of the
rival roads reasoning that it is better to take
any rates they can get than to send empty
cars This explains why the complaints re-
late almost entirely to westward freights.
and shows how deeply the difficulty
is seated in the nature of things.
The ground of complaint is not of
transient nature, for SO long as
the products sent to market by the West
are SO much more bulky than the goods re-
ceived in return there will be great deal
Of waste space in westward freight trains
and constant temptation to cut rates.
1t may be said that this disproportion be-
tween eastward and westward freights has
always existed, and yet New York, until
within few years, did not suffer. This
does not refute our explanation, but corrob-
crates it. The business Of New York was
not seriously diverted until Boston, Phila-
delphia and Baltimore had established lines
of steamships. So long as nearly all foreign
goods for Western consumption were i'm
ported into New York they were shipped
West from this city because the distance
between 1.-THE landing place of the goods
and their destination was in our favor. But
Philadelphia and Baltimore are nearer to
the West than we are and their steamships
and railroads make compacts for delivering
goods at rates almost nominal for the sake
of securing business. Ships which carry
out cargoes Of grain and provisions do not
wish to come back in ballast, and the rail-
roads terminating in Baltimore and Phila-
delphia also desire return freights. Rather
than have no westward business the ships
and roads make agreements by which they
underbid the rates from New York. That
the diversion is caused by such bargains is
proved by the case of Boston, from which
goods are sent West at cheaper rates than
from New York, although the distance by
rail is greater.
Having stated what we conceive to be the
pith of the difficulty we approach with more
diffidence the question of remedies. It is
too late, and would be undesirable, to stop
the growth of the rival cities; but it is not
too late to secure proportionate growth of
New York. The expansion of Western
business is so enormous that the time is
past when one seaboard city can expect to
do it oil. We have only the same means of
communication with the West that we had
twenty years ago-namely, the Erie Rail-
road, the Central Railroad and the Erie
Canal, oil of which were worked to
their full capacity in transporting the
last harvest. The tide of Western
traffic has risen so high that it
overfows these channels, and part
of it goes elsewhere. This is in the nature
Of things and cannot be avoided. But it is
not u necessary consequence that rival
cities should ever get more than a proper
Tomato share of the ever-increasing Western
business unless our merchants continue rs
supine as they have been heretofore. They
have always, indeed, been ready enough
to clamor, but never ready to act
The rival cities have got such o start
because their mercantile classes are SO wide
awake and enterprising. With advantages
every way inferior to ours they wore alert
enough to see that the trade OF tho
West is becoming altogether too colos-
sal for. one Eastern port to monop-
olixc, and with praisoworthy pluck
and public spirit each of the rivals
struck boldly for its share OF the surplus.
Our own merchants must emulate this
= Ia I.lt M. 4.