THE TRANSPORTATION OF WHEAT 199 



In 1898 the farmers' organizations secured a compromise from 

 J. J. Hill of the Great Northern according to which that road 

 reduced freight rates on grain 14 per cent, and competition 

 forced the other roads to meet the reduction. The reduction 

 did not amount to quite 2 cents per bushel, but, contrary to ex- 

 pectations, it made no difference whatever in the price paid for 

 wheat to the farmer. It is believed that the reduction bene- 

 fited the consumer and shipper only. 1 From St. Louis to New 

 York, the rate was 32 cents per 100 pounds in 1882 and 20.5 

 cents in 1905. In 1890 it cost 17.4 cents per bushel to haul 

 wheat by rail from St. Louis to Chicago. This rate had fallen 

 to 11.6 cents in 1901. The rate from St. Louis to New Orleans 

 by river fell from 8.1 cents per bushel in 1877 to 4.2 cents in 

 1902. The cheapest transportation in the world is on the Great 

 Lakes, 0.75 of a mill per ton per mile. 



The cost of transporting a bushel of wheat to Europe from 

 the Atlantic ports of the United States was 5.5 cents in 1902, 

 from New Orleans 8 cents, and from San Francisco 16 to 20 

 cents. The rate per bushel from St. Louis to Liverpool by way 

 of New Orleans was 22.7 cents in 1882, and 10 cents in 1903. 

 By way of New York it was 23.7 cents in 1882, and 15.6 cents 

 in 1905. The rate per 100 pounds from Chicago to Liverpool 

 was 33.5 cents in 1896, and 19.2 cents in 1905. It is claimed 

 that competition of the Gulf ports has forced the railroads 

 carrying grain to Atlantic ports to charge a lower rate when 

 grain is destined for export than when it is destined for do- 

 mestic consumption, the only alternative being to cease ex- 

 porting. 



The railroad rate from Chicago to New York is only a part 

 of the through rate from Chicago to Liverpool, and in support 

 of the view that the rail and ocean rates are complementary, it 

 has been cited that in 1876 there was a railroad rate war, and 

 the ocean rates at once met the railroad rates. From April 

 6 to June 1 the rate from Chicago to New York fell from 

 24 cents to 12 cents, while the ocean rate rose from 10 cents to 

 21 cents during the same period. The ship owner gained and 

 the railroad lost, while the total cost to the shipper was ap- 

 proximately the same. 2 



1 Industrial Commission, 10:ccciv. 



2 Railroad Gazette, 35:722. 



