The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-07-22
THE CANALS.

CANAL NEUTRALITY-SUSPICIOUS. IN EARNINGS
AND ToNSAGE--EFFEcr OF RAILROAD conf
PETITION ON THE WATER RoUTEs--A POLICY
TENDING TO DEAR TRANSPORTATION IN THE
END-THE REMEDY.
ALBANY, July o. 1879.
AIR. George w. Schuyler. Auditor Of the Canal
department who is the chief financial officer of tho
State canals. in reply to Inquiries to-day consented
to make public the accompanying statement regard.
ing the condition and prospects OF the canals:--
what are the prospects of a successful season on
the canas?'' was asked
whether. by successful season. you mean"
said Mr. Schuyler cone profit the carrier or ono
showing gain in tonnage and revenue. it is too
early in either to determine Before the rail-
ways were equipped beyond the necessities of their
local traffic estimates could be made with some ac-
curacy. Formerly supply and demand regulated
freights and tonnage by the water route, but now
the railways are so extensively equipped and
cepting as they do all through traffic between
places of production and the lake ports they
have the power and the facilities to pre-.
vent the most bouuteous harvest and tina
liberal demand yielding compensatng
freights to the carrier or adding to the tom
mage and revenues of the canals or course.
when the railways exercise this power to secure the
through traffic thcy do it at serious loss to thom-
selves. which they possibly by extortonate
rates in winter ana unjust assessments their local
traffic. During May and June of this year canal
freghts have been lower than the rates which pre-
vailed for the months last year. and have been
remunerative. The harvests promise to be very
abundant, and the demand is likely to be equal to
the supply. that during the remainder of the
of navigation the movement in Western products
may be so large that remnnerative freights and an
increased tonnage are possible results for tho season
in its entirety.
ESTIMATED EARNINGS.
What seems likely to be the amount earned?"
.For the fiscal year which will end the 30h or Sep
TENDER next the receipts from tolls will probably
aggregae Ss45 600 against s9sS 900 for the previous
fiscal year. Including the receipts the first week
in July this year there is falling Oft in revenue.
compared with last year. OF S122.oo0 This loss has
occurred Oh the business OF eight weeks OF naviga-
ton rs compared with eleven weeks OF last
There yet seventeen weeks of navigation TO tho
4th of November in which this loss be recovered.
1t does impossible but i'll view of the fact that
the railways seem more determined than ever to di-
vert traffic from the water route regardless of cost.
it would rash to predict that this loss will be re-
covered before the close or navigation.
What decrease is there in the amount of tonnage
transported and also il any. in the number of boats
i'll usey
From the opening of navigation to the 30th Of
June this year. the total movement by canal showT
decline of 2S7 522 tons compared with the previ-
Gus year The number OF clearances issued at Buff
o from the opening to the 30h of June, this year.
l,Go5 against 2.9O6 last year. 121I less this
year than last. In 1878 the canals opened about
three weeks earlier than this year. The average
number Of cearances per week III 1878 being o90 aud
in 1879 only "a shows that the earlier
for the falling off in clcarances this year.
This indicates that there fewer boats in commits.
sion. or else they have not found ready employ
ment last year. The grain shipments from Buffalo
by canal the close of June. 1870 compared with
the same period last year marx decline OF about
nine million bushels. while the total receipts of grain
at New York tor the year ending June 80. 1879. Ii
compared with the previous year and almost ldeuti
year. 1t thus appears that what the canals have lost
this season i'll grain the railways have gained
EFFECT REDUCTION IN EARNINGS
"What will be the effect ofs the reduction in
ngs OF this upon the transactions OF next year
"The earnings of the current fiscal year not
applicable TO the payment of expenses OF mainte.
nance the next fiscal year. They simply determine
how much may be expended for ordinary and extra
ordinary repairs the next fiscal year. and should the
receipts aggregate the sum OF S43 OO it is antci~
pated they WILL that sum will be sufficient except in
of disastrous breaks. to maintain the canals.
aud yet the revenues may fall short of the amount
necessary to be expended, in which event provision
must be made from other sources The effect Of ting
smaller contribution to the sinking fund and lttlS
larger deficiency tax than last year.
'Arc the canals i'll good repairT
"They are said to be in excellent repair and navi-
CATION never better. There have been breaks
which have caused some detention. but mono OF
serious character
DECLINE OF PATRONAGE.
"What seems to be the reason that merchants ara
patronizing railroads rather than canal~y'
'Sef-interest. Merchants buy of those who sell
cheapest and ship by that route that offers thu
lowest rates OF transportation. The railroads
inaugurated the opening of navigation this
season by giving rates lower than ever be-
water. For instance. flour has been taken by rail
from st. Louis to New York at eight cents per bar
REL distance of LOO miles. and wheat from
Chicago to New York at four and onc-half cents per
bushel Eight cents barrel from st. Louis to New
York is only seventy cents per ton. or less than
two aud one-iourth cents per bushel OF wheat. {
don't believe there is merchant in Albany who
pays less than 81 ton from New York t. Albany,
u farmer who can ship his potatoes from Albany
to New York fer less than eight or ten cents bar
rel The average rate for 1878 from Chicago 10 New
York by lake and canal was niue cents
ably afforded moderate compensation, but
moderate. in fact that builders not construct
ing lake and canal crafts fast as the old ones de-
cay and go out OF use IL these rates by rail wer0
profitable and therefore likely to be permanent. the
gradual disappearance of business craft from t,G
lakes aud canals might be cause for regret. but
would give no occasion for alarm Unremuncratiw
railway rates now mean clear transportation tho
end. According to sworn returns Of the New Yorh
Central and Hudson River Railroad for 1878 II ccsf
that road six mills per ton per mile to move iu
freight which rate is equivalent to about 81 "a pes
ton, and about eight cents per bushel for wheat
from Buffalo to New York. From what have stated
il will be that the rates offered by the roads are
but small portion of the cost This singular fact
before us the business of route which can carry
actual cost by rail from Buffalo to New York. is being
illesti:natcy diverted, and the equipment OF that
route and the capital invested therein is gradually
declining-or perhaps 1t would be nearer the truth
to being destroy cd by gigantic corporations,
aided and led by those created by our own State
REMEDY FOR EXISTING EVILS.
"What is the remedy for The existing ovils?"
"a healthy competition is always desirable and
should be encouraged. IL prevents monopolics
which destructive TO the general prosperity Wa
know that the water route is practically cheaper
than any other, and during the OF navigation
at least assures cheap transportation without dis
elimination. and compcs reasonable by rail to
those who employ it. The consolidated capital of
the railroads is enormous and the control thereof
vested i'll few hands. The equipments OF the
water routes owned by individuals
among whom there is consolidation OF in
teresis. and 1t is easy to they entirely
vt the mercy of the railroads. competition
which renders the employment of these equipments
Improbable tends only to one result-thcir abso-
lutte abandonment and destruction. Such u result,
all must concede, would toe "a national misfortune.
The necessity tor some remedy tor existing evils il
apparent. The active support OF the canals would Od
notice to the rail ways that the state III earnest
III the interests OF cheap transportation and might
have inil ucncc on their policy II. however. they
are determined to break down the water route, and
thus remove the only obstacle to higher treights,
they will continue the war until the canals cease to