LOW TOLLS -A.KriD STEAMU1IlME%ERIE CANAL THE BELGIAN SYSTEM OF STEAM CABLE TOWAGE. AS OPERATED 15 Y THE NEW YORK STEAM CABLE TOWING CO. V OFFICE : 40 BI-o£*,dSt3^, I=Looxia. IS, NEW ÏORK. 1877. KDGAR HOYT, PBINTER, 58 MAIDEN LANE, New Yoek, Maech, 1877. This pamphlet is for the purpose of presenting to the Legislature of the State of New York, iu a concise and convincing form, selected material of recent publication, relating to the Erie Canal, Low Tolls, and the successful application of steam to the canal in practical and satisfactory substitution of animal power. The large and valuable interests of the people of this State, as affected by, or invested in their great transportation route, are not only imperiled, but, unless protected by their representatives in the Legislature now assembled at Albany, by heroic and radical enact¬ ment of j ust laws, will be utterly ruined by the powerful competitive means, systematically used for that purpose, by the great Eailroad Corporations. The Erie Canal should be placed on equal ground of competition with railroads, and even though successful, should not experience the great disadvantage of being legally compelled to contribute one- third of its gross freight earnings to the State revenues. It is enough to be compelled to stand extortionate terminal expenses, and the;great advantages the railroads enjoy through individual management and enormous combinations of capital. The canals should be free to the use of all, and the slight expense of main¬ tenance after all present cost of collecting revenues is abolished, should be assumed by the people of this "State, every one of whom will be largely benefited by a free canal. To this end a Constitutional Amendment shouldite passed by the present Legislatui-e, in the interest of their constituents, and; although it could not become a law until voted upon two years^ hence by the people, its present passage would be an end to the efforts of railroads to destroy the usefulness of the people's free transportation route. In the meantime, and while a Constitutional Amendment passed as above is inoperative, let the Legislature reduce the tolls fifty per cent, in protection of the interests of many thousands of voters in this State whose whole property is in the boats doing the business of giving cheap food to the world, and whose interests should be conserved, as stockholders are in great railroad corporations. It is a most fortunate thing that when canal interests occupy so extensively the public attention and solicitude, that steam on the canals is, after many years of seeking, and of almost innumerable failures involving great loss of money, in perfect application to the Erie Canal. Any one reading the authoritative, influential and trustworthy endorsements in this pamphlet will agree with the announcement now for the first time made that by means of the Belgian system of towing, steam is practically, economically and satisfactorily applied to the Erie Canal, in substitution for animal power, and while greatly increasing speed, reduces the expense. Steam thus applied to canals or water routes, is in cheaper form than as used by railroads, and combined with competent individual management makes the Erie Canal safe from the effects of railroad competition though conducted under recent ruinous conditions. Further State aid to untried plans or inventions for applying steam to the canal is unnecessary, as canal boat owners are satisfied with the Belgian system, after having witnessed and tested it. They see it requires no change in their boats, and does not obstruct the passage of boats belonging to canal men not using it. They pass a tow line to a cable tow boat as to a horse on the tow-path. It combines every advantage of a steam canal boat, or of any so called traction system. In fact the flexible cable is a form of traction, with the great advantage of affording a direct instead of an angular pull. But steam on the canal must not only meet every requirement of the canal, but must be of a form to successfully compete with the railroads. Hence the superiority of the Belgian system over all other systems, plans or inventions. As recommended by the Joint Conference Committee of the New York Commercial Associations the financial aid is only necessary to secure the immediate benefit of steam in the canal by means of the Belgian system. The New York Steam Cable Towing Company relies on individ¬ ual, not State aid, for the money to procure equipment adequate to the wants of existing business in the canal. If the Legislature and State Officers, combining their efforts with the citizens of the great cities of this State will energetically and seriously consider the wants of the people as connected with the Erie Canal, and secure at once the proposed assistance, by enacting the proper laws, the Erie Canal "with economical management and the introduction of the Belgian system, might again become a powerful regulator of the rates of transportation over a large portion of the year." EMERSON FÜGTE. lOT TOUS 0« THE CAHLS. On "Wednesday, 28th February 1877, representatives oí the New York Cheap Transportation Association, the New York Produce Exchange and Poat Owners Association had a hearing before the State Canal Board, to advocate a reduction of tolls. Mr. A. B. Miller of New York City during his able argument in favor of lower tolls, said : 1. The canal has been the agency whereby our State has become the Empire State, and New York city the commercial metropolis of the western hemisphere. 2. The canal is the property of the State, never can become a monopoly, and stands in the interest of cheap transportation as a bulwark against excessive and extortionate charges on the part of combined railway corporations. 3. Cheap transportation has become the principal factor in the prosperity of our country, and without the wholesome restraint imposed upon the railway corporations through the means of God's highways of commerce, the great lakes, and the Hudson Eiver, supplemented by the Erie Ca nal, it would be in the power of the railway corporations of the trunk lines to the West to deprive the toiling millions of the benefits that should rightly inure to them .by dictating value to the producers and prices to the consumers throughout our entire country. 4. The Erie Canal has not only to contend with the fierce op¬ position of the grasping railway corporations, but with the greater danger that threatens to divert from our State and city the com¬ merce of the great lakes—the enlarged Welland Canal, which, in its completed condition, passing the largest vessels, is to be opened for commerce this year. 6 5. The canal has the capacity to deliver at tide water, in the average season of 210 days, the enormous amount 18,000,000 tons of produce. This amount of business may never be done, but with improved methods of propulsion, the canal is capable of doing it ; and in order to illustrate forcibly the magnitude of the business, it will be only necessary to say that if all was exported, twenty steamers of 3,000 tons freight capacity each would be needed daily for 800 day in tiie year. ^ The present departure of European steamers from New York is only about twenty per week. It is safe to say that the people are not yet prepared to abandon so useful and important a means of transportation. 6. The canal is no longer in the position which it formerly occu¬ pied, when tolls could be placed at almost any rates desired, being then almost the sole means of transportation to the seaboard from the "West; therefore, if any revenue is expected to be raised from it, the tolls necessarily must be placed at a rate that will permit com¬ petition with railways and the Welland Canal. Any rate of toll that prevents that, will, practically close the Erie Canal, lose for us the entire commerce of the great lakes and deprive our citizens of the only protection they possess against railway monopolies ; for it must be borne in mind that if the present boat owners abandon the business, fresh capital will never be obtained to again stock the canal. 7. The capital invested in boats and animals for navigating the Erie Canal amounts to no less than $22,000,000, and is the sole and only means of support of thousands of our citizens, and they have a right to expect that the State, that owes so much of her pros¬ perity and wealth to their labors, shall aid them to the utmost stretch of its ability in maintaining the continued use of the canal,, particularly at this juncture, when efforts are being made to intro¬ duce successful steam towage for all boats in their existing con¬ dition. 8. The rival Atlantic seaboard cities are now engaged in a con¬ test with New York for commercial supremacy, and have been for the past few years diverting much of the trade that has been hitherto tributary to her ; and there is no reason to doubt that with the Erie Canal fettered with high tolls, and thereby practically useless. New York would no longer be able to maintain her commercial suprem¬ acy ; and with the decay of the Empire city, depression in business and decline .in values of real estate would take place throughout the State. 7 Extract from Report for 1876, of Hon. G. W. Schuyler, Auditor of the Canal Department of the State of New York. '' Much has been written by my predecessors, in their reports, on the subject of steam as a motor on our canals. In compliance with suggestions emanating from this department, the Legislature, by act, chapter 868 of the Laws of 1871, sought to stimulate the inventive genius of the country by inviting and rewarding the practical and profitable introduction upon the canals of steam, caloric, electricity, or any motor other than animal power, for the propulsion of boats. No promise was made in said act to accept or reward any invention or device, no matter how meritorious, unless it could readily he adapted to the present canal hoats, and the motor, whatever it might he, was placed within or upon the hoat employing it. All systems of towage were excluded from participation in the act. The device sought was for propulsion. Each boat entered for competition was required to have within itself its power of locomotion, under such control that it could easily be stopped or backed by the use and power of its own machinery. Under the stimulus of the act mechanical devices were placed in boats then in use, and which had previously been towed by animal power, but all such attempts failed in the requisite degree of speed and economy. New boats were also constructed after models especially designed for steam propulsion, and while it was claimed that some of them performed well, making the requisite speed, and carrying the amount of cargo required, which was 200 tons, they were unable to compete with horse-boats carrying forty to fifty tons more of cargo, and consequently proved failures financially. Even if they had been successful, the device was not such as was required under the act, because it could not he applied successfully to the present canal hoats. Notwithstanding these boats, under a special act, received a large appropriation from the State, none of them have heen employed, to the Auditor's knowledge, since the year their owners received the, bounty from the State. The attempt to introduce steam as a motor on each boat, or as a means of propelling freight boats, has virtually been abandoned, and probably no farther efforts in that direction will again be made, with any hope of financial success, unless some radical change is made in the dimensions of the locks. The Belgian system of cable towing has been in operation during 8 the past season between Buffalo and Middleport, employing two tugs, for the purpose of demonstrating its perfect adaptability to the present canal, and to invite the co-operation of capitalists to aid in extending it. By this system it is claimed that boats have been drawn in trains of seven to ten boats, at three times the speed of boats towed by horses, and at much less cost. All accounts seem to agree that this system, if extended through the entire length of the Erie canal, would be able to tow all the boats navigating it, and at double tbe rate of speed now attained. Besides reducing the time for trips one-half, it is also claimed the daily expenses of the boats thus towed could be materially reduced from present cost, because one-half the crew now employed could with safety be dispensed with. If all that is claimed for this system be true, it would seem strange, indeed, if the requisite amount of capital cannot be obtained to place it in full and successful operation on the Erie canal at an early day. The pride of the State should not rest satisfied until the tonnage of the Erie canal is moved by some other motor than the wretched system now employed. As for fifty years, the poor, jaded, ill used horse still plods his weary way on our tow-paths. At first his work was light. From two to three horses were employed in towing well-proportioned boats, of light draft, with cargoes not exceeding thirty tons; but now, two horses are compelled to drag box-shapen craft, drawing six feet of water, and laden with cargoes of 250 tons ; and people wonder why the time required to make trips from Buffalo to tide¬ water has been increased from six to eleven days. The great obstacle to the successful application of steam to the propulsion of boats appears to be this : The present boats towed by animal power are constructed as lightly as possible, and as large as the chambers of the locks will permit, so that their water displace¬ ment is nearly equal to the full dimensions of the locks. There is no regulation which limits the dimensions of the boat, or prescribes the form, except that the bow is required to be of an elliptical or semi-circular shape, the versed sine of which shall not be less than one-fourth of the chord. Such boats will carry 250 tons in six feet of water. The application of steam power as a means of propelling such a craft is totally impracticable. Boats designed for successful propulsion by steam must be of symmetrical form, with sharp bows and sterns, and when thus con- 9 structed rarely exceed 200 tons carrying capacity. In order to carry even 200 tons, they are too light to be durable. This disparity in cargoes gives the horse-ioats too great an advantage over the steamers^ and when freights are transported at a moderate profit by the former, the latter can only run at a loss. After thirty years or more of experiments, these facts appear to have been established : The propelling of canal l>oats hy steam power hy the aid of machinetp placed within them is impracticdble, because unremuner- ■ative when brought i/nto competition with larger boats, or boats carrying larger cargoes. That train towage by steam is practicable, and that the Belgian cystem is pronounced the safest, the most economical, and the least objectionable method yet devised / and while some portion of the time gained by the increased speed may be lost at the lochs, the net gañn would still be greatly in its favor, and far in advance of the present system of animal towage. The Effects of Kaileoad competmon oh the Eevenues and Tonnage of the Canals. This loss of tonnage (on the canal) is attributed to the fact that the two main railway companies of this State have been transport¬ ing freight at rates which made it impossible for a large portion of canal carriers to run their boats. From the second week in June to the second week in October, 1876, the railroads carried wheat from Buffalo to New York at an average of six cents per bushel, which was below the actual cost by the average of canal boats, and about one-half the actual cost by rail, as appears by the sworn returns of the New York Central and Hudson Hiver Railroad Company for the fiscal year ending 30th September, 1875, and on file in the office of the State Engineer and Surveyor. This ruinous competition with the water route was not confined to Buffalo, but rates of freight were equally depressed at the princH pal shipping points at the west, the tendency of which was to lessen shipments by lake, and to increase through shipments by rail. The pending campaign against the water route is unquestion¬ ably causing great loss to the roads. Of this fact we only know what the officers of the roads choose to make public. For the fiscal jear ending September 30, 1869, the year preceding the reduction in canal tolls, the gross earnings of the New York Central and 10 Hudson Hiver Kailroad Company exceeded the payments, other than for construction, $1,137,767.65. From 1870 to 1874, both years included, the average annual surplus was only $80,413.00 and for 1875, the payments, other than for construction, exceeded the gross earnings, $1,581,654.29. But, if the effect of this competition shall be to destroy the canals,, and the lake interests as well, the roads will have abundant oppor¬ tunities, in the future, to make good all their losses and reap' substantial gains. This conspiracy of the railroads, although, for the time being, productive of cheap and unremunerative rates of transportation,, causes no diversions from the trade of rival States,-aud threatens the improverishment of thousands of individuals, by rendering worthless the vast eqiripments of lakes and canals. It is asserted that, and undoubtedly in truth, within the last three years, New York's proportions of the whole grain trade has fallen twelve per cent. ■ We know that the canals have lost heavily in tonnage, and the railroads have gained in a corresponding degree. The evidence is conclusive that the gains of the railroads are simply diversions from the canals. The State of New York made valuable concessions to the various roads, which now form its main trunk line, to which they were not entitled under their original charters. If these concessions are being abused, and are likely to prove the destruction of our canal system and the source of onerous taxes, public policy and the public interest would seem to justify their revocation. The Auditor, with this brief recital, submits the subject to the earnest consideration of the Legislature, fully impressed that its importance demands immediate attention and the most searching investigation. He believes that our canals have reached the darkest period of their existence, and that a crisis is impending which will require great sagacity and fearless legislation to extricate them from their peril." 11 At the Convention oe Canal Boat Owners and Builders, held at Syracuse, January 10th, 1877, the following Resolution WAS PASSED : " Resolved ; That, in conjunction with the State Auditor of Canals, we approve the use of the Belgian Cable Tow¬ ing System, as the most practicable use of steam yet demonstrated for general introduction upon the entire length of the canal, and pledge to it our encouragement and support." A certificate was also prepared and signed by canalmen, repre¬ senting $1,200,000 of canal-boat property, among whom where such leading men as the Hon. Henry L. Fish, chairman of the conven¬ tion ; Eldredge Heath of Rochester ; J. S. Brown, president Boat- owners'Association, New York; TVilliam Fosbinder of Ithaca,— in which they recommend the Belgian system as " the most practical and economical of any system yet demonstrated upon the Erie Canal, being of easy and of practical substitution for animal power, and costing less," promising their patronage and support, and com¬ mending it to tlie carrying trade of the canal, when it is equipped with the machinery to do existing business. The New York Cheap Transportation Association adopted the report of its able special committee, consisting of Messrs. A. B. Miller, Theodore F. Lees, and J. Burrows Hyde, C. E., who wit¬ nessed the towing by this Belgian system last November upon the canal at Buffalo, and stated it to be " the most direct, economical and expeditious system that has yet been devised for that purpose and practically demonstrated," and invited the co-operation of the Chamber of Commerce, Produce Exchange and other commercial bodies in devising the best means for securing the benefits arising from the general use of the Belgian system upon the Erie canal. \ 12 At a Mass Meeting of Canal Men and Boat Owners, held at Cooper Institute, in New York Citt, on Wednesday Evening, February 7th, 1877, the following Kesolution was unani¬ mously carried ; Whereas a practicable application of steam, immediately available as a means of propulsion on the Erie Canal, costing less than animal power and insuring increased speed, requiring no legislation, no alteration in the present structure of the canals or canal boats, and requiring no further proof of adaptability than already furnished by actual operation, is a matter of paramount importance and necessary to a perfect realization of the benefits to be derived from the reduc¬ tion of abolition of toll, therefore. Resolved, That we heartily indorse the recent report of the New York Canal Transportation Association upon the Belgian system of «team towing as being the most direct, economical and expeditious system yet devised for that purpose, and practically demonstrated : also the resolution adopted by the Convention of Canal Boat Owners and Builders, held at Syracuse, January 10th, 1877, as follows:— Resolved, That in conjunction with State Auditor of Canals we approve the use of the Belgian as the most practicable use of steam yet demonstrated for general introduction upon the Erie Canal, and recommend its introduction upon the entire length oí the canal and pledge our encouragement and support. JOHN S. BROWN, H. E. PRESTON, WILLIAM 0. CLARK, EEPOET OF OOITFEEEK"OE COMMITTEE OP THE Chamber of Commerce—Produce Exchange—Importers and Grocers Board of Trade—Maritime Exchange and Cheap Transportation Association of the City of New York ON THE BELGIAN CABLE TOWING SYSTEM. The following report from the Commercial Conference relative to the Belgian Cahle-Towing System was made on Monday, March 5th, 1877. The Conference recommends the adoption of this system as the cheapest and most practicable of all the systems or inventions pro¬ posed, as it requires no alteration in the canal or the boats, and in¬ creases the speed to three miles the hour, at less than the present cost of animal power. n. E] O 1=1. T . The Conference Committees of the New York Chamber of Com¬ merce, the Produce Exchange, the Importers and Grocers' Board oí Trade, and the Maritime Exchange, appointed to confer with a committee of the New York Cheap Transportation Association as to the best means to be adopted to secure the Belgian cable-system of towing lor our canals, have submitted the following statement and recommendation as the result of their deliberations : The constant rapid diversion to rival Atlantic cities of the busi¬ ness of the Western States that has hitherto been tributary to us, has resulted in arousing our citizens to the necessity of taking such measures as are calculated not only to retrieve that which has been lost, but if possible, to place our city beyond the reach of successful competition. There is not, in our opinion, upon the face of the globe a city that can favorably compare with New York in regard to natural advantages, and when she supplemented them with the Erie canal, connecting the great inland seas of the interior with the Atlantic ocean, she at once eclipsed and distanced in the race for commercial supremacy all competitors ; but the introduction oí rail¬ ways, with the great improvements that have been made in their construction, motive power, and rolling stock, together with the su¬ perior enterprise of neighboring cities in providing terminal facili¬ ties for handling freight more cheaply and expeditiously, have had 14 the effect of overcoming our superior natural advantages, even with the aid of the Erie canal, with its existing tedious and expensive method of propulsion by animal power. This brings us to the sub¬ ject before the conference : " The best means to be adopted to se¬ cure the cable system of towing for our canals." The Erie canal being recognized as having been the chief means of the develop¬ ment of our State and city, and realizing the great importance of its maintenance as being entirely tributary to our city, thereby differ¬ ing from railways, the New York Cheap Transportation Association has made the subject of the canals a matter of careful investigation, and, as far as possible, of practicable demonstration, particularly in the most important factor relating thereto, viz : A method of cheap and rapid towing by steam of the more than 5,000 boats now navi¬ gating the canals, without involving any change in the boats or the least obstruction to the canal, as well as a system that could be put in complete operation throughout the entire length of the canal wdthin the present year, thereby practically doubling the present tonnage and capacity of the canal. After a full and complete ex¬ amination of various methods, a detailed report of which was pub¬ lished, the conclusion was reached that the Belgian cable system met all the necessary requirements, viz : The speed of boats will be increased from IJ miles an hour, the present rate, to at least 3 miles an hour, including lockages, at less cost for towing than if animal power was employed ; reducing the number of hands required, util¬ izing the canal and boats in their present condition, also permitting six boats of 250 tons each to be towed in train, thus practically in¬ creasing the capacity of the canal to that of passing single boats of 1,500 tons each, with the advantage of reaching New York with boats of the proper form and size for speedy delivery of cargo in quantities as wanted, and capable of being placed along side of ships in narrow or crowded slips where larger vessels could not be ac¬ commodated for want of space. It has been demonstrated that the cable method of towage will enable a higher rate of speed than three miles an hour to be attained ; but assuming that to be the maximum, it will he readily perceived that the Erie Canal, which has been able to maintain itself thus far without any improvement in motor or boats since its conception will, with the aid of cable steam tow¬ age, be able to transport freight at rates so low as to prevent its diversion to other channels. This Belgian system of towing be¬ comes doubly important in view of the fact that the canal has to contend not onlv with the railways, but the "W elland Canal, with the 15 ■enlargement completed this year, permitting the passage'of the largest class of vessels navigating the lakes, threatening to divert from us the commerce of the lakes. It is the opinion of this Con¬ ference that our city has reached a stage when she can no longer rely mainly upon her natural advantages for her prosperity, and that her future welfare must to a large degree depend upon the wisdom and the enterprise of her citizens in aiding and promoting without delay such improvements as from time to time may be needed to secure cheap transportation, terminal facilities and all other needful matters pertaining to the interests of the commerce. Therefore, as the Erie Canal without steam towage will be unable to compete successfully for the commerce which is essential to the prosperity of our State and city, and as the canal, being public prop¬ erty, can never become a monopoly, thereby insuring our citizens for at least seven months in each year from the very high rates fre¬ quently charged by railway corporations, this conference invites the attention of capitalists, real estate owners and citizens generally to the necessity of lending their aid to the establishment of the Belgian eable system of towing on the Erie Canal. The Conference, upon inquiry of the New York Steam Cable Towing Co., which hold a charter from the State for the exclusive use of the Belgian system on the canals for fifty years, with thirty-two miles in successful op¬ eration, were informed that with a subscription amounting to $800,000 to their first mortgage gold bonds, principal payable in ten years, bearing six per cent, interest, payable in gold, and participat¬ ing in the profits of the Company to the extent of six per cent ad¬ ditional, they can have the Belgian cable towing system in full operation on the Erie Canal during the present year. Their esti¬ mate of earnings and expenses, based upon the business of the canal for the season of 1876, shows they will be able to pay their interest promptly, and through the accumulations of the sinking fund to provide for the bonds at their maturity. M. M. CALEB, Secbetaey. Hon. F. A. CONKLING, Chaieman.