, 1881-11-12
EAlLROAD- RATES ARD THE PRICE OF
GRAIN.

It has naturally been regarded as very
strange that the price Of wheat should have
advanced III this market in the face Of tile
absence Of foreign demand and the increase
Of freight-rates to the se2board. The fact is
only one Of the speculative anomalies con-
stantly occurring on the Board Of Trade. 1t
is possible that the prospect OF an advance in
railroad rates induced shippers to buy and
send forward rs much stuff rs they could
hope to realize on within the past few days.
But tits also believed that the advance III
rates So far is only nominal, and that, under
the urcteXt Of old contracts, tie railroads are
still carrying grain from Chicago to New
York as low as 1919 cents per 100 pounds~a1ld
that Is cents is about as high a rate as is
charged 10 any shippers: The reason for this
is, that there is little demand for the Western
grain at the East, and practically nome at all
from Europe, at present prices, and the rail-
roads are competing sharply for the limited
grain business. 1t is likewise TRUE that, at
the ruling prices OF grain III Chicago, there
could be no shipment except at Il loss ON any
higher charges for freight, and the railroads
would lose the grain business altogether, as
it weuII 20 down the river, if they were to
exact tie schedule rates.
There Is i very general impression that
'Boartl-of-'rrade operators are an exception
men. and that they proceed upon careful III
formation and Il judicious estimate Of proba-
blitics. This may prove to be mistaken
71otio:i. The spectators, rs rule, are rather
creatures Of impulse and hope than deep
thinkers or philosophers. Tl1ey are noto-
,,riously stubborn, whether they be "bulls" or
."bcars.'' Just now they are determined to
maintain prices ut Chicago without apparent
regard to the exigellcies Of supply and de-
Inand. They have succeeded only in assllr-
:tn,. i, good market for the California and
Oregon surplus Of fifty or sixty millions at
high prices, and enabling the Russian, Aus
tralian, and India graill-shippersto to do more
nouEishing business than ever before. The
llaTb0r at San Francisco is crowded with
ships Of every ll;ttlOn. with c>-3acity rang
ing from 1,to to 1000 TONS, I'LL loading with
wheat. Acc0:tl!n. 10 tile San Fr1ncisco
PAPERS, the vessels III port 'undcr engagement
Tor wheat have I'LL aggregate capacity for
carrying l4l ,0d0 tons, whereas there were
only G3,co0 tons Under engagement at the
salne time last year; and the vessels oil the
way Ut engaged to 70 to San Francisco figure
UP :C:. .03u tons, against 2)l, ,uD tons similarly
contracted tor at.the same date q year ago.
iii the meantime Chicago warehouses are
full Of grain, which promises to remain here
all winter unlcss there be revolution in
prices.
SO far rs the railroads are concerned, we
do not see how they can reasonably hope to
secure any material advance iii east-bound
freights. Ii they try tu push up rates from
T. and IS cents to :,5 and SO cents per hun
dred pounds. there Will not be 1nucl, grain
for them 10 carry. Shippers are not going to
be prepared to pay amy such rates ut any
time during the coming winter. They can
better afford to pay storage and carry their
grain till spring. Tie gfain of,tts West and
Southwest will seek IN outlet through the
Mississippi If railroad rates GO mucil higher
tl4an they are how, aid the railroads would
thus cut themselves off from business. They
cannot do this a shortage. Of business al
ways reyives competition in spite OF irou-
clad pooling agreements and combinations, j