two seasons, notwithstanding they have reduced expenses to the lowest possible point. They find that the terminal charges of New York are excessive, and that for discharging grain at that port canal boats should only pay 4 of one cent per bushel as her proportion for elevating. It is also claimed that the charge of one-half of one cent per bushel to boat for elevating grain is the highest proportionate charge to transportation between Chicago and Europe, and that there is now no other existing charge so burdensome to boat owners and cheap transportation. We also find that the many transfers of grain-and attendant expenses in shipping from Chicago via lake and canal to New York operates against us, and in favor of railroads, just the amount of the cost of the several transfers. They are now, on an average, 34 of one cent per bushel at Buffalo (for elevating, commission and insurance), and at New York a fair average would be 1% cents per bushel (for elevation, weighing, commission and insurance), a total of 24 cents per bushel.

The New York Central road now owns two elevators at Buffalo, and are negotiating for a third. They own two elevators in New York, and other terminal facilities, and in a short time other railroads having termini in New York will also have their own elevators, and can handle grain, including a transfer at Buffalo from vessels to cars and from cars in New York into steamers, at a total cost for transfers of not to exceed 3% of one cent per bushel, while for a similar service the lake and canal route is taxed 24 cents per bushel; then add to this 1 cent per bushel for tolls on the canal-making 34 cents less; deduct % of one cent per bushel cost of transfer by rail route-will leave 2 cents per bushel tax upon the water route; and from this, gentlemen, you can draw your own conclusions, and decide whether you will let the business slip through your hands and lose commissions and profits from elevating the grain yourselves; or will you not rather reduce your prices for elevating, and by so doing cheapen transportation and make it an object for shippers to patronize the water route?

Much more can be said, especially as to large amounts of grain having gone by railroad last season, which the canal would have carried could they have reduced the price of freight 4 of one cent per bushel. Respectfully yours,

S. E. ANTHONY,

Secretary.

RESOLUTIONS.

At an adjourned meeting of the Buffalo Board of Canal Forwarders, held at the office of Lotheridge, Gallagher & Co., yesterday morning, the following preamble and resolutions, as presented by the committee, were unanimously adopted:

Whereas, In view of the near approach of canal navigation, and the great efforts continually being put forth by rival routes to divert busi

ness from the Erie Canal, it is important that the Buffalo Board of Forwarders should take into consideration adequate means to protect their interests, and to adopt the best method for cheapening transportation via canal and connecting water routes; and

Whereas, The Buffalo elevators charge vessels a uniform rate of one-eighth of one cent per bushel for elevating grain, while the New York elevators charge canal boats one-half of one cent per bushel for elevating; and

Whereas, Such elevation charge to boats, of one-half of one cent per bushel for discharging cargoes in New York, is a much larger proportion of the whole cost of elevation than is charged for a like service at any other grain-receiving port, and thereby imposing a burdensome tax upon cheap transportation, and an excessive, unjust rate upon the owners of boat property; therefore, be it

Resolved, That in view of the reduction of tolls, the abundance of capital and cheap labor, the close and persistent competition from rival routes owning and controlling elevators and terminal facilities, the general reduction in expenses connected with every branch of industry, and especially that of transportation, the heretofore low and unremunerative rates of canal freights, the immense and important commercial relations of New York city with the Erie Canal, we assume that it becomes an imperative necessity on the part of the produce merchants and elevator men of New York to in every possible manner aid the cheapening of transportation; and therefore, in that interest, this Buffalo Board of Canal Forwarders respectfully, yet earnestly, request them to secure, at an early date, a reduction to at least one-quarter of one cent per bushel of the proportionate cost of grain elevation in New York that canal boats shall be required to pay.

Resolved, That the Secretary of this meeting be and hereby is instructed to transmit a copy of the foregoing preamble and resolutions to the New York Produce Exchange and the leading grain-receiving and elevator men of New York city.

To the foregoing communication the following reply was made:

NEW YORK PRODUCE EXCHANGE, April 16, 1879. MR. S. E. ANTHONY, Secretary Buffalo Board of Canal Forwarders, etc.:

DEAR SIR:-We have the pleasure to acknowledge receipt of your communication of the 15th ult. with enclosure as stated. There is no body or association of commercial men who more fully appreciate the

importance of cheap transportation and minimum charges for handling grain between the points of production and consumption than do the members of this Exchange. You will acknowledge that we have always been willing workers with the Buffalo Board of Trade and with your own Association whenever work was to be done in favor of low tolls, or other benefits to the State canals and to those who use them. We recall a memorable occasion, when a delegation from Buffalo as well as from our Produce Exchange was urging a reduction of canal tolls before the Canal Board, now about three years ago. Mr. Marsh (since deceased) was then present, and in behalf of the elevator men of Buffalo, promised a reduction of 1⁄2 cent per bushel in the charges for transferring and weighing grain from lake vessels to canal boats, and our delegation promised an equal reduction for like service at this port. Our promise has been kept. How is it with Buffalo?

Through the efforts of Buffalo merchants and forwarders, and those of this Exchange, the tide of mismanagement and fraud which seemed about to overwhelm the Erie canal was turned, and it seemed probable that it had been reclaimed to usefulness and prosperity, when, on the 1st of September last, the Western Elevating Company raised its rates to the point at which they were at the time of Mr. Marsh's promise to reduce them. This was done while only thirteen out of the thirty-two elevators of Buffalo were in operation, or required to transfer the grain arriving in lake vessels at the port of Buffalo. We protested through your Board of Trade against this action on the part of the Western Elevating Company, and we hand you herewith a copy of that protest. We received no response to it, doubtless because the management of the Board of Trade was so closely identified with that of the Western Elevating Company (or pool). This action on the part of your neighboring organization turned from the Erie canal millions of bushels of grain last Fall, and was an injury to the commerce of the State of hundreds of thousands of dollars. We do not know that the members of your organization were at all instrumental in bringing about this breach of good faith on the part of the Buffalo elevator owners, but we mention it in order to call your attention to the fact that there may be found a wide field for the missionary labors of your organization near home, also as an intimation as to the point of beginning to carry out the laudable sentiments expressed in the first clause of your preamble. The second and third clauses of your preamble are as follows, viz.:

66 Whereas, The Buffalo elevators charge vessels a uniform rate of 1 of 1 cent per bushel for elevating grain, while the New York elevators charge of 1 cent per bushel for elevating, and

"Whereas, Such elevation charge to boats, of 1⁄2 of 1 cent per bushel for discharging cargoes in New York, is a much larger proportion of the whole cost of elevation than is charged for a like service at any other grain-receiving port, and thereby imposing a burdensome tax upon cheap transportation and an excessive, unjust rate upon the owners of boat property."

As a matter of fact, the Buffalo elevators charge for transferring and weighing grain from lake vessels to canal boats 1 cent per bushel, one-eighth of which is charged to the vessel and seven-eighths to the owner of the grain; while in New York the same charge of 1 cent per bushel is made for transferring and weighing from canal boats to vessels or warehouses, one-half of which is charged to the canal boat and one-half to the owner of the grain. Now we can easily understand that if the lake vessel did not have the 1⁄2 cent per bushel to pay to the Buffalo elevators at all, they could carry grain from Chicago to Buffalocent less than they can while they have to pay that charge. We can also see that the same would apply to canal freights if boatmen did not have to pay 1⁄2 cent in New York. We also see that if the vessels should be required to pay the whole charge of 1 cent per bushel for transferring and weighing at Buffalo, they would have to charge a rate of freight enough greater to cover this increased expenditure; also that the same would apply to canal boats if they were required to pay the whole charge of 1 cent per bushel for transferring in New York; but we fail to see how any possible division of these transfer charges among carriers and owners of the grain carried could possibly bring about any mitigation of a "burdensome tax upon cheap transportation" or any relief to the "owners of boat property."

It seems to us that the only way to remove a “ burdensome tax upon cheap transportation, and an excessive, unjust rate upon the owners of boat property," is to remove it, instead of shifting it from one shoulder to another. It also seems to us that a good place to begin in this case is at that end of the Erie Canal at which the bulk of grain must enter it. Now, Mr. Walker credits Baffalo with receipts of all kinds of grain for 1878 of about 100,000,000 bushels, aside from rail receipts. One cent per bushel upon this would produce for the Buffalo elevator pool $1,000,000, or say 20 per cent. upon the value of all the elevator property in the port of Buffalo, while rarely more than one-third of it is used or required. This is by no means the total income of the elevator pool. A 4 cent per bushel is charged for each ten days' storage, and extra charges are made to lake vessels for shoveling, and to canal boats for trimming. There is also a charge for blowing and screening, so that, as a matter of fact, the ten to thirteen elevators actually required to do the work at the port of Buffalo are made to pay not less than 25 per cent. per annum upon the total value of the thirty-two elevators located there, through the operations of the pool.

We are also aware that there is a class of men in Buffalo known as "scalpers," whose business is, it seems to be, to look after the financial welfare of "poor boatmen " on their arrival at the port of Buffalo, and, for a consideration, to protect them from the rapacity of merchants who have grain to be carried, and the imposition of insurance companies who insure their cargoes for them, and the roguery of elevator men, who, it is alleged, would otherwise cheat them as to the quantity of grain delivered to their boats, for all of which the " scalper" receives, first, a commission for obtaining a cargo; second, for insuring

the same for account of the boatmen, he pockets the rebate of 10 to 20 per cent. allowed by insurance companies; third, obtains a rebate from the elevator men for guarding him against temptation. So that the compensation of the "scalper" at Buffalo amounts to not less than an average of $25 per canal boat cargo, while an equal service is performed in New York by canal boat agents for $3 per boat. Here would seem to be a field wherein your organization might accomplish much toward the mitigation of the woes of poor boatmen," over which the "scalpers" of Buffalo docks weep so constantly and pass pathetic resolutions so frequently.

66

In conclusion, we have to say that there is a general impression among the members of this Exchange that the usefulness of the Erie canal for the purposes of commerce hereafter depends about as largely upon the action of Buffalo elevator owners, forwarders and "scalpers," as upon any action which may be taken by the State in the reduction of tolls or deepening its waterway, unless, indeed, some way can be contrived for getting around Buffalo, which is not impossible, nor even improbable, when the Welland canal is completed. So far as boatmen, boat owners and boat property are concerned, the demand for their services and boats must depend upon their ability to compete with rail lines in carrying, and the willingness of Buffalo elevator owners and “scalpers” to accept a reasonable compensation for services rendered and capital actually employed in delivering to boatmen their cargoes.

So far as New York is concerned, we believe there is no port where grain is handled for a smaller compensation for the capital and labor actually employed; still, we believe the system of handling grain at this port is susceptible of great simplification and reduction in cost, and the efforts of this Exchange are, and will continue to be, put forth to that end. I have the honor to remain, sir,

Very respectfully yours,

FRANKLIN EDSON, President.

LETTER OF T. C. RUGGLES ON THE ERIE CANAL.

FRANKLIN EDSON, ESQ., President New York Produce Exchange:

DEAR SIR-Enclosed I send you my letter about the Erie canal, hoping it will meet your entire approval.

NEW YORK, May 26, 1879.

Very respectfully yours,

THOMAS COLDEN RUGGLES, Civil Engineer.

The object of this letter is to urge the advantages of having not only a free canal, but a deep one, Greater depth is a necessity for the future prosperity of the Empire State, and a depth of certainly three feet additional to the present depth (seven feet). Mr. John B. Jervis, C. E., suggested (in the International Review, May-June, 1878) that an additional foot might be made at small expense by raising lock-gates,