REPORT
OF THE
TRANSPORTATION BUREAU
OF THE
MERCHANTS' EXCHANGE OF ST. LOUIS.
SUBMITTED TO THE
EXECUTIVE COMMITTEE,
APRIL 12, 1876,
AND ORDERED TO BE PRINTED.
ST. LOUIS:
HUGH R. IIILDRETH PRINTING COMPANY.
"A:RI M, 1 876.








ST. Louis, April 12th, 1876.
MICHAEL McENNIS, Esq.,
Chairman Eqecutive Committee,
DEAR SIR:-While it is believed that St. Louis may
claim credit for being the first city on this continent to establish a "Transportation Bureau," for the purpose of
maintaining a constant supervision of rates to various
sections of the country, and otherwise protect the interests
of your growing city; still but few understood, and many
do not understand clearly now, the objects which you, conjointly with other members of the Merchants' Exchange,
had in view, when you determined in January of this year,
that the establishment of such an office was an actual
necessity for St. Louis and its commerce, and that it was
only through such an agency you could ever anticipate to
produce and foster that harmony of feeling and action which
should characterize all relations between the transportation
lines and the shipping community. The views entertained
by yourself and your associate members of the executive
committee, were so clearly and accurately defined at a meeting held in the reading-room of the Merchants' Exchange,
February 22, that it would appear almost superfluous to
allude to them in this connection, were it not advisable that
in this report such views should be placed permanently on




4
record, and the position which you have assumed, clearly
and unequivocally defined. It had been, and probably
even now is, imagined by some, that in the creation of this
Bureau a spirit of antagonism was foreshadowed against
railroad companies and other transportation interests; that
the aim of the officers in charge of this Bureau was to pit
one railroad company against another with the view of
obtaining low rates of freight irrespective of the cost of the
service performed; in brief, that your ideas were to carry
out, although on a larger and more comprehensive scale,
the objects for which'certain of your merchants organized
some years ago what was termed a Protective Union, with
head-quarters in New York City, and under the supervision
of the late Mr. Bernoudy. The conservative tone of the
instructions conveyed by your committee to the officers
elected to superintend the Transportation Bureau, was decidedly at variance with any ideas of antagonism between
the transportation and shipping interests of St. Louis; and
while you were naturally anxious to obtain for the mercantile community the advantage of low rates to all points
where you have business connections and associations, the
ground was taken that such low rates must be obtained by
legitimate, not illegitimate means; and, that so long as St.
Louis could obtain the same rate per mile as other cities
competing for the vast trade of the Mississippi Valley, it was
the fault of your own merchants if they could not command
a fair share of the business, and that, too, at remunerative
prices. The officers in charge of the Transportation Bureau
were directed first to collect from various sources, and more
especially from the railroad companies converging to cities
which were your rivals for trade, their local and through
freight tariffs; with such information before them, to com



pile comparative tables of mileage rates, and see whether the
local tariffs of the roads leading from St. Louis, east, west,
north and south, were so arranged as to render the traffic
of a certain section of country directly tributary to St.
Louis; also, to see that through rates were not established
to discriminate against your merchants. These instructions
have been fully carried out, and the Bureau has now,
through the kind co-operation of railroad officials, secured
a vast amount of information pertinent to the so-called
"transportation problem," which cannot fail of being
generally and permanently useful and instructive. The
correspondence, together with other detail work incidental
to carrying out these instructions, has been large and of a
varied character, but it has elicited an expression of good
feeling to, and sympathy with, your new organization, which
is highly encouraging and satisfactory.  The officers
superintending the Bureau were also directed to investigate
closely into the lowest ACTUAL cost at which heavy freight
could be moved to the Atlantic sea-board, and other places,
with the view of ascertaining the practicability of permanent
and uniyorm rates. It was held, and justly, by your committee, that spasmodic cuttings of, and fluctuations in, rates
demoralized trade generally, and prevented your merchants entirely from the investment of capital in undertakings where profit was mainly contingent on a certain fixed
rate of freight; that you realized a well established fact,
viz., that combinations were the inevitable results of unscrupulous, and it might almost be said insane competition
for business; and that while you were anxious that the railroad companies should receive REASONABLE and remunerative rates, you were also anxious that these rates, when
once agreed to, should be uniform and constant, and that




6
the management of transportation from this city should be
in keeping with the substantial solidity on which the credit
of your mercantile community is based. Time will be required to carry out these instructions and inaugurate a new
departure from the old established and conventional system
on which the freighting business has usually been heretofore
conducted; but it is believed that the Presidents and other
executive officers of the leading trunk lines of railroad, will
cordially co-operate with you in any movement which favors
conservative principles of management, and which enables
them slowly but surely to reduce railroading to a science,
and to lop off many of those excrescences which have disfigured the railroad system of this country. In stating that
time will be required to carry out* these instructions, and
ascertain accurately on what basis uniform  rates can be
established, the officers of your Bureau would wish you to
understand that they have to deal with railroads operated
under different management, and superintended by gentlemen with different ideas, each one however straightforward and honest in his convictions as to what is requisite
to make the undertaking which he represents, a financial
success; they have to recognize the fact that each railroad,
to speak figuratively, has its own idiosyncrasies and its own
peculiar constitution, and finally they have to contend
against an insane jealousy of anything like interference or
intermeddling on the part of those who are termed "outsiders." The leverage, however, of public opinion, if legitimately exercised in a good and reasonable cause, is immense,
and the difficulties to be contended with cannot prove insuperable, when, by personal interviewing and correspondence, railroad officers throughout the country are enlightened
about the views which you entertain and the principles of the




7
machinery which your business sagacity has set in motion.
Accurate data and statistics pertinent to this subject of uniform rates, are now being carefully collected from various
sources by this Bureau, and when the proper time arrives,
action will be taken. Anything like premature and illadvised action cannot be too strongly deprecated, and the
idea has been constantly kept in view that it was not action
which your committee required, so much as INTELLIGENT
action. Instructions were also given to examine very carefully into the questions of rebates, and see whether an
abuse which had gradually assumed mammoth proportions,
could not be abated and discontinued. The Presidents of
the Eastern Trunk Lines are now attempting, and it is hoped
in good faith, to grapple with this hydra-like difficulty
which appears in one form or another in every. city where
there is any competition for business; but in carrying out
the idea of establishing uniform and permanent rates, time
will be required to abate an universally recognized evil, and
the efforts of the officers superintending your Bureau will be
primarily directed towards obtaining the co-operation in this
movement of other Boards of Trade, and of the mercantile
community generally, in such large cities as Chicago, Milwaukee, Cincinnati and Pittsburg. It is but fair, however,
to your committee to state that considerable difficulty may
be anticipated in securing that co-operation in the general
abolition of the rebate system which is so ardently desired
by the present President of your Exchange, and by others
whose ideas are eminently conservative. Each individual
merchant looks at the question, to speak figuratively,
through his own spectacles. The small shipper is vociferous about equality and the commerce of the country
being open to all at equal rates; while the large and con



8
stant shipper claims that such equality is at variance with
the first laws of nature and common sense, that there is a
marked difference between a wholesale and retail business,
and that, as railroads should be managed on ordinary business principles, the same rules which obtain in other departments of trade, should be recognized in transportation.
Some even have gone further, and have plainly intimated
in the press that it was the duty of the General Government to interpose its authority, and abate what may be
considered a nuisance, by exacting a heavy fine both from
the party who allowed, and the party who accepted, such
rebate.  Into the merits or demerits of the arguments
brought forward by the advocates of either position, it is
not the province of this Bureau to enter, suffice it to say
that a ready solution of the difficulty can be arrived at by
a modification of the existing classification on through
business. The local tariffs of almost all railroad companies
make a distinction between the rate which a man shall receive
who ships less than a car load, and the one who ships one car
load, and less than five, to the same consignee. A different
rate is also established for the person who ships more than
five car loads at one time e; but in the classification of
through rates no distinction is made at present between the
person who ships more than a car load, and his neighbor
who can send forward ten or twenty cars daily for a month
or longer:-hence, to counteract this apparent oversight in
adapting the classification of through rates to meet the
requirements of such a contingency as an unusually large
shipment, the authority to grant rebates is delegated to
some contracting agent, and is exercised sometimes in a
manner entirely prejudicial to the true interests of railroad
property. The other instructions given by your committee,




may be concisely epitomized by saying that the Bureau was,
in all its investigations to regard St. Louis as the centre to
which the commerce of a rich mineral and agricultural section of country should converge, and that efforts were to be
made towards securing such modifications, if necessary, of
existing local tariffs, as would guarantee the commerce of
all the country within a certain radius of St. Louis paying
a tribute to the business enterprise of your merchants.
The field of operations thus indicated by your committee, is
a large one, and demands on the part of the officers superintending the Bureau much patient observation and study,
while at the same time it calls for an accurate knowledge of,
and familiarity with, the great interests of your city in
their intimate connection with an extended and complicated
transportation system. It will readily be understood, however, that no time is wasted in mastering conditions and
elementary principles, because therein are the germs of
future usefulness.
The attention of your committee will be directed, in
the following remarks, to
1. THE GEOGRAPHICAL LOCATION OF ST. Louis.
2. THE TRANSPORTATION SYSTEM ON WI1ICH THIE COMMERCE OF ST. LOUIS IS DEPENDENT.
3. TERMINAL AND TRANSFER CHARGES.
4. THE  QUESTION  OF  DISCRIMINATION  IN  RATES
AFFECTING ST. LOUIS.
5. TIE NECESSITY FOR PROCURING ACCURATE STATISTICS ABOUT THE TRAFFIC AND COMMERCE OF ST. LOUIS.
6. THE MODIFICATION OF EXISTING LOCAL TARIFFS.




10
7. GENERAL SUGGESTIONS AS TO THE STEPS NECESSARY
TO BE TAKEN BY YOUR COMMITTEE TO INSURE A FULL
REALIZATION OF THE OBJECTS CONTEMPLATED IN THE CREATION OF A TRANSPORTATION BUREAU.
Some of the facts hereinafter stated mnsay be well known,
and may have been carefully studied by your committee,
but still, allusion to them in this report will not be deemed
superfluous, as being intrinsically cognate to the investigations which the Transportation Bureau is compelled to make
in carrying out the letter and spirit of your instructions.
1. THE GEOGRAPHICAL LOCATION OF ST. LOUIS.
Nature seems to have favored in a remarkable manner
the location of your city; and its geographical position, as
well as the character of the country tributary to it, must,
eventually, render it not merely the recognized commercial
centre of the Mississippi Valley, but the largest and most in-.f/uential manufacturing city of this continent. There may
be certain disadvantages of a minor character connected
with its location on the west side of the Mississippi River,
but such disadvantages are more than compensated for by
the capacity which St. Louis possesses for almost unlimited
extension and development, by its ample water supply,
natural drainage, and the recognized salubrity of its climate.
Situated in what may be appropriately termed the temperate
zone, with a climate equally removed from the extreme cold
of the Northern and New England States, and from the
enervating influences of the more southern section of this
country; with a hardy and industrious population growing
up in close proximity to the coal fields of southern and
western Illinois; to the iron and other mineral deposits of




11
southern and southwestern Missouri; to the unsurpassed
agricultural region. of western and central Illinois, Missouri,
Kansas and. Iowa; to the almost inexhaustible cattle market
of Texas; to the richest cotton producing States, and to the
sheep farms of Kansas, Nebraska, Colorado and New
Mexico, St. Louis should become, as there is no doubt she
will become, the city in which all the productions of agriculture will find a ready and remunerative market, as well
as the home of industry in which the raw material will be
manufactured into articles of general use, which will be distributed from its foundries, its machine shops, its mills and
its factories throughout the South and West. The growth
of your city may have been, and probably was, somewhat
retarded during the earlier days of its existence by certain
political considerations which prevented that wholesale introduction of Eastern capital, which has been instrumental
in building up the neighboring city of Chicago; but that
very fact has tended to develop energies which under other
circumstances might have been dormant; it has given your
merchants the habit of honest and independent self-reliance,
which causes them to be deservedly respected in all the
business and trade centres of this continent; it has tended
to the erection of those substantial structures which grace
your city, and are in accurate keeping with the character
of your citizens; and it will be strange if the natural advantages which St. Louis possesses, supplemented as they are
by such traits of character and temperament as have been
above alluded to, will not enable its citizens to realize within
a few years their most sanguine, and to some minds
exaggerated, ideas of its future greatness and prosperity.
The fact of Eastern capital being largely invested in the
railroad system directly tributary to Chicago, undoubtedly




12
has a tendency to influence a certain amount of traffic, especially that destined for competitive points in the West and
Southwest via Chicago; but in'the present day of enlightenment on the so-called transportation problem, short line
advantages, such as St. Louis possesses, as against the more
northern routes, cannot be consistently ignored, and there
are abundant and satisfactory indications that the powerful
corporations controlling the railroad interests at Philadelphia and Baltimore are recognizing more clearly than ever
heretofore the superiority of the route via St. Louis for the
traffic to the West and Southwest, for which it is the geographical avenue. This action of the Pennsylvania and
Baltimore and Ohio Railroad Companies is appreciated and
understood by a committee appointed by the Chicago Board
of Trade on railroad discriminations.  Their report states
"that the Baltimore and Ohio and Pennsylvania Railroad
"Companies conceive it to be in their interest to divert the
"carrying trade to the south of Chicago, and hope and
"believe, that once directed in that channel, they will
"secure a larger proportion of that business than hereto"fore. A careful survey of the map, with their various
"railroad connections, will reveal this project."  The attention of your committee is specially drawn to this growing
tendency towards making St. Louis the highway through
which the commerce of a large section of country must pass,
for the reason that the direct and indirect benefits resulting
from a heavy volume of through traffic are not universally
understood. Let it be presumed that the total freight earnings of your Missouri Pacific road amounted to $4, 000, 000 per
annum, of which $3, 000, 000 was derived from freight originating at, or destined to St. Louis, and $1,000,000 from freight
passing through St. Louis to an eastern or western market.




13
It is true that the through freight pays no direct tribute to
your merchants, but benefits accrue indirectly therefrom in
this manner:-the operating or working expenses of the traffic
from which this $1,000,000 revenue was derived, would, at a
very low computation, amount to $600, 000, and of this sum a
considerable portion would be spent by the employes along
the line of road, the trade of which would be directly tributary to the merchants of St. Louis; but in this estimate no
account is taken of the increased ability which the managers
of the railroad company derive from controlling this through
traffic to make certain salutary reductions in certain items
of local traffic, and thereby build up industries from which
your city must derive substantial and permanent benefit.
Every effort should be made by your committee and by the
Exchange which you represent to popularize the route via
St. Louis as a through line, and to induce the railroad companies leading west from this city, and in which many of
your influential citizens have a direct personal interest, to
abandon in all branches of their business those arbitrary
rates which must inevitably have a tendency to divert traffic
to a route which recognizes the principle of pro-rating on
all competitive business. No person passing through St.
Louis can fail of being attracted to, and convinced by, its
superior natural advantages-favorable impressions once
created, are seldom, if ever, effaced; and, as a natural
sequence of such favorable impressions, an interest is excited
from which incalculable advantages may ultimately accrue
to your city. Taking Kansas City as an initial point for the
trade of Kansas, Colorado and New Mexico, or, in other
words, taking Kansas City, where the southern and northern
routes converge, as the point to which distances from the
Atlantic sea-board should be calculated, the following




14
comparative  mileage  statistics  indicate  very  clearly  the
short line advantages possessed by St. Louis:
BOSTON TO KANSAS CITY,
MILES.
Via New York, Philadelphia, Pittsburg, Indianapolis and St.
Louis......................................................................................  1553
Via Albany, Buffalo, Chicago and Quincy................................... 1527
Via Albany, Buffalo, Cleveland, Indianapolis and St. Louis........ 1478
Via Albany, Toledo and Quincy................................................ 1494
Difference in favor of the St. Louis route via Cleveland,
as against that via'Chicago, 49 miles; as against that via
Toledo and Quincy, 16 miles. The same difference in distance  naturally  applies  to  all places directly  west and
southwest reached by the lines of the Kansas Pacific and
Atchison, Topeka and Santa Fe railroads.
NEW YORK TO KANSAS CITY,
MILES.
Via Philadelphia, Pittsburg, Columbus, Indianapolis and St.
Louis......................................................................................  1339
Via Philadelphia, Pittsburg, Fort Wayne and Quincy................ 1370
Via Philadelphia, Pittsburg, Chicago and Quincy....................... 1402
Via Albany, Buffalo, Toledo and Quincy......................................  1436
Via Albany, Buffalo, Chicago and Quincy.................................. 1469
Via Dunkirk, Toledo and Quincy.............................................. 1415
It will be seen from this statement that the St. Louis
route is 31 miles shorter than the shortest other available
route via Fort Wayne and Quincy, and that it is 129 miles
shorter than a recognized popular route in connection with
the New York Central and Hudson River, Lake Shore and
Michigan Southern, and Chicago, Burlington and Quincy
railroads.
PHILADELPHIA TO KANSAS CITY,
MILES.
Via Pittsburg, Indianapolis and St. Louis................................... 1249
Via Pittsburg, Fort Wayne and Quincy...................................... 1280
Via Pittsburg, Chicago and Quincy............................................   1312
The difference in favor of the St. Louis route applies




both in the cases of New York and Philadelphia to all
points west of Kansas City reached by the lines of the
Kansas Pacific and Atchison, Topeka and Santa Fe railroads.
From Baltimore to Kansas City, via St. Louis, in connection with the Baltimore and Ohio, Marietta and Cincinnati, and Ohio and Mississippi railroads, the distance is
only 1194 miles.
Again, taking Sedalia 189 miles distant from St. Louis,
as the point where the St. Louis route comes into competition
with the more northern routes, you will arrive at the following mileage statistics:
BOSTON TO SEDALIA,
MILES.
Via Albany, Cleveland, Indianapolis and St. Louis.................. 1392
Via Albany, Toledo and Hahnibal......................................... 1400
The St. Louis route is thus able to compete on equal
terms, as far as mileage is concerned, for all the traffic
originating in Boston and destined to places reached by the
Missouri, Kansas and Texas railway.
NEW YORK TO SEDALIA,
MILES.
Via Philadelphia, Pittsburg, Indianapolis and St. Louis............ 1253
Via Philadelphia, Fort Wayne and Hannibal.............................. 1276
Via Albany, Buffalo, Toledo and Hannibal................................ 1342
Via Albany, Buffalo, Chicago and Hannibal................................ 1404
From this it would appear that the St. Louis route, to
connect from New York with the Missouri, Kansas and
Texas railway, is 23 miles shorter than any other existing,
available route, viz., that by Pittsburg, Fort Wayne and
Hannibal (which is seldom used for through traffic), and
that it is 151 miles shorter than the popular route via Albany,
Buffalo, Chicago and Hannibal, with which the Missouri,




16
Kansas and Texas Railway interchanges a large and remunerative business.
PHILADELPHIA TO SEDALIA,
MILES.
Via Pittsburg, Indianapolis and  St. Louis................................... 1163
Via Pittsburg, Fort Wayne and Hannibal................................... 1186
Via Pittsburg, Chicago and Hannibal.........................................  1337
BALTIMORE TO SEDALIA,
MILES.
Via Baltimore and Ohio, Marietta and Cincinnati, Ohio and
Mississippi, and St. Louis..................................................... 1108
The St. Louis route has similar short line advantages to
and from Sedalia, to Cleveland, Buffalo, Dunkirk, Pittsburg,
and all commercial points on the southern line, reached by
Indianapolis or Cincinnati.
The special attention of your committee is drawn to tile
figures above given in relation to the comparative mileage
via Sedalia and Hannibal, because the officers of this
Bureau entertain very decided opinions about cultivating,
in the interest of St. Louis, the most friendly relations with
the Missouri, Kansas and Texas Railway Company, and,
although it has been impossible to ascertain accurately on
what basis the division of rates between Pittsburg and
Sedalia are- now made, still it is believed that a wise and
liberal policy would dictate to the managers of roads between Pittsburg and Sedalia the advisability and propriety
of accepting less than their actual pro-rate per mile between
the points named, and of giving the Missouri, Kansas and
Texas Railway Company more than its actual pro-rate per
mile so as to compensate it for losing the haul of 143 miles
between Hannibal and Sedalia, which loss naturally results
from the adoption of the Sedalia and St. Louis route in preference to that via Hannibal and Moberly.
St. Louis is fortunate, however, in controlling, through




17
the St. Louis, Iron Mountain and Southern Railway, an
alternate route to places in Texas, reached by the Missouri,
Kansas and Texas Railway, while your merchants can now
compete on equal terms with Louisville for a large proportion of the trade of Arkansas, which, prior to the completion
of the Cairo and Fulton Railroad, was to a great extent
monopolized by Memphis and Louisville.
It is almost superfluous to allude at any length to the
advantages which St. Louis possesses from its location on
the Mississippi River, which enables its merchants to avail
themselves of cheap and economical water transportation,
and to tap, at any rate during a greater portion of the
year, the commerce of a section of country north and
south, with which at present they have no regular railroad
connections, and which, were it not for the river facilities,
would be diverted to other cities.
Allusion has been previously made to the fact that St.
Louis, from its geographical position, must eventually
become the manufacturing emporium for a large section of
country from which its merchants at present draw the
raw material for shipment east; but it is the opinion of
the officers superintending this Bureau, that a great stimulus will be given alike to the merchants and manufacturers of your city by the completion of the improvements
at the mouth of the Mississippi River, now being carried
on successfully by your accomplished townsman, Captain
Eads. There is no doubt that when these improvements
are completed, a large direct trade will be opened between
New Orleans and Havana, the West India Islands, Central
and South America, and your city should participate
largely in the commercial benefits resulting from this
increased trade. The imports from the countries into the
2




18
United States, alluded to, amounted in 1872 to $199,800,075,
while the exports from the United States to the same
countries in the same year did not exceed $72,479,041, or
about 36 3-10 per cent. of the imports. Statistics of trade
with England for the same year show that the imports
amounted to $189,612,344, and that the exports to South
America, Central America and the West India Islands
aggregated $163,774,597, or about 86] per cent.  There is
no apparent reason why, with the enterprise of your merchants and manufacturers, a large amount of the existing
export trade from England should not be diverted to the
United States and prominently to St Louis; and why the
relation between imports to, and exports from the United
States should not be substantially equalized.
NOTE.-Some idea of the possible development of trade with South America,
Central America, Mexico, and the West India Islands may be inferred from the
following statistics.
POPULATION.
Mexico...................                                                 9,175,000
Central America............................   2,665,000
South America........................................................................   26,259,000
W est Indies...........................................................................................................   4,000,000
Total........................................................................................................... 42,099,000
VALUE OF IMPORTS INTO THE UNITED STATES FROM, AND EXPORTS FROM THE
UNITED STATES TO, COUNTRIES MENTIONED BELOW.
COUNTRIES.                         IMPORTS. EXPORTS.   TOTAL
COMMERCE
Mexico...................................................................... $ 18,566,154 $  6,430,163 $ 21,996,317
Centraf America.:.....................................................   2,238,896    1,347,549    3,586,445
West Indies...................................................  103,006,026   35,059,372  138,065,398
South America..................................................  75,988.,999   29,641,97   10.5,630,956
South America..75,988,999 29,611,957 105,630,956
$ 199,800,075 $ 72,479,0411$ 272,279,116
Balance of trade against the U. S. $127,321,034; value of exports only 36 3-10. per cent.
TOTAL COMMERCE OF ABOVE COUNTRIES.
Mexico........................................... $ 25,00,000
Central America..................................................................................... 11,500,000
W est Indies......................................................................................................... 250,000,000
South America...................................................................................... 450,000,000
Total.........................................................................................................$736,500,000




19
IMPORTS AND EXPORTS TO GREAT BRITAIN, 1872.
COUNTRIES.                  IMPORTS. EXPORTS. i TOTAL.
Mexico............................................ $ 2,158,409 $ 4,377,601 $ 6,536,010
Central America........................................................6,335,866   2,436,067   8,771,933
West Indies.................................................................52,239,930  33,250,137  85,490,067
South America..............  128,878,139 123,710,792 252,588,931
$ 189,612,344 $ 163,774,597 $ 353,386,941
Value of imports to exports, 86Y per cent.
Total Commerce.............(54 per cent., Great Britain.
$736,500,00037 per cent., United States.
Total Commerce...................................... $736,500,000    37 Per Cent., United States.
9 per cent., other countries,
The problem   of "cheap  transportation"  is one which
has exercised the minds of some of the most learned and
astute statesmen in the United States during the past few
years, and its successful solution is one which must have an
important bearing on the country lying west and northwest
of St. Louis; but if the attention of Congress is directed to
improving the channel of the Mississippi River, and to securing an uniform  draught of water from  New  Orleans to St.
Louis during all seasons of the year, there is no reason
why St. Louis should not become the granary of all the
States adjacent to the Mississippi River, and why a regular
trade in cereals between this city and Europe, via' New
Orleans,  should  not be  permanently   established.   The
same suggestion holds good with reference to beef, pork,
bacon, lard, hides and other heavy fourth class or special
freight, in which, between this city and the transatlantic
cities, a large and rapidly increasing trade has already
sprung up.
It may be noted in this connection, before concluding
these remarks on the geographical location of St. Louis,
that in framing an estimate of the purely local business
which should be directly tributary to the commercial
enterprise of your city, the officers of the Transportation
Bureau have held that the trade of a section of country




20
lying within a radius of 150 miles from this city as a centre,
should be transacted here; and the opinion is hazarded
that with a suitable adjustment of local tariffs, both for
freight and passengers, and with ordinary business prudence on the part of your merchants, such results are
easily attainable. Whether the wholesale merchants and
jobbers of St. Louis are behind their competitors at Cincinnati, Louisville and Chicago in adopting the same plans
for soliciting trade, which are now customary, or whether
the wheels of improvement here are clogged by an unwillingness on the part of the transportation companies to
recognize the well established principle that;'traffic responds
to the facilities furnished it," is a question which' is best
known to your committee as practical business men
thoroughly conversant with the methods of doing business
which obtain here; but the following facts are submitted
for the information of your committee, that St. Louis is the
centre, so to write, of a territory in the States of Missouri
and Illinois, comprising 35 counties in the former, and
nearly 50 counties in the latter State; that the counties
alluded to in the State of Missouri, exclusive of St. Louis
county, contain a population of 406,648, with an aggregate
wealth of $258,139,797, and the value of whose farm products, including live stock, was, according to the last
United States census, $53,280,398; also, that the counties
in the State of Illinois have a population of 905,920, with'
an aggregate wealth of $626,917,900, and the value of whose
farm products, including live stock, was $135,365,246. It
is impossible for the officers of this Bureau, with the information at their disposal, to ascertain what would, under
ordinary circumstances, be the average annual expenditures of the 1,312,568 inhabitants embraced in the section




21
of country lying within the 150 miles radius of St. Louis;
but they should be on such a scale, notwithstanding the
general depression of business, as to leave a considerable
margin of profit on legitimate trade. A suggestion might
pertinently be made in this connection, viz., that the question
must arise, sooner or later, with the merchants of St. Louis
in regard to competition with points directly east of this
city, whether they must not prepare themselves to sell
those things which are produced north and west at rates
lower than their competitors; in other words, since St.
Louis is geographically nearer the producing region, and
pays a lower rate of freight, should not its merchants be
able to sell cheaper than the merchants at competing points
east and north, who draw their supplies from the same
section, but who are geographically further from the region
of production than St. Louis?
2. THE TRANSPORTATION SYSTEM ON WHICH THE
COMMERCE OF ST. LOUIS IS DEPENDENT.
While the construction of railroads within the State of
Missouri proper has not been on a par with that of other
adjacent States, such as Illinois, Kansas and Iowa, and
while some of the richest counties lying within the State
are almost deprived of such railroad facilities as would
tend to develop, in a marked manner, the natural resources
of said counties, and increase the commerce of St. Louis,
your merchants cannot complain of having been neglected
in so far as numerous competing avenues for traffic to and
from the principal cities of the Atlantic sea-board, and the




22
Eastern and Central States are concerned. The existence of
these numerous lines has been beneficial to the commercial
and manufacturing interests of your city, by producing a
competition and a reduction of rates much below what
they were in a previous decade, when the Chicago, Alton
and St. Louis, St. Louis, Alton and Terre Haute, and the
Ohio and Mississippi Railroads were, to all intents and
purposes, the only trans-Mississippi lines connecting your
city with the East. Under present arrangements, uniform
rates and a uniform classification of freight are avowedly
maintained by the various railroad companies engaged in
transportation to the Atlantic sea-board; and if these conservative principles of action are rigidly adhered to it would
follow that on prompt delivery and expeditious handling of
traffic, together with ready settlement of claims for loss and
damages, the various companies must be dependent for
their support and patronage.  A natural tendency of
legitimate and healthy competition in all departments of
business is to produce reforms, and gradually abate the
existence of abuses which are engendered by a monopoly,
and in this respect the commerce of St. Louis has been
unquestionably benefited during the past five years. The
reduction of railroad transportation to a science, and the
employment in the various branches of railroad service of
persons of education, ability and undoubted integrity of
character cannot fail of being beneficial to the mercantile
community of St. Liouis equally with that of other large
cities; and in proportion as railroad companies recognize
the fact, that as having received eminent rights from the
public, they are, to a certain extent, amenable to the public for the proper exercise of the privileges conferred upon
them, so will your merchants be enabled to approximate




23
the management of their business to a standard prevalent
in other countries, which have the benefit of age and
superior experience. Each transportation line connecting
St. Louis with the eastern States has its votaries and friends,
and comparison of the merits or demerits of competing lines
would naturally be invidious where all are so well managed and profess to consult alike the interests of their constituents; but a brief enumeration of the different routes,
and the fast freight or dispatch lines working over them
will not be inappropriate.
I. C:HICAGO AND ALTON RAILROAD.
(a). Direct Freight Line between St. Louis and Chicago.
(b.) Freight Line via Alton, Roodhouse and Quincy Junction,
to Hannibal, Quincy, Keokuk, Burlington, St. Paul and
Minneapolis.
(c). Freight Line via Alton and Jacksonville, to Pekin, Peoria,
Rock Island, Davenport, Muscatine, Des Moines, Iowa
City, Clinton, Dubuque, Milwaukee, St. Paul and all
points north, northwest and northeast.
(d). National Dispatch-fast freight line-working over Chicago
and Alton, Michigan Central, Grand Trunk and Central
Vermont Railroads, to Boston and all principal places
in the New England States.
(e). Blue Line, working over the Chicago and Alton, Michigan
Central, Great Western, New York Central and Hudson
River, and Boston and Albany Railroads, to New York,
Boston, all New England points, as well as to intermediate
places reached by the Michigan Central and Great Western Railroads and their immediate connections.
N. B.-The express and small package business on this
line is managed by the United States Express Company.




24
II. INDIANAPOLIS AND ST. LouIS RAILROAD.
(a). Direct freight line between St. Louis and Indianapolis.
(b). White Line-fast freight line-via Indianapolis, Cleveland,
Buffalo and Albany to Boston, New York, New England
places and points respectively on the lines of the Lake
Shore and Michigan Southern, New York Central and
Hudson River, and Boston andSAlbany Railroads.
(c). Hoosac Tunnel Line —fast freight line-same route as the
White Line, to Schenectady and Troy, thence by the
Hoosac Tunnel, Troy and Greenfield, Vermont and Massachusetts, and Fitchburg Railroads to Boston and New
England points.
(d). South Shore Line, same route as the White Line, to Buffalo
or Dunkirk, thence over Erie Railway and connections to
New York and other Eastern cities; also to Philadelphia
via Erie, Lehigh Valley, and North Pennsylvania Railroads.
(e). Empire Line —fast freight line-via Cleveland to Erie, thence
via Philadelphia and Erie Railway and connections to
Williamsport, Harrisburg, Baltimore, Washington, Philadelphia and New York.
(f). Union Line-fast freight line-via Indianapolis, Crestline
Pittsburg and Harrisburg to Baltimore, Washington,
Philadelphia, New York and Boston, in connection with
lines from New York to Boston and other New England
cities.
N. B. —The express and small package business between
St. Louis and Indianapolis by this road is managed by the
American Express Company.
III. TERRE HAUTE AND INDIANAPOLIS (VANDALIA)
RAILROAD.
(a). Direct freight line between St. Louis and Indianapolis via
Vandalia and Effingham, with connections at Indianapolis
for Cincinnati and Louisville.




25
(b). Direct freight line from St. Louis to Chicago and points in
the North and Northwest via Effingham and the Illinois
Central Railroad.
(c). Union and National Lines-fast freight lines-via Indianapolis, Columbus, Pittsburg and Harrisburg to Baltimore,
Washington, Philadelphia and New York; also to Boston
and other New England cities by the connections of the
Pennsylvania Railroad from New York.
(d). Erie and North Shore Line-fast freight line-via Effingham, Chicago, Detroit, Suspension Bridge and Erie Railto New York and intermediate points; also, to Philadelphia, via Waverly Junction, Easton and North Pennsylvania Railroad.
N. B.-The express and small package business over
the line of the Vandalia road is managed by the Adams
Express Company.
IV.  TOLEDO, WABASH AND WESTERN RAILWAY.
(a). Direct freight line between St. Louis and Toledo; also,
via Decatur to Pekin, Peoria, and points in the Northwest
reached by Railroads diverging from Peoria.
(b). Red Line —fast freight line-via Toledo, Cleveland, Buffalo
and Albany to New York, Boston and other New England
cities.
(c). South Shore Line and Great Western Dispatch-fast freight
lines-via Toledo, Cleveland, Buffalo or Dunkirk and
the Erie Railway to New York and Philadelphia; also,
to Boston and other New England cities by the connections of the Erie Railway from New York.
(d). Merchants' Dispatch —fast freight line-via Toledo, Cleveland, Buffalo and Albany to New York and intermediate
places.
(e). Diamond Line — fast freight line —via Toledo, Canada
Southern and Erie Railroads for New York and New
England cities.
(f). Canada Southern fast freight line via Tbledo, Canada
Southern and New York Central. and Hudson River Railroads to New York, Boston and intermediate places.




26
N. B.-The express and small package business on
this line between St. Louis and Toledo is managed by the
United States Express Company.
V. OHIO AND MISSISSIPPI RAILWAY.
(a). Direct Freight Line to Cincinnati, Louisville, Springfield,
Beardstown and all places on the main line and various
divisions.
(b). Continental Line-fast freight line-via Cincinnati and
Parkersburg to Baltimore, Washington, Philadelphia,
New York, etc., in connection with the through eastern
business of the Baltimore and Ohio Railroad.
(c). Great Western Dispatch-fast freight line-via Cincinnati,
Salamanca and the line of the Erie Railway to New York,
Phiadelphia, Boston and New England points reached
by the connections of the Erie Railway from New York.
N. B.'-The express and small package business on the
line of the Ohio and Mississippi Railway and its various
branches is managed by the Adams Express Company.
VI.  ST. LOUIS AND CAIRO SHORT LINE, composed of
the Belleville and Southern Illinois and Illinois Central
Railroads.
(a). Direct line from St. Louis to Belleville, Du Quoin, Cairo and
intermediate points.
(b). Freight line in connection with the New Orleans, St. Louis
and Chicago Railroad via Fillmore for Grenada, Jackson,
Vicksburg, New Orleans and all intermediate points;
also, for Memphis via Milan.
(c). Freight line in connection with the Mobile and Ohio Railroad via Caird, and Mobile and Ohio Junction for Aberdeen, Columbus, Gainesville, Meridian, Mobile and all
intermediate points on the line of the Mobile and Ohio
Railroad.




27
(d). Freight line via Cairo, Frost's and the Nashville Chattanooga
and St. Louis Railroad to Nashville and all points in the
South and Southeast, reached by what is known as the
"Green Line."
N. B.-The express and small package business on the
line of the St. Louis and Cairo Short Line is managed by
the Adams Express Company.
VII. ST. LOUIS AND SOUTHEASTERN RAILWAY.
Direct freight line to Belleville, Ashley, Shawneetown,
Evansville, Nortonville and Nashville.
It may be noted here that although the St. Louis and
Southeastern Railway furnishes for the trade of St. Louis
to points south and southeast of Nashville, the shortest
available through route, the Company, by action of tlie
" Green Line" combination, is excluded from participating in
business south of Nashville, or from soliciting freight for
that section of country from merchants in St. Louis.
N. B.-The Adams Express Company controls the
express and small package business of this Railway.
VIII. CAIRO AND ST. Louis RAILROAD (narrow guage).
Direct freight line to all intermediate points between St.
Louis and Cairo via Murphysboro.
Freight is also billed through by this line to all stations
on the Cairo and Vincennes Railroad.
N. B.-The Adams Express Company controls the
express and small package business on this road.
IX. ILLINOIS AND ST. LOUIS RAILROAD.
This is a short local line of road running from East St.




28
Louis to Belleville, a distance of 15 miles, and its main
traffic is in coal and passengers. The magnitude of the
first named item may be inferred from the fact that it
brought to St. Louis, in 1875, 204,867 tons.
X. ROCKFORD, ROCK ISLAND AND ST. LOUIS RAILROAD.
The statistics published in the last annual report of the
Merchants' Exchange of St. Louis would indicate that the
traffic controlled by this railroad in the interests of your
merchants was not large-the total export and import
tonnage for the year ending December 31, 1875, not having exceeded 74,000 tons. This road uses the line of the
Indianapolis and St. Louis road from Alton Junction to
East St. Louis, and, being intersected at many points in its
north and south course by railroads running east and
west, is perhaps prevented from controlling for St. Louis, its
southern terminus, as much freight as might naturally be
expected to originate in that section of country; but
arrangements have been made for extending this road
about 30 miles further north to Rockford, and in that event
it may become a more valuable tributary than heretofore
to the commerce of St. Louis. The road is met at almost
every important point by competition with the Mississippi
River.
N. B.-The American Express Company controls the
express and package business on this road.
Turning your attention to the roads leading west from
St. Louis, you will find that through the lines of the Missouri
Pacific, and St. Louis, Kansas City and Northern Railways




29
with their immediate connections, you have access to the
trade of Kansas, Missouri, Iowa, Nebraska, Colorado and
New Mexico. Prominent among these places may be
mentioned in
(a). KANSAs-Atchison, Carbondale, Emporia,. Fort Scott,
Humboldt, Junction City, Lawrence, Leavenworth and
Topeka.
(b). MIssouRI-Chillicothe, Glenwood, Boonville, Kansas City,
Independence, Lexington, Macon, Moberly, St. Joseph
and Plattsburg.
(a). IowA-Council Bluffs, E. Nebraska City, Hamburg, Pacific
City, Moulton, Ottumwa and Sioux City.
(d). NEBRASKA-Lincoln, Omaha, Nebraska City and Plattsmouth.
(e). COLORADo —Colorado Spiings, Denver, Fort Lyons, Golden
City, Grenada, Las Animas and Pueblo.
Through rates are made, and bills of lading given to San
Francisco. Sacramento, Marysville and St. Jose, (Cal.), also
to all local points on the lines of the Union Pacific and
Central Pacific Railroads.
Through the MissouRI, KANSAS AND TEXAS RAILWAY
and its various divisions your merchants have access to the
trade of Southwestern Missouri, Southern and Western
Kansas, and the Indian Territory, also to that of all points
in Texas situated on the lines of the Houston and Texas
Central, Galveston, Houston and Henderson; and Galveston,
Harrisburg and San Antonio Railroads. By the connection
of this line, also, at Emporia, with the Atchison, Topeka
and Santa Fe Railroad you have another route to Colorado.
N. B.-The express and small package business is
managed on these three railroads as follows:
(1). On the MISSOURI PAcIFIC, by the Adams Express
Company.




30
(2). On the ST. LOUIS, KANSAS CITY AND NORTHERN,
by the United States Express Company.
(3). On the MissouRI, KANSAS AND TEXAS, by the
Adams Express Company.
The ATLANTIC AND PACIFIC RAILROAD, extending from
Pacific, 37 miles distant from St. Louis, to Vinita, in the
Indian Territory, opens up to the trade of St. Louis a rich
mineral, agricultural, pastoral, and fruit producing section
of the State, and will probably be extended ultimately to a
connection with the proposed Texas and Pacific Railway.
Under specific arrangements with the Missouri, Kansas and
Texas Railway Company, the Texas business, for which the
Atlantic and Pacific Railroad would otherwise be a competitor, is pooled, and the earnings divided in a certain
fixed proportion between both companies.
N. B.-The Adams Express Company controls the
express and small package business on the Atlantic and
Pacific Railroad.
Your merchants, in possessing through the ST. LOUIS,
IRON MOUNTAIN AND SOUTHERN RAILWAY and its connnections at Texarkana, another route to Texas, are fortunately
in a position to prevent freight charges from pressing
with an undue severity on your commerce in that direction.
The trade of Little Rock, the capital of the neighboring
State of Arkansas, has also been opened up to you, and,
from information furnished to this office, there is a perceptible diversion of traffic from Memphis and Louisville to
St. Louis. Through freight is carried by the St. Louis,
Iron Mountain and Southern Railway to Marshall, Shreveport, Longview, Minneola, Dallas, and other local points
on the completed line of the Texas and Pacific Railway.
At Longview, connection is made with the International and




31
Great Northern Railroad system, and through freight is
carried for Houston, Galveston, Columbia, Phelps, Huntsville, Palestine, Hearne, Jewett, and other local stations,
while at Dallas similar arrangements are made with the
Houston and Texas Central Railway, and all the points in
the interior of Texas, including Austin, which are accessible
by the Missouri, Kansas and Texas Railway, are opened
up by another and equally available through route, to the
enterprise of your merchants.
The St. Louis, Iron Mountain and Southern Railway,
however, by its connections at Belmont and Union City,
also at the junction with the New Orleans, St. Louis and
Chicago Railroad, furnishes an outlet for your traffic to
and from Nashville, Chattanooga, Atlanta, and all points
covered by the " Green Line" combination, also to and from
Columbus, Meridian, Vicksburg and Mobile, and to and
from New Orleans, Grenada, and other local points on that
road. The importance of this all rail Southern connection
for St. Louis cannot be over estimated.
N. B.-The express and small package business of this
road is controlled by the Adams Express Company.
From the remarks thus made, your committee will see
that 15 railroads-10 on the east side and 5 on the west side
of the Mississippi River-are interested in the traffic of St.
Louis, and there is no apparent reason why, with the gradual
development of your city and the increase in wealth and
population of the country which they respectively traverse,'they should not eventually become highly valuable properties and pay a fair interest on the money actually
expended in their construction. There are many places,
however, situated on the Mississippi River and its various
tributaries to which you have no access by railroad, and it




32
is fortunate for the true interests of your commerce that
cheap water transportation can be secured at almost all
seasons of the year, and that you are thus enabled, as
before stated, to have a salutary check on rates to Southern
and other interior points where there has always been a
large'market for your productions. Among the various
steamboat lines running south from St. Louis may be
mentioned.
I. THE MEMPHIS AND ST. Louis PACKET CO., making
all way landings between this city and Memphis, and between Memphis and Vicksburg, at which place connection
is made with the Vicksburg and Meridian Railroad, and
a through freight line established to Meridian, Selma and
Montgomery, also to all points on the Alabama and Chattanooga, Alabama Central and Western Alabama Railroads.  Connection is also made with the Vicksburg,
Shreveport and Texas Railroad, for Monroe and points on
the Ouachita River. It may be noted here, that by special
arrangements with smaller stern-wheel boats, the Memphis
and St. Louis Packet Company are enabled to give through
bills of lading from St. Louis to all points on the White
and Arkansas Rivers.
II. THE KOUNTZ LINE OF PACKETS, running from St.
Louis to New Orleans, making the -usual landings, and
connecting at New Orleans with the New Orleans and
Mobile Railroad for Mobile, thence to Montgomery and
interior points, also with Morgan's Louisiana and Texas
Railroad for Brashear, and thence to Galveston, Indianola
and other points in the interior of Texas.
III and IV. THE MERCHANTS' AND THE CARROLL LINES
OF STEAMERS are employed in the same trade as the Kountz




33
line, and transact business between St. Louis and New
Orleans.
V. BY THE ILLINOIS RIVER STEAMBOATS your merchants
obtain cheap water transportation to many interior points
in the neighboring State of Illinois, and to the trade of such
rising towns as Griggsville, Beardstown, Havana, Pekin,
Peoria, Chillicothe, Lacon, Henry, Peru and La Salle.
~ VI. THE STAR LINE OF STEAMBOATS, controlled by the
Missouri River Packet Company, makes regular trips during the season as far up the river as Kansas City, a distance from St. Louis of 477 miles. These steamboats make
all the way landings, and tap in their course the valuable
traffic of such growing places as Washington, Hermann,
Jefferson City, Boonville, Glasgow, Lexington and Liberty.
The steamboat trade direct from'St. Louis to Fort Benton
and the head waters of the Missouri River has been practically abandoned in favor of Sioux City, to which place
your city has an all-rail connection, and the boats starting
from which, are run in the interest of the Northwestern
Transportation Company.
VII. THE KEOKUK NORTHERN LINE PACKET COMPANY
renders the business of the Upper Mississippi River tributary to St. Louis, and furnishes for your merchants a water
route for Hannibal, Quincy, Keokuk, Burlington, Muscatine, Davenport, Dubuque and Reed's Landing. During the summer season the steamboats of this line work in
connection with steamboats of lighter draught, running to
St. Paul and all intermediate points between Reed's Landing and St. Paul.
VIII. THE MISSISSIPPI VALLEY TRANSPORTATION COMPANY, with its flotilla of tugs and barges, transports a
3




34
large amount of freight destined to New Orleans and interior points in Alabama, Georgia and Texas.
There are other independent steamboats engaged in
trading on the various rivers and their tributaries, which
are accessible to your commerce and to the enterprise of
your merchants, but it is believed that the lines above
mentioned comprise all those which take any rank as
being permanently engaged in transportation.
In entering at this length into the consideration of the
Transportation system on which the commerce of your
city is dependent, the object of this Bureau is to draw your
attention to the vast field which is embraced in the general
supervision of the commercial interests of St. Louis-it, to all
intents and purposes, embraces the whole area of the Mississippi Valley, and a correct superintendence and discharge of the duties imposed on the officers in immediate
charge of the Bureau necessitates an intimate acquaintance with that network of railroads which have successfully
crossed the Alleghanies, penetrated the fastnesses of the
Rocky Mountains, tunnelled the ranges of the Sierra
Nevada, and, by linking with bonds of iron the Atlantic
and the Pacific Oceans, rendered the United States the
highway for the commerce of the world.




3. TERMINAL AND TRANSFER CHARGES.
Allusion has previously been made to the fact that the
location of St. Louis on the west bank of the Mississippi
River had guaranteed for its citizens advantages in regard
to natural drainage and capacity for almost indefinite
extension of, and development, in any direction, which
cannot be overestimated. These natural advantages have
been, until recently, somewhat impaired, from a transportation stand-point, in so far as the commerce of St. Louis
with the East was concerned, by the heavy charges for
transfer across the Mississippi River, which practically
prevented your merchants from utilizing the short line
advantages which your city possessed, whether as an initial
point for shipping produce to the Atlantic sea-board, or as
a stopping place on the through line from the Atlantic
sea-board to the West and Southwest  In order, however,
that your committee may fully understand this question of
terminal and transfer charges, it will be necessary to go back
in the railroad history of St. Louis, and trace accurately
the various steps by which a system entirely different from
that prevalent in Chicago, Cincinnati and Louisville, became
engrafted on the transaction of your business. It is almost
superfluous to state in this connection that all the railroad
companies interested in transporting to and from the Atlantic sea-board, have their legal termini at East St. Louis,
where all their freight depots are situated, and where, in the
handling of their traffic and providing yard-room for cars
and engines, they occupy collectively, according to the best
information accessible to the officers of this Bureau, about




36
660 acres. It is believed that most, if not all, the land thus
used for terminal purposes was acquired from the Wiggins
Ferry Company, a corporation which numbers among its
stockholders and directors some of the most influential
business men of St. Louis, and whose predecessors appreciated at an early day, and when railroads were in their
infancy, the advisability of securing an extensive river
frontage and large quantities of land, at what was then
euphoniously termed "Bloody Island." The various railroad companies terminating at East St. Louis acquired their
terminal privileges and depot grounds on easy terms, and
in some cases, as in those of the Ohio and Mississippi and
Chicago, Alton and St. Louis Railroads, perpetual contracts
were entered into, looking to the entire conveyance of
freight to and from those roads on the boats of the Wiggins
Ferry Company. Prior to 1856 the only railroad terminating at East St. Louis was the Belleville and Illinoistown
Railroad, which was subsequently consolidated with the
Terre Haute and Alton Railroad, under the title of " Terre
Haute, Alton and St. Louis Railroad." In 1857 the Ohio
and Mississippi Railroad was opened through from Cincinnati to East St. Louis, and although during the two or three
years immediately succeeding the financial panic of 1857,
the transportation of through freight destined for St. Louis
was in its comparative infancy, and although much, if not
all, of the traffic originating north came down in the Alton
packet from the then terminus of the Chicago and Alton
Railroad, it was deemed advisable in 1859 to organize a
special company for the transportation of freight and passengers between St. Louis and East St. Louis, and through
its instrumentality accommodate the business of St. Louis
as well as if the trans-Mississippi railroads had not termi



37
nated at East St. Louis. This special company was incorporated by gentlemen well known in the transportation business, under the title of the St. Louis Transfer Company,
and under the contracts made with the railroad companies
then running to East St. Louis, it was provided that the
Transfer Company should receive for all freight which it
hauled, 6 cents per 100 pounds, also 50 cents for each
passenger with ordinary baggage carried between East St.
Louis and St. Louis. The Transfer Company at that time
agreed to furnish for the railroad companies warehouses,
such as that of the Indianapolis and St. Louis Railroad, on
2d and Poplar streets, and that of the Ohio and Mississippi
Railway, on Main and Ashley streets. The St. Louis Agent
of the railroad company was presumed to have his office in
the warehouse thus furnished by the Transfer Company,
and it was supposed that such warehouses would afford
ample storage-room for the St. Louis freight. Experience,
however, soon demonstrated that these anticipations were
erroneous, and that when the Transfer Company was handling 150 or 200 cars per day, consignees and shippers could
not possibly be accommodated, unless, in many instances,
freight was delivered at, or taken from the merchant's door.
Hence, and in part for the accommodation of the St. Louis
Transfer Company itself, a system was inaugurated in connection with freight destined to or from the trans-Mississippi
roads, which, through custom and long usage, has become
an idiosyncrasy of the St. Louis transportation system, and
which is decidedly at variance with the regulations in force
about the receipt and delivery of freight at the depots of the
Missouri Pacific, St. Louis, Iron Mountain and Southern, and
St. Louis, Kansas City and Northern Railway Companies,
and with the practice of railroad lines in the rival cities of




38
Chicago, Cincinnati and Louisville. There, and in the case
of the railroads starting from the west side of the Mississippi River, rates are, in every instance, made from the
depot, and it is optional with the merchant what conveyance
he selects for hauling his freight to or from the depot.
By their contracts with the St. Louis Transfer Company the then trans-Mississippi railroad companies virtually recognized the Transfer Company as an integral portion
of their line, and the rates to or from St. Louis always
included 6 cents per 100 pounds for transfer, or 12 cents
per barrel of flour. In addition to these regularly fixed
charges per 100 pounds and per passenger, alluded to
above, the St. Louis Transfer Company collected, in many
instances, street drayage, and this, too, when the freight had
been left at or taken from the merchant's door, for its own
convenience, and to prevent the avenues to the warehouses
at Poplar and Ashley streets from being blocked. The legitimacy of these charges for street drayage never appears to
have been questioned, or at any rate not for some time,
and although from one stand-point they were not justifiable, as taxing the merchant beyond the service actually
performed, from another stand-point they were equitable,
inasmuch as if the Transfer Company, in fulfilling its
contract with the Railroad Company, had carried the
freight to the St. Louis depot or warehouse, it would have
cost the consignee fully 3 cents per 100 pounds to insure its
delivery from thence to his store. On the completion of the
independent line of the Chicago and Alton Railroad from
Alton to East St. Louis, an independent transfer company,
but at similar rates for haulage, was organized in the interests of that Railroad Company, and it was owned, it is
believed, by Mitchell, Miltenberger and Tansey, but has




39
been consolidated with or merged into the older organization, the St. Louis Transfer Company.  Meanwhile
time rolled on, the St. Louis, Vandalia, Terre Haute and
Indianapolis, Toledo, Wabash and Western, St. Louis
and Southeastern, and St. Louis and Cairo Short Line
Railroads, were all completed to East St. Louis, and
contributed their quota to swell the volume of traffic converging to this city, and from the transfer of which, in
accordance with contracts made from time to time, as each
new avenue of traffic was completed, the St. Louis Transfer
Company derived immense profits. It is currently reported,
and generally believed, that at the time alluded to, and
prior to the completion of the Bridge, the Transfer Company
was paying 1 per cent. per month, (with an occasional extra
dividend, as a bonus,) on a supposed or watered share
capital of $700,000, when the total actual investment that
had been made, and the actual value of the property was
not much in excess of $150,000 or $200,000. During all
this time the rates, both for passengers and freight, to or
from St. Louis, were different from those prevalent to or
from East St. Louis, and it was a recognized fact by all
shippers of flour that a barrel was worth 12 cents more to
them billed through to any eastern point from East St.
Louis than if it had been started from the west side of the
river. The attention of your committee is carefully drawn
to this fact, as having an important bearing on some subsequent remarks to be made on this Transfer business, also to
an additional fact that notwithstanding the contracts made
by the railroad companies with the St. Louis Transfer
Company, no hesitancy was manifested towards allowing
shippers to use their own teams in hauling freight from
East St. Louis, the legally constituted terminus of all the




40
trans-Mississippi railroads to St. Louis, and the amount
included in the through rate was always refunded to the
consignee.
More than 6 years were consumed in construction of the
Bridge which now spans the Mississippi River at this point.
The work, however, was brought to a successful termination
in the summer of 1874, and the Fourth of July in that year
witnessed the formal opening of a structure which reflects
deserved credit on the patience and perseverance, to say
nothing of the engineering ability of your townsman,
Capt. Eads, and his associates; but when it was completed
serious questions arose, not merely among the holders
of the Bridge securities, but among the railroad companies terminating at East St. Louis, as to whether, to
use a colloquial expression, they had not gotten "an
elephant on their hands." It was well known that the
trans-Mississippi railroad companies could not afford,
even if suitable depot grounds, and sufficiently commodious, could have been procured in St. Louis-to move
their yards, depots, engine houses and car sheds over
to the west side of the river; —it was equally well known
that no additional tax, to that heretofore imposed on the
commerce of St. Louis could be introduced without preventing your merchants from competing successfully with
rival cities for the trade of the West and Southwest; and
it was also recognized as a fact that the commerce of a
city, even if it could, should not be taxed to pay interest
charges, which were very largely in excess of what they
would have been had not unfortunate delays been interposed to prevent completion of the work. It is not within
the province of the officers of this Bureau to enter into
explanations of the manner in which, according to their




41
opinion, the Illinois and St. Louis Bridge might have been
made to earn sufficient money annually to pay the interest
on the actual value of the structure and its equipment;
but it is suggested that if at any time in the future such
results are to be achieved, the transportation companies,
equally with the producer and the consumer, must
contribute their proportion and pay some reasonable
equivalent for services rendered and facilities furnished,
instead of allowing the whole revenue to be derived from
tolls on the industry of the general community. Some
months elapsed after the opening of the Bridge before the
frans-Mississippi railroad companies could agree definitely
on suitable terms for crossing it, and while persons officially connected with, at any rate, two of the leading trunk
lines in the East, either through endorsement of bonds
or for some other cause, were naturally anxious to divert
as much traffic over the Bridge as practicable; still they
hesitated about committing the companies which they
represented, or in the management of whose affairs they
had a controlling interest, to the payment of exorbitant
rates, which would have had the natural tendency of
alienating traffic from, instead of attracting it to, St. Louis.
During this comparative interregnum, the Wiggins Ferry
Company, which had considerably increased, during previous years, its facilities for handling promptly, efficiently
and economically the transfer of wagons and loaded cars,
continued to transact its accustomed business with regularity and satisfaction to all, whether railroad officers or
shippers, and it was evident to all but the most prejudiced,
that its boats and barges afforded the most expeditious
means of transit from the levee and the business portion
of St. Louis to the railroad depots at East St. Louis. It




42
may be as well at this point to direct the attention of your
committee to the fact that during all the period when the
charges of the St. Louis Transfer Company were based on
the rate of 6 cents per 100 pounds, or $12 per car of 20,000
pounds, the Wiggins Ferry Company had only been
charging 35 cents per two-horse wagon, and that consequently its tariff was never in excess of 8 of a cent per 100
pounds; hence it will be evident how utterly groundless
are the charges occasionally made by those unacquainted
with the real facts of the case-that the Wiggins Ferry
Company was an exorbitant monopoly and abused the exclusive privileges which it enjoyed. If any abuse was practised,
it was by the St. Louis Transfer Company, but so long as
the community was willing, unhesitatingly, to pay its charges, and indulge it in the enjoyment of what might
be considered semi-exclusive privileges, it was only in
accordance with human nature-and that is the same all
the world over-that it-the Transfer Company-should
have had no compunctions about taking, in every instance,
as much as it could, or at any rate believed that it was
entitled to.
It is believed that in the early part of 1875 the railroad
companies contracted with the Bridge Company on the basis
of 5 cents per 100 lbs. for freight, with certain reductions
on car load lots and cars billed through, and with an understanding that passengers should in all instances be assessed
25 cents each; but such contract did not have any perceptible effect on the transactions of the Ferry Company-it
being self-evident to all disinterested parties that for the business portion of St. Louis the transfer could be more expeditiously and economically made by the old method, than by
the new, and as certain railroad companies at that time posi



43
tively declined to bias traffic in favor of the *iAdge, as against
the Ferry, the revenues of the Bridge proper, nothwithstanding the agreement about payment for services, did not show
an increase corresponding with the anticipations of its managers. This fact is not remarkable, considering that in the
transportation of freight across the Bridge to the Union
Depot there are three companies interested-the Bridge
Company, the Tunnel Company, and the Union Railway
and Transit Company. The last named company receives
a certain sum for terminal or depot charges, and for
haulage of the car, whether loaded or empty, between
East St. Louis and St. Louis; then a certain tribute has
to be paid to the Tunnel Company, and after paying the
St. Louis Transfer Company a certain amount for haulage from the Union Depot to the merchant's door, the
balance, small as it is, accrues to the Bridge Company.
In venturing to make this statement in relation to the
Bridge, the officers of the Transportation Bureau would state
to your executive committee, that all applications made to
Dr. Taussig, Manager of the Bridge, for rates, etc., have been
studiously and persistently ignored-that it has been
claimed by the St. Louis Transfer Company and by the
Union Railway and Transit Company, that they were merely
acting as agents for the Bridge Company, and hence it has
been found necessary to gather from what were considered
other perfectly reliable sources, such information as would
throw much needed light on questions vitally affecting the
present and future interests of St. Louis.
Finding that indirect efforts to control St. Louis business
entirely over the Bridge failed utterly to produce any satisfactory financial result, and that it was useless to attempt to
ignore the existence and value of the Wiggins Ferry Com



44
pany, the Bridg; Company inaugurated an aggressive policy
of soliciting consignments of freight to itself, and thus
compelled the Ferry Company, who, up to that time had
been, so to speak, a passive spectator of the fray and selfreliant in the consciousness of its own strength and the
justice of its cause, to adopt similar tactics. Discovering
that neither this method nor a reduction of rates would
effect the object aimed at, viz., a discontinuance of the
Ferry, the Bridge Company, in connection with the Union
Railway and Transit Company, brought such a pressure
to bear on the St. Louis Transfer Company, that it,
without reckoning the consequences, determined to abandon the Ferry altogether, and transact all its business
by the Bridge-an ill-advised step which resulted in its
losing during the brief period of one month, as compared
with what it would have made under the old system of
ferriage, no less a sum than $16,000. It was not natural to
expect that the Wiggins Ferry Company in this crisis would
hesitate to assume the offensive, especially when it saw its
valuable property and investments jeopardized by a daring
and apparently unscrupulous combination, and it was by
no means a surprise to those who knew the character and
determination of the directors of the Wiggins Ferry Company, to hear and be informed by public circular, that
they had established, in direct connection with the Ferry
Company a Transfer Company, and were fully prepared
to transact business for the merchants of St. Louis, and for
the railroad companies generally, at a scale of prices
which, although sufficiently remunerative, were much
below the pjrices formerly charged for similar service.
Too much praise cannot, in the opinion of the' officers of
this Bureau, be accorded to the Wiggins Ferry Company




45
for the promptitude with which it met this movement on
the part of its opponents, and for the manner in which
it has by straightforward and business-like action, protected the commercial interests of St. Louis from being
subjected to an oppressive and prejudicial taxation. It is
evident to this Bureau, and it will likewise be evident on
mature consideration to your executive committee, that the
ultimate object of those interested in the Bridge and in
the Union Railway and Transit Company was, if possible,
to crush the Wiggins Ferry Company out of existence, to
perpetuate the 5 cents per 100 pounds transfer to the depot,
regardless of the cost of the service performed, and then to
subject your merchants to a charge of 3 cents or 4 cents
per 100 pounds for delivery in the city; and yet-it is surprising how the managers and proprietors of the Union
Railway and Transit Company ever contemplated carrying
out such a scheme, when, in attempting to force the traffic
which required 660 acres or thereabouts at East St. Louis for
its accommodation, they knew, or should, at any rate,
have known that an area of 20, or at the most 25 acres,
was all that was available for freighting purposes on the
grounds of the Union Depot. After the establishment of
the Wiggins Ferry Transfer Company, and when it was
evident that all attempts to lay up the boats and other
equipment of the Ferry Company would be futile, the
managers of the various trans-Mississippi railroad companies were appealed to by the Bridge Company, and it was
determined to make a last effort to deprive the Ferry Company of revenue, if not of actual business, by making the
rates to or from East St. Louis and St. Louis identical. In
pursuance of this policy, and amid manv protestations of
acting justly towards this city and its merchants, by regula



46
ting the eastbound rates on a strict pro-rata mileage basis
with Chicago and Cincinnati, joint tariffs were issued, it is believed by the railroad companies converging to East St. Louis
in December of last year, and it is understood that they have
persistently refused to pay the Wiggins Ferry Transfer
Company for the services rendered in hauling freight from
East St. Louis to St. Louis, or in delivering freight to their
depots at East St. Louis, said freight having been, in accordance with the special orders of your merchants,
consigned to the care of the Wiggins Ferry Transfer Company, at East St. Louis. The perpetuation of this arbitrary policy, or a silent acquiescence in it on the part of your
merchants, cannot fail of being eminently prejudicial to the
best interests of your city, and prevents many of your
merchants from carrying on through East St. Louis a large
and remunerative forwarding business, which they had
heretofore transacted. To explain: a merchant orders 20
car loads of flour from Mascoutah to East St. Louis, there
to await instructions;-he comes on'Change, and sells 15
cars of that flour to go forward to Boston or New York,
and the consignor, whoever he may be, unless he has some
special arrangements about rebates, etc., is compelled to
pay freight as if that flour had started from the Union
Depot at St. Louis, and there is a clear loss, to use a mild
expression, either to the producer or to the merchant, of
$120. Your committee cannot fail to understand, on careful
consideration of the subject in all its bearings, what an
injustice is being perpetrated against your merchants by a
perpetuation of this illegitimate policy, and how, in some
respects, you are discriminated against in the most arbitrary manner.  The officers of this Bureau have been
untiring in their efforts, both by personal interviews and




47
correspondence with the general freight agents of transMississippi roads, to induce a withdrawal from their present position about uniform rates from St. Louis and East
St. Louis. That the principle was wrong, has been candidly admitted, and it has been plainly urged by this
Bureau, that the railroad companies might, in many
instances, involve themselves, by their action, in serious
legal complications, but the officers of each individual
railroad company, knowing full well that they are in the
wrong, hesitate about being the first to acknowledge such
fact, by opening the rate at East St. Louis, the only legal
terminus of their roads; they are morbidly sensitive about
admitting, practically, by such action, that their plans to
control the transfer business of this large city in the interests of a monopoly have signally and egregiously failed.
Another phase of this subject should also be brought to
the attention of your committee, which is, that by maintaining the same rates at St. Louis and East St. Louis, the
merchant purchasing, as many do, in the adjacent country,
and forwarding from East St. Louis, is, to all intents and
purposes, placed in a position as if he were trading 100
miles further west. To illustrate: complaint was made to
this Bureau, that flour was being shipped from Milwaukee
via the Baltimore and Ohio Railroad to Norfolk, Virginia,
by way of Baltimore, in less than car load lots, at 89 cents
per barrel, while the best figures which the St. Louis merchant could obtain in car loads was 97 cents per barrel. The
relative distances from Milwaukee to Baltimore via Chicago,
Centreton, Newark and Bellaire, and from St. Louis to
Baltimore via Cincinnati and Parkersburg, are about the
same, being 930 miles by the former as against 919 miles
by the last named route. At Baltimore there is the same




48
arbitrary rate of 13 cents per barrel on the steamer to Norfolk for the traffic of both routes, and the rate per mile is
nearly identical, being about 8~ cents per barrel for each
100 miles. If, then, the St. Louis merchant is debarred by
the margin of 8 cents against him, as compared with Milwaukee prices, from competing for this traffic to Norfolk,
even though shipments are made from East St. Louis, it
follows that these arbitrary charges for transfer, illegitimately included in and enforced by the East St. Louis
rate, as representing the rate per barrel for 100 miles haul,
practically places the merchant in a similar position to one
who was 1,019 miles instead of 919 miles distant from the
market.
It is satisfactory, however, to be convinced that one
of the results of this contest which has been carried on
between the Bridge Company and the Wiggins Ferry
Company, will be to secure permanently for your merchants, a reliable and economical transfer across the Mississippi River,- and it may be that your pbsition in this
respect will be superior to what your most sanguine expectations could have anticipated; in fact, everything is
working at present to neutralize many difficulties to which
your commerce east of the Mississippi River had, in
former years, been subjected. To explain: the St. Louis
Transfer Company, years ago, commenced, for their own
convenience, delivery at and receipts from the merchant's
store; at that time they charged street drayage, in
addition to the recognized cost of transfer. That which
was introduced for convenience has now become custom,
and is recognized equally by both the rival transfer
companies. Your merchants can now have their freight
taken from their store to the depot, or vice versa, with



49
out any street drayage, for 4 cents per 100 pounds, and
the experience of the past few months, in connection
with the Wiggins Ferry, has demonstrated clearly that
there is a margin of profit in the transfer business at such
a rate, not, perhaps, such a profit as would pay 1 per cent.
monthly on an inflated capital, but a profit which, under
economical management, would pay a fair interest on the
capital actually invested. Admitting that this present rate
of 4 cents per hundred pounds can be maintained, including
delivery atthe merchant's store, your committee will see that
circumstances and events have shaped themselves in such a
manner as to secure for the transfer and terminal handling
of a rapidly increasing traffic between St. Louis and East
St. Louis a rate which is more economical, considering the
services actually performed, than that which is prevalent
in any other city of the Union. The merchant will practically pay only 1 cent per 100 pounds, or 20 cents per ton,
for transportation across the Mississippi River. No one
could have expected that the construction of the Bridge, by
the contest which it has engendered between two transfer
companies, would have produced such results, and reduced
transfer to a minimum.
The officers of this Bureau have made careful enquiries
into the actual cost of car transfer and wagon transfer, and
believe that your committee may rely on the accuracy of
the following statement, pertinent to the Transfer business,
and that the charges for transfer and delivery at the merchant's store, whether made by Bridge or Ferry, need
never, in any event, hereafter exceed the following tdriff.
It is admitted by experts that this tariff will be reasonably
remunerative, and when the power is practically vested in
yourselves, to secure for all time to come advantages which
4




are of incalculable value, both to your local and through
traffic, no hesitancy should, in the opinion of this Bureau,
be shown in indicating clearly and unmistakably the
opinions which you entertain, and which must recommend
themselves to the intelligent members of your community.
ESTIMATED  REASONABLE TARIFF OF RATES FOR TRANSFER
AND DELIVERY BETWEEN ST. LOUIS AND EAST ST. LOUIS.
For all classes of freight, in car load lots, taken to
or from East St. Louis depots on the Island,
and originating at or destined to a section of
the city embraced by Seventh street on the
west, Chouteau avenue on the south, and Cass
avenue on the north...................................   4 cts. V 100 lbs.
For every additional ten squares beyond such
limit...............................................................lc. l.    100 lbs. extra.
Reasonable excess charges for small package delivery, not to exceed........................................ 2 cts. V 100 lbs.
For car ferry transfer, during summer months,
2 cts. per 100 lbs., or............................................   $4.00 V car.
For similar service, during winter months, 2~ cents
per  100   lbs., or...........................................................$5.00  per car.
From its extended water frontage and various landings, the Wiggins Ferry Company, in connection with the
Transfer Companies, can perform the service at the above
rates, and the merchant can secure greater dispatch than
if the freight were transferred across the Bridge and hauled
from the Union Depot to his store. It is the opinion of the
officers of this Bureau  that immediate  steps should be
taken by the Merchants' Exchange to bring their collective
influence to bear on a settlement of this question, and on
an opening of the East St. Louis rate, and that this Bureau
be specially authorized and accredited by the President of
the Exchange, to negotiate by correspondence or other



wise, as to your committee on consultation may seem best,
with the presidents and other officers of the various railroad lines connecting East St. Louis with the Atlantic seaboard, and secure their co-operation in carrying out a
much needed measure of reform.
As has been stated.before, there is an immense leverage in public opinion if properly directed, and if its
strength is collectively utilized. The general sentiment of
your merchants, as far as the officers of this Bureau can
ascertain the same, is in favor of open competition for the
drayage and transfer business of this city,'and while they
believe that the St. Louis or Wiggins Ferry Transfer
Company can perform the service more economically than
any private firm or individual, still they claim for themselves the right, and that justly, of being allowed, if
necessary, to select their own means of transfer, and of
receiving an equitable rate of freight from the legal terminus
of the trans-Mississippi railroads on the Island, instead
of being forced by arbitrary and coercive measures, into
supporting an injurious monopoly. While the efforts of
this Bureau, as stated in the opening of this report, will be
mainly directed to helping the railroad companies transacting business in St. Louis in the maintenance of a con"servative policy, and in the introduction of much needed
reforms, it is but just that your merchants should demand
from the railroad companies reasohable protection in the
transaction of their business, and that at any rate they
should have some voice in the manner how such protection
should be extended. It might be added, in this connection,
that the arguments adduced by the representatives of the
trans-Mississippi railroad companies in support of the
arbitrary ground which they have taken, are, in the opinion




52
of the officers of this Bureau, equally unsound and illogical; they reveal a consciousness of inherent weakness, and
are at variance with all those well established principles of
right which stand out in bold relief in all the legislation of
the present day, viz., that there should be no special or
sectional privileges, and that the commerce and trade of
the country should be open to all.
DISCRIMINATION.
The position has been taken by the officers of this
Bureau, that under ordinary circumstances, and with
freight tariffs suitably arranged to meet the requirements
of business and commercial enterprise, the traffic and commerce of a section of country lying within a radius of 150
miles of St. Louis should be, geographically, tributary to
St. Louis as a commercial centre and distributing point.
For the business originating at or destined to places beyond
the area embraced in such specific territory, the St. Louis
merchant is naturally compelled to compete with other
large cities, such as Chicago, Cincinnati or Louisville, and
his success in trading will depend, perhaps, as much on
his personal shrewdness and business tact as on the conditions which govern the through rates from St. Louis to
places beyond the aforesaid radius of 150 miles, in contradistinction to those from competing points. The duty of
this Bureau, as established by your Merchants' Exchange,
is to keep a careful and vigilant supervision over the
through rates established from time to time to various




sections beyond the aforesaid radius, and to guard the
interests of St. Louis in so far as rates are concerned. This
duty would be comparatively easy if there were one fixed
rule for settling freight rates to the South and Southwest,
or if the transportation lines based their rates South and
West on the pro-rata mileage principle which governs, or
is supposed to govern, the through rates from St. Louis,
Louisville, Chicago and Cincinnati to the Atlantic seaboard; but the existence of various competing avenues of
transportation to the South and Gulf States, some of said
avenues being all. rail, others part water and part rail,
necessitates from the very circumstances of the case frequent, and it may almost be said, daily fluctuations in the
cost of transportation to interior points in the South; and
it may be presumed that there can be no discrimination
against the trade of St. Louis to the points reached by the
avenues referred to, which will not speedily rectify itself.
Nature has placed in the hands of the mercantile community of this growing city a satisfactory check against anything like the perpetuation of exorbitant traffic charges to
the Southern and Gulf States, and if there is any falling off
in the commerce between St. Louis and its principal market
it may be attributed more to an abnormal condition of
affairs and lack of prosperity in that section, or to the fact
that the merchants of rival cities are satisfied with a less
margin of profit in their wholesale or jobbing trade than to
any exactions on the part of the transportation lines, which
are at variance with the duties which they owe to themselves and to their terminus, St. Louis. In reference to
rates from St. Louis to the Atlantic sea-board, your officers
would state that they do not discriminate against the
interests of St. Louis as competing with Chicago, Cincin



nati and Louisville, being arranged on a strict pro-rata
mileage basis in so far as the railroad transportation is
concerned; but there is, in the published tariff of rates on
all fourth-class and special freight eastward bound, an
arbitrary rate of 4 cents per 100 pounds added to cover
transfer and terminal charges. Special allusion is made to
this question of transfer in another portion of this report,
and reference to it therefore in this connection is superfluous, except to intimate, as above stated, that the custom
of handling freight at St. Louis differs materially from that
prevalent in Louisville, Cincinnati and Chicago, where
freight rates are made in every case from the depot, and
where the consignor has, in every instance, to make his
individual arrangements for drayage and transfer. It is
the duty of this department to see that any joint tariff
published by the railroad companies competing for business to and from the Atlantic sea-board is drawn up strictly
in accordance with the pro-rata mileage principle enunciated above, also that the classification in each instance
corresponds with that from these rival cities of Chicago,
Cincinnati and Louisville. It is believed that with few
exceptions the rates from St. Louis and Chicago to the seaboard have been uniformly maintained during the past
winter, and that there is no legitimate cause of complaint
in that direction, more especially, as the so-called trunk
lines are avowedly pursuing a conservative policy on the
question of freight tariffs, which cannot fail of being ultimately beneficial to themselves and to the mercantile
community; but it would be right to state that information
has reached this office that railroads leading from Quincy
and Keokuk have, during the past few months, been
carrying freight to the sea-board at rates which could not




possibly assure them any profit, but, on the other hand,
would have involved them in actual loss, unless the trunk
lines and their immediate connections had been pro-rating
on terms which were not accorded to the cities of St. Louis
and Chicago. It follows that if this information is correct,
discrimination has been shown against your city, which
would form a proper subject of complaint to the presidents
of the various trunk lines, but your committee must be
aware equally with this Bureau, that difficulties are always
thrown in the way of ascertaining the truth in these matters, and as your officers have no recognized legal status
which can enable them to demand the necessary documentary evidence, they can do nothing more than draw your
attention to reports, which appear prima facie plausible,
and in accordance with the policy too often pursued by
railroads which are in the hands of receivers. Your committee can readily understand that if the same policy
which has been ostensibly adopted by the trunk lines
towards St. Louis, Chicago, Cincinnati and Louisville is
maintained inviolate towards cities such as Burlington,
Quincy, Peoria and Keokuk, and if their east bound rates
are fixed relatively to those in force from Chicago and St.
Louis, there can be on the part of your merchants a fair
competition for traffic which has been hitherto in a great
measure tributary to St. Louis; but if, on the other hand,
relatively lower rates have been given, and continue to be
given, to the places above mentioned, a serious blow is
being struck at your commerce, and an injury inflicted
which cannot be easily cured. Common justice requires
that the trunk lines should protect your interests and
adhere strictly to one unifborm line of action towards all
their patrons. Experiments in reforming abuses should




not be made practically at your expense, and to the deterioration of your recognized commercial prestige.
Numerous verbal complaints have been made to this
Bureau in relation to the rates of freight from St. Louis to
points in Texas and the Southwest, and it has been stated
that freight was shipped from New York and Boston
through St. Louis at lower through rates than those which
the merchants of this city could obtain if freight originated at and was shipped from St. Louis proper; hence, any
competition for trade between that section of country and St.
Louis was impossible. In consequence of these complaints
not having been submitted to the officers of this Bureau in
the form of a written communication, no definite action has
been taken towards remedying a palpable discrimination,
and making such representations to the officers of railroads
interested in that traffic as might lead, at any rate, to an
amelioration of the alleged injustice; but in arriving at a
just conclusion about the question of rates to Texas and
the Southwest, your committee must carefully bear in mind
that the railroads leading from St. Louis in that direction
do not control the entire line to Dallas and other interior
points, and that they are met at Texarkana and Denison
with local arbitraries which militate against St. Louis, and
in the majority of instances must direct the trade via Galveston. There has also been for many months past a
strong competition for business between steamship lines
running from New York and Boston to Galveston, and
rates have in consequence been reduced to an extent quite
inconsistent with the services performed.  The railroad
lines leading from Galveston to interior points in the State
of Texas have not been slow to avail themselves of these
reductions, and to load their north bound cars (which




57
under other circumstances would have returned empty)
with freight for which they obtained a long haul at, comparatively speaking, remunerative rates.  Grave errors
have occasionally been committed in railroad management,
and the trade of cities has sometimes been seriously interfered with by injudicious obstinacy on the part of railroad
managers; but your officers can hardly believe that the
executive in charge of two such important arteries of traffic
as the St. Louis, Iron Mountain and Southern, and Missouri,
Kansas and Texas Railways, are so blind to their permanent
interests, as to neglect any precautionary measures which
may tend to develop the commercial interests of St.
Louis, and to prevent commerce legitimately tributary to
your city from being diverted into other, and less direct,
channels. It might be mentioned in this connection that
soon after the organization of this Bureau, complaint was
made that freight was being shipped from Cincinnati to
Little Rock, (Ark.) through St. Louis, at less rates than
those which were charged by the St. Louis, Iron Mountain
and Southern Railway from St. Louis to Little Rock.
Proper representations were made at the time to Mr. A. W.
Soper, General Superintendent, about the injustice of such
a practice which discriminated against your city, and
efforts were made to obtain the original bill of lading on
which such allegations were based, but as such bill of lading has not yet been produced, no further action could be
consistently taken in the premises.
In reference to rates from St. Louis to points in Kansas
and Missouri, as compared with those in force from Cincinnati and Chicago to similar points, it cannot be denied
that the two last named cities have had advantages which
practically amounted to discrimination, and which, if per



58
petuated, must seriously prejudice the interests of this city.
It is impossible to ascertain the rates now in force from
Chicago westward, because during the past fortnight the
railroads competing for that business from Chicago and St.
Louis, have been involved in a fight, and in an indiscriminate
cutting of rates, but it would appear that the officers of
the St. Louis railroads have heretofore assented to an
arbitrary difference in rates from Chicago and St. Louis
to western points, commanding the trade of Kansas, Colorado and Nebraska, to say nothing of southwestern
Missouri and the Indian Territory; said difference being
entirely at variance with the pro-rata mileage principle, and
one which practically resulted in diverting traffic from your
merchants. To explain: on February 1st, the railroads
leading from St. Louis and Chicago to Kansas City issued
tariffs in which the rates were as follows:
1st. 2d. 3d. 4th. Special.
Chicago to Kansas City, 90, 70, 50, 40, 35, per 100 lbs.
St. Louis to Kansas City, 68, 49, 31, 24, 21,  per 100 lbs.
The distance from St. Louis to Kansas City being 275
miles, as against 489 miles from Chicago. The St. Louis
rates, on the comparative mileage basis, should have been:
lst.    2d.     3d.    4th.    Special.
50C.    40C.    28C.    22~C.    20c.
When the Kansas City merchant could ship to Chicago
at a little less per mile, than what he was charged to St.
Louis, it was reasonable that he should make efforts to
avail himself of the first named market, especially when in
forwarding first class and second class merchandise from
Chicago to distribute through the country from which his
heavy fourth class shipments had been procured, he ob



tained rates 30 per cent. less in proportion, than those with
which the St. Louis merchandise was taxed.
Turning again to Cincinnati, we find that at the time
alluded to, rates from Cincinnati and St. Louis to Kansas
City were respectively as follows:
1st.  2d.   3d.   4th.  Special.
From Cincinnati, $1 00 80c. 60c. 45c. 40c. per 100 lbs.
From St. Louis,   68 49  31  24  21   "   "
In other words, the St. Louis merchant competing with the
Cincinnati merchant, and being 340 miles nearer to the
market, was compelled to pay for his haul of 275 as
against 615 miles, rates, which, on the pro-rata mileage
basis, were in some cases fully 50 per cent. higher than
they should have been. The St. Louis rates should have
been, in order to enable the merchant here to compete on
equal terms with Cincinnati:
1st.   2d.      3d.    4th.   Special.
45c.    36c.    27c.    20c.    18c.
The remarks made above in relation to the tendency of
such action to divert trade from St. Louis are equally
applicable here. Considering the fact that the railroads
leading out of St. Louis to Kansas City are owned and
controlled mainly by the capitalists of St. Louis, it would
appear only right that in any subsequent adjustment of
rates through to common points, such as Kansas City, the
merchants of this city should insist on rates being established, according to the actual comparative mileage.
Allusion was made on a previous page to the fact that
the railroad lines leading out of St. Louis and Chicago
respectively had, with but few exceptions, ostensibly maintained uniform rates during the past winter, in accordance
with their published joint tariffs. One of these exceptions
may be appropriately noted here, and deserves the attention,




60
not merely of your executive committee, but of the Merchants' Exchange collectively. During the past two weeks
large shipments of corn have been made to Toledo, over the
Toledo, Wabash and Western Railway, and at rates
which, according to the information furnished to this
Bureau, averaged but little over 4 cents per bushel for 434
miles. The joint tariff rates from St. Louis to Toledo were,
according to that last published, 31 cents per 100 pounds,
or 27 cents if taken from the East St. Louis elevators. This
rebate or difference of 4 cents per 100 pounds on grain
shipped from East St. Louis is generally understood among
shippers, although the railroad companies do not openly
avow the fact. With the established rate, however, before
them of $54 per car, the railway company alluded to carried
corn, as it is stated, at $16 per car to Toledo from East St.
Louis, and in some instances allowed the corn to be underbilled. It was claimed by the agent of the Company here
that the managers of the road with which he was connected
considered Toledo as a local point on its line of road,
that all the contracts in reference to the transportation had
been made in Toledo, at the head office, and that as in
consequence of the unusually inclement weather no agricultural produce could be hauled to the local stations
along the line, it was better to have the equipment moving
at any price than that it should lie idle on the side tracks.
There is a certain amount of reason in these arguments, and
no one will deny the right of a railroad company to adapt
its local tariff to the exigencies of a peculiar emergency;
but in allowing the Toledo merchant the advantage of a
low rate, and in denying the same privilege of a reduction
to the St. Louis shipper (which this Bureau is credibly
informed by members of the Exchange to have been the




case), the railway company discrinzinated in a most reprehensible manner against St. Louis' interests, and prevented
your merchants from handling a large amount of produce
which, with equal advantages, would naturally have fallen
to their share. The commerce of this country should be
open to all, subject, of course, to the various modifications
in classification incidental to the transaction of a wholesale
or retail business, and the extension of exclusive privileges
to a favored few should be strongly reprobated and discountenanced. It might be added further, that while this
low rate to Toledo was ostensibly made in the interests of
the elevators at that place, this Bureau is informed that
large quantities went through on the said reduction to Philadelphia and Baltimore. The attention of your committee is
especially drawn to this circumstance in view of the fact
that exporters from Baltimore, anxious to trade with your
merchants for corn to ship to Liverpool, were in this city
last week, and were unable to obtain rates of freight on
corn which would justify them  in carrying out their
intentions.
At the first meeting of the officers of your Transportation
Bureau with the Executive Committee and the Board of
Directors, it was laid down as a fundamental rule for their
guidance, that St. Louis was practically the pivot round
which the commerce of a certain section of country should
revolve, and they were instructed to make comparative
tables, not merely of through, but of local rates. In
carrying out this idea it has been the aim of your Superintendent and the Assistant Superintendent to obtain not
merely the local tariffs of the various railroad lines in your
immediate vicinity, but from all sections of the country,
and thus collect a mass of information which, as pertinent




62
to the general subject of transportation, could not fail of
being useful. Almost all the railroad companies to whom
application was made, have willingly responded, and have
kindly promised to give to the officers of this Bureau every
assistance in carrying out their plans. This action on the
part of railroad companies generally is highly satisfactory, as indicating their appreciation of the conservative
principles by which this Bureau is supposed to be governed,
and their understanding that while its efforts will be
directed, as far as practicable to the abolition of abuses
now existing, it is by no means antagonistic to the true
and correct policy of railroad management. A careful and
critical examination of the local tariffs of railroads terminating at East St. Louis and St. Louis reveals the fact that
in many important respects they are not framed to advance
the commercial interests of your city, and that serious
discriminations in favor of Cincinnati and Chicago exist,
and this, too, at points which are within the radius of the
150 miles alluded to above. A few instances will fully
explain what is meant.
1st.   2d.    3d.    4th.
St. Louis to Vandalia, 68 miles.........42c. 35c. 28c. 23c. per 100 lbs.
Cincinnati to Vandalia, 286 miles......65  55  45  35  per 100 lbs.
Indianapolis to Vandalia, 171 miles.. 60.20 49.40 39.50 30.10 per 100 lbs.
There is included in the St. Louis rates, as given, 4 cents
per 100 pounds for transfer, but by adding 50 per cent. on
the pro-rate which the St. Louis merchant, in competition
with the Cincinnati merchant should have, so as to cover
the extra expenses incidental to a short haul, it will be
found that the rates from East St. Louis to Vandalia
should be, in round numbers:
1st.     2d.       3d.     4 th.
23 cts.  19.50 cts.  16 cts.  10.50 cts.




63
and that the rates from  St. Louis, including transfer
charges, should not exceed1st.     2d.       3d.      4th.
27 cts.  23.50 cts.  20 cts.  14.50 cts. per 100 pounds.
The business of a place like Vandalia, with a rich
adjacent country, is geographically tributary to St. Louis;
but it can be plainly seen that the result of such rates as
are above given, is to drive the business away from St.
Louis, to induce the Vandalia storekeeper to trade at Cincinnati, where he can obtain goods at tile established St.
Louis prices, but where, in consequence of proximity to
the sea-board, the dealer in produce can probably afford to
give a higher price than his St. Louis competitor. Again,
take Effingham, another important station on the same
line of railroad, 98 miles distant from St. Louis, and the
following rates will indicate very clearly how the local
tariffs are framed so as to discriminate against St. Louis:
1st.  2d.   3d.  4th.
St. Louis to Effingham, 99 M..49.50c. 40.70c. 32.80c. 26.80c. per 100 lbs.
Cincinnati to Effng'm, 255 M, 60   50   40   30    per 100 lbs.
Were the St. Louis merchant allowed in this instance
the same pro-rate per mile as the Cincinnati merchant, with
50 per cent. added on to such pro-rate to cover the additional
expenses of a short haul, the rate from St. Louis to Effingham, including 4 cents per 100 lbs. transfer, should not
exceed the following figures:
1st.     2d.        3d.       4th.
39 cts.  32.70 cts.  27.30 cts.  21.50 cts. per 100 lbs.
Further comment on this is unnecessary, because it will
be apparent to any intelligent mind that the direct effect of
such a tariff is to drive business away from the place where
it legitimately belongs. In the two instances above given
there is no doubt that the officers of the railroad company




64
in question will claim that their tariffs are regulated, so as
to secure the long haul over their line. This has become a
hackneyed expression, and one with which a remonstrance
against discrimination is continually greeted, but too much
stress is laid upon it, in view of the established fact that
local or way business can be handled to points at such a
distance as 68 and 99 miles from a terminus for 33 1-3
per cent. in excess of the cost of hauling a through train
which has no detentions other than side tracking, to meet or
allow another train to pass. In framing the above rates, as
in the opinion of this Bureau they should be framed so as
not to discriminate against the interests of your city,
allowance has been made for the short haul, costing 50 per
cent. more than the long haul —a very liberal margin.
In the case of Terre Haute, 167 miles distant from St.
Louis, the argument of short versus long haul cannot be
introduced, because the Vandalia Line, in helping to carry
freight from Cincinnati to Terre Haute, has only a haul of
72 miles, as against 167 miles, yet, how are the rates framed?
1st.  2d.  3d.  4th.
St. Louis to Terre Haute, 167 M..63.20c 52.60c 42.90c 33.60c per 100 lbs.
Cincinnati to Terre Haute, 187 M..50   40   30   20   per 100 lbs.
Terre Haute is certainly outside of the 150 miles radius,
but it is a fair field of competition for the St. Louis merchant,
and, were he allowed the same privileges as the Cincinnati
merchant, he might compete and obtain a fair share of the
business. This fact is indicated by the following figures,
which, on an equitable basis of a similar rate per mile as
his Cincinnati competitor, and allowing 4 cents per 100 lbs.
for transfer at St. Louis, would give the merchant here
Is f.     2d.       3d.       4th.
48 70 cts.  39.50 cts.  30.80 cts.  21.85 cts. per 100 lbs.
as a basis whereon to trade.




65
Similar inconsistencies in framing its local tariff will
be found to exist on the line of the Indianapolis and St.
Louis Railroad, as will be seen from the following examples:
1st.   2d.   3d.   4th.
St. Louis to Alton, 25 miles......32c.  26c.  21c.  15c. per 100 lbs.
Cincinnati to Alton, 360 miles... 75c,   65c.  45c.  25c. per 100 lbs.
INo question can be raised about St. Louis being the
legitimate market for Alton and that rich country near
Brighton, Godfrey, and even as far as Jerseyville, yet, the
tariffs now in force both on the Indianapolis and St. Louis,
and Chicago, Alton and St. Louis Railroads have a direct
tendency to divert from, instead of to attract business to, St.
Louis. The rates from St. Louis to Alton should not, in
the opinion of this Bureau, exceed the following figures,
including transfer charges:
1st.      2d.       3d.       4th.
21.50 cts.  18 cts.  14.45 cts.  11 cts. per 100 lbs.
Again, Litchfield, 56 miles distant from St. Louis, is a
place of considerable importance, the distributing point
for a rich, agricultural section of country, and one with
which the merchants of St. Louis should, under ordinary
circumstances, transact a heavy and remunerative business,
yet, here the privileges are accorded to Cincinnati, as will
be seen from the following rates:
1st.  2d.  3d.  4th.
St. Louis to Litchfield, 56 miles...... 39c. 32.20c. 26c. 23.60c. per 100 lbs.
Cincinnati to Litchfield, 321 miles..75c. 65c.  35c. 30c.  per 100 lbs.
If the railroad company were to allow the St. Louis
merchant the same.pro-rate per mile as the Cincinnati
merchant, and if they were to add on to such pro-rate 75
per cent. for first and second class, and 100 per cent. for
third and fourth class, the rates between St. Louis and
Litchfield should not exceed, including transfer,
1st.        2d.         3d.        4th.
26.75 cts.    21.50 cts.    16 cts.    14 cts. per 100 lbs.
5




66
Half way between St. Louis and Terre Haute, on the
line of the Indianapolis and St. Louis Railroad, is situated
a small town called Pana. The relative rates from St.
Louis and Cincinnati are as follows:
1st.    2d.    3d.  4th.
St. Louis to Pana, 95 miles............48.60c. 40c. 32.30c. 26c. per 100 lbs.
Cincinnati to Pana, 282 miles.........65    50  40    30   "   "
Can there be any reasonable doubt that if the rate from
Pana to St. Louis were assimilated in some degree to that
from Cincinnati all the traffic would converge to St. Louis
as a market? After allowing 50 per cent. in excess of a
mileage pro-rate, and adding the transfer charges of 4
cents per 100 pounds, the rate between St. Louis and Pana,
so as not to discriminate against St. Louis, should not
exceed the following figures:
1st.       2d.        3d.         4th.
37 cts.    29 Cta..    24.25 cts.    19 cts. per 100 lbs.
A considerable, but by no means unreasonable, deduction
from the present tariff in force.
At Mattoon, 134 miles from  St. Louis, and the half way
point between St. Louis and Indianapolis, on the line of
the Indianapolis and St. Louis Railroad, and where the
argument of short versus long haul call fortunately not be
appropriately introduced, it is found that the following
tariffs from Cincinnati and St. Louis respectively are in
force:
1st.  2d.   3d.  4th.
St. Louis to Mattoon, 134 M...... 56.60c. 47.80c. 37.30c. 30.30c. per 100 lbs.
Cincinnati to Mattoon, 243 M....60   50'35   30  "   "
It is not unreasonable to claim, in. this instance, that the
St. Louis merchant should at any rate receive from the
railroad company similar privileges to those accorded to
his Cincinnati competitor, and yet the following figures
show how much the existing rates discriminate against St.




67
Louis. An accurate mileage pro-rate, with transfer of 4
cents per 100 pounds added, would enable the St. Louis
merchant to ship at the following figures:
1st.      2d.        3d.        4th.
37.85 cts.  32.35 cts.   23.cts.    20.50 cts. per 100 lbs.
It will, no doubt, be argued that Mattoon is a competitive
point for business from  Cincinnati, and that if a reduction
were not made from the existing local tariffs, the freight
would come from Cincinnati via Odin, but such argument,
although specious, is not tenable, in view of the fact that
by adopting such a tariff as that indicated above, the
Indianapolis and St. Louis Railroad Company could practically monopolize for St. Louis all the traffic which was
not taken from it to Chicago by the Illinois Central
Railroad.
Again, Paris is 171 miles from St. Louis and 206 miles
from Cincinnati, yet the rates compare as follows:
1st.  2d.    3d.  4th.
St. Louis to Paris, 171 miles......64c. 53.20c. 43.40c. 34c. per 100 lbs.
Cincinnati to Paris, 206 miles...60  50  40    25    "   "
On the pro-rata mileage basis, i. e., allowing the St.
Louis merchant the same rate per mile as his Cincinnati
rival, the rates from St. Louis, including 4 cents per 100
pounds transfer charges, should not exceed the following:
1st.     2d.      3d.      4th.
54 cts.   45 cts.   37 cts.   25 cts. per 100 lbs.
The officers in charge of your Transportation Bureau
have deemed it advisable to enter at some length into the
facts connected with what, in their opinion, is unjust discrimination against St. Louis and its mercantile interests,
but at the same time in suggesting a modification of the
existing local tariffs from St. Louis to the points mentioned
above, they have been governed by a knowledge of the
traffic originating at and destined to those places, as well




68
as of the approximate cost of the service, and it is believed
that your committee will endorse the opinion that subject
to the existing rates for transfer to or from East St. Louis, the
legal terminus of the railroad companies above alluded to,
and subject also to an additional per centage, covering the
difference between a long and a short haul, the St. Louis
merchant is entitled to the same pro-rate per mile as his
Cincinnati competitor.
With reference to the Chicago, Alton and St. Louis,
and the Ohio and Mississippi Railroads, a careful and
impartial examination of their published local tariffs
reveals the fact that in many very important particulars
they discriminate against St. Louis. More especially perhaps is this the case in the published tariff of the Chicago,
Alton and St. Louis Railroad, which is evidently framed
to draw business to Chicago, instead of to St. Louis, its
southern terminus. This fact is evidenced by the following
figures:
1st.    2d.    3d.   4th.
St. Louis to Carlinville, 57.7 miles...48.2c. 41.1c. 34.2c. 28.1c. per 100 lbs.
Chicago to Carlinville, 223.3 miles...69.7c. 59.7c. 49.7c. 37.7c.  "   "
If the rate from St. Louis to Carlinville were framed
with due regard to the interests of St. Louis, and the
merchant allowed the same pro-rate per mile as his Chicago
competitor, with 50 per cent. added on to the same to cover
the expenses claimed to be incidental to a short haul, the
tariff from St. Louis, with 4 cents per 100 pounds added
on for transfer, would be:
1st.        2d.       3d.        4th.
31 cts.    26.50 cts.  22.75 cts.  18.40 cts. per 100 lbs.
Your committee will bear in mind that Carlinville is
the county seat of Macoupin county, has a population of
4, 500, and is the commercial centre of a section of country




69
which has a population, according to the last census, of
32,726, with an aggregate wealth of $27,541,624, and the
value of whose agricultural productions, including live
stock, was $4,291,238.
Turning further north to Springfield, 95 miles distant
from St. Louis, the county seat of Sangamon county, with
a population of 20,000, according to the last census, it is
found that the following tariff is in force:
1st.  2d.  3d.    4th.
St. Louis to Springfield, 96 miles....56c.  46c. 39c. 32c. per 100 lbs.
Chicago to Springfield, 185 miles...68.2 - 58.2 48.2 36.2    " I
On a strict mileage pro-rate, assimilated to that from
Chicago, with 25 per cent. added to cover the difference
between a long and a short haul, and including the transfer
charges of 4 cents per 100 pounds, the St. Louis merchant
should be able to compete with his Chicago rival on the
following basis of rates:
1st.      2d.       3d.        4th.
47.75 cts.  41.50 cts.  35 cts.    27.20 cts. per 100 lbs.
From places beyond Springfield the freight tariff of the
Chicago, Alton and St. Louis Railroad appears, on examination, to be equitably arranged, and, at any rate, as far
north as Lincoln, the St. Louis merchant can compete successfully for business; beyond that point the traffic must
necessarily diverge to Chicago.  The attention of your
committee is directed to the fact that the whole country
traversed by the Chicago, Alton and St. Louis Railroad,
between Alton and Lincoln, may be appropriately termed
the "Garden of Illinois."  It affords one of the best fields for
the development of the commercial enterprise of St. Louis,
and there is no doubt that a large share of business will
be diverted into this channel, provided that through proper
representations, and the exercise of a collective influence




70
which the Merchants' Exchange can bring to bear, the
principle before enunciated is established, that subject to
the existing rates for transfer to and from East St. Louis,
the legal terminus of the trans-Mississippi railroads, and
subject also to an additional percentage covering the
difference of cost between a long and a short haul, the St.
Louis merchant shall be entitled to the same pro-rate per
mile as his Chicago competitor.
Again, with reference to the Ohio and Mississippi Railway, the opinion must be expressed that the local freight
tariff is not arranged so as to encourage business with St.
Louis.  Commencing with Odin, 65 miles distant from  St.
Louis, it is found that the published tariff from St. Louis,
said tariff including 6 cents per 100 pounds transfer charges,
is as'follows:
1st.      2d.      3d.       4th.
42 cts.    37 cts.   31 cts.    26 Cts.
and from Cincinnati to the same point, a distance of 275
miles, the rates are:
1st.      2d.       3d.       4th.
73 cts.    58 ets.    48 cts.    34 cts.
If the St. Louis merchant were placed on an equal
footing with his Cincinnati rival, the rates, with 50 per
cent. added thereto to cover the cost of difference between
a short and long haul, and subject to 4 cents per 100
pounds transfer charges, would be, in round numbers:
1st.       2d.       3d.      4th.
30 cts.    24 cts.    21 cts.   16 ets. per 100 lbs.
At Odin, however, the St. Louis merchant comes into
competition with Chicago as well as Cincinnati, and it will
be seen that the existing rates of the Ohio and Mississippi




71
Railway militate against this city. The tariff from Chicago
to Odin, a distance of 244 miles, is as follows:
1st.       2d.         3d.        4th.
67.55 cts.   57.55 cts.   47.55 cts.   37.75 cts. per 100 lbs.
while the rates from  St. Louis, as published, including 6
cents per 100 pounds transfer charges, are:
1st.       2d.        3d.        4th.
42 cts.    37 cts.    31 cts.    26 cts. per 100 lbs.
If the St. Louis merchant were allowed the same prorate per mile as is allowed the Chicago merchant, his rate
from St. Louis to Odin, including 50 per cent. additional,
as in the former case, and 4 cents per 100 pounds transfer
charges, would be, in round numbers:
1st.        2d.          3d.         4th.
31 cts.    27 cts.       23 cts.      19 cts. per 100 lbs.
At Flora, another important place on the line of this
railway, with a population of nearly 1,400, the following
tariff is in force:
1st.   2d.   3d.   4th.
St. Louis to Flora, 95 miles...... 48 cts. 40 ets. 35 cts. 30 cts. per 100 lbs.
Cincinnati to Flora, 245 miles..70    55    45    33     "   "
The St. Louis rate includes, as at present published, 6
cents per 100 pounds transfer charges, but if it was framed
on the pro-rate mileage basis, the tariff, after making 25
per cent. additional allowance for difference in cost between
the long and short haul, and including 4 cents per 100
pounds transfer, would be, in round numbers, as follows:
1st.        2d.          3d.         4th.
38 cts.     30 cts.      26 cts.     20 cts. per 100 lbs.
At Vincennes, 148 miles distant from  St. Louis, and 192




72
from Cincinnati, the following tariff is in force, the St.
Louis rate  including  6 cents per  100  pounds  transfer
charges:
1st. 2d. 3d. 4th.
St. Louis to Vincennes, 148 miles............ 61c. 51c. 43c. 34c. per 100 lbs.
Cincinnati to Vincennes, 192 miles.........60  50  40  30    "    "
On a pro-rata mileage basis with 4 cents per 100 pounds
added for transfer charges, the St. Louis merchant should
be entitled to the following rates, in round numbers:
1st.         2d.           8d.           4th.
50 cts.      43 cts.       35 cts.       27 cts. per 100 lbs.
At this point, however, there is also a discrimination
against St. Louis in favor of Louisville, as will be seen
from the following figures:
1st. 2d. 3d. 4th.
Louisville to Vincennes, 173 miles,  61c. 51c.. 32. per 1 bs.
including 3c. per 100 lbs. transfer,    61c. 51c. 42c. 32c. per 100 lbs.
Ist. 2d. 3d. 4th.
St. Louis to Vincennes, 148 miles,   61c. 51c. 43c. 34c. per 100 lbs.
including 6c. per 100 lbs. transfer,
On the basis which has been laid down as equitable in
adjusting the rates, so as not to discriminate against St.
Louis, the tariff from St. Louis, including 4 cents transfer
charges, relatively with that from Louisville, should not
exceed, in round numbers:
1st.        2d.           3d.          4th.
54 cts.     45 cts.       37 cts.      29 cts. per 100 lbs.
In reference to other trans-Mississippi Railroads, such
as the St. Louis and Southeastern, St. Louis and Cairo
Short Line, Cairo and St. Louis (narrow gauge), and Rockford, Rock Island and St. Louis Railroads, it may be
stated that, while the existing tariffs are perhaps in excess
of what they should be to secure a large increase of busi



73
ness with St. Louis, they are perhaps adapted to the
exigencies and peculiarities of each individual line, and do
not discriminate against St. Louis interests. The axiom
"that traffic of all kinds responds quickly to the facilities
furnished for its transaction," should be kept continually
in view by railroad companies, and the records of many
years show that those companies have earned the most
money, paid the highest dividends, and cultivated the most
friendly feeling with all their patrons, who have built up
slowly, perhaps, but surely, a permanent and remunerative local business without being led astray from the main
object of their original charter by the bugbear of through
business. It is right to state in this connection that of all
the transrMississippi railroads, the Toledo, Wabash and
Western has the lowest local tariff, and one which, perhaps more than any other, tends to build up business for
St. Louis. This is demonstrated by the following table,
showing the comparative rates for 50, 100, 150 and 200
miles respectively, on railroads leading from East St. Louis.
Name of Railway.    Mls.   1st.  I  2d.       3d.      4th.
1 50 30  Cts. 28  cts. 22  cts. 18  cts.
OHIO AND MISSISSIPPI  100 43   "  35   "  30   "  25   "
RAILWAY.              150 55   "  45   "  37   "  29 "
200 61   "  51   "  41   "  31
VANDALIA LIN`E, AND 1 50 34   "  27   "  21   "  17
INDIANAPOLIS AND  100 46   "  37   "  29   "  23   "
ST. LOUIS  RAIL-  150 56   "  46   "  37   "  28   "
ROAD.                200 66   "  54   "  43   "  33   "
50 43   "  36   "  29.50 "  23.5  "
CHICAGO, ALTON AND   100 53   "  43   "  35.50 "  28.5  "
ST. LOUIS RAILROAD  I50 63   "  53   "  43   "  33.5  "
2G0 68.8'  58.8  "  48.85 "  36.8  "
1 50 22   "  18   "  14   "  11   "
TOLEDO, WABASH AND' 100 31   "  27   "  20   "  16
WESTERN RAILWAY.  150 40   "  34   "  26'"  22   "
J 200 45   "  40   "  32   "  25   "




74
Turning to the railroad lines leading west and south
from St. Louis, you will find that the local tariffs are much
on a par with those of the trans-Mississippi Railroads in
so far as the Missouri Pacific and St. Louis, Kansas City
and Northern Railroads are concerned, but that in force
on the St. Louis, Iron Mountain and Southern Railway is
largely in advance of the general average. It is impossible
to understand how the true interests of these railroad
companies can fail of being identical with those of your
merchants, still, numerous verbal complaints have been
made to this Bureau to the effect that Chicago obtained in
too many instances better rates than St. Louis, and consequently was enabled to divert to that market live stock
and produce which were geographically tributary to St.
Louis. Of course, these unofficial complaints about discrimination may have been exaggerated, but if the local
tariff of the St. Louis, Kansas City and Northern Railway
is so framed that corn can be hauled in wagons from
Wellsville (90 miles from St. Louis) to Mexico, and be
shipped thence to Chicago at better rates than it can be
transported by the railway company from Wellsville to its
legitimate market, St. Louis; or, if the rates from St. Louis
to Moberly are such as to make the merchants of that
section trade in Chicago, it may be inferred that some
modification of existing rates is necessary; but these and
other similar questions will be gradually examined into by
this Bureau, and there is no doubt, from the favorable
manner in which your action in creating a Transportation
Bureau has been recognized by the various railroad companies of St. Louis, that any reasonable representations
will be promptly complied with: A general feeling appears
to be prevalent that the Missouri, Kansas and Texas




Railway Company is discriminating against this city, and
complaints were recently made in the press that live stock
from Clinton, in Henry county, was transported to Chicago,
a distance of 464 miles, at lower rates than could be
obtained to St. Louis, 229 miles distant. from the same
place. It could not be expected that the Missouri, Kansas
and Texas Railway Company would take for a haul of 40
miles, the same rate per mile that they might be willing to
accept for a haul of 183 miles, and it might, perhaps, be
found, on close examination into the facts connected with
this live stock business, that the officers of the Missouri
Pacific Railroad were unwilling to make such concessions
from Sedalia to St. Louis as would justify the Missouri,
Kansas and Texas Railway Company in abandoning the
revenue accruing from the 143 miles additional haul between
Sedalia and Hannibal. All these evils, however, eventually rectify themselves, and it may be anticipated that with
the change of management now in effect on the Missouri
Pacific Railroad, a new policy will be inaugurated, and
better facilities furnished to the Missouri, Kansas and
Texas Railway Company for making your city the objective eastern terminus for its traffic. Your committee are
aware that some years ago the Missouri, Kansas and Texas
Railway Company contemplated obtaining control of the
Missouri Pacific Railroad, but that its wishes in that direction were neutralized by the lease of that property to the
Atlantic and Pacific Railroad Company. At that time the
Missouri, Kansas and Texas Railway Company was forced
to seek some independent eastern terminus, and it selected
Hannibal, building an independent line from Sedalia to
Boonville, crossing the Missouri River at that point, and
extending its line to Moberly, where it obtained con



76
trol of the Hannibal and Missouri Central Railroad. It
is surprising that with the facilities thus furnished for
reaching Chicago, Toledo and other eastern markets, and
with the feeling existing against the Atlantic and Pacific
Railroad management, St. Louis was not abandoned altogether; but a contrary policy has prevailed, a direct
connection with the St. Louis business has been maintained, and heavy annual expenditures have been incurred
in providing suitable offices and depot accommodations for
the traffic originating at or destined to St. Louis. A long
conversation with Mr. W. P. Robinson, General Freight
Agent of the Missouri, Kansas and Texas Railway, and an
inspection of certain private records, pertinent to the freight
business between St. Louis and Texas, were satisfactory
as indicating that many of the rumors about discrimination
were absolutely groundless, and that every effort was
being made to build up between your city and the section
of country traversed by the Missouri, Kansas and Texas
Railway a healthy and a permanent traffic.
Before concluding these remarks on discrimination it
may be as well to repeat the position taken by the officers
of this Bureau, viz., that subject to the existing rates for
transfer to or from East St. Louis, the legal terminus of the
trans-Mississippi railroad companies, and subject also to an
additional percentage covering the supposed difference of
cost between a long and short haul, the St. Louis merchant
is entitled to the same rate per mile as his Cincinnati,
Louisville or Chicago competitor, and that any deviation
from such rule must naturally tend to discriminate against
the commercial growth and development of St. Louis; at
the same time it may be as well to state to your committee
that discrimination is in too many instances the scape-goat




77
for errors which are traceable to commercial apathy and
lack of enterprise, and that if fair and impartial treatment
is expected by your merchants from the transportation
companies they should in turn strain every nerve and adopt
every expedient to checkmate their competitors, and thus
guarantee for railroad companies a permanent increase of
traffic. If the Transportation Bureau is successful in
obtaining a cessation of abuses which militate against St.
Louis, the efforts of your Exchange should be collectively
directed to develop business in the various sections, where,
by a reduction of existing local rates, the St. Louis merchant has been placed on an equal footing with the
merchants of rival cities, and future results should vindicate, in an unqualified manner, the wisdom of the policy
which has been recommended by this Bureau.
There is another form of discrimination, however, which
as affecting and undermining the high tone of honor and
fair dealing which have hitherto been marked characteristics of the St. Louis mercantile community-is perhaps
more permanently disastrous in its effects and general
results than any discrimination against your trade, in so
far as rates are concerned. Allusion is here made to the
practice adopted by unscrupulous shippers of underbilling freight, which practice discriminates directly against
the honest merchant, and prevents him from competing on
equal terms with his less honest but unscrupulous neighbor. These remarks may appear to be couched in strong
language, but the officers of the Transportation Bureau
would be derelict in duty to themselves, and to your
committee, if they failed to repudiate in the most unqualified manner, a practice, which during the past few years
has assumed mammoth proportions, and which induces




78
the belief that it has been more or less connived at by the
agents of railroad companies whose duty it should have
been to protect, and not to prejudice the interests of their
employers. This question of underbilling freight has been
brought prominently before the Board of Directors of the
Merchants' Exchange within the past few days, and the
facts elicited on sworn testimony at the trial of the merchant accused of underbilling, prove that the evil has
taken much deeper root than could ever have been anticipated, and that it is not confined to city speculators, but
that it is dominant in the country districts whence produce and other material is drawn to supply your market.
A brief resume of the evidence given by respectable commission merchants holding their heads high in your commercial community, is pertinent to this report, and is herewith submitted. The offence against the recognized laws
of commercial honesty, was not denied by the defendant,
but was justified on the ground of general custom, prevalent among his other competitors for business, more especially to the South.  To corroborate and substantiate this
incongruous line of defence, the evidence of others was
introduced that hay and grain were frequently underbilled;
that the commission merchant was frequently requested by
purchasers to underbill; nay, further, that in many
instances he was approached by railroad agents with the
intimiation thit he might underbill. Another witness testified that from his personal knowledge, underbilling was
always considered customary, and that in one special
instance 190 cars went through east underbilled 5000 pounds
each, and this with the knowledge and consent of the line
agent and the railroad agent. These cars were, according
to the best of his recollection, forwarded by the "White




79
Line." This witness admitted that he had been in the constant habit of underbilling to Atlanta and other southern
points, by the " Cairo Short Line," because by so doing he
could obtain a market. Such a practice was not, according
to the opinion of this witness, a question of honesty, but
entirely a matter between the railroad company and the
shipper. Evidence was also adduced that the practice had
been going on for eight or ten years, more especially on
freight destined south; but that it had been equally prevalent on roads leading east, by whose agents it had been
kindly intimated that so long as the underbilling did not
exceed 3,000 pounds per car, no fault would be found.
The statement of another buyer for Eastern markets was
to the effect that on a recent visit East, he had seen the
books of certain merchants, in which the weight billed was
given as well as the actual weight, and that not in one, but
in many instances, cars presumed according to regulations
to contain 20,000 pounds, actually transported 30,000
pounds. There was no trouble on some lines to effect such
an arrangement, and it was understood that all freight to
New England points went through underbilled. This witness admitted that he had recently underbilled, but that
his personal trade with the East had been considerably
interfered with by the Pennsylvania railroad company's
regulations about weighing freight.  He also testified
that one party had shipped dressed hogs in cars of bulk
grain, and that railroad companies, through their agents,
connived at such underbilling, or evading classification,
but that if they did not, the shipper took his own risk,
and relied on chance for an immunity from detection. The
Board of Directors of your Merchants' Exchange, at a subsequent session, passed a resolution "that the matter of




80
underbilling freight be referred to the Bureau of Transportation to investigate and report to the Board."
In carrying out this resolution of the Board of Directors, and in investigating thoroughly and impartially a
momentous evil, your committee will recognize the fact that
time will be required to obtain, not merely in St. Louis, but
in other cities, the requisite data whereon to base a comprehensive and intelligent report, covering in its varied
aspects the question now submitted to the Transportation
Bureau; but it is believed by your officers, that notwithstanding many difficulties in the way of obtaining thoroughly accurate and reliable information, a satisfactory
investigation can be made, and the requisite machinery
for securing a full elucidation of the alleged complaints
will be immediately set in motion; meanwhile, and pending
the preparation of such special report, it is as well to place
on record the opinions of your executive committee on the
subject, as embodied in a letter addressed by the Transportation Bureau under instructions from the chairman of
your committee to Mr. George H. Morgan, Secretary of
the Exchange.
ST. Louis, April 11th, 1876.
GEO. H. MORGAN, ESQ.,
Secretary Merchants' Exchange.
DEAR SIR:-I am instructed by Mr. Michael McEnnis,
Chairman of the Executive Committee, to acknowledge
the receipt of certain papers and documents bearing on the
case of Mr. W. V. Carrington, accused before the Board
of your Exchange for underbilling freight to certain points
in the South and Southwest. These papers, as pertinent
to the preliminary examination of Mr. Carrington's case,




81
held by your Board on Saturday last, are valuable for
reference, and as indicating the wide spread character of
dishonest practices which have become engrafted on the
transaction of railroad business apparently in this section
of the country. It is the opinion of the Executive Committee that steps should be immediately taken by the
Board of Directors of the Merchants' Exchange to pass
resolutions condemning in the most unqualified manner the
continuance of dishonest practices, which are demoralizing
to the business interests of St. Louis, and reprobating at
the same time the course adopted by railroad companies
in conniving at such stupendous frauds as are shown to
exist. The executive committee have instructed the Transportation Bureau to make further examination into this
question of underbilling.
Yours truly,
ED'D VERNON,
Sup't of Bureau.
That the opinions expressed in the above letter will
strike a responsive chord in the minds of many to whom
the historic good fame and reputation of the St. Louis
merchants are traditionally dear, there can be no doubt;
and the officers of this Bureau will be more than compensated for the anxiety and labor naturally incidental to
clearing up such a tangled web of corruption and apparently self-satisfied dishonesty, if in aiding your committee
to place the business of this city on a basis of strict commercial integrity, they are instrumental in convincing the
transportation interests of St. Louis that in the introduction
and maintenance of well-advised and conservative reforms
they will receive the countenrance and unqualified support
of your honest merchants.
6




82
5i. THE NECESSITY FOR PROCURING ACCURATE STATISTICS
ABOUT THE TRAFFIC AND COMMERCE OF ST. LOUIS.
In carrying out the duties imposed on them, and exercising an intelligent and faithful supervision over the
transportation interests of this city, the officers of this
Bureau must deal with facts, which, although proverbially
stubborn things, are nevertheless the true foundation of all
wise and comprehensive action. The report published in
connection with the Merchants' Exchange, furnishes very
valuable information on certain specific details of your
commerce, and its compilation reflects deserved credit on
the system to which your secretary and treasurer has
devoted many years of labor and thought, but from such
statistical information it is impossible to arrive at any
knowledge of where your trade originates, whether its
increase is in a ratio corresponding with the growth and
general development of the country geographically tributary to your merchants, or whether a decrease, if any, is
attributable to undue advantages which other rival cities
possess over St. Louis, in so far as transportation is concerned. The value of such data as to the character of
traffic, and where it originates, cannot be over estimated,
inasmuch as they would be instrumental in enabling the
officers in charge of this Bureau to determine in what direction their energies could be best applied, either to mark
out new channels and avenues of trade or by appropriate
consultation with the officers of different railroads, obtain
a sensible reduction in the tariff on certain raw materials or
manufactured articles, which might increase in a marked




83
manner the trade of your city. Vague and indefinite statements are made to this Bureau in relation to trade with the
South; it is asserted that there has been a decrease of at
least 50 per cent., and the conclusion arrived at is that
Chicago, Cincinnati or Louisville are obtaining some unfair
advantages over your merchants, either by obtaining a lower
rate of freight, or by their being tacitly allowed to benefit by
some questionable practices which have unfortunately
become engrafted on competitive business. The accuracy
of such a general statement may be mentally questioned
by the officers of your Transportation Bureau, but they
have no means either for verifying or contradicting the
statement, and are compelled to confine their attention
exclusively to seeing that at any rate in so far as tariffs are
concerned, they do not discriminate against St. Louis. To
obviate such a state of things as exists, and to be correctly
informed both in the present and in the future where the
commerce of St. Louis originates, where it is shipped to, and
by what route, also how its character, generally and in
detail varies from year to year, it was determined after
consultation with the chairman, and other members of your
committee, to enter into negotiations with the various railroad companies interested in the trade of St. Louis, and
obtain their consent to furnishing in detail the information
necessary for carrying out the objects contemplated, it being
understood that the blanks necessary for compiling such
statistics, should in every case be provided at the expense
of this Bureau, and that the only expense entailed on the
railroad company should be the clerical labor necessary
to make the required abstracts.
It is satisfactory to state that on proper representation
of the facts to the railroad companies and the admission




84
by the Bureau that such returns were not asked for in
any inquisitorial spirit, nor for the purposes of general
publication, except, perhaps, at the end of a fiscal year,
the majority of the General Freight Agents acquiesced
willingly in the plan proposed for obtaining accurate statistics, and the requisite blanks, after being duly approved
in their form by the officer in charge of the freight department, have been printed and furnished to the Toledo,
Wabash and Western, Indianapolis and St. Louis, St.
Louis, Vandalia, Terre Haute and Indianapolis, St. Louis
and Cairo Short Line, St. Louis and Southeastern, and St.
Louis, Kansas City and Northern Railroad Companies.
The Chicago and Alton, Missouri Pacific and Ohio and
Mississippi Railway Companies have kindly signified their
concurrence with the views expressed by the officers of this
Bureau in relation to furnishing the required information,
and there is little doubt that scruples avowedly entertained
by the General Freight Agent of the St. Louis, Iron Mountain and Southern Railway Company can be removed by
reasonable explanations as to the general scope and character of the investigations to be prosecuted by this Bureau.
It cannot be denied that in carrying out the wishes of your
committee, as expressed through the Bureau, the railroad
companies will be subjected to some expenditure of labor
in working up the details from January 1st to the present
time, and the labor will be heavier on those lines whose
westward bound business is controlled by Dispatch companies, or Fast Freight Line organizations; but when once
the method of making these returns is systematized and
brought up to date, it is evident that nothing beyond
general accuracy will be requisite, so as to insure returns
which are not approoximately, but actually correct. The




compilation and classification of the statistics furnished by
the railroad companies will entail much detail labor on
this Bureau, but the position has been taken, that if a
thing is worth doing at all, it is worth doing well, so that
the important functions of the office which has been created
in connection with the Merchants' Exchange may be surely
though slowly realized, and its value to the commercial interests of your city gradually developed. That the requisite
accuracy has not been obtained in the past is evident from
an examination of the tonnage returns, and the statements
in detail of receipts and exports published in connection
with your annual reports. The aggregate tonnage returns
should approximate, at any rate, to the detailed statements
of articles receipted or exported, but it is clear that railroad
companies have not, up to the present time, appreciated
the importance of anything like accuracy in making
returns to the Merchants' Exchange, and it will be the aim
of the officers of this Bureau to remedy this evil, and to
place the statistics of your commerce, in so far as they
affect the Transportation department, on an accurate and
reliable basis.




86
6. THE MODIFICATION OF EXISTING LOCAL TARIFFS ON
ROADS DOING BUSINESS IN ST. Louis.
Among the instructions directly conveyed to the officers
of this Bureau was one to, the effect that examination
should be carefully made of the local tariffs in force on
railroad lines leading to St. Louis, and that a comparison
of such tariffs with those of railroads terminating at Chicago, Cincinnati and Louisville should be compiled, with
the view of determining, at any rate approximately,
whether the local tariffs of the St. Louis railroad lines
were so arranged as to attract business to your city, and
render the traffic of a certain section of country directly
tributary to the merchants of St. Louis.  The duties
embraced in carrying out literally the instructions of your
committee, are more difficult than would be imagined by
those who are not conversant to some extent with railroad
management, because intelligent action in such matters
involves an acquaintance with the resources and peculiarities of each particular railroad, and that is hard to acquire
at once, even by those who have made the science of railroading a study of years, and a subject of anxious thought
and labor. Special allusion is made to this point, because
in neighboring States much ill-feeling has been unfortunately engendered, and the value of railroad property has
been seriously depreciated by the attempt to prescribe
uniform tariffs for all railroads operated within such States,
regardless of their peculiar conditions and requirements.
It is held by the officers of this Bureau, and the opinion
will, it is hoped, be cordially endorsed by your committee,




87
that it is just as impossible to prescribe one tariff of rates,
applicable to all railroads, as it is to prescribe a medicine
which shall be a panacea for all the maladies to which mankind is subject. What is wanted, to speak technically, is
a correct diagnosis of each peculiar case, and to adapt the
remedy to the constitution and antecedents of each patient.
Hence, in the comparision of local rates prevalent on the
St. Louis railroads and the compilation of comparative
tables, attention has only been directed to the suggestion
that St. Louis, under ordinary circumstances, and with a
properly adjusted local tariff, should be the centre to which
the trade of a section of country lying within a certain
radius should naturally converge, and the question for the
consideration of this Bureau has been, not so much whether
the local tariffs of these roads were so drawn up as to
foster a healthy and permanent development of the country
which they traversed, as whether it were possible, by
modifications of the tariffs to East St. Louis and St. Louis,
respectively, to increase the volume of traffic converging
to your city, without, at the same time, prejudicing the
true interests of the railroad companies, which, if viewed
in a proper light, are identical with those of your citizens.
Wherever it has been evident that the local tariffs now
in force, actually discriminated against your merchants, no
hesitancy has been shown in laying the facts plainly before
your committee, and the portion of this report which has
been devoted to the discussion of the question of discrimination will indicate that a position has been taken which is
not unreasonable, and which it is thought must commend
itself to the thoughtful consideration of the railroad officers
interested therein; but there is, or rather should be, a decided
hesitancy about tinkering with local tariffs, and although




recommendations about certain modifications in rates to St.
Louis have been prepared for submission, and will be
submitted with your consent, at an early day to the
managers of the various railroad lines centering here, still
it would be decidedly premature in this report to foreshadow conclusions arrived at by this Bureau, and to
hazard in public, expressions of opinion on changes, the
inadvisability of which might on joint consultation and
conference, be clearly demonstrated by the general
managers or general superintendents of the different roads.
There is an old axiom, that "delays are dangerous;" but
changes are sometimes equally dangerous, especially when
they are attempted in direct violation of certain fixed principles of business economy; and true wisdom in inaugurating
and carrying on any scheme of conservative action such as
your committee has proposed, is indicated by close adhesion
to the old motto, " hasten slowly." The reasons which induce the officers of this Bureau not to enter at this time into
details of what they propose to carry out eventually, if the
propriety and feasibility of their plans are conceded by
the officers of the railroad companies, should recommend
themselves to the intelligence of your committee; meanwhile
the work which has been done in carrying out that portion
of your instructions which related to the compilation and
comparison of local tariffs, as well as the conclusions which
have been thoughtfully arrived at about modifications of
rates, and which are all in writing, are subject to the
careful inspection of your committee, and such inspection
will convince you that no attempt has been made to shirk
a difficulty or postpone, as is too frequently done, to a more
convenient season, the consideration, or it may be said
hereafter the just solution, of the most intricate problem in




the whole category of your instructions. Before concluding, however, this portion of their report, the officers in
charge of this Bureau would state explicitly the principles
which govern them in examining this question of local
tariffs. They are aware equally with yourselves, that
railroads, even in this State, which is so much behind hand
to other States, in railroad construction, have been practically the pioneers of civilization and development; that it
is through their agency, more perhaps than any other, the
comforts of your people have been increased and the general
prosperity of your State enhanced; they are aware that even
with the small railroad system of Missouri, large additions
have been made to the wealth of your State generally, and
of your city in particular, but they are also aware that out
of the fifteen railroads tributary to St. Louis, only one is
dividend paying, that five of the others are in the hands
of receivers, and that others are barely making sufficient
net earnings to pay interest on their bonded indebtedness;
they are also aware that in order to furnish safe, speedy
and commodious means of transportation, railroads must
or should enjoy a reasonable degree of prosperity for
themselves, but to this knowledge is superadded the
knowledge that in the majority of instances, these railroads,
through previous mismanagement and reckless negotiation
of their securities are capitalized at a much higher figure
than what the roads ACTUALLY cost, and that the industries
of your people and the commerce of your city are practically taxed to provide revenue sufficient to meet interest
charges on securities, which should properly never have
been a lien on the property; nay, further, the people along
the lines of these various railroads, are to all intents and
purposes furnishing the money to make the tracks and




90
equipment first-class in every particular, because these
high local tariffs would be entirely out of place had permanent improvements, now charged against revenue, been
originally defrayed out of capital-a capital, which, if it
ever existed, save in the fertile imagination of some unscrupulous speculators-has now been permanently and hopelessly dissipated. It may be that these railroads, which
are at present unremunerative to the holders of their
securities, but whose existence is so essentially necessary
to the commercial prosperity of your city, are slowly but
surely with your aid and patronage working out their own
salvation, and that the present managers, profiting by the
errors of their predecessors, may succeed in maintaining
their roads in good condition, and in introducing economies
which would eventually justify a reduction of the local
tariffs, both for freight and passengers, without prejudice to
the interests and equities of the proprietary; but in the
meantime common sense dictates that no changes should
be hazarded which would cripple their resources, and
prevent them from performing efficient service.
The real question for this Bureau, acting in connection
with your committee, and recommending certain modifications of existing local tariffs, or for the railroad managers
canvassing such recommendations, should be; are these
recommendations based on principles, which have heretofore and under almost similar circumstances, been productive
of remunerative results? If this question can be answered in
the affirmative, common sense would indicate their adoption and a fair, impartial trial; if in the negative, their
adoption would be suicidal, and your committee should be
the first to discountenance any change. The experience of
older countries has proved that a sound financial condi



91
tion can be coincident with low reasonable rates. Experience has also shown that traffic of every description is to
a greater or less extent elastic, and that it responds in a
marked manner to the facilities furnished for it, and that
a reduction of railroad charges within certain limits does
not necessarily involve any loss of net profits to the corporations making it; hence, in the opinion of the officers of
this Bureau, changes are not merely practicable, but
salutary in giving a fresh impetus to manufacturing and
agricultural industries directly, and to general trade indirectly; but these changes must not be fluctuating, they
must be permanent, and it is through firm faith in their
permanence that capital must be attracted from among
your own citizens, or from Europe, to develop the almost
unlimited resources of your State, and in the direct benefits resulting from which your commerce would so largely
participate.  It might be added, that in the opinion of
this Bureau, the low local tariff of the Toledo, Wabash
and Western Railway, has been by no means instrumental
in placing it in its present financial condition; that has
been brought about by other causes, which do not come
within the scope of this report. That low charges can exist
even on a Western railroad, and be consistent with
financial prosperity, is abundantly indicated by the record
of the Cincinnati, Hamilton and Dayton Railroad, whose
tariff is lower than that of any other railroad which has
been examined by this Bureau.




7. GENERAL SUGGESTIONS AS TO THE STEPS NECESSARY TO
BE TAKEN BY YOUR COMMITTEE TO INSURE A FULL
REALIZATION OF THE OBJECTS CONTEMPLATED IN
THE CREATION OF A TRANSPORTATION BUREAU.
While New York City boasts of its "Cheap Transportation Association," an organization composed of influential
citizens, who think that economy can always be co-existent
with efficiency, and, while there are in connection with
various Boards of Trade and Chambers of Commerce
throughout the country, special committees on Transportation, to whom are referred the discussion and consideration of all subjects cognate to railroad and shipping
interests; still, as has been stated in the commencement of
this report, the Merchants' Exchange of St. Louis, in its
corporate capacity, has been the first in the United States
to recognize the impossibility of obtaining, through a
committee of business gentlemen closely occupied in the
transaction of their ordinary business avocations, and unpaid for their services as members of such committee, that
continued and careful attention to transportation questions
which is demanded by the commerce of a city containing
nearly half a million of inhabitants. The action of your
merchants, in establishing a Bureau, with special salaried
officers to take exclusive charge and supervision of your
transportation interests, has naturally caused some criticism, in consequence of its novelty; and the attention of
other Exchanges and Boards of Trade, as well as that of
railroad officers throughout the country, is directed to a
careful observance of the principles which govern the




93
action of your officers, while they are carefully watching
to see whether the results of the operations of the Bureau
tend to reform existing and recognized abuses, and whether
the direct effects on the trade and commerce of your city
are such as to justify the annual expenditures which your
committee has incurred. The general principles on which
the officers in charge of this Transportation Bureau are -to
be governed, in so far as policy and certain minor details
are concerned, have been alluded to, and must, it is
thought, recommend themselves to the intelligence of your
Exchange as being eminently adapted to produce that harmony of feeling and action which should properly characterize all business relations between the transportation and shipping interests; but, in order that there may be that efficiency
in the management of this Bureau, which can alone insure
success and vindicate your prescience in effecting the organization, it is necessary that your officers should be invested
with something more than merely nominal authority, and
that, subject to consultation with the executive committee,
they should be directly empowered by the President and
Board of Directors of your Exchange to deal directly with
the presidents and general officers of railroad and steamboat
lines interested in the traffic of St. Louis; they should, in
other words, have secured to them through the instrumentality of your merchants such a standing as will insure for
the representations which they may make from time to
time on your behalf, a fair and impartial hearing, and
will stamp any negotiations which they may enter into for
the advancement of your commercial interests with a
recognized official authority. This Transportation Bureau
is supposed to be the mouthpiece of your merchants on all
questions affecting the trade and commerce of a large city,




94
and it is necessary that it should give no vague and uncerlain sound. It, in justice to yourselves, should only be
heard to be respected by the various interests with which
your merchants have business transactions. The circumstances of the case preclude the possibility of your officers
having any recognized legal status which would enable
them to enforce the adoption of any suggestions or regulations emanating from the Bureau; but they should be
officially accredited to the railroad commissioners of your
State, and to those of the neighboring State of Illinois,
and be enabled to utilize, through the instrumentality of
such commissioners, the legal influence which those officials
undoubtedly possess.  Your committee will doubtless
appreciate the force of these suggestions, and realize the
impossibility of your officers rendering you efficient
service, unless, by being so accredited, and by such official
recognition, they are ostensibly invested with the confidence of yourselves, and your associate members of the
Merchants' Exchange.
There are questions now unsettled, which, according to
the opinion of the officers in charge of this Bureau, have
an important bearing on the present and future status of
your commerce, more especially those relating to the transfer charges, and the opening of the rate at East St. Louis,
the correct regulation of rates from St. Louis to Kansas
City, and other western and southwestern points, as compared with those from  Chicago, and the settlement of
west-bound rates from the Atlantic sea-board, on the same
pro-rata mileage basis which is supposed to govern the
tariff on east-bound rates; but settlement of these and
kindred questions, in which the managers of Eastern
railroads are interested, involves the necessity of proper




95
authority to treat and act in behalf of your merchants,
and of your Bureau becoming equally administrative and
statistical; it involves the recognition of the officers connected with this department, at all conventions held on
questions relating to the transportation interests of St.
Louis, as assessors in an advisory capacity. If these suggestions are carried out by your committee, after suitable
representations have been made to the Board of Directors
of the Merchants' Exchange, you will have obtained a
gratifying recognition in practice, not in theory, that the
interests of the transportation lines and the general public
are identical, and you will indicate that in managing the
various avenues and arteries of traffic on sound business
principles, the presidents and other executive officers may
anticipate your cordial and unqualified support.
Before concluding this report, it is right to state that the
Superintendent and Assistant Superintendent of this Bureau
have, since their election to office, received from railroad
officers and others, with whom they have been brought in
business contact, uniform courtesy and consideration; and
it is believed that a more thorough comprehension of the
principles which govern your policy in the management of
this department will tend to perpetuate those friendly relations which-will strengthen the hands of your officers, and
be a guarantee of the permanent success of the organization
which you have established.
Respectfully submitted,
EDWARD VERNON,
Superintendent of Bureau.