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JOHN YOUNCr J^' uy^M PRINTED AND PUBLISHED BT JOHN LOVELL, ST. mOHOLAB BTBXIT. 1868. ■■■■ A , ' : .. •. ■ - f ' '? ''i ■"■^m f" k r' -••^ V 1 TO TUE MRBOIIR COIISSIOIRS OF MONTREAL i r .« J ;:i GENTLEMEN, The Report lately laid before the Harbour Commissioners of Montreal and a Committee of Citizens on Harbour Improvements, by Mr. Trautwine, embodies opinions in reference to the Public Works of Canada and the route of the St. Lawrence from the interior, as to their power of competition with the Canals of the State of New York for the vast and rapidly increasing trade between the Atlantic and the Western States of the Union, as well as of Western Canada, so utterly at variance with all previously ex- pressed views on the same subjects, that I deem it my duty to point out what seem to me Mr. Trautwine's erroneous conclusions. I shall at the same time examine his Report in reference to the construction of Docks at Montreal. On this subject, it is well known that I have always connected the subject of Docks at Montreal with the improvement of the St. Lawrence navigation from the Upper Lakes, and with the construction of a Canal to connect the waters of the St. Lawrence and Lake Champlain ; and it is on this broad ground that I still urge the necessity of Docks, believing as I do that the whole subject must soon receive that attention from the Executive of Canada which its importance demands. I shall confine my attention to Mr. Trautwine's Second Report on Docks, as there is nothing in his first Report on the improve- ment of the present Harbour which calls for particular notice. The improvement of the Island Wharf has been under considera- tion by the Harbour Commissioners for some time and had been resolved on, and the mode of construction pointed out by Mr. Forsyth previous to Mr. T.'s arrival in Montreal. The plan sug- gested by Mr. Trautwine for the accommodation of the Oviean Steamers will not, in my opinion, ui)on examination, be found so desirable as tliai suggested by Mr. Forsyth ; nor do I think it will be prudent to build any of the wharves on tho slanting principle suggested by Mr. Tate, and approved by Mr. Trautwine. To the people of Canada, there can ba no object of so much importance as that of securing the great and growing carrying- trade of the interior, which was the chief reason for the cod- struction of those expensive works which connect Lakes Erie and Ontario, and whicli line the St. Lawrence frora Kingston to Montreal. It was not for the cariyingtrale of Canada alone that these works were constructed. If they fail to secure their object — which, up to this time, is the fact— the result will bo dis- astrous to tho Province in a double point of view ; for it will not only lose a great and flourishing trade, whicli in my opinion it is in the power of Canada to secure, but it will be burdened with costly and unproductive works, which, insteal of being a source of revenue, are even now, as will be shewn, an annual drain upon the cotfors of the Province. Mr. Trautwine says : — " The high rates of insurance incident to the navigation of the Hirer and Gulf of St. Lawrence, and the expenses of pilotage and towage on the river, combine, with other causes, to raise the charge on the freight of a barrel of flour, to Liverpool, to 25 or 35 cents more from Montreal than from New York ; — and so long as the bulk of exports shall exceed that of imports into Canada bj 300 or 400 per cent., there ia no assign- .ible reason, that I can suggest, why this disparity should cease. "Should the foregoing arguments prove insufHcient to demonstrate the inexpediency of embarking in an extensive scheme of docks, it may be added that the State of New York, sooner than submit to the diversion of this branch of her exports, and permit it to seek Canadian channels, would, doubtless, choose the least of two evils, and reduce her canal- tolls to such an extent as to paralyse all efforts to that effect. According to this view, the efforts of Canada to make the St. Lawrence the great highway from the West have been blunders ; even if she wore successful in stjcuring a diversion of Westeru P 'V r N^ trade into Canadian channels, the State of New Yoik would paralyse all our efforts to maintain that trade by reducing her canal-t.-Us. For these and other reasons, which I shall refer to here- after, Mr. Trautwine advises the citizens of Montreal " to confine " their attention to the improvement of their present harbour, and " to lay aside all dock projects for years to come ;" and that any " attempt 10 reduce the present charges on produce by the con- " strncticm of docks on any scale whatever, must be entirely futile > *♦ and if persisted in, at Ihis time, will but add one m )re to the " many grand but unremunerative works which have already *' absorbed such immense sums of money in Canada. Under this *' conviction, I feel it incumbent on me to caution t!ie citizens of " Montreal against embarking in any system of docks, at least at " present. Should future developments of commerce bring about " a posture of affairs difFeront from that which now exists, and *' one which shall change the unpropitious aspect wliich the pro- " ject now wears, it will then be time enough to take the matter " up in earnest." The opinions thus expressed by Mr. Trautwine go to shew that the route from the West throujjh the State of New York to the ocean, must continue to have a decided superiority over the route through Lower Canada ; — that the merchants and the great majority of tlie citizens of Montreal are not fit judges of what is requisite to obtain a share of that trade ; — that it is useless to make further efforts at present for such an object, but should " future developments of commerce " " providentially" bring about a different posture of affairs, it will then be time enough to move in theraitter. In such a policy I, as a Canadian, and especially as a Lower Canadian merchant, cannot coincide ; and although it is a labour I would at present rather avoid, still, the matter is of so much public importance, I deem it my duty to give my reasons for differing with the views thus expressed by Mr. Traut- wine. The question presented for discussion by the foregoing ex- tracts, is not whether Docks should be constructed at Ilochelaga, or at Point St. Charles, or on the lands of the Grand Trunk Company, but whether the prospects of trade by the St. Lawrence 6 >. 'f route warrant the construction of any Docks at all. As I before said, this is a subject of the greatest possible importance to every resident of Canada, but particularly to the residents of Lower Canada, for if the great and growing trade between the Atlantic, Western Canada, and the Western States, is to continue, as it does now, to centre in New York, to diverge from the St. Lawrence in its transit, and not to come nearer Montreal than Oswego or Lake Ontario, 250 miles above this city, then it is true that Docks will neither be required at Montreal or Quebec, and the construction of our canals as well as our railways must be considered blunders, and prove an annual drain upon the Canadian people. Let me first point out, as briefly as possible, the cost of our prblic works on the St. Lawrence route, and the amount for which the people of this country are now annually taxed to pay the interest on these works. By the Public Accounts of IS.??, it will be found tirnt the cost of the Welland and St. Lawrence Canals, up to 3l8t Dec. of that year, was £3,514,322. Deductions from revenue for repairs, collections, &c., &c.— Welland Canal £29,027 St. Lawrence Canal 21,7t5 Expense of general repairs, as per Table No. 13 in Public Accounts, as per special appro- priation 33,529 Interest on £3,614,322, at 6 per cent., 210,859 £295,190 Deduct total rtceipts from Welland Canal. ..... 69,828 " " " " St. Lawrence Canal... 17,867 77,695 Loss for 1857 in operating Welland and St. Law- rence Canals £217,495 In the next place, the advance to the Grand Trunk Railway Company by the Province, and the interest paid on the Deben- tures, amoimt to about £4,500,000, the interest on which is £270,000, so that the annual loss on our canals and the Grand Trunk Railway amounts to £487,495. If we add to this the loss arising from other unproductive canals and railways, we have an amount exceeding the sum of $2,400,000 per annum, which the people of Canada are now compelled to pay by duties on imports. f i . t't ♦ ' »■.»' These figures, which cannot, I believe, be contradicted, shew how great an interest the people of Canada have in the solution of the grand question whether the natural route for the great trade of the Western States and of Western Canada is to be through the St. Lawrence river to the Eastern States and the ocean, or whether that trade must continue to flow, as at present, through the more artificial canals of ^the State of New York, 250 miles above Lower Canada. The question thus at issue between Canada and the State of New York is, therefore, as to which of these two great water lines can best supply the link wanted to connect the North- -west with the ocean. This subject has been so ably argued by Messrs. Childe, Kiikwood and McAlpine, in their Report dated March, 1858, and addressed to the Harbour Commissioners of Montreal, that it is unnecessary for me to allude to the course of that trade, or to their statements in proof of its magnitude. The works erected on these two routes to facilitate the trans- port of freight may be briefly described as follows : At the outlet of Lake Superior, the first obstruction to navi- gation is overcome, on the United States side, by a Canal one mile in length, with two locks, which will pass vessels of 1200 tons. This work was constructed by the United States Com- pany. The Welland Canal, on the Canadian side, connects Lakes Erie and Ontario, and is 28 miles long. The St. Law- rence Canals are made to overcome the various rapids of that river. And the Channel of the St. Lawrence between Quebec and Montreal has been deepened so that sea-going vessels draw- ing IC feet at the lowest stage of water come up the river as far as Montreal, and operations are now being carried on to secure a channel of 20 feet. The State of New York has built a Canal from Bufiialo on Lake Erie, and from Oswego on Lake Ontario, to Albany on the Hudson River, a combined length of 569 miles, which now ad- mit boats of about 100 tons, but will soon be completed for the passage of boats of 250 tons. The New York Canals were opened in 1825. The enlarged St. Lawrence Canals were opened in 1848. Both routes have been in use since the com* . J 8 pletion of the works ; but it is matter which admits of no doubt, that the St. Lawrence route has hitherto completely failed to attract any considerable portion of the Western States trade ; and that since the passing of the United States BonJing Act, in 1849, the great bulk of the exports from Western Canada, have been carried across Lake Ontario to Oswego and other L»ko Ports, for shipment to Atlantic Ports, and for Sale in the Eastern States. This will be manifest from from the following state- ment : — The receipts of wheat and other grain, and of flour reduced to grain Lt the rate of 44 bushels to the barrel, at the Ports of Buffalo, Oswego, Dunkirk, Suspension Bridge, Rochester, Cape Vincent and Ogdensburgh, in 1856 were 48,391,056 bushels. 1858 " about 62,000,000 " In Montreal the receipts iu 1856 were 4,509,243 bushels. 1857 " 4,392,453 " 1858 " 6,216,194 " It thus appears that the receipts through our Canals at Mon- treal iu 1866, were about ten per cent, of receipts at American Lake Ports, while in this year the receipts are also ten per cent. Again, the Exports /row Ports inWestern Canada to the United States, per Trade and Navigation returns, were : — Wheat. Other Grain. Flour Total. reduced to Grain. 1856—4,362,379 7S5,341 1, 707,990 6,005,710 bushels. 1867—2,340,372 462,580 1,690,016 4,492,968 " These figures shew that the exports from Western Canada to the United States Lake Ports, exceed the whole of the receipts at Montreal, wliich include receipts both by railway and canal and all that come» from the United States and from Canada West. In a letter w.itten to the Hon. Mr. Lemieux, Chief Com- missioner of Public Works, in 1855. I pointed out the tendency of this course of trade in the following wordb : — iV , If, r \ 9 i. ^ \ " Let it be remembered that previous to 1849, before the United States bonding bill came into operation, there was no exportation of cereals from Canada into the United States, or next to none. But what has been the amount of wheat and floui so exported since that date ? Seducing wheat into flour, the amount will be found to be as follows :— In 1849 24,936 barrels. " 1852 466,912 " " 1854 762,575 " " These figures establish but too clearly the course which the trade haa been taking ; and the results of the trade of this season, when oflRciallj known, will prove that a larger proportion than ever of Western Cana da cereals has found a passage into the United States. In other words that the carrying trade of Upper Canada products, by the St. Lawrence and the Canadian canals, is rapidly decreasing, and that of the State of New York rapidly increasing. A single fact will conclusively establish this disagreeable truth. During the four weeks ending on the 31st of October, the quantity of Canadian wheat received at the Port of Oswego alone, was 627,000 bushels, whilst the total reo^'pts of Canadian wheat by canal and river at Montreal, from th<* opening of navigation to the ■ame date, was only 104,677 bushels." I then pointed out the remedy for this state of things, as I had frequently done before, but the Governnaent was too busy about other matters to give any attention to such a paltry sulgect as that of the trai.le of the country, or to take any measures to stop the enormous annual loss which the inhabitants of this country have now to fear, from the unproductiveness of their Canals and Railways. Now what is the reason that the trade from the Western States and from Western Canada, tlows through the Erie Canal, and how is it that almost the whole imports into the Western States, and a very large amount of the imports into Western Canada do not come through the St. Lawrence, but are obtained from New York through the Erie Canal and over the New York Railways? It is said with truth, that our Canals are finer, better, and larger than the Erie Canal, which is sometimes contemptuously desig- nated as a "mere ditch." Our tolls on a barrel of Flour from Lake Erie to Montreal are only cents; on the Erie Capal, the toll is 16 cents. Moreover we 'give back two thirds of the 10 toll to any vessel which comes through both the Welland and the St. Lawrence Canals, — we have built Tug-boats for the Lower St. Lawrence, to serve the double purpose of towing, and render- ing aid to vessels in distress. Besides these advantages of the St. Lawrence, we can bring a vessel from any Port in the Upper Lakes, direct to Montreal, without breaking bulk, while by the Erie Canal to New York, there are two transhipments. Wheat has been carried this year from Chicago to Montreal, a distance of 1278 miles, at 11 cents per bushel, while the rate to New York has not been less than 17 cents ; we have also the Grand Trunk Railway in full operation, with a full staff of employees, ready and willing to do business, yet, at the end of 1858, the great Canals of Canada and the gi eat Grand Trunk Railway togetlier, have failed to do more than attract ten per cent of the trade of the "Western States and of Western Canada." As stated by Mr. Blackwell in his Report to the London Directors of the Grand Trunk Company, "disappointment has followed disappointment as regards the revenue of the Company, compariog the hopes with the actual results." Now out (if the 50,000,000 bushels of Grain and Flour reduced to Grain, received in 1856 at Dunkirk, Buffalo, Suspenson Bridge, Rochester, Oswego, Capo Vincent and Ogdensburgh, 40,000,000 bushels were received at Oswego and Buffalo. At both of these placos there is very great capacity for flouring wheat, and there are elevators capable of storing four million of bushels So that whop.t is rapidly transferred from Lake crafts to Canal boats, at a cost of one-fourth of a cent per bushel, and is stored, for a period not exceeding one month, a^ a cost cf half a cent per bushel. In Montreal it costs 3 cents per bushel to cart, store for one month, and 8hi[) grain on board of oceati vessel. Again, the great bulk of the 50,000,000 bus. arriving at Lake Ports is not shipped from the United States, but is mostly consumed in the non-pro- ducing States of New England ; in the same way, allliough the receipts of broadstuffs at Afontreal in this year are equal to 6,215,394 bushels, yot the exports by sea from Montreal are only equal to 1,790,850 bushels (including wheat and other grain, as » 1 ^ 11 1 ' r J ^ well as flour reduced i j^'rain). These consuming markets of "Wew England are open, under the Reciprocity Act, alike to Wes- tern Canada as they are to the "Western States. Osweoo has divided the Western Trade with BuiFalo for the reason that, although an 800 ton vessel can go to the latter port from any of the Upper Lake Ports to a greater advantage up to that point, than the Oswego vessel of 350 tons (the utmost capaciiy of the Welland Canal), yet the advantage gained by Oswego, of continuing the voyage in the same bottom for 171 miles by the Welland Canal and Lake, against 150 miles of par- allel canal navigation, nearly balances the advantage gained by Buffalo from being able to employ the large vessel up to tha'. point. Hence the trade of the Western States and of Canada West, may be said to be divided between the Lake Ports of Oswego and Buffalo, and this not only for exports but for imports, and it seems to mo impossible, under our present means of transport below Oswego, that either the hulk of the products of Canada Weat^ or of the Western States can pass below Oswego^ for the reason that if they did, there are no means of transport from Lower Canada to compete in cheapn'^ss with those from Oswego to Albany. The Welland Canal may be enlarged, as I hope it will be, but the advantage of that work will be almost solely for the benefit of Oswego, for with that work completed, it would be impossible to reach the New England Markets by the way of the St. Lawrence Canals so cheap as could be done by the way of Oswogo, unless other works than now exist were first constructed. This position is, I think, easy of demonstration. The only means of any con- siderable quantities of freight reaching New York, Boston, Port- land or the interior of any of the Eastern Statos below Prescott, or in L'»wor Canada, is fii*st by the Canada and New York Rail- way from CuughnawEga, next by the Victoria Bridge, which con- nects with the Railroad to Portland, and also with Rouse's Point, where connections exist to New York and Boston. The only inter-communication for such froiffht with Lake Champlain is by passing down the St. Lawrence to Sorel, thence up the Richelieu Rivor to Cliambly, a distance of 90 miles, and thence to St. Johns on Lake Ciiamplain by canal, a distance of twelve miles more. 12 The actual cost of moving a barrel of Flour from Oswego to Troy, 202 miles, at 10 mills per ton is, say, 20 ctg. Toll, 3 mills per 1000 lbs., 12 " The distance from the St. Lawrence at Gaughnawaga, or from the Victoria Bridge to Albany by rail, may be said to be 260 miles, which, at 12} cents per ton per mile, and with nine and a half barrels to the ton, the cost by rail would be per barrel, 40 " By the Chambly Canal, even with 100 miles of extra navigation, it could be taken through Lake Champlain'and through the Ghamplain Canal at 40 <* These are the only routes now existing for taking any conside- rable freight either on to Lake Champlain, or to Albany for New York fioin Montreal. And by the above figures it is cl'-ar, tbat property of all kinds, destined for a market in the Eastern States, can be shipped by the way of Albany /row Oswego cheaper than if shipped from Montreal by any means of transport there, or at any point below Oswogo. This fact is well known to all business men, and it is also well known that, to bring Western Canadian produce or Western States produce, destined for New York, Albany or Boston, down the St. Lawrence below Oswego, would be to add to the cost of transport from the St. Lawrence to New York, Albany or Boston, the cost of transport from Oswego to Montreal ; in other words, if a barrel of Flour can be sent from Oswego to New York at 40 cents, it would cost at least 60 cents at present by the way of Montreal. I have not included iho cost of freight from Toronto or other Canadian ports, as the cost of the forry or bridge at Montreal will be fully e(|ulvalent tlicreto. With this difference in favor of the Oswego route, it is utterly impossible that our commerce in Lower Canada can incrisase as rapidly as it might do. Our splendid canals on the St. L iwrence do not avail us ; the Ottawa navigation might be completed, and when finished would be as deserted as are our St. Lawrence canals, without some cheaper connection with the Hudson and Eastern States than wo now have. The Georgian Bay Canal might also be constructed, without Lower Canada or the St. Liwrence Canals being able to attract any more business than it now does. This ricw of the subject may also be supported by the following facts, Ctg. 13 shewinp: the amount of Wheat and other Grain and Flour redu- ced to Grain at the rate of 4 J bushels per barrel exported by sea from the Port of Montreal in the last 14 years : — Wheat and Flour Meal, Total. other Grain. in bushels. 1845- - 600,713 1,051,632 1,652,345 1846- - 698,887 1,133,640 1,832,527 1847- - 821,329 1,273,501 2,094,830 1848- - 218,191 725,472 943,663 1849- - 171,980 937,640 1,109,420 1850- - 281,107 696,496 977,603 1851- - 188,335 1,256,227 1,444,562 1852- - 414,348 971,660 1,386,008 1853- - 799,156 1,102,500 1,901,656 1854- - 237,008 442,104 679,112 1855- - 117,794 241,720 359,514 1856- -1,142,057 887,783 2,029,840 1857- -1,053,211 1,069,985 2,123,196 1858- -1,111,717 649,509 1,761,226 The above facts prove how smiill has been the progress of our exports by Sea from this Port of interior products, notwithstand- ing all our expensive Canals. The inferiority of oar power with only our pi-eseiit facilities, to compete with Oswego anil Buffalo, through the Erie Canal, will be still more marked when the en- larged Erie Canal is completed. But it is stated by the Managers and Directors of the Grand Trunk Ptailway, and hds been believed by many in Canada, espe- cially by the gentlemen of the lo.irnfid Profossioiis, who compose 80 large a part of the Parliament and of the Government of the country, that so soon as the Grand Trunk road was connectcJ with the Western lines, it would inevitably command the trade of the West and bring it to Montreal. I shall show that although the road has been open for several years and fully completed west, it has failed to do so, and I shall further shew tliat it is inqiossible for a railway to compete successfully in tlie carrying of heavy freight with a navigation such as on our Lakes and Hi vers, and how utterly fallacious is Mr. Dhv-kwell's project of making Portland and Quebec the groat emporiums for export and import 14 '■..:! ^' .' to and from Western Canada, and the Western States, by means of a railway. Railways on this Continent are not, as in Britain, the principal and almost the only means by which freight is moved from one point to another, but are rather auxiliaries and assistants to the great water lines. They do not carry any large amount of heavy freight, but where the water lines are successful, they are then fully employed in the carrying of passengers, light and valu- able goods, live stock, «fec. At Buffalo, for example, the receipts of wheat by Lake, in 1858, were 8,465,671 bushels, and by the Buffalo and Erie and Buffalo and Luke Hudson Railways, only 4040 bushels were received. In 1857, the receipts by Lake Erie were 8,334,179 bushels, and by the above roads 14,430 bushels. The receipts of flour iu 1856 at Buffalo,— barrels. Bj Lake 1,126,048 By Railroads 85,141 1857. Bv Lake 845,953 B7 Railroads 46,301 Receipts at Montreal in 1858, — Wheat and Flour and other Grain. Oatmeal. By Canals and Railway 2,194,906 C70,918 By Railroad from 1st Jany, to 31st Oct.. . 143,544 249,519 The lines of railway between Buffalo and Albany have been aided in their competition with the Canals, by an exemption from any of the State Tolls charged on property passing through the Canals, and hence rolling and other freight easily handled, had been carried to a considerable extent still, in small proportion to the quantity moved by Canal, for instance of Vegetable food there was moved in 1863 1854 1855 1856. New York Erie and i New York Central > 80,868 255,497 360,697 431,969 Railway. } N.Y. State Canals... 1,071,300 903,735 993,175 1,153,894 I! \^ i^ "M-- 15 V l^ Again, it is a fact well ascertained, and acknowledged by those acquainted with the management of railways in the United States and in Canada, that the actual cost of moving heavy freight by rail, is not less than one and a half (1^) cents per ton per mile, and that where freight is carried at a less rate than this a positive loss is the result. The distance from Chicago to Montreal by railway is 886 miles, and the cost of freight for the whole distance, at 1^ cents per ton, is $13'29, which for a ton of wheat (33^ bushels) would be 39^ cents per bushel, or for a ton of flour of 10 barrels, would be $1.32 per barrel. During the present season wheat has been carried by water from Chicago to Montreal at 1 1 cents per bushel, and flour at 50 cents per barrel, but even if w© add 50 per cent, to the rates of this season, we have rates less than half of those which it would be necessary for the railway to have in order to pay. From Toronto, 333 miles to Montreal, the railway rate at 1^ cents per ton per mile, would require to be 50 cents, and for wheat 16 cents per bushel ; we all know that 6 cents per bushel is deemed a fair rate by vessel, and 25 cents per barrel on flour are deemed fair rates by vessels. From Kingston 180 miles, the railway rate should be 8 cents per bushel, and 21 cents per barrel for flour. Vessels bring wheat for 3^ cents per bushel and flour for 10 cents. From these comparative statements, it is I think evident, that the rail- way cannot possibly compete with large sailing vessels in the transport of heavy and bulky freight, and that any attempt to do so, must result in a ruinous loss. I have shewn, that with our present means of transportation, we cannot move produce from Lake Ontario, down the St. Lawrence for the supply of Albany, !New York, or Boston, via Lake Cham plain, so cheap as it can now be moved via Oswego, to the same points, for the reason that as the freight from Montreal to any of the points named, is as high as from Oswego, there will be a diflFercnce equal to the cost of transport from Oswego to Montreal. These observations seem to me to shew that the railway cannot possibly bring produce to Montreal from the interior so cheap as it can be done by water. Having said this much, on our ability to compete for carrying "w»«»v. n; (* 1850, the annual loss has ranged from £190,000 to iS^i^^o/' 5^ /^r^/ is estimated that the commerce between the United STAT^a_|;ia«il "**^iic^ Western Canada alone affords a revenue to the State of NeNv^fJT for Tolls, of upwards of £500,000 per annum. If not only this trade, ^%^. but a share of the vast Western States' trade could be made to pass ^* through the Wclland and St. Lawrence Canals into Lake Cham- plain, and to the Eastern States, as the quickest and cheapest route, instead of, by Oswego and Buffalo, it is a matter too plain for argument that the public interest of Canada would thereby be vastly promoted. Having made this, as I think, clear, I shall now continue to show what effect such a work would have in diminishing the price of ocean freight at Montreal, or equalising the rates with those of New York. It will be conceded that the tonnage requisite to move the raw products of the Interior to the East, must always be greater, and has always been greater than the tonnage necessary to move the representive value of these raw products in merchandise of all kinds from the East to the West. This being granted, it follows that, to whatever point these raw products come to meet the merchandise from the East, at that point, there must always, in the nature of the things, be an excess of tonnage. For instance, I have shewn that Oswego and Buffalo are the Lake Ports in which the great bulk of the Western trade centres, but although the propellers and sailing vessels arrive there fully loaded with corn, wheat, pork, flour, &c., yet there is not enough of iron, steel, crockery, silks, cottons, &c., to load them all back to furnish them with return cargoes. Hence, some have to take in ballast, and others are only partially loaded. With such a supply of tonnage, freights from Oswego and Buffalo to the West are reduced to the very lowest or ballast rates, and this ele- ment in the cost of freight from the ocean Westward, has a pow- erful influence in attracting to New York, freight destined for the Western States. If the route was changed, as I have suggested, so that the Western vessels could descend the St. Lawrence to Montreal, or go into Lake Champlain, then there would always be at Montreal, or within call of her Merchants, any amount of return vessels, by which freights could be obtained at the same comparative rates current at Oswego and Buffalo. ■\ \t\ In the rivalry, tlierefore, to secure the clieapest point for exports and imports, the obtaining at Montreal that abundant and con- stant supply of cheap freights, now in possession of Oswego and Buftalo, \vould act powerfully in attracting to tha St. Lawrence, freight and passengers which now centre so ex(;lu3ively in New York, and just in pro[, option to the exlentof our power of at- tracting vessels with freiglit and passengers, up the St. Lawrence to meet the cheap Western freight, can we succeed in reducing ocean freights. The Atlantic voyage consists of two tri[)S — one out-hound, the other homeward; and if the vessel comes out in ballast, she cannot afford to carry freight home so cheaply as the vessel which brought cargo out. This at present is the case on the St. Lawrence, the great bulk of the ships come in ballast, and the voyage home has to make it up. At New York the vessel arrives with cargo, and can afford to carry back at a low rate. Mr. Tiautwine does not take this view of the trade on the St. Lawrence, and attributes the difference of freight to other causes, for iisstauce, he says : — "Now this idea of making Montreal the great transfer point of Wes- tern produce from Lake craft to sea-going vessels ; and the basing of the suggestion upon the firm broad ground of the almost uninterrupted natural water-course from the very head of our great lakes to Europe, are grand and comprehensive conceptions ; and tlie plausible minor arguments by which they are sustained, are calculated to excite our admiration, and to enlist our sympathies strongly in the cause. At first sight the position appears to be impregnable ; our judgment is taken by surprise, and we are disposed to acquiesce ia the assumption without cavil. But unfortunately there exist very cogent counter-arguments, which, if they do not entirely refute and invalidate the foregoing reasonings, at least tend materially to diminish their force, and to suggest doubts respecting the practical result of their realization. "We will brieily allude to some of the more important of these anta- gonistic views. " The most formidable perhaps is the opinion entertained by many gentlemen of high commercial experience and observation, that even in the event that Western produce should arrive in large quantities at Montreal, it would be Impossible to induce sea-going vessels to ascend 21 the St. Lawrenee to receive it. The exports of purely agricultural countries always greatly exceed their iinports in bulk or tonnage ; usually in the proportion of 3 or 4 to 1. Foreign vessels therefore going to Montreal for this supposed accumulation of We, tern produce, must go in ballast ; thus losing, as it were, ono half their voyage ; — whereas if they go to New York for that same produce, they can carry into that port a cargo which will be pretty sure of meeting a ready sale. " This consideration, therefore, must weigh more heavily with the Western producer, than that of a reduction of a few cents per barrel in the charges which he may have to pay to reach the more accessible sea- port, and must prompt him to prefer the other. " If this argument be correct (and it certainly appears to mo to be entirely irrefutable), then the export tonnage of Montreal must in a great measure be limited by that of her imports, and cannot be expected to augment in any greater ratio than they do. But as tlie population of Canada is rapidly increasing, and the demand for imported articles becoming proportionally greater, all precedent sustains us in the assumption that the exports will at least keep pace with them, although a considerable time may elapse before they will warrant any heavy expenditure for docks." Mr. Trautvvine's objections are here fairly put, and seem to him " irrefutable." Let us examine them. He says that " This idea of making Montreal the great transfer point of Western produce from lake craft to sea-going vessels, and the basing of the sug- gestion upon the firm broad ground of the almost uninterrupted natural water-course from the very head of our great lakes to Europe, are grand and comprehensive conceptions ; and the plausible minor arguments by which they are sustained are calculated to excite our admiration, and to enlist our sympathies strongly in the cause. At first sight the posi- tion appears to be impregnable : our judgment is taken by surprise, and we are disposed to acquiesce in the assumption without cavil." Now, what are "the plausible minor arguments" which are given in support of making Montreal the great transfer point of Western produce, and which Mr. T. acknowledges '* stands upon the fair broad ground of the almost uninterrupted natural water- course from the very head of our great lakes to Europe." I have shewn, tliat with the Welland Canal, adapted for vess.'ls of only 350 tons burthen, and with no outlets from Montreal or near it by which the Eastern consuming markets can be reached, so cheap- ly as from Oswego or Buffalo, it is impossible for property in any quantity to go below Oswego; and, by actual trade returns, I have sliewn that this is the fact as regards the trade not only of the Western Stiiies, but of Canada West. These statements go beyond plausibility, and are irrefutable. I again state, that if the Welland Canal was enlarged, so that the vessels of 750 and 800 tons which now trade to Buffalo could proceed down to Montreal and to Lake Charaplain, a route not only to Montreal but to all ports on Lake Champlain would thereby bo secured, quicker in point of time and cheaper in point of expense than any now existing, or than it is possible to make, through the State of New York. This is not mere assertion. The actual comparative cost of moving produce by canal, lake and rivers, has been thoroughly investigated and the results acknowledged by such men as Messrs. McAlpino, Keefer, Slianley, Kirkwood, Clark, Killalay,Childe, Swift and Gamble, names which Mr. Trautwine will acknowledge as giving weight to any statement on engineering. Messrs. Childe» Kirkwood «fc McAlpine declare, that with these works constructed and the enlarged Erie Canal in full operation, a ton of Western produce can be carried to Montreal at $2.V8, and to New York through Lake Champlain $3.76, while by Buffalo it would cost $15.30, and by the way of Oswego $4.40. Mr. Trautwine does not, in his Report, attempt to refute any of these statemeiits, which are endorsed by all the other mimes referred to, in which I entirely concur, and which cannot, I think, be placed among " the plausible minor arguments." They consti- tute the basis of all the hopes I have of concentrating a large part of the Western Traile at Montreal. If incorrect, the errors should have been pointed out by Mr. Trautwine. But he has failed to do so. lie has left the facts untouched. Now, what are the "cogeuL counter-arguments" of his own which, "if they tlo not refute and invalidate," at least "tend materially to diminish thoir force" ? Mr. Trautwino's remark "that the exports of purely agricultu- ral countries, always greatly exceeds their imports" is oxomplitied in my previous statements of the surplus receipts of agricultural products in Butl'alo and Oswego from the United States and Ca- nada, compared with the exports from these ports of merchandise. The Eastern United States are largely engaged in manufacturing ; they import their food from the West, and it is the surplus of auch receipts after supplying this home demand as previously stated, that is exported from New Yoik and other Atlantic ports, in vessels which, on their out-voyage bring cargo. It is by hav- ing this out-cargo, as has been before stated, that the ship at New York is prepared to carry back at cheaper rates than from Montreal. This is all true, but it must be borne in mind tliat the vessels coming to New York are loaded with goods, destined not for New York State alone, but principally for the Western States, and that these goods are shipped through the Erie Canal, to Buffalo and Oswego, and by this route, arc at present carried to the West cheaper than by the St. Lawrence route to the West. I say at present, because as we have seen, the downward or Western trade, does not extend below Oswego on Lake Ontario. (I moan to any considerable amount,) and the cheap freights and the facilities for handling cargo there and at Bufl'alo, and in the United States Atlantic Ports, that give the present superiority to the Erie Canal route over that of the St. Lawrence. Let us for a moment place the Lower St. Lawrence, with its imaginary fogs and dangers out of the question, and suppose that the irrefuted opinions of the engineers I have named arc correct, and that the cheapest and qiiickoit route by water from the Upper Lakes to New York and the EastorO States, diverged from the St. Lawrence at Caughnawaga. Would not the vess'jls car- rying Western produce into Lake Champlain and into the lludi^on, returning with the manufactures of the Eastern States, and with the goods brought by the foreign ships to New York, for distri* butioii in the \Vest, as they now do from Oswogo and Butlalo, Now, unlesrt Mr. Trautwine is prepared to deny the statements made by ail the ongineers named, it follows, that with the Welland Canal enlarged and the Canal into Lake Cliam[)lain built, for vessels of 800 tons, a cheaper route to the Eastern States would be opened «p, than any now existing by any other route, or will exist even "when the Erie Canal is enlarged. It is therefore evident that a Inrjfo share at least of the trade would (lass by that channel. Now, u i: the Montreal mercliant is seven miles from this great marine water-line at Caughnawaga, but in connection with it by a canal of equal size. With such a vast stream of trade within «even miles of him, let us enquire what grounds he has to expect any part of it. The produce having descended the St. Lawrence as far as Caughnawaga, must as we have seen, be either consumed in the Eastern States, or shipped from Atlantic ports. This produce ia partly wanted for immediate consumption, but the grc;itest part is stored in New York and elsewhere, and held by the merchant either for sale, for consumption or for shipment. I hold that all such produce, not immediately wanted for consimption, and in« tended to be held for a market, could be stored at Montreal in docks, cheaper than in New York, and would be at a point equally available to supply the Eastern demand for consumption and for shipment to Europe. Caughnawaga is distant from Liverpool via the St. Lawrence 2689 miles, and from Liverpool via Now York 3Sl5 miles, and 395 of this island navigation. According to the statements of Messrs Childe, Kiikwood and McAlpine, property from this port could be shipped by vessel at Montreal and landed in Liverpool at 17 cents less per barrel, (after a handsome allowance against the St. Lawrt-nce route for towage) than by the way of New York. There being this saving on the voyage to Liverpool, does it not seem reasonable to conclude that there would be an equal saving on the freight of goods destined for the Western States, coming through the St. Lawrence. In distance to Chicago the saving from Liverpool would be 089 miles. The ship coming to Montreal could transfer her cargo, with the Lake vessel, mak- ing only one transhipment against two by the way of New York, with 103 miles of canal navigation, ngain«t 211 miles by the New York route through Lake Chainplain. In time also, the advan- taire on both the up and down vovaLje is verv much in favour of tlie St. Lawrence route. On the Erit; Canal the voyage from BulVulo to the Hudson, occupies aboutjtliirtoen days, while Montreal can be reached from the Wdland by propeller in four, and by sailing vessel in six days. It' the Chaui[»laiu route was in opera- ) V 25 tion, Montreal would then have a command of the lo'.v freight Westward for the cargo of the o»;ean vessel coming up the St. Lawrence. What then is to prevent the import of the Avhole supplies for Western Canada and for the Western States, through the St. Lawrence. Imports from abroad are admitted to entry for customs duty at the ports on the Western Lakes on the same terms as at NewYork, namely, direct import with American Consul's certificate, and I see no obstacle to prevent branch hoiii-es from Montreal and Quebec being established in Chicago, Milwaukie cr elsewhere, and imports made through the St. Lawrence for their Bupply. At present, with Oswego, the largest port on the Lakes, from which the Eastern States can bo supplied, it is impossible that this trade can be done. The Government of Canada too, have aided the American merchant to compete with the Canadian merchant by a system of specific duties, while the American Gov- ernment adopt the ad valorem system. The system, of specific duties although false in pri^fAiple, is still in force. It obliges importers to pay a highduty on common goods, and on the highest priced goods the lowest duty. Nor is this all. Specific duties are almost exclusively charged on articles of bulk and weight, and it is bulk and weight wc so much want, to give cargo to the outward ship, and thus furnish return cargo to the interior vessel. It will be found that the weight of the goods on which specific duties have been charged, will average for the last three years 50,000 tons, more than equal to the whole of thet onnago of Bailing vessels from sea to Montreal in 1858, of these goods paying specific duties in 1857, £1,087,820 came from the United States, and only £270,724, from Great Britain, the British Colonies and other Foreign Countries. One of Mr. Trautwino's cogent counter-arguments against the St. Lawrence route, and of course against any Docks, is " the high rates of insurance incident to the navigiition of the Kivcr and Gulpli of the St. Lawrence." On this point I deemed it l»est to write a note to Mr. Hart who has acted as the agent in Canada, for the "Sun" and other Marino Insurance Offices in New York for several years, and the following is his reply : — 26 Montreal, 4th December, 1858. " Your letter calling my attention to Mr. Trautwine's report, and re- marks on the subject of Insurance by the St. Lawrence route, I have to acknowledge. This gentleman depends a good deal on hearsay, and the old bug-bear of the dangers of the St. Lawrence, seems to have been one of his strong points against the successful use of the St. Lawrence route. Some 8 or 10 years ago the rates of premium on the St. Lawrence were about double the rates now paid, and the cause was very apparent. Then, any vessel that could float was employed, in the St. Lawrence timber trade, and if, by any representation, this class of ship could get insured, it most probably ended in a sale of the vessel to the Under- writers ; therefore the frauds practised on the Underwriters were put down as losses from the dangers of the St, Lawrence Navigation. What are the facts ? As you and others know, the rate at present be- tween May and October, is the same premium as charged from New York and other Atlantic ports of the United States. In October and November the rates would average double those charged from Atlantic United States ports, but when you take into consideration that the im- provements on the St. Lawrence of Light Houses, Tug Steamers, Har- bours of Refuge, have all been brought to bear within the last 5 years, the losses now by the St. Lawrence are reduced perhaps to the lowest per centage, taking the number of ships from the port of Quebec as compared with New York or Boston. Out of a fleet of about 1200 vessels that cleared from Quebec this y«ar, we know of but eight losses, a new ship and two old ones in the Gulf of the St. Lawrence, the other five were abandoned at sea, (out of the Gulf of the St. Lawrence) no doubt old and poor craft. I am con- vinced that a reduction by the St. Lawrence routes, on the October and Kovember rates of Insurance, will be made for the coming year, and from my experience, feel satisfied that the winter rates of premiums from the Atlantic Ports of Britain or the United States, will bo as high, if not higher, than those to be charged from the St. Lawrence for Oc- tober and November risques, within next three years. The Underwriters are now finding out that the best passages and finest weather for leaving the St. Lawrence, are between the I5tli of October and 15th of November, avoiding the gales generally prevalent between 15th September and 15th October on the Atlantic. Yours Truly, THEODORE HART. Tlio following is the cviilence of Captain C. L. Armstroiinr, at present SuperiutenJontuf Lake St. Petor Works, lately Insurance 27 Agent for the New York oflSces at Quebec, and thoroughly ac- quainted with the whole of the Gulf of the St. Lawrence, as given to Messrs. Childe, McAlpine and Kirkwood, but not before pub- lished : — Navigation below Quebec, opens about the twenty-secoud of April, that is for ships from Europe. A small craft came up to this port as early as March. I crossed in an open boat on the 26th of March, 185G, between St. Flavien and the Manicouagan Shoals (about one hundred and seventy miles below Quebec), a distance of fifty-five miles. I have had a good deal of experience, as commander of ships below Quebec, and as to fogs in the Gulf of St. Lawrence, below Quebec, have to state that the river and gulf, to the north of Newfoundland and Gaspd, is much more free of fog», than on the coast of Nova Scotia and New Brunswick, and there is no reason whatever why the whole route to sea from Quebec, should not be made as safe as the route to Europe from the Atlantic ports, provided that lights could be constructed on Bird Rock, Cape Augille, nine lights in the Straits of Belle Isle, Manicouagan Shoals, Onehetedan, Cape Chat and Metan, on the Brandy Pots, and on© on Hare Island Reef, Kamouraska, Crane Island, two leading lights at Berthier, and one on Point St. Lawrence. Tlie Gulf, above the Straits to the Port, is generally clear of fogs, while the whole coast in the straits and above, abound in natural har- bours, up to this time but little known. The general time of a sailing ship from Quebec to Liverpool, is about twenty days ; and the same ship, in my opinion, would take two or three days longer from Boston, and about five days longer from New York. I mean in the voyage from Quebec through the Straits of Belle Isle. No more expense is incurred to navigate the route from the St. Law- rence than from New York or Boston, except Insurance, which is the same during tlie summer months, but after the middle of September the rate advances, and there is a difference between the latter part of No- Tcmber, against the St. Lawrence of about thirty to forty per cent. ; but this dilFerence ought not to exist, and will not in my opinion exist, when the St. Lawrence below Quebec is projjcrly lighted ; but this dift'erence does not exist to the same extent as regards steamers. The townge of a ship from Quebec to Montreal, of fifteen hundred tons, drawing eighteen and nineteen feet, will cost £02 lOs., and one-third of tbis amount less, towed down. Vessels often save towage by sailing down, — about one-third of the Tcssels sail down without towage. It is cheaper to tow fifteen hundred tons in one vessel than iu several : 28 the co3t, in my opinion, would be fully one-third less, or nearly one-half. The rates of towage would be lessened very much by an increase of the number of ships requiring to be towed. Fifteen years since, the (rates of towage were much higher than at present, in consequence of the want of competition and the small num- ber of vessels to be towed. An inducement for vessels to be towed down, is the fact that only half pilotage is charged for vessels in charge of a steamer. That he was acquainted with the route through the Gulf of St. Law- rence, and Straits of Belle Isle ; that it was clear of shoals, and was generally preferred by all the Captains to whom it was known. Up to the present time this channel, by the Straits, is in its natural state. It abounds with natural Harbours of Refuge. It is eighteen miles wide at the entrance, and nine miles at the narrowest place, and is about fifty miles long. It is now proposed by the Government to light the whole Gulf through- out so that Navigation may at all times be within view of some of these lights. Fogs are not at all prevalent on the North shore of the Straits, and a'ong the coast of Labrador, although more or less so on the rest of Newfoundland. Vessels can occasionally leave Quebec on the first of April ; steam ressels could come up to the River du Loup by the first of April, and there discharge freight for Canada. The Railway is now completed forty miles below Quebec, and is proposed to be e::tended one hundred and ten miles. The Spring tides at Quebec are twenty-two feet, and the neap tides fourteen or fifteen feet. Tlie Trinity Board of Quebec also gave the following evidence on the same subject : — The voyage to and from Quebec and Liverpool has, imfortnnately for the Canada trade, been too long considered both difficult and dangerous in comparison witli that of the Atlantic ports in Nortli America, but practically it Is believed, the facts do not bear out that opinion. The Gulf and River have been carefully and accurately surveyed, the chains are good, the soundings well noted, the lights (being greatly increased in number) the buoys, beacons and signal guns are all advan- tageously placed, and taking a fair avcrngo of the losses by way of the St. Lawrence, it may bo found that they are not greater, but rather of less extent, with reference to the number of ships employed, than the losics on the coast and approaches to the Atlantic sea-ports. 29 Take one instance in point. A most extensive ship-owning honse, who are their own underwriters, only lost two ships during eleven years, out of 40G owned by them, engaged in the Quebec trade. The river risks are also greatly lessened upon such sailing ships as avail themselves of the powerful tug-steamers, now plying on the Lower St. Lawrence. Harbours of Refuge are not required, the sea-room below the Island of Bic being ample, and the anchorage under the lee of that island oflfer- ing suflicient security for vessels seeking shelter there in stormy weather. Old Bic harbour might be improved by piers and a wharf, so as to enable the steamships and sailing vessels to discharge cargoes there in the month of April, so soon as the railway now in progress is completed to Rimouski ; thereby enabling merchants in the west to get their goods and ship their produce a month earlier in the Spring, and nearly a month later in the Fall, than they now do. From Quebec westward the internal improvement in aid to the vast expanse of lake and river navigation, are of such extent as to afford every facility for the employment of any number of propellers or sailing vessels, as the trade may require. The advantfiges of the St. Lawrence route for goods and passengers, as compared with that by the Atlantic Ports, are obvious : the distance is shorter, one-third of the voyage is comparatively in smooth water, and it is less costly ; it needs only a glance at a map to see tliat the TOO miles from Quebec to Belle Isle are through a land-locked channel, and admitting that the rates of passage by steamer whether from Liverpool to New York, or Boston, or Liverpool to Quebec, were about equal, the great gain to tiie emigrant would be from Quebec to the West, suppos- ing his destination to be Chicago or Wisconsin, he would be transported with his family, either by rail at $7 per adult, or by propeller at $4 per adult ; wliereas from the Atlantic ports, he would have to proceed by rail to Buffalo, and thence by steamer at $8 J per adult, or by rail to Chicago, at a cost of $10 per adult. Mr. Ti'ixutwlne says : — Another argument against the possibility of securing this monopoly, is the fivct, tiiat the harbors of Sew York and Portland are open and accessible during the entire year, while that of Montreal is annually closed by ice for five months. Constancy and regularity arc rapidly becoming more essential features in tlie transaction of heavy commercial operations between distant countries, and neutralize to a great extent the advantages whicli attach to long water communications subject to SO serious a drawback as an entire suspension of business for five months annmlly. The business connections which must necessarily concen- I 30 trate upon New York and Portland the great bulk of Western commerce during nearly one-half of the year, cannot be suspended and renewed periodically in favor of Montreal during the other half. I hold a contrary view to this, and state that the Port of New York, or any other Atlantic port, is as effectually closed to Wes- tern trade by the cold of winter as is Montreal or Quebec. On this point Messrs. Childe, M* Alpine, and Kirkwood wrote as fol- lows : — The more Northern portion of the St. Lawrence route may lead to the assumption that it remains closed by ice later than the New York routes^ But such is not the fact. The great body of water passing down the St. Lawrence, and its derivation from the Upper Lakes, the waters of which never attain the low temperature of the streams within the same region of country, seems to more than compensate for the more Nor- thern latitude of this route. The Tables in the Appendix will shew the dates of the first arrival! of sailing vessels at the Port of Quebec (indication of the River being free of ice), and the dates of the opening of the Port of Buffalo, and of the navigation upon the Erie and the Canadian Canals, (i) The first has been furnished by the Trinity Board at Quebec, and the others have been taken from the report of the Canal Commissioners of the State of New York, from the Reports of the Canadian Board of Works, and other oflScial reports. The following is the Table referred to above, and is the result of a careful compilation from official data : — 31 nerce lewed New On I fol- othe lutes I the rs of same Nor- ivali »eiBg d of L the •3 of ■dof suU s a a vi O a 09 O I o 03 00 tJ '^ a o « 00 ® e .a o d - o o> d d to e3 o9 • ■w d o ^ d °3 I- d 03 .a d u o o m -s m ffH • >-4 lO , >a to o CO N M i-i ?-H -o . 4» • m . O 3 o ; d o d 01 d OJ -§ 00 Q : Q ^ Q CO O (M IM © 00 in © r-t o 13 a> d M cq • M »-i N r^ -u ,__, a, O 1 ^ : ^ o O -a a ^ © ■* v> "To © la e^ o © 'r3 fO e^ N IM I-H m _ • o > o ', d > « o o o 1-! O o IN Q o c If 5 -« t3 'a -a C5 « CO ) o C in CO i-i tJ C4 • l-H IM ph -c r: « CJ d ^ p^ : a -s ^ O Oi o <1 ^ : o e^ 1- © 'n N rH 00 r-l I-H a> ta • , O c5 ; d t» O o o o o © 00 O ^, <^ -« rO rO -a (N o ir CO 00 00 M i-H O t- rH 13 ^- -a 1 • l-t ei o o o «o a> IM C5 »0 O 00 t3 eq • • N PH 00 If s . t- 00 • rH PO f-H rt u d o 4 -^ e> ) . I-H N M < c 5 : U o : a 'C ft o in C-l f-H A 00 I-H 'o N N ei 0) o • d ! ! ' ! d ; d d ' « ! . « o 4 '3 "O 00 O : Q : : Q !?: . o ■1 00 r n • 00 w IH • r^ ■* -O 1- H M • pH eq a> d Ij Em ■| H - p-4 (»^ : t^ ' *t-i o Ch C a, • ft 03 • o; ft 13 O ■< < ^ : < a . a : < c ( ( e ^ i r ego treal d 0} • i i 3 & -3 d ;: H a ^ d 3 m o d H "* 1 C 03 o < ? w p q o a o- =«5 5 anu wall V t ^ "s c .a 3 -C 1 o o o rfl rO o - •? & > < 3S ©" u oe t-H -t C4 ( "0 «J< w CO r- ■ON 82 bO bo bo 38 " The mean for the last ten years, as derived from these tables, is as follows : Opens. Closes. Straits of Mackinaw April 14 December 6 Port of Hamilton do 1 do 28 Do. Buffalo do 14 do 14 Do. Oswego March 20 Do. Montreal April 20 December 11 Do. Quebec do 29 November 24 Do. I3ic March 16 December 19 Erie Canal April 28 do 7 Welland Canal do 8 do 12 Cornwall Canal do 25 do 8 Lachinc Canal do 28 do 8 St. Lawrence River, between Lake Ontario, Montreal, and Lachine . do 26 do 7 Do. between Montreal and Quebec, do 24 do 10 " Taking into account the difference in time between the voyages from Lake Ontario to Albany or Quebec, and the dates of the opening of navigation on the two routes, it appears that the navigation is open about five days earlier and is closed about one day later on the St. Lawrence route than it is on the Erie Canal." It is thus evident that the Welland Canal has, on the average of the last ten years, been open to commerce twenty days earlier and five days later than the Erie Canal, and that the port of Mon- treal is also open eight days earlier and four days later on the average of these ten years than the Erie Canal, so that the only communi- cation after the close of navigation which Portland, Boston, and New York can have with the West or Western Canada is by railroad ; and Montreal is nearer, on an average, to all these cities by rail than either Oswego or Buffalo. In these remarks on the capability of the St. Lawrence to com- pete with the routes through tbe State of New York, I have contended that the port of Montreal can be made the cheapest and best point for the transfer between the ocean and the interior vessel. Mr. Trautwine demurs to this view, as the following ex- tracts will show : — " Again, it is urged against docks, that there is no special reason why the Lake propellers should not pass through the outlet lock of the 34 Lachine Canal at Montreal, and continue their voyage down the St. Lawrence to Quebec, there to meet the sea-going vessels ; instead of requiring the latter to ascend the river to Montreal to meet the former. It is true that neat calculations have been made, which seem to show a slight preponderance, on the score of economy, in faVor of the large steam-vc^sel going up and down, over two of half her tonnage going down and up. But the difference would in itself bo too trivial to con- stitute in itself much more than a theoretical argument in favor of docks at Montreal." " Again, the completion of the Victoria Bridge, for carrying the Grand Trunk Railway across the River St. Lawrence at Montreal, will open to that railway an uninterrupted line from Canada West to the seaport of Portland in Maine, and to Quebec. The efiFect which this road has already produced upon the Lake craft, driving many of them out of the business of transporting Western produce to Montreal for foreign ship- ment, gives every reason to suspect that when the Victoria Bridge shall relieve the Company from the necessity under which it now labors, of placing their freight in barges, and towing it across the river, a much greater proportion of Western produce will be carried by it past Mon- treal to Portland and Quebec ; perhaps so much more as to retain Montreal nearly in her present condition, or at least to prevent that rapid increase in her commerce which many predict. Such of it as is put upon the railway at points westward from Montreal, and destined for shipment to Europe by way of the St. Lawrence will certainly not stop in Montreal, when in a few hours it can be carried to Quebec, 180 miles further." In the opinions thus expressed, Mr. Trautwine is supported by Mr. Blackwell, the representative in Canada of the Grand Trunk Company, who states in his Report of last September to the London directors : — "The lower sections of the line, from Montreal to Point Levi, St. Thomas, and Portland, may be said to call for no special remarks, ex- cepting their want of connection by means of the Victoria Bridge with the western section. This link is so essential, that no correct estimate of the through traffic can be formed until it is completed, and without t we shall never be able fully to take advantage of the great facilities which will be aflforded to Quebec shippins- on the completion of the Pointe Levi docks, to load and unload Western goods and products. These extensive works, together with the wharves of Messrs. Forsyth & Co., and the additional accommodation we are aflfording the ocean steamers at our wharves, will undoubtedly be the means of securing to 35 ■J ft I 1 We3tern-bound traffic which at present finds it way up the St. Law- rence to Montreal, so soon as our freight trains can cross the river at Montreal without break of guage or bulk." These are statements wliiuh iiftect not only local interest?, but the interests of the Province ; for if true, it would appear that our intercommunications need not be improved, that docks are unnecessary at Montreal, and that, when the Victoria Bridge is completed, the great bulk of the Western trade will be carried by railroad past Montreal to Quebec. I have in another place demonstrated by facts the utter impossibility, during the summer season, (when freights rule at from 11 to 16 cents per 60 lbs. of wheat from Chicago, or in the same proportion at other phvces,) for the railroad to compete in heavy freight with the sailing vessel to Montreal. Now let us examine how the facts bear out the views of Mr. Trautwine and Mr. Blackwell as reffards the power of the Quebec and Portland railways to compete witq the ocean and river vessel from Montreal in the transport of pro- duce and merchandise. I have before stated that it is a received opinion among rail- way engineers and managers that to make any profit whatever in the carrying of heavy freight by railway, it is imperative that at least 1^ cent per ton per mile should be received. The cor- rectness of this principle has been acknowledged by the Grand Trunk Company in their refusal to take a less rate for flour to Portland than 45 cents per bbl. from Longueuil. I have my- self sent over the Portland railway upwards of 100,000 bbls. of flour, and in no instance could I get the rate reduced below 45 cents, the agents affirming that it loas impossible to takt it less. The distance to Portland is 292 miles, which at 1^ cents per mile would be 44 cents per bbl. of 10 bbls. to the ton. The distance to Point Levi, opposite Quebec, is say 180 miles, so that for every barrel carried to Point Levi it would be requisite to receive 27 cents to save from loss ; and for every ton of goods upwards the rate would require to be $i.lO. For wheat, at 33^ bushels to the ton, the rate Avould require to be 8 cents per bushel. The following letter from Messrs. L. Renand & Frere, copied from the Appendix to Messrs. Childe & M' Alpine's Report, shews 36 that flour is carried by river craft from Montreal to Quebec at 6 J cts., and wheat and other grain at 2 J cts. per bushel. The rate of insurance between Quebec and Montreal does not at any time exceed one half per cent. MoNTHBAt, 13th November, 1857. " As to the freight from Montreal to Quebec on Flour and Wheat, we have to saj that the same is lower this year than we have ever before known it in our experience. The lowest freight for Flour to Quebec by barge (usually of 150 tons) this season, has been 6J cents per barrel of Flour, and for Wheat and other grain 2i cents per bushel. By steamers of 750 tons, such as navi- gate the Upper St. Lawrence, or by the Mail boats, the rate has been usually 12 J cents on Flour, but very little grain is sent by this mode of conveyance, but is carried generally at proportionate rates to Flour. We had three barges engaged in the Quebec trade ; the lowest freight this season of Coal and heavy goods has been 5s. Gd. per chaldron, up, and the highest 73. 6d., or about G». on an average, while occasionally we have had as much as 10s. for bringing Coal from Quebec, per chal- dron. (Signed) L. RENAUD & FRfeRE. P.S. — The rate of Freight on Flour and Wheat, as above by barge, ii exclusive of towage, which is about i)12 10s. for a barge of 150 tons. L. R. & F. T'liO following statement of the actual expenses between Mon- treal and Quebec, of a ship of 101.3 tons burthen per register, was furnished by Andrew Sliaw, Esquire : — Ship «' Pride of Canada," 2nd Voyage, 185G. £ B. d. £ 8. d. Lake dues downwards, i 1013 Tons 9d., 37 19 9 Pilotage down, 6 7 6 Towage to Quebec, 36 Lighterage, 61 6 Do. 16 Do., 35 . 101 6 Ton days' Wharfage, 1013 Is. 4d., 10 11 X189 18 9 37 On board leaving Montreal, Minots Corn, 31950 Draft 15, 8J feet, Lightered and talten on board at Quebec, 14116 460GG In all 4G066 Minots Corn delivered in England 5942 Quarters. Montreal, 13th November, 1857. Lake dues upward, £37 19 Pilotage up, 8 5 Towage from Quebec, 90 Wharfage, 10 11 £146 15 D The cost of moving the 31950 bushels was as near as possible 2 2-* cents per bush., and as the channel is now deepened, so that the whole 4G066 bush, could be taken on board at Montreal, the cost vvoiild now be 1 3-5 cents per bush. ; and on the up freight, supposing the 1013 ton ship to carry in dead weight only 1150 tons, the cost would bo 66 cts. per ton, the freight by sailing vessels would stand thus : — TO PORTLAND. "Wheat Flour per bush, per brl. c. c. Ry railway, 13 44 By river craft, 2} By ocean ship, 1 ^ TO QUEBEC. Wlieat Flour per bush. per brl. c. .... 27 .... 6i .... 5i 0. 8 Even if these rates by water were doubled, still the railway could not compete. The same difference exists as to up freights. TIic cost of bringing ocean steamers up to Montreal is shewn by the following statements, furnished by the agents of the seve- ral vessels, and all go to shew the superiority in cheapne«s of these vessels coming to the port of Montreal, which, of course, will be still further increased if tlie Lake dues are abolished and the necessary facilitici for loading and discharging crouted. 38 ■II I •Steam Ship " Caledonia," total measurement 1000 tons Register. Ton- nage T98 (deducting engine room), Quebec to Montreal and back. QCBBEO TO MONTRBAL. Pilotage upivards, £16 Wharfage, 798 tons — 3 days at jd., •• 8 6 3 Lake dues — 798 tons upwards, at 9d., 29 18 6 Coal consumed (supposed), 20 tons, at 20s., 20 £74 4 9 MONTKEAIi TO QUEBKC. Pilotage downwards, 10 15 Wharfage, 798 tons — 5 days at J d., 8 6 3 Lake dues — 798 tons downwards, at 9d., 29 18 6 Coals consumed, 15 tons, at 20s., 15 £63 19 9 Recapitulation. Expenses upwards, 74 4 9 Do. downwards, 63 19 9 £138 4 6 Statement of ecrtain expenses incurred by bringing the Steamers belonging to Montreal Ocean Steam Ship Company above Quebec, on an average of three voyages in 1856, when the water in the river enabled them to come up, drawing 15 feet 3 inches :— Pilotage above Quebec, up and down £27 Lake dues 87 10 Wharfage at Montreal 24 10 Small Steamer, assisting out of harbour 6 6 Lighterage up, £125; Lighterage down, £100 225 Coals consumed up and down 100 470 I Note. — One of these Steamers arriving at Quebec, with a full cargo, has on board about 1000 tons poods ; of which, on an average, there may be 200 tons for Quebec, 4( tons for Montreal, and 400 tons for places west of Montreal. She then draws 17J feet water, and after disclmrging the Quebec goods we have to lighten up 320 tons, at a cost of 7s. 6d. per ton, and downward the same, at about 6b. per ton. (Signed,) EUMONSTONE, ALLAN ht Co. Montreal, 23rd Vovcmber, 1857. • Furnished by II. L. Routh & Co. i f 39 These are something more than "neat calculations," and, to my mind, are conclusive that, even when the Bridge is finished, produce (if we had it to send,) cannot be carried by rail, either to Portland or Quebec, for shipment by sea, so cheap as it can be done from Montreal ; and from the relative freight above Montreal being higher than below Montreal, where the competition of the ocean ship begins, it is not probable that it will be found cheaper for the interior vessel to proceed to Quebec. In proof of this position I give the following statement from the three largest and oldest forwarding houses in Canada, as furnished to Messrs. McAlpine, Childe & Kirkwood : — The undersigned, who are largely engaged in the forwarding bnsinesa between the Upper Lakes and Porta of Montreal and Quebec, do hereby certify, that the rate of freight from Quebec to Montreal by sailing ves- lels, for heavy goods, has varied this season from one dollar to eight ■hillings per ton, while the rate for grain, from Montreal to Quebec, has been from 2} to 3 cents per bushel, and for flour five and a half to ten cents per barrel. The rates for some years back have not varied much from the above. Although we occasionally are compelled to send our steamers with freight to Quebec, we do so with reluctance, finding, as we do, these rates of freight unremunerative. Out of many strong grounds of objec- tion to tliat poM, we merely state a few, viz : — The detention caused by the limited accommodation for loading and discharging at suitable wharves ; the great detention from the tidal hours, and the serious risk of grounding at low water. We tind tliat our freight steamers occupy nearly %t much time in a trip from Montreal and Quebec, and back to this place, ns hcnco to Toronto and back ; while the earnings of the steamer during that time, will not exceed one-third the amount gained by her on the latter trip. The freight from Quebec consists chiefly of salt, coals, railway iron and fish, articles which require nice calculation to avoid loss to the Importer and forwarder, leaving but a very narrow margin for profits. The freight to the interior being necessarily low, prevents the loading of steamers with such freight except in part; and hence it is that th«y cannot visit profitably a port where only freight of that description can be iiad. Sailing craft, wliich are run at less expense, are cousc'iuently eniployod l)etwocn Quebec and this place ; and such is the uncertainty of the traffic, that in part of the months of May, June, Sejitcmber and October, the simultaneous arrival of a few ships laden with freight of the above description, caused the advance of freight by river craft from I ! 40 ■A Quebec to Montreal of from fifty to eeventy-five per c«nt. As no fore- Bight on the part of the importer or forwarder, who contracts for the freight through, can guard against such occurrences, they lose heayily by the advance of freight beyond its average range. In confining ourselves to the foregoing remarks, we trust we have said enough to shew that steam-vessels, or others adapted to the trade of the interior, cannot go below Montreal for freight at unremunerative rates. (Signed,) HOOKER JACQUES & Co., " JONES, BLACK & Co., " HENDERSON & HOLCOMB. Montreal, 19th November, 185T. I have no doubt Mr. Blackwell will change his opinions in re- ference to the cost of transport between Montreal and Quebec after a longer residence in Canada ; but it is much to be regretted that it should be gravely asserted in an official document, by a gentleman at the head of such aline of railway as that of the Grand Trunk Railway of Canada, that its success depended on the com- pletion of the Point Levi docks, Messrs. Forsyth & Co.'s wharves* and the Victoria Bridge. I predict that when all are finished, in the absence of other works, this railroad will be as powerless as it is at present, in attracting any considerable portion of that great stream of traffic, which flows past Lower Canada, into the United States, over the Suspension Bridge, and through the State of New York. li the whole exports from Montreal in 1858 of wheat, pease, oats, corn, barley, flour, oatmeal, beef, pork, lard and butter, were carried by railway to Quebec, even at the rate of 1^ cnts per ton per mile, the whole amount of gross receipts would only be £41,941 ; a sum wholly insufficient, even including other receipts, to pay interest on capital invested in the 180 miles to Quebec, and supposing the road to cost only £5000 per mile. The success of our Canadian railways is dependant, in my opinion, on a totally different line of policy; and, strange as it may seem, on the success and superiority of our watr lines of transport over those of the State of New York. T have shewn that the great flow of trade from the Western States and Canada West is through the Erie Canal, from Buft'alo and Oswt'go. The railways running parallel with this line of navigation are the 41 i most successful on this continent ; and although they carry but little of the heavy freight, yet they are fully employed, carrying light and valuable freight — hogs, cattle, and sheep — which can afford and pay a much higher rate of freight than flour, wheat, &c., that are moved by sailing and steam vessels. Passengers follow the stream of trade ; and, while the railway lines from Buf- falo and the Great Western Railway passing over the Suspension Bridge are crowded with passengers, the Canadian or Grand Trunk line below Hamilton is comparatively deserted. Tlie same foresight which expects such wonders to result from the Point Levi docks, Mr. Forsyth's wharves, and the completion of the Bridge at Montreal, also anticipates enormous results from con- necting the Grand Trunk Railroad with Michigan Roads opposite Sarnia. These mny pay from being in the American line of bu- siness, but they will prove merely feeders to the great New York lines, and fail in any way to attract freight or passengers below Hamilton. And this state of things must, in my opinion, continue until, by the enlargement of the Welland Canal, the improve- ment of the Rapids of the St. Lawrence, and the construction of a canal into Lake Champlain, Montreal is made a depot, where Western produce can be stored and held, for shipment to New York, Boston, Portland, the Lower Ports, Britain, or else- where. I have attempted to shew, and have supported my views with the testimony of eminent Enginers, (always excepting Mr. Trautwine), that with these works completed, property from the West could be laid down .it Montreal at less cost than at any other point, for export by sea, or for distribution to the Eastern States, and that imports could be sent to the West via Montreal cheaper than is possible by any other route. In the proportion, therefore, as we succeed in making the great water-lines through Canada to Montreal and Lake Champlain superior to those of New York, just to the same extent will be the success of our railway system ; and, while the sailing-vessel and jiropellor might be employed in carry- ing the heavy and bulky freight, the railways in Canada would be employe :-, 49 not inclucling damages to proprietors for streets closed up, nor dan)ages to lease-holders of water-power on the canals for closing their mills and factories during the enlargement of the canal. Let us now examine Mr. Trautwine's estimate for the docks at Point St. Charles. According to his figures the cost will be $3,087,878. ]Ir. T. adds 25 per cent for continp^encies, of hazardous con- struction, $3,087,878 I have reason to believe there is no necessity for adding more than Mr. Forsyth does, say 10 per cent, and enquiry on this subject brings me to the same conclusion, 308,787 $3,396,665 Mr. T.'s dock on his own plan has a lift of 25 feet, cost for this $469,876 Yet he makes the cost of a lock on Point St. Charles Scheme of 20 feet lift, 583,441 Upon enquiry from good authority, deduct difference, 113,567 Mr. T. estimates for the whole of the 11 piers ; 4 only necess- sary at present, according to Mr. Forsyth's plans, deduct estimate for 7, 158,802 Lock K, connecting Lachine Canal with dock, is a Govern- ment work, and is on the Lachine Canal lands, and will no doubt be constructed by the Canadian Government. . 133,267 Filling up lots not at all necessary at present, as parties pur- chasing will prefer building on the rock and geting cellar room thereby, 209,953 $616,587 There is left by the arrangement of this scheme of docks 121 lots 50X90, which, in such a position, are surely worth £250, but I estimate them at only JC150 each, $121,000 Cost of the docks at Point St. Charles, according to Mr. Trautwine's estimate, $2,660,078 Against $2,448,938 for the project through Griffintown. I have examined Mr. Forsyth's detailed estimates carefully. The prices for the various kinds of work diflfer from the prices named for the same work in Mr. Trautwine's estimate. On fixing his rates however, I am aware he spared no trouble to get correct D do iuformation ; and I had also the testimony of the late Captain Cliilde, a man of great practical experience in his profession, that afier a careful examintion of Mr.Forsyth's estimates, he found them amply sufficient to cover the whole expense of the Tail-Race and docks, not including the 7 piers, nor the lock to connect with the Lachino Canal, nor the earth filling at 0^ in Mr. Trautwine'a plan, and I have the most perfect confidence that Mr. Forsyth's estimate for the whole work of $2,040,000 is correct and reliable, in winch opinion Mr. Forsyth is also supported by Messrs Brown & Wa.son, who understand the nature of such a work as well as any contractors in the country. As Mr. Trautwiiie says, " it appears to me utterly iinpossible to hesitate between the two plans." By the one there is no water power, and can be none without a very considerable enlargement of the Lachlne Canal. In the other, the finest water power on this continent is made avaihible for public, purposes. Messrs. Childe, McAlpine, and Kirkwood, on this subject, remark: The value of a water-power thus located will be appreciated, when it is considered that throughout the whole grain-growing region of tbo West, there is almost none, certainly no amount of water-power at all adequate to the manufacture of the immense quantity of the cereals which must be exported from that region. The value of such a power is enhanced by being located in close con- tiquity to the dense population along the Atlantic, where the Oflfal has the greatest value, and it is also increased, because it can be direct- ly reached by Lake-craft without transhipment or drayage. The whole available power at IHackrock, Lockport, Rochester, and Oswego has luready been occupied. These places arc at a great distance from the sea-board. At Black Rock and Oswego, the Lake Vessels can discharge grain into the Uouring mills, nnd the nianufacturad flour con be loaded directly from the mills into canal boats. At the other places named, graia to be floured must bo subjected to an extra transhipment, the coat of canal transport, and, in many cases, to an expensive drayage. The plan of the contemplated Harbour of Montreal, provides for a large water-power, with the means of increasing it almost without limit, and is so located, that Lake vessels may discharge their cargoes of Grain de- signed for manufacture, lying alongside the tlouriug'mills, and the grain ■'^ 61 and I go manufactured can be delivered on board of the ocean ships or steam- ers, as well as on cars for direct transportation to the East, without dray age. The rapid growth of tho trade at Oswego will best serve to illustrate the advantages which would be enjo3'ed at Montreal, by the construction of the proposed works. The present condition of the trade at Oswego is not alone duo to the cheapness of the greater length of untaxed Lake navigation which it enjoys, combined with the advantage of receiving and manufacturing Grain, without the expense of transhipment or cartage. At the Port of New York there is no water-power, and Western Grain designed for export from that Port, is subjected to the expenses of tran- shipment at the place where it is manufactured, or to the extra cost of the transi)ort of the raw material on the Ocean. These expenses will be obviated by the consignment of Grain to Montreal, and it will there have anotlier advantage in the better condition in which tlour will be shipped, as the barrels will not be liable to any damage or loss in the exposure uf the weather. This cannot be assumed at less than twenty- five cents per barrel, or five per cent on ♦he cost of the article. Mr. Trautwinc admits that this plan of Dock is better atlapted than any af the others to an economical application of its suridus water to milling purposes, inasmuch as the tail-water would dis- charge directly into the river, thus avoiding the expense of a long tail-race. But Mr. Trautwinc differs \,'\i\\ Messrs. Childe and McAlpino as to the advantages for milling flour at Montreal, and as to the amount of damage by the exposure of that article in its transit from the interior. I have had some e.xpcrionce in such matters, and fully confirm all that is said on this point by Messrs. Childe and McAlpine. It is not so much the loss of small portions of the tlour by carting, or by the barrels getting soiled, as the loss by being obliged to grind wheat in the interior during winter, and by the exposure to the heat during summer. This cai'ses Hour to sour on the voyage; and the loss thereby caused to shippers here and in New York, where it is longer exposed in canal bouts, is, in my opinion, nearly equal to 25 cents per liarrel on the whole quantity of flour milled in the intericr. With the mills as pro- posed at the Point St. Charles Docks, any quantity could bo man- ufactured, nnd the cities of Now York and Boston, and the Now 52 England States generally, could procure fresh flour at all times, and clieai er, as I have shown, than it could be obtained at Oswe- go, Rochester, or other milling points in the State of New York. Mr. Tiautwiiie again says : " Let us assume therefore that the enlargement of the Welland Canal locks will be effected ; — and that by this means Western flour and loose grain maj (as shown by Messrs. Childe, Kirkwood, and Mc Alpine) be brought to Montreal at 17 cents per barrel of bulk, less than it can to New York by way of Oswego. Also, that of the entire quantity of these articles, now exported to foreign countries from our North-Eastern ports, namely, about one- third of all that is aent eastward to them or to Montreal, (or say a bulk equal to four millions of barrels annually,) Montreal shall secure to hersef the shipping of two-tdirds, or a bulk equal to 2,666,660 barrels. This is, at least, 2,000,000 more than she now sends down the St. Lawrence. She cannot expect to roeciTC much of the non-exported eight millions of barrels, because they are required chiefly for local consumption along their line of transportation ; and in districts more accessible from New York than from Montreal. And even in case the entire 4,000,000 of barrels exported should pass through the latter city, I think we may assign the excess over 2,666,666 barrels to the Grand Trunk ; — so that the docks could not, under any circum- ■tances, be expected to receive a greater proportion than what I have assigned to them ;^gpecially if the Caughnawaga Canal project ever be carried into effect." Messrs, Childe, Kirkwood, and McAlpinc not only say that flour can bo delivered in Montreal 17 cents less than it can bo delivered in New York, but they also stat(!, and Mr. Trautwine does not attempt a contradiction, that flour can be delivered in New York 8 cents less via the route of the St. Lawrence and Lako Champlain than by any other route, which is confirmatory of an opinion expressed by the Harbour Coumiissioncrs, "That tlio " St. Lawrence route, as a moans of transport between Europe, the " Eastern States, Western Canada, atid the Western Stab.'s, has " not yet been fully developed ; that if the Welland Canal were •' enlargcil, so as to admit the passaiye of vessels of 800 tons, and a "canal constructed to connect the St. Lawrence with Lake Cham- " plain, and suitable facilities created in this port, so as to shorten "the stay of the Western and the Ocean vessel, and thus reduce '♦ the cost of insurance, storage, and price of handling properly, to •J. I ■;^ 4 74 I I 53 " the lowest possible rates, a vast increase of trade would thereby " be attracted to the St. Lawrence, to the great advantage, not *' only of this port, but to the general public interests." Mr. Trautwine thinks that docks could not under any circum- stances be expected to receive a larger amount of bulk than 2,666,006 barrels, and more especially if the Caughnawaga project ever be carried into effect. It will be seen from my previous remarks, that it is through and by this Caughnawaga project alone that I expect the trade of Montreal to increase. It is by that project alone, that Messrs. Cliilde, Kirkwood, and McAlpinc were enabled to place the route of the St. Lawrence as superior to any other in its cheapness of transit both to Montreal and Now York, even to the route through New York, ^vhen the Erie CaniU is enlarged and doubled in its capacity for trade. Without that projoc^, ■ ithar Messrs. Cliilde, Kirkwood, nor McAlpiao, could not, n<'" ■> J any one else, advise the construction of the con- temphit.' V V !cs, because it would bo impossible to show that, with our present means of transport, the produce of the interior could be carried with advantage lower than Oswego. When that project is completed, a channel is opened by which the merchant of the Western States or Western Canada can ship direct to New York, Bnston, or the Eastern States, if he chooses, or he can store his property at Montreal, where I hold it can be done cheaper than is possible elhewhere, and have it at a point cquiilly conve- nient to be sli'pped to Europe, to the Lower Torts, to Portland, to Boston, or to New York. In what a grand position would this place the merchant at Montreal ! lie has a chaiincl for naviii'atiou open to him on the one side for vessels from sea of not less than 20 feet at the lowest water, with an inland navigation on the other side, extending to the head of Lake Superior, and by and by to the head-waters of the Saskatchewan, with railways to the West and the South in all directions, with a net-work of railways to the East, connecting the Lower Provinces and tlio Eastern Atlantic Stales, by a bridge across the St. Lawrence, and also with a lino in contemplation to connect the St. Lawtv-nce with the Pacific. By these works, he would be eiuibled to lay down products at Montreal at a less cost than they can bo deli- 54 vered at any other ocean-port in the continent, and at a point also where they are on the highway to be distributed, either for shipment to Europe, or to the Eastern States by water or by railway transport ; besides being at a point to which imports from the world's markets can be brought and distributed for the supply of the vast interior, either by railroad or water, at the lowest pos- sible cost of transport and with only one transhipment, between the ocean vessel which brings them to Montreal and the vessel which must carry them to the head of Lake Superior. Mr. Trautwine states that under any circumstances the largest amount of property that might be attracted to the proposed docks would be equal to 2,666,666 bbls. This is an important state- ment, coming from such a source ; but is it correct ? On my authority, Mr. Trautwine states the receipts at Lake ports in the United States of loose grain and flour as equal in 1856 to 12,000,000 bbls. ; and states, that about one third of this amount is exported from the Eastern Atlantic ports, say 4,000,000 bbls.; and that Montreal could not expect to get more than two thirds of this four millions, or say 2,666,666 bbls. It is true that the estimate of the receipts of grain and flour at the Lake ports in 1856 was 12,000,000 bbls, but I never stated that grain and flour were thf only articles received at Lake ports, nor did I state that the 12,000,000 bbls. Avcre received at tide-water in that year. I knew that a vast amount was distributed along the lino of the canal before it reached tide-water. I give the following table showing the receipts at tide-water in 1856 : — 56 Statement of all the Property which came to the Hudson River on the Canals in 1856. ARTICLES — DESCRIPTION. QUANTITY. Erie. Erie. THE FOREST. Pur and peltry, lbs., Product of wood. Boards and scantling, feet,. . . . Shingles, Af., Timber, cubic feet, Staves, lbs., Wood, cords, Ashes, pot and pearl, barrels, . Total of the forest. AGRICULTURE. Product of animals. Pork, barrels, Beef, barrels, Bacon, lbs., Cheese, lbs., Butter, lbs. Lard, tallow, and lard oil, lbs., . Wool, lbs., Hides, lbs., Total product of animals, . Vegetable food. Flour, brls., Wheat, bushels, Rye, bushels, Corn, bushels, Corn meal, barrels, Barley, bushels, Oats, bushels, Bran and ship stuffs, lbs.,. Peas and beans, bushels, . Potatoes, bushels, Dried fruit, lbs., Total vegetable food, jlll other agricultural products. Cotton, lbs., Unmanufactured tobacco, lbs., . . Hemp, lbs., Clover and grass seed, lbs., Domestic salt, lbs., Foreign salt, lbs., 90,000 206,431,200 61,784 2,907,600 102,856,000 874 52,207 70,662 44,14.S 0,806,000 5,676,000 3,278,000 6,468,000 2,212,000 588,000 1, 11, 1, 9. 1, 39, 098,000 741,366 054,428 547,143 6,157 818,082 473,875 620,000 301,433 338,400 138,000 184,000 74,000| 540,000 3,720,000 210,000 45 344,052 7,723 59,352 81,428 2,448 14,357 509,405 12,746 7,063 3,433 2,838 1,639 3,234 1,106 294 32,353 Total manufactures, 118,584 352,241 29,524 267,320 655 43,634 87,582 19,610 10,843 10,152 369 940,514 92 678 87 270 1,860 105 20,207 56 AETICLES — DESCRIPTION. QUANTITY. Erie. Erie. MERCHANDIZE. Sugar, lbs.,. . Molasses, lbs. CofLe, lbs., Nails, spikes and horse shoes, lbs., Iron and steel, lbs., Flint enamel, crockery and glassware, lbs., . All other merchandise, lbs., Eailroad iron, lbs., 12,000 12,000 2,000 512,000 858,000 346,000 11,820,000 1,176,000 6 1 256 429 173 5,910 588 Total merchandise. 7,369 Other articles. Live cattle, hogs and sheep, lbs.. Stone, lime and claj, lbs., Gypsum, lbs., Mineral coal, lbs., Copper ore, lbs., Sundries, lbs., 316,000 55,314,000 1,322,000 41,646,000 9,816,000 43,202,000 158 27,697 661 20,823 4,908 21,631 Total other articles, Total, 7 0,838 1,587,130 If the manuftictures and products of the State of New York amounting to 374,850 tons is deducted from 1,587,130 tons, wo have a receipt at tide water from Western Canada and the West- ern States, of 1,212,550 tons. Besides this, there arrived at tide water from Lake Champhiin, by way of Ogdensburgh, &c., 536,- 339 tons. If from this amount wc deduct 349,360 tons, the pro- ducts of tlie forest, (much of wliich is from Lower Canada,) we have 180,973 tons, which added to tlie above 1,212,555 tons makes 1,399,523, or an equivalent to say 14,000,000 barrels, and it is for tlic sliare or proportion rf this amount arriving at tide water in the United States, that I hold Montreal can be made a competitor and not for the share of 4,000,000 barrels, supposed by Mr. Trautvnne to bo the amount exported. This is a mistake* however, fur Jhe exports from New York alone of IJreadstuffs and Provisfous in 1857, exceeded 5,000,000 barrels. I claiin that the receipts now arriving at the tide water on the Ilud^^on, could pass down the St. Lawrence, to the same point at tide water, quicker ■% m:. 57 and cheaper than they are now taken there, or even when the Erie Canal is enlarged, can be taken there, Iclaira also thatwhetherfor ex- port abroad, or for distiibution throughout the Eastern States, Montreal is a better point than Albany, and that the amount likely to be received at Montreal when the Docks would be com- pleted, is not two-thirds of 4,0^^0,000, but at least one-third of the total receipts at Lak*^ or say five million of bs >c".. To compare with these i^rge i\. . . pts at tide water in thw State of New York, we have only the foUowing'Jpaltry receipts to the 4th instant at this port : — RECEIPTS OF PRODUCE FOR 1858. Ashes 28430 barrels. Flour 669,904 " Wheat 1,774,464 bushels. Indian Corn 105,087 " Pork 11,640 barrels. Butter 17,568 kegs. Barley 23,881 bushels. Peas 177,908 " Lard 2,416 kegs. Beef 729 barrels. Oatmeal 1,854 " Oats 113,566 bushels. Copper Ore tons. or 140,021 tons, equivalent to a bulk of 1,400,021 barrels, or about one-tenth of the same produce received at tide water in the Slate of Xew York. The charges now incurred on flour, wheat, &c., by cartage to store, cartage from store to ship, extra cooper- age, extra insurance, extra labour and extra storage, cannot be calculated less, exclusive of all wliarfages, than six cents per bar- rel over and above what the charges might be if facilities were created in Docks, by machinery and otherwise, for receiving and delivering property. On our present trade, which is equal to 1,400,021 barrels, this extra charge would at G cents amount to 184,001. If, therefore, I am correct in assuming the rate to be cents, (the rate named by Mr. Trautwine), it follows that Mon- troid, as a receiving and shipping port, is cents per barrel inferior to Oswego or Butfalo, than it can be made, and that par- HBm bH 68 ties sending property to Montreal for sale are subjected to a charge of six cents per barrel, from the want of tliose facilities •which exist elsewhere. This charge of 6 cents, let it be remem- bered, has nothing to do with the charge of Id for wharfage on exports of flour, but is a charge, as I have stated, owing to the want of those facilities which exists in every United States Lake Port for receiving and shipping the produce of the interior. Lei us enquire with Mr. Trautwine — will docks pay, and how could they be constructed without increasing the dutyfof the port ? The gross revenue of the Harbour of Montreal, in ordinary years, is about £24,000 — this year it is not more than £20,000, but I shall suppose £24,000 to be the probable receipts under present arrangements. This amount is distributed as follows : — Lake Debt Interest, .£11,000 Harbour do., . 7,000 Management and ordinary expenses, . 1,750 Keeping wliarves in repair, . . 1,000 Dredging in the Harbour, . 1,000 Carried to "Rest" Account, . . 2,250 £24,000 Supposing,'Tiowcver. that we obtained the 2,606,666 barrels, which Mr. Trautwine doubts our being able to get over and above our present receipts, the result would stand thus : 2,6G6,66G barrels, at 3 cents $79,998 1,400,021 " at 3 " 39,873 Surplus from Harbour revenue 53,000 172,871 Interest on cost of docks, according to Mr. Forsyth's estimate $2,040,000 122,400 Surplus $50,471 The assumption therefore by Government of the Lake Sf. Peter debt and the payment of the interest, would set at liberty a sum of £12,617, which could bo applied to the construction of docks. If docks were constructed, so that wheat, corn, &c. could bo elevated from the vessel at a cost of half a cent per bushel, instead of 3 cents as at present, and if flour could be 59 taken up by machinery, held at a low insurance, and delivered into vessel without cartage, &c. at a cost of 3 instead of 6 cents, it is evident that the docks would be used for the great bulk of the receipts, as shipments could also be made with equal facility by railway. Now, irrespective of any increase over the trade of this year, which is much less than usual, lot us see how docks could be constructed, based on this year's trade alone : 1,400,021 bbls, at 3 cents dock dues, would be $39,813 Surplus from harbour revenue 53,000 $92,873 Interest on docks on Mr. Forsyth's estimate of $2,040,000, at 6 per cent 122,400 Shewing a deficiency of $29,527 This deficiency is made without taking into consideration the loss of some $84,000, for want of proper facilities, and without claiming any increase to our trade, which, from the reasons already given, and from the fact of its steady increase since 1850, when the total receipts were only equal to 743,000 bbls, affords good grounds for supposing that the same progress will continue, and more especially if increased facilities are created and the cliarges in the port lessened. I find also that in 1858 the tonnage inwards is 70,183, against 42,157 in 1848, and 30,631 in 1843. Now the Grand Trunk Company are perhaps more •nterested in a scheme for docks than any other interest in Ca* Ja. The rates which they can charge for freight are influenced by the facilities afforded the ship at the point of shipment and by the cheapness with which cars can be loaded and unloaded. It is im- possible to imagine anything more complete than the arrange- ments which could be obtained in the dock scheme at Point St. Charles, with water-power to use all kinds of machinery. It has therefore always been a part of my plan for building docks, that the Grand Trunk Company should assist in doing so. If that Company should see it their interest to aid in the construction of docks, and would contribute as a loan say £200,000, to be paid back by the Harbour Commissioners, with interest, so soon as 60 the bufiness of the port warranted their doing so, a part of the dock could be fitted up for the bu: iness of the Graml Trunk Com- pany, and an arrangement could be made binding on the Cora- missioners of the Harbour not to charge harbour dues on the business of the Grank Trunk Company so long as their advance and interest remained unpaid. If this were done, even supposing the docks to cost $2,400,000, cLcre would remain to be provided for by the Harbour Commissioners only £300,000, for which they would have in hand annually from harbour receipts (supposing Government to remit the Lake St. Peter debt) ample funds to defray interest, without calculating upon attracting any part of that vast trade, of which I think we could obtain the largest part if the improvements advised by me were carried into effect. The fijrures would then stand thus : Cost of Docks, at Point St. Charles, say $2,400,000 Proposed contribution from tlie Grand Trunk Company. . . . 800,000 Interest at 6 per cent., Probable amount of revenue from Harbour surplus. . $53,000 Dock and Harbour dues on 1,329,110 bbis, at 3 cts. $1,GOO,000 $96,000 39,873 $92,873 In this calculation I do not include any increase beyond pre- sent receipts. I cannot therefore see any difficulty in carrying out this impor- tant work, which would effect a saving of at least .3 cents per bbl. on our whole trade, without that loss and damage to packages which are the result of the handling and carting necessary under present arrangements. I have placed the financial view of this matter in its most unfavorable light. I would not be and have never been an advo- cate for increasing harbour dues, unkss to obtain an object which would far outweigh the cost. lu the construction of new docks it is not necessary to increase harbour duos to any extent, while the saving which would be eftected would be very great. I think it of the greatest importance that every means should be taken to make the charges on shipping coming to the port as light as 61 2,873 )re- )or- bbl. hich )ck3 link n to as possible ; and it is only by providing conveniencies for receiving goods, that we can expect to do so. At present the receipts for harbour dues are principally from imports and vessels ; the pro- duce received from the interior pays almost nothing. For instance, in this year the whole receipts for wharfage on produce shipped for sea at the Port of Montreal were : — Flour £804 Wheat 419 Ashes 410 Corn 9 Pork 1 Butter .. Pease . . . Lard . . . Beef Oatmeal. Oata ... 20 247 1 6 6 20 £1942 If we adopt Mr. Trautwiue's policy and wait till trade increases, without attempting to make our position more attractive for trade than it is, I fear we shall have to wait a long time ; and we m;iy give an impulse to other places, by our apathy, which it may take years to recover from. I have not made allusion to the increase which may be expected in the trade between the Atlantic and the West; but, considering the small area yet settled of the great territory to the West, no doubt its trade must increase rapidly and assume more importance year by year. Its extent in future it is impossible to predict, and the only safe cahiulation.s respecting it must be reduced from its past progress. Let me take an example of the increase in receipts of the articles. Wheat and Flour, shipped from Buflalo and Oswego in 1837, 1847 and 1855 :— 1837. 1847. 1855. Buffalo. Oswego. Flour. Wheat. Flour. Wheat. Barrels. Bushels. Barrels. Bushels. 126,855 450,350 66,002 59,710 1,903,357 5,816,362 cao,494 713,531 235,578 6,455,041 398,057 2,698,377 Total. Reduced to Bushels. 1,474,366 19,099,118 12,330,143 62 Montreal, in my opinion, possesses great natural advantages as a place of exchange and distribution between the ocean and inte- rior vessel, and can be made the most convenient point on this continent for storing and holding property of all kinds for ship- ment in any direction, whether by rail or water, so that instead of 2,CG6,G60 barrels, being attracted to Montreal out of the 14,000,000 barrels which arrive at tide-water, wo have the power, in my opinion, of commanding the greater part of it. Of course this is a subject upon which there will be various opi- nions. I am supported in mine by men the most capable of judging in the Western States, and also by engineers of tiie high- est eminence. If I am correct, look at the vast interests dependant on the paltry outlay to secure so great a result. We have the Grand Trunk and other railways costing £10,000,000, in which the people of Canada are interested to the extent of £4,500,000. On a large part of this grand undertaking there is comparatively no commerce, and what is now being done is done at a loss, to the ruin of other legitimate and necessary branches of transit. If Montreal possesses these vast advantages which I claim for it, as a depot for imports and exports, whether to the East or to the Ocean, passengers by rail would follow the great stream of trade, as they now do, by railways running parallel to those water-lines which now transport the great bulk of imports and exports between the Atlantic and the interior. The rail would also perfurm its legitimate work, not in carrying heavy and bulky freight, where cheapness of transport is important, but in carrying articles of great value, and of perishable character, where cheap- ness of conveyance is not an object. I do not mean to say that railways will not carry heavy freight, for I know that the lateness of the season, the demand for or value of the article in market, or the necessity of the owner, frequently changes the movement from a slower to a more speedy conveyance. Then again, there is that vast trade in animals, for consumption and Blaughtering, at the East, amounting last season to upwards of 6V0,000 in hogs, cattle and sheep, of which our railways will command a share as there is not a better point for this business than Montreal. These considerations lead me to look with per- il- .■*, : ..-^ 63 feet confitlenco to the future success of our Canadian railways, and to tlie belief that a double track of rails would be necessary to do tlic business which would flow on to them, if the policy I suggest was carried out, in the development of the route of the St. Lawrence and the great natural position of Montreal. It is time to draw this letter to a close ; and in doing so I can- not but express regret, at being forced to differ so widely from the views of Mr. Trautwine, in respect to Docks, and as to the capabilities of Montreal, as a point for concentrating r large portion of the Western Trade. I have no doubt, that in express- ing his views, as he has done, he acted from a high sense of duty, but with the documents placed before him, I think he should have hesitated before dessenting so widely from all the eminent engineers, whose opinions have been given on the points in dis- pute, after long and intimate acquaintance with the trade of the "West. More especially should Mr. Trautwine have so hesi- tated inasmuch as his line of professional duty had not pre- viously directed his attention to that trade, or of the merits of the various routes in competition for the vast and increasing products of that region of country. Mr. Trautwine has not, as I understand, bver vi?ited Buffalo, Chicago or the West- ern Slates, and it was most difficult after a visit of only a few weeks at Montreal, to understand, as well as most dangerous to speak authoritatively on matters which formed the especial study for years of engineers of equal eminence, whose views directly con- flicting with those set forth by Mr. Trautwine, were endorsed by the members of the Board of Trade, after much consid . '".♦ion and long active mercantile experience. I cannot however, r -ret the discussion which has already arisen, and will yet arise on the merits of the projects of our Harbour improvements, and i trust that some of the " gentlemen of large commercial e;£perience, and habits of close observation," who agree v itu Mr. Trautwine's views will be induced to support these views before the public, and point out the errors in the opinions expressed in relation to Docks at Point St. Charles, and as to the trade of this port, and in the many facts and arguments by which these opinions have been supported. 64 My own views on these points have long been before tlie public ; they are the result of niuc;h reflection and considerable experience. It is well known that on various occasions, as well in Parliament as out of it, I have expressed my views on the unsatisfactory state of our trade with the west, and of the means by which that trade might be increased. Questions of greater importance, not merely to our local trade, but to the trade of the Province, cannot be agitated. Let it be remembered that the loss to the Province in 1857 from the YV^ellund and St. Lawrence Canals was £217,000, and it will be seen that the interest on these unjwoductive works actually paid for the last th .. yea«, and li'hich must be paid for the next thiee years, would be more than sufficient to enlarge the Welland Canal, to build the Caugh- nawaga Canal, and to improve the Rapids of the St. Lawrence, Entertaining these views, it is not to be wondered at if I have persisted in keeping them before the public, although they should be stamped as visionary, and as " vague dreams of the imagina- tion." It should also be remembered that other projects advo- cated by me, which at first were considered as unfavourably as the Dock at Poii.t St. Charles, have been carried out. I allude to the deepening of Lake St. Peter in the old channel, which was recommended by me in a report to the Board of Trade in 1846, and was at first covered with ridicule, but which was finally adopted, and the Government works abandoned after an expendi- ture of about £75,000. In the same year, I suggested to the Direc- tors of the St. Lawrence and Atlantic Railioad Company the ne- cessity of bridging the St. Lawrence, and recommended as the best site a point a little below the Nun's Island. I certainly never dreamed of so noble a work as that now being erected. My idea went *;o further than a bridge of wood and stone. The conception of the bridge in its present form is due to Alexander M. Ross, Esquire, who examined the locality and first mentioned the present mode of construction to me when on a boat on the spot I was trying to point out its advantages. I brought the project before the public at various times from 1846 to 1862, when, at my suggeston, its couRtruction was made the means of a compromise between the Montreal and Kingston Railway and the Grand Trunk Company. 65 .4 As Chief Commissioner of I'ublic Works I was tlie first to sii