The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-04-18
IFor the Dispatch.J
Canals and Railroads.

In my articles heretofore published in the
Dispatch I have shown by conclusive evil
dence that down to 1874, when the United
States Senate committee made its most able
and exhaustive report, that for heavy and
slow freights canal and other water trans
port was incomparably cheaper than rail
road transport, and that water transport is
indispensable to regulate the cost OF rail
road transport-so as to prevent railroad
combinations and secure cheap Transports
ton for heavy freights.
But we are told that recent Developments
show that canals cannot compete with rail-
roads, even for heavy freights; and it is
claimed that this is demonstrated by the re-
cent results of the competition between the
New York Central railroad and the Erie
railroad on one side and the Erie canal on
the other. And because leading men in
the State Of New York are earnestly adyo-
eating the proposition to make the Erie
canal free of tolls, and to tax the State to
keep the canal in repair, it is claimed that
this is conclusive to show that the canal
cannot compete with the railroads and keep
itself in repair. This view is total mis-
apprehension of the case. The Erie canal,
to retain its business, must not only sue
cessfully compete with the railroads; but
it must also sustain itself against the Wei
land canal in Canada. This canal was built
by the Canadian Government at cost OF
$12,000,000. It is a large ship-canal. 1t IS
short canal, and is closed for longer re-.
Rod by ice than the Erie. Though much
larger than the Erie, the latter has hitherto
successfully competed with it. But the
Government OF Canada has recently appro-
priated $50, 900, 900 for its much greater en-
ioroement. which will greatly cheaper
Transformation over it. The sagacious busl-
ness.men Of New York foresee that when
the Welland is thus enlarged the Erie canal
cannot compete with it unless it is
free from all tolls. 1t is the en-
iargement. Of the Welland canal that
has raised the cry OF "free tolls" on
the Erie, and not the competition of the
railroads. When the tolls constituted one
third OF the entire cost Of transportation on
the Erie the railroad companies combined
to carry freights at heavy loss to them
selves, with the expectation Of breaking
down the canal, and, having gotten that
out of the way, to make up their losses, and
inaddition thereto TO realize large permanent
annual profits. In proof Of this 1quote from
the annual report Of 1877 OF the New York
canal auditor. BE says: The pending
campaign against the water route is unques-
'tlonably causing great loss to the roads. OF
this fact we only know what the officers OF
the roads choose to make public. For the
fiscal year ending September 30, 1869, the
year preceding the reduction in canal tolls,
the gross earnings OF the New York Central
and Hudson River Railroad Company ex-
ceeded payments, other than for construc-
ton. 81 ,137, 1876. From 1870 to 1874, both
years included, the annual surplus was
only $50, 143; and for 1875 their payments,
other than for construction, exceeded the
gross earnings 81 49,, G54 90.
4 Now let us see how the. canal, retaining
tolls sufficient to keep itself in repair, after
having paid back to thsS State the entire cost
OF construction, including interest. and, in