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I 
 
 ./^^%^^vd: 
 
 KEPORT 
 
 f^A 
 
 ' 'f/^j 
 
 To THH 
 
 HON. J. H. POPE 
 
 Acting A/inisler, DeiHirlmeut of Railways and Canali, 
 
 ON TtlE NKCKSSlrV ol' 
 
 DEEPENING THE WELLAND CANAL 
 
 ANn ON 
 
 TRANSPORTATION, COMMERCE AND CANAL TOLLS, 
 
 Al'KKOTlNn TUB 
 
 ST. LAWRENCE WATER-ROUTE TO THE SEA-BOARD 
 
 ROBERT 0. DOUULAS, 
 
 Annhtani Engineer, Hcf^irUmnt of Ruilw,,,,, „nd Canali. 
 
 OTTAWA. : 
 Piintod by MacLean, Rooek & Co., Wollin^'ton Street, 
 
 1884. 
 
IJ 
 
 ninHiiH 
 
 dAn/.'.) (VAAA.. 7 Mlrir 
 
 D] 
 
 MMi \ikUiy (I'/:. 
 
 ■m'k'i 
 
REPORT 
 
 TO TUB 
 
 HON. J. II. POPE 
 
 Acting Minister, Department of Raihuu/s and Canals, 
 
 ON THE NECKSSITV OF 
 
 DEEPENING THE WELLAND CANAL 
 
 AND ON 
 
 TRANSPORTATION, COMMERCE AND CANAL TOLLS, 
 
 AFFECTING THE 
 
 ST. LAWRENCE WATER-ROUTE TO THE SEA-BOARD 
 
 BY 
 
 KOBEET C. DOUGLAS, 
 
 Assistant Engineer, Department qf Railways and Canals. 
 
 OTTAWA : 
 
 Printed by MacLean, Roger & Co., Wellington Stiool., 
 
 1884. 
 
CONTENTS. 
 
 
 Letter of TiiANsjiixTAii , 
 
 Necessity of Deepeninu hue VVellano Canal 
 
 Stafemont of mimbor of vossols uimblo to pass through tho Wolhuid 
 
 Canal 
 
 Porcontago of American trade 
 
 Expenses and freight receipts, various sized vessels, between Ciiicago 
 
 and Buffalo 
 
 Number and aggregate tonnage of U.S. sailing vessels, above 300 tons 
 
 register, at dilforent dales 
 
 Number and tonnage of U.S. steam propellers over 400 tons 
 
 LlOIITERAOE 
 
 {Quantity of grain lightened by Welhind Railway, from 18C0-1883 
 
 Statement showing numborof vessels requiring to be lightened, entering 
 
 Port Colborno Harbour, tons of cargo lightened, etc 
 
 Statement of details of vessels requiring to be lightened at Port Colborno 
 
 Harbour 
 
 Discrimination against canal from insufficient depth of water .... 
 
 FoUUTEEN I'EET NAVIGATION, WITH ToLLS, PREFERABLE TO TWELVE FEET, 
 WITHOUT 
 
 Opinion of Oswego Board of Trade 
 
 0])inion of Mr. MeWhorter, Oswego 
 
 Cleveland, Ohio — Opinion of shippers and Hon. Geo. H. Ely 
 
 Statement ot Secretary of Produce Exchange, Toledo, Ohio , 
 
 Statement of Secretary of Djtroit Board of Trade 
 
 Statement of Socretary of Chicago Board of Trade 
 
 Opinions of shippers and others at Milwaukee 
 
 Statement of Walter L. Frost, Esq 
 
 Description and size of vessels required for lake navigation , 
 
 Importance of obtaining gioatest depth of water 
 
 Movement of Surplus Products from the West by Rail and Water. 
 
 Statement of shipments of wheat and corn, east from Chicago 
 
 Percentage of shipments by water and rail for two decades 
 
 Destination of shipments of wheat and corn by lake, from Chicago, 1883 
 
 Destination of shipments of wheat and corn by lake from Toledo, 1883. 
 
 Quantity of wheat and corn passed down the "Wolland and St. Lawrence 
 
 Canals from Lake Erie to Montreal, and from U.S. to U.S. Ports.,, 
 
 FAOB. 
 
 4 
 6 
 
 6 
 
 8 
 
 9 
 
 9 
 
 10 
 10 
 12 
 
 12 
 
 16 
 17 
 
 17 
 
 18 
 19 
 21 
 21 
 22 
 22 
 22 
 22 
 23 
 25 
 26 
 27 
 28 
 28 
 29 
 
 30 
 
iv 
 
 FAQE. 
 
 Statoniont of direct exportation of whout und corn, etc., through biiiH of 
 
 lading from Chicago, 18G9-1833 31 
 
 Exports of wheat and corn from five Atlantic ports during the soaaon 
 
 of navigation 32 
 
 CoMPETiNO Routes to the Wei-land Canal 32 
 
 Tons of property moved on the Wolland and Erie Canals, from 18G4 to 
 
 1883 33 
 
 Freight rates on routes competing with the Welland Canal 34 
 
 Competition op Hailways with Erie Canal 35 
 
 Statement of movement of property on N.Y. Central R.R. and Erie 
 
 Canal, 18G4 to 1883 3G 
 
 Shipments by rail and canal of wheat and corn received by lake at 
 
 Buffalo 37 
 
 Transportation op Grain, all-water to the Sea board 38 
 
 Advantages possessed by Buffalo 38 
 
 Statement of shipments of heavy articles west from Buffalo 3'J 
 
 Statement of number of vessels entered and cleared at Montreal a^d 
 
 Buffalo, 1874 to 1883 40 
 
 Statement of number of vessels in foreign trade entered and cleared at 
 
 five Atlantic ports and foreign and coastwise at Buffalo 41 
 
 Freiuut Rates and cost op Transport (all-water) , 41 
 
 Freight and tolls on a bushel of wheat from Chicago to Buffalo, and 
 
 Chicago to Montreal, 1864 to 1883 42 
 
 Average freight rates for two dccaJos 43 
 
 Demurrage at Kingston 44 
 
 Complaints of forwarders and merchants 4G 
 
 Differential Freight Rates uetween Competinu Ports 48 
 
 Increase of exports at all rail ports 50 
 
 Terminal Facilities, Atlantic Ports 51 
 
 Expenses on grain shipped from New York, Philadelj)hia and Baltimore 52 
 
 Storage and elevator capacity, Atlantic ports 52 
 
 Poet Charges 53 
 
 Statement of charges to a steamer at Atlantic ports 53 
 
 Steam freight rates on grain to Liverpool 57 
 
 Advantages possessed by New York 58 
 
 Tonnage entered at Now York and Montreal, 1864 to 1883 5i) 
 
 Percentage of grain receipts and exports at five competing ports 5U 
 
 Speculative Svstem of Dealing in Grain 61 
 
 Sales on call and margin, N.Y. Produce Exchange, from 1876 63 
 
 Railways VERSUS Waterways 68 
 
 Length and cost of canals of Franco, England, the United States and 
 
 Canada 71 
 
 Tr 
 
 Til 
 
 Till 
 
 
 Co^ 
 
 ' 
 

 PAOE. 
 
 31 
 
 32 
 32 
 
 33 
 84 
 35 
 
 36 
 
 37 
 38 
 38 
 39 
 
 40 
 
 41 
 41 
 
 42 
 43 
 44 
 46 
 48 
 50 
 51 
 52 
 52 
 53 
 53 
 57 
 58 
 59 
 69 
 61 
 63 
 68 
 
 PAGE. 
 
 Number and tonmigo of freight propollorH, northern lakes 73 
 
 Tonnage, vahio, earnings, etc., of freight Hteamors on northern laken, 
 
 1880 74 
 
 Statement concerning the propellers of the Erie and Western Trans- 
 portation Company's Buffalo and Chicago lino for 1881 74 
 
 Value of the enrolled tonnage of the U.S. lake marine and Province of 
 
 Ontario 75 
 
 TUANSl'OUTATION 01' SURPLUS PUOUUCTS 01-' TUB NoRTII WesT 76 
 
 Trade with the Maritime Provinces 79 
 
 Extract from the report, " Transportation routes to the Sea board," made 
 
 to U.S. Senate , 81 
 
 Toi-Ls ON THE St. Lawrence Eoute 83 
 
 Free St. Lawrence canals, 18G0-62 84 
 
 Causes of increased movement of grain by St. Lawrence route, 1860-62 88 
 
 Free canal policy, Erie Canal 91 
 
 Extract from report of Finance Minister on policy of 1860, 92 
 
 Extract from report of Commissioner of Public Works on policy ol 1860 94 
 
 The Erie Canal and its Toll Policy 96 
 
 Statement of gross revenue and deductions on the Erie, WellandandSt. 
 
 Lawrence Canals from the date of completion 98 
 
 The Toll Sheet upon the St. Lawrence Route 99 
 
 Tolls on the Dolowaro and Earitan Canal 101 
 
 Westbound freight free on the St. Lawrence route 101 
 
 Toll per ton miles 102 
 
 Eovenuo collected if tolls on west-bound freight were abolished 104 
 
 CoNCLUJ)iNa Ebmarks 105 
 
 Causes of decreased movement of grain by St. Lawrence route, 188:1..,. 106 
 
 St. Lawrence route not affected by toll.s, 1884 108 
 
 Benefits derived from the export of American grain HO 
 
 Competition of other grain-producing countries with America Ill 
 
 Effect of low rail rates on shipments by water 112 
 
 Freight rates of carriage of grain, Europe and America 113 
 
 71 
 
Til 
 
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Ottawa, .Tuly 2Ifif, 1884. 
 
 TiiR IIoxoiuniiE J. II. Pope, 
 
 Acting Ministrr, Department of liailua'js and Cannh. 
 
 Sill, — I have the honor to su})mit for your consideration a loport, the 
 result of investigations made under your instructions. This report embodies 
 that submitted in February last, v^'ith additional statistics and statements, 
 more serviceable in print, inserted. The renewed agitation for remission of 
 tolls, and the decreased movement of cereals from the "West to the Sea-board, 
 for the first half of this year, have also been alluded to. 
 
 It was deemed unnecessary to quote, at each table, the authority from 
 which the statistics given have been compiled. That compilation has been 
 made from the reports of various trade and mercantile bodies, and the 
 reports on the " Internal Commerce of the United States," by J . Nimmo, jun., 
 Esfj , Chief of the Bureau of Statistics, Washington, D.C. 
 
 To the following gentlemen, as well as others who may not be especially 
 mentioned, the Department is indebted for reports furnished and other 
 valuable information : — 
 
 To W. E Fletcher, Esq., Superintendent, New YorK Produce Exchange ; 
 W. R Wheatly, Esq., Secretary, Baltimore Corn and Flour Exchange; D. 
 A. Cooney, Esq., Canal Statistician, Albany, N.Y. ; J. L. McWhorter, Esq , 
 Chairman Committee on Commerce, Oswego Board of Trade ; W. J. Morgan, 
 Esq , Buflalo, N Y ; D.B.Smith, Esq., Secretary Toledo Produce Exchange; 
 J. Mclver, Esq , Secretary Detroit Board of Trade ; Charles Randolph, Esq., 
 Secretary Chicago Board of Trade, and "W. J. Langson, Esq., Secretary 
 Chamber of Commerce, Milwaukee. 
 
 I have the honor to be. Sir, 
 
 Your obedient servant, 
 
 Robert C. Douglas, 
 Assist onl Engineer, deportment of Railways and Canals. 
 
I 
 
Tlllil UIKIRNT NKCI^^SSITY OF DEEPENING THE WELLAND CANAL, 
 
 One of tlio princii)al reasons tho St. Lawronco route, to the sea board, does not 
 maintain its former proportion ot tho rapidly ineroasing Hhijimenta of cereals from 
 western lake ports, is tho large class of vossols plying upon the upper lakes which 
 are unable, on account of tho limited doptli of water in tho Welland Canal, to descend 
 to Lake Ontario. This disadvantage is now seriously att'octing tho route, and has 
 boon operating against it for tho last twenty fivo years, during which period each 
 successive year has seen tho size and cairying capacity of the upper lake craft aug- 
 mented. Small vessels have boon driven out of tho transportation of coroals, ore, 
 lumber, &c. ; they have boon forced to accept rates of freight in competition 
 with tho larger vessels which would barely pay running and living expenses and 
 leave no balance for interest on capital, depreciation and repairs. To this causo is 
 duo the decadenco of tho Lake Ontario marine, both Canadian and American, it 
 depending on tho transportation of property from Lakes Michigan and Iluron, 
 unable, on account of tho Wolland Canal, to increase in siao and carrying capacity, 
 and compelled to compote with the lower rates of freight, and cost of transportation 
 otroctod by the larger vessel upon rival routes. 
 
 Although, during the last twenty-five years, the large craft has exercised a most 
 powerful discrimination against.tho St. L:\wrence route, it maybe asserted, its oflecls 
 have boon continuously felt for the last half cent .y, and date from tho completion 
 of t'lo original Wolland Canal. 
 
 Dji'ing tho first enlargement of tho Canal, in 1844, it was estimated thoro wore 
 navigating tho upper lakes 224 vessels, with an aggiogaio tonnage of 23,868 tons. 
 Of this number, 114 vessels, with an aggregate tonnage of 10,200 tons, wore unable 
 to pass through tho canal. Tho first onlargomont was no sooner completed than it 
 wjvs found necessary to increase tho depth of water upon t'ao raitro sills of tho locks 
 above that originally contemplated. The vessels continuod to increase in size until, 
 in 1860, there wore 341, with an aggregate tonnage of Mr- 918 tons, which wore 
 cither of too largo dimensions, or drew too groat a depth of water, to pass through 
 tho canal as enlarged. In 1870 tho number had increased to 3'~ ', with an aggregate 
 tonn.age of 194,685 tons; in 1880, to 460, with an aggregate tonnage of 287,342 tons ; 
 and in 1883, to 557, with an aggregate tonnage of 302,808 tons. These computations, 
 founded upon tho registered tonnage of vessels, must, to a certain degree, bo approxi- 
 mate. 
 
 Judging from lake vessels of a seaworthy type, sailing vessels of over 300 tons 
 register, and propellers over 400 tons register, are assumed to bo unable, fully loiulod, 
 to navigate tho canal as first enlarged. Vessels of greater tonnage and carrying 
 capacity wore built, known as " Canallors," these under tho necosnity of transporting 
 
Iho largoat possible cargo, wore of full model, lub-s and unsoaworthy. Thoy, when 
 driven fr Mm the St. Lawrence route, on account of low freight, and being unable to 
 pay expenses, went to the rougher waters of Georgian I3ay and Lake Superior, where 
 business had been developed by railway construction, in which the largo American 
 carrier could not compote, the unsoaworthy character of their build is shown by the 
 disastrous wrecks and loss of life, which have already occurred. 
 
 Tabulating the previous figures, the following statement shsws the number, and 
 aggregate registered tonnage, of vessels which wore, at different dates, unable to pass 
 through the canal, also the marked increase in average registered tonnage of vessels 
 above 300 tons. 
 
 Statement showing Number of Vessels and Aggregate Tonnage unable to jxiss the first 
 
 enlargement of the Wetland Canal. 
 
 Year. 
 
 Nmnlier. 
 
 Aggregate 
 
 RegistertJ 
 
 Tonnage. 
 
 Average 
 Tonnage. 
 
 1844 
 
 1H(50 
 
 2 
 
 341 
 384 
 400 
 557 
 
 719 
 143,918 
 194,685 
 287,342 
 392,808 
 
 3(50 
 422 
 
 1870 
 
 507 
 
 1880 
 
 1883 
 
 625 
 705 
 
 
 
 The partial completion of the second enlargement of the canal has admitted to 
 the carrying trade between the Upper Lakes and Lake Ontario a number of sailing 
 vessels and propellers, too large to navigate t .e old canal and too small to com])eto 
 with the larger carriers. Of this class, 110 (trips to vessels) in 1882, and 237 in 
 1883, passed through the canal. 
 
 In 1859, the St. Lawrence i-outo not maintaining its share of the western trade, 
 and of tho grain trade in particular, inquiries were instituted, by the Commissioner 
 of Public Works, into the cause of its diversion to rival routes. In his report of that 
 year ho states, that of the number of vessels engaged in the grain trade of the lakes, 
 one-fourth to one-third cannot pass through the VVolland Canal, while nearly throe- 
 fourths of the propellers on the upper lakes, the class of vessels chiefly used in the 
 grain trade, are too large to pass down to Lake Ontario, " and if it should be conclu- 
 sively shown that the predominating cause of the diversion of trade is the fact that the 
 size of the locks is not adapted to the class of vessels now in use upon the upper 
 lakes, the enlargement of the Welland Canal would seem now to bo as much a matter 
 of necessity as was its construction in the first instance. Experience has proved, and 
 it is now pretty well understood, that the cheapest, and most expeditious moans of 
 carrying freight, is by the large class of propellers from 600 to 1,000 tons burthen, a 
 class entirely too large to pass the canal, and which is increasing in number every 
 year, and is exclusively engaged in directing tlie course of trade on the upper lakes 
 to BufValo and Dunkirk to supply tho l']rie Canal, the New York Central and Erie 
 Eailways. It becomes a question of serious and immediate inquiry, whether tho 
 
 i 
 
 { 
 
Iioy, when 
 unablo to 
 
 ior, whoro 
 American 
 
 wn by the 
 
 imbor, and 
 ble to pasH 
 3 of vesselrt 
 
 iss the first 
 
 AveraRft 
 Tonnage. 
 
 .360 
 422 
 507 
 625 
 705 
 
 idnilttod to 
 
 Br of sailing 
 
 to compote 
 
 and 237 in 
 
 item trade, 
 
 mmissioner 
 port of that 
 the lakes, 
 
 ally threo- 
 scd in the 
 bo conclu- 
 
 act that the 
 the upper 
 h a matter 
 
 proved, and 
 
 means of 
 
 burthen, a 
 
 nber every 
 ippor lakes 
 1 and Erie 
 holhor the 
 
 IB 
 
 advantage which the WoUand Cunul po,s8esS03 by its commanding geographical 
 position between the lakes, is not in a groat extent neutralizod by its want of 
 capacity." This quotation is given as history repeats itself, the enlarged 
 Wolland Canal is now in nearly a similar position to the canal in 1860, when these 
 words, equally applicable to the present circumstances, were written. 
 
 The dimensions of the locks, and depth of water upon the mitre sills, at the 
 second enlargement of the Welland Canal were recommended by a Canal Commission 
 in Pebruarj', 1871. According to the annual list of merchant vessels ot the United 
 States for 1870, there were at the date ot this decision, eighty vessels with an aggre- 
 gate tonnage of J7,2t32 tons, which would draw loaded, over twelve feet of water, 
 depth i-ecommondcd ; ton years previous, in 1860, there were twelve ve.ssols with an 
 an aggregate tonnage of 10,134 tons, in the same category. 
 
 The following statement shows at different dates the number, and aggregate 
 registered tonnage of, vessels drawing too much water for the scale of navigation 
 decided upon by the Cai:al Commission for the Welland Canal, and in practical 
 operation for the last two years : 
 
 Statement of Vessels unable io pass through the present Welland Canal at different dates. 
 
 Year. 
 
 Nnmlier 
 
 of 
 Vessels. 
 
 Aggregate 
 
 Regiatereil 
 
 Tonnage. 
 
 Average 
 Tonnage. 
 
 1800 
 
 12 
 
 80 
 
 201 
 
 255 
 
 10,1.34 
 
 67,262 
 
 108,351 
 
 209,900 
 
 845 
 
 1870 
 
 840 
 
 1880 
 
 897 
 
 1883 
 
 1,058 
 
 
 It is evident, that if in the past insufficient depth of water and small locks, dis- 
 criminated against, and interfered with, the .success of the St. Lawrence route, this 
 cause is still existing, since the second enlargement confined chiefly to the depth of 
 water rather than to dimensions of locks. This fact is shown by the following table 
 to be as serious a disadvantage to the canal, now enlarged, as at any time in the past : 
 
 Stntenmit of Vessels unable to pass Ihroujh the Wcllnnl Canal in liH, 1870 ani 188;?. 
 
 3 Original canal at the <late of the first enlargement, 1844. Dejitli ol 
 
 4 water, 7 I'uet 
 
 f First enlargement at coramencenient of scconil enlargement, 1870. 
 
 i Depth uf water, 10 tuet 
 
 i 
 
 * Completion of second enlargement, 1883. Depth of water, 12 feet.... 
 - ^^ 
 
 Number 
 
 of Vessels unable 
 
 to pass. 
 
 114 
 
 384 
 256 
 
 Registered Ton- 
 nage. 
 
 16,200 
 
 194,688 
 209,966 
 
8 
 
 There arc, therefore, in 1883, some (r5,278 more tons of shipping unable to pass 
 through the Welland Canal, with 12 feet water, than in 1870, to pass through with 
 10 feet; besides, the tonnage has been greatly increased since the publication of the 
 last annual List of th.i United States Merchant Marine. 
 
 The causes which led to this remarkable increase in size and carrying capacity 
 of vessels wore : the improvement and deepening of harbors, the excavation of a 
 channel through the St. Clair Flats, and the deepening of what is known as the Lime- 
 kiln Crossing, Detroit Kivor, by the United States Government. There was also 
 the great advancement in mechanical and marine engineering, whereby with im- 
 proved equipments and machinery, the larger vessel can bo handled with greater 
 facility and with Tiuch less cost, in proportion to the cargo transported, than its 
 smaller predecessor. 
 
 The cost of transportation having thus been reduced, freight rates have corre- 
 spondingly declined, the average freight u])on a bushel of wheat from Chicago to 
 
 Buffalo was in the following years : 
 
 Gents. 
 
 1861 11-53 
 
 1871 7-62 
 
 1881 3 40 
 
 1882 2-57 
 
 1883 340 
 
 The average freight for the same for the decade ending 1873 was 8 '50 cents, and 
 for that ending 1883 about 3-70 cents. 
 
 The effect of the increased carrying capacity of vessels causing the diversion of 
 
 the Lake Ontario trade to Buffalo was more particularly felt by Oswego and other 
 
 soulh shore ports. The purely American trade of the canal, was of the total 
 
 traffic, in — 
 
 Per Cent. 
 
 1850 51-3 
 
 1860 620 
 
 1870 55-5 
 
 1880 27-7 
 
 1881 24 6 
 
 1882 297 
 
 1883 39 2 
 
 In addition to the large vessels the reduced rates of transportation by rail, sub- 
 sequent to 1870, rendered it cheaper for the consumer to obtain his supplies all rail, 
 from the west, than by the small vessels via the Welland Canal ; those two causes have 
 reduced a business which, for a groat number of years, was one-half the total to one- 
 quarter in 1881 . The increase of 1883 was no doubt due in some measure to the 
 enlargement of the canal. 
 
 The following approximate statement shows the inability of the small vessels to 
 compete with the larger, and the greater profits consequent upon increased carrying 
 capacity. 
 
 I 
 
able to pass 
 irough with 
 ition of tho 
 
 ng capacity 
 ivation of a 
 18 tlie Lime- 
 was also 
 J with im- 
 'ith greater 
 od, than its 
 
 have corre- 
 Chicago to 
 
 Oenta. 
 
 11-53 
 
 7-62 
 
 3 40 
 
 2-5Y 
 
 3-40 
 
 »G cents, and 
 
 diversion of 
 JO and other 
 of the total 
 
 Per Cent. 
 
 51-3 
 
 620 
 
 55-5 
 
 2'7-t 
 
 24 6 
 
 29'7 
 
 39-2 
 
 by rail, sub- 
 plies all rail, 
 ) causes have 
 total to one- 
 asure to the 
 
 all vessels to 
 isod carrying 
 
 I 
 
 i 
 
 Statement of Expenses (Insurance Interest Wear und Tear not Included) Receipts for 
 Freujht of various sized Vessels loaded each way, plying between Chicago and Buffalo. 
 
 Freitcht... 
 Rxpuusoa 
 
 Balance.., 
 
 Sailing Veagtl, 
 
 Capacity 
 21,000 bushols. 
 
 900 00 
 707 00 
 
 193 00 
 
 Propeller, 
 
 Capacity 
 
 40,000 bushels. 
 
 1,600 00 
 1,167 00 
 
 433 00 
 
 Propeller, 
 
 Capacity 
 
 90,000 biishola, 
 
 3,560 00 
 1,730 00 
 
 1,830 00 
 
 Propeller nd 
 Cons*. 
 Capac 
 126,0OU buL 
 
 6,140 00 
 2,920 00 
 
 2,220 00 
 
 To illustrate still further : take throe propellers of 1,000 tons, 1,500 tons and 
 2,000 tons carrying capacity, and making an approximate calculation, including 
 expenses, insurance and depreciation. If the low rates of freight now prevailing 
 between Chicago and Buffalo are taken, averaging about 81.50 per ton per round 
 trip, wo would have the following estimate : 
 
 Carrying Capacity. 
 
 Propeller, 1,000 tona 
 do 1,500 do 
 do 2,000 do , 
 
 Expensea — 
 
 Insurance and 
 
 Depreciation. 
 
 1,600 
 2,000 
 2,400 
 
 Freight, 
 round trip. 
 
 1,500 
 2,250 
 3,000 
 
 ProSt and Loss. 
 
 100 loss. 
 250 profit. 
 600 do 
 
 Those illustrative figures, tho first about tho present Welland Canal capacity, 
 show a loss through insufficient depth of water, and ihe groat disadvantage any water 
 route must bo under where tho largo vessel is unable to ply. 
 
 The following statements show the increase in carrying capacity of vessels since 
 1860, which has boon commensurate with the decrease in business through the Wel- 
 land Canal. 
 
 Statement of the Number and Aggregate Tonnage of United States Sailing Vessels above 
 
 300 tons register. 
 
 
 300 to 550 
 Tona. 
 
 550 to 800 
 Tons. 
 
 800 to 1,200 
 Tona. 
 
 1,200 to 1,600 
 Tons. 
 
 1,600 to 1,800 
 Tona. 
 
 Year. 
 
 No. 
 
 Total 
 Tonnage. 
 
 No. 
 
 3 
 30 
 81 
 91 
 
 Total 
 Tonnage. 
 
 No. 
 
 1 
 
 2 
 21 
 21 
 
 Total 
 Tonnage. 
 
 No. 
 
 Total 
 Tonnage. 
 
 No. 
 
 Total 
 Tonnage. 
 
 I860... 
 
 271 
 222 
 214 
 219 
 
 99,913 
 
 80,948 
 80,372 
 81,163 
 
 1,951 
 17,668 
 53,857 
 59,966 
 
 969 
 
 1,833 
 
 18,627 
 
 19,059 
 
 
 
 1870... 
 
 
 
 
 
 1880... 
 
 1 
 7 
 
 1,444 
 9,839 
 
 "2" 
 
 
 1883... 
 
 3,367 
 
10 
 
 Statement of the Numbir and A^jgregale Tonnage of United States Proj)ellers above 
 
 400 ions. 
 
 
 
 400 to 800. 
 
 800 to 1,200. 
 
 1,200 to 1,600. 
 
 1,600 to 2,220. 
 
 I860 .. 
 
 
 
 58 
 82 
 45 
 83 
 
 33,871 
 46,475 
 26,619 
 48,679 
 
 7 
 
 4 4 
 
 58 
 67 
 
 5,991 
 42,125 
 48,249 
 66,612 
 
 1 
 4 
 
 30 
 41 
 
 1,223 
 
 5,0:!U 
 
 40,371 
 
 54,014 
 
 
 
 1870.,. 
 
 
 
 
 
 
 1880... 
 
 
 10 
 26 
 
 17,803 
 
 1883... 
 
 
 
 46,479 
 
 
 
 
 
 The incroaso in the capacity of atoam tonnago ia grcatci" than mailing vosscls. It 
 would appear that stoam, as upon the ocean, would soon monopolize the carrying 
 trade of the lakoe. Transportation by steam propellers towing one or several bargo> 
 or schoonei*, consorts, is rapidly increasing. The acme of cheap transportation may 
 be said to have been reached in a tow whicli recently came into BuflFalo— a propeller 
 with throe consorts, with a cargo of corn and taking an outward cargo of coul. The 
 following statement shows the details of this tow: 
 
 Names of Voasels. 
 
 Inward Cargo. 
 
 Outward Cargo. 
 
 Propeller Edwarda 
 
 Suhoouer Golden Ai'o 
 
 55,000 bush corn. 
 93,000 do 
 67,000 do 
 60,000 do 
 
 265,000 do 
 
 1,540 tons coal. 
 2,500 do 
 
 do C Foster 
 
 1,850 do 
 
 do M. W. Page 
 
 Total 
 
 1,350 do 
 7,240 do 
 
 
 "The steamer 'William Edwards' and her consorts 'Golden Age,' 'Charles 
 Foster' and 'M. W. Pago,' loft port at 6 p.m. yesterday, bound for Chicago, carry- 
 ing in all 7,300 tons of coal. As the tow got straightened into line outside the 
 breakwater, with colors flying from every spar, the sight was a fine and an unusual 
 one." None of those vessels could pass the Wellaiid Canal with the present depth of 
 water, and until tho same sight may bo soon upon tho St. Lawrence there will be 
 little hoj)e of diverting to this route the trade naturally tributary to it. 
 
 LIOIITERAOE. 
 
 Tho harbour of Port Colborno having a sutHciont depth of water for vessels of a 
 greater draught than will pass through the canal, necessitates lightening a portion of 
 tho cargo, it being more economical to lighten the largo vessel through the canal 
 than to load, only, to the canal depth, or employ a smaller vessel. This lightening 
 has been dono for years previous to the present enlargement by a railway constructed 
 between tho lake outlets of tho canal, at which places elevators have boon constructed. 
 A portion of a grain cargo is elevated at Port Colborno, sjjoutod into cars, trans- 
 ported over tho railway to Port Dulhousie, then elevated and spouted into tho vessel 
 after passing through tho canal. Tho cost of lightening is obviously a tax upon tho 
 
I 
 
 17,803 
 46,479 
 
 ,ons coal, 
 do 
 do 
 do 
 
 do 
 
 i 
 
 I 
 
 11 
 
 total cargo shipped utwoHtorn portn. This railway, its promoter, the lute Hon. W. II. 
 Morritt, ban stated, was constructed to regain ?i portion of the trade diverted by the 
 Now York Central Railway. It was expected to portage, so to speak, the cargoes of 
 large vessels unable to pass through the canal, and to lighten others drawing too 
 much water. 
 
 The gentleman before mentioned, one of the principal advocates of canals, pro- 
 posed to the Commissioner of Public Works, in 18G0, thai the Wolland Ilailway and 
 Canal should be placed under one management. IIo stated there was a decided 
 superiority of railways with descending grades over canals in connecting natural 
 waters; that the Commii-sioner had decided wisely not to increase the^public debt by 
 the enlargement of the present or construction of a new canal, until the relative 
 expenditure of capital and cost of transit is fairly tested between canals and railways. 
 Propositions were made lately to work the road in conjunction with the canal, or 
 that the Government should purchase it. Those propositions were not entertained 
 It is now under the control of the Grand Trunk llailway Company, by whom it is 
 ojjorated. 
 
 Lightening must be an essential feature of transportation by this route for some 
 time. Any exorbitant charge by the railway would be of serious injury to the route 
 at j)resent, when large vessels are commencing to navigate the canal, and other 
 moans of lightening have not boon provided. It was feared by the officers of the 
 Ogdonsburg and Jiuke Cham])lain Kailway, which corporation has built several pro- 
 pel lors, especially constructed for navigating this canal, that it would be in the 
 power of the Grand Trunk llailway Company to exact charges for lightening, which 
 might be burdensome. As will bo seen frcmi the letter of the President of the former 
 railway, ho wishes a special Governraont officer appointed to prevent favouritism or 
 discrimination. There is little danger of excessive charges, tho canal not requiring 
 a railway to successfully operate it. A floating elevator at cither end of the canal and 
 barges would do tho work at loss expense than a railway. It would be economical 
 for any company doing an assured largo business through tho canal to do its own 
 lightening. 
 
 This business done by tho railway in the past is as follows : in tho report of tho 
 Commissioner of Public Works for 1859, it is stated that 14,'713 tons, comprising the 
 cargoes of thirty-two vessels, wore carried by the railway. Of theso, ton were unable 
 to pjiss through tho canal. The following statement of T. II. Morritt, Esq., gives 
 tho business in grain since I860 : 
 
12 
 
 Statement of the Quantity of Grain Lightened by the Wetland Canal Railway. 
 
 Year. 
 
 I860.. 
 1861.. 
 1862.. 
 1863.. 
 1864., 
 1865., 
 1866., 
 1867., 
 1868. 
 1869., 
 1870., 
 1871., 
 
 Nnmber 
 of Vessels. 
 
 172 
 268 
 
 Niiml)er 
 of Busliols. 
 
 69,517 
 181,601 
 503,636 
 702,270 
 342,372 
 561,985 
 565,802 
 669,835 
 499,990 
 684,257 
 717,416 
 1,048,983 
 
 Year. 
 
 1872.. 
 1873.. 
 1874.. 
 1875.. 
 1876., 
 1877.. 
 1878.. 
 1879,. 
 1880.. 
 1881.. 
 1882.. 
 1883.. 
 
 Number 
 of Vessels. 
 
 167 
 177 
 230 
 156 
 
 83 
 133 
 
 94 
 
 181 
 
 206 
 
 134 
 
 8 
 
 64 
 
 NumlKir 
 of Bueliols. 
 
 568,958 
 704,827 
 788,082 
 506,049 
 286,968 
 528,606 
 361,071 
 771,227 
 769,828 
 496,112 
 87,871 
 622,721 
 
 The foregoing table shows the falling off in business, at the opening of the en- 
 largement, in 1882, whereby all small vessels heretofore requiring lightening, passed 
 through without that necessity. The year 1883 marks the new era upon the canal of 
 the largo vessel, the lightening of 64, embraces aa large a quantity as 200 vessels, 
 previously. This discrimination against, or tax upon the St. Lawrence route, will 
 be felt until deeper water is afforded, as there are no vessels oii the lake doing a profit- 
 able business, which do not draw more than 12 feet of water, loaded. 
 
 The enlarged Welland Canal was opened for navigatio n in 1882. Until the 
 completion of the new aqueduct, the draught of water of vessels navigating the 
 canal is dependent upon the depth of water in the present aqueduct. Except during 
 north-oast and easterly winds, when the level of the lake at Port Colborno was 
 depressed, and consequently tb level of the water at the aqueduct, the sluice gates 
 at the entrance of the canal nr being in position, there has been during the last two 
 seasons of navigation fully 12 feet of water. With large steamers, if there is not some 
 mechanical appliance adapted to warp them in and out of the locks, 12 feet 
 water on the mitre sills is practically 11 feet 3 inches, or at most 11 feet 
 6 inches navigation. Propellers using a screw some 10 feet in diameter, when 
 steaming through a narrow space, or in and out of locks, the tendency is to force the 
 water forward, the revolution of this large screw creates a suction, drawing the water 
 backward, the vessel settles down, particularly the stern, which strikes upon the 
 mitre sills, and, as has been frequently done, cuts the cables closing the gates. To 
 prevent this it is necessary for steamers of the full capacity of the lock, that there 
 should be some 6 or 9 inches of additional depth of water, or approximately, to 
 obtain a free 12 feet navigation, requires 12 feet 6 inches of water on the mitre sills. 
 With these facts in view during the last two seasons, there has been, although imper- 
 fect on account of the aqueduct, a 12 feet navigation through the Welland Canal 
 
 On being requested to make this investigation, the Superintendent of the Wel- 
 land Canal was instructed to prepare a statement, showing in detail, the number of 
 
 
 vent 
 ton: 
 l)aH( 
 uisl 
 don 
 wat 
 
 war 
 
 of B 
 
 SUC( 
 
 wa^ 
 Pr< 
 torn 
 mac 
 mo I 
 cap! 
 L. 1 
 ad a 
 
 Sta\ 
 
 J. c 
 
 liusi 
 
 Ule 
 H. ] 
 
n 
 
 'ailway. 
 
 Number 
 of Bushela. 
 
 668,958 
 704,827 
 788,082 
 606,049 
 286,963 
 528,606 
 361,071 
 771,227 
 769,828 
 496,112 
 87,871 
 622,721 
 
 I of tho en- 
 ling, passed 
 tho canal of 
 200 voesols, 
 ) route, will 
 ing a profit- 
 
 Until tho 
 gating tho 
 Jopt during 
 )lborno was 
 uico gates 
 ho last two 
 is not some 
 ks, 12 feet 
 it 11 feet 
 etor, when 
 .0 force tho 
 g tho water 
 s upon tho 
 gates. To 
 that there 
 imately, to 
 mitre sills. 
 Jigh imper- 
 and Canal 
 
 tho Wol- 
 lumbor of 
 
 13 
 
 voBSols, their rogiHtorod tonnage, dimensions, draught of water loaded, number of 
 tons lightened, and other information concerning vessels requiring to bo lightened to 
 pass through tho canal since its opening, in 1882. Similar statistics aro to bo fur- 
 nished each month of tho present season of navigation, which will bo valuable to 
 demonstrate at any time tho great injury to this route from insufficient depth of 
 water in tho canal. 
 
 Tho following statements have boon compiled from tho ubovo information for- 
 warded to this office. 
 
 Tho business in largo vessels, in 1882, was merely oxporiraontal. Two propoliors, 
 of some 1,200 tons cai'rying capacity, made four trips through tho canal. Tho partial 
 success of tho route being demonstrated, the Ogdeneburg and Lake Champlain Rail- 
 way had constructed a propeller especially for navigating the canal, named after tho 
 President of tho Company, the " Walter L. Frost." This propeller has a registered 
 tonnage of 1,203 tons and a carrying capacity of some 1,600 tons. Her first trip was 
 made in July, 1883, and eho may bo called tho pioneer steamer of tho route. Two 
 more steamers have boon added by this Company, of slightly greater carrying 
 capacity, built after one season's experience of navigating the canal with the " W. 
 L. Frost." They may be said to bo the most excellent models of marine architecture 
 adapted for navigating the canal at present on the lakes. 
 
 Statement shewing the JNinnber of Vessels, total Cargoes entering Port Colbornc Ilarhovr, 
 total Quantity Lightened, total Tons transported through Canal, total Cost for 
 Lightening, and total Demvrrage for the Seasons of Navigation, 1882, 1883, and in 
 May, 1884. 
 
 Kamo of Vessel. 
 
 No. 
 
 of 
 
 Trips. 
 
 ToUil 
 Cargoes En- 
 tering Port 
 GollK>rno. 
 
 Totiil Tons 
 
 ofOargo 
 
 Lighteued. 
 
 Total Tons 
 
 of Curgo 
 
 through 
 
 Oaual. 
 
 Total Cost 
 oflighteiiing 
 
 $ cts. 
 
 705 26 
 296 35 
 
 1,001 61 
 
 Total 
 Demurrage. 
 
 Propellers, 1882. 
 J. C. Gault 
 
 3 
 1 
 
 3,679 
 1,500 
 
 1,129 
 608 
 
 1,637 
 
 604 
 
 186 
 
 2,550 
 992 
 
 hours, min. 
 Not stated. 
 
 Business 
 
 do 
 
 
 
 Total steam 
 
 4 
 
 5,179 
 
 3,642 
 
 
 
 
 Sailing Vessels, 1882. 
 Olenora 
 
 2 
 
 1 
 
 2,924 
 1,020 
 
 2,420 
 834 
 
 3,264 
 
 293 73 
 123 80 
 
 
 H. Bissell 
 
 
 
 
 Total sail 
 
 3 
 
 3,944 
 
 690 
 
 417 5i 
 
 
14 
 
 Statement showing ilie Number of Vessels, total Cargoes entering Port Colborne Harbour, 
 total Quantity Lightened, etc., etc., etc. — Coatinuod. 
 
 Name ut' Vessel. 
 
 I'ropellerf, 1883. 
 
 Northerner 
 
 U. C. Wliitnpy 
 
 J. R. Whiting 
 
 Jus. Davidsun 
 
 D. M. Wilson 
 
 Jim Shcrill' 
 
 Oauida 
 
 Mylea 
 
 W. L. Frost 
 
 lioanoke 
 
 Tucuuiseh 
 
 Total Btenm.., 
 
 Sailing Vessel), 1883 
 
 lliggie ■ 
 
 Halstcad 
 
 Homer < 
 
 I'arnua 
 
 Way uu 
 
 Manitowoc 
 
 AnKiis Smith 
 
 C. u. Jouua 
 
 Total sail 
 
 Summary, 1882. 
 
 Ktoam vessels 
 
 Sailing vessels.. 
 
 Total 
 
 Summary, 1883. 
 
 Steam vcssela 
 
 Sailing vessels 
 
 Total 
 
 Propellers, Month of May, 
 1884. 
 
 W. A. Haskell 
 
 W. L. Frost 
 
 Myles , 
 
 Total 
 
 Sailing Vessels, Month of May, 
 1884. 
 
 No. 
 of 
 
 rrips, 
 
 C. B. Jones. 
 
 10 
 1 
 1 
 3 
 2 
 1 
 7 
 4 
 8 
 8 
 2 
 
 47 
 
 15 
 
 47 
 15 
 
 62 
 
 Total 
 
 Oargoi'8 Kn- 
 
 tering Port 
 
 Colborne. 
 
 13,750 
 1,708 
 644 
 5,488 
 1 023 
 1,043 
 5,692 
 4,4?2 
 
 11,670 
 7,862 
 2,111 
 
 56,343 
 
 887 
 3,951 
 
 879 
 2,302 
 1,358 
 1,060 
 2 629 
 
 952 
 
 14,018 
 
 6,179 
 3,944 
 
 9,123 
 
 56,343 
 14,018 
 
 Total Tons 
 
 of Cargo 
 
 Lightened. 
 
 4,874 
 
 683 
 
 96 
 
 2,148 
 481 
 152 
 947 
 920 
 
 2,655 
 
 1,485 
 744 
 
 15,185 
 
 129 
 410 
 231 
 384 
 333 
 103 
 528 
 108 
 
 2,226 
 
 70,361 
 
 3,215 
 1,560 
 1,200 
 
 5,975 
 
 952 
 
 1,637 
 600 
 
 2, ,327 
 
 15,185 
 2,220 
 
 17,411 
 
 1,139 
 428 
 384 
 
 1,951 
 
 Total Tons 
 
 of Cargo 
 
 through 
 
 Caual. 
 
 8,876 
 1,025 
 
 548 
 3,310 
 1,442 
 
 891 
 4 745 
 3,502 
 9,015 
 6,377 
 1,397 
 
 41,158 
 
 3, ,541 
 618 
 
 1,918 
 
 1,025 
 957 
 
 2,101 
 844 
 
 11,792 
 
 3,542 
 .3,254 
 
 Total Cost 
 lighlcning. 
 
 $ cts. 
 
 3,481 18 
 
 487 92 
 
 68 54 
 
 1,427 26 
 379 69 
 108 76 
 675 20 
 693 45 
 
 1,896 96 
 
 l,f60 18 
 697 10 
 
 10,970 24 
 
 115 .33 
 332 58 
 206 35 
 XM 36 
 238 20 
 
 59 95 
 403 11 
 
 97 63 
 
 1,783 51 
 
 1,001 61 
 417 53 
 
 G,796 
 
 41,158 
 11,792 
 
 52,950 
 
 136 
 
 2,076 
 
 1,132 
 
 816 
 
 4,024 
 
 816 
 
 1,419 14 
 
 10,976 24 
 1,783 51 
 
 r..S759 75 
 
 813 42 
 305 58 
 223 75 
 
 1,343 75 
 
 Total 
 Denuirnige 
 
 hourd. miu. 
 
 118 20 
 
 15 20 
 4 00 
 
 44 50 
 
 16 15 
 8 55 
 
 29 48 
 21 50 
 66 15 
 53 30 
 14 45 
 
 97 42 
 
 393 48 
 
 6 25 
 16 35 
 
 8 20 
 12 40 
 20 20 
 
 5 00 
 14 35 
 
 7 30 
 
 91 25 
 
 393 48 
 91 25 
 
 485 13 
 
 31 45 
 10 40 
 10 20 
 
 52 45 
 
 7 15 
 
rnc Harbour, 
 
 Total 
 Demmriigu 
 
 oui'd. 
 
 miu 
 
 118 20 
 
 15 20 
 
 4 00 
 
 44 
 
 50 
 
 IG 
 
 15 
 
 8 55 
 
 29 
 
 48 
 
 21 
 
 50 
 
 66 
 
 15 
 
 63 
 
 30 
 
 14 
 
 45 
 
 393 48 
 
 G 25 
 IG ;i5 
 
 8 20 
 12 40 
 20 20 
 
 6 00 
 14 35 
 
 7 30 
 
 91 25 
 
 15 
 
 It mny bo woon from tho above statomont, t!iat in 1882 of Hovon vohhoIs of totui 
 uf ciirgoos 9,123 tonH entering Port Colborno iiarbour, 2,327 tutm reniiircd to be light- 
 ened, or 25J per cent. The cost of lightening was, 8 1,4 ID. 1-1, which, Icsa tho canal toll.s, 
 would bo a tax of 10 cents per ton upon the total cargoes Hliij)j)od at wcHtern j)ort8. 
 
 In 1883 there were (J2 vohhoIh with aggregate cargoew of 70,361 tons. Of this 
 quantity 17,411 tons required to bo lightened, womo 25 per cent, of tho whole. Tho 
 coHt to the vesHols was $12,759.75, or, jobs the canal tolls, a tax of 13 cents per 
 ton upon the total tons of products shippod. 
 
 If tho smaller vessels aro omitted and tho propellers over 1,000 tons register, of 
 full canal capacity, aro taken, some 30 por cent, of the cargoes require to be lightened, 
 at a tax of 15 cents per ton upon tho cargoes. 
 
 Tho total detention of vobsoIs or demurrage on account of this necessity of 
 lightening was, in 1683, some twenty days, a considerable loss to tho largo class of 
 vessel. 
 
 Of tho propellers which have passed through the canal in tho month of May, 
 1884, some 32-7 per cent, of their cargoes required lightening, at a tax of 16 
 cents per ton on tho whole cargoes. The loss to the revenue of tho canal, since the 
 opening of tho enlargement to 1st June, 1884, has been $4,365.00. 
 
 Attention is drawn to tho statement upon tho following j^igc, in which tome 
 details aro given of tho vessels enumerated in the preceding tabic, showing tho 
 registered tonnage, carrying ca])acity, draught of water loaded, and the average 
 amount of cargo required to bo lightened each trip. 
 
 393 48 
 91 25 
 
 485 13 
 
 31 45 
 10 40 
 10 20 
 
 52 45 
 
 7 15 
 
16 
 
 ^ 
 
 
 «j •* 
 
 V 
 
 <u 
 
 ^^1^ 
 
 
 
 '«5 
 
 -a 
 
 Q 
 
 M Moot- h-lOOO lOQMN C» 
 
 B o M o 40 © « m M CO ^ M o 
 
 bo 
 
 a, a 
 
 p in t^ 
 
 a 
 
 3 N'M'*lO«0«OtO'*t<1iMC« •-• 
 
 o -Hai'O»-Q0i-')''rt-io0> I- 
 00 t- 00 Ki i»> 00 to CO «)< e« t- «p 
 
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 t-»Ooqco-^r^oo*t"t'-r^« op 
 
 
 a 
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 t- n ^ ■-■ C4 c] rH CO lo 
 
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 ^ CO o «o t- -< 
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 Cq >0 -^ Tfl 
 
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 coco coco 
 
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 p^ C^ M ^ CI »-• C^ C« "-( C^ c^ 
 
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 en a 
 
 60 
 
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 rt— icooojtot-cioioco "* 
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 CI C» CI CI fH c» CI d 
 
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 Sift op oi m r*» o o 
 00 * (>5 Cl lO O CO 
 t— OOCOC0OO>t— oo 
 
 OM—OOCOCOCO^ 
 cjococ««}or-ci 
 
 t~<0«DO«>t-0<7) 
 
 cjdcococoomci 
 
 ooaoc~coio<ot— kO 
 aooaoi-cooooo) 
 
 •-cTjif-ieOrH — coca 
 
 CO 
 
 ■<)< CO CO d 
 
 •O 0> d d 
 COd CO CO 
 
 »• »0 d 00 
 
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 OCOCOlOCO-*-HO 
 O»00^d^t-0 
 
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 >CS 05 C'l ^1 
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 05 C^ 00 CO 
 
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 n CO -^-j o 
 
 t cvi i-l t- o 
 
 B ■*^- A< o 
 
 2 Jr o 00 1~ 
 f to >o o Tji 
 
 -pas 
 
 I 
 
 17 
 
 Tho foregoing inblo provos conclusivoly llio itiHufHciont duplh of water in tho 
 cnnul. It will bo Boon that tiio depth of water in tho aqueduct haa boon fully 12 
 foot; that propollors of tho BmuU regiHtorod tonnage of 436^ton8 and Bail vobhoIh of 
 406 toHB required to bo lightonod. 
 
 We are now in a position to dotormino preciaoly tho ofToct of this limited depth 
 of water upon vobboIh built oHpocially for traflio through tho canal. An before Htated, 
 tho OgdonHburg and Lake Chnmpluin Eailwuy have placed upon tho route throe 
 propoUerfl. They were conBtructed by tho Dotroit Dry Dock Company, tho laflt two 
 after tho ozporionco of one BoaHon. It iB to bo presumed that tho marine archi> 
 tecturo of tho latoHt built would bo of a character bout adapted to lake and canal navi- 
 gation. These vobboIb are 265 foot in length, 37 foot in breadth, and have double 
 decks, 16i feet and 9 foot rospoctivoly, and draw about 14 foot of water loaded, having 
 a carrying capacity of 1,680 tonH, or 60,000 bUHhola of corn. 
 
 Tho following statement Hhows tho olFoct of insufflciont water, and the discrimina- 
 tion in favor of Buffalo through this cause, when propollors of full lock capacity and 
 
 suitable model are employed : 
 
 Tons. 
 
 Propeller, registorod tonnage, say 1,450 
 
 " enters Port Colborno Ilai'bour, cargo 1,680 
 
 " requires to lighten to pasd through canal 644 
 
 Transports through canal 1,036 
 
 Percentage of amount lightonod to total cargo 38-4 p.c. 
 
 Cost of lightening $460 00 
 
 Demurrage, say 70 00 
 
 $530 00 
 
 Deduct canal tolls, 614 tons at 20 cents 128 80 
 
 Not cost to vessel lightening $401 2U 
 
 This cost adds 24 cents a ton to tho freight, a discrimination in favor 
 of the Buffalo route of that amount, and greater than the tolls. 
 
 It must be evident that instead of crying out for tho abolition of tolls, it would 
 be more consistent, with a knowledge of what are tho true interests of cheap trans, 
 portation by the St. Lawrence route, to evince greater foresight and agitato for tho 
 deepening of the Wolland Canal. 
 
 FonUTEEN FEET NAVIQATION WITH TOLLS PREPERUABLE TO TWELVE FEET WITHODT. 
 
 When visiting the different lake ports interested in tho St. Lawrence route, tho 
 opinions of Boards of Trade, persons engaged in shipping and doing business in 
 cereals, wore obtained as to the relative advantages of a free canal system or increased 
 depth of water in tho canals. 
 
 An answer was requested to tho following questions, among others, from the 
 Oswego Board of Trade : 
 
18 
 
 Tho tonnage tlirough tho Wolland Canal, botvvcon ports in the Unitod StatoH, 
 hus docroaHod from 1869 to 1882— In vogctablo food, 33*7,500 tons to 04,000 tons ; 
 in hoavy goods, 236,000 to 177,000. A largo proportion of this decrease ia duo to 
 Oswego. State reasons ? 
 
 "Tho reasons for the docrcapo of tonnage arc, in my judgment, asfollows : — 
 Tho lowering of tolls on tho Erie Canal worked against the Ontario and Oswego 
 route to New York, because tho lowering was, as from Buffalo, on 365 miles 
 of canal, whereas, from Oswego i( was on 205 miles, consequently tho toll decrease 
 was in favor of Bullalo in that proportion. Time, distance or price of freight did not 
 meet or overgo the toll decrease. 
 
 "Also, the increased size and tonnage of vessels and steamers used on the Buffalo 
 route gave that route a great advantage over tho small canal vessels which could go 
 to Oswego. A vessel carrying 5j,00U bushels can make a good paying freight, when 
 an 18,000 bushel vessel would lose, lot the price of freight bo what it miglit. Conse- 
 quently, Oswego lost her entire western transit (rado. 
 
 "Also, Oswego has lost by fire all her flouring mills but three. None were re- 
 built, so tho amount of wheat formerly ground at Oswego is not wanted. 
 
 "They were not rebuilt, for tho reason that it cost too much to bring wheat to 
 Oswego in small vessels. 
 
 " Tho Oswego Starch Company has found it cheaper to bring its corn by rail 
 rather than use tho water route. 
 
 " The up merchandise ti-ade could not pay tho freight of tho Oswego route. Con- 
 sequently, what the railroads did not take went mostly west, via Buffalo." 
 
 In 1871, tho Oswego B)ard of Trade, in answer to questions of Canal Commis- 
 Hionersoii the improvement of tho inland navigation of Canada, recommended that 
 the scale of navigation for the enlarged Wolland Canal should be — locks 250 feet x 45 
 feet, and 14 feet over mitre sill. 
 
 Since that date the canal has been enlarged, the locks adapted for 14 feet over 
 mitre sill, 270 feet long and 45 foot wide, larger than recommended by 20 foot in 
 length ; the prism of canal has only been designed for a 12 foot navigation. To give 
 14 feet would require considerable expendituro. 
 
 Whether would the deepening of the canal to pass vessels drawing 14 feet of 
 water or tho abolition of tolls bo moot advantageous to Oswego in competing for the 
 transport of cereals from the West to title water or tho Atlantic States ? 
 
 "The real o]>inion of tho Oswego Board of Trade was strongly in favor of locks 
 .300 foot long, 45 feet wide, and 16 feet on the mitre. Some parties, mostly old men, 
 made fight against the above figures, and it resulted as stated. Tho young men, who 
 foresaw what was coming, were beaten. Their judgment was correct. Tho new 
 Welland Canal is too small. Had it large locks, as stated, 300 x 45 x 10, it would 
 soon control tho entire western trade in tho navigable season of tho year, in spite of 
 tho railroads and tho Krie Canal free of tolls. A craft carrying 100,000 bushels could 
 then reach Lake Ontario, which is as largo as can ever bo used to cross St. Clair and 
 go into, or from, any western port. 
 
 " But these largo locks cannot now be had. All that can be done is to give 14 feet 
 water over mitre. This should be done at any cost. The tl'.ing is to got trade down 
 to Ontario, and 14 feet depth would do a great deal that way. 
 
 "If tho canal is to have only 12 feet water over mitre, it will bo a failure, as it is 
 now, in diverting trade from the Krio canal and the railroads, to Lake Ontario, 
 
 "In my judgment, it would bo far bettor to deepen tho canal to pass 14 feet 
 draught and let the tolls remain as they are. A small reduction could, however, be 
 made without losing any revenue. The largest craft is what is wanted. Twelve feet 
 water is about 40,000 bushels ; 14 loot water would bo about 60,000 bushels. Give 
 tho trade the largo craft and the tolls are not of much consequence." 
 
 exi)t| 
 
 ity 
 
 the 
 the 
 
 (•eo 
 impi 
 LakI 
 the 
 
 COUP 
 
 woul 
 witll 
 pass! 
 
 i 
 
 1 
 
19 
 
 nitod StatoH, 
 4,000 tons; 
 
 is duo to 
 
 sfollows : — 
 ind Oswopfo 
 3(J5 miles 
 oil decroawo 
 ght did not 
 
 tho Buffulo 
 h could go 
 Mght, wiion 
 • t. Conso- 
 
 10 woro 10 - 
 
 ■ wlioat to 
 
 •n by inii 
 
 •uto. Con- 
 
 1 Com mi 8- 
 ndod that 
 
 ' foot X 15 
 
 foot over 
 
 ) foot in 
 
 To givo 
 
 t foot of 
 g for tho 
 
 ' of locks 
 old mon, 
 ion, who 
 rho now 
 it would 
 I spite of 
 ols could 
 Hair and 
 
 3 14 foot 
 de down 
 
 , as it is 
 io. 
 
 I 14 foot 
 Bvor, bo 
 )lvo foot 
 . Givo 
 
 Mr. McWhortor, Chairman of tho Committee on Comraorco, a gontloman of long 
 cxporionco, conversant with transportation upon tho hikos and considered an author- 
 ity upon tho subject, in a letter to my address, Docombor 15th, 1883, in addition to 
 tho above, states: " The reply to those questions embodies tho views of most of 
 tho commercial mon of this city — I may say of all of any noted position. 
 
 ''The question of tolls on tho "Wolland, though of course wo should bo glad to 
 (-00 them reduced or taken oil', is not looked upon by us as a matter of any great 
 importance. What is wanted is tho moans of placing tho largest possible cargo on 
 Lake Ontario from Lake Erie. Tho larger the cargo the cheaper it is moved, and 
 tho easier it is to compete with tho United States railways and the Erie Canal, 
 consequently, as 14 foot water v/ould pass at least 60,000 bushels, that depth of water 
 would bo far more crtoctual in controlling the trade from tho West and in competing 
 with the railroads and the Erie Canal, than would 12 foot of water, which would only 
 pass, say, 40,000 bushels. 
 
 "Canada had tho opportunity to control the entire Western trade for export had 
 tho Wolland Canal boon altered and enlarged so as to pass 100,000 bushels cargo 
 when completed. The route to New York vUi Erie Canal and railwaj's could not have 
 competed with the Wolland and St. Lawrcnoo route when completed via Montieal, 
 for (ho transport of produce, tho St. Lawrence canals being left as they now are. 
 
 "Of course, that is now out of tho question, and tho only thing loft is to make 
 tho Wolland as largo as is possible now ; 14 foot of water over mitre will do agi-oat 
 deal, but to leave tho canal with only 12 feet over mitre is looked upon hero .as 
 making another failure, or a worse one than was tho first enlargement. Such a canal 
 cannot compete with tho United States water or rail routes. What wo, at Oswego, 
 and 1 may say Ogdonsburg, want, is to bo able to compote with Hull'alo for the trade 
 which must go to New York or Boston for domestic consumption. Fourteen loot 
 will enable us to do thai to a very great extent, and we, at Oswego, will soon build uj) 
 a groat transit trade in produce intended for Eastern consumption and not for export. 
 
 " Wo hope, most seriously, Canada will give us 14 feet on mitro and 15 feet in 
 tho prism of tho Wolland Canal. 
 
 "Wo shall bo satisliod to pay tolls if wo can have cargoes p.asscd of 00,000 
 bushels or more." 
 
 As to Mr. McWhorlor's remarks withroforonco to tho trade they wish to build up, 
 tho domestic consumption of tho Rastorn States, that trade can never, under present 
 international regulations, go to Montreal, neither can Oswego or other American 
 ports upon Lake Ontario, or tho St. Lawrence, do an export business of any groat 
 extent. They have never done it in tho past, while Montreal's only business is in 
 export, principally to Great Britain, therefore the interests are identical, as every 
 bushel of grain for domestic consumption in tho Eastern Slates, diverted from Lake 
 Erie to Lake Ontario, paves tho way for another bushel for export. When there 
 was somo agitation, in 1882, in favor of free canals upon tho St. Lawrence route, an 
 unofficial memorandum covering this ground, of which tho following is a copy, was 
 .aildrossod to the lato Minister of Railways and Canals : 
 
 In roforonco to resolution of tho Toronto Corn Exchange, 12th Docombor, 1882, 
 that tolls bo abolished only upon American vessels carrying freight to Canadian 
 ports. 
 
 Tho acceptance of that resolution would destroy one of tho principal objects in 
 tho abolition of tolls. That object is Io divert tho tendency of (r.ade to Hulfalo for 
 transport by tho Erie Canal and railways leading therefrom, through the Wolland 
 
20 
 
 Canal. This point onco gained, tho St. Lawronco routo would bo in a far bettor posi- 
 tion for compotion for tho transport of all coroals that may float on Lako Ontario. 
 
 It is obvious that if grain is divortod from Buffalo to Ogdonsburg, if elevator 
 and storage capacity were provided at Proscott, it would bo less difficult to change 
 across tho river and ship by barges or rail via Canadian routo than to divert from 
 Buffalo to Prescott direct ; or if a propeller once reaches Ogdonsburg with any grain 
 that would have taken tho Buffalo route it would bo a great advantage to tho St. 
 Lawrence routo. A similar proposition applies to Oswego and Kingston. If grain 
 is diverted to tho former city, Kingston is in a bettor position to capture that trade 
 than from Buffalo direct. By tho proposition of tho Toronto Corn Exchange wo 
 would have only Canadian capital and enterprise at work to divert tho trade of 
 Buffalo. By free canals to all American vessels, we would have, in addition, the Ameri- 
 can capital and enterprise of the towns and rail w^ays leading therefrom on Lake 
 Ontario and the Eiver St. Lawrence to assist in this object. 
 
 The report of the Erie Canal Commissioners, in 1811, stating that " articles for 
 
 exportation, when onco afloat on Lake Ontario, will go to Montreal unless our British 
 
 neighbors aro blind to their own interests," still holds good. Tho chief element in 
 
 tho success of our canals is that aHicles for transport should float on Lake Ontario, 
 
 whether bound for American or Canadian ports. 
 
 Mr. McWhortor, in a letter dated tho 16th January, 1884, again states : " Since 
 I wrote you quite an anxiety has arisen among our commercial men as to having the 
 greatest possible depth of water over tho Welland lock mitres and in tho canal prism. 
 One and all, both here and at tho Eastward say, " give us tho deepest water and 
 keep on the canal tolls." 
 
 It may bo stated here that from the earliest inception of tho Wolland Canal, when 
 it was operated by a company, and after tho Province of Canada assumed control and 
 enlarged it, tho representations of tho business men of Oswego always received 
 favorable consideration, tho interests of the south shore of Lake Ontario, and the 
 River St. Lawrence, being identified with tho succoss of our canal system. This fact 
 was recognized by the New York Legislature, tho Western section and Buffalo's 
 interest being all powerful, continual discriminations wore made in favor of Buffalo, 
 bounties arranged adverse to tho interests of Oswego, and every endeavor made to 
 pi-fivorit the Lake Erie trade descending to Lake Ontai'io, Representations made to 
 tho Board of Works of this legislative action rocoivod favorable consideration from 
 tho Board . Before the construction of tho Erie Canal, the routo from Albany to tho 
 West was l>y Oswego, a primitive and imperfect navigation, and a portage around the 
 Falls CI Niagara. The first surveys for a canal were made here. Its construction 
 was strongly resisted by the prominent advocates of the Erie Canal, with what pre- 
 science time has shown. 
 
 Cleveland, Ohio. — This city had formerly a considerable trade in cereals with 
 Montreal. The discrimination of railways has carried tho grain past that port. It 
 has, thorofore, lost importance as a receiving and shipping point. A prominent 
 shipper informed nio that he formerly shipped grain through Montreal, but tho high 
 
 froigll 
 and lil 
 
 numbi 
 cipal 
 vantal 
 foot 
 
21 
 
 freight rates and lack of return cargoes had interfered with the business on this route, 
 and little had boon done for several years past. 
 
 A largo industry in this city is the building of iron propellers. There are a 
 number of the larger class of vessels owned. In conversation with one of the prin- 
 cipal vessel owners, ho remarked that he had no doubt that it would bo more ad- 
 vantageous to the vessels to pay moderate tolls, with a 14 feet navigation, than 12 
 feet with free canals. 
 
 The Hon. G. II, Ely, State Senator for Ohio, one of the prominent advocates for 
 the improvement of the northern water-ways, the enlargement of the St. Mary's Canal 
 and the deepening of the St. Mary's River, one who has always been active in pressing 
 the Federal Government for appropriations for that purpose, informed me that ho 
 estimated the increased depth of water from 12 to 14 feet in the St. Mary's River had, 
 on the transportation of iron products, in 1882, resulted in a saving of from $700,000 
 to $800,000. This gentlemen was also one of the principal opponents to the efforts 
 of the railway companies to obtain authority from the Podcval Government to bridge 
 the Straits of Detroit, to the lasting injury of the lake marine and commerce. In a 
 speech before the Select Committee on Commerce of the United States Senate and 
 IIouso of Representatives, in opposition to the passage of a Bill for that purpose, he 
 stated the value of the lake marine is estimated at $50,000,000 to $60,000,000, that 
 the State of Michigan alone moved upon those waters, in 1879, in five products only, 
 to the value of $30,463,114. Those products were salt, copper, iron ore, pig iron and 
 lumber, 
 
 I give these figures to show that if at present our lake marinejs insignificant, we 
 have, in the products of the North-V7est and the north of lakes Superior and Huron, 
 the capability of building up a lake marine and commerce. The commerce ot the 
 groat lakes, in the opinion of a commission of United States Engineers, appointed to 
 report upon the the subject of bridging the Detroit River, was of more importance 
 than the foreign commerce of the United States. 
 
 Toledo, Ohio. — A lake port standing second in its shipments of wheat and corn 
 
 by the St. Lawrence route. In conversation with the principal shippers and vessel 
 
 owners, six in number, they one and all agreed that a 12 feet navigation was in- 
 
 officiont, as nearly all vessels doing a profitable business upon the lake required over 
 
 12 feet of water, and that tolls with 14 feet would be far more advantageous to the 
 
 trade. They also objected to lightening, as with an assorted cargo of different graded 
 
 grain it was liable to be mixed in the elevator. 
 
 The official opinion, in a letter to my address, from the Secretary of the Toledo 
 
 Produce Exchange, and in answer to similar questions, interrogated the Oswego 
 
 Board of Trade, states : — 
 
 " But the dol.ay may not be wholly lost time, since it has given mo more time to 
 consult more freely with interested members of the association, whom I find quite 
 generally to coincide with mo in the opinion that an increased depth of water in the 
 Wolland Canal to 14 foot, with a slight toll on the products transported, would 
 increase its strength and importance as a competing route in a far greater ratio than 
 if the depth of water is continued at 12 feet with an entire abrogation of tolls. 1 think 
 
 a 
 
this theory finds its natural dofonco in the great increase in the capacity of the grain 
 carrying marine of the lakes. All new vessels, steam or sail, are large, and the 
 capacity of the vessel is the leading factor in regulating freights. The present plans 
 for improving our own channel to the lake contemplated a depth of 16 foot, part of 
 which is already secured." 
 
 Detroit, Michigan. — Detroit stands fourth as a lake shipping portof graii. by the 
 
 St. Lawrence route. The Secretary of the Detroit Board of Trade thus replies to the 
 
 same questions as previously quoted: "I find that the majority of those actively 
 engaged in the shipping business and best qualified to form an opinion, incline to the 
 belief that the West would prefer to soe a depth of 14 foot in tho Woiland Canal, 
 subject to tolls, than the 12 foot on mitre sill free of tolls." 
 
 Chicago, III. — This port is tho largest shipping port of cereals by tho St. Law- 
 rence route. Tho Secretary of the Chicago Board of Trade replies to a similar 
 
 question : " I have conversed with several gentlemen supposed to bo capable of giving 
 an intelligent opinion on the question as to which would be most conducive to an 
 increase of business through t' ! Canadian canals, a depth of 14 feet with, say, J cent 
 per bushel tolls, or 12 foot and no tolls, and, without exception, the 14 foot with ^ 
 cent toll is preferred, on tho theory that vessels drawing about 14 feet can carry 
 grain to Lake Ontario more than i cent per bushel less than vessels only loaded to 
 12 feet." 
 
 Milwaukee, Wis. — This port occupies the third placo in the list of grain shipping 
 ports by the St. Lawrence route. Tho official opinion, from tho Secretary of the 
 Chamber of Commerce, was not obtained. In conversation with the principal grain 
 and shipping men, some of whom were Canadians, all wore of the opinion that 14 
 feot navigation, with tolls, was preferable and more advantageous in shipping by the 
 route than 12 foot without tolls. 
 
 Ogdensburgh, N.Y. — This port, on the St Lawrence, has done a largo business 
 through the canal which was nearly ruined by tho small vessel. Since the enlarge- 
 ment throe vessels will transport nearly as largo a quantity as fifteen which formerly 
 pliod upon this route, at one-third the expense. 
 
 Opinion of W. L. Frost, Esq., President of tho Ogdensburgh and Lake Champ- 
 lain Railway : *' As to my views on the subject, in brief, they are that you should 
 deepen the Welland Canal to 16, 18 or 20 feot if possible; to stop at 14 feet, while it 
 will help, will not put the route on a level with the Buffalo and Erie Canal, with 
 their free canals. 
 
 If the Welland Canal can be deepened to 20 foot you would command the trade 
 of the lakes, in my opinion, and as you decrease from that point you only come 
 into competition with Buffalo and will only be partially successful. Any increase in 
 the depth is a move in the right direction, but I trust that you will not stop at loss 
 than 16 feet. 
 
 In the matter of tolls and general expense at canal lighterage, and all other 
 matters as they exist to-day, they are altogether too burdensome to induce heavy 
 tonnage, either to Canadian or American Lake Ontario ports. 
 
 These heavy tolls with the present depth of water are surely driving grain 
 from Montreal, Kingston and Ogdcnsburg, directly to Buffalo and Erie Canal. 
 
 All this should bo immediately remedied, and while tho present depth of water 
 exists, 11 feet 9 inches being about as low as it is safe to load to, all tolls should bo 
 taken off and lighterage reduced to a nominal sum. 
 
 The Dominion Government should also appoint special officers over the Welland 
 Eailway, io soo that no discrimination or favoritism is exorcised. In short the 
 Welland Canal should bo pat on the same basis as the United States Sault Ste. Marie 
 Canal. 
 
 
23 
 
 of the grain 
 •ge, and the 
 resont plana 
 foot, part of 
 
 ^raii. by tho 
 
 )plios to the 
 
 oso actively 
 iclino to tho 
 Hand Canal, 
 
 ho St. Law- 
 
 ,0 a similai- 
 
 )lo of giving 
 lucivo to an 
 say, J cent 
 feet with J 
 3t can carry 
 y loaded to 
 
 in shipping 
 stary of tho 
 icipal grain 
 lion that 14 
 ling by the 
 
 50 business 
 le enlarge- 
 h formerly 
 
 ko Champ- 
 
 you bhould 
 et, while it 
 ^anal, with 
 
 1 the trade 
 only come 
 increase in 
 top at loss 
 
 id all other 
 uco heavy 
 
 ving grain 
 
 lal. 
 of water 
 should bo 
 
 lo Wclland 
 short the 
 Ste. Marie 
 
 In respect to our future plans, I have to say that this railroad company, and its 
 owners, believo that tho Welland Canal route can bo made tho best and cheapest 
 future route for transporting grain, and other western products, to tho Canadian and 
 Atlantic seaboard. We believo that tho interests of the Canadians are tho same as 
 our own, that if properly handled wo can each have and take all tho business that 
 either, or both, want without interfering with each others interests. 
 
 Tho more grain that can come by tho Welland Canal, whether to Kingston, 
 Montreal, Ogdensburg or other Lake Ontario ports, tho better for all our interests in 
 the end . 
 
 This may seem a singular idea to you, but I think reflection will convince your 
 authorities that our interests are the same, and wo must move together as against 
 Buffalo and Erie Canal route. Last year the Detroit Dry Dock Company built for 
 our lino the pioneer steamer of the Welland Canal route, and this year they have 
 added two more of greater capacity. 
 
 These three steamers are tho " Walter L. Frost," " William A. Haskell" «nd 
 " William J. AvoroU " and have a tonnage capacity equal to or exceeding fifteen of 
 the steamers of tho old Northern Transportation Company. 
 
 They will carry 53,000 and 60,000 bushels of corn respectively, and are 
 perfect steamers in every respect. If wo can see any encouragement for 
 deeper water in the canal next year, and free or reduced tolls, I think our policy will 
 be to add three or five similar steamers in 1885, and so on, until we got our full 
 quota. We intend and have laid our plans to carry (4,000,000) four million bushels 
 of corn, via Ogdensburg, in 1884. 
 
 As this answers your inquiries with papers from Ogdensburg, I will only say, 
 in conclusion, that I trust you will succeed in convincing your Government of the 
 necessity of freeing tho canal as it exists to-day, and giving grentor depth of water 
 for tho future." 
 
 Subsequent to the commencement ot the present enlargement, strong repre- 
 sentations, made by parties conversant with this subject and interested in tho success 
 of our national itorway, fortunately led to the permanent structures, both upon 
 the Welland and St. Lawrence Canals, being constructed for an eventually greater 
 depth of water. 
 
 On a canal situated as tho Welland, with numerous locks in close proximity to 
 each other, and where there is great difficulty in obtaining sufficient length botweou 
 the locks, longer locks were, from an engineering point of view, perhaps, imprac- 
 ticable upon the present alignment. There is also the time which would be con- 
 sumed in filling larger locks and locking vessels, through numerous locks, which would 
 not be felt in a canal with loss lockage, such as the Sault Ste. Mario Canal, with one 
 lock, and that sufficiently largo to admit of more than one vessel. To the depth of 
 water these objections do not apply, no greater length of time being required to lock 
 a vessel drawing 1(5 foot than ono drawing 12 foot. 
 
 The principal reason of tho decay of our lake marine, and a principal factor in 
 the Utile success attained by the St. Lawrence route, in no degree commensurate 
 with the expenditure upon it, has been shown to have been tho largo vessels. Tho 
 only hope of building up a lake marine is in the development of the mineral and 
 other resou. -j:* 01" L-ie north shores of Lakes Hux-on and Superior, and in the trans- 
 port of the surplus cereals of the North- West. 
 
 The large vessel requires a long voyage, such as Chicago or Duluth to Buffalo, 
 or Chicago and Port Arthur to Kingston. To navigate safely the upper lakes will 
 require vessels of a build calculated to withstand tho heaviest sea, as tho depth of 
 
24 
 
 water drawn would 2>rovont thorn from seeking harbours of refuge or, at least, the 
 majority of harbours. 
 
 The element of speed will also have to bo considered in the build ; the surplus 
 harvest of the North- West requiring to bo moved during tho season of navigation, 
 tho greater number of trips that can bo made tlio better tho vessel will pay. Such a 
 steamer should average 10 to 12 milos an hour, as fast as tho average time of 
 freight trains carrying the same class of freight. While vessels of a model giving 
 greater carrying capacity than assumed previously for tho limit of a 12 foot 
 navigation could bo constructed, it is safe to conclude that any judgment of the best 
 model of vessel can bo formed from what tho experience of tho American builders 
 have found adapted to navigating tho upper lakes. There cannot be employed with 
 safety that peculiarity of marine architecture which the small scale of the former 
 navigation rendered necessary — tho old " canallor " upon an enlarged scale. 
 
 A propellor built upon tho principles indicated could transport, through a 12 
 feet navigation, some 1,200 to 1,400 tons of cargo ; on a 11 feet navigation, some 2,000 
 to 2,200 tons, and on a 15 foot navigation, 2,400 to 2,600 tons. I have given pre- 
 viously an approximate estimate of tho greater proflts, relative to expenses, which 
 large carrying capacity affords. 
 
 When tho surplus cereals of tho North- West are brought to Port Arthur, as at 
 present, the grain of Dakota and Montana is taken to Duluth. If there is the samo 
 facility of shipping Canadian grain for export from Buffalo east by rail and canal as 
 there now is for exporting American grain by the St. Lawrence route, and if tho 
 large vessel has succeeded in directing to Buffalo and prevented from taking tho 
 St. Lawronco route the products of tho Wontorn States, tho samo cause will operate 
 in favor of Buffalo receiving and shipping tho cereals of our North- West as thoy now 
 do the shipments from Duluth. 
 
 There is a limit to tho depth of lake navigation, for tho Lake Superior trade, 
 that has been settled, by the Sault Ste. Mario Canal and the deepening of the St. Mary's 
 River by the United States Government, at 16 foot. 
 
 The Michigan ports and Lake Erie trade aro limited by the Lime Kiln Crossing. 
 Tho excavation has been made in a bed of limestone rock. It is said to beat present 
 difficult, without a high stage of water, to obtain over 15 feet navigation. Buffalo 
 talks of 20 foot. Make your canals 14 or 16 feet ; we will deepen our harbours and the 
 Federal Government will deepen the channels alluded to, and by tho larger class of 
 vessels we will still retain our trade as tho groat receiving port for cereals shipped 
 at western lake ports. It appears that if 16 foot can bo obtained it will be as deep as 
 the Federal Government will undertake, considering they have settled in the con- 
 struction of tho look at Sault Ste Marie and tho improvements to the St. Mary's 
 River to that depth. It may bo concluded that 16 feot depth of water is a finality, 
 and consequently the ultimate size of vas'sels as tho dimensions of a vessel aro governed 
 by the depth of water available, that is, tho breadth of beam, depth of hold and length 
 must have relative proportions. 
 
26 
 
 During Iho BOUion of navi^'ation, 1883, thoro wore 9(i propellers (not trips) of 
 registered tonnage, varying from 818 tonn register (1,200 tons carrying capacity) to 
 2,164 tons register, and 3,000 tons carrying capacity, with a draught of water from 
 13 feet to 15 feet 6 inches, also a largo fleet of sailing vessels plying between western 
 ports and Buffalo. Of this largo tonnage not one could pass through a 12 feet naviga- 
 tion loaded. Practically, at the present time, every inch of water from 12 feet to 15 
 feet 6 inches, ift a serious discrimination against the St. Lawrence route in favor of 
 Buffalo. 
 
 The importance of obtaining the greatest depth of water is manifest, when it is 
 stated that vessels of full capacity of lock, as to length and breadth of beam, when 
 loaded down to 12 feet, every additional inch of water afforded will permit the trans" 
 port through the canal of 20 to 25 tons additional cargo. If it is deemed advisable to 
 afford a greater depth of water In the canal, the greatest depth possible should be 
 given. 
 
 The level of the inland lakes rises and falls gradually from high to low water ; 
 from one high or low water year to the succeeding high or low water year, occupies 
 a period of a number of years, which varies from causes it is unnecessary here to 
 notice. In early days there was supposed to bo a uniformity in this periodicity, 
 This change in levels, which may be termed normal, affects all the lakes simultaneously. 
 The abnormal changes are caused by prevailing winds for a length of time in one 
 direction, or by heavy gales. To those. Lake Erie, from the shallowness of the water, 
 is subject to the greatest fluctuations. Provision has been made at Port Colborne to 
 prevent the catal from being influenced by these changes. We have, therefore, only 
 to consider the normal levels. 
 
 Port Colborne harbour has been excavated to give 17 foot of water in the 
 outer part and 16 feet near the guard lock. There is, consequently, in Port Colborne 
 harbour, the standard depth of St. Mary's Canal and Eivor, also of the Lime Kiln 
 crossing which is subject to the same fluctuations from wind as Port Colborne har- 
 bour. Steamers and vessels will therefore be able to enter Port Colborne harbour 
 drawing water of a depth equal to the standard depth settled by the Federal Gov- 
 ernment of the United Slates. Steamers engaged in the Lake Superior trade, between 
 Montreal and Port Arthur, will certainly load down to the depth of standard lake navi- 
 gation, and lighten at Port Colborne to pass the Wclland Canal. The structures upon 
 the Lake Brie level of the canal have boon designed for a 14 feet navigation at the 
 normal low- water level. Only one season of navigation out of thirty -four, of which a 
 record of the daily depth oi water has boon recorded, has the level boon at or below 
 low-water level for any considerable part of the season. There will, therefore, be in 
 the Lake Brie level of the canal some 17 miles in length — a navigation, of say, 
 from 14 to 16 feet. If at any time a vessel drawing over 14 feet can pass through 
 17 miles of canal, there is no reason that provision should not be made for her to 
 pass the other 9 miles. Therefore, in my opinion, if the enlargement is undertaken 
 the bank and locks below the Lake Brie level should bo so adapted as to allow the 
 
26 
 
 passage of a vossol drawing the navigable depth of this level accoi'ding to the stage 
 of water. 
 
 From a cursory observation of the water registers, I should judge that, taking a 
 long period, there would bo as many days of navigation when the water was over 15 
 foot as under. It would be a judicious expenditui'O to provide for elevating the 
 water in the lower levels to a mean between tho normal high and low-water levels 
 of Lake Erie. 
 
 MOVEMENT OP SURPLUS PRODUCTS FROM THT WEST BY RAIL AND WATER. 
 
 Wheat and corn are tho chief cereals shipped from western lake ports and 
 exported by the St. Lawrence water route. As great prominence has boon given to 
 this trade recently, by the agitation for the abolition of canal tolls, and tho diminish- 
 ing quantity of grain taking this route to tho seaboard, attention will be confined to 
 these products. 
 
 For the surplus cereals of tho Western Slates, there are seven primary specula- 
 tive markets. Of the total eastern and southern movement, in 1880, Joseph Nimmo, 
 Esq., Chief of the Bureau of Statistics, Washington, states that 80 per cent, was 
 marketed at these points, and that 20 per cent, was shipped direct by rail from tho 
 Western and North-Western States. Tho direct shipments from points of production 
 are difficult to estimate. WLethor this could bo applied as an average, I am not aware. 
 
 The following are tho markets and tho receipts of wheat and corn for tho year 
 1883 :— 
 
 St. Louis.... 
 
 Peoria 
 
 Chicago..... 
 Milwaukee., 
 
 Duluth 
 
 Detroit 
 
 Toledo 
 
 Principal Grain Markets. 
 
 Total., 
 
 Buahels. 
 
 15,000,704 
 
 340,880 
 
 20,364,155 
 
 9,025,1C4 
 
 6,700,000 
 
 6,857,366 
 
 23,818,000 
 
 82,106,269 
 
 Buiihels. 
 
 20,001,406 
 
 9,363,225 
 
 74,412,319 
 
 2,256,862 
 
 195,000 
 
 1,823,087 
 
 10,506,600 
 
 118,558,543 
 
 Of the quantity marketed, some 81 per cent, of wheat and TS per cent, of corn 
 was at lake ports, naturally contributory to Montreal. A greater quantity of wheat 
 is mai'koted at lake ports, the princijial producing districts being tributary and con- 
 tiguous to the lakes. Tho corn-producing country being to tho southward of tho 
 lakes, numerous competing railways intersecting it, particularly Southern Illinois, a 
 larger percentage is shipped directly by rail from the point of production to the con- 
 sumer. 
 
 At lake ports the largest receipts of wheat are in July and August. The harvest 
 if necessary, can be marketed and shipped oast before the closing of navigation. 
 
27 
 
 In Dakota and wostorn Minnesota tho harvest is later, A larger portion arrives 
 at lake ports after tho closing of navigation and awaits its opening in tho warehouses 
 of Duluth or Milwaukee. Corn is ready for market in December. Receipts are largest 
 at lake ports in December and tho three following months. 
 
 An analysis of the receipts and shipments at Chicago, shows that the principal 
 business is done during tho season of navigation, that tho wheat crop may reach the 
 seaboard before tho closing of navigation, and that tho corn awaits tho reduction of 
 cost of transportation by tho waterways. 
 
 The following figures are given corroborative of tho preceding statemont, of 
 receipts of wheat and corn at Chicago, 1883 : — 
 
 Bushela. 
 
 Receipts, season of navigation 6'7,318,2'75 
 
 " winter months 27,458,196 
 
 Total receipts 94,776,471 
 
 Receipts during season of navigation, 71 por cent., and daring the winter 29, per 
 cent. 
 
 Of tho shipments of wheat and corn, tho following statement will show tho pro- 
 portion shipped by rail and by water for the last twenty years : — 
 
 Statement of Shipments of Wheat and Corn, East from Chicago. 
 
 Year. 
 
 Wheat. 
 
 Corn. 
 
 By Lake. 
 
 By Rail. 
 
 By Lake. 
 
 By Rail. 
 
 1864 
 
 9,983,567 
 
 6,502,575 
 
 5,827,846 
 
 8,492,187 
 
 8,896,647 
 
 ll,2i9,514 
 
 13,429,069 
 
 12,120,923 
 
 8,831,870 
 
 15,628,984 
 
 173,392 
 866,028 
 4,055,303 
 1,899,277 
 1,402,816 
 1,895,823 
 2,902,953 
 666,573 
 3,122,166 
 8,149,209 
 
 11,993,475 
 24,421,600 
 31,257,855 
 19,940,172 
 21,«71,07l 
 17,019,940 
 13,598.387 
 34,200,876 
 41,589,508 
 34,487,205 
 
 193,217 
 
 1865 
 
 9C2,369 
 
 1866 
 
 1867 
 
 1868 
 
 1,369,771 
 1 285,418 
 2,978,388 
 
 1869 
 
 4,501,481 
 
 1870 
 
 1871 
 
 4,108,942 
 2,6:6,154 
 
 1872 
 
 1873 
 
 6,424,044 
 2,194,361 
 
 
 
 Ten years 
 
 100,893,182 
 
 25,153,540 
 
 250,180,089 
 
 25,473,155 
 
 1874 
 
 16,974,149 
 16,061,051 
 
 7,396,369 
 10,345,983 
 12,903,481 
 17,622,796 
 16,685,046 
 
 7,688,072 
 14,944,258 
 
 7,067,667 
 
 9,729,251 
 5,956,619 
 5,378,792 
 2,957,250 
 10,018,880 
 12,232,323 
 4,728,425 
 7,680,269 
 2,389,645 
 2,690,866 
 
 30,242,311 
 21,850,652 
 28,104,'i65 
 38,607,611 
 46,368,653 
 41,561,336 
 72,400,769 
 44,164,571 
 31,394,261 
 47,738,117 
 
 2,364,833 
 
 1875 
 
 4,321,559 
 
 1876 
 
 1877 
 
 17,299,232 
 7,657,611 
 
 1878 
 
 13,604,468 
 
 1879 
 
 19,711,615 
 
 1880 
 
 21,100,849 
 
 1881 
 
 29,623,326 
 
 1882 
 
 1883 
 
 16,911,850 
 22,679,633 
 
 
 
 Ten years 
 
 127,688,865 
 
 63,662,260 
 
 402,432,546 
 
 165,074,866 
 
28 
 
 It will appear, for the docado ending 1873, that 87'4 per cent, of wheat and corn 
 waH shipped by water, and 12-6 per cent, by rail. For the decade ending 1883, Homo 
 lO'B per cent, was shipped by lake and 29-2 per cent, by rail. That the railways 
 have inoroasod their porcontages during the last decade is duo to the decreased cost 
 of transportation through the stool rail and other improvements, and particularly on 
 account of two years of railway wars, during which grain was carried below cost — 
 1876 and 1881. In these years, taken together, the railways increased their ship- 
 ments to some 41 per cent., leaving 59 per cent, by water. 
 
 The shipments of wheat and corn during the season of navigation 1883, were : — 
 
 Bushels. 
 
 Shipped by rail 13,534,155 
 
 " lake 64,805,774 
 
 Total 68,339,929 
 
 There was shipped by rail, say, 20 per cent., and by water 80 per cent. 
 The competition of rail with water transport or all rail shipments was com- 
 menced about 1869. The competition became more severe as additional through Mnos 
 wore established, of which there are eight running east from Chicago. The following 
 table, taken from the Eoport of the Chicago Board of Trade, gives the destination of 
 shipments of wheat and corn by lake from Chicago in 1383 : — 
 
 Statement showing destination of Shipment of Wheat and Com by La/ce from Chicago, 1883. 
 
 Bushels. 
 
 Lake to BufiFalo 37,312,808 
 
 « to other U. S. ports 5,237,085 
 
 Lake to Canadian ports in transit to U. S. ports, viz. : 
 
 Busbela. 
 
 « to Midland , 1,480,906 
 
 « to Collingwood 1,324,875 
 
 " to Port Edward 1,371,786 
 
 " to Sarnla 1,077,681 
 
 5,255,248 
 
 " to Odwego and Ogdensburg 2,275,549 
 
 " to Kingston and Montreal , 3,437,104 
 
 « to other Canadian ports 1,287,980 
 
 Total 54,805,774 
 
 Some 68-1 per cent, was shipped to Buffalo, 6'3 per cent, to Kingston and Mon- 
 treal, while 9'6 per cent, was shipped to Canadian ports, on Lake Huron and Georgian 
 Bay, and transported by rail to the Eastern States. 
 
 The latter shipments to the Grand Trunk, Midland and Northern Bail ways, 
 amounting to 5,255,248 bushels, and taking 3,803,667 bushels shipped all rail from 
 Chicago by the Grand Trunk, there is a total of 9,058,915 bushels of wheat and corn. 
 The proportion of this which passed through Montreal cannot be determined. 2,422,330 
 bushels were received at Montreal by the Grand Trunk Railway, a considerable 
 
 porll 
 
 the 
 
 troall 
 
 froiiJ 
 Statl 
 
 Lake] 
 
it nnd corn 
 1883, Homo 
 3 railwJiyH 
 ouHod cost 
 cularly on 
 low cost— 
 Lhoir ship- 
 
 3, wore : — 
 Buahcls. 
 13,534,155 
 64,805,'774 
 
 68,339,929 
 
 was com- 
 ough 'inos 
 i following 
 inalion of 
 
 'Mgo, 1883. 
 
 Bushels. 
 J7,3 12,808 
 
 5,237,085 
 
 5,255,248 
 2,275,549 
 3,437,104 
 1,287,980 
 
 4,805,774 
 md Mon- 
 jrcorginn 
 
 'ail ways, 
 ail from 
 nd corn. 
 U22,330 
 iiderablo 
 
 29 
 
 portion of wliich must hiivo boon Canadian, whilo 8,453,833 biishola wore received by 
 llio Ijuchino Canal, which quantity in, porhaps, Iohh than that Hhippod through IVfon- 
 troal to Now England points by rail. 
 
 Tolodo boing noaror tho seaboard, a larger percentage is shipped by rail than 
 from Chicago. 
 
 Statement nhowimj the destination of Shi2>7nents of Wheal and Corn by Lake, from Toledo, 
 
 in 1883. 
 
 Bushels of Wheat 
 and Corn. 
 
 Lake to Buffalo 9,016,433 
 
 «« to Montreal 1,265,296 
 
 " to Oswego and Ogdonsburg 1,062,640 
 
 " to other ports 797,798 
 
 Total 12,142,067 
 
 Those statements concerning tho two i)rincipal ports which utilize tho Wolland 
 Canal, give some idea of tho business which Montreal is allowing to sock other routes. 
 
 As roloronco has lately boon mado to tho largo amount of grain in store at 
 Chicago, and tho small quantity seeking tho St. Lawrence route, caused, it is asserted, 
 by canal tolls, this trade will be analyzed. 
 
 Tho shipments of wheat and corn from Chicago, taken as an initial point, may 
 bo divided into three classes. 
 
 Shipments to the consumer, direct to interior points, say, oast of the Wolland 
 Canal. 
 
 Direct shipments to Great Britain upon a through bill of lading and through 
 freight rates. 
 
 Shipments to Atlantic ports, either for export or homo consumption, as doomed 
 advisable. 
 
 Tho first shipments to the consumer are either by all-rail, lake to Buffalo and rail 
 therefrom, or lake to Oswego and Ogdonsburg, principally, on Lake Ontario, and rail 
 therefrom. This business has boon almost entirely diverted from tho Erie Canal. On 
 account of the small scale of navigation upon the Wolland Canal, it has boon diverted from 
 Oswego and other American ports below tho canal. Through the enlargement, these 
 towns hope to regain this trade and incroaso it. If tho canal is deepened there is no 
 doubt but that there will be a diversion from Buffalo, and a corresponding increase 
 to tho revenue of the Wolland Canal. The abolition of tolls on tho Erie Canal, or 
 tolls on our own canals, cannot effect Montreal in so far as this business is concerned, 
 for under tho present system of commercial relations between tho two countries, it is 
 impossible for Montreal to engage in it. 
 
 The following statement shows the remarkable decline in tho five years ending 
 1883, fi-om tho five years ending 1878, in tho porcontago of wheat and corn passing 
 through the Wolland Canal from United States to United States ports. It might boa 
 subject of congratulation, if there had boon a proportionate incroaso in tho movement 
 down tho St. Lawrence of export grain, but such has not boon the case ; the decline 
 
30 
 
 has boon causod by tbo divorHion to Buffalo of wheat and oorn for the domoHtio con. 
 Humption of tho Kastorn StatoH, caiiHod by tho largo vcsHel. From tho incroaflo iu 1883 
 it may bo hopod, that if tho Wolland Canal \» docponod, tho Houth Hhoro of Lake 
 Ontario and tho Rivor St. Lawronoo will regain ita former proportion of Bhipmonta 
 through tho Wolland Canal. For tho firnt five yoarn, tho porcontage to United States 
 porta waa aorao 49 per cent.; for tho aocond, 25 por cent. 
 
 Statement showing the Quantity of Wheat and Corn passt'd down the Well<ind and St. 
 Lawrence Canals, from Lake Erie to Montreal ; also, the Quantity passed down the 
 Welland Canal from United States to United Slates I'orts, Amount of Tolls thereon 
 and showing Percentage of Increase and Decrease, from 1874 to 1883, inclusively. 
 
 Years. 
 
 Lake Eric to Moutical. 
 
 United States to United States. 
 
 Tons. 
 
 Tolls. 
 
 $ 
 
 41,830 
 32,316 
 32,779 
 46,884 
 46,463 
 
 Tons. 
 
 Tolls. 
 
 1874 
 
 1876 
 
 209,164 
 162,679 
 103,899 
 2.34,420 
 232,316 
 
 354,647 
 168,020 
 154,384 
 172,645 
 
 126,668 
 
 72,929 
 31,604 
 30,876 
 34,529 
 25,114 
 
 1876 
 
 1877 
 
 1878 
 
 
 
 Totol 
 
 1,002,368 
 
 200,272 
 
 977,264 
 
 87,192 
 46,733 
 64,361 
 62,660 
 120,410 
 
 381,346 
 
 197,062 
 
 1879 
 
 .303,709 
 332,65'J 
 146,137 
 179,166 
 185,570 
 
 60,678 
 G(i,529 
 29,225 
 35,833 
 37,114 
 
 17,438 
 9,347 
 12,870 
 12,632 
 24,082 
 
 1880 
 
 1881 
 
 1882 
 
 1883 
 
 
 
 Total 
 
 1,147,234 
 
 229,379 
 
 76,269 
 
 
 
 The second, through ahipmont to Groat Britain, ia a purely rail business, not 
 taking tho all-walor routes. Tho advantages are, a through bill of lading ia given, 
 with through freight rates, embracing intermediary charges, commiaHion, &c. Tho 
 through freight rate to Liverpool is quoted lower than tho combined rail and ocean 
 freight. Eatoa can bo cut as tho pro-rating of tho through rate between the railway 
 and tho ocean vessel companies, is not known, 
 
 Tho regular ocean steamer lines have their agents in Chicago seeking business. 
 Shipments are sometimes made of wheat and corn for ballast for the steamer. Mon- 
 treal, through the Grand Trunk, ia able to obtain hor share of this business, which 
 cannot be affected by canal tolla. 
 
 By the following statement is shown tho extent and growth of this trade, a 
 diversion from tho canals through the saving of intermediary charges, and tho com- 
 petition of rival Atlantic ports, steamship lines and railways. 
 
 Tho Secretary of the Chicago Board of Trade states that local shippers usually 
 prefer to consign to eastern cities, with tho option of sale there, or ultimately ship- 
 ping to Europe. 
 
81 
 
 $ 
 
 72,929 
 3^604 
 30,876 
 34,529 
 
 26,114 
 
 197,062 
 
 9,347 
 12,870 
 12,632 
 24,083 
 
 76,269 
 
 ti 
 
 i 
 
 Statement of Direct Exportation of Wheat and Cum on throui;h Bills of Lading from 
 
 Vhica'jo. 
 
 Years. 
 
 1869 
 
 1870 
 
 1871 
 
 1872 
 
 1873 
 
 1874 
 
 187S 
 
 1876 
 
 1877 
 
 1878 
 
 1879 
 
 1880 
 
 1881 
 
 1882 
 
 1883 
 
 Wheat. 
 
 6,220 
 
 84,619 
 
 1:<I,906 
 
 269,617 
 
 1,4 0,918 
 
 980,193 
 
 2,440,713 
 
 1, 199,718 
 
 l,964,»i«7 
 
 6,121,681 
 
 3,527,807 
 
 2,267,220 
 
 3,237,319 
 
 1,628,076 
 
 2,124,441 
 
 Ooro. 
 
 388,907 
 
 8,600 
 
 209,617 
 
 708,979 
 
 2,:U6,206 
 
 1,620,675 
 
 4,149,662 
 
 10,991,760 
 
 7,439,068 
 
 7,638,335 
 
 1,689,478 
 
 2,893,870 
 
 Total. 
 
 6,220 
 
 84,619 
 
 131,960 
 
 657,687 
 
 1,429,648 
 
 1,189,840 
 
 3,149,692 
 
 3,616,924 
 
 3,675,262 
 
 10,271,233 
 
 14,619,567 
 
 9,696,288 
 
 10,875,664 
 
 3,217,664 
 
 6,018,311 
 
 In 1883, of tho total Hhipmonta on through bill of hiding to Europe, of grnia 
 boocIh, moatri and othor productH, l.'!4,;}9-t tons wore whipped by lake to Buffalo, and 
 rail to tho soaboard, and 320,873 touH all-rail. 
 
 Tho third, through Hhipmonts to Atlantic portn, either for export or home consump- 
 tion. For shipmentH all-rail, Montreal in at no ditadvantago, except tho inadequate 
 terminal facilities, with othor competing ports. She is of a groat through line, and, in 
 the near future, of another, tho nearest ocean port for at least seven months of tho 
 year. As there is no homo market in Montreal, we have now its grain business re- 
 duced down to export grain shipped by lake, which may take either lake and rail or all 
 water. For lake and rail nhipmonts Montreal has the same opportunities as other 
 ocean ports. There are four ports upon Georgian Bay and Lake Huron to which 
 grain is shipped, as stated elsewhere in detail, and carried through Montreal to 
 American ocean ports. 
 
 Taking a year — Montreal had a less percentage of export than usual in comparison 
 with other Atlantic ports — 1871). In that year, of wheat and corn — 
 
 Bushels. 
 
 Montreal exported , 14,513,528 
 
 Boston do 11,784,448 
 
 Now York do 98,793,977 
 
 Philadelphia do '. 31,433,667 
 
 Baltimore do 53,471,768 
 
 Total bushels 209,997,388 
 
 In tho same year the shipments from Buffalo, by canal, of wheat and corn were 
 51,214,891 bushels; the receipts by canal, at New York, being nearly the same 
 quantity. Allowing that tho greater portion of those receipts was^ exported, I find 
 that during tho time the canal was opened there wore about 64,000,000 bushels of 
 
32 
 
 wheat atid corn oxportod, wliich woiilil loavo, Hay, 13,000,000 oxpoitcd in oxcosa of 
 locoiptH by canal. Ah Montroal'H harbor Ih closed about fivo nionthw in tho year, it 
 would bo unf'uir to conipuro lior sovon monthrt' exports with tho twelve monthn of 
 other ports. Wo, thorofoio, have IhoHO approximate figuioH Hufflciently accurate for 
 illurttration of tho export of thone ports durintjf open navigation at Montreal. 
 
 Butthola, 
 
 Montreal, Hay 14,000,000 
 
 Boston T,500,000 
 
 Now York (51,000,000 
 
 Philadelphia , 20,500,000 
 
 Baltimore 37,000,000 
 
 143,000,000 
 
 Tho proportion of this quantity shipped from the lake ports cannot bo deter- 
 iniuod. It is evident that Montreal is not weighted by canal tolls on all such grain 
 oxportod from tho following rail ports during tho period Montreal hai-bor is open : 
 
 Busliuls. 
 
 Boston 1,500,000 
 
 Now York (excess of canal receipts) 13,000,000 
 
 Philadelphia 20,500,000 
 
 Baltimore 37,000,000 
 
 Total 18,000,000 
 
 There are, therefore, 18,000,000 bushelH which are not otVocted by canal tolls, and 
 50,000,00^ which were carried by the Erie Canal, the cost of transj)Ortation of which 
 was lessened by tho abolition of tolls. As the Gods help him who helps himself, 
 it would Hoom reasonable, before laying hucIi stress upon canal tolls, and crying out 
 for their abolition, tb t Montreal should exert herself to obtain her proportion of tho 
 major quantity oxportod, unan'tcted by canal tolls, before asking a bounty or subsidy 
 from tho general public to obtain a i)roporlion of tho minor quantity, which, it is 
 asserted, free canals will attract down Iho St. Lawrence. 
 
 67 
 
 1864.. 
 186r,.., 
 186(1 . 
 1867.. 
 186H.. 
 1869.. 
 1870.. 
 1871.. 
 1HV2.. 
 1873.. 
 
 T.I 
 
 Yd 
 
 l<^-( 
 
 Competing lioutes to the Wdlond Cani 
 
 >f 
 
 Tho increased competition to the Welland Canal, together with being hitherto 
 weighted by tho small scale of navigation, has diverted its tralUc ; that tiio decrease 
 is not due alone to tho competition of railways, is obvious, from tho following stato- 
 raont showing tho tons of property moved upon tho Welland and Krio Canals during 
 tho last twenty years. 
 
33 
 
 in 0XC0H8 of 
 tho yoar, it 
 » montliH of 
 icciiriito for 
 )al. 
 
 . 14,000,000 
 
 . 1,5\)0,000 
 
 64,000,000 
 
 20,500,000 
 
 . 3'7,000,000 
 
 143,000,000 
 
 >t bo dolor- 
 Hiich gniin 
 is opon : 
 
 Biishula. 
 
 7,500,000 
 
 13,000,000 
 
 20,500,000 
 
 37,000,000 
 
 78,000,000 
 
 .1 tolls, and 
 n of which 
 )H himHolf, 
 lyiriuf out 
 ion of tho 
 or subsidy 
 hici» it is 
 
 hithorto 
 
 ) docroase 
 
 ring stato- 
 
 la during 
 
 Statement of the tons of property moved upon the Wetland and Krie Canals from 
 
 1864 to 1883. 
 
 Ykab. 
 
 1864 
 
 1H65 
 
 186(1 
 
 1867 
 
 1868 
 
 1869 
 
 1870 
 
 1871 
 
 IHV2 
 
 1873 
 
 Totala , 
 
 Vcnrly Averago 
 
 Tons ol' I'ropeily. 
 
 W'l'llaiicl 
 Cniiiil. 
 
 1,095,649 
 
 868,078 
 
 980,178 
 
 !) 16,252 
 
 I,l35,l!:i4 
 
 1,194,760 
 
 1,274,838 
 
 1,439,060 
 
 1,263,223 
 
 1,330,629 
 
 11,498,291 
 
 1,149,829 
 
 Eric Canal. 
 
 2,535,792 
 2,523.490 
 2,896,027 
 2,920,578 
 3,346,986 
 2,845,072 
 3,083,1,32 
 3,580,922 
 3,662,660 
 3,602,636 
 
 30,897,094 
 
 3,089,709 
 
 Ykah. 
 
 1874 
 
 1875 
 
 1876 
 
 1877 
 
 1878 
 
 1879 
 
 1880 
 
 1881 
 
 1882 
 
 188.3 
 
 Totala 
 
 Veaily Avenigo 
 
 Toms of I'roperty. 
 
 Wfllaiid 
 Canal. 
 
 1,603,7!)0 
 
 1,116,418 
 
 1,097,198 
 
 1,100,849 
 
 1,079,200 
 
 907,518 
 
 862,874 
 
 760,478 
 
 608,929 
 
 827,196 
 
 9,864,410 
 
 986,441 
 
 Krit> Oaiial 
 
 3,097,122 
 2,787,226 
 2,418,422 
 3.2,^4,367 
 3,608,i;34 
 3,820,027 
 4,608,651 
 3,698,721 
 3,694,364 
 3,687,102 
 
 34,474,636 
 
 3,447,464 
 
 From tho foregoing it is apparent that during tho last docado thoro ha^ boon an 
 incroaso in tho tons of property moved upon tho Erie Canal of some three and ono- 
 iialf million tons, while upon tho Wolland Canal there has boon over one and a-half 
 million tons docroase compared with decade ending 1873. 
 
 To the Wolland Canal, taking Chicago as an initial point for all rail, there aro 
 llio following principal competitors for tho transportation of products to tho Kast : 
 
 All Rail. 
 Baltimore and Ohio Railroad. 
 Pan Handle » 
 
 Nickle riato " 
 
 Michigan Central '' 
 
 Fort Wayne and Pittsburgh Railroad. 
 Chicago and Atlantic. 
 Lake Shore and Michigan Southern. 
 Chicago Grand Trunk. 
 
 These roads are controlled by the following I*]uslern roads : 
 Haltimc 3 anl Ohio Railroad, to lUltimoro, L'hiladolphia and New Y'ork. 
 PennHylvania Railro.'id, to I'hiladolphia, New York and Ikllimore. 
 New York, Lake Krie and WoHtorn (Urio R.iilroad), to Now York and ll)ston. 
 Now York Central, to Now York ; and Boston and Albany Railroad, to Boston . 
 (iratid Trunk, to Montreal, Portland, Boston, and via International Bridge, to 
 connecting railways to the seaboard, with termini at BuITjIo 
 
 Lake and Rail. 
 
 •t BufTalo by lake, and railways therefrom : Now York Central R, R. ; Erie R.R, ; 
 Budalo, New York and Philadelphia U. li, ; Delaware and Lackawanna U.R. ; New 
 York, West Shore and Buffalo R.R., an^' Lehigh Valley Railway. 
 
34 
 
 To Midland by lake and Midland R.R. and Grand Trunk E.R. eastward, or by 
 barges from Bollovillo to Montreal. 
 
 To Collingwood by lake, and Northern and North- Western Railway to Hamilton, 
 Toronto, and eastward by lake and rail. 
 
 To Point Edward and to Sarnia by lake, and Grand Trunk Railway eastward. 
 
 Lake and Canal. 
 To Buffalo by lake, and Brio Canal eastward. 
 
 Freight rates on routes competing with the Wetland Canal. 
 
 The following statement, of the average yearly freight rates upon a bushel of 
 wheat to New York, by those throe methods of shipment from Chicago, all rail or 
 via Buffalo, lake and rail and lako and canal, shows the groat decrease in cost of 
 transportation in the annual average of the last ton years over tho previous ten 
 years. 
 
 Average rate of freight upon a bushel of wheat from Chicago to New York, from 1864 
 to 1883, by Lake and Erie Canal; bij Lake and Rail from Buffalo; by All Rail, 
 and average for two decades. 
 
 Year. 
 
 1864 
 
 1865 
 
 1866 
 
 1867 
 
 1868 ... 
 
 1869 
 
 1870 
 
 1871 „. 
 
 1872. 
 
 1873 
 
 Av'ge for decade 
 
 Lake 
 
 Lake 
 
 
 and 
 
 and 
 
 All-Rail. 
 
 Canal. 
 
 Rail. 
 
 
 cts. 
 
 cts. 
 
 eta. 
 
 28-36 
 
 
 52-20 
 
 26-62 
 
 
 60-68 
 
 30-36 
 
 
 46-37 
 
 22-36 
 
 ■*• >■*■* 
 
 42-00 
 
 22 79 
 
 29 00 
 
 37-50 
 
 23-12 
 
 25-60 
 
 33-15 
 
 17-10 
 
 22-60 
 
 30-37 
 
 20-24 
 
 25-25 
 
 30-76 
 
 24-25 
 
 28-70 
 
 31-12 
 
 20-19 
 
 27-00 
 
 29-90 
 
 23-64 
 
 26-32 
 
 38-29 
 
 Ykar. 
 
 Lako 
 
 and 
 
 Canal. 
 
 Lake 
 and 
 Rail. 
 
 cts. 
 17-00 
 14-60 
 
 9-86 
 13-29 
 10-17 
 12-54 
 14-64 
 10*86 
 11-67 
 12-10 
 
 1871 
 
 1875 
 
 187G 
 
 1877 
 
 cts. 
 
 14-14 
 
 11-43 
 
 9-83 
 
 10-96 
 
 9-16 
 
 11-68 
 
 12-22 
 
 8-28 
 
 7-94 
 
 8-30 
 
 1878 
 
 1879 
 
 1880 _ 
 
 1881 
 
 1882 
 
 1883 
 
 
 Av'ge fordecadc 
 
 10-39 
 
 12-66 
 
 All-Rail. 
 
 cts. 
 27-00 
 23-66 
 12.00 
 19-80 
 16-36 
 16-50 
 19-80 
 12-40 
 15-00 
 16-60 
 
 17-80 
 
 The following statement gives tho average monthly freight rates from Chicago 
 to Now York, from 1869, tho date when railways commenced carrying grain all-rail 
 from Chicago. To tho lako and canal rates must bo added the intermediary charges 
 at Buffalo and the lako insurance on the property, both of which is saved by shippini- 
 all-rail. Tho through rate, lake and rail, covers intermediary charges at Buffalo. 
 
35 
 
 a bushel of 
 3, all rail or 
 30 in cost of 
 previous ten 
 
 lO 
 
 
 i 
 
 All-Rail. 
 
 1. 
 
 
 3. 
 
 cts. 
 
 30 
 
 27-00 
 
 SO 
 
 23-66 
 
 36 
 
 12.00 
 
 29 
 
 19 80 
 
 17 
 
 15-36 
 
 54 
 
 16-50 
 
 64 
 
 19-80 
 
 36 
 
 12-40 
 
 57 
 
 15-00 
 
 10 
 66 
 
 16 ■60 
 
 17-80 
 
 om Chicago 
 ;rain all-rail 
 
 Average monthly freight charges per bushel on wheat from Chicago to New York by water 
 (lakes, Erie Canal, and Hudson River'), by lake and rail (lake to Buffalo and 
 thence rail to New York), and by all-rail, 1860 to 1883. 
 
 
 YEAR. 
 
 Month. 
 
 1869. 
 
 1870. 
 
 1871. 
 
 
 1872. 
 
 1873. 
 
 3- 
 cts. 
 
 
 ■3 
 < 
 
 1 
 
 03 
 
 < 
 
 
 '3 
 < 
 
 cts. 
 
 42 
 42 
 36 
 30 
 27 
 27 
 27 
 27 
 30 
 36 
 39 
 39 
 
 <1 
 
 
 1 
 
 < 
 
 1 
 
 m 
 
 < 
 
 cts 
 
 ■3 
 < 
 
 _ 1» 
 ^ ■«-» 
 
 J3 
 cts. 
 
 P- J 
 
 January 
 
 cts. 
 
 cts. 
 
 42 
 39 
 30 
 30 
 30 
 27 
 27 
 30 
 39 
 39 
 42 
 42 
 
 cts. 
 
 cts. 
 
 cts. 
 
 cts. 
 
 cts. 
 
 39 
 39 
 30 
 27 
 27 
 24 
 27 
 30 
 33 
 39 
 39 
 39 
 
 cts. 
 
 Cts. 
 
 39 
 39 
 36 
 30 
 27 
 27 
 27 
 27 
 33 
 39 
 39 
 39 
 
 Cts. 
 
 cts. 
 39 
 
 February 
 
 Mflrcli 
 
 
 
 25 
 25 
 23 
 20 
 22 
 27 
 36 
 
 "i'e' 
 
 16 
 16 
 15 
 15 
 21 
 20 
 
 "22' 
 20 
 21 
 20 
 20 
 23 
 25 
 29 
 
 "le' 
 
 16 
 16 
 18 
 23 
 27 
 25 
 
 "22' 
 21 
 21 
 22 
 21 
 28 
 32 
 32 
 
 
 
 
 39 
 39 
 
 
 "is' 
 
 21 
 23 
 22 
 27 
 81 
 28 
 
 "'"25 
 
 23 
 23 
 23 
 32 
 37 
 38 
 
 36 
 
 May 
 
 19 
 21 
 18 
 19 
 22 
 29 
 32 
 
 19 
 18 
 17 
 17 
 25 
 21 
 20 
 
 25 
 22 
 22 
 21 
 30 
 28 
 26 
 
 31 
 
 June 
 
 July 
 
 27 
 27 
 
 
 27 
 
 September . ... 
 
 31 
 33 
 
 November 
 
 December...... 
 
 36 
 
 
 
 
 
 
 
 1874. 
 
 
 1875. 
 
 1876. 
 
 27 
 27 
 24 
 22 
 12 
 12 
 12 
 12 
 12 
 12 
 12 
 14-4 
 
 1877. 
 
 1878. 
 
 January 
 
 February 
 
 
 
 
 
 36 
 33 
 33 
 27 
 27 
 27 
 27 
 27 
 27 
 27 
 27 
 27 
 
 "13" 
 10 
 10 
 11 
 9 
 11 
 13 
 
 14 
 12 
 12 
 12 
 12 
 14 
 20 
 19 
 
 24 
 24 
 24 
 24 
 24 
 24 
 24 
 24 
 24 
 23 
 24 
 28 
 
 """16" 
 9 
 8 
 8 
 9 
 12 
 13 
 
 1.1 
 U 
 11 
 10 
 
 11 
 
 13 
 15 
 
 ""5-8 
 6 
 
 6-5 
 
 7-2 
 
 7-7 
 
 10-9 
 
 10'2 
 
 14-4 
 
 14 
 
 13-6 
 
 14-1 
 
 15-5 
 
 17-9 
 
 18-2 
 
 18-7 
 
 21 
 
 21 
 
 21 
 
 18-2 
 
 18 
 
 18 
 
 18 
 
 18 
 
 20-6 
 
 22-4 
 
 24 
 
 24 
 
 ""9-3 
 8-9 
 7-7 
 6-8 
 9-6 
 
 13-5 
 
 13 
 
 12-4 
 
 11-8 
 
 10-5 
 
 93 
 
 8-4 
 
 9-4 
 
 13-4 
 
 14-4 
 
 14 
 
 24 
 24 
 20-1 
 
 April 
 
 May 
 
 June ■ 
 
 '"'le' 
 
 16 
 13 
 
 11 
 
 12 
 13 
 13 
 
 "26" 
 18 
 17 
 16 
 17 
 16 
 17 
 
 15 
 
 13-6 
 
 12 
 
 July 
 
 12 
 
 August 
 
 tiepteraber 
 
 October 
 
 15-8 
 
 18 
 
 18 
 
 November 
 
 December 
 
 18-6 
 21 
 
 
 
 1879. 
 
 
 1880. 
 
 1881. 
 
 
 1882. 
 
 
 1883. 
 
 January 
 
 
 
 21 
 
 21 
 
 19 
 
 12 
 
 12 
 
 10-6 
 
 12 
 
 15-2 
 
 18 
 
 19-7 
 
 23 
 
 24 
 
 "12-4 
 11-8 
 14-6 
 11-8 
 12-3 
 11-3 
 14-6 
 16-5 
 
 17-5 
 
 16-3 
 
 16-6 
 
 15 
 
 14-8 
 
 13-7 
 
 15-2 
 
 16-7 
 
 24 
 
 24 
 
 ?A 
 
 19-3 
 
 18 
 
 18 
 
 18 
 
 18 
 
 18 
 
 18 
 
 18-9 
 
 21 
 
 
 
 
 21 
 21 
 21 
 
 17-3 
 18 
 
 13-4 
 10-5 
 105 
 10-4 
 8-7 
 12 
 10-3 
 
 
 .... . 
 
 12 
 
 12 
 
 13-5 
 
 15 
 
 15 
 
 15 
 
 16 
 
 15 
 
 16 
 
 15 
 
 16 
 
 18 
 
 
 
 18 
 
 February 
 
 March 
 
 
 
 
 "8-3 
 7-4 
 7-2 
 91 
 11-3 
 10-2 
 9-7 
 
 11-9 
 11-6 
 10-9 
 10-7 
 11-9 
 12-9 
 11-7 
 11-8 
 
 18 
 
 Ti'-'e 
 
 9-4 
 7-7 
 7-3 
 8-7 
 8-3 
 8-5 
 
 "is" 
 12-3 
 94 
 
 8-6 
 9-2 
 9-1 
 9-9 
 
 
 
 18 
 
 April 
 
 May 
 
 
 
 9 
 
 81 
 7-8 
 7-3 
 8-5 
 8-8 
 10-4 
 10-2 
 
 12-1 
 
 11-3 
 
 10-9 
 
 10-1 
 
 10'6 
 
 10-6 
 
 11 
 
 11-4 
 
 10-9 
 
 16-7 
 
 8-1 
 7-4 
 9-1 
 
 12-5 
 
 15 
 
 18-6 
 
 20-5 
 
 11 9 
 10-6 
 8-7 
 11-5 
 13-7 
 16-4 
 19-4 
 
 15 
 
 Juue 
 
 15 
 
 July 
 
 1ft 
 
 August 
 
 September .... 
 
 October 
 
 November 
 
 December 
 
 16 
 
 15 
 
 16 
 
 15-fl 
 
 18 
 
 
 
 
 
 
 
 Competition of Railways with Erie Canal, 
 As the effect upon the traffic of artificial waterways from the competition of rail- 
 ways is now prominently discussed, statistics of the comparative movement upon the 
 Now York State canals and the railroads which are more directly competing are 
 
36 
 
 cited, from which it is affirmed that the groat increase in tons of property moved 
 upon the latter prove that all waterways will bo supplanted by railways. If wo 
 take tha following comparative statement, we find there has been in the last docado, 
 in which there has boon a most severe railway competition — two railway wars, when 
 they were carrying below cost — that the Brie Canal has increased its trafSo. Because, 
 if on the New ^ork Central the tons of property moved have increased in the last 
 decade to such a large extent, it is not a justifiable inference that the days of the 
 canal are numbered. With some six railways in opposition to the Erie Canal, it is 
 remarkable that a purely artificial waterway of small capacity, restricted water 
 supply, and numerous other disadvantages, has sustained its traffic in the manner it 
 has done. The Railway Commisyionors of the State of Now York, in their annual 
 report, say they have dJHCOverod a practice upon the part of a few railways which, if 
 allowed to become general, threatens to destroy all competition by the water routes. 
 That these railways have made a form of contract for yearly shipments, with 30 to 
 50 per cent, reduction from the traffic rales, on the express condition that no goods 
 should be shipped by canal during the season of navigation. That a shipper by the 
 canal, who owned canal boats and store houses upon the canal, was obliged to pay a 
 largo advance over his competitors in the same business, because he could not con- 
 tract to ship by railway. Legislation is proposed to prevent these discriminations, 
 which are also operative on our own canals. 
 
 Statement showing the movement of property upon the Erie Canal and New York Central 
 Railway, with average freight charges per ton-mile. 
 
 Ykar. 
 
 1864 
 
 1866 
 
 1806 
 
 1867 
 
 1868 
 
 1869 
 
 1870 
 
 1871.. 
 
 1872 
 
 1873 
 
 Average for decade 
 
 1874 
 
 1876 
 
 1876 
 
 1877 
 
 1878 
 
 1879 
 
 1880 
 
 1881 
 
 1882 
 
 1883 
 
 Average for decade. 
 
 Erie Canal. 
 Tons. 
 
 2,536,792 
 2,523,490 
 2,896,027 
 2,920,678 
 3,346,986 
 2,845,072 
 3,083,132 
 3,580,922 
 3,562,560 
 3,602,635 
 
 3,089,709 
 
 3,097,122 
 2,787,226 
 2,418,422 
 3,254,367 
 3,608,634 
 3,820,027 
 4,608,651 
 3,598,721 
 3,694,361 
 3,587,102 
 
 3,447,464 
 
 N. Y. Central 
 Railway 
 
 Tons. 
 
 1,557,148 
 1,275,299 
 1,602,197 
 1,667,926 
 1,846,599 
 2,281,885 
 4,122,000 
 4,532,056 
 4,393,965 
 5,622,724 
 
 2,880,180 
 
 6,114,678 
 
 6 001,954 
 
 6,803,680 
 
 6,351,356 
 
 7,695,413 
 
 9,015,753 
 
 10,533,038 
 
 11,591,379 
 
 11,330,393 
 
 10,892,440 
 
 8,630,008 
 
 Freioiit. 
 
 Average 
 per ton-mile. 
 
 Canals. 
 
 Cts. 
 1-15 
 
 rio 
 
 1-00 
 •90 
 •88 
 •92 
 •83 
 1-02 
 1-02 
 •88 
 
 •97 
 
 •73 
 •66 
 •68 
 •57 
 •42 
 •46 
 •49 
 •38 
 •42 
 Not given. 
 
 •53 
 
 Average 
 per ton-mile. 
 
 Railwaj'8. 
 
 Cts. 
 2^75 
 3-31 
 2^92 
 2-53 
 2-59 
 2-20 
 1^86 
 165 
 1^69 
 1-57 
 
 2^3l 
 
 1^47 
 1^27 
 
 ro5 
 
 r02 
 •91 
 •80 
 •88 
 •77 
 •74 
 •91 
 
 •98 
 
37 
 
 Tho foregoing shows the doorcase in the coat of transportation, both by water 
 and by rail. It is reasonable to suppose that tho increase in tonnage by tho rail- 
 ways is not owing to the failure of waterways in economy of transport, but rathor> 
 as the country becomes more populated and wealthy, that those articles which can 
 boar the increased cost of transportation by rail, augment in quantity, that those 
 products which can be handled more expeditiously, and at less expense, when time, 
 terminal facilities, and other reasons are taken in consideration, have gravitated to 
 railways. Besides, tho canal cannot increase its business, except to the towns along its 
 lino or direct trade between its terminal points.- Whatever conclusions may be drawn 
 from statistics with regard to tho Erie Canal and competing railways, those arc in 
 no manner applicable to the Welland Canal, connecting largo bodies of water, above 
 which floats a magnificent marine, which is constantly being augmented, notwith- 
 standing it is stated that railways have supplanted tho watorw.ays. 
 
 In the shipments ofwho.it and corn received by lako from tho elevators at 
 Buffalo, tho competition of railways to tho canal is shown in tho following table : 
 
 (S/i'i>ffifinfs of loheat and corn, received by Lake at Buffalo, hy Erie Canal, and by Rail from 
 
 elevators. 
 
 Ybar. 
 
 By Canal. 
 
 By Rail. 
 
 Total. 
 
 1872 
 
 Bush. 
 
 41,935,675 
 46,337,141 
 38,090,889 
 32,927,260 
 25,297,381 
 38,618,627 
 
 Bush. 
 
 6,472,710 
 
 8,455,006 
 
 9,867,382 
 
 12,632,110 
 
 12,566,651 
 
 13,177,382 
 
 Bush. 
 
 47,408,385 
 64,792,147 
 47,958,271 
 45,559,370 
 37,864,032 
 61,796,009 
 
 1873 
 
 1874 
 
 1876 
 
 1876 
 
 1877 
 
 
 Total. 6 veara 
 
 223,206,973 
 37,201,162 
 
 62,171,241 
 n,361,873 
 
 285,378,214 
 47,563,036 
 
 
 
 1878 
 
 51,502,264 
 51,214,891 
 70,287,134 
 29,211,688 
 28,124,811 
 36,296,276 
 
 18,474,089 
 15,944,136 
 29,319,376 
 20,128,767 
 12,200,851 
 15,296,529 
 
 111,363,748 
 
 69,976,363 
 67,159,027 
 99,606,510 
 49,310.455 
 
 1879 
 
 1880 
 
 1881 
 
 1882 
 
 1883 
 
 40,325,664 
 51,592,805 
 
 
 Total, 6 years 
 
 266,637,064 
 
 378,000,814 
 
 Vparlv iivprRt?ti • 
 
 44,439,510 
 
 18,560,624 
 
 63,000,133 
 
 
 From the foregoing, it appears, for tho six years ending 1877, the percentage 
 shipped by canal was 78'3 and by rail 21*7; for tho six years ending 1883, by canal 
 70*20 per cent., and by rail 29.80. Showing that during tho last six years the rail 
 shipments have increased. 
 
 By comparing these figures with those given previously, of lako and i-aii ship- 
 ments from Chicago, tho (sanal from Buffalo has carried as largo a percentage as 
 shipped by water from the former port. 
 4 
 
38 
 
 To compote against lake and canal vid BuOfalo, the railway companies have found 
 it nocossary to transport by water from western ports to Buffalo. They have their own 
 olevatorg, and either own or control propeller linos which run, in connection with the 
 railway, between lake ports and Buffalo. The New York Central Railway has twelve, 
 propellers, which can, in the aggregate, transport 29,205 tons of cargo. The Brio 
 Eailroad has a fleet of fifteen steamers and two schooners, with an aggregate carry- 
 ing capacity of 24,225 tons. The Lehigh Valley Railroad has a line of six pro- 
 pellers of 10,000 tons carrying capacity, running in connection with it. The Penn- 
 sylvania Railroad owns the Anchor Line of steamers, numbering seventeen, also two 
 schooners, with an aggregate carrying capacity of some 20,000 tons. 
 
 Wo thus have some fifty-four steamers, and schooners of an aggregate carrying 
 capacity of 93,430 tons, owned or controlled by railway companies and run in con- 
 nection with their linos. 
 
 TRANSPOnTATION OF GRAIN (ALL WATEll) TO THE SEABOARD. 
 
 Grain afloat upon the upper lakes may be forwarded in the following manners : — 
 
 To BuflTalo, in large propellers, in propellers towing one or more consorts, in 
 largo sailing vessels, the greater portion of this tonnage would be unable to pass 
 through the WoUand Canal with the present depth of navigation. 
 
 To Oswego, Ogdensburg and other American ports on the south shore of Lake 
 Ontario and the St. Lawrence, in small vessels chiefly, or larger ones requiring to be 
 lightened at the Welland Canal. 
 
 To Kingston by a similar class of vessel as to Oivvego. This business is dono in 
 American bottoms, there being no return freight for Canadian vessels. Tho Ameri- 
 can vessel, after discharging her cargo at Kingston, goes to Oswego or Charlotte, and 
 obtains a return cargo of coal at as high rates as the down freights. 
 
 To Montreal in small propellers of the capacity of the St. Lawrence canals, 
 lighting a part of their cargo at Kingston. It is said one of these vessels was lately 
 chartered to carry corn from Chicago to Montreal for 5 cents per bushel. While the 
 large propeller of tho upper lakes might pay at ibis rate, if enabled to roach Montreal, 
 it would appear impossible for the small ones to pay running expenses. In a petition 
 in 1880 to the late Governor General by merchants, ship owners and others, for the 
 alleviation of canal tolls, taxes, duos, &c., the cost of moving a bushel of grain from 
 Chicago to Montreal is stated to bo about 10 cents, in small propellers. Since the 
 enlargement of the Welland Canal, Canadian propellers have been enlarged, and 
 several built adapted to the present length of the St. Lawrence locks, but ultimately 
 intended to be lengthened when tho enlargement of tho St. Lawrence canals is com- 
 plotod. A propeller of this class now navigating the canals has a carrying capacity of 
 40,000 bushels of wheat, drawing 14 feet of water, required to lighten up 2 foot to pass 
 the Welland Canal, and if descending the St. Lawronco to lighten again at Kingston. 
 
 The advantages posseesod by Buffalo to prevent her trade from reaching Lake 
 Ontario or the river St. Lawrence, aro numerous. Tlioro is the large vessel, which is 
 able to ply between it and western ports, which, descending to Lake Ontario, is sub- 
 
39 
 
 vo found 
 loir own 
 with tho 
 18 twoivc 
 'ho Brio 
 8 carry- 
 ' six pro- 
 10 Penn- 
 also two 
 
 carrying 
 in con- 
 
 innoi'B : — 
 nsortfi, in 
 lo to pass 
 
 of Lako 
 ring to be 
 
 is done in 
 ko Ameri- 
 •lotto, and 
 
 ICO canals, 
 vas lately 
 While the 
 Montreal, 
 a petition 
 rs, for the 
 rain from 
 Since tho 
 irgod, and 
 ultimately 
 Is is com- 
 apacity of 
 bet to pass 
 Kingston, 
 hing Lako 
 , which is 
 io, is sub- 
 
 ;; 
 
 jected to detention and heavy charges for lightening. This phase of the transporta- 
 tion question has boon previously fully treated. Another important advantage is 
 the facility for discharging and loading vessels with quicknoas and dispatch. There 
 are thirty-eight elevators, comprising storage, transfer and floating elevators, with a 
 combined storage capacity of 9,000,000 bushels, and a daily transfer capacity of 
 3,000,000 bushels. Tho total cost of this property was somo $7,500,000, The 
 principal return cargoes are coal. Five railways, terminating at Buffalo for lake ship- 
 ments, run into the anthracite coal region, and throe into the bituminous. 
 
 These roads have provided adequate terminal facilities. They have constructed 
 numerous canals and docks, admitting vessels of 16 feet draught of water, also 6 
 puckoL-lresiloB, with 224 pockets, holding 20,100 tons, and a capacity for delivering 
 into vessels over 1,500,000 tons of coal daring tho season. Those facilities are being 
 increased ; it is stated that tho improvements contemplated will enable, in a fow 
 years, 5,000,000 tons being shipped annually. 
 
 To practically illustrate the celerity in discharging and loading vessels, I find, by 
 referring to the shipping columns of a Buffalo commercial paper, that a propeller 
 towing throe consort8,with combined cargoes of 265,000 bushels of corn, entered port 
 on 6th June, and cleared on the 8th June with 7,300 tons of coal. That at the Lacka- 
 wana shutes, the propeller " D. C. Whitney " was loaded with 1,800 tons of coal in 
 two and one-half hours. 
 
 Vessels at Buffalo aro always assured of a return cargo. Tho following state- 
 ment shows the shipments westward, by lako from Buffalo, of heavy articles, during 
 the last five years. 
 
 Coal Tons. 
 
 Cement Brls. 
 
 Railroad iron Tons 
 
 Salt do 
 
 Salt Brls. 
 
 1879. 
 
 680,646 
 
 103,858 
 
 626 
 
 26,372 
 
 222,778 
 
 1880. 
 
 689,670 
 
 141,126 
 
 35,941 
 
 17,725 
 
 226,982 
 
 1881. 
 
 826,240 
 
 170,410 
 
 44,462 
 
 11,955 
 
 109,810 
 
 1882. 
 
 1,011,098 
 
 170,085 
 
 12,345 
 
 12,342 
 
 106,667 
 
 1883. 
 
 1,248,778 
 
 227,604 
 
 64,903 
 
 11,524 
 
 109,258 
 
 Throe of the principal inducements for lake vessels to prefer freight to Buffalo 
 rathor than Lako Ontario ports have been enumerated ; but there are many other 
 reasons, apart from tho question of transportation— questions of trade and commerce, 
 political relations — which might bo cited. The wealth, enterprise and dotormination 
 of Now York City not to let tho trade of the West slip from her grasp, tho railway 
 companies, which have expended so much capital in Buffalo in real estate and termi- 
 nal facilities (the real estate owned by railway companies is valued by the city 
 assessors at $15,000,000) will make every effort to retain tho trade; they own their 
 own steamship linos, and the West must be supplied with coal. It may, therefore > 
 bo said that ovory ton of coal shipped westward returns a ton of grain to Buffalo. 
 
 These remarks with reference to Buffalo aro made, because, notwithstanding tho 
 enlargement of tho WoUand Canal, it fltill remains the foot of lako navigation for 
 4h 
 
40 
 
 large vessels, which it is necessary to extend first to Kingston, by deepening the 
 Wolland Canal, and afterwards to Montreal, by the completion of the enlarged St. 
 Lawrence canals, or there will bo little prospect of diverting trade from Buffalo, 
 which has so many advantages in its favor without this additional tax on large vessels 
 sailing down to Lake Ontario. 
 
 The following statement shows that the lake commerce and tonnage entering 
 and clearing from the district of Buffalo Creek is much greater than the sea-going 
 vessels of the Harbor of Montreal. That, during the last ten years, the annual 
 average number and aggregate tonnage of lake vessels arriving and departing from 
 Buffalo Creek were, in number, 7,438, and aggregate tonnage 4,165,098 tons, and the 
 average size craft 560 tons; that the average number of seagoing vessels arriving 
 and departing for Montreal was 1,241, and the aggregate tonnage 972,195, which 
 would give an average tonnage to each vessel of, say, 784 tons : 
 
 Statement of the Number of Lake Vessels, and Aggregate Tonnage entered and cleared at 
 Buffalo, and the Number and Aggregate Tonnnge of Sea-going Vessels entered and 
 cleared at Montreal, from 1874 to 1883. 
 
 Year. 
 
 Buffalo. 
 
 Montreal. 
 
 Number of 
 Vessels. 
 
 Tonnage. 
 
 Number of 
 Vessels. 
 
 1,462 
 1,284 
 1,204 
 1,026 
 1,032 
 1,224 
 1,420 
 1,138 
 1,296 
 1,320 
 
 12,406 
 
 Tonnnge. 
 
 1874 
 
 7,447 
 6,278 
 4,624 
 6,785 
 8,743 
 8,447 
 10,308 
 6,745 
 7,333 
 7,677 
 
 3,641,019 
 3,259,839 
 2,757,986 
 3,539,219 
 4,668,688 
 4,442,717 
 5,995,747 
 4,535,223 
 4,405,003 
 4,405,513 
 
 846 846 
 
 1876 
 
 772,224 
 
 1876 
 
 782.360 
 
 1877 
 
 753,718 
 794,532 
 1,013,938 
 1,256,542 
 1,063,858 
 1,109,384 
 1,328,526 
 
 1878 
 
 1879 
 
 1880 
 
 1881 
 
 1882 
 
 1883 
 
 Total 
 
 74,387 
 
 41,650,984 
 
 9,721,928 
 
 Annual average 
 
 7,438 
 
 4,165,098 
 
 1,241 
 
 972,193 
 
 The column of the foregoing table giving the arrivals and dopartuic 
 vessels is taken from the report of the Montreal Board of Trade, in which 
 1 are noted ; as few sea-going vessels winter at Montreal, the arrivals ar 
 the purpose of comparison. 
 
 I find, taking an annual average of the same five years, there were 
 and barges, with an aggregate tonnage of 884,645 tons, of inland era 
 Montreal. During the same period there wore 9,172 canal boats cleared fj 
 they might bo assumed to average 100 tons register each, which would 
 i tons. 
 
 Take the following statement, to still further illustrate the mag 
 j commerce of Buffalo, and what wo might hope to approach in the futu 
 
 of sea-going 
 
 the arrivals 
 
 9 doubled for 
 
 5,010 vessels 
 ["t arrived at 
 rom Buffalo ; 
 give 917,200 
 
 nitude of tbo 
 re, when the 
 
■P 
 
 41 
 
 enlarged Hystom of navigation is corapleLod, and Montreal the foot of inland naviga- 
 tion ; when the north Hhoros of Lakes Huron and Superior are developed ; when the 
 North-West is populated and shipping its surplus products eastward by this magnifi- 
 cent waterway, and when there is free commercial intercourse with the United 
 
 States. 
 
 Statement of Number of Vessels and Aggregate Tonnage in the Foreign Trade, entered 
 and cleared in the year ending 30th June, 1882, from the Meports of Commerce and 
 Navigation, United States and Canada, at five Atlantic Ports, and total number and 
 tonnage of Foreign and Coastwise at Buffalo during the season of Navigation, 1882. 
 
 Porta. 
 
 Number. 
 
 663 
 1,771 
 2,469 
 5,968 
 7,333 
 12,705 
 
 A KKrcgate 
 Tonnage. 
 
 Montreal 
 
 815,756 
 1,655,202 
 2,025,124 
 2,721,400 
 4,405,003 
 14.624,017 
 
 Baltimore !!!',',.„.!!! '.'.',. 
 
 Philadelphia !...!!!!!!!,"!!.".,.!!!!!! 
 
 Boston 
 
 Bufralo ■". ". 
 
 Kew York 
 
 
 Average 
 Tonnage. 
 
 1,230 
 935 
 822 
 473 
 614 
 
 1,151 
 
 The foregoing table shows that tlio shipping of Buifalo is greater than the foreign 
 commerce of any of the Atlantic ports except New York. 
 
 FRElaHT RATES AND COST OF TRANSPORT (ALL WATER). 
 
 At present economic transportation is, by the rival water routes, by lake vessolf , 
 canal boat and barge. Small propellers running direct from western ports to Mon- 
 treal it is not necessary to consider. 
 
 To avoid confusion one product will be taken— wheat. 
 
 The following statement is given to illustrate the advantages or disadvanta^-es 
 of the St. Lawrence route for a number of years, through the actual freight charges. 
 It embraces two decades, ending respectively in 1873 and 1883. The second decade 
 may bo termed the era of reduced cost of transport, both by rail and lake vessel. It 
 is during this series of years that exports of wheat and corn have been decreasing 
 from Montreal in comparison with other Atlantic ports. 
 
42 
 
 Statement of Freight and Tolls upon a Bushel of Wheat from Chicaqo to Bujfdlo (Lake 
 and Erie Canal), and from Chicago to Montreal (Lake to Kingston, River and 
 Canals). 
 
 
 
 Chicago to New 
 
 York. 
 
 
 Chicago to Montreal. 
 
 
 Lake. 
 
 So 
 
 09 3 
 
 u 
 
 Oanals. 
 
 Luke 
 
 and 
 
 Canals. 
 
 Toll 
 
 Not 
 Freight. 
 
 J 
 
 11 
 
 .Sfo 
 «H 
 
 Cts. 
 
 22-15 
 20-41 
 24-15 
 16-15 
 16-58 
 16-91 
 14 00 
 17-14 
 21-15 
 17-09 
 
 Lake 
 
 and 
 
 Oaoal. 
 
 o§ 
 
 oS) 
 
 beo 
 
 3 
 t) 
 
 cts. 
 
 15-37 
 14-92 
 19-58 
 10-87 
 11-65 
 11-32 
 10-25 
 12-35 
 14-79 
 14-20 
 
 13-53 
 
 7-57 
 6-67 
 6-01 
 7-21 
 713 
 7-69 
 8-59 
 7 25 
 5-37 
 6-06 
 
 River 
 
 and 
 
 Canals. 
 
 si 
 
 2§ 
 
 al 
 
 a 
 
 Lakc^ 
 
 and 
 
 Canals. 
 
 Toll. 
 
 Net 
 Freight 
 
 Years. 
 
 si 
 
 o 
 
 2 
 
 o 
 
 is- 
 
 Cts. 
 
 6-21 
 6-21 
 6-21 
 6-21 
 6-21 
 6-21 
 3-10 
 3-10 
 3-10 
 3-10 
 
 4-96 
 
 o"* 
 
 fs 
 
 oS o 
 
 ja 
 o 
 
 cts. 
 
 19-87 
 18-92 
 24-58 
 14-87 
 16-85 
 15 •65 
 14-46 
 16-56 
 19-04 
 18-20 
 
 17-79 
 
 11-07 
 
 1001 
 
 9-26 
 
 10-46 
 
 10-13 
 
 10 69 
 
 11-09 
 
 9-26 
 
 7-37 
 
 8-81 
 
 M <-> 
 
 a) a 
 
 "o 
 H 
 
 •a 
 
 1864 
 
 cts. 
 
 9-58 
 9-78 
 
 13-40 
 6-67 
 7-14 
 G-81 
 6-88 
 7-62 
 
 11-15 
 7-62 
 
 cts. 
 
 18-78 
 16-84 
 16-96 
 15-69 
 16-66 
 16-31 
 11-22 
 12-62 
 13-10 
 11-67 
 
 14-87 
 
 cts. 
 
 28-36 
 26-62 
 30-36 
 22-36 
 22-79 
 23-12 
 17-10 
 20-24 
 24-26 
 20-19 
 
 23-45 
 
 14-14 
 
 11-43 
 
 9-83 
 
 10 96 
 
 9-16 
 
 11-68 
 
 12-22 
 
 8-28 
 
 7-94 
 
 8-30 
 
 cts. 
 
 4-50 
 4-00 
 5-00 
 4-00 
 4-25 
 4-26 
 4-25 
 4-26 
 4-25 
 4-00 
 
 cts. 
 
 0-60 
 0-60 
 0-60 
 0-60 
 0-60 
 0-60 
 0-60 
 0-60 
 0-60 
 0-60 
 
 cts. 
 19-27 
 
 1866 
 
 18'32 
 
 1866 
 
 23-90 
 
 1867 
 
 14-27 
 
 1868 
 
 15-25 
 
 1869 
 
 14-96 
 
 1870 
 
 13-85 
 
 1871 
 
 15-95 
 
 1872 
 
 18-44 
 
 1873 
 
 17-60 
 
 
 
 Average 
 Decade .. 
 
 8-66 
 
 4-03 
 3-42 
 311 
 3-67 
 3-17 
 4-72 
 5-64 
 3-40 
 2-57 
 3-40 
 
 3-70 
 
 18-67 
 
 4-27 
 
 0-60 
 
 0-60 
 0-60 
 0-60 
 0-60 
 0-60 
 0-60 
 0-60 
 0-60 
 0-60 
 0-60 
 
 0-60 
 
 1718 
 
 1874 
 
 1011 
 801 
 6-72 
 7-39 
 5-99 
 6-96 
 6-58 
 4-88 
 5-37 
 4-90 
 
 6-69 
 
 3-10 
 2-07 
 2-07 
 1-03 
 1-03 
 1-03 
 1-03 
 1-03 
 1-03 
 0-00 
 
 1-34 
 
 11-04 
 9-36 
 7-76 
 9-93 
 8-13 
 10 65 
 11-19 
 7-25 
 6-91 
 8-30 
 
 3-50 
 3-25 
 3-25 
 3-26 
 3-00 
 3-00 
 2-50 
 2-00 
 2-00 
 2-76 
 
 10-47 
 
 1876 
 
 9-41 
 
 1876 
 
 8-66 
 
 1877 .« 
 
 1878 
 
 1879 
 
 9-86 
 
 9-63 
 
 10-09 
 
 1880 
 
 1881 
 
 10-40 
 8-65 
 
 1882 
 
 6 77 
 
 1883 
 
 8-21 
 
 Average ... 
 
 10-34 
 
 9-05 
 
 6-96 
 
 2-85 
 
 9-81 
 
 9-20 
 
 It would appear from the above Ibnt the average auDual freight upon a buubel 
 of wheat for these decades was : 
 For decade ending 1873 : — 
 
 Per Bushel. 
 Cts. 
 Chicago to New York 23-54 
 
 Chicago to Montreal 17''79 
 
 Balance in favor of Montreal 5**75 
 
 Average toll (Erie Canal) 4'96 
 
 Average toll (St. Lawrence route) 0"60 
 
 Chicago to New York, deducting toll 18*68 
 
 Chicago to Montreal, deducting toll 17*19 
 
 As will be perceived, Montreal had, during this decade, the great advantage of 
 nearly 5 cents toll on the Erie Canal ; nor did this heavy toll, which had con- 
 
_jj rn 
 
 cts. 
 
 19-27 
 18*32 
 23-90 
 14-27 
 15-25 
 14-95 
 13-85 
 15-95 
 18-44 
 17-60 
 
 1718 
 
 10-47 
 <.)-41 
 8-6*5 
 9-86 
 9-63 
 10-09 
 10-40 
 8-65 
 6 77 
 8-21 
 
 9-20 
 
 17-79 
 
 5-75 
 
 4-96 
 
 0-60 
 
 18-58 
 
 17-19 
 
 43 
 
 tinuod for yoai-H boforo, o.stabliHh a trade down tho St. Lawronco, which the 
 
 abolition of G iniilH loll on our own canals is suppoHod to offoct. If wo impoHO this 
 
 toll upon tho Krio Canal and roliovo tho St. Lawronco route from it, can it bo poHHiblo 
 
 this action would olFoct a revolution in tho channels of trade which 5 cents in tho 
 
 first decade, and 1-31 cents in tho second, failed to accomplish ? 
 
 For tho decade ending 1883, freights wero: — 
 
 Per Bushel. 
 Oti. 
 Chicago to New York 10 34 
 
 Chicago to Montreal 981 
 
 In favor of Montreal 0-53 
 
 Average toll (Erie Canal) 1-31 
 
 Average toll (St. Lawi-onco route) 0-GO 
 
 Chicago to Now York, deducting toll 9 00 
 
 Chicago to Montreal, deducting toll 9-20 
 
 In the latter decade the rates wero much lower. On tho St. Lawrence route thoy 
 foil with tho reduction of tolls upon tho Erie Canal, and reduced charges for transport 
 both on tho lakes and canal. 
 
 Upon tho Bi-ie route, in the second decade, there were reasons for the roductiona 
 of the cost of actual transport; upon the St. Lawronco route there have been none, 
 as tho cost of transport was not more expensive during tho first decade than during 
 the second, as tho character of tho transport is tho same, tho ofTect of tho enlarge- 
 ment of tho Wolland Canal being inappreciable. 
 
 Making a fctill further analysis, we have tho following table : — 
 
 Stadinunt of Average Amount of Freight Rates for two decades, on a Bushel of Wheat 
 from Chicago to Buffalo and Kingston by Lake, and from Buffalo to Neiv Ycrk, and 
 Kingston to Montreal, by canal boat or barge, per bushel, per ton, and per ton per 
 mile, with canal tolls deducted. 
 
 
 Per Bushel. 
 
 Per Ton. 
 
 Per Ton per 
 
 
 Mile. 
 
 Lake Vessel— Decade ending 1873 :— 
 
 Chicago to Buffalo 
 
 Chicacro to Kincratoa 
 
 Cents. 
 
 8-56 
 12-93 
 
 $ cts. 
 
 2 85 
 4 31 
 
 Mills. 
 
 317 
 
 3-92 
 
 
 
 Lake Vessel— Decade ending 1883 :— 
 
 3-70 
 6-36 
 
 1 23 
 
 2 12 
 
 1-37 
 
 Chicasro to Kinsrston 
 
 1-93 
 
 
 
 Canal Boat or Barge— Decade ending 1873 :— 
 
 ButFalo to New York 
 
 9-90 
 4-27 
 
 3 30 
 1 42 
 
 6-60 
 
 Kin CTS ton to Montreal 
 
 7-60 
 
 
 
 Canal Boat or Barge — Decade ending 1883 :— 
 
 Bullalo to New York 
 
 Kingston to Montreal 
 
 6-35 
 
 2-85 
 
 1 78 
 96 
 
 3-66 
 6-28 
 
 Lake and Canal— Decade ending 1873 :— 
 
 Chicacro to New York 
 
 18-67 
 
 17-18 
 
 6 16 
 
 6 70 
 
 4-39 
 
 GhicaoTo to Montreal 
 
 4-49 
 
 
 
 Lake and Canal— Decade ending 1883 :— 
 
 GliicaBTO to New York • ■#• 
 
 905 
 9-21 
 
 3 01 
 
 3 07 
 
 2-16 
 
 Chicago to Montreal 
 
 2-40 
 
44 
 
 From tho foregoing, wo find, taking, Hay, 900 miloH from Chicago to Uuflfalo, and 
 1,100 mi lo8 from Chicago to Kingston, thoro is for tho first dccado, a charge for 
 transport of ^^^ mills per ton-milo groator to Kingston than to BulTulo, and in tho 
 second decade jo'o mills greater. One reason for this extra charge was the small scale 
 of navigation increasing tho cost of transport. Taking tho canal boat and barge, we 
 have, for thn first docado, 1 mill per ton milo greater charged from Kingston to Slon- 
 troal iha i Buffalo to Now York; in tho second decade 1*72 mills per ton-milo 
 
 greater fr^ i Kingston. For this extra charge there can be no reason ; it might bo 
 asserted that tho longer distance of transport by tho Brio Canal boat, if it be nearly 
 treble, tho St. Lawrence barge has treble the capacity of a canal boat, which would 
 fully compensate for tho " longer haul." During the first decade the forwarding 
 charges from Kingston to Montreal must have boon excessive; in tho second dooade 
 they are still excessive. In any discussion of this kind, the comparison of figures can 
 only bo made ; tho canal boat may carry below cost, and tho Kingston barge have so 
 little business that these charges may, in reality, only be paying a reasonable profit. 
 The facts remain the same that the charges per ton mile from Chicago to Montreal 
 are groator than from Chicago to Now York ; that no Governmont could do more 
 than provide tho means of cheaper transportation that is now accomplished by the 
 enlarged "'"'^Uand Canal. When the freight rates per ton-milo are tho same on both 
 routes, 1 ho reduction of tolls might bo asked ; when that date arrives those asking 
 can bo i^, -d that the superior advantages of the St. Lawrence route, as to economy 
 of transport simply, without relation to q^uestions of trade, to rectify which becomes 
 a system of bounties and subsidies; that tho St. Lawrence route gives a cheaper 
 transportation per ton-milo so much bolow tho rival route that those who transport 
 through our own system can well pay tho tax necessary for its maintenance. 
 
 Numerous complaints have boon made by vessel mon on account of tho deten- 
 tions they are subjected to at Kingston. There appears to bo sufflciont barge accom- 
 modation to do a large business, but the forwarders complain that their barges are 
 often detained in Montreal, very little grain going into store ; somotimos there is a 
 considerable delay in transferring cargoes. Fogs in the river may prevent the 
 arrival of barges at Kingston at the date expected ; there being no storage capacity, 
 the lake vessel is compelled to await their arrival before her cargo can bo discharged. 
 As to the accommodation atKingston, I quote the evidence of S. Neelon, Esq., M.P.P., 
 shipowner. He states that there should bo a storage capacity of 1,000,000 bushels, 
 which is undoubtedly tho case, if there is a large business to be done; for it is 
 certain, vessel owners in the west will not accept freight at low rates to a port 
 where they may be at the loss of fifteen days demurrage. 
 
 Evidence of S. J^eelon, Esq., M.P.P., before Select Committee on Interprovincial 
 
 Trade, 1883. 
 
 Would it not be better to take the grain in barges, than to deepen the canals ? 
 
 Vessels will go from Chicago to Kingston in live or six days, and I have soon 
 them lay alongside the docks at Kingston three or four days to get a chance to 
 unload. 1 had vessels myself, which wore detained three or four days during tho 
 
 Sast year waiting to unload ; in fact, making storehouses of my vessels, because 
 Lingston people have not enterprise enough to put up elevators. 
 
46 
 
 But tho ronfion the bargos aro not at Kin/^nton, is bcoauso thoy aro kept at 
 Moiiti'oul us HtorehoiiHOH. Thoro aro more burgo« now than would curry throo timu8 
 tho grain that wont forward lunt year? 
 
 A good many pooplo in this country hick that Hoiritof ontorpriso that thoy 
 ought to have, in oruor to mako our canals attract moro uusinoHS thun passes through 
 thorn. As an instanoo of this, lot mo compare Kingston witii HutVuio. In tho 
 morning fifty or sixty vessels will go into Buffalo, and on account of tho largo 
 number of elevators thoro, tho cargoes aro all transferred in the course of tho day, 
 and in Homo instances they aro reloaded and away again, in plaoo of lying at 
 Kingston, as thoy often do, for throe or lour days, for want of elevators or storage 
 capacity, which should be there. I have sometimes boon told that the bargos would 
 be there to-morrow, and to-morrow would come, but no barge, as it hud boon (letuiiied by 
 tho fog ; but many days would pass without fog, and still tho bargo did not arrive, if 
 they had two elevators there, holding 500,000 bushels each, these vcssols would 1)0 
 unloaded right away, and tho grain could be put into tho barges when thoy arrived, 
 bu now tho Kingston people make storehouses of our vessels. 
 
 You said there was no accommodation lust year. As a matter of fact there was 
 only 0,000,000 bushels of grain unloaded altogether at Kingston lust year? 
 
 If there had boon more it would have boon worse. I have had vessels lying 
 llftoon days in Kingston before unloading. 
 
 Although the freight charges per tonmilo aro higher by the St. Lawrence 
 route, the various items which mako up those, exclusive of the actual cost of trans- 
 port, arc lower. It would bo wholly unnocossary to mention details of this churactor 
 wore it not for the stress placed upon tho effect of the present canal toll. 
 
 Insurance is charged to property from Chicago to Montreal; from Chicago to 
 Buffalo it is charged to property ; and from Buffalo to Now York the canal boatmen 
 pay the insurance. At Buffalo J cent is paid for elevating in addition to that charged 
 to lake vessels; that, with a small amount for firo insurunce, is charged to property. 
 
 The following aro some of these charges: — 
 
 Incidental charges. 
 
 Lake Vcssela. 
 
 iSlio veiling up 
 
 Elevating, charged to vessel 
 
 do do property , 
 VVellaud Caual tolls , 
 
 Total . 
 
 Canal Boats and Barges. 
 
 Trimming 
 
 Insurance to New York , 
 Pjlevnting, New York .., 
 Shovelling, Montreal... 
 Comuiission on freight .. 
 
 Total. 
 
 Buffalo. 
 Per Bushel. 
 
 Cents. 
 
 0-4 
 O-I! 
 
 on 
 
 l-2i 
 
 0-lj 
 0-5 
 
 0-2 
 
 Kingston. 
 Per Bushel. 
 
 Cents. 
 0-2J 
 0-2J 
 0-6 
 
 11 
 
 0} 
 
 "o'-'iV 
 o-if 
 
 0-4 
 
 There are other charges which tho canal boatmen are subjected to that tho for- 
 warder at Kingston ia free from. Bitter complaints aro made by them against tho 
 
46 
 
 imposition and charges thoy aro subjoot to. They being poor, unable to pay back 
 charges, insurance, &c., it has given rise to a class of commission raorcbaDts at 
 Buffalo, called "scalpers," who advance money to boatmen, and often contract for 
 through shipments, force down canal freights for their own benefit. An authority at 
 Buffalo states that scalpers arc a necessary evil; the chief objection to them is when 
 they enter into the through contract business, but he hopes the time will arrive when 
 the boatmen will bo so prosnorous that thoy will not require the assistance of middle 
 men. This season the boaimon have endeavored to form an association to rid them- 
 Bolvos of commissions and charges. If all these charges aro taken together it would 
 be fully 1 rent pv bushel, which would reduce the present rates of canal freight upon 
 wheat to 2J cents; that is, these boatmen carry 500 miles what the forwarding com- 
 panies are charging 2J cents for 180 miles. At the same rate as actually received 
 by the boatmen, the rate from Kingston to Montreal should be 081 cents, or at the 
 i-ates quoted I'lG cents instead of 2J cents. 
 
 I have made a jough estimate of the cost of transportation from Kingston to 
 Montreal in barges of 30,000 bushels capacity. From IJ to IJ cents per bushel 
 should be about the freight rates if the barges were fully occupied during the season. 
 The only reason or cause, which is not remedial, why there sl.ould not bo cheaper 
 transportation between Kingston and Montreal, is the lack of business, which does 
 not decrease freight rates materially by the forwarders, but does upon the other route. 
 The average freight on wheat was, in 1883, from Buffalo to Now York, within a 
 fraction of 5 cents per bushel. The average rate from Kingston to Montreal, 2 J cents- 
 The ruling rates at this dale, 22nd June, aro, to the former 3|- and to the latter 2|, 
 or a reduction by the boatmen of | cent and J cent by the forwarding companies. 
 
 The complaints of forwarders with regard to tolls date many years back, as do 
 also complaints of merchants against thorn, of excessive freight charges. In 182*7, during 
 the early days ot water transport, before the construction of the St. Lawrence canals* 
 after the first Lachine Canal was built, when the only means of surmounting the 
 other raj)ids was by the King's Locks, complaints were made of excessive toll 
 charges to the Ordnance officers ; it was shown that largo profits wero made by the 
 forwarders. Still later, when the western country was opening up, when the Erie 
 Canal was year by year increasing its traffic and diverting from the St. Lawrence 
 route trade which formerly sought that outlet, forwavdors of these days were accused 
 of excessive charges and large profits. When the Eideau Canal was constructed, it, 
 with the Welland Canal, forming a better water communication to the seaboard than 
 the Brie Canal, and at a critical period in the St. Lawrence route, the excessive 
 charges made by forwarders resulted in a Committee of the Legislature being 
 appointed to enquire into the subject of tolls upon the Rideau Canal and the heavy 
 charges of the carrier. It was supposed that when the canal was constructed, effect- 
 ing a large barge and steamboat transportation, the charges would bo reduced from 
 the old days of the battoau and Durham boat from Prescott to Montreal. 
 
 

 47 
 
 A Select Committoo was appointed in 1839, and by the examination of merchants 
 and millers, it was found that since the construction of the Ridoau Canal, the freights 
 on imports and exports had been actually increased, at least 50 per cent., instead of 
 being decreased in that proportion ; that the freight upon a barrel of flour had in- 
 creased from 25 to 40 cents, J*nd upon merchandise back had increased 50 per cent. 
 
 The principal cause was that there wore no tow-paths upon the canal— that its 
 superiority as a steamboat navigation was actually an injury to the route. Steam 
 power being necessary, the canal was not open to all classes of competitors. One 
 forwarding company had obtained the entire possession of all the steamboats upon 
 the canal, which gave them the power that the exclusivo possession of the tow-path 
 upon any other canal would give. No craft could pass through the canal without 
 submitting to the exactions of the company. The forwarders who had been formerly 
 on the St. Lawrence entered into an agreement and constituted a formidable 
 monopoly, subjecting the public to any price they might please to impose. The Com- 
 mittee recommended that tow-boats be placed upon the canal ; *hat the forwarding 
 monopoly bo suppressed; that transport and communication would bo open to every 
 person who could command sufficient capital to build a barge. The Committee states 
 that general dissatisfaction has prevailed in all parts of the Province for the last ion 
 years, among all classes of the trading community, for having been subjected to an 
 increase in freight charges, instead of reduction, which had been anticipated on the 
 completion of the Rideau Canal ; but no means of reduction has heretofore been 
 offered, Eesolutions were offered by the Committee. They regret that so noblo a 
 work as the Eidoau Canal has a tendency rather to embarrass than propitiate tho 
 trade of the Province, as by tho evidence it is shown that the transportation of pro- 
 ducts and merchandise, the growth and consumption of the Province, had actually 
 increased from 50 to 100 per cent. That it was most important to do away with tho 
 monopoly of transport, by tho Government putting tow-boats upon the canal, or com- 
 pelling tho company to tow at certain fixed rates. A member of the firm of Buchanan 
 & Co. testified that by the St. Lawrence River, in tho days of batteaux and Durham 
 boats, they had paid 90 per cent, less for transport of some articles, and that since tho 
 construction of the Eidoau Canal, light goods had increased 400 to 500 per cent. In 
 1841, a Select Committee was appointed to deal with the same subject. It was 
 stated that in 1838, 1839 and 1840, the cost of transport of a ton of rrorchandise from 
 Montreal to Kingston was £3 28. 6d., deducting toll 9s. 3d., leaving a balance to 
 the forwarder of £2 138. 3d. ; that for the same distance, upon tho Erie Canal, tho 
 charge was £2 4s. 4d., deducting toll £1 68. 3f d., leaving to tho forwarder 18s. O.^d. 
 
 The samo causes were stated as by previous committee, absence of tow path, tho 
 steam power being in possession of a private company, rendering tho canal as com- 
 pletely under the control of a monopoly, as if a railway built by a company placed tho 
 control of the propelling or locomotive power in the hands of a separate company, 
 with diverse and separate interests — recommend that seven tug boats be placed on the 
 lino to tow all boats. A committee of the House was subsequently appointed upon 
 this su' , it. 
 
48 
 
 I have alluded to this oarly history, to show that in tho most important stage of 
 transportation by the St. Lawrence route, when tho West was being settled, that tho 
 action of iho forwarders had something to do with turning tho trade not only of tho 
 Western States, but of Western Canada, through the Erie Canal. The very advan- 
 tages of tho St. Lawrence route, since the construction of the St. Lawrence canals, 
 has been its disadvantage. Upon the Erie Canal any person who was able to build a 
 canal boat and buy the horses necessary for towing, could enter tho forwarding 
 business, and through competition reduced transport to the minimum. 
 
 Upon the St. Lawrence route, there being no tow path, except upon tho small 
 percentage of canal navigation, the scale of which being much larger than upon tho 
 Krio Canal, the more expensive barge and motive power required greater capital 
 than the small boat and horses, transportation consequently fell into the hands ol 
 companies, either restricting competition or more easily preventing it by combina- 
 tion. Tho results have been, as previously stated, that on the inferior navigation, as 
 to absolute economy of transport, there have been cheaper freight rates. 
 
 DIFFERENTIAL FUEIGIIT RATES BETWEEN COMPETING ATLANTIC PORTS. 
 
 It becomes necessary to allude to many questions which may appear foreign to 
 the subject, on account of the diminution of tho grain trade of Montreal and tho 
 reasons ascribed, among which so constantly and continually set forth latterly canal 
 tolls. 
 
 After tho civil war — oa account of which, through the disorganization of business 
 on othor transportation routes, Montreal benefitted, largo quantities of grain seeking 
 the St, Lawrence route, which would not have otherwise done — Baltimore and 
 Philadelphia principally, seeing tho groat advantages of acquiring business connec- 
 tions with tho grain producing territory of the West, as New York controlled and 
 f ' ■ yed the lion's share of the export trade in cereals, these cities being weighted 
 by higher ocean freights and other disadvantages, claimed that railroad freight 
 rates should be so discriminated that grain could be shipped from western ports 
 through those cities to the consumers in Earopo at tho same rate as through Now 
 York. 
 
 An agreement was entered into in 18G9, that tho rate of freight from tho same 
 point west to these cities should be 10 cents per 100 lbs. less than to New York. The 
 railways terminating in that city, finding that a greater quantity of products, than con- 
 templated, was being carried over other r'tada, requested that tho difference should bo 
 reduced ono half— to 5 cents per 100 lbs., which was not conceded. A war of rates 
 followed, which led to this reduction. Now York being dissatisfied with this differ- 
 ence, another " railway war " started in 1816, and in 1871 tho rates were reduced 
 to 3 cents per 100 lbs. in favor of Baltimore, and 2 cents per 100 lbs. in favor of 
 Philadelphia. These " differential rates " have been tho cause of much bitter feeling 
 between tho business men and tho railways terminating at these ports. Whon 
 business becomes dull, or from other causes, cutting of rates commences ; the "differ- 
 entials " are in abeyance, and a war is inaugurated as in 1881, which was very severe, 
 
 ( i 
 
4d 
 
 b stage of 
 , that tho 
 ily ot tho 
 py advan- 
 30 canals, 
 ;0 build a 
 rwarding 
 
 .he small 
 
 upon the 
 
 er capital 
 
 hands of 
 
 combina- 
 
 gation, as 
 
 s. 
 
 foreign to 
 il and tho 
 arJy canal 
 
 f business 
 n seeking 
 tnoro and 
 3S conncc- 
 rolled and 
 weighted 
 id freight 
 torn ports 
 lugh Now 
 
 the same 
 ark. Tho 
 than con- 
 should bo 
 r of rates 
 :his differ- 
 •0 reduced 
 i favor of 
 ;or feeling 
 ). When 
 lO "differ- 
 ry severe, 
 
 I 
 
 and again, in 1884, of a more limited extent. The increased number of competing 
 through linos, and the groat loss from thoao ruinous competitions, amounting to 
 many millions of dollars, led to the pooling system, and apportionment of the traflSo 
 from wostorn points among the through lines. Tho percentage of freight allotted and 
 numerous other matters, with roforenco to transportation, aro arranged by an exocu- 
 tivo committee of ofHoers of the roads, and a commissioner or executive oflSeor, upon 
 whom falls all the labor of arranging and carrying out tho details of this complicated 
 system. This officer, wiion satisfactory proof is given that any of tho lines are cut- 
 ting rates, orders a general reduction (as has been done lately, below tho cost of trans- 
 port) ; the roads which obtained more than thoir share of traffic, through cutting tho 
 rates, they, by other roads bocomi ng as low, equalize matters and results, after the roads 
 have become sick of transporting bolow cost, in an increase of rates, to be maintained 
 until tho next periodical disruption. This pooling system, if capable of being effec- 
 tually operated, constitutes in reality a gigantic monopoly, which would control tho 
 transportation of tlie products of tho northern half of this continent, through tho 
 combination of tho east and Wost trunk linos, with a power to make what rates they 
 please, and not subjected, as in every department of commerce, or transport by water, 
 to regulation by competition. The importance of maintaining and providing efficient , 
 waterways is obvious, for, without tho Brio Canal and tho lakes and Biver St. Law. 
 ronce, by a combination of this kind the productions, industries and intcresto M tho 
 greater part of tho continent will be at thoir raorcy. The various railways to com- 
 peting points have their assigned percentage of west-bound freight. Taking railways 
 more directly connected with this subject, Boston and Now England points, a Cana- 
 dian road, or one in which there is a good deal of Canada money, the Grand Trunk, 
 with its connections, is in the pool, and has a percentage assigned of competitive 
 traffic to these points. 
 
 Their groat competitor, the Boston and Albany road, being a more direct lino, it 
 has been claimed by tho Grand Trunk that, without lojvor rates, thej voro unable to 
 obtain business to and from Boston. It would not become a party to what is known as 
 the Saratoga agreement, in 1874, without the right of a lower rate being acknow- 
 ledged by the former road, which was not done, loading to a war which has been 
 periodically repeated . 
 
 It is evident that Montreal cannot participate in the reduced transportation by 
 those wars, there being no competing lines. Montreal is about tho samo distance 
 from Chicago as Philadelphia; tho rate to Philadelphia at present is 7 cents per 100 
 lbs. loss than to Boston. If Montreal had this discrimination in hor favor, why should 
 she permit a carload of grain, during the season of navigation, to go to Boston for 
 export? If she had not, wo have a Canadian road carrying business past our own 
 port. We find that Now York is continually complaining of tho discrimination in 
 favor ot Baltimore and Philadelphia. Montreal's rate should bo, as I understand it 
 is, at present 2 cents per 100 lbs. less than to Now York — tho canjxl toll is only I cent 
 per 100 lbs. Why has she not secured this rail business in the samo proportion, 
 allowing for the shorter season of navigation, as Baltimore and other rail ports? 
 
60 
 
 In 1866 and 1819 tho percentage of aggregate receipts of grain at Atlantic pons 
 were : — 
 
 Percentage of Receipts of Grain — Atlantic Ports. 
 
 1866. 
 
 1879. 
 
 Baltimore 
 
 per cent. 
 
 8-6 
 10-9 
 19-3 
 61-2 
 
 per cent. 
 20-09 
 
 Montreal ■ , , „,,, 
 
 6-74 
 
 Boston and Philadelphia • 
 
 24-11 
 
 New York ••••■•• 
 
 49-08 
 
 
 
 jlaltimoro and Montreal have principally an export trade. I have not tho por- 
 centa^rcd of exports before 1873 ; in that year and 1883 they wore — 
 
 Percentage of Exports of Grain— Atlantic Ports. 
 
 1873. 
 
 1882. 
 
 Boston „ > 
 
 per cent. 
 
 2-45 
 
 5-50 
 
 19-60 
 
 10-35 
 
 62-10 
 
 per cent. 
 8-20 
 
 I'hiladclpliia c 
 
 6-10 
 
 Montreal 
 
 Baltimore 
 
 12-00 
 16-90 
 
 New Yorli 
 
 56-80 
 
 
 
 Tho marked increaso in business of all-rail ports is obvious, aud still tho cry is 
 that canal tolls are diverting the business from Montreal, while she has every advan- 
 tage, as far as mileage is concerned, as any of tho competing railway ports, as may 
 be aeon from tho following table of distances: — 
 
 Miles. 
 
 Chicago to Philadelphia, Pennsylvania R.R 822 
 
 Chicago to Montreal, Chicago and Grand Trunk R.R 837 
 
 Chicago to Baltimore, Baltimore and Ohio R.R 840 
 
 Chicago to Now York, Pennsylvania R.R 912 
 
 " " " " Canaua Southern and Now York Centr.al Railway . 980 
 Chicigo to Boston, Now York Central and Boston and Albany R.R. . , 1,034 
 
 Chicago to Boston, Grand Trunk and Central Vermont . » . . . 1,169 
 
 For this rail business Montreal could claim, equally with Baltimore, for a dis- 
 criminating rate, which would bo much greater than canal tolls, against other 
 Atlantic ports. During tho past years, in which exports have boon increasing from 
 them and decreasing from Montreal, she could state her disadvantage through a five- 
 month closing of navigation, a long gulf and river navigation, tho distance from 
 tho open ocean preventing "ocean tramps," regulators of freight rates, seeking 
 her harbour; higher rates of insurance and higher freight rates, though tho 
 latter does not appear to bo tho case at present. One of tho claims of Baltimore 
 and Philadoljihia to tho maintenance of these differential rates is tho groat 
 
I 
 
 61 
 
 quantity of ocean tonnage sooking New York, the large number of Trans-atlanlio 
 steamship lines which regularly ply to that port. Montreal can claim its differential 
 rate with equal force. Although it is stated, what might bo the case, the reasons why 
 she has not increased her rail receipts, whether through the apathy of her merchants 
 or the indifference of the Grand Trunk Railway, can only be determined by those 
 who are aware of the efforts that have been made. The disadvantage Montreal is 
 under for this business is shown in the following heading : 
 
 TERMINAL FACILITIES OP ATLANTIC PORTS. 
 
 As the costs and charges, either to property or the ocean vessel, are important 
 factors, they may be alluded to. 
 
 As formerly stated, Montreal has equal opportunities with other ports to obtain 
 all-rail shipments. For this business the Grand Trunk Railway has .a '.:!e no pro- 
 visions in the way of elevators and stores, whore the ocean vessel can run alongside 
 and bo loaded. All grain arriving by i-ail has to bo either elevated into store or 
 put in barges, floated down to the ocean vessel and elevated ; or, as noted in the 
 papers, a consignment of grain came by rail to Montreal in bags and was carted to 
 the steamer, an unheard of proceeding at other grain-shipping ports. 
 
 What do wo find at other ports ? At Baltimore, tho Baltimore and Ohio Rail- 
 way has three elevators, with a storage capacity of 3,800,000 bushels, receiving 
 capacity, 1,500 cars, and a daily delivering capacity of 2,000,000 bushels. Steamers 
 loading at these elevators aro charged no wharfage. At Philadelphia adequate facili- 
 ties are provided for ocean vessels to load at railway elevators at a charge of 1 cent 
 por ton per day for wharfage. At Now York the Now York Central and Hudson 
 River Railway have an elevator storage capacity of 2,300,000 bushels, and daily 
 transfer capacity of 60,000. One-quarter cent for elevating, no charge for wharfage. 
 The Erie Railway has a largo elevator, at which there is charged a wharfage of 2 
 cents per ton for first 200 tons, and J cent por ton above this, per day. At Boston, 
 the Boston and Albany Railroad has an elevator of 1,000,000 bushels storage capacity, 
 at which there is no charge for wharfage. For water-borne grain Montreal is well 
 provided with floating elevators, tho charges being low compared with Now York — 
 loss than one-half since the late reduction . 
 
 The following table, taken from the report of the Maritime Exchange, Phila* 
 dolphia, shows thedifferont methods of shipments and cost upon export grain at New 
 York, Philadelphia and Baltimore, from which it appears that Montreal is at no 
 disadvantage, except upon grain shipped all rail. 
 
 A statement, is also given, of the number of elevators, thoir storage and transfer 
 capacity, at different Atlantic ports. 
 
52 
 
 Memorandum of the Expenses outside of Inland Freight, incurred by a Shipper on svndri/ 
 cargoes of Grain, each 30,000 bushels, all bought at the same price in the West and 
 brought forioard to Seaboard at same rate of freight, and shipped from New 
 York. Philadelphid and Baltimore, respectively, in way stated hereunder, the Shipper 
 in all cases paying the vessel's bill for Trimming, or for Trimming and Stevedore. 
 
 Route. 
 
 Sliiiijiod by rail and through New 
 York railroad elevators 
 
 Shipped as above, but on special 
 inland bill of lading 
 
 Shipped by lake and canal, trans- 
 ferred by floating elevator 
 
 Shipped by lake and canal, put into 
 store and transferred from store 
 direct to vessel 
 
 Shipped by lake and canal, put into 
 store, thence lightered to vessel 
 and transferred by floating eleva- 
 tor 
 
 Shipped by rail and through Phil- 
 adelphia elevators 
 
 Shipped by rail and through Balli- 
 uiore elevators 
 
 Shipped as above, but on special 
 inland bill of landing to Balti- 
 more 
 
 Shipped in Bulk. 
 
 Terminal. Stevedore. 
 
 $ cts. 
 
 75 00 
 No charge 
 300 00 
 
 150 00 
 
 825 00 
 375 00 
 375 00 
 
 No charge 
 
 ifi cts. 
 
 60 00 
 
 GO 00 
 
 210 00 
 
 210 00 
 
 210 00 
 75 00 
 60 00 
 
 60 00 
 
 Total. 
 
 $ cts. 
 
 135 00 
 
 60 00 
 
 610 00 
 
 360 00 
 
 1,035 00 
 450 00 
 435 00 
 
 Shipped two-thirds ?n Bulk, 
 one-third in Bags. 
 
 Terminal. 
 
 $ cts. 
 
 75 00 
 No charge 
 300 00 
 
 150 00 
 
 825 00 
 375 00 
 375 00 
 
 60 00 I No charge 
 
 Stevedore. 
 
 $ CtB. 
 
 120 00 
 120 00 
 2G2 60 
 
 262 60 
 
 262 50 
 
 115 00 
 
 90 00 
 
 90 00 
 
 Total 
 
 $ Cts. 
 
 195 00 
 120 00 
 562 50 
 
 412 50 
 
 1,087 60 
 490 00 
 4G5 00 
 
 90 00 
 
 1 
 
 Storage and Elevator capacity of Atlantic Ports. 
 
 Names of Ports. 
 
 New York — 
 Stationary 
 Floating 
 
 Baltimore — 
 Stationary 
 
 elevators. 
 do 
 
 Floating 
 
 Philadelphia — 
 Stationary 
 
 Floating 
 
 Boston — 
 
 Slationr.ry 
 Floating 
 
 Montreal — 
 Stationary 
 Floating 
 
 elevators 
 do 
 
 elevators 
 do 
 
 elevators 
 do 
 
 elevators 
 do 
 
 No. 
 
 24 
 34 
 
 Storage 
 Capacity. 
 
 24,750,000 
 
 5,050,000 
 
 4,110,000 
 
 1,800,000 
 2,000,000 
 
 Transfer Capacity. 
 
 244,500 bushels per hour. 
 145,300 do 
 
 Receiving capacity daily 2,080 cars. 
 Delivering daily 2,675,000 bushels. 
 14,000 bushels per hour. 
 
 Receiving capacity daily 800 cars. 
 
 780,000 busliels daily. 
 15,000 bushels per hour. 
 
 
 3,000 to 4,000 bushels per hour, each 
 51,000 bushels per hour. 
 
53 
 
 $ cts. 
 
 195 00 
 120 00 
 662 60 
 
 412 50 
 
 90 00 
 
 800 cars. 
 
 • hour, each 
 
 I 
 
 PORT CHARQES. 
 
 Somo complaints have boon mado of oxoossivo port charges at Montroul. I have 
 compared those charges with those at competing ports, as given by Theodore 
 Hunter, Esq , in his compilation, a work termed " Port Charges of the World," and 
 Montreal boars favorable comparison, especially in the cont of discharging and 
 loading, or stevedore charges ; wharfage appears to be higher than at other ports to 
 vessels loading with grain. As Montreal has groat disadvantages to other ports, for 
 sailing vessels, no reference will be mado to tho cost attend-ng them, Montreal being 
 essentially a port for steam tonnage ; at present nearly 90 per cent, of total tonnage 
 is steam. 
 
 Mr. Hunter's work is used by those engaged in shipping and would be an 
 authority with that class of vessels known as " tramps," which it is desirable to attract 
 to any port. For comparison ho has, at ray request, given me tho cost attending a 
 steamer entering and clearing at seven ports. As vessels seldom enter with a full 
 dead weight cargo, for the purpose of comparison, a vessel is taken drawing the 
 the same depth of water in and out. Tho United States tonnage dues being annual 
 they would bo reduced by tho number of trips tho steamer would make in the year. 
 
 Charges on a Steamer of 1,500 net register tons, drawing 21 feet, loading Inward ivith dead 
 weight cargo, and Outward with grain in bulk and bags, at the Ports of Montreal, 
 Boston, New York, PhlladelpUa, Baltimore and New Orleans. 
 
 MONTREAL-INWARDS. 
 
 Pilolngp to Quebec, 21 feet, at $3 60 per foot 
 
 do Quebec to Montreal, up and down, at|2.50 , 
 
 Entering and clearing fees 
 
 Tonnage duo3, 1,500 tons, at 5 cents 
 
 Police do at 3 cents 
 
 Hospital do at 2 cents 
 
 Discharging 2,410 tons, at 20 cenia 
 
 I'oi't Warden fees m. 
 
 Wharfage, 1^ cents per ton per day, on 1,500 tons, $22.50, ten days 
 
 Amount. 
 
 $ 
 
 cts. 
 
 75 60 
 
 52 
 
 50 
 
 10 
 
 00 
 
 75 
 
 00 
 
 45 
 
 00 
 
 30 
 
 00 
 
 482 
 
 00 
 
 5 
 
 00 
 
 225 00 
 
 1,000 10 
 
 MONTRE AL-OUTWA RDS. 
 
 Ceiling 1,500 tons, at 50 cents per ton 
 
 Elevating charges on .3,240 tons, at 20 cents 
 
 Stowing 9,000 bags, at 5 cents 
 
 Hire of bags, at 4 cents 
 
 Export fee on 108,000 bushels, at 15 cents , 
 
 I'ort Warden's fee, irspecting lining, at 6 cents.... 
 do do loading, at 5 cents., 
 
 rndcrwriter's survey 
 
 Wharfage, 10 days 
 
 Pilotage, 21 feet, at f 3. 15 
 
 750 00 
 648 00 
 450 00 
 360 00 
 162 00 
 
 11 00 
 
 10 00 
 
 225 00 
 
 66 15 
 
 2,682 15 
 
54 
 
 Chirgeson a Steamer 0} 1,500 net register tons, drawing 21 feel, loading inward with dead 
 
 weight cargo, A-c. — Continued. 
 
 PORTLAND, MAINE-INWARDS. 
 
 Pilotage, 21 I'oet, at $2.50 
 
 Ciiatoiii House entry and permits 
 
 'TonnHfre dues, 1,500 tons, at 30 cents 
 
 Health dues. (None except Crom sicldy ports) 
 
 Di.-icharginpt 2,410 tons dead weiglit, at 30 cents 
 
 Port Wardens 
 
 Wharfage, free while discliarging, otherwise 25 cents per 100 tons, 6 days, at $3.75. 
 
 PORTLAND, MAINE-OUTWARDS. 
 
 Amount. 
 
 $ eta. 
 
 52 50 
 
 7 00 
 
 450 00 
 
 723 00 
 
 6 00 
 
 18 75 
 
 1,267 25 
 
 I 
 
 Ceiling 108,000 tons, at 1 cent 
 
 Elevator charges, 81,000 bushels, at 1 cent , 
 Filling and loading 9,000 bags, at 2J cents. 
 
 Bag hire, at 6 cents 
 
 Surveyor's fee 
 
 Wharfage, no charge while loading, 5 days 
 Pilotage, 21 feet, at $2.50 
 
 1,080 00 
 
 810 00 
 
 225 00 
 
 450 00 
 
 10 00 
 
 18 75 
 
 52 50 
 
 2,646 25 
 
 BOSTON, MASS.-INWARDS. 
 
 I 
 
 Pilotage on 21 feet (winter) 
 
 Custom House entry and permits 
 
 Health dues 
 
 ♦Tonnage dues on 1,500 tons, at 30c. (annually) 
 
 Port Warden 
 
 Discharging 2,410 tons, dead weight, at 30 cents 
 
 Wharfage, 5 days, } cent per day on 1,500 tons, no charge while discharging 
 
 113 40 
 
 7 00 
 
 8 00 
 460 00 
 
 10 00 
 
 723 00 
 
 37 60 
 
 1,348 90 
 
 BOSTON, MASS.— OUTWARDS. 
 
 Ceiling for 108,000 bushels of grain, at IJ cents 
 
 Trimming, per 1,000 bushels, at $2 
 
 Stowing 9,000 bags, at Ij cents 
 
 Bag hire, at 6 cents 
 
 Underwriter's survey 
 
 Wharfage, 5 days, no charge while unloading.... 
 
 Clearing from Custom House 
 
 Pilotage 
 
 1,350 00 
 
 216 00 
 
 135 00 
 
 450 00 
 
 10 00 
 
 37 50 
 
 3 55 
 
 73 50 
 
 3,275 56 
 
 • Tonnage Dues, — Since this statement was compiled, a new law came in force July 1st, 1884. 
 The United States Customs Department collects three cents per ton on foreign vessels arriving, until 
 a vessel has paid fifteen cents per.ton, instead of thirty cents per annum as formerly. To compare with 
 Montreal reduce charges inwards at each United States port $405. 
 
 I 
 
 I 
 
$ eta. 
 
 62 60 
 
 7 00 
 
 450 00 
 
 723 00 
 
 6 00 
 
 18 76 
 
 1,257 25 
 
 55 
 
 Charges on a Steamer of 1,500 net register tons, drawing 21 feet, hading inward wth dead 
 
 weight cargo, &c. — Continued. 
 
 NEW YORK-INWARDS. 
 
 Pilotage on 21 feet(winter) 
 
 Custom House, entry and permits 
 
 Healtii dues , 
 
 Tonnage dues, 1,500 tons, at .SO cents (annually) 
 
 Port Wardens , 
 
 Disfiharging 2,410 tons, dead weiglit, at 40 cents 
 
 Wliarliige, 200 tons, at 2 cents, $4.00 ; 1,300 tons, at 2} cents, $6.50 ; 10 days., 
 
 AmoDunt. 
 
 $ cts. 
 
 140 50 
 7 00 
 6 60 
 
 450 00 
 G 00 
 
 964 00 
 
 106 00 
 
 1,679 00 
 
 NEW YORK-OUTWARDS. 
 
 1,080 00 
 
 810 00 
 
 226 00 
 
 450 00 
 
 10 00 
 
 18 76 
 
 52 60 
 
 2,646 25 
 
 Ceiling for 108,000 l)uaIiols, at 1 cent 
 
 Elevator charges pnr 1,000 busliels, at $6.50 
 
 Stowing 9,000 ba^s, at 2 J cents 
 
 Wag hire, at 4 cents 
 
 Surveyor's fees (underwriters) 
 
 Wharfage 10 days 
 
 Clearing from Custom House 
 
 Pilotage (winter) 
 
 1,080 00 
 
 702 00 
 
 226 00 
 
 360 00 
 
 10 00 
 
 105 00 
 
 3 56 
 
 103 75 
 
 2,589 30 
 
 113 40 
 
 7 00 
 
 8 00 
 
 450 00 
 
 10 00 
 
 723 00 
 
 37 60 
 
 1,348 90 
 
 1,350 OO 
 
 216 00 
 
 135 00 
 
 450 00 
 
 10 00 
 
 37 50 
 
 3 55 
 
 73 50 
 
 3,275 65 
 
 PHILADELPHIA- INWARDS. 
 
 Pilotage, 21 feet 
 
 Custom House entry and permits 
 
 Health fee 
 
 Tonnage duns (annually) 1,500 tons, at 30 cents 
 
 Port Wardens 
 
 Discharging 2,410 tons, dead weight cargo, at 35 cents 
 
 Wharfage 10 days, $15 per day 
 
 (Tliis wharfage is, by agreement, ranging from $10 to $20 per day.) 
 
 96 10 
 7 00 
 
 10 00 
 450 00 
 
 10 00 
 843 50 
 150 00 
 
 1,566 60 
 
 PHILADELPHIA-OUTWARDS. 
 
 Ceiling for 108,000 bushels, at 1 cent 
 
 Klevator charges on 81,000 bushels, per 1,000, $3 
 
 Stowing 9,000 bags ; 27,000 bushels, per 1,000, $7 
 
 IJag hire, 9,000, at 4 cents 
 
 Wharfage, 1 cent per ton per day on 15,000 tons, at $15, 10 day 
 
 Clearing trom Custom House 
 
 Pilotage 
 
 5A 
 
 1,080 00 
 
 243 00 
 
 189 00 
 
 360 00 
 
 150 00 
 
 3 55 
 
 63 00 
 
 2,088 65 
 
56 
 
 Charges on a Stcaimr of 1,500 net register tons, drawing 2\fect, hading inward with dead 
 
 weight cargo, it-c. — Continuod. 
 
 BALTIMORE-INWARDS. 
 
 Pilotage, 21 feet 
 
 Custom Hotiae entry and permits. 
 
 Health fee on 1,500 tonB, at 1 cent 
 
 Tonnage dues, 1,500 tona, at 30 cents 
 
 Discharging 2,410 tons dead weight cargo, at 30 cents 
 Wharfage, 1 cent per ton, 10 days 
 
 Amonnt. 
 
 $ CtB. 
 
 106 00 
 
 7 00 
 
 16 00 
 
 450 00 
 
 72:! 00 
 
 160 00 
 
 1,450 00 
 
 O), 
 
 BALTIMORE-OUTWARDS. 
 
 Ceiling, 108,000 bushels, at 1 cent 
 
 Elevator charges on 81,000 bushels, ai $7.50 per 1,000 bushels 
 (Which includes trimming.) 
 
 Stowing 9,000 bags, 27,000, at $5.50 per 1,000 
 
 Filling and sewing bags, 9,000, at IJ cents 
 
 Bag hire, at 3^ cents 
 
 Surveyor's fees (underwriter.-i) 
 
 Wharfage, 10 days, at $2 per day 
 
 Pilotage 
 
 1,080 00 
 
 607 60 
 
 148 50 
 
 135 00 
 
 315 00 
 
 15 00 
 
 20 00 
 
 105 00 
 
 2,426 00 
 
 •\> 
 
 NEW ORLEANS-INWARDS. 
 
 Pilotage, 21 feet, at $4 50 
 
 Custom House entry and permits 
 
 Health fee 
 
 Tonnage dues, 1,500 tons, at 30 cents 
 
 Discharging 2,410 tons dead weight cargo, at 40 cents 
 
 Wharfage, 1,500 tons, at 15 cents ~ , 
 
 Port Warden fees 
 
 Harbor dues 
 
 94 50 
 
 7 00 
 
 30 00 
 
 450 00 
 
 964 00 
 
 225 00 
 
 25 00 
 
 20 00 
 
 1,815 50 
 
 
 03 
 
 
 NEW ORLEANS— OUTWARDS. 
 
 Ceiling, 108,000 bushelii, at 1 cent 
 
 Elevator cliarges paid by shipper 
 
 Trimming 81,000, at $2 per 1,000 
 
 Stowing 9,000 bags, at 15 cents 
 
 Filling do 1^ cents 
 
 Bag hire do 4 cents 
 
 Surveyor's fee 
 
 Wharfage, 1,500 tons, at 5 cents, for 60 days. 
 Pilotage, 21 feet, at $4 50 
 
 1,080 00 
 
 162 00 
 
 450 00 
 
 135 00 
 
 360 00 
 
 20 CO 
 
 75 00 
 
 94 50 
 
 2,376 60 
 
 The following statomentHhows the freight rates on 60 pounds of grain by steamer 
 to Liverpool, from several competing ports. It will bo observed tliat from Montreal, 
 Bomo years ago, the freight rates were higher, but that during the last few yeara 
 there has been little difference in ocean rates. 
 
 e 
 S 
 
 Si 
 
 a 
 
94 50 
 
 7 00 
 
 30 00 
 
 450 00 
 
 964 00 
 
 •225 00 
 
 25 00 
 
 20 00 
 
 1,816 50 
 
 162 00 
 
 450 00 
 
 135 00 
 
 360 00 
 
 20 CO 
 
 75 00 
 
 94 50 
 
 2,376 60 
 
 4 
 
 
 
 S 
 «) 
 
 <, 
 
 oq 
 
 
 
 C/J 
 
 ^^ 
 
 O -^ 
 « 2 
 
 2i it 
 
 s 
 
 <3 
 
 e 
 
 00 
 
 00 
 
 5Y 
 
 'o.iouijiiu}] 
 
 •ati)-t<0<3»00>i3> loo 
 
 •wnidiopmmj 
 
 • I'* io cp Oi ^^ o o 
 
 •3(J0^^ M.ij^ 
 
 ■l'B3J1U0If 
 
 'i «0 lO I- O N -H 
 
 ■OJOCUppid 
 
 ■ aoa>oaoa>t7<o l<» 
 
 -a 
 
 •uiililiapwiiil.l 
 
 ■ObOOdOOOOCiA 
 
 •^jjo^^^ Aiajij 
 
 "woooooi'-ouoooo 
 
 ■IBOJ^UOIf 
 
 •OOOOt-t— l^OOO 
 
 HJOA .ttOM 
 
 •ju.ujnoj^ 
 
 t-00 
 
 ! ; ' 
 
 ) • 
 
 
 : 
 
 'il 00 00 05 I- O c-l 
 f-» i-H 
 
 •>1.I0A A\DN 
 
 •lBa.nnoj^ 
 
 ^r-iOO>t-50tOOO 
 
 •5{J0A A19>J 
 
 . t- — Cl M « to CO 
 
 •^ t— ( I— ( »-H »^ 1-4 ^M 
 
 •IBSJIUOPI 
 
 
 •5JJ0A MSN 
 
 'IBaj^uoH 
 
 • I- ^ C-) CO m CO CO 
 
 1^ 
 
 •jjjOA .w^N 
 
 
 -2 
 
 •piojiuon 
 
 • 00 => 00 O i-i C^ « 
 TD »— * I— » I— « ^H *-» 
 
 •31J0A A\aN 
 
 '^•^Oir^oot'-t-OT 
 
 •IBSJIUOK 
 
 •5IJ0A AiOff 
 
 •JBOJ'HIOre 
 
 I'OA Ai8N 
 
 •l«oj)uo;5 
 
 t: 1— ( • ■-( 
 
 •31J0A. AOfJ 
 
 TSeOCOTl'^COOOOT 
 
 'IBOJIUOJ^ 
 
 
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 J2 3 3 3 &« O 
 
 CO 
 
 00 
 00 
 
 'OJ(>lll|)lU(I 
 
 ')tJOA AiSM 
 
 '■'■.♦/I'tfo e^jgc .-i-r''"i« 
 ^ e-i M ^ wj CO ■» ♦ 
 
 'ivojiuo|\ 
 
 _4C0<0C0^^^»O 
 
 '9join!)pi({ 
 
 •■Bimliopniuid 
 
 
 •51J0A MDN 
 
 
 •noisog 
 
 
 •[iiwiiiojv 
 
 
 •oaom!)pi{j 
 
 •«!q''l3P«l!'Icl 
 
 'oe<i«>3'>tvcocO'»i 
 
 •:(JOA Ava^ 
 
 ^C-lcO'O'lOCOMtJ" 
 
 •nojsog 
 
 »o »o '* ^ 
 
 ' CO 1C5 «0 lO "T ^ 
 
 •luaJiuojy 
 
 •ajouiiiptg 
 
 ■ to CO 00 OO CO <0 00 
 
 ■wiqdiapBiiqj 
 
 •wt-coceoot- 
 
 •>l,iOA AVON 
 
 •uojsog 
 
 'IBnj'niojv 
 
 •<OCOt^t-^CO00 
 
 •3i0inii[Bg 
 
 •COlOCCOOCOOSt- 
 
 ■■Bjqdiapunqj 
 
 ; CO CO '^ 00 00 o> 00 
 
 •\MX A19N 
 
 •noisog 
 
 I o oo^- o 00 
 
 •lBa.iluore 
 
 lOtOaOOOODOCn 
 
 •ajoiunptg 
 
 •■BiqdiapBnqj 
 
 •Jl-lOA AV3>J 
 
 -QOoocDt-<or-i- 
 
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 •IBajjiiOH 
 
 •ao05t-cot*t-oo 
 
 , 0) • a) 
 
 s s^ a 
 
 <o o 
 
 ^y'o.S 
 
 ST-j-'iciuOS^ 
 

 58 
 
 Montreal is at somo tlisadvantago with regard to marine inHuranoo. From a 
 Htatomonl in a memorial of the Philadtilpliiu Commercial Rxchangolho marine innur- 
 anco in 1831, from Now York, Phiiudolphia and Baltimore, ranged by Hailing veHMola 
 from I to 3J per cent., and by atoam, J^ per cent., each month during the year, Iohh 20 
 per cent, on both. By steam from Montreal it is Htatod to range fiom J to 3J per 
 cent., and by sail, 1 J to 6h per cent., Ichs discount of 15 per cent. 
 
 One of the arguments against abolishing the dilForential rates was that Phila- 
 delphia and Baltimore had a greater proportion of sail shipments, therefore, the avonigo 
 insurance on shipments of grain was greater than from Now York, on account of 
 the excess of steam tonnage, 74 per cent, stoam, 26 per cent, sail, Phil.iJolphia 78^ 
 (■ail to 21 J steam. Baltimore shipments wore 84 percent, sail and K! per cent, stoam. 
 On this principle the average insurance from Montreal would bo lower than from 
 Philadelphia and Baltimore The formers percentage of steam tonnage was 84 per 
 cent, to 16 per cent. sail. 
 
 Montreal was formerly second to New York in the quantity of cereals exported. 
 During the last decade Baltimore has takon that position, and Montreal comes third. 
 
 The only port that Montreal may bo said to bo computing against is Now York. 
 Its advantages to hold trade can be no bettor detailed than in the words contained in 
 a report of the Maritime Exchange, of Philadelphia, a city that is endeavoring to 
 obtain a share of tlu) export grain trade: 
 
 " It must bo borno in mind that Now York, while herself possessing an enormous 
 foreign and domestic trade, has, for a uumbor of years, had a practical monopoly in 
 the distribution of tho exports and imports ot many other States in the Union. This 
 pre-ominonco in tho trade wo all know to bo largely duo to hor geographical position 
 on tho sea coast ; to hor important connection by tho Erie Canal for tho receipt of 
 heavy tonnage from tho great lakes j to hor immense banking and monetary facilities, 
 to her nearness to tho large manufacturing interests in hor own and adjacent States; 
 and to hor being the one point in this land in which foreign capital is always accumu- 
 lated in largo amounts. 
 
 Some idea of the immensity of tho monetary facilities of Now York may be 
 obtained, whon wo consider that her corporate banking capital exceeds $81,000,000, 
 while tho deposits amount to $437,000,000. The power to influence any trade by 
 such a concentration of money is almost beyond estimate. 
 
 These advantages have resulted in attracting to hor harbour some thirty-nine 
 lines of steamships, composed of about two hundrtd vessels regularly employed in 
 the Transatlantic trade. In addition to this, there is loaded at hor piers for foreign 
 ports, an average of one transient steamer per dfiy, or over Ihreo hundred per annum. 
 This enormous foreign tonnage constantly movinf^, has developed a continuous demand 
 for grain from tho interior, and has given New York an advantage for outward 
 business beyond all tho other Atlantic ports combined. Tho large amount of out- 
 ward freight room daily offering, causes, by its competition for business, a constant 
 market for grain at the highest prices obtainable on the seaboard. '>i these steamer 
 freights vary by competition, and tho necessity of procuring cargoes to enablo 
 vessels to sail on their appointed dayw, additional fractions on the prico of grain 
 required for shipment are insisted upon and obtained by the sellers, and under this 
 stimulus Now York has generally been, for a series of years, tho highest market for 
 grain on the Atlantic seaboard." 
 
 The following statement shows tho tonnage entered at the ports of Now York 
 
 and Montreal during the lust twenty yoara, from which it may bo perceived that 
 
69 
 
 TliiH 
 
 i 
 
 Montroul, during tho last dccado, as comparoJ with tho previous one, has not had as 
 largo a porcontago of incroaso as Now York. 
 
 Tonnaije entered at New York and Montreal, durimj the years 1884 to 1883, inclusively. 
 
 Year. 
 
 At New York. 
 
 At Montreal. 
 
 Year. 
 1H74 
 
 At New York. 
 
 At Montreal. 
 
 1861 
 
 2,382,192 
 2,076,477 
 2,697,325 
 2,764,005 
 2,805,252 
 3,101,691 
 3,093,180 
 3,413,436 
 3,969,3:<9 
 4,211,6-24 
 
 142,046 
 134,758 
 189,280 
 185,354 
 180,10t 
 261,557 
 300,066 
 344,323 
 391.926 
 413,034 
 
 5,049,018 
 4,421,074 
 4,467,139 
 4,672,300 
 6,64.'5,026 
 6,661,826 
 7,611,282 
 7,600,522 
 7,360,843 
 6,448,837 
 
 409,675 
 376,052 
 299,711 
 288,003 
 309,261 
 349,712 
 427,057 
 
 1886 
 
 1875 
 
 1H76 
 
 1806 
 
 1867 
 
 1877 
 
 1868 
 
 
 1H69 
 
 1879 
 
 1870 
 
 IHHO 
 
 1871 
 
 1881 , 
 
 1872 
 
 1882 
 
 373,412 
 40K 4<I6 
 
 1873 
 
 ia83 
 
 
 Annual average.. 
 
 
 Annual average. 
 
 3,056,363 
 
 253,445 
 
 5,974,147 
 
 372,141 
 
 Tho pouition that Montreal has occupied in tho grain trndo during tho ton yoars 
 ending 1882, can bo Boon in tho following table of tho pcroontagos of receipts and 
 exports of grain at five competing Atlantic ports. 
 
 Percentage of Grain Receipts and Exports at fioe competing Seaboard Ports, for the 
 
 decade ending 1882. 
 
 
 Receipts. 
 
 Exports. 
 
 Years. 
 
 1 
 
 4-* 
 
 s 
 
 13 
 
 11-4 
 9-2 
 0-6 
 9-0 
 9-0 
 7-12 
 0-74 
 7 42 
 7-20 
 7-79 
 
 8-45 
 
 a 
 
 o 
 
 .-» 
 
 S 
 
 m 
 
 
 .2 
 
 13 
 
 '3 
 
 .2 
 13 
 
 04 
 
 l»-3 
 12-8 
 15-7 
 10-8 
 12-5 
 15-49 
 14-25 
 14-33 
 10-09 
 9-29 
 
 13 oi; 
 
 o 
 
 a 
 '♦J 
 
 "3 
 
 11-2 
 
 12-9 
 
 12-2 
 
 17-7 
 
 10-8 
 
 10 04 
 
 20 09 
 
 17-70 
 
 10-26 
 
 13-89 
 
 15-48 
 
 "3 
 
 Z 
 
 § 
 
 d 
 
 2 
 
 OQ 
 O 
 
 2-45 
 
 3 05 
 4-43 
 
 4 80 
 4-79 
 0-09 
 6-29 
 7-71 
 9-39 
 8-20 
 
 5 72 
 
 -a 
 
 o 
 b 
 
 .2 
 
 13 
 
 c 
 
 :j 
 
 •a 
 
 c3 
 
 3 
 
 5-50 
 
 0-35 
 
 9-80 
 
 17-50 
 
 10-82 
 
 14-06 
 
 12-93 
 
 12-01 
 
 8-99 
 
 6-10 
 
 10-41 
 
 i 
 
 "3 
 m 
 
 1873 
 
 1874 
 
 10-3 
 
 9-3 
 
 10-2 
 
 10-7 
 
 11-3 
 
 9-29 
 
 9-80 
 
 10-88 
 
 13-41 
 
 14-34 
 
 10-90 
 
 52-8 
 
 66-8 
 
 52-3 
 
 468 
 
 50-3 
 
 50-00 
 
 49-06 
 
 49-61 
 
 62-39 
 
 54 09 
 
 51-47 
 
 19 00 
 16-72 
 17-03 
 13-88 
 13-55 
 10-42 
 8-77 
 10-13 
 10-05 
 12 00 
 
 13-12 
 
 62-10 
 62 94 
 60-12 
 44-14 
 50 10 
 50 74 
 49-76 
 50-95 
 62-80 
 60-80 
 
 10-35 
 1190 
 
 1875 
 
 1876 
 
 1877 
 
 1203 
 19-08 
 20-74 
 
 1878 
 
 18 09 
 
 1879 
 
 22-20 
 
 1880 
 
 19-20 
 
 1881 
 
 18-77 
 
 1882 
 
 16-90 
 
 Average... 
 
 53-04 
 
 17-12 
 
 Krom tho foregoing, it appears that tho exports from Montreal, comparing 1873 
 and 1882, have decroasod t'GO per cent., that Boston's expor'^s have increased S-'ZS per 
 cent, and Baltiraoro's 6-55 por cent. 
 
 Southern ports, as well as Now York, appear to havo a business that Montreal 
 does not ongago in ; Baltimore espocially, exports wheat and corn to some twenty 
 ports in Franco, also ports in Spain, Portugal, Italy and Turkey, 
 
60 
 
 Montroar« businoes is nearly all with Great Britain. 
 
 Of the total receipts at these ports, from an approximate average of several 
 yoare, it appears that 7tA per cent, is received by rail and 22^ per cent by canal. Of 
 the latter, the receipts by the Lachine Canal wore 5 per cent, and the Erie Canal 17* 
 per cent, of the total receipts. 
 
 It is probable, when our enlarged canals are completed, the chief diversion of 
 American grain would bo from Buifalo and that export grain. A greater quantity 
 might be diverted if international relations were such that western cereals could be 
 stored in Montreal for distributions for the consumption of Now England States, and 
 return importp to bo shipped "West by water. The Grand Trunk now carries the 
 greater proportion of its receipts of grain and corn at Sarnia and Georgian Bay 
 ports through Montreal to Portland, and to the Now England States by its railway 
 connections. If Ogdensburg can do the business, with Boston and New England 
 points, stated elsewhere, there is no reason why the largo propellers, carrying some 
 2,000 tons, should not go down to Montreal, from which place there would bo to the 
 Northern New England States a lens rail mileage than by any other route ; the 
 increased length of tho water transport would be compensated for by decreased cost 
 of transport by water and the lesser rail mileage. We would therefore have 
 Montreal the foot of lake navigation for tho supply of these States instead of Buffalo- 
 The physical characteristics of tho country show that tho River St. Lawrence is tho 
 natural waterway to these States by a connecting link to Lake Champlain. Tho 
 continuous range of mountains which divides tho Atlantic Slates from tho West is 
 unbroken except by tho Hudson, through which break run various railways as well 
 as tho Erie Canal. North there are tho Adirondacs, a barrier to tho Now England 
 States around tho northei'n spur of which is tho Lake Champlain Eailroad and the 
 St. Lawrence. There are, therefore, naturally tributary to railways running north- 
 ward of tho Adirondacs and tho Biver St. Lawrence, nearly all of the New England 
 States north of a li'ie drawn from Albany to Boston. Montreal is destined in timo to 
 be a groat grain market for this territory, not only of the cereals of the Western 
 States but of tho NorthWost of Canada, and of the coarser grains, oats, rye and 
 barley — of Quebec and Eastern Ontario, whose natural consuming territory is these 
 States. 
 
 The warehouses of Montreal might be filled during the season of navigation, 
 as is done in Buffalo, to bo exported by tho Ft. Lawrence River, and during tho winter 
 by Boston ;ind Portland, m- forwarded by railways ititorsocting tho Eastern States, for 
 home consumption. Tho failure of tho janals in the past to attract traffic and the 
 small volume of trade which seeks tho St. Lawrence route at ])ro8ont is by no means 
 caused by the economic disadvantages of the route. Nature has made the River St. 
 Lawrence tho natural outlet of Dearly all the wheat-producing territory of North 
 America, and a large portion of tho corn area. An artificial barrier has been 
 erected in two political and commorci.il systems prevailing over tho country, con- 
 tiguous and tributary, which obstructs the avenues of nature and diverts into artificial 
 
61 
 
 )f Hovoral 
 uanal. Of 
 [Janal \1h 
 
 sTorHion of 
 
 quantity 
 } could bo 
 tatcs, and 
 irrics tho 
 gian Bay 
 Ls railway 
 
 England 
 ing 8omo 
 
 bo to tho 
 oute; tho 
 jascd cost 
 foro havo 
 of Buffalo' 
 nco is the 
 ain. Tho 
 bo West is 
 ys HH well 
 ? England 
 d and tho 
 ng north- 
 7 England 
 
 in timy to 
 I Western 
 a, ryo and 
 Y i« thoHO 
 
 lavigation, 
 
 tho winter 
 
 States, for 
 
 ic and tho 
 
 no means 
 
 Eiver St. 
 
 of North 
 
 has been 
 
 ntry, con- 
 
 oartiflcial 
 
 channels a large portion of the trade and commorco of the northern half of this 
 continent. 
 
 At present there does not appear much hopo of attracting any proportion of the 
 shipments from Western ports to tho Eiver St. Lawrence. Money or capital and 
 enterprise appear to bo greater levers in attracting trade than little differences in 
 cost of transportation or small taxes, such as canal tolls. 
 
 SPECULATIVE SYSTEM OP DEALINQ IN (iRAIN. 
 
 Grain was, until a recent date, sold by sample in the principal seaboard markets. 
 Every canal boat or carload of grain preserved its identity. What some call a 
 legitimate business was done. The buyer only bought the grain he intended to have 
 delivered to him, and the seller only sold what he intended to deliver. Grading 
 grain has been adopted, within the last few years, in Now York, Baltimore and other 
 United States Atlantic ports. Tho change fi-om sample to grading has rendered 
 possible and introduced tho western method of doing business the protective and 
 speculative system of futures and options. Chicago was tho first city to adopt this 
 character of trading, it being the principal port to which grain was forwarde<l for 
 shipment. As tho railways multiplied and the receipts of grain became greater, it 
 was found impossible to keep every consignment separate; trouble and difficulty 
 arose, which resulted in tho business men establishing different grades of grain on a 
 recognized standard of inspection. Grain, on arriving, was inspected, graded and 
 elevated into the warehouse and a receipt given for tho number of bushels there 
 might bo. Business thus changed from sample to warehouse receipts. 
 
 Ocean telegraphy making synchronal tho fluctuations of the buying markets of 
 Europe and selling markets of America and other grain exporting countries; tho 
 increase in the number of steam vessels regularly plying between tho two Contin- 
 ents; their larger carrying capacity cheapening tho cost of transport ; tho quickness 
 of communication, the steam vessel gradually forcing th3 sail from the grain trade ; 
 tho extension of telegraphic facilities, railroads, improvements of water communica- 
 tions, erection of elevators, and cheaper methods of handling grain, increasing the 
 competition of other surplus grain-producing countries with America; these, with 
 other causes, tend to univorealizo prices and fluctuations of value and give a more 
 speculative character to the grain trade. 
 
 The immense increase in railway mileage in the Western States reaching into 
 every grain-producing district ; tho consolidation of railways under one manage- 
 ment; the introduction of fast and through freight car lines ; the great reduction in 
 cost of transporting grain by rail from tho grain-receiving centres to tho seaboard ; 
 tho diversion from tho Erie Canal and waterways to the railways of the transprrt of 
 a large propoition of the grain for eastern consumption, havo all changed tho 
 character of the business at the various Atlantic ports. 
 
 Tho Western men wore more alive to the spirit of modern commerce than tho 
 Eastern. The energy which enabled Chicago, after a fire and disorganization of 
 business, in magnitnd' unknown in modern times, both to prevent the diversion of 
 
 
62 
 
 trade and in a few years to more firmly establish her influence; that energy has 
 infused into her methods of business a speculative element which has attracted the 
 capital of the world, and enables her to govern and regulate the grain markets of 
 America. The grain speculator is willing to assume the risk of predicting values 
 for the future. He will hazard his money on his opinion, of Europe's probable 
 deficiency and America's, or other grain exporting countries, surplus, from the time 
 the seed is in the ground until the crop is harvested, lie has relieved the farmer 
 and producer from the local dealer or miller, and centered in one city the determina- 
 tion of values and the speculation which was formerly diflfusod over a wider area; 
 and dependent upon local conditions and circumstances, which placed the producer 
 in the power of those who established prices more upon the necessities, and inability 
 to sell, of the farmer than the value of the commodity. This speculative business 
 prevails in St. Louis, and in all the lake ports, influenced principally by Chicago 
 quotations. In Duluth, Milwaukee, Toledo, Detroit, they deal in futures and options. 
 Coming east, Buflfalo, under the sample system, had considerable business, the 
 identity of the grain being preserved in its warehouses. The grading of grain and 
 dealing in futures and options have carried its business to speculative markets, and 
 out of the immense receipts at that port it merely derives the profit the grain in 
 transit leaves. 
 
 The first seaboard city to grade grain, and deal in futures and options, was 
 Baltimore. From the date it became a speculative market its receipts and exports 
 have increased largely, and it is now known through the west as a " live market." 
 New York, finding that business was being diverted to Baltimore, that, to the detri- 
 ment of her trade, the export merchant made his purchases in Chicago, because, on 
 account of their being no speculation, he raised prices by the quantity he bought, 
 introduced the system of grading grain, and dealing in futures and options. There 
 wjis considerable opposition from the older members of the Produce Exchange, who 
 wished to adhere to the tin boxes of samples of each boat load of grain which arrived. 
 Speculative trading was first established on pork and lard, iii 1870. The arrange- 
 ment for the grading of grain was completed in 1877 and the cull board established ; 
 since that time the receipts of grain havo increased largely, as speculative dealing is 
 impossible where there is not a large amount of grain in store. The exports have 
 also increased proportionately. 
 
 The amount deposited in margins has increased from 8271,776; in 1876, to 
 $17,810,007, in 1883. The largest sum deposited in one day was $623,200. The 
 sales on call only represent a fraction of the business, as the private sales and pur- 
 ch OB among members of the Ii]xchange are not recorded. It is estimated that 
 business is done at times to the value of 810,000,000 per diem. Since 1877, the 
 Bales on call have increased from 32,878,000 bushels to 128,251,000 bushels, in 1883. 
 
 The following statement shows the volume and character of this speculative 
 busmess since its adoption in New York : — 
 
<33 
 
 Statement of Sales on Call, and Margins deposited, at the New York Produce Exchange 
 from the date of the adojHion of the system of dealing in futures and options. 
 
 Years. 
 
 Wheat. 
 
 Corn. 
 
 Oats. 
 
 Pork. 
 
 Lard. 
 
 Oil. 
 
 Margins 
 Deposited. 
 
 1876 
 
 bushels. 
 
 bushels. 
 
 bushels. 
 
 barrels. 
 
 104,250 
 174,000 
 65,500 
 74,750 
 50,750 
 19,500 
 15,750 
 
 tierces. 
 
 149,750 
 268,000 
 194,550 
 859, 2S0 
 440,200 
 782,000 
 1,737,600 
 
 barrels. 
 
 $ CtSa 
 
 271,776 00 
 673,925 00 
 726.007 00 
 
 1877 
 
 15,016,000 
 16,280,000 
 34,388,000 
 46,080,000 
 44,392,000 
 47,376,000 
 
 17,862,000 
 17,261,000 
 27,847,000 
 25, 160,000 
 41,912,000 
 48,164,000 
 
 
 19,800 
 
 6,000 
 
 5,200 
 
 900 
 
 ••..• ...I. 
 
 1878 
 
 
 
 
 2,783,854 00 
 
 1880 
 
 4,725,000 
 15,690,000 
 27,370,000 
 
 6,052,360 00 
 10,716,838 00 
 17,120,887 50 
 
 1881 
 
 1882 
 
 
 
 1883. 
 Janimrv 
 
 4,184,000 
 5,872,000 
 4,792,000 
 6,040,000 
 7,004,000 
 8,080,000 
 7,152,000 
 4,576,000 
 4,984,000 
 5,832,000 
 3,752,000 
 2,408,000 
 
 5,160,000 
 5,136,000 
 3,856,000 
 2,410,000 
 4,632,000 
 6,464,000 
 3,832,000 
 3,656,000 
 3,464,000 
 2,S' ri,000 
 2,168,000 
 2,032,000 
 
 2,195,000 
 2,610,000 
 1,415,000 
 1,800,000 
 1,820,000 
 1,690,000 
 1,765,000 
 1,270,000 
 1,060,000 
 1,730,000 
 1,773,000 
 810,000 
 
 750 
 
 43,750 
 54,750 
 43,500 
 10,500 
 33,750 
 68,500 
 47,000 
 25,000 
 26,250 
 21,250 
 27,000 
 31,750 
 
 
 876,730 00 
 
 February .*..•••••• 
 
 
 1,734,410 00 
 1,194,110 CO 
 1.043,460 00 
 
 March 
 
 
 ■...M *...•• 
 
 Aprils. •■. 
 
 260 
 
 May 
 
 JUQG 
 
 .a... ...a. 
 
 979,020 00 
 2.509.316 00 
 
 
 July 
 
 
 1,327,290 00 
 
 August 
 
 
 1,061,601 00 
 1,892,990 00 
 2,280,390 00 
 1,280,080 00 
 
 Seutember 
 
 
 Octolier 
 
 
 
 November 
 
 
 
 
 ••••••■■4 •*•• 
 
 1,621,710 00 
 
 
 
 Total 
 
 03,676,000 
 
 44,640,000 
 
 19,935,000 
 
 1,000 
 
 433,000 
 
 
 17,810,007 00 
 
 
 
 The New York Produce Exchange, sinco the adoption of this eystora, has boon 
 compelled to erect a new building, at a cost of 83,000,000. The momborHhip is now 
 3,000, and the tickets of membership have increased from $300 to $2,500 each. 
 
 I have alluded to systems of business on account of the report and remarks 
 made at the annual meeting of the Corn Exchange Association, Montreal, whero 
 great stress was placed upon the " incubus of canal tolls." As far as I can judge, 
 Montreal is doing a legitimate business. It was stated at the meeting that the 
 income from the tables, I suppose for samples, had dwindled away every year, and 
 that the funds of the Association were decreasing from year to year, and something 
 must be done; that the falling oft' in tonnage seeking Montreal was serious. The 
 Allan lino had established a weekly line to Boston, and a fortnightly lino to Balti- 
 more, instead of Montreal. Statistics wei-o given showing groat increase in exports 
 from other ports, principally speculative markets, and docrea.so at Montreal. 
 
 The report of Trade and Commerce, city of Montreal, 1830 to 1882, states, 
 under causes of a decrease in movement: — "The effect of corners in some of the 
 grain markets of the Western States has boon to paralyze legitimate business and 
 obstruct the movement of breadsturt's towards tho seaboard." Montreal's business is 
 principally e.xport, it is considered at other seaboard ports that corners do not 
 affect tho export trade. The "corners" generally being local, those interested can 
 sell spot-grain for export at European mai'kot prices, without detriment to tho corner. 
 Tho j)rincipal corner affecting iho export trade of New York was what is known as 
 
61 
 
 the " Keone corner " of 1879 and 1880, whoro a number of capitalists thought there 
 WUH a good opportunity of " cornoring " Europe by buying up the surplus grain of 
 America; bu :;rain was imported into Groat Britain from places with which trade 
 was deemed impossible. The corner "burst," to the great loss of the makord. 
 While it continued it seriously affected the shipping interest of Now York, and is 
 stated to have been a lasting injury, from opening up business in grain with countries 
 hitherto unlhought of. 1 find no other corners alluded to in the reports of seaboard 
 exchanges which have obstructed the movement of broadstuffs to the seaboard by 
 American routes. 
 
 A special committee of the New York Senate was appointed to investigate 
 the cornering of grain and other articles. A number of witnesses were examine<l, 
 among them an old member of the Produce Exchange opposed to innova- 
 tions. He was asked what effect dealing in futures and options or speculative business 
 had upon legitimate business. He answered . " It ruins it ; I had a legitimate trade, 
 and I won't do any other. Legitimate trade cannot live in competition with 
 gambling." It may be that Montreal's business is in a similar position with reference 
 to other competing ports as this member's of the Produce Exchange was with regard 
 to the other members of the same body. As I understand it, the br linoss of Montreal 
 is similar to that of New York before 1877. There is no ostabliphcd system of 
 grading grain, except, perhaps, that of Ontario. Nor is there any great quantity 
 goes into storage to speculate upon. Montreal being weighted in having only one 
 description of trade— the export — its stoiing capacity is only 2,000,000 bushels, 
 while that of New York is 24,275,000 bushels. There being no speculative market 
 to attract ocean tonnage, and the inward cargoes being confined to the imports for the 
 supply of a limited population, Montreal can only do a grain business proportionate 
 to the orders she may receive from Europe, the capital her business men may bo 
 willing to employ or risk, and proportionate to their speculative enterprise, governed 
 chiefly by the tonnage seeking port, as receipts for export in excess of that tonnage, 
 would so increase freight rates that business could not be done profitably. 
 
 Speculative dealing has extended to European markets. With the ocean cable 
 the business is becoming similar to that between New York and Chicago. Commer- 
 cial houses have agents or branches in each city, and buy or sell futures, according 
 as the fluctuations in the respective markets render advisable. Liverpool, London 
 and New York are becoming more intimately connected in the business. A merchant 
 in the former cities can buy, at any minute, for immediate shipment, or allow it to re- 
 main in store, to ship to any market he finds most profitable, from the large stock 
 of grain this speculative business has attracted to the latter port. The cargo would 
 arrive in Liverpool in nearly the same time as tho Now York merchant would 
 obtain grain from Chicago. New York acts aa an intermediary market between 
 Chicago, or the West, and Liverpool, a fact which is bound to attract grain to that 
 port or any other port that does tho same character of business. As speculative 
 dealing in grain increases in Europe, tho export business will be certain to gravitate 
 to these poi'ts. 
 
65 
 
 In ISTS, Thomas Eimmor, Esq., a grain merchant, of Montreal, was examined 
 by the United States Senate Committee on transportation routes to the seaboard. He 
 stated his firm was principally engaged in the export of American grain to Great 
 Britain : — "Wo never got any consignments, and never have had from the West, and of 
 the 12,000,000 bushels coming down here and oxportou to Europe, I believe the whole 
 is paid lor in cash, before it leave- the American ports. A consignment business does 
 not come hero at all." He then said it was immaterial where they shipped from, 
 whether Now York or Boston, but preferred the St. Lawrence, chiefly because they 
 wore at home and could do their own business, and saved commissions and charges ; 
 that there was a margin in favor of Montreal by the inland freight of 5 to 8 cents, 
 but there were cheaper ocean freights from 1^1 ow York. 
 
 It was stated that at that date one firm in Montreal exported annually three or 
 four millions of bushels, principally wheat and corn. I am unaware of the number 
 of merchants purchasing that amount ; at present, four or five, would, at that rate, do 
 the whole export business of 1883. 
 
 As Mr. Eimmer stated, the grain was purchased at western ports for cash and sold 
 in Europe, the price of both purchase and sale being settled, the only indefinite char- 
 actor of the transaction, to the exporter, would bo the freight rates. If ho forwarded 
 by the St. Lawrence too large a quantity for the ocean tonnage seeking Montreal, the 
 ocean freights would rise, or, in the samo manner, inland freight rates might bo 
 increased. Tho only restriction to exporting by the St. Lawrence route would bo 
 insufficient capital to purchase, or the purchase of so large a quantity as to increase 
 transportation charges. New York and other American seaboard cities, at that time, 
 did a business of the same character, Montreal being under no disadvantage, except, 
 perhaps, the larger quantity of grain consigned to tho former port. Since that date 
 speculative trading has been adopted in all the American seabaard cities, while in 
 Montreal the business maintains its same character. 
 
 As stated elscwht^o, the Secretary of the Chicago Board of Trade remarks that 
 western shippers prefer to ship to seaboard cities, to be determined, according to tho 
 market upon arrival, whether it shall bo sold for homo consumption or export. Wo 
 bavo seen that in tho past Montreal had not a consignment business ; if she had, she 
 would now be under still greater disadvantages since tho advent of speculative trading. 
 Tho western merchant, if consigning to New York, can telegraph his biokor or 
 representative to sell to arrive, and he will know exactly how he stands. If he con- 
 signed to Monti'oal, there being no market or sales for future delivery, prices might 
 drop 5 or 10 cents per bushel by the date it arrived and the property sold. It is 
 (juite certain, therefore, that all western grain would seek a market where the 
 shipper, knowing the amount the property cost him, could soil for future delivery at 
 a price to protect himself against loss by fluctuation in prices during transit. Tho 
 Now York merchant, buying in the West, has the benefit of two markets, homo and 
 export, while the Montreal merchant has only one — he must export. Tho former 
 merchant buying, say 100,000 bushels of wheat, can, at homo, sell and buy futures 
 amounting to 1,000,000 or more bushels, make a book, as it were, and settle all the 
 
66 
 
 deals with the original purchase when it arrives. The export merchant in Now York 
 can either purchase spot grain, or for future delivery, at home or in western markets ; 
 the export merchant in Montreal has to purchase in the West, and when he has 
 purchased, cannot, as the former, protect himself by a speculative trading at home. 
 
 Now York merchants have found that this system of trading, since its adoption, 
 has been greatly beneficial to the export business. Formerly they ran up prices by 
 their purchases ; now thoy can buy options and trade them off for actual property, 
 without influencing the market. 
 
 European grain merchants also operate in the American speculative markets, 
 which would have a tendency to make trade gravitate to those ports. 
 
 The character of the grain business having radically changed at United States 
 Atlantic ports within the last ten years, if there are mcrchanta in Montreal doing 
 the amount of export business Mr. Rimmcr stated, ten years ago, ho was doing, thoy 
 must bo heavily woightod by the disadvantages Montreal presents, from the lack of 
 the protective and speculative element which has attratod foreign capital and specu- 
 lation and large quantities of Western grain to rival ports, enabling their competitors 
 in those ports to underquote prices on foreign orders. 
 
 Apart from the general features of this system, it is applicable to numerous 
 details of trade. 
 
 For milling purposes, in, say England, different grades and descriptions of wheat 
 have relative differences in value. A miller, to meet the demands of his business, 
 may require, a month hence, a quantity of wheat of a certain quality and will con- 
 tract to receive it at a fixed price a quarter, above or below what the price will be 
 at that time of some standard grade. To fill this oi'der the Liverpool merchant 
 cables to the Montreal merchant if he will deliver at Liverpool, a month hence, the 
 wheat on these terms. The latter will require to telegraph to Chicago or some other 
 western market and learn at what price he can purchase the wheat, which, with 
 transportation and other charges, with his commission or profit added, will be the 
 value of the property to him a month hence. If ho fills the order, before the wheat 
 arrives, prices of the speculative grade, upon which depends tho amount ho will 
 receive for his purchase, may fall and ho may lose heavily. 
 
 On the other hand, a merchant in Baltimore or New York, after learning at 
 what price ho can purchase the description of wheat required, goes on Change, and 
 if he finds he can sell an option for future delivery of the same number of bushels of 
 the speculative grade at a price suflSciently, within the relative difference offered, to 
 make his commission, he closes tho transaction and is protected from fluctuations in 
 value between the date of purchase and tho date tho property arrives. Tho grade of 
 wheat determining tho price may fall in the meantime, and ho may receive less than 
 the property cost him, but he meets no loss, as ho is compensated, either by being 
 ablo to fill his contract for fature delivery at a pi'ofit, or the purchaser of tho option 
 pays over tho difference between its cost and tho market price at tho date of delivery. 
 Having only a theoretical knowledge of tho subject, my deductions and illustra- 
 tions may, to a certain extent, bo inapplicable, which a man practically conversant 
 
67 
 
 with the business could dotoct; but I fool convinced thai the general statement is 
 correct; that this speculative trade has had a greater effect in increasing the export 
 grain trade of New York, Baltimore and other ports, and preventing an increase of 
 exports by tho St. Lawrence route, than the insignificmit toll upon the canals, which 
 (ho Now York Produce Exchange stated before tho Free Canal Committee of the 
 Now York Sonato, wore practically free. 
 
 This description of business has established a strong foothold in tho United 
 States; it pormeatos tho whole department, of trade. In one of the Produce 
 Exchanges which I visited, I found tho "call" in brisk operation of futures and 
 options in eggs, butter, poultry, &c. 
 
 What may bo tho moral and social effects of speculative business luturos or 
 otherwise, may bo loft to tho moralist. Tho opinion of its advantages and disadvan- 
 tages depends upon tho temperament and character of tho man by whom tho judg- 
 ment is formed. Its effect upon national development is, likewise, dependent upon 
 the tomperamont and character of tho nation. Certain it is, that without the traits of 
 character, the spirit of ontorpriso and investment in tho future, to which this system 
 is necessarily concomitant, the Western States would not have advanced so rapidly, 
 nor become the prosperous people thoy now are ; nor would the United States have 
 become the greatest nation in tho world. 
 
 M. G. Mullhall, F.S.S., an English economic writer, in a work entitled, "Pro- 
 gress of tho World," states : — 
 
 " American industry and population increase much faster than in Europe, and so 
 does tho wealth of tho nation. Everyday that tho sun rises upon tho American 
 people it sees an addition of £500,000 sterling to tho accumulated wealth of tho 
 Kopublic, which is equal to one-third the accumulation of mankind." 
 
 " The accumulation of wealth in all countries may bo estimated as follows : 
 
 United States £165,000,000 
 
 France 75,000,000 
 
 Great Britain 65,000,000 
 
 Germany 40,000,000 
 
 All other countries 145,000,000 
 
 The increase of wealth (United States) since 1850, would suffice to buy up tho 
 whole German Empire, with its farms, cities, banks, shipping, manufactures, &c." 
 
 Ho states tho income per inhabitant to be in Great Br!t.«^in, £33 ; United States, 
 £33 ; France, £25 ; Germany, £17. The percentage of taxes to income is : United 
 States, 10 por cent. ; Great Britain, 12J per cent. ; Germany, 15 por cent. ; France, 
 16 per cent. Tho percentage of debt to capital is : Germany, 5 per cent. ; United 
 States, 8 per cent. ; Great Britain 10 per cent. ; Franco, 14J por cent. 
 
 Legislative action may abolish canal tolls, but it cannot prevent New York, 
 Baltimore and other cities from speculating in futures and options, to the delriment 
 of Montreal's grain trade. 
 
68 
 
 Whoi'ovor this speculation exists, trade follows. As an illustration, we will sup- 
 pose, international impediments laid aside, that a legitimate business is established 
 at Port Arthur, Montreal doing a legitimate business, with the speculative market 
 that now exists at Duluth and New York in competition; if freight rates to each port 
 wore in any way similar, the grain of the North-Wost, or the principal portion of it, 
 would seek Duluth and New York, or some other speculative market. 
 
 RAILWAYS VERSUS WATERWAYS. 
 
 The prominence, railways have assumed in transportation, has temporarily 
 eclipsed the waterways. The great diversion from thorn of transport on both lake, 
 river and canal, has led to the question whether waterways are to bo completely 
 supplanted by railways. 
 
 When several companies controlled difforont scclions of the present eastern 
 trunk linos, as tho Now York Central, which is comprised of the roads of a number 
 of companies originally, through transport was expensive and confined to easily 
 handled freight. By the combination of ilifferont sections of road under one manage- 
 ment or control, from tho seaboard to the West, especially Chicago, the great railway 
 centre ot the Western States, also by tho extension of western railways from this 
 centre through tho grain-producing sections of the West, thousands of miles being 
 under one company and management, resulted in centralizing tho freight collected by 
 numerous feeders in Chicago. Tho eastern trunk lines made it their objective 
 point. 
 
 The introduction of fast and through freight linos of cars, first owned and con- 
 trolled by private companies, with tho officials of railways generally interested, with 
 definite rates paid for hauling the cars, according to mileage run, over the lines of 
 diff'orent railway companiot, facilitated and cheapened tho carrying of through freight, 
 transhipment from the cars of one railway company to another becoming unnecessary. 
 These car companies were enabled to make freight contracts embracing the carriage 
 over numerous different railways, their agents acting as solicitors of freight through 
 the Western States, while the waterways were dependent upon that which arrived 
 for storage at the different lake ports. The private linos being found to be a losing 
 business by tho railroads, tho rate they rocoivod for hauling the cars, allowing a largo 
 profit to the private companies, they introduced what is called co-operative freight 
 linos, owned or controlled by railway companies or their officials and under a separate 
 management or organization. Those linos have generally a distinctive name and 
 color. Thoy are hauled over a largo part of the railway system of the continent and 
 carry agricultural products from the producing point to that of consumption, or to 
 Atlantic ports for shipment. 
 
 The waterways being closed some months in tho year, place the producer and con- 
 sumer in the power of tho railways companies, who, during that portion of the yeari 
 can raise the freight rates on all products that aro unable to await the opening of 
 navigation, to tho utmost those products will stand. In this way numerous articles 
 which could be, with equal facility and less cost, transported by water, have gone to 
 
69 
 
 the railways, as those compollod to send freight by rail find it more advantageous to 
 make contracts covering the year, on the condition that the railways have the carry- 
 ing during the season of navigation. 
 
 At such points as botwoon Chicago and other lake poi-ts, and Buffalo, the rail- 
 way companies found it to their interest to own and control steamer linos. As has 
 been shown proviously, they have vessels of some 93,000 tons carrying capacity, ply- 
 ing between these ports. These gigantic corporations have oomo under the control 
 of a few individuals, by methods which, in the ordinary transactions of life, would 
 receive a hard name. Their roads, as in Belgium, France, Germany, where railways 
 are either under, or partially under, the control of the State, are not operated on an 
 equivalent for capital expended and expense of operation, but for the advantage and 
 interest, and the aggregation of capital in the hands, of a few individuals, by the 
 spoliation of a large number of legitimate investors. Railways, upon this continent, 
 cannot be compared with waterways by any of the axioms of political economy 
 which govern the relations of capital and labor, in reference to the absolute economy 
 of transport. 
 
 Steamers on the lakes aregonorally owned by individuals or companies, who have 
 placed a certain amount of capital in a legitimate investment, expecting a fair return 
 for that capital. It is said to bo a peculiarity of railway wars and reduction of freight 
 rates, that they often occur during the season of navigation. The last groat war it 
 is said, cost the railways many millions of dollars, which loss is borne by the bond- 
 holders of the road, the original stock being generally valueless, and is distributed 
 amongst a large number of individuals. When the lake marine has either to lay up 
 or carry at a lois through the periodic disruption of iho rates agreed to by the trunk 
 lines, the loss fills upon the owner of a steamer or steamers, who has invested the 
 chief part of his capital, perhaps, expecting only a legitimate return. His business is 
 disorganized, and by successive repetitions of these wars, the shipping interest 
 becomes paralyzed, as in 1881. 
 
 It is said that the southern trunk lines, whose business is not so much affected 
 by the northern water routes, find that while unpaying freight rates may be to the 
 advantage of the roads running contiguous to the lakes in depressing the marine 
 interest, they do not reap a proportionate benefit. Besides these questions, the 
 actual cost of transport has been decreased since the steel rail has boon used upon 
 railways, as tho statistics of the freight rates per ton mile show. 
 
 The introduction of heavier freight engines, increased loading of cars and num- 
 erous details in railway management, have actually cheapened transport. But thia 
 decrease does not alone apply to railways. There has been as marked a reduction in 
 the cost of transport by the lakes, from the increased size of propellers, improvements 
 in machinery and equipment, which have led to complete changes in lake transport. 
 
 In comparing canal with railway transport, the former may bo divided into 
 
 three classes : — 
 6 
 
 
FirHt. — Tho puicly artificial watorwa}', consisting of tlio formation of a canal, for a 
 groat length, of small sectional area, and for which tho water supply is an important 
 consideration. 
 
 Second. — There is the canalized river, or river rendered navigable by canals and 
 duras, short reaches of canal and locks, forming a slack-water navigation connected 
 by canals. 
 
 Third.— Wo have ship canals of large capacity, and abundant supply of water of 
 short length, cither connecting seas, lakes, or reaches of a great rivor. 
 
 In any comparison with canals, the offccl of railways upon each description should 
 be taken into account. 
 
 Of tho first description, tho canals in Great Britain are an instance. There are 
 over 2,500 miles of canals, of limited supply of water and restricted capacity. It was 
 found necesnary, in Great Britain, by tho railway companies, to prevent competition 
 of tho canals in through traffic, to buy up connecting links in tho different systems, 
 even with what wo would call ditches, and with the railways controlling many of 
 Ibem, a large traflBc in heavy and bulky articles is done. Of the same class, there 
 are, in tho United States, some 2,500 miles, with a depth of from 4 to 7 feet of water. 
 On their traffic tho railways have made inroads. 
 
 It is assorted by some, although, except for the heavier and less valuable 
 articles of transport, their day is past, they have paid and still pay, many limes over, 
 tho cost of construction and operation in the indirect saving to the countries they 
 traverse, by freeing them from railway monopolies. Even where little business is 
 done, they cause a groat reduction in freight rates. 1 was informed by the Secretary 
 of tho Board of Ti-ade in Chicago that where the railway running parallel to the 
 Illinois and Michigan canal came into competition with the canal, it reduced its rates 
 one-half, and a short distance from the diverging point that they were doubled. 
 
 The most important of the artificial canals of considerable length, is the Erie. 
 It has outlived the rest in usefulness. 
 
 In tho second group of canals or canalized rivers. We have the improvomenls 
 mado by tho Federal Government in tho Illinois Eiver, by the construction of locks 
 and dams, thereby completing navigation from Chicago to the Mississippi. There 
 is also, on tho Fox and Wisconsin River, improvements, dams and locks, now under 
 construction, and forming a navigable waterway through Wisconsin, from Green 
 Bay, on Lake Michigan, to tho Mississippi, a distance of 270 miles. In Canada tho 
 Eideau Canal comes under this class, as well as the Trent, the Ottawa Navigation, 
 and the Richelieu Navigation, to Lake Champlain. These canals have a plentiful 
 supply of water, and tho short mileage of canal, as compared with tho long reaches 
 of navigable water, render them a cheap route for transport, with which railways 
 can never compete for the carriage of certain products. Those will always retain 
 their imiwrtance, not only on account of the immense saving or indirect advantages 
 of competing routes to tho railways, but also for tho ti-ansport of those articles which 
 the railways cannot so economically carry. 
 
91 
 
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 )orlant 
 
 alH and 
 incclod 
 
 yator of 
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 boro are 
 , It was 
 » petition 
 systoms, 
 many of 
 188, thoro 
 of water. 
 
 valuable 
 mcs over, 
 ,rie8 they 
 lusiness is 
 [Secretary 
 ol to the 
 its ratea 
 blod. 
 
 the Erie. 
 
 ovomonts 
 of locks 
 
 )i. There 
 
 low under 
 m Green 
 
 anada the 
 avigation, 
 plentiful 
 g reachea 
 railways 
 ys retain 
 dvantagoa 
 oles which 
 
 
 
 Heavy articles increase as the country nugmontg in population. As towns and 
 cities spring up, coal, sand, planter, lumber, ores, salt, Btone, brick and numerous 
 other bulky articles will bo required. 
 
 In the third class, wo have tho canals connecting largo bodies of water, such as 
 tlio Suez Ctinal, tho Panama Canal, now in course of construction, and various other 
 ship canals in ditforcnt parts of the world. To this class belong tho St. Mary's and 
 the Welland Canals, as well as those of tho St. Lawrence Rivor. It is obvious that any 
 comparison of canals of this description with such as tho Erie, and other canals of 
 that class, is erroneous. Although, tho construction of the Erie Canal marks an im- 
 portant epoch in the history of the United States, that no work in the world has 
 a greater historic importance, it baing tho great medium of opening up and settling 
 the Western States, in building up the country it traverser and New York city, still 
 its importance, in a structural and engineering sense, is in no way commonsurato. 
 There is no doubt that tho railways have and will divert a groat proportion of the 
 traffic of small canals, except hoavy, bulky and cheap articles. 
 
 For railroads to supersede the St. Mary's, Welland and St. Lawrence Canals, 
 they must supercede all natural waterways, supplant tho lako marine of the United 
 States, and coastwise steamers plying between ocean ports, leaving no traffic for tho 
 vessels except across tho ocean or between points whoro it is impossible to construct 
 a railway. 
 
 In Franco tho inland waterways have attained a degree of prominence unap- 
 proachcd in other countries. According to the report of W. Watson, Esq., Ph. D., 
 Honorary Commissioner of the United Stales, at tho Vienna Exhibition, 1813 (later 
 statistics are at present unavailable), tho waterways are about 7,000 miles in length, 
 consisting of about 3,000 miles of canals, 2,000 milos of canalized rivers, and 2,000 
 miles of uncanalized rivers; In 1875 there were carried by water transport, 
 1,748,500,000 tons of freight, besides a largo quantity of wood. 
 
 Tho canals of England are estimated to carry annually some 23,000,000 tons of 
 freight, and are in length some 2,500 miles. 
 
 Tho United States canals, according to tho fourth volume of the Census of the 
 United States, 1880, are some 2,500 miles in length, and carried, in that year 
 2l,04'4,292 tons. 
 
 Tho canals of Canada have tho least percentage of canal navigation, in compari- 
 son with tho water-ways rendered navigable, of any other country. Their combined, 
 length is only some 113 miles (exclusive of the Trent Navigation and St. Peter's 
 Canal.) Tho number of tons of freight carried in 1883 (fiscal year) was 2,607,570 tons. 
 
 In Franco, there was expended, up to 1873, $157,000,000 on canals, and 
 $83,000,000 on inland waterways, or, in all, some $240,000,000. In tho United States 
 tho cost of the construction of the canals now operated was $170,000,000. 
 
 In Canada, the total expenditure upon canals, including that of the Imperial 
 Government, is some $ 15,000,000. This amount may be compared with that expended 
 by the various States of tho United States. New York State has expended 
 6i 
 
$62,000,000; Pennsylvania, $34,()00,()00i Ohio, $15,000,000; Illinois, $6,500,000. 
 This oxpondituro does not inoltido abandoned canals, of which, in addition to 2,600 
 miles now operated, thoy were in length 1,954 miles, and cost 844,013,166, of which 
 Now York State expended $10,240,000; Pennsylvania, 812,750,000 ; Ohio, $3,250,000; 
 and Indiana, $7,725,000; — (round numbers, and includes expenditure by private 
 corporations). 
 
 The greater proportion of the United States canals was built before the era of rail- 
 ways. Thoy were purely artificial, of small sectional area, for local traffic and short dis- 
 tances. As the country settled, the water supply of many became deficien t ; the sectional 
 ai*ea was decreased by sediments and deposits, forming a very imperfect navigation, 
 which the construction of railways superseded for transportation, leading to the 
 abandonment of some, and the maintenance of others chiefly as regulators of freight 
 charges by the railways. Of the 2,600 miles now in operation, with a very short 
 mileage excepted, thoy are of limited capacity, with a depth of from 5 to 7 feet, and 
 many with difficulty supplied with water. Eoferonce is made to the American 
 canals on account of comparative statistics of their traffic forming the etock argu- 
 ment, both when the decrease in traffic upon our own canals is discussed, and when 
 opponents to their completion attempt to present any facts in support of their 
 assertions. 
 
 Taking our different systems, it is obvious how erroneous the comparison is 
 with artificial canals, when the great extent of navigable water opened up by a short 
 canal mileage is considered. 
 
 Richelieu River and Lake Champlain Navigation. 
 Sorcl to Whitehall, distance 192 miles; canal navigation, 12^ miles. 
 
 Ottawa Navigation. 
 Lachino to Ottawa, distance 112 miles; canal navigation, 7 miles. 
 
 Rideau Navigation. 
 Ottawa to Kingston, distance 126J miles; canal navigation, 16 J miles. 
 
 St. Lawrence Navigation (^River). 
 Quebec to Prosqu'Ile Harbor (Murray Canal) distance, 411 miles; canal navi- 
 gation, 50 miles. 
 
 St. Lawrence Navigation (^Lahe). 
 
 Presqu'Ile Harbor to Port Arthur, distance, 1,000 miles ; canal navigation, 28 
 miles. 
 
 "We thus have, by lake and river, an inland navigation of some 1,850 miles, 
 opened up by the construction of 113 miles of canal. 
 
 The limited success of the canals is not a question of economic transportation, 
 but purely political and commercial. They have been in advance of the population 
 and productions of the country. 
 
 Leaving in abeyance the smaller system of water-ways, the absurdity is ap- 
 parent of comparing the groat lakes, the enlarged Welland Canal, the Eiver St. 
 
73 
 
 Lawronco and its enlarged canals, with tho Erie Cunal, and endeavoring, by quoting 
 a maHS of Htatistics relative to it and tho railways running parallel, to prove tho 
 Huporiority and economy of railways over waterways as a moans of tranHport for 
 that class of products now water-borno on the groat lakes. 
 
 In tho comparison of the two methods of transport, take tho propeller and her 
 tow, previously cited. On tho Now York Central Railway, in 1881, tho average 
 amount of freight carried per train was 218 tons. On this basis, it would take thirty, 
 four trains of eighteen cars, or 612 cars and thirty-four engines, to transport tho 
 cargo moved by one propeller and throe consorts; or, take a propeller alone, of tho 
 capacity of the WoUand Canal, enlarged to H foot depth of water, it would take 
 eight trains, or eight engines and 140 cars, to transport its cargo. 
 
 Tho only correct judgment that can bo formed of the capabilities of tho St. 
 Lawrence route is to bo made from tho statistics of tho United States marine, 
 which is nearly as valuable as tho Canadian mariao — oooan and inland. 
 
 In 1816 the first steamboat was built upon the lakes. Between that time and 
 1841 there had boon 72 built of an aggregate tonnage of 17,000 tons. In tho latter 
 year the introduction of the propeller was the initial step in cheap water transpor- 
 tation. It has now totally supplanted tho side-wheel steamer, and is rapidly doing 
 away with sailing vessels, or causing thorn to be converted into barges or consorts. 
 
 For navigating the original Wolland Canal, the first propeller upon the lake 
 was built at Oswego in 1841 — the " Vandalia " — of 128 tons register. Among tho 
 first propellers built above tho Wolland Canal was tho ''Hercules, at Buffalo, in 
 1843. In 1844 there wore five below the Wolland Canal, at Oswego, of an average 
 registered tonnage of 146"4 tons ; and above tho Welland Canal, on Lakes Erie and 
 Michigan, there had been built, in 1844, five propellers of an approximate average 
 tonnage of 283"4 tons. 
 
 Table shows the Number of Freight Propellers, with their aggregate and average 
 Tonnage, in 1841, 1814, 1850, 1860 and 1880. 
 
 Years. 
 
 Number. 
 
 Aggregate 
 Tounage. 
 
 Average Ton- 
 nage. 
 
 1841 
 
 1 
 
 10 
 
 50 
 
 197 
 
 202 
 
 128 
 
 2,149 
 
 16,427 
 
 67,073 
 
 139,154 
 
 128 
 
 1844 
 
 1850 
 
 1860 
 
 216 
 3281 
 340} 
 689 
 
 1860 
 
 
 
 Since 1880, as elsewhere shown, the number and capacity of freight steamers 
 have been increasing. Of these it will bo interesting to note the following 
 statistics : — 
 
Statement of the Number, Tonnage, Value, Men employed and Earnings for services, tons 
 of Freight, Fuel, &c., of Freight Steamers upon the Northern Lakes, under U.S. 
 register for the year 1880 . Compiled from Vol. IV., U.S. Cctisus. 
 
 Number. 
 
 Tonnage. 
 
 Value. 
 
 Men 
 Enipl :;};;'J. 
 
 OroBB 
 Earnings. 
 
 $ 
 6,173,597 
 
 Paid 
 
 for 
 
 Services. 
 
 Tons 
 of Freight. 
 
 Coal 
 Burnod. 
 
 202 
 
 139, 164' 16 
 
 7,694,300 
 
 3,793 
 
 1,489,678 
 
 3,166,313 
 
 Tons. 
 220,830 
 
 The Btatislica given in the above table refer to freight steamers only. In the 
 following table all classes of steam vessels on the Northern Lakes are included : — 
 
 Number. 
 
 Tonnage. 
 
 Value. 
 
 Men 
 Employed. 
 
 Gro33 
 Earnings. 
 
 Paid 
 
 for 
 
 Services. 
 
 Tons 
 of Freiglit. 
 
 4,308,171 
 
 Coal 
 Burned. 
 
 047 
 
 222,290-46 
 
 $ 
 13,918,925 
 
 9,143 
 
 12,136,228 
 
 $ 
 3,293,904 
 
 Tons. 
 488,610 
 
 The following table, also from Vol. IV., U.S. Census, shows at that date the best 
 results of compound engines and propellers. These propellers, known under the 
 name as below, or Anchor Lino, are owned by the Pennsylvania Eailway Company 
 and run in connection with tluit road : — 
 
 Statement of Erie and Western Transportation Company's Buffalo and Chicago Line, 
 showing Steamers, Carrying Capacity, Trir^s made, Miles run, &c., 1881. 
 
 Names 
 
 of 
 
 Steamers. 
 
 Registered 
 Tonnage. 
 
 Actual 
 Ciui-ying 
 Capacity 
 in Tons of 
 2,000 lbs. 
 
 Style 
 
 of 
 Engine. 
 
 Triiis 
 made. 
 
 Average 
 Tons 
 
 of Coal 
 
 per 
 
 Trip. 
 
 Total 
 .Miles run. 
 
 Average 
 Pounds of 
 
 Coal 
 consumed 
 per hour. 
 
 Speed 
 per hour 
 
 in 
 Geograph- 
 ical 
 Miles. 
 
 Arizona 
 
 924 
 1,705 
 1,712 
 1,404 
 1,288 
 1,610 
 1,010 
 l,7;i2 
 1,720 
 1,709 
 1,020 
 
 996 
 1,007 
 
 1,000 
 2,400 
 2,425 
 1,550 
 1,575 
 1,9.50 
 1,875 
 2,100 
 2,075 
 2,000 
 2,023 
 1,275 
 1,025 
 
 Compound. . 
 
 do 
 
 do ... 
 Coudimsing 
 Comnouud... 
 
 do 
 
 do 
 
 do ... 
 
 do ... 
 
 do ... 
 
 do ... 
 
 do ... 
 
 Sy dioii con- 
 
 uenbing.... 
 
 13 
 12 
 4 
 14 
 13 
 15 
 12* 
 
 4 
 
 13i 
 
 \a\ 
 
 11 
 12i 
 
 104 
 117 
 128 
 153 
 l(i3 
 110 
 118 
 125 
 i:i9 
 127 
 117 
 119 
 
 114 
 
 26,766 
 21,498 
 6,070 
 25,138 
 24,638 
 27,128 
 22,794 
 24,236 
 24,069 
 24,766 
 27,794 
 20, 164 
 
 22,433 
 
 853 
 1,034 
 1,097 
 1,527 
 
 987 
 1,037 
 
 983 
 1,066 
 1,150 
 1,161 
 1,052 
 
 028 
 
 1,008 
 
 9 02 
 10 ■ CO 
 9 '66 
 9-52 
 82 
 9 '39 
 8 '72 
 8-94 
 800 
 9-31 
 9 33 
 8-30 
 
 8-77 
 
 Lehigli 
 
 Oiii''ion 
 
 Pliilddclphia 
 
 Alaska 
 
 LycominBf 
 
 Conemaugh 
 
 Delaware 
 
 Conestoga 
 
 Juniata 
 
 Wissahickon 
 
 Gordon Campbell 
 Annie Young 
 
15 
 
 In 1883 tho enrolled lonnngo of the Uiiitod States vessels upon tlio northern 
 lakes was : — 
 
 Aggregate Average 
 
 No. Tonnage. Tonnage. 
 
 Sailing vessels 1,373 310454.15 22() 
 
 Steam " 1,149 304019.82 265 
 
 Total steam and sail 2,522 615103.97 491 
 
 If we take an approximate estimate of SCO per ton steam, and $25 per ton sail, for 
 valuations, the value of steam tonnage, in 1883, would bo $18,278,509, and the sail 
 7,701,354, or a total value of United States marine, exclusive dI ;inal boats and 
 barges upon tho northern lakes, of some $20,000,000. 
 
 The enrolled registered tonnage of steam and sailing vosseld in the Province of 
 Ontario, 1^83, includes tugs and barges on tho iwa River, and barges at Kingston, 
 Tho following is an approximate estimate of sail and etoam tonnugo, deducting tho 
 above and including tho Canadian Pacific liailway rttcaraors. Wo use tho following 
 figures, not as statistics of tonnage, but for thodetermination of comparative values : — 
 
 Aggregate Average 
 
 No. Tonnage. Tonnage. 
 
 Sailing vessels 4i>:? 44,000 97 
 
 Steam " 352 04,000 182 
 
 Total steam and sail 804 108,000 279 
 
 Assuming for those vessels a similar value as above, which would bo high, as 
 tho steam tonnugo is not as valuable as tho American, with the exception of a few 
 propellers recently built and tho Canadian Pacific Eailway steamers, we have tho 
 following estimate of the value of sailing vessels, $1,100,000; value of steam vessels, 
 $3,840,000, or a total value of lake marine of, say $5,000,000, which is probably con. 
 sidorably higher than the actual value. 
 
 Transportation of Surplus Products or the North-West. 
 
 That the only route, for the cheap transportation of cereals, from tho North-West 
 is by tho lakes and St. Lawrence River, is evident. Clai.as are advanced with regard 
 to the Iludson B.iy route on account of shorter mile£.go, as tho solution of tho problem 
 of cheap transportation of heavy products from that country. 
 
 Tho disadvantages Montreal has boon under, and is still, from its five months' 
 closing of navigation, is well known — higher rales of insurance, and higher freight 
 rates, until recently. Many of these disadvantages can be remedied, which would bo 
 impossible with regard to tho Hudson Bay route. 
 
 From the evidence adduced before a Select Committe'^ of iho House of Commons, 
 it would appear doubtful if there wore throe months of navigation into Hudson IJay. 
 Por navigating, it would require the construction of a special class of steamers, which, 
 when plying upon other routes during the time navi^at'on was closed, would not bo 
 
•76 
 
 able to transport as economically as steamers construotod for navigating southorn 
 latitudes. It is certain that the disadvantages of Hudson Bay, with its three months' 
 navigation, to the Gulf of St. Lawrence, would bo much greater than the latter in 
 comparison with southorn Atlantic ports. There appears to be no harbor upon the 
 Bay except at Churchill ; its distance from Liverpool is practically the same as Mon- 
 treal. It may be confidently asserted, that for all time, freight rates with steamers 
 especially constructed and engaged in the trade, would bo 50 per cent, higher than 
 from Montreal to Liverpool. Taking the other end of the route, the railway from 
 Winnipeg to Churchill, the distance is unknown, but judging from the length of road 
 from Winnipeg to Port Arthur, it might bo taken at 700 miles, against 430 miles to 
 the latter. From Winnipeg to Port Arthur is a part of a great trans-continental 
 line, the year round ; for seven months iM is the head of an inland navigation, the 
 vessels on which will transport as largo .. ^argoas, perhaps, the size of vessels adapted 
 to navigate Hudson Bay will admit of. The Hudson Bay road has no outlet to 
 the ocean, except for, at most, three months, and will require to depend upon its local 
 traffic for the other nine. It therefore may bo asserted that the freight rates per ton 
 mile, will be, on that road, 50 per cent, higher than fi*om Winnipeg to Port Arthur. 
 But allow the same rates, for comparison of placing a ton of wheat 'a Liverpool by 
 each route. 
 
 Winnipeg to r^rt Churchill, TOO miles, say Ic. per ton mile Z 1 00 
 
 Fort Churchill to Liverpool, at $4 per ton 4 00 
 
 Total transport, ton of wheat, Winnipeg to Liverpool $11 00 
 
 Winnipeg to Port Arthur, 430 miles, Ic. per ton mile 4 30 
 
 Port Arthur to Montreal (enlarged canals) 1 70 
 
 Montreal to Liverpool, at $4 4 00 
 
 $10 00 
 
 If wheat is transported from Winnipeg to Liverpool for $10 per ton uja Mon- 
 treal, it will be certain to cost $20 via Hudson Bay. While the time of transit would 
 be a few days less, it could never compensate for the greater charges, shorter 
 season of navigation, and with disorganization of business for nine months. 
 
 For the transport of cereals of the North-West we, therefore, have three routes : 
 Port Arthur to Buffalo, and by rail or Erie Canal, to New York ; Port Arthur to Mon- 
 treal, by lakes and canals; Port Arthur to ports on Georgian Bay and rail to 
 Montreal and Port Arthur to Montreal, all rail. The approximate distance would bo: 
 
 Milea. 
 
 Port Arthur to New York via Buffalo and Erie Canal 1,370 
 
 " " " Montreal, lakes and canals 1,250 
 
 " " " " lakes and rail, C.P.E. route..... 980 
 
 
11 
 
 The advantagoB possessed by Buffalo is the larger vessel, if the Welland Canal is 
 not deepened. 
 
 With regard to the competition of tho lake and rail route to the canals, it is pre- 
 cisely similar to tho transport between Chicago and Buffalo. The railway companies 
 find it cheaper to transport by their own steamers, 900 miles by water, than 640 
 miles by rail. Other vessels transport this greater distance at one-third the rates of 
 rail. We have, on the Geo»'g',an Bay lake and rail route, 455 miles of rail to 725 miles 
 of water transport, nearly the same percentage of rail to water as between Chicago and 
 Buffalo. We may make an estimate of transporting a ton of wheat : 
 
 AU-Watcr. 
 
 Port Arthur to Montreal, 1,250 miles, at 1*36 mills per mile 81 TO 
 
 Lake insurance, say 30 
 
 Total cost $2 00 
 
 Lake and Sail. 
 
 Port Arthur to Owen Sound, lake, say 525 miles, at l-36raills per ton mile. ... $0 Tlf 
 
 Lake in8u;-anco 15 
 
 Elevating and transferring, Owen Sound, ^c. per bushel ICf 
 
 Owen Sound to Montreal, 455 miles, at 6 mills per ton mile $2 13 
 
 Total cost $3 76 
 
 Miles. 
 
 . 1,370 
 1,250 
 980 
 
 
 All-Sail. 
 Port Arthur to Montreal (all rail), say 1,000 miles, at 5 mills per ton mile.... $5 00 
 
 For lake and rail it will be observed that a low rail rate is taken, based upon tho 
 pool rates from Chicago to New York, of 30 cents per 100 lbs,, although less than half 
 the distance. It is probable 1 cent per ton mile would be a fair rate. By all-rail a rate 
 of 25 cents per 100 lbs, between tho same points, which the Canadian Pacific Ilailway 
 would find an unpaying rate, until the traffic became as groi t as upon the through lines 
 between Chicago and Now York. We have, therefore, wheat laid down in Montreal 
 by water at, say, 6J co'its per bushel ; by lake and rail, at 11|^ cents ; by all-rail, 15 
 cents, or 4i^ and SJ ^onts in favor of the water-way. There are two advantages in 
 addition in its favor : the lake vessels pay the shortage ; by rail tho quantity is not 
 guaranteed ; also, tho terminal charges are loss for grain afloat. 
 
 It is obvious that grain from tho west will, therefore, on the completion of the 
 enlarged system of canals, take the water-route if the Canadian Pacific does not dis- 
 criminate, in favor of the lake and rail route, in rail rates from Port Arthur westward ; 
 that is, if the grain transported to Port Arthur is delivered to tho all-water propellers 
 at the same rate per ton mile as charged in the pro-rating of tho through rate, to 
 propellers running in connection with tho east and west sections of the Canadicn 
 Pacific Eailway system. 
 
•78 
 
 The chief outlook for Montreal appears to bo the development of the North- 
 West and the control of shipments of its surplus products. 
 
 It is estimated in the United States' North- West, that the the cost of raising wheat 
 is $10 per acre, and a good average 16 bushels to the acre, which would be, say, a value 
 of $'20 per ton to the producer. It is believed that from the competition of other 
 wheat growing countries, with cheap labor, such as India, which is yearly exporting 
 to Great Britain a larger quantity — and in the latter country there cannot be a suc- 
 cession of bad harvests — for these and other reasons, prices in the future will not 
 bo as remunerative as they have been. Assume $37.50 per ton as an average price 
 for wheat in Montreal. The cost of transportation by rail in the North-West will 
 probably, for some years, be not less than from f to 1 cent per ton mile, if grain should 
 be carried, as previously estimated, from Port Arthur to Montreal for, say, $1.70 per 
 ton, which would leave $15.80 per ton for railway transport, to a point where wheat 
 would merely pay the cost of producing. By this approximate calcukJon, at a 
 distance of 1,580 miles westward of Port Arthui, the charges for transport would 
 render unprofitable wheat production for shipment to the Atlantic seaboard. 
 
 Another capability of the enlarged canal system, the advantages of which the 
 future will evolve, is the conversion of the great lakes, the River and Gulf of St, 
 Lawrence, into one vast inland navigation, from Thunder Cape to Capos Eay and 
 North. 
 
 An idea which prevailed with the projectors of the St. Lawrence Canals, and 
 favored by those interested in the marine of the American lake ports, was to ship the 
 products of the West directly to Europe in one bottom, and return importations in 
 the same manner, without transhipment. The increased facilities and reduced cost 
 of transferring cargoes, the constantly augmented carrying capacity and dimensions 
 of the ocean vessel reducing cost of importation soon demonstrated its infoasiblonoss. 
 
 In '8-49, it is stated, a vessel from Cleveland sailed down the lakes and around 
 Cape Horn to California. In 1855 an American vessel, the "Dean Richmond," 
 crossed the Atlantic ; in 1856, an English vessel, " The Madeira Pet," arrived at 
 Chicago. 
 
 These events are noted merely as the incidents of an exploded theory. 
 With regard to the lake vessel navigating the Gulf of St. Lawrence and economically- 
 engaging in trtjnsportation between the Lower Provinces and lake ports, conclusions 
 may bo advanced., the correctness of which the future may confirm. 
 
 One great disadvantage the lake marine labors under is the loss of interest and 
 detriment of property through the closing of navigation for nearly five months of the 
 year. There does not appear any reason why the properly constructed and designed 
 lake vessel should not bo adapted to engage in the carrying trade during the winter, 
 say between the West India Islands and Halifax, or Portland. Take, as an instance, 
 'he Canadian Pacific steamers on the Upper Lakes. They have crossed the Atlantic 
 in the autumn. If they nad been constructed a few feet less in length, they would 
 be able to steam down the lakes and through the enlarged canals nearly fully loaded 
 
19 
 
 before the closing of navigation, and engage in any ocean coastwise traflSc during the 
 winter, where there is business to bo done. 
 
 To return to transportation between the Gulf of St. Lawrence and the Upper 
 Lakes, wo will take the present American lake propeller with iron and steel hulls, or 
 iron frames with oak planking, as now employed in coal, ore and grain transporta- 
 tion, or a modified type of the Canadian Pacific steamer, where carrying capacity docs 
 not require to be subjected to speed and passenger accommodation. Those propellers 
 withstand the gales and seas of Lakes Huron and Superior in the autumn, and would 
 be equally safe in the Gulf of St. Lawrence. 
 
 This class of vessel would load down to IG feet upon the lakes and from Mon- 
 treal eastward (lighting to 14 feet through the canals) and carrying fully 2,000 tons 
 of cargo. 
 
 From St Johns, Nfld., to Port Arthur is some 2,500 miles. We therefore have a navi- 
 gation of that extent, with only 72 miles of canal navigation. The longer the voyage 
 the cheaper the transport, pre-supposing that there will bo products to be moved, 
 theie will, in the future, bo not alone a lake navigation but an inland navigation extend 
 ing between the Eastern and Western Provinces. From Buffalo to Chicago, and vice 
 versa, vessels engaged in transporting coal and grain a distance of 900 miles, receive 
 about 1 mill per ton mile for freight. Vessels engaged in transporting ore from 
 Escanaba to Cleveland where they have frequently no cargo in return, obtain about 
 2 mills per ton mile for 550 miles. It therefore may bo safely concluded that pro* 
 pollers could transport freight from the Gulf to the lakes, a distance of from 1,000 
 to 2,500 miles, for 1 mill per ton mile. Taking, for example^ several ports in the 
 Maritime Provinces — Shodiac, Charlottetown, Pugwash, Pictou and Sydney — grouping 
 these, a distance of 1,200 miles from Toronto embraces all, and sufficiently approxi- 
 mate for calculating cost of transport. 
 
 Those ports can ship the products of the principal coal mines in Nova Scotia, 
 also free, or sandstones of all descriptions, rod granite, grindstones, plaster or 
 gypsum and products of fish. 
 
 Take coal, at $2 per ton on the vessel with freight at 1 mill per ton mile, or $1.20 to 
 Toronto, it would bo laid down in that city for $3.20 per ton, to which should bo added 
 the canal toll. The same rate will apply to any other bulky articles, the freight 
 rates of return cargoes depending on the class of products shipped. 
 
 The Lower Provinces require a great quantity of salt ; the English and other 
 salt being carried as ballast, is sold at cheap rates. During the sitting of a Select 
 Committee upon laterprovincial Trade, in 1883, the member of that Committee inter- 
 ested in the success of the salt industries upon Lake Iluron, enquired of various 
 gentlemen giving evidence if it were possible to introduce the western salt into the 
 markets of the Lower Provinces. Ho stated one of the salt manufacturers had 
 reduced the price of salt, and was making efforts to compete with English salt. 
 
 The distance from Godorich to the ports previously mentioned is about 1,600 
 miles. With the rate of freight previously taken, and including canal tolls, it could 
 
80 
 
 be transportod for $1.80 por ton. It was said to cost $2.50 por ton ai the salt wolls. 
 Taking $3 delivered tu the vessel, the salt could be supplied to the consumer at a 
 cost of $-1.30 per ton, and coal or other products returned. 
 
 The Maritime Provinces require various grades and descriptions of flour for the 
 fishermen and those engaged in their industries. With the enlarged canal system, 
 if they possess sufficient enterprise, they would manufacture flour as suited to their 
 wants, both for themselves and Newfoundland. Although they have not extensive 
 water-power, coal is sufficiently cheap to compensate, and enable thorn to enjoy the 
 profits of their own milling. 
 
 Propellers could ship wheat at Port Arthur and Chicago, according to the kind 
 of wheat required, and lay it down at a milling centre, a distance of 2,100 miles, at 7 
 cents por bushel, and return a cargo of their products at $2.30 por ton freight. 
 
 Those conversant with matters of trade, and with sufficient foresight to dis- 
 cern to what extent Intorprovincial Trade may be dovolopod in the future, are better 
 able to form an opinion upon this subject than a theorist. 
 
 The rates of freight predicated may seem low, and are not theoretical, but are 
 founded upon the recorded freight rates upon the upper lakes. Their applicability to 
 this route can only be disputed on the ground of a certain extent of canal navigation, 
 the small percentage of which, in comparison with the great length of free and open 
 water, should not render the comparison inapplicable. 
 
 The superiority of water over rail transport for heavy products is illustrated on 
 this route, where there is, perhaps, the lowest rail rates in the world. The Interco- 
 lonial Bailway has no interest to pay to bond or stockholders ; it is op<(rated for tho 
 general benefit of the country, and only with the expectancy of balancing the acf '-.jil 
 expendituro with the receipts. In addition to this, they load tho coal upon the Grand 
 Trunk cars, which would otherwise return empty, so that the cost of transport is 
 a-ierely the difference between hauling empty cars and loadeJ. 
 
 The rate for coal is 3 mills per ton mile, or treble what propellers upon the 
 the upper lakes are carrying for, and at equal speed. 
 
 In concluding the subject of railways versus water-ways, the difficulties under 
 which the latter labor may be cited. The absolute economy of transport is 
 undoubted, but fro3i many causes it is rendered inoperative. Taking, first, our smaller 
 system of water-ways and transportation on short distances, one difficulty is terminal 
 facilities. These are provided by railways. Every convenience for shipment and 
 distribution is provided. Take, for instance, tho shipment of phosphate from 
 Buckingbim to Montreal ; nearly the total quantity is shipped by :'ail. For what 
 reason ? The i-ailway company provides sidings, builds bins and givo.^ every facility 
 for shipment. Upon the Ottawa River there may bo only a dolapidated wharf or no 
 wharf at all, rendering .he loading of the barge expensive and inconvenient. On the 
 other hand, if a wharf was provided with trestles, pockets, and shutes, whore cars, if 
 a railway or tramway were built, would run up and dump thoir load ; the barge could 
 come alongside and have her cargo delivered to her, from the shutes, in an hour, at 
 
81 
 
 comparativ oly no oxponso. The transport to Montreal by water would bojnuch lees 
 than by any railway, if operated upon economic principles. 
 
 In other cases the same difficulty may occur at the point of discharge, the 
 superior facilities of the railways militating against the cheapness of transport by 
 water. 
 
 Another instance under our immediate observation — the shipment of lumber by 
 rail from Ottawa. That shipped by barges to Lake Champlain or Albany is to a market 
 or depot for distribution to the manufacturer which may be done by railways requir- 
 ing a single or double handling. On the other hand the manufacturer or consumer re- 
 quiring a car-load or more of lumber, he may order from Ottawa; the car goes directly, 
 perhaps, by railway siding into the manufactory, saving handling and commission to 
 middle men. 
 
 The transport by water although cheaper ;)er se necessitates terminal facilities, a 
 point of shipment where products naturally centre, and a point of discharge where 
 a market or natural centre of distribution is created ; whore the inducements are 
 sufficient to obtain the investment of individual or corporate capital in providing 
 these facilities, which railways are willing to provide for each separate industry or 
 manufactory, a railway may run adjacent to. 
 
 When proper facilities have been provided, railways in freight i-ates may dis- 
 criminate in favor of all-rail, where, under an economical adminstration solely 
 interested in transportation by the cheapest methods, products would be conveyed 
 by wuter. 
 
 In 1872 the Senate of the United States appointed a Select Committee comprising 
 some of the ablest members of that body, to investigate and report upon the subject 
 of transportation between the interior and the seaboard. A full and extensive 
 enquiry was made, the evidence taken before the Oommittee making a printed 
 volume of some 1,000 pages. They submitted a lengthy report known as •' Transpor- 
 tation Routes to the Seaboard." This investigation covered both rail and water 
 transport, and as stated in their report, involved a study of railway abuses in all 
 their various phases, and the whole question of the economy of transport by rail 
 and water. 
 
 The examination extended to the several systems of railway regulations in 
 Europe that of " Great Britain, representing the system of direct Government regu- 
 lation without financial aid o.' co-partnership ; of Franco, the system of financial aid 
 or co-partnership with the mout rigid surveillance and regulations ; of Belgium, the 
 system of indirect regulation of the whole through State ownership and manage- 
 me!ut of a part, and entire non-interference with the private corporations, except in 
 matters of safety and police." They state that, '' cho remarkably low rates in Belgium 
 furnish a powerful argument in favor of State ownership, and that cheap transporta- 
 tion is to be obtained only through competition under Governmental control." 
 
 They strongly favored the water-ways of the lakes and Eivor St. Lawrence, or 
 northern route. They remark " that through the establishment of reciprocal trade 
 
82 
 
 relations with tho Dominion of Canada, which shall induce the construction of the 
 Caughnawaga Canal (if such an arrangoraont can bo made), and which will encourage 
 Canadian shipmasters to compote for the carrying trade of the lakes, will also mate- 
 rially cheapen the cost of transport to Now England." 
 
 "The construction of the canals of Canada began in the year 1821, and was con 
 tinned for some years, with no other purpose than that of opening avenues for inter- 
 nal communication botwoon the diiforont section of that colony. JJit the develop- 
 ment of the resources of our North- Western States, consequent upon the opening of 
 tiio Erie Canal, in the year 182tf, soon led to the adoption of an extended system of 
 improvements, designed to compote for the rapidly increasing commerce of that sec- 
 tion of our country. That competition is more active to-day than ever before, and it 
 constitutes an important feature in the question as to the best mode of transporting 
 the surplus products of the West to the seaboard and to foreign countries. The 
 spirit of enterprise which has characteri/.ed the Province of Canada in the inaugura- 
 tion and construction of her canal system, has not been surpassed in boldness and 
 persistent energy by those etYorts which curried to successful completion the canal 
 system of New York, and which have made that State the first in the American 
 Union in population and in wealth, and her chief seaport, New York, the commercial 
 and financial metropolis of the Western world." 
 
 " The business of the Wolland Canal not having very materially increased, ia 
 undoubtedly due to the fact that a large proportion of the vessels built on the upper 
 lakes during the last ten years are too largo to pass through tLo locks of the present 
 canal. The Welland Canal is now being enlarged, so as to admit the passage of 
 vessels of 1,000 tons, carrying about 50,000 bushels, or three times the capacity of 
 vessels which can now pass through its locks." 
 
 The following summary of some of the conclusions and recommendations result- 
 ing from this enquiry may be of interest and, in some dogroo, pertinent to the 
 subject. 
 
 " That all railway companies, freight lines, and other persons or organizations 
 of common carriers, engaged in transporting passengers or freights from one State 
 into or through arothor, be required, under proper penalties, to mcke publication at 
 every point of shipment, from one State to anoth jr.of thoir ratoi aid fares, embracing 
 all the particulars regarding distance, classifications, rates, special tariffs, drawbacks, 
 &c., and that they bo prohibited from increasing such rates above the limit named 
 in the publication, without reasonable notice to the public, to be [•"escribed by law. 
 
 " That combinations and consolidations with parallel or competing lines are 
 evils of such magnitude as to demand prompt and vigorous measures for their pre- 
 vention. 
 
 " That all railway companies, freight linos and other organizations of common 
 carriers employed in transporting grain from one State into or throngh another, 
 should be required, under proper regulations and penalties to be provided by law, to 
 receipt for quantity, and to deliver the same at its destination. 
 
 " That all railway companies and freight organizations receiving freights in one 
 state, to be delivered in another, and whose lines touch at any river or lake port, bo 
 prohibited from charging more to or from such port than for any greater distance on 
 the Ltamo line. 
 
 " St)ck inflations, generally known as stock waterings, are wholiy indefensible; 
 but the remedy for this evil seams to fall peculiarly within the province of the 
 States, who have created the corporations from which such practices proceed. 
 
 " The evil is supposed to bo of such magnitude as tO require prompt and efficient 
 State action for its prevention, and to justify any measures that may be proper and 
 within the range of national authority. 
 
 " It is believed by the Committee that great good would result from the passage 
 of State laws, prohibiting otBcors of railway companies from owning or holding, 
 directly or indirectly, any interest in any non-co-operative freight line or cur 
 company operated upon the railroad with which they are connected in ouch otBoial 
 capacity. 
 
 
83 
 
 " Competition which is to secure and maintain cheap transportation must embrace 
 two OBsential conditions : — 1st. It must bo controlled by a power with which combin- 
 ation will bo impossible. 2nd. It must operate through cheaper and more ample 
 channels of commerce than are now provided. 
 
 " Railway competition, when regulated by its own laws, will not effect the object, 
 because it exists only to a very limited extent in certain iocalitics ; it is always 
 unreliable and inefficient, and it invariably ends in combination. Hence, additional 
 railway lines, under the control of privatocorporations, wiilafibrd no substantial relief, 
 because self interest will inevitably lead them into combination with existing lines. 
 
 "The only means of securing and maintaining reliable and otfoctive competition 
 between railways is through national or State ownership or control of one or more 
 lines, which, being unable to enter into combinations, will servo as regulators of 
 other linos. 
 
 " The uniform testimony deduced from practical results in this country and 
 throughout the commercial world is, that water-routes, when properly located, not 
 only afford tho cheapest and best known means of transport for all heavy, bulky and 
 cheap commodities, but that they are also tho natural competitors and most effective 
 regulators of railway transportation. 
 
 " Tho above facts and conclusions, together with the remarkable physical adapta- 
 tion of our country for cheap and ample water communications, point unerringly to the 
 improvement of our great natural water-ways and their connections by canals or by 
 short freight railway portages under control of the Government, as the obvious and 
 certain solution of the problem of cheap transpoi tation. 
 
 "After a most careful consideration of the merits of various proposed improve- 
 ments, taking into account the cost, practicability and probable advantages of each, 
 the Committee have como to the unanimou:^ conclusion that the following are the 
 most feasible and advantageous channels of commerce to be created or improved by 
 the National Government, in case Congress shall act upon this subject, viz.: — 
 
 " 1. Mississippi Eiver. 
 
 " 2. A continuous water lino of adequate capacity, from tho Mississippi River to 
 the City of New York, vid the northern lakes, 
 
 " 3. A route adequate to the wants of commerce through the central tier of States, 
 from tho Mississippi liiver, vid tho Ohio and Kanawha Rivers, to a point in West 
 Virginia, and ihonce by canal and slack-water or by freight railway to tide water in 
 Virginia. 
 
 " 4. A route from the Mississippi Rivor, vid tho Ohio and Tennessee Rivers, to a 
 a point in Alabama or Tennessee, and thence by canal and slack-water or by u 
 freight railway to tho ocean. 
 
 Tolls upon the St. Laavrence Route. 
 
 Upon what principle, the tolls upon tho Canadian canals havo been levied is 
 difficult to dotermi.\e. A specific sum per ton was char/^ed upon articles tran- 
 B])orted through the Wolland CJanal and tl-.rough each of tho St. Lawrence Canals; 
 Tho several canals on tho Rivor St. Lawrence were subsequently grouped together 
 under tho name of ^'^o St. Lawrence Canals, the route divided into toctions, with a 
 specific toll for each. In 1850, tho toll sheet shows the first indications of tho desire 
 to attract to tho St. Lawrence roulo the traffic of tho Erie Canal. The object was 
 not, as now, to obtain the export trado, which was little, only 11,018 bushels of wheat 
 and corn being exported from Montreal in 1850, Tho desire was apparently to 
 divert from tho Erie and Champlain Canals tho supply and the trade of the New 
 England States. A through rate was given on the 21st November, 1850, from Lake 
 Erie to Lake Chamjilain. Taking one article for convenionco and avoiding unneces- 
 sary figures— corn— tho toll was J1.12J per ton, which was less than the tolls vid 
 
84 
 
 tho Erie and Champlain Canals. The local rato through the Wolland and St. Law- 
 rence Canals was 37 J cents per ton on each, or on o third of tho through rate. Wo 
 may have here an indication of tho principles which governed the rates of toll. Thoy 
 wore not founded on the expense of maintenance and repairs, nor a tax levied per ton 
 mile, according to the cost of operating the respective canals, but with tho hope, by 
 lower tolls than the Brie Canal, to divert its trade. Tho specific rato founded upon this 
 principle for the Welland and St. Lawrence Canals has continued to the present 
 lime, and lowered according to tho expediency at the date of change. On the 27th 
 April, 1850, previous to the date of opening of navigation, another proclamation was 
 made reducing the through rate on corn to 70 cents per ton, and 30 cents for each of 
 the sections Welland and St, Lawrence. Before the opening of navigation, 1853, a 
 further effort to compete with tho Brie Canal was made ; a toll schedule was pro- 
 claimed for the Welland, St. Lawrence and Champlain Canals. Tho tonnage passing 
 two sections 25 per cent., and passing three 33| per cent, off the rate of schedule. 
 Iron and salt paying tolls on the St. Lawrence were free through the Wolland 
 Canal. Tolls on these articles, paid upon the Champlain Canal, wore refunded at the 
 Lachine Canai. Wheat, flour and corn, having paid tolls on the Welland, passed 
 free through the St. Lawrence and Chambly Canals. The tolls would allow those 
 articles to reach Lake Champlain or the Hudson Eiver vid tho St. Lawrence, at less than 
 one-half the tolls on the Erie Canal. This policy appears to have been continued to 
 1860. It was hoped by the lake and river navigation allowing tho passage of large 
 vessels to the point of transhipment in barges, a longer voyage from Western ports 
 than the entrance to the Brie Canal at Buffalo, and by the low rate of tolls, to have 
 diverted trade. This endeavor would have perhaps been successful if tho large 
 vessels could have reached Lake Champlain by a canal branching off from the Beau- 
 harnois Canal, saving locking dowa and up and the long distance around by the 
 River Richelieu. Canada had expended a largo sum of money with the principal 
 object of obtaining tho trade between the West and the New England States, and 
 omitted building the link which would have rendered this policy successful. Pre- 
 vious to the meeting of tho Legislative Assembly of tho P )vince of Canada in 1860, 
 there was a similar agitation, to the present, for free canals. At this session there 
 was inaugurated a radical change in the toll policy, virtually the abolition of tolls 
 and a free canal system introduced. This strong measure was taken in a furthv,r 
 attempt to obtain the transport of Western cereals, to divert which from the Erie 
 Canal all efiforts, hitherto made, having proved unavailing. 
 
 The policy was adopted after some opposition. The season of navigation opened 
 with the same tolls upon the Welland Canal as previous to the adoption of this policy, 
 the St. Lawrence Canals being free. For through tonnage from Lake Brie 90 per 
 cent, of the Wolland toll was refunded if the vessel should enter the St. Lawrence 
 Canals ; and on reporting inwards at any Canadian port on Lake Ontario, or tho River 
 St. Lawrence, to be conside/ed as shipped vid St. Lawrence Canals. Tonnage up 
 through the St. Lawrence Canals, or from Canadian ports, was charged 10 per cent. 
 
85 
 
 of tho Wolland Canal toll on passing through that canal. This policy was a direct 
 diHcrimination against United SlatoH ports on Iiako Ontario and tho River St. Law- 
 rence, which, it might bo Hupposed, if tolls had any ett'oct upon tho direction of trade, 
 would have resulted in still further diverting to Buffalo the trndo of those porta, 
 which had already been alToctod by tho incroarto in tho sizo of vessels on tho Upper 
 Lakes. This free canal policy was continued for three yours; there was a largo 
 increase in tonnage over previous years on account of the foreign domand for cereals ; 
 the Erie Canal tonnage, with increased tolls, raised to a corresponding extent.. Tho 
 great movement of cereals from the West in those three years followed the natural 
 channels of trade, the tolls upon tonnage through the Wolland Canal to American 
 ports on Lake Ontario and tho St. Lawrence did not prevent them from participating 
 in this increased movement, while the free St. Lawrence, without tho " incubus of 
 tolls," maintained the aver.ige movement of tho preceding years. The failure of the 
 free canal policy rosnltod in tho tolls being re-imposed in 1863. 
 
 In discussing the effects of this policy, wo may divide Ontario, contiguous to 
 tho lakes, in two sections— Upper Ontario above, and Lower Ontario below, tho 
 Wolland Canal ; tho traffic through the canals may bo classed as Canadian, American, 
 and Canadian American. 
 
 Canadian traffic. — To roach Montreal, the St. Lawrence Canals being free, Lower 
 Ontario products passed free of tolls, and Upper Ontario products woro charged 10 
 per cent, of tho Wolland Canal tolls, or a discrimination of that amount in favor of 
 Lower Ontario products. Upper Ontario products, to Canadian ports on Lake 
 Ontaiio, were also charged 10 per cent, of tho Wolland Canal toll, while Lower 
 Ontario products passed the St. Lawrence Canals free. 
 
 The Ottawa Canals being free, on account of the differential duties on Colonial 
 timber having been taken off, the Ottawa manuftxcturor of timber and lumber had 
 an advantage of 10 per cent, of the Wolland Canal tolls, over the Upper Ontario 
 manufacturer shipping by the St. Lawrence. 
 
 American Traffic. — This business was charged full Wolland Canal toll ; whether 
 tho St. Lawrence Canals wore free or otherwise, was immaterial, as none of that 
 traffic would bo attracted to Montreal, as haa ooon previously fully shown, it wont to 
 Oswego and other pojts for milling, and tho home consumption of the Eastern 
 States. Tho only effect of high tolls upon the Wolland Canal would bo to divert 
 that traffic to Buffalo, which the largo vessel was already doing. 
 
 Canadian American. — While the Reciprocity Treaty was in effect, tho natural 
 markets of tho cereals and lumber of Ontario wore Now York State and the Eastern 
 States. 
 
 That portion of tho trade which can be discerned, that paid full tolls on the 
 Wolland Canal, was Canadian to American ports, down, and vice versa, up. That is, 
 Lower Ontario products reached Montreal without tax, and Upper Ontario products 
 
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 say to Oswego, paid full caual tolls ; the lumber of Upper Ontario was taxed, while 
 that of the Ottawa could go up the Ridoau Canal, to American ports, without paying 
 tolls. 
 
 The trade of Upper Ontario during the throe years this policy wa3 in force 
 amounted to 315,500 tons, consisting principally of lumber, wheat, barley, oats and 
 flour, which was taxed full tolls, while the Lower Ontario products pasaod to their 
 markets free. 
 
 In still further noting the effec; of this policy and that adopted in 1853, we take 
 first, the attraction of the trade of Lake Ontario, and of that through the Wol'and Canal 
 down the St. Lawrence Canals ; second, the effect the reduction and abolition of tolls 
 upon the St. Lawrence route had upon the traffic of the Erie Canal. As to the first, 
 the following calculations are based upon the total tons moved upon the St. Law- 
 rence and Welland Canals, and the percentage of the movement of the former to that 
 total. The tolls per ton are the total amount of tolls received, divided by the tons 
 moved : — 
 
 Years incluaive. 
 
 1843-62. 
 
 1853-69. 
 
 1860-61. 
 
 1863-69. 
 
 ATpracTfi toll x\9f ton. St LftwroncG Canals 
 
 centg. 
 24J 
 
 390 
 
 cents. 
 
 m 
 
 40-0 
 
 cents. 
 Nothing. 
 
 44"7 
 
 cents. 
 6} 
 
 46-7 
 
 Percentfige of tons moved on St. Lawrence Canals 
 
 
 
 We find there was a gradual inuroase in the percentage moved from Lake Ontario 
 downwards, not duo to the decrease of tolls, but to the increased population and pro- 
 ductions of Lower Ontario including the Ottawa Valley. The increase of some 
 4 per cent, in the three years of the free St. Lawrence was not caused by abolition of 
 tolls, but other causes alluded to subsequently. 
 
 It may also be observed that the seven years following the free canals, when 
 tolls had been re-imposed, it did not decrease the percentage of movement, but the 
 opposite. We may therefore conclude that both the policy adopted in 1853, and the 
 three years free St. Lawrence Canals, both discriminating against Upper Ontario 
 products, did not oflfoct the object contemplated — force commerce from its natural 
 channels, nor compel any productions to roach Montreal, which, from economic con- 
 siderations, would not have taken that direction. 
 
 As to the second branch of the inquiry, the effect of the toll policy when com- 
 pared with the traffic of the Brie Canal. 
 
 In the following calculations, [ have taken the average of throe years at 
 various periods, the total moveraont upon the Ei-io, Welland and St. Lawrence 
 
/ 
 
 B1 
 
 Canals is combined, and the percentage of the movement on each to the total taken. 
 The toll per ton is obtained in the same manner as before: — 
 
 Three Years. 
 
 Erie Canal , 
 
 Wclland Canal 
 
 St. Lawrence Canals .... 
 
 Total per cent 
 
 1850-52. 
 
 per cent. 
 65J 
 
 14 
 
 100 
 
 1857-59. 
 
 100 
 
 1860-62. 
 
 per cent. 
 
 57} 
 232 
 
 18J 
 
 1872-74. 
 
 per cent. 
 
 583 
 24} 
 17 
 
 100 
 
 100 
 
 1880-82. 
 
 per cent. 
 
 13} 
 17} 
 
 100 
 
 1883. 
 
 per cent. 
 
 65} 
 18i 
 152 
 
 100 
 
 Three Years. 
 
 Toll 
 per Ton. 
 
 Toll 
 per Ton. 
 
 Toll 
 per Ton. 
 
 Toll 
 per Ton. 
 
 Toll 
 per Ton. 
 
 Toll 
 per Ton. 
 
 Erie Cunjl 
 
 $ cts. 
 
 1 64 
 29} 
 16j 
 
 $ cts. 
 
 1 00 
 20 
 
 07J 
 
 $ cts. 
 
 1 35 
 14} 
 
 Free. 
 
 $ cts. 
 
 76} 
 17 
 06} 
 
 f cts. 
 
 18} 
 15 
 06| 
 
 $ cts. 
 Free. 
 
 Welland Canal 
 
 St. Lawrence Canals 
 
 16} 
 06| 
 
 
 
 Average, three Canals 
 
 67 
 
 43 
 
 50 
 
 33 
 
 13J 
 
 07S 
 
 From the foregoing it may be observed that the Erie Canal's per centago was 
 about the same in 1883, the first year of the abolition of tolls, as thirty years before, 
 when it received $1.54 per ton as toll ; that in 1883 there was a decreased movement 
 compared with the three previous years before tolls wore abolished, that notwith- 
 standing the free Erie Canal, the movement through the Welland Canal increased, 
 proving that the enlargement of the canal was a more important factor than free 
 canals. 
 
 The percentage of movement through the St. Lawrence Canals was nearly as 
 great in 1850-52 when 18f cents per ton were received as toll, as in 1883 when 6f cents 
 were received. 
 
 With regard to the free St. Lawrence Canals 1860-62, both upon the Welland 
 and St, Lawrence Canals the movement decreased as compared with the previous 
 three years, while upon the Erie Caaal, it increased, although the tolls were raised 
 and 81.35 per ton received as toll instead of 01.00 from 1857-59. 
 
 The three following years, 1863-65, would have been compared, but statistics were 
 compiled for the fiscal year, making one-half year in 1864. Consequently, the season 
 of navigation could not bo applied in both cases, but if such could bo done it would 
 show that the ro-imposition of tolls in 1863 Lad no eff A upon the movement by the 
 St. Lawrence route. 
 
 A petition to His EiccelloRcy the late Governor General of Canada, of ship- 
 owners, manufacturers, merchants, sliipbuilders, master mariners, with regard to 
 canal tolls, accompanied by a lotier dated March, 1880, to the Right Hon. Sir John 
 A. Macdonald, K.C.B,, Premier of Canada, which calls attention to the tolls imposed. 
 
88 
 
 Upon vcBselB and their cargoes, on the St. Lawrence route, and other matterB. It calls 
 attention to statistical tables, stating " the figures of which are taken from trustworthy 
 sources, and corroborate the various contentions sot forth in the petition." 
 
 The heading of one section of the petition ip, "Effects of reduction and 
 removal of Canal Tolls," under which the policy of 1860-62 was alluded to, stating 
 that it operated well, but it was, nevertheless, repealed in 1863. 
 
 A table is given of the receipts of grain at Montreal, showing the great increase 
 
 in receipts during these three years over previous and subsequent years. It is stated : — 
 
 "The above column of figures showa, in strong colors, the ofToct of the reduction of 
 the canal tolls in increasing the traffic, and the precedent furnished by the Order in 
 Council of May, 1860, for present action In a similar direction, is good," 
 
 It is also stated : 
 
 " Business will certainly increase on the St. Lawrence route by a reduction or 
 removal of tolls, dues and expenses, just as they did on that route in 1860-61-62, under 
 the Order in Council of May 19lh, 1860, and as it has recently done on the Erie 
 Canal, under the reduction and abolition of its tolls. The St. Lawrence route will 
 gain in strength in the greatly increased tonnage what it loses in lower tolls." 
 
 This petition does not state that in these three years there was a large increase 
 of production in the Western States; that there was a large foreign demand for wheat 
 and corn. It does not state that improved facilities for transhipment at Montreal 
 and Kingston had only been afforded about that date. It does not state that the 
 Southern ports were blockaded in April, 1861; that the derangement of the currency 
 and other effects of the Civil War induced shipments to the St. Lawrence from the 
 West, nor does it give any comparative statistics as to the increased movement vid 
 the Erie Canal. 
 
 From the prominence given to this increased movement during the three years 
 compared with the previous and subsequent throe years, which is attributed, in this 
 petition to the Order in Council of May 19th, 1860, the causes may bo investigated. 
 
 The greatest movement was in 1861 and 1862. In the autumn of 1860 it was 
 represented that the crops of England and France were in jeopardy from continued 
 rain, which had already done much damage, large orders for grain were sent to 
 America and the Black Sea. The crops were abundant in the West; at lake ports 
 the receipts of grain were more than double those of 1859. It is stated in Hunt's 
 Merchants' Magazine, October, 1860 : — 
 
 "The freights on the lakes and Western waters have risen rapidly under the 
 influx of grain, and the rise in freight has come off the price of wheat at the other end 
 of the route." From the simo, in February, 1861 : "Fortunately, at such a juncture, 
 the state of the grain market has been such as to attract unusual quantities of produce, 
 and the exports from the port of New York have, in the last quarter of 1860, been 
 30 per oent. larger than ever before in the history of the country, 
 
 " The Export of wheat and flour from the United States, since September Ist, 
 exceeds, by 825,000,000, the export of the same article^, for the same period In 1859." 
 
 In June, 1861, the exports were larger than ever shipped to foreign ports in a 
 single month before. In consequence of the disturbed condition of the South and 
 West, a largo amount of produce will be diverted from other channels to these ports. 
 The account of the grain harvests in Europe, in the autumn of 1861, was such as to 
 sustain active shipments." 
 
89 
 
 In Dccombor, 1861, the same magazine remarks: — 
 
 " The grain movement will form one of the extraordinary loatures of the year 1861, 
 and contribute largely to the strength of the country in sustaining an expensive war." 
 
 The movement was so largo that the New York Chamber of Commerce for- 
 warded a memorial to the Canal Commission, to maintain navigation to the latest 
 moment. The latter ordered the repair contractors to have prepared for use, ice- 
 breaker's tools and implements, to aid navigation. 
 
 In November, 1862, it was stated that the decline of domestic exports grew out 
 of the heavy state of the exchange market, and the lower prices of American produce 
 in England ; that although the harvests in Europe were not of the best description 
 the supply of old grain was such as to preclude high prices. 
 
 In September, 1863, it was stated the harvests in Europe wore better than for 
 seventeen years ; that Franco and England, which the previous year took 97,000,000 
 bushels of wheat, will take none this year. 
 
 In December, 1863, that the decline in prices of bread stuffs and provisions 
 abroad, at a time when speculative demand sprung up, have placed the largest staple 
 export above the English rates, and wheat and corn ceased to be exported. The 
 decline of commercial bills added to the distrust attached to them by reason of the long 
 continued decline of prices abroad sustained by gold. " Under the paper system, 
 where notes are based on gold alone, and around which the paper flood surges from 
 hour to hour, the matter requires to bo closely watched to avoid groat losses." 
 
 SuflSoient has been quoted to demonstrate the fallacy of citing the increased 
 movement of broadstuffs over preceding and subsequent yoai's to have been due to the 
 toll policy of May, 1860. 
 
 To still further illustrate the effect upon our canals, and upon the Erie Canal, of 
 the changes in tolls, some statistics will be given. 
 
 The following statistics show the effect of a free canal and reduction of tolls on 
 both routes. 
 
 I have combined, for several periods of throo years, when there was a large 
 movement upon both routes, also, the three years previous and subsequent to 
 1860-62, the receipts of wheat and corn by Lachine Canal, at Montreal, and at tide- 
 water, by the Erie Canal. The percentage of the total carried by each is given, also ; 
 the average toll for the period on a ton of wheat and corn from Buffalo to Albany, 
 and from Lake Erie to Montreal. 
 
 Three Years. 
 
 1857-59. 
 
 1860-62. 
 
 1863-64. 
 
 1871-73. 
 
 1877-79. 
 
 1880-62. 
 
 1883. 
 
 Erie Canal 
 
 per tent. 
 
 88 
 12 
 
 per cent. 
 
 8'i 
 13 
 
 per cent. 
 
 88 
 12 
 
 per cent. 
 
 78 
 22 
 
 per cent. 
 
 79} 
 
 20| 
 
 per cent. 
 
 79} 
 20} 
 
 per cent. 
 
 79} 
 20} 
 
 Lachine Canal 
 
 
 Total per cent 
 
 100 
 
 100 
 
 100 
 
 100 
 
 100 
 
 100 
 
 100 
 
90 
 
 Three Years. 
 
 1857-59. 
 
 Toll 
 per Ton. 
 
 1860-62. 
 
 Toll 
 per Ton. 
 
 1863-64. 
 
 Toll 
 per Ton. 
 
 1871-72. 
 
 Toll 
 per Ton. 
 
 1877-79. 
 
 Toll 
 per Ton. 
 
 1880-82. 
 
 Toll 
 per Ton. 
 
 1883. 
 
 Toll 
 
 per Ton. 
 
 
 $ cts. 
 
 1 61 
 
 33} 
 
 1 27} 
 
 f cts. 
 
 1 72J 
 02 
 
 $ cts, 
 
 1 89:1 
 35 
 
 $ eta. 
 
 92 
 35 
 
 $ cts. 
 
 34* 
 35 
 
 $ cts. 
 
 34* 
 35 
 
 $ cts. 
 Free. 
 
 
 20 
 
 In favour of St. Law- 
 rpnce route *. 
 
 
 1 70J 
 
 1 61} 
 
 57 
 
 
 
 
 
 
 
 From the foregoing it may bo observed that the receipts, of wheat and corn, at 
 Montreal in 1860-2, with ^l.TOJ cents toll per ton in favor of the St. Lawrence route, 
 with the Erie Canal, so crowded with traftic that moans were provided to prevent the 
 clotjiiig of the canal by ice, were only 1 par cent, greater than the preceding and 
 following periods. 
 
 It appears that the lowering of tolls upon the Erie Canal has haJ no effect 
 in increasing the movement through it; that in ISTT-W the percentage was the samo 
 as in 1883, with 20 cents toll in its favor. 
 
 To show the effect of a free Erie Canal upon the St. Lawrence route, take the per- 
 centage of the latter in 1883, it was rather larger than the preceding three years, 
 before tolls were abolished. 
 
 To eum up the effects of this policy, it was to place in the pockets of ono 
 section of the community, the amount of tolls remitted, at the expense of the 
 general taxpayer. It is evident that tho tolls upon the Canadian canals, from the 
 date of their opening, have not had the slightest effect upon the movement of pro- 
 perty; that trade followed recognized and established channels of commerce; that 
 there has not, in reality, been any compotition between the Erie Canal and tho St. 
 Lawrence Canals. The Brie Canal, in its toll policy, was totally different from ours; 
 it not only paid the cost of construction, but has been one of tho greatest financial 
 successes of any public work over constructed. On our canals, the tolls have hardly 
 exceeded tho cost of maintenance and repairs, Tho Erie Canal, being a small, 
 imperfect and expensive navigation, could not compete with tho railways with high 
 tolls, which wore forcing tho baatmon to carry at ruinous prices, tolls were reduced 
 to benefit them and prevent tho destruction of the boating interest ; those reductions 
 have not had the desired etfoct, as will bo subsequently shown under another heading. 
 Tho Erie Canal has only, within the last fow years, reduced tolls to a point where its 
 policy could be compared with ours; in 1882 there was barely a surplus of some 
 $6,460 above expenditure upon tho State canals. It remains to bo seen whether tho 
 canal would not have had as great a traffic by a continuation of that policy, main- 
 tained in a more efficient manner, and kept in bettor repair, than by requiring, each 
 year, to obtain an appropriation from the Legislature for tho purpose. Although a 
 few bushels of grain may have takon ono route or tho other, I feel confident, as a 
 principle, that the tolls on either route have not had, tho slightest effect, during tho 
 whole history of the canals, in determining whether western cereals should reach tide- 
 water at Montreal or Albany. 
 
91 
 
 Tho competition of the St. Lawrence route has been used as a lover for the reduc- 
 tion of tolls, and for a free Erie Canal; but, in fact, it has been tho railways that have 
 influenced its tolls policy. 
 
 In support of previous assertions and oonclusions, I quote tho opinions of a gen- 
 tleman long conversant with tho canals of New York State aud its toll policy, which 
 are, in many instances, directly applicable to the agitation for free canals upon the 
 St. Lawrence route : — 
 
 "Tho fact that tho 'Free Canal' policy is generally suggested in connection 
 with extensive schemes for enlarging and otherwise improving the canals, affords 
 strong ground for tho suspicion that tho ' contractor's ring' (so called), which the 
 constitutional amendment of 1874 virtually dethroned, is deeply interested in tho 
 success of the present proposed amendments. 
 
 2'he sweeping reduction in tolls has been of no benefit to the boat owners. 
 
 "A desire to increase the profits of tho boat owners is the only plea which can be 
 offered in justification for the reduction aud abolition of lulls since 1876. Tho ownere 
 of elevators, tho insurance corajmnios, tho commission merchants and all persons who 
 directly profit by the business of the canals, havo absorbed all which the State con- 
 ceded in lolls. The boatmen have gained nothing, and their earnings havo declined 
 with every reduction made in the rates of toll. 
 
 " Eoducing tolls does not aid tho carrier a particle, because tho toll imposed is a 
 part of tho cost of canal transit, and, if the roads desire to compete with tho canals, 
 it is only necessary to put their rates on a par with the canal, and they can do this, 
 if so disposed, with the tolls entirely abolished. Therefore, if tho tolls imposed are 
 not high enough to mako profitable canal freights exceed the cost of carriage by rail, 
 it certainly cannot be assorted that tlie act of imposing such rates of toll will inju- 
 riously affect the canal carrier, or rcpol traffic from tho canals. Hence, it is neither 
 necessary to abolish tolls nor to reduce them so low, that tho aggregate revenues will 
 fall below the constitutional charges thereon ; unless it bo determined to compel tho 
 railways to do their transportation business at a hoavy loss during the navigable 
 season, at tho cost of the taxpayers of this State, for tho solo benefit of non-residents of 
 the State. 
 
 "Besides, the experience of tho past demonstrates that all concessions which have 
 been made in tolls have had no beneficial effect on the earnings of the boatmen, and 
 the only practical result of such concessions has been to furnish a wider margin for 
 extortionate terminal, transfer, and insurance charges. 
 
 "The State should not engage in a ruinous competition with tho railways at tho 
 expense of the tax payors. 
 
 " When canal tolls are reduced at the expense of tax payers to so low a rate that 
 property can bo transported by the water route below actual cost by tho railways, 
 tho State is unfairly discriminating against the roads. The railways must either 
 rbandon their freight traffic or reduce their charges at all competing points to corres- 
 pond with those by tho water route, or as a retaliatory measure, to lower figures than 
 the water route car afford. 
 
 " Of course all this business is done at a loss by tho roads, but this loss is partially 
 or wholly, as a matter of compulsion, retrieved on their local business, which may be 
 beyond the ranges of competition, and by excessive rates after navigation by the 
 water-route is suspended. This discrimination .^gainst tho merchants and producers 
 in this State, in favor of their competititors at the West, is the natural result of a 
 policy which resorts to taxation instead of revenue to maintain the canals. Their 
 is neither justice nor business sagacity in such a policy. The constitutional charges 
 upon the revenues of the canals are just as much a part of the cost of canal trans- 
 portation as tho expense of the team which tows the boat, or as tho repa- s of tho 
 suporstruction are a part of the cost of railway transportation. 
 
 If the canals possess any intrinsic value, and are worth maintaining, it is because 
 they furnish occupation for the boatmen and facilities for cheap transportation, and 
 
92 
 
 in using them tho boat and tlio property Ininsportod are equally benefitted. The 
 asBumption that the benefits derived by those who navigate the canals should bo 
 conferred without any expense to tho boat or property transported, but at tho solo 
 cost of the tax payers, is without reason or justice. 
 
 " All this clamor for a free or partially free cunal springs from a delusion. It is 
 asserted that tho legitimate trade of tho City of New York is being diverted. 
 
 '' If we had no canals, the innocent cause of unjust and unnessary taxation, wo 
 should hoar nothing about diversion. At an earlier period the State of New York 
 possessed the only outlet from the West to the Atlantic seaboard, and the city of 
 New York was tho distributing port for Western products. But now there is not a 
 port of any importance from Maine to Texas, which does not possess rail connections 
 with every part of the Continent, and if tho whole wealth of tho State of New York 
 were to be expended in subsidizing boat owners and enlarging our canals, we could 
 not force trado from its legitimate channels, nor overcome the law of supply and 
 demand." 
 
 The following extracts from reports of tho Finance Minister and Commissioner 
 of Public Works of Canada, in 186,'i, as to the effect of tho Order in Council, May, 1860^ 
 corroborates previous assertions. 
 
 Extracts from Iteport of Finance Minister, 1863: 
 
 " In this connection I propose to consider the eifect which the removal of the tolls 
 from the St. Lawrence Canals and the reduction of those on tho Welland has had on 
 the movement of property through those works. 
 
 "That tho movement of property by the St. Lawrence route has been greatly 
 augmented during the past three years is sufiioiently apparent from tho figures given 
 above, and we may congratulate the country thoreon ; but that this increase has 
 been due to tho remission of tho tolls is not to bo assumed without taking into 
 account other circumstances which have mainly influenced the direction of trade. 
 
 First among those circumstances may be stated the greatly increased produc- 
 tion of cereals in tho Western States, and the figures presently introduced will show 
 that in proportion to that increase and to tho whole volume of agricultural produce 
 moved from Lakes Erie and Michigan to tide water, wo have not obtained so largo a 
 traffic since the removal of the tolls as wo obtained prior to the adoption of that 
 policy. * * * Hence, it appears that the whole quantity of Western wheat 
 and flour which was transported to tide water through the New York and Canadi.an 
 canals during the past seven years, wo obtained for the St. Lawrence route in : — 
 
 
 Ykab. 
 
 Per cent. 
 
 1866 
 
 7'03 
 
 1867 
 
 15'01 
 
 1858 
 
 12'01 
 
 1869 
 
 16-08 
 
 I860 , 
 
 7-16 
 
 1861 ..» , 
 
 8-26 
 
 1862 
 
 11*04 
 
 
 
 "These are the principal commodities which have hitherto passed through tho 
 St. Lawrence Canals. If we include with them the Indian corn, which figures so 
 largely in tho Welland and Brie Canal returns, tho percentage will become still lens 
 favorable to us; and tho proportions will bo still further reduced by bringing into 
 comparison tho cereal products of the Western States which are carried to tide 
 water by the several railways converging on tho Atlantic ports. 
 
93 
 
 " Among the circumstances which have influenced the direction of trade, may 
 also be reckoned the improved facilitioa now available at KingHton and Montreal for 
 Ihe tran8-8hi])ment of g:.*in. Those facilities have been created within the past four 
 years, and there is little doubt but the advantages they afford have a money value 
 to shipowners greater than (he tolls now imposed. 
 
 " It is also known that the owners of "Western produce have boon induced to direct 
 their property to Canadian ports, by considerations connected with the derangement 
 of the currency of the United States. 
 
 " While we have failed to obtain eo large a proportion of the Western trade, since 
 the removal of the tolls, as we obtained in 1859, and in preceding years, the tolls 
 levied on property passing through that canal, which is the chief competitor with 
 the St. Lawrence route, have been materially increased, as the following comparison 
 of tolls on the three principal articles will show: 
 
 
 Toll per 1,000 
 Iba. per mile. 
 
 1860 
 
 Toll 
 
 lbs. 
 
 per 1,000 
 per mile. 
 
 1862. 
 
 
 On Corn 
 
 mills. 
 2 
 
 2 
 
 2 
 
 
 mills. 
 2J 
 3 
 
 Flour 
 
 Wheat 
 
 3 
 
 
 
 " This increase is equivalent to an advance of 70 cents per ton on wheat and flour 
 from Buffalo to tide-water, and 40 cents per ton from Oswego to tidewater, whilst 
 the advance on corn is equivalent to 35 cents per ton from Buff'ttlo and 20 cents per 
 ton from Oswego. 
 
 " The rates of freight have also increased by the Erie Canal, and they have 
 increased in a still greater ratio by the St. Lawrence. 
 
 " During the four years next preceding 1859, the average freight for flour from 
 Lake Onlario ports to Montreal was $1.84^ per ton. 
 
 " In 1860, the year in which the tolls were removed from the St. Lawrence 
 Canals, the rate of freight was $2.11 J per ton. 
 
 In 1861 it was J2.56J per ton. 
 
 1862 " 2.61 " 
 
 " So that the increase over the avei-age of the four years preceding 1859, has 
 been — 
 
 In 1860 72 cents per ton, 
 
 1861 72 " " 
 
 1862 81 « " 
 
 " If we add to these figures the toll remitted, we find that the forwarders received, 
 over the average rates which they obtained in the four years above alluded to — 
 
 In 1860 S0.49 cents per ton. 
 
 1861 0.9i " " 
 
 1862 1.03 " " 
 
 " Comparing, in a similar manner, the rates of freight obtained for carrying 
 wheat, we have a still more striking example of the advanced rates which the for- 
 warders have been able to exact. 
 
94 
 
 Tho avornf^o froiglit rates for wheal, from Luke Oulurio ports to 
 
 Montreal, 1855, t), 7 and 8, was $1.81 per ton 
 
 In 1860 tho average rate was 2.80 •' 
 
 18«l it was 2.72 " 
 
 18G2 '« 2.71 " 
 
 " Thus tho advance, over the average rate during tho four years first named, was — 
 
 In 1860 81.21 per ton 
 
 1861 1.13 «' 
 
 1862 1.13 " 
 
 " Adding tho tolls relinquished, by the Province, it will bo soen that tho advance 
 obtained by tho forwarder has been — 
 
 In 1860 81.43 per ton 
 
 186162 1.35 " 
 
 " Together with the tolls due to the tonnage of his vessels 
 
 *' Whatever else may bo urged in favor of froo canals, it certainly cannot be said 
 that the policy of 186U has boon productive of benefit, either to the producer or con- 
 sumer of Western breadstufts ; and from the advance which has taken place in tho 
 freights by the St. Lawrence route, as woU as in both tolls and freight by the com- 
 j)oting route to tide-water at Albany, it is abundantly manifest that tho forwarder 
 can pay a moderate toll without unduly trenching upon his profits. 
 
 " It can be shown, from reliable data, that in so far as tho actual cost of transport 
 (including, therein, tho canal lolls recontly imposed) is concerned, Western produco 
 can be carried to tide-water much cheaper by the St. Lawrence than by any com- 
 peting route, and wo mubi race our failure to obtain for our canals a greater 
 proportion of the Western trad»> *o other causes than the charges horottjforo imposed 
 for tho use of those works. I am persuaded that the chief cause of that failure lies 
 in tho absence of sufficient competition among forwarders engaged in the St. 
 Lawrence trade, in tho financial refations between shippers engaged in tho Western 
 trade and the capitalists of Now York; and finally, ami chiefly, in the lower rates of 
 ocean freights from New York to Europe, occasioned by a greater competition at 
 that port than is to bo found at Quebec or Montreal. 
 
 " It is gratifying to know that tho Canadian forwardor has boon able to obtain the 
 advanced rates above quoted, but wo cannot find therein a justification of that policy 
 which, in addition to other advantages, would give him the free use of costly works, 
 which complete the grandest system of inland navigation in the world, and have not 
 boon constructed without imposing heavy burdens on the country. 
 
 " If it could bo shown that tho tolls remitted had gone in mitigation of tho com- 
 paratively high rate of ocean freights to which our trade is subject, we might find, 
 in that fact, some reason for making our canals absolutely free. But it has boon 
 shown that this has not boon tho result. Tho tolls have gone to enhance tho profits 
 of tho forwarder, whose freight tariff has been regulated, not by tho cost of doing his 
 work, but by the competition with which he has to contend. 
 
 " There is but one course open for securing that quota of Western trade which the 
 advantages of tho St. Lawrence route gives us reason to anticipate. If we can give 
 tho owners of the largest vessels now profitably engaged in the trade of Lake Michi- 
 gan, the option of trading to Kingston and the St. Lawrence, or to Buffalo, as may bo 
 found most profitable, we shall have thrown down tho barrier which now forces the 
 main current of trade into the Erie Canal. We shall have more than balanced tho 
 greater insurance and freights charged from our seaports to Europe over the corres- 
 ponding charges from New York, and we may, thereafter, expect Quebec and Mon- 
 treal to take rank amongst the greatest grain marts of this continent." 
 
 Extract from the Report of the Commissioner of Public Works, 1863. 
 
 " From other official returns, showing the course of trade through tho provincial 
 canals, it will bo soon that, in this period of ton years, the purely American portion 
 of it (i. e.f "from American to American ports "), which passed through tho Welland 
 
95 
 
 Canal, avoragod 51 per cent, of tho wholo, and tho purely Canadian, through tho St. 
 Lawronco Canals (t. e., *' from Canadian to Canadian ports "), vrixa 'J6 por cent, of the 
 grosH tonnage. 
 
 *' Taking tho next throo years, since 1859, in which tolls have boon abolished on 
 the provincial canals, while they have been doubled on tho up freight of the Erie 
 Canal in I860, and incroasod 25 por cent, on tho down freight in 1861, tho most 
 remarkable increase is found in tho business of that canal which persists in collecting 
 tolls. In 1862 it had reached the enormous amount of 5,598,785 tons and $5,188,943 
 tolls, showing an increase of 32 por cent, on tonnage and 56 por cent, on tolls over 
 the maximum of tho former period. 
 
 " On the other hand, tho business on tho provincial canals, in 1882, amounted 
 only to 1,152,082 tons on tho Wolland Canal, and 756,870 tons on tho St. Lawronco 
 Canals, showing an increase of only 18 per cent, of tonnage on the Wolland and a 
 falling oil' of 17 por cent, on tho St. Lawrence Canals, from tho maxmium of tho 
 former period. In those three years tho official returns show that tho American 
 portion of tho trade through the Wolland, to and from Oswego and Ogdensburg, had 
 increased to 58 per cent, of the gross tonnage, while tho Canadian, through the St. 
 Lawrence, remained at 91 por cent, of tho gross tonnage on tho canal, the same as 
 the average of tho previous ten years. 
 
 "In view of those statements, it cannot bo assumed that th ^ abolition of tolls on 
 tho provincial canals has diverted any business from tho Erie Canal. On tho con- 
 trary, it has continued to increase on that canal in a very remarkablo manner, but 
 has actually fallen off on tho St. Lawrence, whore, fiom tho trade being more especially 
 Canadian, a different result should have boon produced, if exemption from tolls could 
 have any influence in diverting tho American trade into tho same channel, 
 
 " In tho attempt to divert trade by reducing tolls, we have tho experience on tho 
 Plrio Canal, preceding that of our own by about ten years. The result of this attempt 
 is made known in tho annual report of tho Auditor of tho Canal Department of the 
 State of Now York to the Legislature of that State, for tho year 186 1. In this report 
 ho says : 'The reduction which took effect upon the business of 1846 was tho result of 
 an arrangement between the authorities of this State, Pennsylvania and Ohio, after tho 
 completion of the canals in those States. Tho bonus paid, in 185 1, for tho competition 
 in the canal trade, which has since been actively and successfully carried on, not for 
 tho benefit of trade within our own State, not to promote or develop a single interest 
 within our own borders, or to alleviate the burthrns of our people, and tho consequent 
 effort, in 1852, to retain trade by a further reduction of tolls, are remarkable exhibitions 
 of mistaken policy and of unwise and inconsiderate legislation.' * * * * 
 In another portion of tho report tho auditor will bhow, by facts and figures, thwt 
 although the State has lost revenue by tho reduction in rates, it has not retained or 
 secured a ton of traffic to the canal in consequence of that reduction.' 
 
 It is respectively submitted whether these facts and statements do not show 
 that tho course of tho internal trade is wholly uninfluenced by the imposition of tolls, 
 HO long as they are confined within tho limits which have been charged on either of 
 these routes for the last ten years; and, if this be admitted, whether it is not governed 
 by other general laws — tho same laws, in fact, as regulate both the internal and 
 external trade— those of production and consumption or of supply and demand. If, 
 then, it has been found impossible by this moans to force the Western trade into a 
 channel leading only to a second rate market on this continent, where it is met by 
 ocean freights which at onco neutralize tho superior advantages of our inland trans- 
 |)ort, it would appear to bo a matter for consideration, whether, in the present state 
 of the public finances, it is expedient any longer to tux tho Province for tho benefit 
 of this trade; or whether that which naturally seeks this channel and must continue 
 to increase with tho growth and population of tho country, should not be rendered 
 immediately productive by tho re-imposition of tolls. 
 
 The revenue which would bo derived from tho re-imposition of tolls would 
 suffice, in the course of a few years, to make some of tho important improvements in 
 the navigation which havo boon in contemplation for many years past, and havo only 
 boon postponed from financial considei'ations. 
 
96 
 
 Tub EftiE Canai. and its Toll Policy. 
 
 Boforo tho competition of railways began to maltc an inroad upon the traffic of 
 the canal, tho tolin wore high. Tho Now York Central, originally JJufralo ami 
 Albany JJailway, was tho first competing railway; following closely tho route of tho 
 canal, it diverted from it the pasHonger traffic, express freights, morchandiso and 
 lighter articles. Until December, 1851, itscompotition was restricted, on account of 
 canal tolls being levied upon all articles transported ; at that date this tax was re- 
 moved by the Logislaturo and tho result was a still greater diversion of tho canal 
 traffic. Other competing railways being constructed and Buffalo becoming a shipping 
 point for geaboard railways and railways running through the coal districts, it being 
 tho eastern tei-minus of uppor lake navigation, there arose tho strongest competition 
 to the canal in the transport of the products of tho Western States, by lake and rail 
 versus lake and canal. The tons of property moved by tho railways increased yearly, 
 while the canal transported, year by year, a less proportion of the rapidly increasing 
 merchandise of the East moving West. Tho canal endeavored, by reductions in tolls, 
 to attract business and retain what it possessed of those articles, the transport of 
 which was certain to gr-avitate to the railways. This action was fruitless. Tolls 
 were fi-om time to time reduced upon articles moving from tido-water, until 
 eventually they were all placed upon tho free list. 
 
 Towards tide-water similar reductions were made; articles placed upon the free 
 list, in 1882 — there were twenty-eight— principally those whoso transport had been 
 diverted to the railways. Sectional and local discriminations and in favor of various 
 interests were made in the toll sheet. " In fact, one can hardly resist tho conclusion, 
 as ho studies tho subject, that these discriminations were made originally in favor of 
 eomo individual or private interest and have continued ever since, to the detriment 
 alike of the canal exchequer, the forwarder and the consumer." I quote from a 
 report, to the Canal Board of New York State, made in 1877, by aCommittee appointed 
 to consider and report on tho means of increasing the traffic through tho canal and 
 upon the subject of tolls. 
 
 At last came the agitation lor abolition of all tolls, supported vigorously 
 by the terminal cities, Now York and Buff'alo, and other cities along the lino 
 of tho canal, and opposed by the rural and distant parts of tho State. Tho New 
 York Produce Exchange and other wealthy commercial bodies actively exerted 
 themselves. In the Produce Exchange, a Young Man's Free Canal Club was instituted, 
 to act in concert with similar organizations of other commercial corporations. There 
 were, when tho amendment was before the people, millions of ballots prepared 
 and large quantities of pamphlets distributed. Central rooms woro engaged in Now 
 York and Brooklyn, subscriptions were solicited, and every step taken that could bo 
 devised for giving success to the measure. These statements are taken from the 
 report of the New York Produce Exchange, 1882. 
 
 
ym 
 
 trattlc of 
 iffulo uiul 
 uto oftho 
 ,ndiBO and 
 vocount of 
 c was ro- 
 tbo ounal 
 a shipping 
 9, it being 
 )mpoUtion 
 e and rail 
 sod yearly, 
 increasing 
 ns in tollH, 
 •ansport of 
 
 688. Tollrt 
 
 ater, until 
 
 lon the freo 
 rt had boon 
 • of various 
 conclusion, 
 in favor of 
 ) detriment 
 lote from a 
 e appointed 
 e canal and 
 
 vigorously 
 ig the lino 
 The New 
 ely exortoJ 
 s instituted, i 
 ions. There 
 Ls prepared 
 irod in Now 
 hat could bo 
 en from the 
 
 97 
 
 Through this active propaganda the abolition of tolln, a conHtitutional amend- 
 ment, was sanctioned by the people, who thereby taxed tiiemselves for the repairs and 
 maintenance of tbo canal. 
 
 The effect of the abolition of tolls will probably result, as every fluccossivo reduc- 
 tion of tolls, in loss of revenue and no corresponding increase in bnsino.^s. There 
 has been a slight increase in tonnage carried in 1883 over 1882, but not ho marked, 
 above that of other years, as to lead to the conclution that it resulted from a free 
 canal — the principal increase being in corn, in which there has been a larger move- 
 ment, both by rail and canal, over the previous year. 
 
 Each successive reduction in toll did not cheapen the cost of transportation, nor 
 become a profit to tho carrier, whom these reductions were intended to benefit. The 
 smallest amount that tho boatman could carry for and exist was known, ho being in 
 the bands of agents called "scalpers." They, with the commission merchants and 
 consignees, all situated at Buffalo, made tho contracts for the Western shipper, and 
 profited while tho boatmen and boating interest became yearly more impoveiishod 
 and depressed. 
 
 Tho opinions of tho prominent officials connected with tho canal o>rroborale 
 strongly those assertions. 
 
 Tho State Auditor remarkoi that the remission of tolls, as an indopondent 
 measure, will not very much increase tho tonnage. Heretofore tho toll reductions 
 have not increased tho trade of the canals. 
 
 The Ex Comptroller, in his report to tho New York Logislaluro, presented 
 recently (1884), states: — 
 
 " It was anticipated and predicted, as results of this now departure, that 
 there would be a large increase of business in the traffic of canals, because the 
 coet of transportation would bo reduced to tho extent of tho tolls remitted, 
 * * * In view of the fact that the general movement of freight through tho 
 State by the railways was larger than tho previous years, and that tho rates of freight 
 charged by tho railways were higher than those raaintainod in 1882, it must bo con- 
 fessed that tho gain in canal tonnage has not been as largo as was hoped. Tho 
 average rates per bushel for the transportation of corn from Chicago to Now York 
 for tho season wore ^yj^ cents, while in 1882, the average was ^loo cents, showing 
 a slight increase in cost, notwithstanding the remission of tolls, but the canal's pro- 
 portion was nearly \ cent per bushel lower, while tho lake rates were .f of a cent higher 
 than in 1882. The remission of tolls, however, made tho bu^sinoss of the canal carriers, 
 in a moderate degree, more profitable than in 1882. 
 
 •' At the solicitation of shippers and carriers, the Canal Board, with the concur- 
 rence of the Legislature, at different periods made concessions in the rates of toll. In 
 making these concessions it was believed that the tonnage of tho canals would in- 
 crease in the same proportion that the tolls were reduced, and hence there could be 
 no loss in tho aggregate revenue. ****** 
 
 Strange as it may appear, the statistics of the canal show that no increase of 
 tonnage has over followed a reduced toll sheet which can justly bo attributed to 
 such reduction ; and what is still more remarkable, they further show that the profits 
 of the boat owners, instead of being increased, as was anticipated and desired, actually 
 declined with every reduction in tho rate of tolls." 
 
98 
 
 Prom this report it appears that from 1862 to 1869, the period of highest rates after 
 1854, the carrier rocoivod, in excess of canal tolls, an averago of $3.41 per ton ; from 
 1870 to 1874, with tolls reduced one-half, $2.87 per ton; from 1875 to 1876, with a 
 further reduction in tolls, $1.77 per ton ; from 1877 to 1882, a further reduction, 
 $1.71 per ton; in excess of canal tolls in 1883, tolls abolished, the carrier received 
 $1.63 per ton. 
 
 In all agitation for reduction of tolls, and finally for a free canal, the competition 
 of the St. Lawrence route was a stock argument. Before our enlargement was com- 
 menced, if there was, through natural causes, an increased movement down the St. 
 Lawrence, the cry was raised that the trade of Now York was being diverted to 
 Montreal. Since the enlargement of the Welland Canal, and while that enlargement 
 was in operation, the northern waterway has occupied a prominent position in 
 reports and arguments of those interested in the Erie Canal, in favor of reduction 
 and abolition of tolls. The argument of one of the members of the Now York Pi-o- 
 duco Exchange, made to the Joint Canal Committees of the New York Legislature, 
 in favor of a free canal, thus alludes to the St. Lawrence route: — 
 
 "Already the Dominion of Canada, with a meagre income and limited resources, 
 has expended nearly 850,000,000 in the construction and development of the Welland 
 Canal, in the desire to attract the grain-carrying trade to her borders, and invites the 
 business over the bosom of a canal practically free." 
 
 In the United States the Welland Canal is generally referred to when the whole 
 route is really intended. It may be observed, in the light of the demand for free 
 canals upon this route, that the tolls are not considered of much importance for the 
 prevention of the diversion of trade from Now York. Another argument in favor 
 of a free canal ivas, that the burthen of taxation u Dorne chiefly by the cities inter- 
 ested. It is claimed they pay the principal part of the taxation for the education of 
 the outlying and more sparsely populated counties. It is asserted that of the tax- 
 ation rendered necessary by a free canal. Now York, Brooklyn and Buffalo will pay 
 62J per cent., the cities and counties lying along the line of the canal will increase 
 it to 90 per cent., leaving 10 per cent, to be paid by outlying or not directly inter- 
 ested districts. No assertion of this description can bo made with reference to Mon- 
 treal or other cities interested in a free St. Lawrence. 
 
 The construction account of the Erie Canal on the 30th September, 
 
 1882, was $ 49,501,852 00 
 
 Gross revenue $121,469,871 00 
 
 Deduction 29,270,301 00 
 
 Profit on operating, exclusive of interest $ 92,199,570 00 
 
 I have compiled, approximately, the revenue and deductions for repairs, main- 
 tenance and collection, from 182";, upon the St. Lawrence Canals, from 1831 upon tlio 
 Welland Canal, to the end of the fiscal year, 1883 : 
 
•atos after 
 on ; from 
 6, with a 
 pcduction, 
 rocoivod 
 
 mpotition 
 was com- 
 n the St. 
 i verted to 
 largomont 
 losition in 
 reduction 
 ITork Pro- 
 ogislaturo, 
 
 rosources, 
 10 Wollund 
 invites the 
 
 the whole 
 d for free 
 [ICO for the 
 nt in favor 
 itios inter- 
 ucation of 
 the tax- 
 will pay 
 1 increase 
 lly intor- 
 ce to Mon- 
 
 501,852 00 
 
 09,811 00 
 270,301 00 
 
 199,670 00 
 
 lira, main- 
 l upon the 
 
 99 
 
 Gross revenue, St. Lawrence Canals $3,700,000 
 
 Deductions 3,800,000 
 
 Gross revenue, Welland Canal 8,300,000 
 
 Deductions 4,600,000 
 
 The excess of revenue upon the Welland Canal, was duo to tho American traffic 
 to the south shore of Lake Ontario and the River St. Lawrence, which, being 
 deducted, as well as the hydraulic rents, tho tolls upon tho Canadian traffic have 
 hardly paid tho cost of maintenance and repairs. A free canal agitation aesumes 
 another complexion upon this route. 
 
 THE TOLL SHEET DPON TUiJ ST. LAWRENCE ROUTE. 
 
 The toll sheet was originally divided into seven classes. Classes ono and two, 
 vessels and passengers ; tho remaining five, the different articles transported or, in 
 railway parlance, first, second, third, fourth and fifth class freight, with the excep- 
 tion of the classification of tho articles, which was not similar to that of railways. 
 The changes which have been made in tho toll sheet wore principally tho rate of 
 tolls on the different classes, tho changing of various articles from ono class to another, 
 and uniting several classes in one. 
 
 In 1873, classes two, throe and four, woro made ono clarfs, making throe classes 
 of freight, and a special class, which was created at this time; the toll shoot is virtu- 
 ally tho same at present, with tho exception of rates in tho various classes which have 
 been reduced. 
 
 T'.io question arises on what principle tolls should be based or made. Assuming 
 that tho C'.nal policy would bo to obtain a sufficient revenue for tho maintenance and 
 repairs, not only of the Welland and St. Lawrence Canals, but of the unpaying feeders, 
 the tax. should be founded upon the cost of operating tho Welland and St. Lawrence 
 Canals, increased to a sufficient extent to coraponsato for deficiency in the revenue 
 of tho feeders. There are two methods of levying this tax — either upon tho vessel 
 alone, or upon her cargo, with a slight tax, as at present, on t'ao tonnage of the vessel. 
 The first appears to be the correct principle. The canal authorities can have no 
 cognizance of tlio various elements which govern tho cost of transportation and the 
 rates of freight, whereby tho toll could bo levied in lomo relative nroportion to tho 
 rate of freight or value of tho commodity transported. A canal has not, as a rail- 
 way permanent way and rolling stock to bo affected by the amount of traffic upon 
 it — one vessel or a hundred passing the canal, whether the cargo carried has been 
 fifty or fifteen hundred miles, whether it is of great or small value, of high or low 
 rate of freight, are all immaterial to tho cost of locking a vessel through tho canal. 
 Tho tax should bo lovisd upon the vessel without referouce to the cargo transported. 
 It would be a much more simple and convenient method of collecting a revenue ; it 
 would prevent all agitation of interested communities or individuals for discriminating 
 rates in favor of some particular commodity or for soraesoctional into 'est. It would bo 
 
Il 
 
 100 
 
 difficult under tnie system, to introduce the erroneous and fallaciouB principle that by 
 raising or lowering the tax, either on one article, or the whole, of the commodities trans- 
 ported, would, within the limit of the small tax that has hitherto been imposed upon 
 the canala, have the slightest oflPoct in diverting trade from one channel to another, 
 or increase the transport of any one article a single ton, cither in direction or 
 quantity. Time has proved that all discriminations in tolls, free caijula upon the St. 
 Lawrence route have not diverted tonnage from the Erie Canal, or aflTected in the 
 slightest degree the channels of commerce through the United States. With purely 
 Canadian business, it would appear a policy of " robbing Peter to pay Paul," or 
 taking from one pocket and placing in another. The tax being infinitesimal, it would 
 not have the slightest effect in influencing values dependent upon supply and demand, 
 the producer would not obtain more for his products, nor the consumer purchase them 
 at loss cost. The remitted toll becomes an increased profit to some interest, between 
 the two, which, by the taxation rendered necessary by a free canal system, would 
 be chiefly taken from the eai-nings of the producer. The tolls, if remitted for the 
 benefit of some interest, would not act as a bounty. Take, for instance, the vessel 
 interest. It has been previously shown that the size of a vessel is a far more impor- 
 tant factor than tolls. If the whole question of transportation by this routo be in- 
 vestigated, it would be found that there are entering into the problems of trade and 
 commerce by it, or rival routes, as well as the one cited, numerous other factors hav- 
 ing greater weight in the direction of trade than the tolls hitherto levied, or that will 
 ever be levied for the maintenance and operation of ou" canals. 
 
 The specific rtte, per registered tonnage of vessels, collected, as on a turnpike in 
 one direction, would be simple and equitable. The cargoes carried would only re- 
 quire to be noted for statistical purposes, and as a register ot the commerce and trade 
 through the Crnadian canals. 
 
 On the Swedish canals they have both this system and that now in operation 
 upon our canals. The vessel can elect, at the opening of navigation, whether it shall 
 pay a specific rate per ton measurement, without roferonco to cargo, or pay the tolls 
 according to quantity and character of the cargo transported. Which over system is 
 adopted must bo continued throughout the season. 
 
 The second method of collecting tolls, or levying the tax upon articles trans- 
 ported, may be referred to. As has been stated previously, it is not within the pro- 
 vince of a canal management to proportion the tax as an assessment, by value of 
 the commodity tran8i)orted,or by rate of freight. It costs no more to pass and lock a 
 vessel through a canal, whether she carries a cargo of sand or wheat, of $2,000 or 
 $60,000 value. The principle is thoorolically correct, that the tax should be levied 
 without reference to the value of the commodity or rate of freight. This principle 
 has been partially adopted upon the Welland and St. Lawrence Canals, by the com 
 bining of the classes into one, with a spocitic rate where the articles in the class may 
 vary from $1 to $200 por ton in value. 
 
 1st 
 
 2nd 
 
 3rd 
 
 4th 
 
 A 
 
 B 
 
 C 
 
. 
 
 . 
 
 101 
 
 It would appear preferable, if the tax is upon the article transported, that it 
 should bo proportional to the rates of freight, according to the classification of steam- 
 boat and railway companies. A carload of sugar is not carried at the same rate as 
 one of coal ; neither does a steamboat carry a ton of merchandise at the same rate 
 as a ton of grain. The toll to bo equitable ^ould, therefore, require to be some 
 percentage of the freight rates. On this principle, there would bo an extended toll 
 sheet of regularly classifiefl freight. 
 
 If the cinal is considered as a competing route to railways, their freight rates 
 and classification should be regarded, in order that the steamboat competing should 
 not be weighted by the manner in which the tolls are levied. As a practical ex- 
 ample, in which all the questions aflfecting water and railway transport enter, the 
 Delaware and Karitan Canal, affording an inland n.ivigation between New York and 
 Delaware Bay, may be cited. This canal is leased and operated by the Pennsylvania 
 Railroad Company^ The rates of toll require to be arranged, with reference to 
 three considerations : — Ist. The canal is in direct opposition to the railway company 
 that operates it. 2nd. The tolls cannot be placed so high that the vessels using it 
 could not compete with the outside ocean lines between New York and Philadelphia, 
 or other places on the Delaware Bay. 3rd. The tolls require to be suflScient to pay the 
 interest, maintain the canal and operate it. It is evident a toll sheet, arranged to meet 
 these different considerations, by a railway company practically conversant and 
 directly interested, would be an excellent example of well-arranged rates and classifi- 
 cation. 
 
 Articles of freight upon the canal are divided into seven classes— class Nob. 
 
 1, 2, 3, 4, and A, B, C. All unenumerated articles are classified according to the 
 
 railway classification of the line running between the same points. The canal is 
 
 some 43 miles lone— about the same length as the combined St. Lawrence Canals, 
 
 and 16 miles longer than the Welland Canal. 
 
 These are the rates of toll per ton of 2,240 pounds : 
 
 Through Rates. Way per Mile. 
 
 $ Cts. Cts. Milla. 
 
 Ist class 150 3 5 
 
 2nd «' 1 20 3 
 
 3rd " 10 2 5 
 
 4th " 45 1 5 
 
 A " 40 1 2 
 
 B " 35 1 
 
 " 30 8 
 
 On a ton of 2,000 pounds, nearly all the articles embraced in the above classes, 
 from Lake Erie to Montreal, with some 10 miles of canal, the toll is 20 cents ; 
 through the Welland Canal, 27 miles, 20 cents; and St. Lawrence Canals, 43 miles, 
 15 cents. 
 
 The policy of the Erie Canal was to reduce tolls on West-bound freight. In 
 1882, tolls wore taken off all articles moving from tide water. This example might 
 8 
 
102 
 
 bo followed with advautago on the St. Lawrence route. One of the chief disadvan- 
 tages under which it has labored, and a cause of the increased cost of transportation, 
 was the lack or small quantity of return freights. The percentage of West-bound 
 freight is much loss that the East-bound on all routes, both water ar ' rail, from the 
 West to the seaboard. By free canals for all freight moving from tide water, and 
 by the tax for the maintenance and repairs being levied on the freight in the paying 
 direction of the trip, it might have the tendency to attract to the St. Lawrence route 
 westward tonnage. This is a simplification in the colloction of tolls, and preferable 
 to reduction of tolls. It places the vessel in the same position as a waggon loaded 
 going through a toll bar; whether it returns empty, loaded or partially loaded, it 
 pays no toll. It would allow those engaged in transportation an apportunity of 
 apportioning their freight rates and dividing the tax over the East and West trip. 
 They only have a knowledge of the requirements of their business and what may be 
 expedient under the circumstances. If a vessel owner, without business agents in 
 Bast, and unacquainted with the route, accepts a charter to carry grain to Kingston, 
 he can know before he sails what tolls will bo collected, and that any return freight 
 he may obtain at Kingston, Oswego or other lake ports will be free of toll. There 
 would be a free St. Lawrence in one direction, founded not upon the principle of free 
 canals, but upon the most judicious method of levying a tax and allowing those 
 directly interested and conversant with the Bubjoct lo adjust the tax on the East and 
 West freights in the manner most advantageous to their interest. 
 
 The cost of transportation on rail and waterways is generally reduced to the 
 unit of the cost of carrying one ton a mile. 
 
 In railway statistics the receipts for freight are reduced to the ton mile and the 
 cost of transport. In analysing any canal tax or toll, such a unit is the only means 
 of convoying an intelligible impression of the relation of this tax to freight rates or 
 cost of transport. Whon referring to a canal with the toll based upon the cost of 
 operating and maintaining it, the lax would bo a certain rale per ton mile of the 
 actual mileage of the canal. In comparison with railways and rival water routes, 
 the tax would be reduced to the mileage or distance the canal enables the vessel to 
 carry freight. The St. Lawrence route is similar to the turnpike referred to pre- 
 viously. From Lake Erie to Montreal the first toll bar being the entrance to the 
 Welland Canal ; the second, the entrance to the St, Lawrence Canals. Dividing into 
 two sections of equal length, we would have the Lake Ontario section of, say Lake 
 Erie to Kingston ; the St. Lawrence section from Kingston to Montreal. The capital 
 account, before the enlargement, was nearly the same on both of bhese sections, and 
 when the canals are fully enlarged this account, and the maintenance and repairs of 
 both sections, will become enough alike, that an equal tax should be imposed on both 
 sections. During the fiscal year 1882-83, the actual cost of moving a ton of property 
 through the Welland Canal was 23'78 cents, that through the St. Lawrence Canals, 
 23-67 cents. With these facts in view, I cannot understand why a propeller should pay 
 20 cents a ton on freight, say from Sarnia to Toronto, while from Toronto to Mon- 
 
103 
 
 advan- 
 talion, 
 -bound 
 om tho 
 er, and 
 paying 
 
 roulo 
 iferablo 
 
 loaded 
 aded, it 
 inity of 
 5st trip, 
 may be 
 rents in 
 ingston, 
 
 1 freight 
 
 There 
 of free 
 ng those 
 Rast and 
 
 i to the 
 
 and tlio 
 y means 
 rates or 
 cost of 
 e of tho 
 routes, 
 vessel to 
 i to pre- 
 to tho 
 ding into 
 say Lake 
 10 capital 
 ions, and 
 epairs of 
 i on both 
 property 
 10 Canals, 
 lould pay 
 to Mon- 
 
 treal, nearly the sarao dintanco, sho pays 15 cents ; or from Sarnia to Toronto should 
 pay tho same toll as from Sarnia to Montreal, double the distance and through 
 nearly double tho canal mileage. This discriminating rate, and oven free canals, 
 have been a signal failure in tho past, as there is no trade on Lake Ontario to be 
 diverted by a free St. Lawrence. If tho object bo to divert trade from Buffalo, tho 
 reduction should cover both sections — tho Welland as well as the St. Lawrence Canals. 
 When tho surplus grain from tho North- West moves eastward, tho miller at Oshawa 
 or on the Bay of Quinte, will pay the same lax on a ton of wheat as the millor in 
 Montreal, a discrimination in favor of the latter. 
 
 Certain kinds of freight passing tho Wolland Canal, and paying toll, pass free 
 through the St. Lawrence Canals. When arriving upon Lake Ontario, tho only route 
 that could be taken would be by tho Oiwcgo Canal, from O.swogo, or by the railways 
 from ports on tho south shore of Lake Ontai-io and tho River St. Lawrence. The 
 free canals from this lake to Montreal have never prevented grain from seeking these 
 ports, their business not being competing ; neither has any grain arrived at Montreal 
 since this policy was adopted, in 1853, that, in all probability, would not have arrived 
 there if a legitimate tax per ton miio, according to tho expense of tho maintenance 
 and the operation of tho St. Lawrence Canals, had boon imposed upon them. 
 
 Tlio two competing routes, tho Erie Canal and tho St. Lawrence and Wolland 
 Canals, arecomjioting for the same trade — export grain — tho chief business in cereals 
 of both routes. Tho degree and measure of discrimination, in favor of the Erie Canal 
 free, that tho present tolls on the St. Lawrence route afford, may bo considered. 
 
 From Lake Erie to Montreal is some 375 miles ; from Lake Erie to Albany some 
 350 miles, making tho present tax a little over J mill per ton mile. Tho rate from Lake 
 Erie to Montreal is at present 20 cents per ton mile. It could bo increased to 37J 
 or 1 mill per ton mile, without affecting the routo in comparison with a free Erie 
 Canal. All computation with regard to diminished cost of transport by increased 
 size of vessel and barges must be erroneous, if at present the scale of navigation, and 
 in a greater degree, when tho canal enlargement is completed, does not more than 
 compensate for this toll. 
 
 In arranging a toll sheet, on sound and equitable principles, based upon the cost 
 of operating the canal without reference to rival routes, either rail or walei-, to divert 
 business from which has proved hitherto so abortive, and not with tho delusive 
 hope by discriminations in favor of I'outcs, articles transported, or sectional interests, 
 to divert trade from its natural channels. Upon these principles a tax could bo 
 levied in the following manner: 
 
 Tho tirst method proposed would be that tho toll be leviod on the measured ton 
 nage of a vessel, without reference to cargo, and in one direction. 
 
 Tho second, that if tolls bo levied upon the articles transported, it be done under 
 
 a similar classification to the Delaware and Raritan Canal, and that all articles bo 
 
 free moving westward. For convenience, and to avoid unnecessary figures in an 
 
 extended classification, there may be taken a definite rate for tho whole tounage 
 
 8i 
 
104 
 
 moved without reference to claBses, for the object of showing the difference of rates 
 and revenue by fieo canals westward, and the present method of collection. 
 
 Taking the two sections, Lake Ontario and St. Lawrence, each, say 187A miles 
 in length, a toll of Ij^ mills per ton mile would bo 30 cents a ton on each section. On 
 railways and canals, the longer distance the loss freight rates. On this principle, and 
 to preserve a relative proportion to these charges on through freight from Lake Erie 
 to Montreal, the toll would bo two-thirds, say, of the combined rates, or 40 cents per 
 ton, a little over mill per ton mile. 
 
 For the fiscal years 1882-83, the canal statistics show the following movement of 
 eastward freight, in round numbers ; — 
 
 WELLAND CANAL. 
 
 Through tonnage from Lake Brio to Lake Ontario 256,000 tons. 
 
 Way tonnage down G4,000 " 
 
 ST. LAWRENCE CANALS. 
 
 Through tonnage from Lake Ontario to Montreal 233,000 tons. 
 
 Way tonnage down 180,000 " 
 
 Through tonnage from Lake Erie to Montreal 221,000 " 
 
 By the rate previously established, we would have : — 
 
 Welland Canal, through, 260,000 tons at 30c $ 16,800 00 
 
 " " way, 64,000 tons at 10c 6,400 00 
 
 St. Lawrence Canals, through, 233,000 tons at 30c 69,900 00 
 
 " " way, 180,000 tons at 10c 18,800 00 
 
 LakeErie to Montreal, 221,000 tons at 40c 88,400 00 
 
 Total revenue $259,500 00 
 
 Total revenue collected on up and down tonnage in 1882 and 1883, Welland and 
 St. Lawrence Canals, $201,000. By this approximate calculation and rates, we have 
 a revenue of some $58,500 greater on tho eastward tonnage than was collected on 
 both westward and eastward tonnage, when this assumed rate is apportioned to tho 
 various claasos of freight, either higher or lower, it would change to some degree the 
 total amount of I'ovenue, but would not affect the principle, as the rates could be so 
 apportioned to the various classes to furnibh the same revenue. No reference has 
 been made to the tolls upon tonnage of vessels. Steam vessels now pay IJ cents per 
 ton, each way, upon the Welland Canal, and | cents each way, upon the St. 
 Lawrence Canals, tho toll might be fixed at 2 cents upon each section, one way, and 
 free the other, and 3 cents through both. By the first method of collection on the 
 tonnage of vessels, the same system could be adopted, a rate being made for each 
 section, for vessels through both sections, and for way tonnage. The toll to bo col- 
 lected upon a vessel coming into a canal, either up or down. A let-pass could bo 
 given, allowing her to return free at any time during tho season of navigation. 
 
 Jut 
 
105 
 
 Tho Board of Works when tho canala wore first constructed colloctod tho rovcnuo 
 and paid it over to what was then tho Finance Department, in similar manner to tho 
 Intercolonial lliilway at present. Tho revenue and statistics were subsequently 
 under the Department of Customs as Trade and Navigation. After Confederation 
 they came under the Department of Inland Revenue. Being handed around from 
 one Department to another, th^^e is no compilation of comparative statistics furnished 
 each year of the business of canals, from the date of their construction, tho revenues 
 apportioned to each canal, and such a consecutive system that an intelligent conclu- 
 sion could be formed of the trade and commerce of the canals, similar to tho statistics 
 of the Now York canals. The revenue has been collected and changed about in a 
 number of different ways, so that it is impossible to determine the comparative 
 expenditure and revenue on each canal. Tho revenue was first collected from the 
 Ordnance canals, embracing the Eidoau and Ordnance canals on tho Ottawa — the 
 Ste. Ann's Lock — the St. Ours Lock and Chambly Canal, afterward from the Eideau 
 and Ottawa combined, and now the Eideau and Ottawa Canals separately. On tho 
 St. Lawrence, the tolls, on the through tonnage which is free through one soclion from 
 Lake Erie to Montreal, and vice versa, have been credited to tho section where collected, 
 on the down tonnage collected at the Welland being much greater than tho up collected 
 at Lachino, tho St. Lawrence Canals have not their share of the revenue. It is only 
 within the last two years that tho movement has been discerned upon tho St. Law- 
 rence and Welland Canals into through, and way tonnage, on each section, and tonnage 
 through both sections. 
 
 Tho St. Lawrence Canals should be separated from the Ottawa Canals ; tho 
 traffic from the Ottawa Canals now swells Ihe tonnage of tho St. Lawrence Canals, 
 merely passing through tho Lachino or eight miles of the forty of canals. Tho two 
 scales of navigation being different, it gives an erroneous impression of tho tonnage 
 of vessels on tho St. Lawrence Canals, The tonnage on the Ottawa Canals should be 
 separated from tho St. Lavvrronce Canals. Wo would then have the revenue and 
 statistics according to the scale of navigation. On this principle there would bo the 
 Eideau Canal, the Ottawa Canal3,embracing the Lachino, that is all tonnage from tho 
 Ottawa through Lnchino to be credited to the Ottawa system ; tho Eicholiou navigfi- 
 tion , the St. Lawrence system from Montreal to Lake Erie. 
 
 CONCLUOINO REMARKS. 
 
 In concluding this report, I may refer in particular to a renewed agitation for 
 the abolition of tolls at tho opening of the present season of navigation. 
 
 In a memorial of tho Montreal Corn Exchange Association, dated 20lh May, 
 1884, it is stated : " That the St. Lawrence route has already lost, and as your me- 
 morialists believe, must continue to lose its normal share of the grain export trade of 
 this Continent, unless the exceptional and onerous taxation is ameliorated." One of 
 the imposts specified and given great prominence, aro canal tolls ; the others men- 
 tioned do not come within the province of the Department of Eailways and Canals. 
 Judging by remarks in the press of Montreal, it would be supposed that deducting 
 
106 
 
 this 20 cents per ton toll, and with some other reductions, the grain would invariably 
 and continually seek the St. Lawrence route for export, that the causes, since the 
 opening cf navigation, of the deprosaion in the export grain business of Montreal, 
 wore local, or caused by numerous taxes. Tiie great factors operative, are un- 
 considered. Of those factors, the principal are : First. Low prices and diminished 
 exports. The average price of homo-grown wheat per quarter, in 150 towns of 
 England, has been lower this year than since 1780. Taking the last 33 years, the 
 lowest average price for the year was: In 1851, 38s. "Zd. ; in 1852,41s.; in 1864, 
 408. ; in 1883, 41s. Td., and up to July, 1884, it averaged STs. 4d. per quarter. 
 
 The exports from five Atlantic ports of wheat and corn, from 1st Soplerabor to 
 12th July, 1883-84, were over 27,500,000 of bushels less than the corresponding 
 period of 1882-83. 
 
 Second. Low rail rates. 
 
 Early in the year the railways commenced cutting rates — a reduction was 
 ordered. From 20th March to Ist July, the rate was 15 cents per 100 lbs. from 
 Chicago to New York, or 10 and 15 cents below the usual rates. 
 
 The effect of this reduction, during the season of navigation, may bo seen from 
 the through shipments, East from Chicago, during the three months of April, May 
 and June. 
 
 Tons. 
 
 1882 370,049 
 
 1883 443,987 
 
 1884 976,909 
 
 The railways have, therefore, carried the largest proportion of grain exported ; 
 and as Montreal, for some reason, either does not wish, or makes no endeavor, to 
 obtain this rail business, consequently there has been little grain in Montreal to load 
 vessels. The rates were raised on Jul Ist to 20 cents and on July 21st to 25 cents 
 par 100 lbs., or $2 per ton. It is suited .lat larger quantities of grain are now coming 
 down the St. Lawrence, which no one will assert is caused by 10 cents per ton reduction 
 in tolls. 
 
 All the figures given here are taken or compiled from vaiious commercial paj)er8 
 and presumably sufficiently accurate for illustration. The deductions are merely a 
 repetition in detail, and applicable to the present year, of what has boon previously 
 stated in this report. The receipts at Atlantic seaboard ports were, from the 24th 
 December, 1883, to 19th July, 1884, 50,863,541 bushels of wheat and corn, and 
 •78,578,019 bushels during the same period in 1882-83. The total exports of wheat 
 and corn from five Atlantic ports were as follows, from the opening of navigation at 
 
 Montreal to 12th July, 1884. 
 
 Bushels. Percentage. 
 
 New Fork 1,397,113 49-1 
 
 Baltimore 3,699,545 24-8 
 
 Montreal 1,537,244 10-4 
 
 Boston 1,266,992 8-4 
 
 Philadelphia 1,078,092 7-3 
 
m 
 
 Thoso exports will bo divided into two cIuhhos, and diHCiiHScd separately 
 That portion received at Atlantic ports by rail and by water : 
 
 During May and Juno, the rates on grain from Chicago to Now Yoik, Philadel- 
 phia and Baltimore wore 15 cents, 13 cents and 12 cents per 100 pounds, respec- 
 tively. The rate to Montreal is said to be the sarao as Philadolphiu, or 2 cents less 
 than to New York. The first ocean steamers to arrive at Montreal, could with diffi- 
 culty, obtain grain to steady them on departing. The grain by the Brie Canal had 
 only commenced to arrive at the ecd of the month of May; therefore, as nearly all 
 the exportation of that month was carrieil by rail, tho canal tolls cannot bo said to 
 have prevented a largo quantity of grain from being put in store at Montreal, just 
 previous to tho opening of navigation, to load the first arrivals, nor with -40 cents 
 per ton less freight rate than to New York to have exported as much as any of tho 
 other Atlantic ports. 
 
 Prom the daily papers the receipts at Montreal, of wheat and corn, from 1st May 
 to 4th July, appears to be, by rail, 385,664 bushohi. 1 find, during the month of May 
 and June, that there was shipped oast from Chicago by tho Grand Trunk Eailway 
 52,749 tons of grain or some 15 per cent, of tho total quantity shipped by all tho 
 Trunk Linos. Tho description of grain is not specified; it might bo over one and 
 three-quarter million bushels, or more than tho total quantity of wheat and corn 
 exported from Montreal during those months. 
 
 Of the total exports, we may make an approximate illustration of tho quantity 
 exported, received by rail at five seaboard ports, say some seven and one-half million 
 bushels of wheat and corn. Montreal, with rates in her favor over Boston of $1.40 
 per ton, over New York 40 cents, Philadelphia equal, and 20 cents per ton greater 
 than Baltimore, should not ascribe lacii of business to canal tolls. Tho receipts of 
 Baltimore are principally by the Biltimoro and Ohio railway; the mileage from 
 both that city and Montreal is practically the same to Chicago; the Grand Trunk 
 Eailway has carried east from that oity,52,t49 tons of grain, a small quantity of which 
 only is exported from Montreal, while to Baltimore there are ovor throe and one-half 
 million bushels of wheat and corn carried by rail and exported since tho opening of 
 navigation at Montreal. At Boston and Philadelphia over a million of bushels of 
 wheat and corn received by rail in May and Jane, have been exported. 
 Why there has not boon as large a quantity received at Montreal by rail as at tho 
 two latter ports, cannot bo attributed to canal tolls. 
 
 The receipts by water have not boon small on tho Canadian route alone, as shown 
 
 by tho following statement of receipts of wheat and corn by Erie Canal at tide water, 
 
 and at Montreal by Lachino Canal from tho opening of navigation to 4th July, in 1883 
 
 and 1884. 
 
 Bushels. Bushela. 
 
 1883. 1884. 
 
 Erie Canal 9,230,200 5,072,900 
 
 Lachino Canal 3,482,899 1,176,499 
 
 During May and Juno the receipts at Buffalo, of wheat and corn, were, in 1883, 
 
 15 ,713,980 bushels, and in 1884, 10,584,520 bushels, 
 
108 
 
 To bfi , in addition to UioBO figures, Ibo ofTocl of llio low rail freighta upon tbo 
 transport un the Lakce and Erie Canal, the following figurcH of rocotpls of grain at 
 New York in the month of Jano, 1883 and 1884, are given : 
 
 1883. 1884. 
 
 Bushels. Baaheli. 
 
 Canal 6,231,910 3,4T6,335 
 
 Kail 4,370,664 6,846,667 
 
 Total 10 602,574 10,323,002 
 
 Although there has not been a groat decrease in the total receipts, that by canul, 
 has fallen off nearly 60 per cent., while the rail receipts have increased some 
 2,500,000 bushels, in face of low prices and a light foroiga demand. 
 
 That Montreal has been, during tho months of May and June, if the rates had 
 been correspondingly reduced on both water-routes, at no disadvantage with New 
 York, may be seen by the following figures of rates of freight upon a ton of wheat : 
 
 Chicago to Buflfalo, (lake), 900 miles at /j mills per ton mile $ 63 
 
 Buffalo charges, say , 30 
 
 Lake insurance 20 
 
 Canal ireight, 500 miles at 2^ mills ton mile 1 16i^ 
 
 Total. 
 
 $2 29,^ 
 
 If we take tho St. Lawrence route, and adding ^^^ of a mill per ton mile for addi- 
 tional expense of navigating the Welland Canal : 
 
 Chicago to Kingston, 1,100 miles, at 1 mill ton mile $ 1 10 
 
 Insurance, Chicago to Montreal 
 
 Canal tolls 
 
 Kingston to Montreal, barge freight, 180 miles, at 2^ mills ton mile 
 
 Total 
 
 40 
 20 
 42 
 
 $2 12 
 
 Taking tho all-rail routes wo have : 
 
 Chicago to Montreal, at 13c. per 100 lbs $ 2 60 
 
 Chicago to New York, at 15c. " " 3 00 
 
 We thus see, as far as canal tolls are concerned, both in the past, as shown pre- 
 viously, and this season, if the freight rates are reduced corrospondinglj'^ in dull 
 times, they do not interfere with exports via Montreal, and as to terraioal charges, 
 they are less at Montreal than at New York 
 
 From the opening of navigation to the 19th July, the oommorcial papers report 
 weekly the movement of wheat and corn from western lake ports. There appears to 
 have been 1,146,730 bushels shipped to Montreal and Kingston, and 1,356,988 bushels 
 to Ogdonsburg, Oswego and Cape Vincent. The principal part of this was to Ogdens- 
 burg, and paid 40 cents per ton toll, that is the expense of lightening, in addition to 
 
109 
 
 the 20 ccntH toll upon tho WollanJ Canal. To Montreal and Kingston the toll vtna 
 10 cents per ton. Surely, if those Araorican porta could pay full tolls and compoto 
 with tho cut ratoH of tho railways, tho grain trade of Montreal would not havo boon 
 ruined this season if there had not boon a reduction in tolls, or if they aro not 
 aboli-jhcd. 
 
 Perhaps never in tho past nor in tho future, until rates by rail aro again as low, 
 combined with light foreign demand, low prices and railways carrying bolow cost, 
 will tho slight efVoct of tolls be so clearly exemplified, as during this eoason from tho 
 opening of navigation to tho 1st July, when tho rail rate was raised, or wo may say 
 until tho 21st July, when it was further raised to its normal rate. 
 
 It is quite obvious, tbatif with this conjunction, there was a greater movement 
 to American ports, paying full toll, while down the St. Lawrence, there was a lighter 
 paying half toll, it is merely a question of trade, and not of the slight tax levied for 
 the maintenance of tho canals. 
 
 Tho fallacy of laying stress upon canal tolls, is no better illustrated than in tho 
 differential rates between different seaboard cities. Now York merchants complain 
 that trade is being diverted to Philadelphia and Baltimore, tho latter assert that New 
 York wishes to monopolize tho trade of tho country, but still the differential'" are 
 maintained and tho trade and commerce of these cities do not seem to be declin ng. 
 Ships seek those ports, and their trade and commerce is governed by economic and 
 commercial principles, and not because it costs to move a ton of grain from Chicago 
 to Boston $1.00 more than to Now York, $1.40 more than to Philadelphia, $1.60 more 
 than to Bullimore, or it costs Now York 40 cents more than Philadelphia, and 60 
 cents moro than Baltimore, or it costs Philadelphia 20 cents more than Baltimore. 
 
 This brings us to the differentials on tho water-routes— 20 cents toll per ton 
 in favor of Now York, while Montreal has 40 cents per ton in hor favor by rail. 
 
 As to the 20 cents toll in the first place, considering economic transportation per 
 se, without reference to trade and commerce, tho St. Lawrence route is at present, 
 including the tolls, and will be in a greater degree when the WoUand Canal is deepened 
 and tue St. Lawrence Canals are enlarged, a much cheaper route for transport than 
 tho Erie Canal. 
 
 It is stated that grain is essential for ballast, the exports generally being between 
 deck's cargoes. In New York and Boston tho line steamships carry grain frequently 
 for biUast, and at a nominal rate, not to invalidate the insurance. They also, when 
 there is no grain being exported, buy it for ballast, and sell it upon the other side. 
 
 The shipping, arriving at Montreal, brings very little freight for tho Western 
 States ; there is a very slight intercommunity of trade relations between Western 
 United States lake ports and Montreal ; if our own country is not able to support by 
 its exports and imports, the ships which seek the St. Lawrence, too many may arrive. 
 If tho steamship lines wish grain for ballast, which cannot be grown in the country^ 
 thoy are at no disadvantage with those in New York ; they, and their agents, can 
 buy it at Chicago, from which place it can, either by rail or water, be laid down at 
 Montreal as cheaply as southern ports. 
 
no 
 
 This inoffoclual Htriving in oarly days to obtain the tranport of tho Araoriran 
 barrel of flour, and latterly the bushel of wheat or corn — when obtained, what aro 
 tho profitH to the country ? Tho imporlH of tho WoHtorn StaloH havo not Houj^ht 
 this route ; tho principal poition of the grain ia carried in American bottomrt to 
 KingHton, which sail across Iho lake and obtain a return cargo; it is transhipped 
 anl carried in barges, employing some labor, consisting of bargemen, shovellers, 
 &o. ; it arrives at Montreal, and there are certain commissions and charges which 
 benefit a few peoplo. To place that ton of grain in Montreal, it has perhaps 
 cost the country $1.00 in interest, and as previously stated, to move a ton of produce 
 through the Wei land and St. Lawrence Canals, costs nearly 60 cents for mainten- 
 ance and repairs, or 81.50 in all ; it is now asked to nhift this toll of 20 cents, less 
 than tho cost of passing the ton of wheat through tho canals, from those who alone aro 
 interested and benefitted, to tho general taxpayer who is already contributing $1.00 
 per ton in interest. 
 
 Assuming that it is after tho grain arrives in Montreal, that certain taxes, 
 lack of facilities for handling a largo business with economy and dispatch, higher 
 ocean freight rates and insurance, or all the disadvantages that could bo 
 onumeratod, which combined, would render this route more expensive for 
 transportation than those to the South, the remittance of the toll upon one section 
 as compensation of tho expenses of the other, becomes a subsidy to tho latter. 
 This subsidy may be divided into that portion which compensates for doficencies 
 in tho power of the Federal Government to remedy, and that which compensates 
 for doficepf 'f"» which should bo provided against by the enterprise of cities or indi- 
 viduals. With reference to tho former, it has boon the endeavor of the Federal 
 Government, by the erection of lighthouses, telegraph and signal service, and other 
 improvements, to render the Gulf and River St. Lawrence as safe a navigation as 
 possible, bnt it can never change tho climate, nor compensate for a long closing of 
 navigation, or for higher insurance in spring and autumn, and consequently for 
 higher ocean freight rates. 
 
 With reference to tho latter, it becomes a transference of individual or corporate 
 and sectional obligations to tho Federal Government. In whatever light it is looked 
 at, this abolition of tolls is a subsidy to obtain a foreign trade, that it has never been, 
 or now is necessary, for tho transport of our own productions, is evident by tho fact 
 that some 50 per cent, of tho traffic of the Welland Canal has been American, if it 
 can afford to pay full tolls, certainly the Canadian can. 
 
 From Chicago to New York is about the same distance by rail as to Quebec, it is 
 just as logical for Halifax to ask that grain should be carried free from Chaudiore 
 Junction to that city, in winter, to enable her to compote with Now York for tho 
 export grain trade, during that season, as for Montreal to ask that canal tolls be 
 abolished to enable her to compete with southern cities in the summer. There can 
 be no valid reason for this remission, if it is asked by the vessel interest, in order to 
 compete with railways; if the latter can pay dividends after paying cost of operation. 
 
 
Ill 
 
 and curry at Hucb ratoa that voHSola ara unablo to compoto, without having the toilH, 
 nocoHsary for iho tnaintonanco of the canal through which thoy puBu, aboIiHhod, 
 omitting altogothor tho intoroHt on tho capital oxpondod, thon tho cunuls had bottor 
 bo closed up or converted into water-power canals as tho country is developed. 
 
 If tho remission ia necessary to divert trade from somo rival route, give a 
 direct subsidy to competing lines of steamers or vessels. 
 
 If tho remission is necessary ai a national buucfit, to obtain tho transport of any 
 particular product, in tho interest of any trade or section, make it a direct bounty, or 
 say, grant a bounty of 20 cents on every ton of American grain that is exported by 
 the St. Lawrence route. In this way there would bo no necessity of obtaining a 
 I'arliamontary vote each year for the maintenance and repairs of tho canals, under 
 such a system, it is doubtful and highly improbable, if they could bo as well and 
 olBciently operated and maintained, as by a small tux imposed on tho products trans- 
 ported through thom. 
 
 It Is generally conceded, that when tho North- West becomes populated, it will 
 bo tho greatest wheat producing section of tho American Continent. It has boon 
 shown that tho only economic transportation to tho consuming markets of tho 
 Eastern part of this Continent and of Europe, is by tho Groat Lakes and River St. 
 Lawrence. 
 
 For tho markets of Europe, there are, as competitors, tho sections of tho country 
 East, although not producing the somo class of wheat, it can bo marketed at tho sea- 
 board at a lower cost of transportation. Tho North-Wost wheat, although bringing 
 a higher price for milling purposes than other descriptions, that price ia relative, and 
 if by competition of surplus wheat producing countries and good harvests in Great 
 Britain, thoro will bo, as exports appear to believe, a series of years of low 
 prices ; it will merely preserve its relative value with other grades. The longer dis- 
 tance this wheat has to bo transported will neutralize tho greater viiluo, so that tho 
 producer in the West will not recoive perhaps as high a price as ono in tho East for 
 tho lower grade of wheat. 
 
 In the crop year, ending September Ist, 1882, the imports from tho principal 
 countries into Great Britain, of wheat, wore : — 
 
 Owt. 
 
 From tho United States 33,G03,325 
 
 " British India 9,740,310 
 
 " Russia 8,579,297 
 
 " Germany 3,258,275 
 
 " British North American 2,821,3,^6 
 
 " Australia 2,686,844 
 
 To the North- West tho principal competition will bo from British India. Gi-^nt 
 Britain ia making every effort, by largo expeditures for railways throughout that 
 country, to enable its low priced labor and small cost of production to compete with 
 this continent for the supply of wheat. The Indian Government intend, during the 
 
112 
 
 next five years, expending £33,462,000 Stirling in constructing now railways and 
 improvirg those existing. 
 
 Another groat competitor will bo Eussia, whoso Government has, a few months 
 
 ago, issued a loan of $75,000,000 for the construction of thirteen new railways, which 
 
 will decrease the cost of transporting grain to tho markets of Europe, and make a 
 
 formidable competitor to this continent. Tho United States Consul at Moscow 
 
 states : — 
 
 "My opinion, afler conversing with the leading grain dealers of Russia, is that 
 tho EuBsians are about to make a resolute and determined effort to regain at least a 
 part of thoir lost prestige of supplying Europe with grain, and to this end thoy are 
 now large buyers of agricultural implements to facilitate tho development of their 
 crops ; they are erecting grain elevators and, in fact, are adopting our ideas in gene- 
 ral, to accomplish the desired result." 
 
 With these facts in view, it is open to question whether, if prices in Europe have 
 a permanent depression, the eastern part of this continent will not be a better market 
 ior North-Wost grain than Great Britain. 
 
 The deficiency of the Maritime Provinces, tho Eastern and Middle States, might 
 be taken at 40,000,000 bushels per annum, or nearly as great as the exports ot tho 
 continent to Great Britain. In whatever light the quebtion may be viewed, cheap 
 transportation is of paramount importance to the North- West. It is not settled by 
 railway from Port Arthur or by lake and rail, no more than it is by railways from 
 Duluth, Milwaukee and Chicago, and other ports from which it has been shown the 
 principal part of the grain is shipped by lake, but it will be afforded when a greater 
 depth of water is obtained in the Wolland Canal, and those of the St. Lawrence 
 Canals, yet to be enlarged, are completed. Tho Vice-President of tho Canadian Pacific 
 Railway estimates that in two years there will bo a surplus of 10,000,000 bushels to 
 be shipped east, and it is stated that tho present freight rates, including elevator 
 charges, is 21J cents per bushel from Winnipeg to Montreal, lake and rail ; this is a 
 low rate. By tho enlarged canal system it should bo transported for 18 cents per bushel, 
 allowing 70 per cent, to take the all- water route, the remainder all-rail or lake and 
 rail, we would have on the 7,000,000 bushels, a saving of $665,000 in the cost of 
 transportation, or tho interest at 4 per cent, of over $16,500,000, greater than half the 
 estimate for enlarging tho Wolland and St. Lawrence Canals. 
 
 Although the movement of grain through the Welland Canal has boon light this 
 year, during tho months of May and June, six propellers, in twelve trips, transported, 
 principally to Ogdonsburg, 586,649 bushels of grain, 181,433 bushels of which 
 required to be lightened some 30 per cent., at a cost of $3,376.61. 
 
 This season of navigation has been one of tho most crucial tests of the transport 
 by waterways, as compared -with railways. The former have had to carry at such 
 rates as would preclude a profit, through tho competition of the numerous cor- noting 
 through lines and the low rates of transport. It would appear that rates based on 
 a rate of 15 cents for 100 lbs., from Chicago to New York, would offer a serious 
 competition to the water-ways. The following figures are compiled from the New 
 
Iwaya and 
 
 !W months 
 lye, which 
 id make a 
 t Moscow 
 
 lia, is that 
 at leaRt a 
 i thoy are 
 t of their 
 .8 in gene- 
 rope have 
 ar market 
 
 ;es, might 
 rts of the 
 cd, cheap 
 lottled by 
 ays from 
 ihown the 
 a greater 
 Lawrence 
 an Pacific 
 )nshel8 to 
 J elevator 
 ; this is a 
 er bushel, 
 lake and 
 he cost of 
 1 half the 
 
 light this 
 n sported, 
 of which 
 
 transport 
 J at such 
 jrrpoting 
 based on 
 a serious 
 the New 
 
 
 113 
 
 York Produce Exchange Weekly, in which the movement from western lake and river 
 ports is given each week. The shipments, by water, include those down the 
 Mississippi. The figures include the shipments from the opening of navigation to 
 9th July, 1883, and to 5th July, 1884 : 
 
 
 1883. 
 
 1384. 
 
 Per- 
 centage. 
 
 Per- 
 centage. 
 
 3y water 
 
 " rail 
 
 Bushels. 
 29,666,234 
 7,806,574 
 
 Bushels. 
 
 21,527,969 
 
 18,064,333 
 
 76 6 
 23-6 
 
 64-4 
 46 6 
 
 
 Total 
 
 37,471,808 
 
 39,592,302 
 
 100-00 
 
 100-00 
 
 
 The rate in 1883 was 25 cents per 100 lbs., so that it appears to be the effect of 
 10 cents reduction to materially reduce the shipments by water. The effect of these 
 low rates may bo seen by the depreciation in value of railway stocks ; in the failure 
 to pay dividends. It is generally conceded that the roads would not have lost so 
 heavily if they had maintained rates and allowed the waterways to transport the 
 quantity which had been diverted from them. 
 
 The rates for the carriage of grain are lower upon American railways than in 
 other countries, where they confine themselves to the carriage of products which 
 naturally and economically belong to them. 
 
 The following statement gives some of the charges per ton mile for the carriage 
 of grain upon this continent and Europe : — 
 
 Great Britain. 
 
 Ots. 
 
 North British Eailway 169 miles at 1" 60 per ton mile. 
 
 Great Northern Eailway 190 " 2*00 '* 
 
 Great Southern and Western Eailway 250 " 1*40 " 
 
 The Continent. 
 
 France— Northern Eailway 186 miles, at 2 -tS per ton mile. 
 
 Belgium- State 
 Holland— State 
 Saxony — State 
 Belgium — State 
 Sweden— State 
 Austria —Southern 
 
 200 
 
 
 0-84 
 
 
 240 
 
 
 1'62 
 
 
 260 
 
 
 3-28 
 
 
 260 
 
 
 0-'74 
 
 
 600 
 
 
 2«18 
 
 
 500 
 
 
 2-06 
 
 
 America — West of the Mississipjn, 
 
 Chicago, Eock Island and Pacific E.B 183 miles, at 1-53 per ion mile. 
 
 368 '♦ 1-40 «' 
 
 500 " I'OO «« 
 
 « 
 
 II 
 
lU 
 
 America —East of the Mississippi. 
 
 Lake Shore and Michigan Southern 183 miles, at 0.87 per ton mile. 
 
 Michigan Central 285 " Q.10 " 
 
 " 345 " 0.60 " 
 
 " 520 " 0.60 « 
 
 Baltimore and Ohio 494 " 0.63 « 
 
 " 609 " 0.54 " 
 
 " 840 " 0.53 " 
 
 Canada— State Eailway 686 '« 0.612 " 
 
 Chicago to Now York (regular rates) 980 " 0.510 " 
 
 Chicago to New York (cut rates) 980 " 0.306 " 
 
 Water Transport. 
 
 Detroit to Buffalo 255 miles, at 0.2C0 per ton mile. 
 
 Chicago to Buffalo 900 " 0-125 " 
 
 " (cut rates) 900 " 0.060 " 
 
 The above figures show that in Belgium, with ita State system of railways, there 
 is the cheapest transport in Europe, and that transportation by rail, upon this con- 
 tinent, is lower than in Europe. The low transport by water can never bo 
 approached by the railways. 
 
 On this continent, if tho State had constructed the railways and operated them 
 for the benefit of the people, affording the cheapest transportation and tho most 
 economic return to the Slate for capital invested, they would have been built as 
 feeders to the waterways, the principal of which are the great lakes, the Eiver St. 
 Lawrence and the Mississippi. Instead of the ruinous competitions engendered by 
 the multiplication of competitive through lines, of the sinking of capital in unprofit- 
 able and unnecessary linos, of railway manipulation and management, which has 
 injured the reputation of America with tho capitalists of P]uropo, we would have tho 
 water-ways transporting, in summer, those products which economically belong to 
 them, a sufficient number of trunk lines for the requirements of passenger and light 
 freight traffic, and the business which would be necessary to bo done during tho 
 months that navigation is closed on tho northern water-ways. 
 
 Having referred to several subjects pertaining to this enquiry, it is hoped it has 
 been demonstrated that in the interest of the St. Lawrence route, and for the conser- 
 vr'ion of the trade and commerce of Canada through its natural water-way, an 
 increased depth of vrater in the Welland Canal is an immediate necessity; that with 
 tolls and deeper water the cost of transport would bo loss than with free canals and 
 the present scale of navigation (12 foot) ; that the present tolls are of no moment and 
 do not enter into the question either of cheap transportation, increased traffic or tho 
 direction of trade upon the canals; that there ara other causes of greater potency 
 influencing both the direction and volume of trade. 
 
I 
 
 
 , 
 
 115 
 
 This docado is tho only period in tho last half century whore the largo expendi- 
 ture made upon the St. Lawrence route could bo asserted to bo, or would become, 
 necessary for tho transport of our own productions. Some fifty years past tho canal 
 system, comprising the original Welland Canal, tho Eideau and Ottawa Canals, and 
 the first Lachino Canal, was sufficiont to transport all tho products of Canada moved 
 by tho canals to the present time. 
 
 Tho expenditure upon this route has not achieved tho objects intended ; from it 
 the Western States, indirectly, have derived tho chief advantages, by tho cheapening 
 of transport through Southern routes on account of an alternative and competing 
 route being available. 
 
 By the settlement and development of tho North-West, an enlarged canal 
 system or national waterway, of the largest capacity, becomes, for the first time, 
 ii^dispensablo, for the transport through our own country of tho future surplus pro- 
 ducts, and for preventing the diversion through a foreign country of the trade and 
 commerce of this immense territory, to open up and populate which, tho older 
 Canada has expended, and is expending, large sums of money. The only practical 
 outlet for surplus cereals is Port Arthur and Duluth ; tho only cheap transport is by 
 largo propellers and vessels to Montreal, or Buffalo and by Erie Canal to Now York. 
 Tho Americans have a magnificent lake marine of tho largest class of vessels, to 
 which are being constantly added iron and steel propellers, fitted up with the most 
 approved appliances and machinery, all of which will be unable to pass below the 
 foot of Lake Erie loaded. 
 
 It is an imperative necessity, before this movement of products becomes consid- 
 erable, and its direction influenced, that the foot of inland navigation be extended 
 from Buffalo and the east of Lake Erie to Montreal or Quebec ; that propellers with 
 2,000 tons of cargo be enabled to steam alongside the ocean vessels at those ports. 
 
 If such is not accomplished, the present enlargement will be as ineffectual and 
 as inefiicient to secure the trade of this territory as tho former was in obtaining that 
 of tho Western States. 
 
 If the increased depth of water, the pivot point upon which tho success of this 
 route turns, is not afforded, and tho improvements upon this waterway do not keep 
 pace with the construction of tho Canadian Pacific Eailway and the settlement of the 
 country, tho trade and commerce of Manitoba and tho North-West will seek foreign 
 channels eastward, by Duluth, Buffalo and Now York, or southward, to Minneapolis, 
 Milwaukee and Chicago. 
 
Form No. 364. 
 
 
 
 
 (Canals Revenue Brapch.) 
 
 Canal Offlee, ^ 190 
 
 <^.^^ 
 
 
 ■^ i^-^-<^.^ fb.ctu^ ^•^c ■'^ 
 
 
 ^JiR^^ 
 
 
 
 C 
 
 I 
 
 
 5/ vf^ -_ 
 
 r 
 
STATEMENT. 
 
 Sfiowiiuj Moreinrxt of I^ lout', Gi-ain. aitd Fhu- S,,<f (hirlinj the {imr J!)0^, 
 
 RECEIPTS. 
 
 RY 
 
 Klouk 
 
 It A UR ELS 
 
 \V>1EAT 
 
 Bushels 
 
 Flax Seed 
 
 HlISHKLS 
 
 Haulet 
 Bushbi.h 
 
 OATS 
 
 llufliiei.s 
 
 Uye 
 Bushels 
 
 Corn 
 Bushblh 
 
 Total Obain 
 «( Flax S»» 
 
 Bubbbls 
 
 G. N.RY.CO 
 
 N. P. " '• 
 
 " '• (in bond) 
 
 
 23.107.265 
 
 16.145.473 
 
 2,970,942 
 
 172,1H5 
 
 8.795,912 
 
 0.9.37.035 
 
 9,100 
 
 390,270 
 
 4,474,389 
 
 704.1S!! 
 
 17,440 
 
 355.152 
 
 5.551,101 
 
 439,285 
 
 504,435 
 
 14.S39 
 
 322.790 
 
 1,281,349 
 
 201,524 
 243, .332 
 
 1,072 
 3,iK)2 
 
 37,020,0.38 
 
 24,538,366 
 
 3,012,321 
 
 1,608,.3.50 
 
 Omaha" '• 
 
 
 3''7 819 -10 lid 
 
 
 
 
 -.v/,i..-r 
 
 Total liect'ipts 
 
 Flom- Mfd. in Duluth luitl Superior 
 
 0,907,765 
 1.809,(i20 
 
 18,420 
 
 42,.395,865 
 
 10.132,317 
 
 772.675 
 
 45,708 
 
 66,179,075 
 
 In Store, Dec. 31sl, 1001 - 
 
 10,746,741 
 510.74S 
 
 1.152,718 
 
 301. 98() 
 
 17,677,021 
 
 254,199 
 
 137.218 
 
 438,068 
 
 379,483 
 
 
 Afloat Dec. 31st, 1901 
 
 13,108,427 
 ■ 902 734 
 
 
 
 
 
 
 
 
 (ii'iunl Total 
 
 8,735,805 
 
 .53.653,354 
 
 5,805.300 
 
 l,41H,5fi7 
 
 1.210,743 
 
 425,191 
 
 •80,190,236 
 
 
 
 
 
 SHIRMEINTS. 
 
 TO 
 
 Flour 
 Barrels 
 
 Wheat 
 Bushels 
 
 Flax Seed 
 Bushels 
 
 Barley 
 Bushels 
 
 4.707,805 
 
 OATS 
 
 Bushels 
 
 Kyb 
 Bushels 
 
 Corn 
 Bushels 
 
 Total tiHAiN 
 
 & Flax 8bbi) 
 
 Bushels 
 
 American Ports — 
 
 HutTiilo 
 
 
 30.182,565 
 
 1.005.908 
 9S2.000 
 (i(i3.()05 
 ;{(I9.00(| 
 
 10,.560.451 
 1.298.161 
 
 - - 
 
 ;{53]280 
 
 0(;0,428 
 
 20,207 
 
 :iti,411 
 
 1,080,343 
 
 44,360 
 
 47,297,935 
 
 c 'hicag'o 
 
 
 .3,204,069 
 
 1.0.58,861 
 
 893.005 
 
 Krir . 
 
 
 70,861 
 230,000 
 
 
 
 
 i)etrt)it -.- 
 
 
 
 
 
 ( 'level and 
 
 
 
 
 062 280 
 
 Toledo 
 
 
 
 
 
 606,428 
 
 I'oi't Huron . . 
 
 
 2(il.504 
 
 2:*. 1,000 
 
 202,000 
 
 1 
 
 
 
 281,711 
 231.000 
 
 ( )i'(lensbur«i' 
 
 
 
 
 
 M il wuiikf**' 
 
 
 
 
 
 
 2(12 000 
 
 Kiiirixn't 
 
 
 01.740 
 12.9()0.207 
 
 5.014.000 
 
 
 
 
 61,740 
 
 
 
 34,736,9.82 
 
 
 44,860 
 
 Total American Ports. 
 
 . 
 
 :ii;,4ii 
 
 l,O80,.343 
 
 54,559,029 
 
 Cfmailiau Ports 
 Depot Hartior 
 
 
 3.591,431 
 1.0.32 .")31 
 1.005.095 
 
 581,330 
 
 
 
 
 4,172,767 
 2.(H)6,896 
 1.0(>5.(l97 
 
 Midland 
 
 
 
 
 2.i2,45.5 
 
 95,.500 
 
 26,412 
 
 Mpnfoi'fl 
 
 
 
 <xHl6l)PC .--,-... 
 
 
 574 975 
 lOl 500 
 100.000 
 
 5S..34H 
 
 l9.o:!(i 
 
 7 143.518 
 
 41,8S0,.")0(I 
 
 78.400' 
 
 1.54.145 
 
 813,881 
 
 
 
 
 
 .574,975 
 
 < ) vvpTi Sound 
 
 
 I-. 
 
 179,!KX) 
 
 
 
 
 
 
 
 100,000 
 
 58, .348 
 
 
 
 
 
 
 
 Sarnia .- 
 
 
 
 
 
 
 
 173 781 
 
 
 'a)2,4,->3 
 
 
 
 
 
 
 
 95,500 
 
 1,17.5.843 
 
 26,412 
 
 70,772 
 
 8.. 33 1.764 
 
 
 S. 70.3, 330 
 
 
 
 Grand Total V)y Lake 
 
 13.7.S().148 
 
 5.0l4.0(iti 
 
 '.His, SI 14 
 
 (i2,8}K),793 
 
 Consumption Local .Mills From Elev. 
 
 •' Otr Track 
 
 Rail - 
 
 Total Shipments. 
 In Store Dee. 31st, 1JK)2 
 
 Grand Total 
 
 8,703,330 
 32,47-5 
 
 8,7.35,805 
 
 49 
 3, 
 
 ,302,7.52 
 377,930 
 2.35.280 
 79().408 
 
 850.8,80 
 
 1,0(U,.328 
 
 14.7S1,476 
 
 2, 895,. 545 
 
 450,029 
 
 1.470,695 
 
 3.34. ()fi5 
 
 53.053..3.54 i 17.007.021 
 
 5.S05,3OO 
 
 :>;il,543 
 
 l:!iht.-107 
 
 218 ItiO 
 
 4is,."".07 
 
 3,557 
 
 1,179 400 
 
 31,. 343 
 
 1.210,743 
 
 353,174 
 
 423,946 
 
 1,245 
 
 425,191 
 
 2 302 7.52 
 5,377,9.30 
 2,280 9 .7 
 72,852,392 
 7 337,844 
 
 80,190 236 
 
 Arrival and Departure Record: 
 
 First arrival Steamer F. H. Huell, Sunday, April Olh, 3:00 .\. M.. 1902. 
 
 First dei)arture Steamer Fred H. Wells, Monday, Ma.'cjh 31st,T:40 A. M., 1902. 
 
 Last arrival Steamer .Ino. W. Gates, Thursday, Dec. 18th, lliij; 
 
 Last departure Steamer New York, Monday, Dec. 8th, 190J, 
 
 Number of vessels entering at Duluth-Superior, 7,944, toniuiu > 1 1,861,080, 
 
 Number of vessels departing at Duluth-Superior, 7,922, tonraje 11,9.50,19,5. 
 
 Total arrivals and departures at Duluth-Superior, 15,860, inia tonnage 23,811,275.