New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-08-12
ELL Is. U1TER.

On wednesday an agreement to restore
freight rates was made. The advance is not
great. But the proposed rate, II cents per
bushel Tor wheat from Chicago to this city, ia
hgh enough to test the theory that the rail
roads cannot sustain themselves in connection
with the water routes. Lake and canal rates
nave been very low The effect of the CONNIE
tition upon the business OF transporters by
water and upon the traffic of the canals has
been great. Yet it has been constantly
claimed that if the railroads should charge
living rates they could get no grain to trans
port, and would be obliged to abandon an es
sential part of their traffic.
The vital fact in this discussion is gem
orally overlooked The transporters by lake
and canal are not usually rich and powerful
corporations. Most of the vessels are ovned
by individuals of comparatively limited
resources. great railroad COMPANY can
carry grain for six months at a constant loss
and yet suffer no serious Inconvenience
Its reserves are but little depleted. or possihIv
1t Is obliged to cut down it's dividends. Evan
then, the loss is only temporary and falls unon
a great many persons, while the earning mower
OF the company remains unimpaired. But one
BAD season has more than once suIiced to
drlve great many transporters by canal ont
OF business altogether. Their boats are idle
ana deterorate; their expenses accumulate:
they get disgusted and sell out what they
have. New boats, in sufficient number to
supply tne loss by years wear, are not
built. The transporting power of the canal
considered as great machine, is materially
diminished Tolls fall off, and the canals can
not be maintained in such condition "a to he
most effective.
Last year, from the opening to Aupust
the canals transported 733, GA tons westward
and 2,266,907 eastward. This year the move
ment has been only 6O9,54O tons westward
and l,5sS,S66 eastward. The decrease. abont
l25,o0O tons, or II per cent, in the west
bound, and $4,000 tons, or 30 per cent. in
the east-bound movement, represents only
part OF the loss to TRANSFORMERS he
cause they have been taking freight ot
rates Tar below those of last wear. The
toiis collected to August l., 1850 were
%o34,oo4 this year, to August 1, the tolls
collected were $266,3S6-less than half os
much The receipts last year were not greatly
III excess OF the amount absolutely necessary
10 keep the canals in such condition that thew
can be prohtably used. With less than half tba
money, that condition cannot possibly ha
maintained, and the officials in charge have M
power to draw from any other fund OF
necessity the property must get ont of ord:r
and it is only question OF time when tbey
will have to be closed if the present comnet;.
ton continues.
Under these circumstances it is said that The
canals force down rates so low that tho roiI-
roads are obliged to carry at a loss or 70
abandon the transportation of bulky freigbt
IN summer. But this is obviously untrna
Rates are too low to keep the canals alive .
that is the PLAIN truth. The trans.
porters by water suffer too heavily
10 desire or to take the initiative
IN any snch struggle. AS matter
OF fact. the reduction of rates this year was