RELATION OF XATIO'AL GOTERXMENT TO DOMESTIC COMMERCE SPEECH OF HON. GEORGE F. HOAR IN THE SENATE OF THE UNITED STATES, Tuesday, July 1, 1884. WASHINGTON. 1 e 4 . Avery Architectural and Fine Arts Library Gift of Seymour B. Durst Old York Library SPEECH OF HON. GEOEGE F. HOAE. The Senate, as in Committee of the Whole, having under consideration the bill y, the winter average being HA per cent, higher than the summer average, when the compe- tition of water transport was in full force. It may be supposed that the increase in tbe rail rates during the winter months is caused by the increased cost of transport during that season of the year, but this is true only to a very limited extent. The chief cause is the absence of competition by lake and canal. This is evident from the fact that although the cost of transportation by rail is not greater in October and November than in June and July, yet the average of the rates during the former months is HA per cent, higher than the average of the rates during the latter months. The pressure of traffic during the months of October and November, when the facilities for transport by water are limited, in connection with the fact that the Erie Canal is at that time taxed to its utmost capacity, causes an advance in the rates on the lake and on the canal, and the rail rates at once go up to about the average for the winter months. It appears that in this case the increased charges by rail are due solely to the increase in the rates on the lake and on the canal. This fact was clearly stated before the committee by Mr. J. M. Walker, president of the Chicago, Burlington and Quincy Railway (evidence, page 266), a road which does not compete with any water line. Mr. Walker states that the winter and summer rates are the same on his road, and he thinks that " this is the rule with the Western roads generally." He states, also, that he believes that those roads which run in competition with transport on the Mississippi River makes such changes in their freight taritt's. It is generally true that the roads which increase their rates during the winter months are those which run in competition with the water lines during the sum- mer months, and it is quite probable, therefore, that but for such water competi- tion the winter rates would be maintained throughout the year. Mr. Franklin Edson, the president of the New York Produce Ex- - change, declares in a letter to Mr. Windom: The water lines may be so improved that during seven and one-half months of the year the time of transit from Chicago and Milwaukee to New York need not be more than ten to eleven days, at a cost of about S3 to ^i.oO per ton, in- cluding all charges, and quantity always guaranteed. The said charge in sum- mer from Chicago to New York can not be less than S8 per ton to pay actual expenses and no dividends, and in order to pay dividends there has to be an advance of about $4 per ton in the railway freight charges, which advance is uniformly made every year on the close of the water lines by frost. (Windom, App.,176). A striking exhibition of the effect of water competition in reducing rail freight charges is given to the Senate committee by Mr. Utley, president of the Illinois and Michigan Canal: The freight charges on the Chicago, Rock Island and Pacific Railroad is only 8 cents per hundred pounds from Henry to Chicago, between which points there is water competition, while the route from Tiskilwa, only twelve miles farther west than Henry and beyond the eflfect of canal competition, is 15 cents per hun- dred pounds, or nearly as much for twelve miles as for one hundred miles. This is but one of hundreds, probably thousands, of instances no less remarkable. The cost of the freight of a bale of cotton from New York to Cold Brook, in the county w^here I dwell, one hundred and eighty-four miles, was, at a recent date, .28 per hundred pounds. The charge for the same bale of cotton transported by all rail from Savannah to New York, a thousand miles, was at the same period a trifle less. This is because of the competing water line. Every dollar expended in the improvement of the harbor at Savannah cheapens the cotton to the manufacturer in the interior of Massachusetts. I annex some tables showing the constant reduction of freights and the comparative cost of freights by water and by rail. 22 III d d d d d d d d d d d d d d d d d d d d d d d d d d >^ ^- ^- ^ d d ^ -4 ^ -4 d d d d d d d d d d d d d C.i^-^^^^ci«MMr-;^-^-r^P^^^^-r^d^ddddd 1 i w 2 ^.-Hr-Jddr-Ir-idddr-t-H^-^^'-idi-idoddddddddd II III 1 11 il£lsisEiilssiiiil§BSiiiggiSI 1 (N M d ^* r-i rH- : !): On the 7,069 miles of French canals, acconling to the report of M. Krantz, the transports amounted in 1874 to 2,132,957.000 imit« of traffic or kilometric tons. This is equal to 126,(KK) tons per mile. In 1868, according to the Etude hiatorique i t stntiqur *ur Voie^ de wmmunication df la France, par M. Felix Lv/- (XJ«, published in 1873, the navigation dues produced 3,503,000 francs for 1.690,- tlOO.OOO kilometric tons. This charge, which may be taken to cover cost of maintenance and interest of money on the canals, is equivalent to 0.0325d. per ton per mile. In 1847, under the regime of the old tariff, the dues amounted to 9,931,000 francs for 1,198,000,000 tons kilometric. Since 1847, therefore, by comparing the two reports, it would seem that the French canal dues have been reduced by three-fourths, and that the canal traffic has nearly doubled. The chief disjidvantage of the minute statistics of which the French are justly proud is the long time that generally elapses before their outcome is thoroughly known. The date to which the figures of M. Krantz apply is not stated in his report. But there can be no doubt that the actual movement on the French canals is very much greater than the average above cited. * * • Without wearying our readers with any further arithmetical detail, we may say that the closest calculation of the cost price of conveyance on the railways of the United Kingdom which has been found hitherto practicable gives for the year 1878 the cost of a little more than one-fifth of a penny (0,2076f?.) per mile for every ton of loaded train. This price compares favorably with the cor- responding item, where it has elsewhere been definitively ascertained. It is al- most exactly that of the working of the ancien resean of the Orleans Railway in 1872, and, as a rule, is intermediate between the cost of continental lines and those of the East Indian and Pennsylvania railways. At this price, supposing all the wagons to be full and the traffic to be conducted on the most favorable conditions, the cost of conveying a ton of coal amounts to an average of 0.472fZ. per mile, allowing for the return of the empty wagons. This, however, is for the tabulated working expenses alone. If we take them as equal to 52 per cent, of revenue, as was the case in 1879, it will require the price of 0.908 gill i IIII ifii i S 15 ??8|S Is ^ 3 u ---r i"- 1 i 3 1 1 i M oo : ' i SSI © o \ mm j j M IC i g iiii ii i i is :§ i M I''' i 1 i Ii o : • : is i : CI g g ■ g : jo : : c : : :0 : : iii iillii \ iii igr^i i 1 1 i i i isii i ii ii iiig 00 j ico ig i i i i ii i i i'M iiii ; i i (1- IJ J| Ml If il i flli M m p ^ llifii, 36 There is a smaller commerce in brick, lime, hay, clay, shells, wood, boats, cem- ent, and similar coastwise traflSc. Wareham is the nearest port to Sandwich and to the inland towns of Middle- borouj^h, Bridgewater, and Brockton, the commerce and manufactures of each of which equal those of Wareham. The railroad wharves of Wareham have direct railway connection wi^i thet^e and other tributary towns, but inadequate navijifation facilities in Wareham Harbor oblige these towns to receive their water-borne supplies via Fairhaven and Sotnerset. The total tonnage of vessels hailing from Wareham is 6,002 tons, so far as known. The commerce of the port is not, however, canned in these, but more generally is transported by water in other vessels of the United States. The yearly arrivals and departures at this port compri.se, together, alx)ut three hundred and tifty sailing vessels and also occasional steamers, and nu- merous small craft. The supplies for the iron mills are brought in schooners of 350 to 600 tons burden, manufacturers considering it profitable to employ larger vessels than formerly in freighting cargoes of coal and iron. The wharves in Wareham Harbor are rendered difficult of approach for such vessels by reason of bars in the tortuous channel. The nature of the above-mentioned industries of this town is such that its railway traffic is dependent upon the facilities for navigation. It is hard to see by what procass of reasoning the propriety of the ap- propriation for Wood's Holl can be seriously called in question. The small expenditure would be abundantly warrantetl by the demand for a harbor of refuge and a port for the revenue-cutters which are con- stantly needed for aid to the vessels which pass in our harbors over the foggy and dangerous navigation of the neighboring Nantucket Shoals. But it is demanded also to construct a basin and harbor for the United States Fish Commission, whose interesting work seems destined to create an abundant food supply for uncounted millions in the near future. Mr. President, there are few objects of expenditure which do not perish with the using. There are fewer still which survive the generation which has created them. A few works of art; a few temples and pub- lic buildings; a few dwel' Jigs, kept for curiosity rather than occupa- tion; a few great libraries are all of the possessions of our day which will survive a hundred years. The money you have appropriated for the Army, the Na%y, the Post-Oflice, the courts, for the cost of legisla- tion, for the diplomatic service, for pensions, will leave no trace behind when the year in which it has been expended shall have passed. But the works which this bill authorizes will remain, making their annual and perpetual returns, instruments of commerce, of unien, and of peace, so long as the waves run to the sea and the sea beats upon the shore. O