REPORT. OFFICE OF THE BOARD OF RAILROAD COMMISSIONERS, January 10, 1887. To the Honorable the Legislature of the State of New York: Chapter 353, Laws of 1882, requires the Board of Railroad Commissioners to report to the Legislature on or before the second Monday in January. Agreeably to the requirements of said law, the Board submits its Fourth Annual Report. GENERAL SITUATION. At The year ending September 30, 1886, may be recorded as one of fairly profitable business for the railroads of the State. the close of the fiscal year covered by the last annual report the business depression of railroads had about reached its lowest point. The tide then turned and has been steadily rising since, keeping on a level with the general commercial activity throughout the country. The important events in the railroad world which took place in the autumn of 1885, namely, the formation of another trunk line traffic agreement and the leasing of the West Shore by the New York Central, were largely instrumental in bringing about these results so far as railroads are concerned. The facts and circumstances which finally led to those important transactions are given in full in the last two annual reports of the Board to which your attention is again directed. The rates of grain from the interior to the seaboard have generally been maintained on the basis of from twenty to twenty-five cents per hundred pounds from Chicago to New York, thus giving to the transportation lines a fairly profitable business. There was apprehension that the leasing of the West Shore by the New York Central would result in the imposition of oppressive freight rates upon the large portion of the State reached by these lines, but so far no complaints of excessive rates against these roads have been lodged with the Board. It is to be hoped that this condition of affairs will continue, and that sufficient business at mutually satisfactory rates will offer itself. Perhaps the most important and significant fact of the year is the largely increased shipments by canal. This has been the result of two causes: 1st, the rise in price of transportation by rail, making water competition both possible and profitable, and, 2nd, the large increase in the quantity of grain shipped to the seaboard. The trunk lines have carried but 152,297 tons of through freight during the season of navigation in excess of that carried last year, but the increased rates have made it profitable. The canals, however, have carried 5,293,982 tons as compared with 4,731,784 tons in 1885. The Welland canal has carried an increase of thirty-four per cent, a significant fact as affecting the commerce of the United States. Attention is further drawn to the fact that the Welland canal has a depth, at present, of twelve feet, which will be further increased, it is understood, to fourteen at the opening of navigation next year. The Erie canal has a depth of but seven.* No better illustration is possible of the wisdom upon the part of the State of maintaining in efficient condition its waterways. The Board has taken occasion in each of its annual reports to comment upon this subject and again repeats from its Second Annual Report (p. XII) the following language: "Water competition is acknowledged by railroad managers to be the only competition that is uniform and effective in fixing rates of transportation for the commerce of the country. Not only does the canal system of this State regulate the carrying price over and through the State, but, in a large measure, it determines the price of the cereals of the west, from which are made up ninety per cent of the food consumption of the State. Therefore, whatever may be said for or against railroads competing with each other, there can be no question but that it is of vital interest to the people of the State to jealously guard our great waterways, which, by a constitutional amendment, have been made for ever free, the cost of their maintenance being taxed upon the people." The figures relating to canal statistics have been kindly furnished by the Superin. tendent of Public Works. |