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Report of the First [-Twenty-Second

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Report of the First [-Twenty-Second REPORT OF THE SEVENTEENTH HEAEING HOOSAC TUNNEL CONSOLIDATION, BEFORE THE COMMITTEE ON RAILWAYS March 6, 1873 BOSTON : WRIGHT & POTTER, STATE PRINTERS, No. 19 Province Street. 1873. — SEVENTEENTH HEARING. Mr. Charles C. Coffin submitted the following statement in regard to the cost of transportation by different routes and at different seasons of the year. Cost of Transportation. Wheat was carried from Chicago to Buffalo in 1871, accord- ing to the report of the Buffalo Board of Trade, at the follow- ing rates : By Steamers. In May, 3 to 4 cents per bushel June, 4 to 6 " u it July, . 6 to 7 " " a August, . 6 to 7£ September, 7 to 18i " u " a October, 11 to 18J u November, Si to 13£ " The distance is 936 miles. It is stated that there is a profit in carrying grain between those ports at four cents, or at the rate of 1^ mills per ton per mile. The season average of freight on wheat from Buffalo to New York by the Erie Canal, including tolls, for five years has been as follows (see report N. Y. v Produce Exchange, of February 10, 1872) :— 1868, 15.06 cents per bushel. 1869, 14.07 " « 1870, 11.02 - 1871, 12.70 " " 1872, 13.00 " " The average is 13.36 cents per annum. , — — 4 The following statement from the annual report of the Buffalo Board of Trade for 1871, shows the rates on the dates specified : April 24, to May 6, 12 cents per bushel. May 13, May 20, ii May 27, ii June 3 10J June 10, to June 24, 10 July 1, July 8, Hi July 15, to July 29, n July 29, Hi Aug. 5, 12 Aug. 12, 11 Aug. 19, 12 Aug. 26, Sept. 2, 12$ Sept. 9, 13j Sept. 16, 14 Sept. 23, 14 Sept. 30, 14 Oct. 7, 14 Oct. 21, 14 Oct. 28, 16 Nov. 4, 16 Nov. 18, 16 Nov. 25, 17 From this, and from the statement in regard to the cost of lake freights, it will be seen that there was a steady advance in rates from August first, when the new crops were being forwarded, to the close of navigation. It will be seen also that the great bulk of grain carried by lake and canal cost from twenty to twenty-five cents per bushel. The tolls on the canal prior to 1870, were 6.21 cents on wheat, and 4.83 on corn; since that year they have been 3.15 cents on wheat and 2.89 on corn. Taking the average for the Hve years at 13.36 cents be- tween Buffalo and New York, we have the cost as follows : — — — From Chicago to Buffalo, . 4 cents " Buffalo to New York, . 13.36 " 17.36 cents All-Rail Transportation. During the year 1871, the rates between Chicago and New York as agreed upon by the railroads for grain in bulk, per 100 lbs., were as follows : Jan. 1 to Jan. 16, 60 cents per 100 lbs. Jan. 17 to March 8, 55 March 9 to April 6, 50 April 7 to June 12, 45 June 13 to July 8, 40 July 10 to Aug. 10, 45 Aug. 11 to Sept. 20, 50 Sept. 21 to Oct. 1, 55 Oct. 2 to Oct. 24, 60 Oct. 24 to Dec. 81, 65 It will be seen that the lowest rate continued less than a month ; that by far the largest portion of grain transported during the year was at the high rates. These rates by the ton per mile would be as follows : At 45 cts. per 100 lbs. 0.84 cents per bushel, . 23.86 cts u a a 50 " 0.95 " . 26.93 " u u a 55 « 1.05 " . 29.78 " u u a 60 " 1.16 " . 32.80 " u a a 65 " 1.26 " . 35.73 " By Lake to Buffalo, Rail to New York. Taking the rate from Chicago to Buffalo by the Lake, at four cents, and from Buffalo to New York by rail at the autumn rate of $1.05 cents per ton per mile we have the fol- lowing : Chicago to Buffalo, 4 cents Buffalo to New York, 500 miles, by N. Y. Central and Hudson River at 1.05 cents, 15.80 19.80 cents — —; 6 This is 2.44 cents higher than the average on the Canal but we are to keep in mind the fact that the rates on the rail- road were kept down nearly to the rates on the Canal during the summer months, and that there was an advance in the rates on the Canal as well as upon the railroad during the autumn. Chicago and Boston,— Tunnel Route. From Chicago to Oswego by the lakes and Welland Canal 1,078 miles ; at 11 mills per ton per mile, and 25 cents per ton through Welland Canal we have the following state- ment : From Chicago to Oswego, 5.33 cents From Oswego to Boston, 343 miles, at 1.05 cents per ton per mile, ....... 9.86 " 15.19 cents This shows a difference in favor of Boston as follows : Over the lake and canal route 2.17 cents per bushel ; over the lake route to Buffalo, thence by rail to New York 4.61 cents per bushel ; over all-rail from Chicago to New York, 14.98 cents. Midland and Oswego Railroad. When the Midland and Oswego Kailroad is completed, New York will be twenty-four miles nearer Lake Ontario than Boston ; but the grades will be in favor of the tunnel line. This coupled with the fact that Boston is one day nearer Eng- land than New York, and also with the well-established fact that grain can be transhipped at less cost here than at New York, would enable the Boston shippers to secure that trade. The Position of New York. On the tenth of February last, the New York Produce Exchange held a meeting to take into consideration the threat- ened diversions of trade from the Erie Canal to other channels. In the report of the committee appointed to take the subject into consideration we find the following statement (p. 12) : — — "A cent or two per bushel, or even a fractional part of a " cent per bushel, will change the currents of trade I call the attention of the Committee to this statement so frankly admitted ; for behind it lies the great future of this city and Commonwealth. Grain Movement. The grain movement since 1868 will be seen from the fol- lowing exhibit by the New York Produce Exchange : Eeceived at Lake Keceived at New Transported by Ports. York. Caual. Bushels. Bushels. Bushels. 1868, 122,434,037 70,068,428 52,426,300 1869, 137,363,124 64,447,421 40,625,240 1870, 133,751,061 68,895,632 38,116,600 1871, 167,543,863 88,712,785 55,283,100 1872, 170,600,383 90,481,922 53,701,100 Total in five years, 731,692,468 382,606,188 240,152,340 Average per annum, . 146,338,494 76,521,237 48,030,468 Of the 76,521,000 bushels received at New York, about 50,000,000 per annum are exported. Time. In the report and memorial of the Detroit Commercial Convention, made to Congress at its last session, in regard to a ship-canal around Niagara, the speed of steamers on the lakes is set at eight miles per hour. With these data we have the following time by the several routes : Chicago to Buffalo, . 117 hours. " Buffalo to New York by Canal, . 288 405 hours Sixteen days and twenty-one hours. Chicago to Buffalo, .... 117 hours. " Buffalo to New York by rail, 50 167 hours Six days and twenty-three hours. Chicago to Oswego,—lake, . 131 hours, canal, . 8 " Oswego to Boston, 23 " 162 hours. Six days and eighteen hours. There is no obstruction on the lakes ; it is universal high- way. A propeller will accomplish more miles per hour than a heavily loaded train on a railroad, with the frequent necessary stoppages. A saving of nine days may be made over the canal route to New York. Loss on the Canal, The Detroit convention, in its memorial, has the following statement in regard to the heating of grain while on the canal, and the loss resulting from the same (p. 28) : "Vast damage is done every year to grain carried in bulk, especially to wheat and corn, and more especially the latter, if they become damp in the passage down the lakes, or as is often the case with corn, if in an immature state when shipped. This objection to the Erie Canal can never be overcome. * * * * There is an actual difference in prices between flour and wheat going by canal, of about 5 per cent., and oftentimes much more. * * * * The depreciation is a dead loss to the West of more than $2,000,000 per annum." The waters of the lake are very cold and no heating takes place, but the shallow water of the canal from June to October has a high temperature. There will be no loss from heating by the Oswego line. Montreal. Although the receipts of grain at Montreal have increased in four years from 8,000,000 to 17,000,000 bushels, the ship- ments from that port to England have not increased, as will be seen by the following statements from the Montreal Board of Trade :— Shipments to England. 1869, 6,340,153 bushels. 1870, ........ 6,422,936 1871, 6,307,083 " — 9 The reason is obvious.
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