Daily globe., 1879-07-23
J. WEDNESDAY MORNING, JULY %, 1879 !.

WEDNESDAY MORNING,
scription also Of the outlets by the st. Law
renee river, which are Of scarcely less import
ance to the Western producer. The improve
mentsin the Canadian canals must in the end
force New York to adopt tho policy recon-
mended by Mr.. Richmond, II other means fail
to bring the State to : realizing sense of the
vast importance of enlarging the Erie canal
and reducing the tolls upon it.
Mr.. Richmond, first considering lake freights
i shows that the cost of transportation has been
vessels. the use Of barge with propeller,
aud the use of worn-out grain vessels in the
lumber trade, this last item reducing the cost
by giving the vessel a longer useful life, and
i thus reducingthe amount which it must earn
each year to pay the owner for his original
outlay. :
At the same rates vessel carrying 10000
bushels of corn makes profit Of $740 on the
/ round trip from Chicago to Buffalo and return,
where a vessel carrying 81 900 bushels gains
but $3.50. The rates in this case being
cents per bushel for corn and GO cents per ton
for coal Carried on the return trip), giving to
| each vessel the same proportionate return
cargo.
| Calling the rate &c. per bushel for corn and
81 per ton for coal, the small vessel would gain
| $74350, when the larger one would show $2, $40
on the profit side Of the ledger. 81
Comparing two propellers, one carrying 49,
600 bushels of corn at &c. per bushel, the other
go, 600 bushels at the same rate, each having
return freight at 60c. per ton, in the same pro-
portion to its tonnage, the figures show profit
to the smaller vessel of but $173, while the
larger has cleared 81 $3.50. Make the rates 4c,
and profit for the larger propeller is shown of
$4, or. so against 81 ,433 for the smaller.
steamboat carrying 45, 900 bushels, towing
a barge carrying 80,O 900 bushels, with a freight
to Buffalo of &c. per bushel, and return freight
of 6Oc. per ton would clear 81 ,665. .25 Make
the rates DC. down and 81 upsa the profit
would be $5, 5,4s5.35. ij s
These calculations are made in detail by Mr..
Richmond and do not rest upon theory. In
them the cost of insurance and repairs is not
considered, but these elements would not great
ly change the comparative profits of the large
and small vessels.
1t appears conclusively that the larger the
vessel the less the cost per bushel for transpor-
tation and, at the same rates, the greater the
proftipe bushel to the csrrier. The cost to
the ,rrier being reduced, he can reduce IL
proportion the charge for freight. This reduc-
ton competition would force him to make,
and this reduction has been made. The lakes
now have feet of large vessels, propellers
and barges and freight rates are much lower
than in past years. s,:
But this brings cheap transportation be-
tween the Northwestern cities, and points on
the Atlantic in the United States, only to Buff
falo. Some cheap outlet from there to the
east must be found.
The principle that the larger the boat the
less the cost per bushel for transportation APP
plies as well to the canals as to the lakes. Mr..
Richmond's figures are conclusive on this
point, Wewill not repeat them as the propo-
sitiOn is clear without demonstration, and we
have already illustrated it as to lake vessels.
Previous to the enlargement of the Erie
canal it was asserted, as an engineering theory,
that the effect would be to reduce the cost Of
transportation fifty ger cent.
IA statement on page 124 of the State en-
gineer's g report, 1868, Of the actual cost from
1885 to 1868 shows reduction of fifty and one
half per cent. s
''In the same report it is estimated that the
relative cost of transportation is as follows
sold Erie canal, feet water, boats
76 tons, cost 1880. Ala mills.
England Erie canal, Z feet water,
.p boats 2lO tons, ms cost. 80.
boats go tons, cost ost................1.4 1.4 8
e (Annual Report of the Board OF Mana
gs5s; gs7s NsM sgs York Produce Exchange,
With high tolls and small boats on the canals,
the railways controlled the trade from the end
of the lakes to the Atlantic seaboard in the
rally sought to secure the lake traffic by own.
ing vessels and giving through bills of lading
and other advantages to shippers by their lines,
thus establishing railway monopoly on the
lakes, as the independent vessels had no means
Of sending their cargoes forward except by the.
canal, which was SO burdened with tolls that
its patrons could not compete with the rail-
ways.
During the era of high tolls, the Erie, Penn
sylvania, and New York Central railroads
owned or controlled steamship lines connecting
the upper lake ports with their termini at
Dunkirk, Erie and Buffalo. These lines are
still in operation. Independent vessels are un-
able to compete with them, for the railways
favor their own lines, and the canal mp to this
time has been too expensive for relief to be
found there. Bsf;H
STATEMENT
showing cost of trip from Buffalo to New York
and return of a steam canal boat and consort.
Trip made in August. 1877.
2oo o bushels corn, cents per bushel..s 574 90
Demurrage in New York. ............ 46 48
Towing in New. York, down and up