1G8 STATE BOARD OP AGRICULTURE. 



trausportatiou has made it an advantageous method to employ. For Phil- 

 adelphia and Baltimore this was of course the natural method of shipment. 



Mr. JSTimmo, the chief of the Burer.u of Statistics, publishes a table showing 

 the average yearly rates per bushel on wheat shipments from Chicago to New 

 York, by the three methods of tran.sportation mentioned above, during a 

 period of fifteen years, beginning with 1868. By lake and canal in that 

 year the freight charged per bushel was 25.3 cents; by lake and rail 

 29 cents; by all rail 42. G cents. In 1SS2 they had reached, through 

 successive reductions, by lake and canal 8.?, by lake and rail 10.9, by 

 all rail 14. G cents. Speaking rouglily, there was in that time, in all three, a 

 cutting down of charges by GG per cent, from the rate of 1868. This is cer- 

 tainly a remarkable example of the stimulating effects of free competition. 

 The cheapening of freights has been greater than was thought of in the early 

 grange agitation. Mr. Nimmo thinks "it is not probable that during this 

 entire period [of 15 years] the carrier has been able to realize much more than 

 a narrow margin of profit." It should be remembered that during this time 

 a large part of that consolidation of trunk lines that is so much talked of has 

 been accomplished, and this has greatly lessened the expense of managing the 

 railways, and so made possible reductions in freight rates. What counter- 

 balancing evils may be involved in this concentration of railway interests, it is 

 aside from the present purpose to enquire. There has also come about a vast 

 improvement in the general equipment of railways within the period alluded 

 to, and this, together with the enormous increase in the volume of traffic, has 

 contributed to the reduction of rates. 



Mr. Nimmo states that ''from 92 to 95 per cent, of the grain received at the 

 ports of Portland, Boston, New York, Philadelphia, and Baltimore during 

 the year 1882 was the product of the Western and Northwestern States;" 

 which shows very clearly the main source of supply for the larger part of our 

 exports and the importance of cheap freights. 



One fact is very significant as showing the preference of shippers in general 

 for railway transportation. From a recent publication of the Bureau of Statis- 

 tics it appears that while the tonnage of the New York State canals fell from 

 6^ million tons in 1868 to 5| millions in 1882, the tonnage of the New York 

 Central railroad system rose from 1,800,000 tons to 11,000,000. Of a total 

 movement of wheat to the seaboard in the latter year amounting to 186,000,- 

 000 bushels, 11-A- millions went by the Mississippi route, 3ih by lake and canal, 

 and 140 by rail. 



The ocean rates on grain from New York to Liverpool show no such 

 remarkable reductions as those just cited. In 18G6 wheat was carried for 9|- 

 cents per bushel; during the past year (1883) for about 9 cents; though 

 between those years down to 1881 the rate ruled above 10 cents, and in a 

 single year (1873) rose to over 21 cents. " The reductions in the cost of 

 transportation upon the ocean," to note again from Mr. Nimmo,* "have 

 been mainly the result of the increased size of steam vessels, the economies 

 effected in the use of coal, and the reductions which have been effected in 

 the proportional amount of space occupied by coal, boilers, and engines, 

 whereby the space available for passengers and freight has been correspond- 

 ingly increased." 



Within the period already referred to there were similar reductions in the 

 freight charges on the Mississippi boats. 



* Preliminary report on the Foreign Commerce of the U. S., Aug. G, 1S83, p. 1.3. 



