CHAPTER XV.

THE WATERWAYS OF THE UNITED STATES.

“The Erie Canal, conceived by the genius, and achieved by the energy of De Witt Clinton, was, during the second quarter of this century, the most potent influence of American progress and civilisation. It developed the north-west, by giving an outlet to the commerce of the great lakes, and it made New York the Empire State, and New York City the imperial mart of the New World.” —_E. Sweet, in the Transactions of the American Society of Civil Engineers for 1884._

A glance at a map of the United States will suffice to show that it has unique natural facilities for water transport. Its great lakes, which are inland seas of no inconsiderable dimensions, now connected together by the Erie and St. Mary’s Falls Canals, its magnificent rivers, such as the Mississippi and the Missouri, and the natural configuration of the country, create an _ensemble_ for cheap transportation such as no other country can surpass. Besides these resources, however, the United States have now a railway system of over 160,000 miles.

The same favoured country has a large number of noble rivers, as well as a magnificent system of lakes. Of these, the most important is the Mississippi, which has a drainage area, estimated at 1,261,000 miles, and which, including its tributaries, has about 15,000 miles of navigable waters. A large portion is, however, closed at low water. From the source of its great tributary, the Missouri, to the Gulf of Mexico, its outlet, the Mississippi has a length of 4194 miles. It may, however, be maintained that the Mississippi is less a single river than the outlet of a number of rivers, each of considerable importance. The Missouri river has a drainage area of 518,000 square miles, and 3500 miles of navigable waters, while the Ohio river, which has the next most important basin, drains an area of 214,000 square miles, and has 5000 miles of navigation. The smaller tributaries include the Arkansas river, the Med river, the Yazoo, and the St. Francis. The navigation of the Mississippi river has for a number of years past been under the control of a special Government Commission, by whom the mouth of the river has been dredged, training walls have been built, shifting sandbars have been regulated, and dams thrown across to concentrate the low-water flow in the main channel. On the Upper Mississippi, St. Anthony’s Falls oppose a barrier which has been overcome by a canal and locks.

In no country has there been a longer or more severe struggle between canals and railroads than in the United States of North America. In no country have both systems of transportation had a more eventful, instructive, and interesting history. In no country have railroads and canals been afforded equally free scope for development, and in no country have transportation rates been cut so fine and reduced so low. We may, therefore, by a consideration of the conditions of transport in the United States, and especially by seeking to ascertain how far the two great systems of internal communication have competed with each other, learn something that will throw a good deal of light on this problem.

Washington, himself, was one of the first to appreciate the importance of canals. In his early life the father of his country was a land surveyor, in which capacity he became very familiar with the requirements of the region of the Potomac. Both in this employment, and subsequently, when in 1754 he commanded a military expedition to the Monongahela river, Washington was constantly seeking to improve transportation facilities. He was especially eager to have a waterway opened between the Chesapeake and the Ohio. The War of Independence for a time diverted his ideas from this purpose, but when the war was over he obtained a charter for a waterway between the great lakes and the Hudson, and became the first President of the company formed for its construction. Washington, therefore, stands, in relation to the waterways of the United States, in the same position as the Duke of Bridgwater does in regard to the canal system of our own country, Peter the Great in reference to the canal system of Russia, and Louis XIV. in relation to the canal system of France. It must be admitted that in every case the system has had a worthy sponsor.

In 1792, an Act was passed by the Legislature of the State of New York, incorporating two companies—one, the “Western Inland Lock Navigation Company,” charged with the duty of constructing a canal, with locks, between the upper waters of the Mohawk and those flowing into Lake Ontario; the other, the “Northern Inland Lock Navigation Company,” charged with the construction of a similar work from the Hudson to Lake Champlain—between which there is a remarkable depression in the general surface of the country. This Act, drawn up and mainly carried through the exertions of General Schuyler, was the first and most important step taken towards the construction of a general system of public works for the country. The objective point aimed at by the Western Company was Lake Ontario, at Oswego, by way of Wood’s Creek, Oneida Lake, and the Oswego River. At that time, however, the great enterprise which was to follow—a canal from the Hudson to Lake Erie was not dreamt of. The purposes of the promoters were as distant from the ultimate result as those of Edward Pease and George Stephenson were when they planned the Stockton and Darlington Railway.

In 1796, the Western Inland Lock Navigation Company was formed in the United States for the purpose of opening up some of their projected inland waterways. This company constructed several small canals, but its operations were unsuccessful, and in 1808 it surrendered all its rights and property to the State for the sum of 140,000 dollars (28,000_l._), which was only one quarter of their original cost.

During the existence of the company, freight designed for Lake Erie and the West took the route of Lake Ontario to the mouth of Niagara river. From that point to the head of the Falls was a portage of 28 miles. The charge for transporting a bushel of salt for this distance, according to the report made by Mr. Geddes in 1809, was 75 cents; and for a ton of general merchandise 10 dollars. All that can be said of the works of the Western Inland Navigation Company is, that they led the way to the construction of the Erie Canal. They never held the route of any considerable commerce. For a long time after their construction, the farmers of Central and Western New York, for want of other means, sent their produce to market down the Delaware and Susquehanna rivers in arks, which were broken up when the destined market was reached. In the meantime, the subject of a canal better adapted to the wants of commerce than that of the Western Inland Lock Navigation Company was by no means lost sight of. In 1807, in a series of articles published at Canandaigua in the Ontario _Messenger_, Jesse Hawley, their author, urged the construction of a canal from Lake Erie, 100 feet wide and 10 feet deep, “to be laid on an _inclined plane_,” from Buffalo to Utica; thence down the channel of the Mohawk; thence across the portage to Albany—to be constructed at the expense of the National Government. This plan of an inclined plane, strange as it may seem, was, notwithstanding its gross absurdity, favourably received, and proved for a long time, from the great difficulties it involved, a serious obstacle to the early beginning of any work of the kind.

In February, 1808, Mr. Joshua Forman, a member of the Legislature from Onondaga, and subsequently one of the efficient promoters of the canal, proposed the appointment of a joint committee “to take into consideration the propriety of exploring and causing an accurate survey to be made of the most eligible and direct route for a canal to open a communication between the tide-waters of the Hudson river and Lake Erie.” On the 21st of March, 1808, Mr. Gold, of the committee, made a report, enlarging upon the importance of the proposed work, “in drawing together and preserving in political concord the distant parts of a widely extended empire,” and closed with a resolution that the Surveyor-General cause an accurate survey to be made of the rivers, streams, and waters in the usual route of communication between the Hudson river and the western waters, and such other contemplated routes as he may deem proper. For such survey the sum of 600 dollars was appropriated. The action under the resolution of Mr. Forman was the first step taken by the Legislature with a view to the construction of the Erie Canal. In 1810 commissioners were appointed to examine the route of the proposed canal. In 1811 the commission reported in favour of a canal, which, in order to produce the inclination of six inches to the mile to Schenectady was to cross the Genesee river by a viaduct 83 feet above the water, and the outlet of Cuyaga Lake at an elevation of 130 feet. In 1812 the commission made an estimate of the probable tonnage that would come upon the canal, and of the tolls that would accrue therefrom. They expressed their opinion that not improbably the canal, in twenty years from that time, would bring down 200,000 tons of traffic![110]

In 1817, the Act for the construction of the Erie Canal was finally passed. The money was to be raised on the credit of the State. In 1825 the canal with its adjuncts was completed. The latter event was signalised by a holiday, and unusual rejoicings. It was regarded as a great thing that the news of the opening of the canal was conveyed to New York from Buffalo, by a discharge of cannon, whose reverberations were repeated along a line of 513 miles in one hour and twenty minutes. The communication which the Erie Canal afforded between the vast inland seas of the United States and the Atlantic Ocean was, indeed, the greatest event in the history of transportation in that country up to the end of the first quarter of our century.

The opening of the Erie Canal was followed by the initiation of many other schemes of a similar kind. The real date of the era of canal building in the United States was 1825-30. Pennsylvania, following directly upon the heels of the Erie, constructed a work which was partly railway, and partly canal, and upon which the State expended no less a sum than 50 millions of dollars (10,000,000_l._).[111] This line, however, was not successful. “The works, although of great local use and value, never became factors of any importance in the general commerce of the country.”[112]

The State which, next to New York, achieved the greatest success in the construction of canals was Ohio. In 1832 two lines were opened through that State—one from Cleveland to Portsmouth, on the Ohio, the other from Toledo to Cincinnati. Their capacity did not allow the passage of boats carrying cargoes exceeding thirty tons. At its highest point, in 1857, their traffic reached 1,635,744 tons. The line which separated the tonnage going north to the lakes, and that going south to the river, passed east and west very near the centre of the State—the tendency of breadstuffs, on the whole, being toward the lakes, to seek their outlet through the Erie Canal; and of provisions of all kinds to the river, to seek their outlet through New Orleans. Of the exports of beef from Cincinnati in 1851, the year of the opening of the Erie railroad, and twenty-seven years after the opening of the Erie Canal, 97 per cent., went down the river to New Orleans, and only 2 per cent. northward to the lake. Of Indian corn, 96 per cent. went down the river, and only 3 per cent. to the lake. Of flour, 97 per cent. went down the river, only 1 per cent. to the lake. Of lard, 83 per cent. went down the river, and 9 per cent. to the lake. Of pork and bacon, 79 per cent. went down the river, and 5 per cent. to the lake. A very small amount of these articles went up the river to Pittsburgh, the first great manufacturing city that grew up off the line of the seaboard. Taking the whole State, two-thirds of its wheat went north, seeking an outlet by the way of the Erie Canal. Of corn and provisions, nineteen-twentieths went down the river to New Orleans. One reason, probably, for the excess of the southward movement of provisions was, that the animals were slaughtered in the autumn, too late to have their products forwarded by canal. Corn was grown chiefly in the southern part of the State. Live animals were never moved, either on the Ohio or on the New York canals. The provision trade, which now forms so enormous a traffic on the railroads running to tide-water, is wholly the creation of these works. The canals of Ohio maintained a considerable traffic until the construction of competing lines of railroads, when it declined so rapidly that, in 1856, the expense of their maintenance became greater than their revenues. They have long since been practically abandoned as routes of transportation.

The State of Indiana, following the lead of Ohio, constructed, with the aid of its creditors, a canal from the junction of the Miami Canal to the city of Evansville, completing it in 1855. Only the upper portion of this work came into considerable use. The whole system was abandoned upon the construction of railroads along its line.

The State of Illinois constructed a canal from Lake Michigan to Lasalle, at the head of navigation on the Illinois river, a distance of 100 miles from Chicago. It was originally intended to make the cut deep enough to feed the line from the lake. This project was abandoned from the cost of its execution, to be subsequently carried out by the city of Chicago for sanitary purposes. The canal had at the outset a considerable traffic, which, however, was lost upon the introduction of competing lines of railroads.

The preceding works include all the great water-lines constructed by the States for the purpose of giving direction to the general commerce of the country. Several considerable private works were executed, the most important of which was the Delaware and Raritan Canal, to connect the Delaware River with the harbour of New York, a work of large capacity, which still retains an extensive traffic. Several works of the kind were constructed, chiefly in Pennsylvania, for the transportation of coal-works which, upon the construction of railroads, lost all the importance they once enjoyed. The Chesapeake and Ohio, and the James River and Kanawha Canals, upon which large sums were expended, and for which great expectations were raised, were never completed, and do not require particular remark. The canal system of the country has now become so completely subordinate, that few are aware of its magnitude previous to the construction of railroads which caused a great part of it to be abandoned. At one time there were 5000 miles of canal lines in operation, built at a cost of 150,000,000 dollars, or 30,000,000_l._

The growth of the traffic on the waterways of the United States was steady for a number of years. In 1837 it was nearly 1¼ million tons; in 1847 it was nearly three millions; and in 1857 it was 3,344,000 tons. In the latter year the traffic of the canals as a whole was 772,000 tons less than in the previous year. This decline, which occurred almost for the first time in the history of the system, created considerable alarm—all the more so that it fell coincidently with a large increase in the railway traffic. Up to 1851 the railways had not had a free hand. Laws were enacted imposing canal tolls upon railroad tonnage, and prohibiting any roads from carrying freight. The State authorities looked upon the canals as a trust confided to their keeping, and protected them against the railroads. But in 1851 these laws were repealed, and from that date the railroads entered upon a career of development such as they had not previously known.

From the first the struggle was vastly unequal. The railroads not only offered a much higher rate of speed, but very low rates as well. They entered into arrangements “with lines of propellers (steamers) on the lakes, and steam and tow boats on the Hudson, forming connected lines from the seaboard to Detroit, Cleveland, Sandusky, Toledo, and other western ports, to divert all the freight possible from the canals over their roads,” and practically “contracted to carry freight on the propeller for nothing, for the sake of getting and securing the freight of it upon their roads.”[113]

This is only a repetition of an experience that has been perfectly familiar in the transportation annals of England and other countries. But in no other country did the State take up an attitude of hostility to one interest in order that the other might be advanced. The proposal gravely made in the United States on behalf of the State was that railroad tonnage should be specially taxed, in order that it might be handicapped as against the canals. The Committee of Ways and Means did not seem to entertain any doubt that this species of tyranny was within their power. “The Legislature,” they said, “has the power to move them (the railroads) in such form, and subject them to such charges and restrictions, as it may deem it the interest of the State to require.” And then followed the astounding _non sequitur_ that “the State has the power to prohibit them altogether from the carriage of freight!” The keen competition which had been going on between the canals and the railroads had no doubt seriously affected the trade and revenue of the canals, “and through them,” added the State engineer, “the interest of every taxpayer in the State.” This was greatly deplored, as the consequence of unnecessary rivalry. “The passenger travel belongs exclusively to the railroads, while the transport of cheap and heavy articles of freight belongs to the canals!”

It is not too much to say that if the report and recommendations of this Committee had been acted upon in the spirit in which they were made, there would have been a revolution in the United States compared with which the Boston tea riots were a mere fleabite. As it was, no such drastic remedies were adopted. The friends of the canals were shortly found “clothed and in their right mind.” Instead of making _ad misericordiam_ appeals for State intervention, they were soon afterwards setting their house in order. Attention was given to the increased use of steam as a propelling power, and the rates of toll were gradually reduced, until the canals were carrying much more cheaply than the railways, and in 1880 the canals were enfranchised and tolls were altogether abolished, since which time they have been able to compete with the railroads on still easier terms.

Judging by the ultimate quantities of traffic carried, there is only one opinion possible concerning the issue of this memorable struggle. The railroads have won all along the line. The total tonnage carried on the railroads of the United States in 1880 was 290,897,000 tons; the canals in the same year carried only 21,044,000 tons. The income of the railroads in 1880 was 580½ million dollars; that of the canals was only 4½ million dollars. The canals had only one-fourteenth part of the traffic of the railroads, and scarcely more than 1/130 of the gross income.

These results are very remarkable when the records of the charges made under each of the two systems are examined. When the controversy between them was raging most fiercely, the railroads were charging about three cents per ton per mile, while the canals only charged ·799 of a cent.[114] It was not, therefore, on the ground of greater cheapness that the railroads claimed or received the traffic. It was the same with through as with local traffic. During the six years ending 1884, the receipts of grain and flour at New York by lake, canal, and Hudson River fell from 64 to 45 million bushels. In the same interval the quantity carried by rail only declined from 85¼ to 83 million bushels.[115] Between 1868 and 1884 the total traffic carried on the New York State canals fell from about 6½ million to little more than 5½ million tons. On the competing railroads—the New York Central, the New York, Lake Erie, and Western, and the Pennsylvania Railroad division—it increased from 10,476,000 tons to 36,700,000 tons. On the canals the traffic had decreased by over 15 per cent.; on the railways it had increased by over 350 per cent. The comparison is, of course, not strictly relevant and parallel, inasmuch as in the case of the railways traffic was gathered and carried over a very much wider area, and it was really only over a comparatively limited section of their several routes that competition existed. But the figures all the same serve to show “how the cat was jumping.”

The decline of canal traffic is almost the despair of economists in view of the remarkably low range of rates charged on the canals over this period. No better example of this movement could be given than that of the rates charged for the transportation of wheat from Chicago to New York. This is a through traffic, carried over 1000 miles, without breaking bulk by either system, and therefore under conditions exceedingly favourable to economical transport. In 1857, when the State of New York, by the mouths of its chief executive officers, was proposing to prohibit the railways from carrying heavy freight, and suggesting the imposition of tolls on railway traffic by way of assisting to keep the canals alive, the average rate charged for transporting a bushel of wheat over this long route was a fraction over 26 cents. In 1868 the canal system was charging 24½ cents, as against 42½ charged by the railway for the same service. Ten years later still, the lake and canal rate had fallen to 9·15 cents, and the railroad rate to 17·9 cents. In 1884 the former amounted to 6·60 and the latter to 13 cents.[116] Throughout the whole period the railway-borne wheat has paid almost twice as much as the water-borne. And yet the trade of the canals declines, while that of the railroads increases. This is an enigma for which we must now endeavour to find a solution.

The United States differ from Great Britain, and from most other countries, in their economic circumstances. They have developed their trade with a rapidity that is perhaps unexampled in the annals of commerce. They have found such a demand for their produce, alike at home and abroad, that they have not had time to take heed of cheeseparing economies. The question with the agriculturists and the manufacturers alike has been to secure the largest possible deliveries in the shortest possible space of time. They found a practically unlimited market for their agricultural produce in Europe, at prices which, while they were working on a virgin soil, paid them sufficiently well. Of that price, transport was no doubt an important element. When the railways were receiving 30 to 40 cents per bushel for transporting wheat from Chicago to New York, the sellers were receiving 40_s._ to 50_s._ per quarter in London. The railway transport was therefore only one-fourth to one-fifth of the entire ultimate cost of the product. If the ocean transport cost 15_s._ more, the total cost of