Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
The open prairies of the West offered the most inviting prospects for
canal construction, both because of the dearth of roads and the ease
of construction of artificial waterways. Not only through routes to
the East, as already described, but local enterprises of various sorts
abounded on every side. Chicago was connected with the Mississippi
system by way of the Illinois and Michigan Canal; a route across the
lower peninsula of Michigan, and many feeders in Indiana and Ohio
were built. The demands upon the capital of the country for these
purposes during the twenty years after 1815 were enormous; and it
was only by resort to state subventions and grants from the Federal
government out of the proceeds of sales of public lands, that so
much was actually accomplished. State debts aggregating no less than
$60,000,000 for canal construction were incurred prior to 1837. Much
of this investment proved ultimately unproductive; extravagance and
fraud were rife. But the economic results were immediately apparent and
highly satisfactory, as witnessed in the higher prices obtainable for
all the products of the interior for transportation to the seaboard.
Flour, which could be had at three dollars a barrel at Cincinnati in
1826, rose to double that figure by 1835; and corn rose from twelve
to thirty-two cents a bushel. The panic of 1837 and the subsequent
depression, of course, put a severe check upon further canal building.
But an even more potent force was the proved success of the newly
invented mode of carriage by railroad. Before 1840 the era of canal
construction was definitely at an end. Almost the only exception was
the Erie Canal, which continued to prosper by reason of its strategic
location. Rates were reduced in 1834; and two years later the canal
was widened and deepened to accommodate the ever increasing traffic.
Surplus revenues enabled the amortization of its debt; and by 1852
the revenue exceeded three million dollars annually. Although the
pressure of railway competition was increasingly felt; as late as 1868,
practically all the grain into New York was brought by canal barge. The
movement of this canal tonnage, year by year, is shown by the diagram
on page 25. As will be seen, it was not until the trunk line rate wars
of 1874-1877 that the inferiority of the canal to the railroad, even
in this favored instance, was finally demonstrated. The revival of
interest in the Erie Canal which has occurred in recent years, leading
to the expenditure of millions of dollars by the state of New York in
still further enlarging it, is due to an effort to insure the supremacy
of the port of New York in export trade against the growing competition
of the Gulf ports, which it originally gained when the canal was
constructed.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account