COMMUNICATION TO vi;vn o ( | MM Vi l u ls 1 ' / ' 11, ' HON. SAMUEL B. RUGGLES, CHAIRMAN JOINT COMMITTEE OF CONFERENCE ON OF COMMERCIAL FACILITIES. NEW YORK CHAMBER OF COMMERCE, NEW YORK PRODUCE EXCHANGE, NEW YORK IMPORTERS’ AND GROCERS’ BOARD, NEW YORK COTTON EXCHANGE, NEW YORK CHEAP TRANSPORTATION ASSOCIATION, NEW YORK BUTTER AND CHEESE EXCHANGE. JANUARY 25 , 1875. NEW YORK: HENRY NICHOLS, PRINTER, 75 Gold Street. . COMMUNICATION TO HON. SAMUEL B. RUGGLES, I1NT COMMITTEE OF CONFERENCE COMMERCIAL FACILITIES, NEW YORK CHAMBER OF COMMERCE, NEW YORK PRODUCE EXCHANGE, NEW YORK IMPORTERS’ AND GROCERS’ BOARD, NEW YORK COTTON EXCHANGE, NEW YORK CHEAP TRANSPORTATION ASSOCIATION, NEW YORK BUTTER AND CHEESE EXCHANGE. JANUARY 25 , 1875. NEW YORK: HENRY NICHOLS, PRINTER, CHAIRMAN ON OF - 75 Gold Stbeet. Office of I lie BAXTER STEAM CANAL-BOAT TRANSPORTATION CO., 56 Exchange Place, New York, January 25, 1875. To HON. SAMUEL B. RUGGLES, Chairman of Joint Confer- ence Committee on Commercial Facilities (of Chamber of Commerce, Produce Exchange, Cotton Exchange, Importers’ and Grocers’ Board, Cheap Transportation Association, and Butter and Cheese Exchange) : Sir — In communicating officially to your important body, the present capacities and future capabilities shown by the company now operating and inaugurating transportation by the “ Baxter Steam Canal System ” on the Erie Canal, I shall offer only the commercially important facts, and as 'practically demonstrated; knowing, that to one so eminently qualified as: yourself, all engineering details pertaining to the system and to the canals are fully apparent from other tabulations ; and, for the needs and possibilities of commercial transport, your own experience and investigations furnish leading authority. There are, however, so many well circulated misstatements to the effect, that “water transportation must be superseded for all purposes by railways that “steam never has shown economy over horse towage on canals and never can do so;” that “boats must be towed in trains;” that “railway terminal facilities can be made equal to all the necessities of New York Harbor,” and that “all engineering experience on waters must be reversed by some new ideas, instead of being perfected, fco navigate canals,” that the bases of public information have been disturbed. I may therefore be excused for making some premises that may appear axiomatic, viz.: 1st. That, even by horse towage, on the Erie Canal, and with present toll rates, freight can be carried at less cost than by any railway, as shown by their reports. ^ cL fc>b 4 2nd. That the winter earnings of railways, and the passeo ger and fast freight profits, enable them to carry heavy freights for a time for less than cost, to discourage, or destroy the canal transport; after which there would be “winter rates” the year round. 3rd. Canal boats give better terminal facilities than any fixed elevators or depots can do, for the needs of New York Harbor with its steam commerce and widely distributed store houses. 4th. I hold that horse towage for boats is the cheapest system of transportation next to propelling each boat by suffi- ciently economical steam machinery. And that horse towage will maintain its position until so superseded. No system of “hauling” or “train towage” will save time or money; because each boat in a tow must wait at a lock until the hind- most passes — and the resistance to motion in a confined channel which a combined mass gives, requires a large increase of power and consequent cost. I am constrained to this opin- ion, from no hostility to the use of tug towage or cable experi- ments, as our steamers from their speed and their independent direct service from the Buffalo dock to the place of delivery in New York, are not affected by "any change of the method of hauling horse-boats on certain sections of the canal or between its locks ; but as parties in these interests have incompletely quoted one of Engineer Greene’s reports to prove a cheaper cost than Baxter steamers, I give his “ entire conclusion” re- garding it, in Appendix marked “F.” 5th. The slow speed of the horse boats, however, say 12 to 14 days between New York and Buffalo, have lost to them almost all freight carriage westward , so that their earnings for the down trip of 500 miles bear the expense of a round trip of 1,000 miles down and up. Notwithstanding this fearful disadvantage, the traffic has survived and moves an enormous volume of com- merce, controlling railway charges on certain kinds of freight for a majority of the year. 6th. If by steam a boat can be run for less cost per trip, an advantage is gained ; and if also the time of transit can be reduced one-half, then many additional classes of freight can 5 be secured, and paying cargoes can be obtained going west- ward. By this, not only the' costs of carriage are reduced greatly, but the gain of such freight adds to the power of main- taining the canal while it detracts from its competitors, and the Erie Canal can maintain low freights at a profit. 7th. With earnings on u up ” trips equal or even one-half of the average “ down,” it is not in the power of any present engineering resource, off of a “ water way,” to underbid or compete for heavy freights. That canal steamers have accomplished during the last half of the past season, fully and practically, the conditions which give the cheapest method of transport, and at a profit which will secure permanent results to the public, I offer the following STATEMENTS : 1st. That the speed of our boats is double that of the horse-boats, each steamer being capable of 12 round trips at least, per season. Running time between New York and Buffalo being six to seven days. 2nd. The expense, per mile run, is less than the horse- boat — the “ manning ” of our boats costs more, and the value of the boat is greater, but the greater number of miles run and of tons carried per month, makes the expense, per ton trans- ported, less, for these two items. The terminal and general expenses for each are about equal ; while the cost of motive pow- er of the boat with its cargo is but one-third for the steamer in the round trip of 1,002 miles from New York to Buffalo and return. 3rd. By the speed, the consequent power to earn freight money on both “ up ” and “down ” trips reduces the expense of canal carriage by one-half on every ton carried. This advan- tage of time has induced a new commerce to canal transport on the “ up ” or west trip. In lieu of only an average of $75, given in reports as the average receipts “up” of horse-boa,ts (or one-eighth of a fair compensation), gained by infrequent loads of lowest priced commodities — our few steamers in the autumn earned an average of over $300 on each “ up trip,” from a good class of mixed merchandise, and 6 this from half- loads, as the uncertain sailing days, consequent on the small number of boats,- prevented the obtaining of the full loads which the line, with several boats leaving “ daily,” and, more widely known, will receive. 4 th. There is apparently little, if any, room for any furth- er cheapening of transportation beyond this point now gained. For this statement, I submit to you, that no cheaper vehicle than a boat can be offered ; that all expenses except that of motion (viz., terminal and general), are matters of or- ganization of business ; and that the movement of over two hundred tons of freight, with from fourteen to eighteen pounds of coal (say six cents cost,) per mile, gives no margin of practical value to reduce. The saving would be under twenty (20) cents on a ton of freight carried from New York to Buffalo if an engine could be run without any fuel. I take pleasure in referring to the authority of your own remarks to the Chamber of Commerce, January 7, inst., (as re- ported) for the statement, that in examination of the trial steamer constructed some years ago (and which bore your name), having the most economical and best adapted machin- ery and construction then devised ; you came to the conclusion, that if the standard length of boat could be increased by 20 feet, that the relative proportions of machinery and fuel car- ried, to the load, would make canal steamers the most economical of all freight carriers; and that this settled con- viction had led to your desire that the locks should be length- ened by 20 feet. That boat, you stated to have run on 40 pounds of coal per mile. It is now shown that the Baxter boats of the same length have run on 15 pounds per mile, therefore, instead of the boat being enlarged by one fifth of its whole, or by say one- fourth of its cargo space, our boats have reduced the motive power in weight and consumption by one-half \ in the standard sized boat; bringing the proportion of load to machin- ery and fuel, to a point much more favorable than that to which your experienced judgment had assigned success. Opposing interests are at this moment scattering unsigned printed documents with false and suppositional statements as to the costs and returns of our steamers, which in no wise 7 affect the facts or the means of demonstrating them to those really interested in cheap transportation to our harbor; but only in the futile endeavor to dissuade or delay capital in the certain increase of our facilities, which their importance anfl profit are claiming. I append notes of description of boats, and from the statements of our Company ; also extracts from authorities in the confirmation of my statements here made. If it cannot be disproven that steam carriage on the canal has been brought to a point by our system, beyond which economies in cost of motion can have but slight practical value; and if it is also true that it will profitably reward capital by charges equaling the actual cost to any other car- rier of freight, should it not interest every merchant and real estate owner of New York to examine the desirability of in- creasing its investment and locating its control ? I remain, Sir, With great respect, Your obedient servant, “WM. BAXTER,” Engineer to the Baxter Steam C. B. Trans’n Company. NOTES (MECHANICAL). The “ Baxter Canal Steamers” are 98 feet long by 17£ feet wide and 10 feet deep ; engine and boiler room 9 by 12 feet in the extreme stern, about equaling the room for “horse stable ” in the old boats ; leaving full average carrying capac- ity on equal draft of water. The boats weigh, with the engine and necessary coal aboard, about as much as the ordinary horse-boat, the hull being not so heavily but more strongly constructed. The bottom is flat, sides vertical with square bilge, bow and stern arched laterally but perpendicular vertically. The engine is the new “ Baxter Compound Marine En- gine,” using steam on the most approved economical principle, but devised with the utmost simplicity of construction and management — full capacity fifty horse-power ; average power 8 developed in running, thirty horse. Propeller is of the ordinary principle, but so modified in its proportion and adapted to the slow speed on a confined water way, that the ultimate of power may be utilized by avoidance of “ slip.” The boat, as constructed, involves no new or questionable principles, or theoretical devices, but is the adaptation of the most advanced engineering experiences in the combination necessary for this business. There seems to be practically but scant room for improving the economy of this Carrier on Ca- nals: mechanically, the limits of the problem for the Erie Canal are simple, and, mathematically considered, any devia- tion from this combination must impair the results. NOTES (COMMERCIAL). The business of the Company was commenced with two (2) boats on the opening of the canal, May, 1874. Boats were added slowly until by September 1, five (5) boats were in line. Without established business notoriety or connections and subject to the disturbances of trial trips, exhibitions and special uses, the business becomes fairly a matter of record during the last two months of navigation. Even then, the difficulties of training men to unaccustomed routines of duty, and those incident to getting a new class of machinery proper- ly fitted and adjusted, together with the delays in obtaining new and unusual classes of freights “up” reduce the aggregate of business for the time below what is plainly indicated as practicable, by the records of uninterrupted trips, and which can be made constant through the season. Regarding the carrying capacity : it has not been desired to overload the boats, especially on a first season and in the present unequal condition of the Canal bottom, and their full capacity of draught may not have been tested, but the records show, that coming eastward, the boats carried : Wm. Baxter,” City of Rochester,” City of New York,’ City of Buffalo,” Sept. 21, 217 tons, Oct. 13, 215 “ “ 23, 229 “ “ 26, 217 “ 1,443 lbs. 620 “ 300 “ 400 “ The total number of “ down ” trips has been thirty-nine, — carrying in all 7,870 tons, 236 pounds — averaging, including the early and partially loaded trips, 202 tons per trip. The trips west from New York in the autumn have se- cured an average of 100 tons each of mixed merchandise, being half the capacity ; and this from a class of merchants shipping for the first time by this route, and the line not a “ daily,” or well advertised and known. There seems no reason why, hereafter, the “up” trips will not make earnings equaling the “down” trips, charging rates less than railway tariff, and deliv- ering in a time acceptable to shippers. The speed of trips loaded is indicated by the several records, viz. : “City of Rochester,” round trip, New York to Buffalo and return, 12 days, 6 hours. September 29, 1874. “ City of New York,” round trip, New York to Buffalo and return, 13 days, 2 hours. October 7. “ City of Syracuse,” round trip, New York to Buffalo and return, 12 days, 15 hours. October 13. “ Wm. Baxter,” round trip, New York to Buffalo and return, 10 days, 22 hours. October 16. “ City of Buffalo,” round trip, New York to Buffalo and return, 11 days, 7 hours. November 4. This “ time ” record is from the hour of starting loaded from New York pier to the return for delivery, and includes the unloading and reloading en route , but not £$ 0}" the New York “lay days.” It will be seen that, estimating 16 days per “ round” trip including time at New York, twelve trips will be made in a canal season of 192 days, and that every sixteen boats in line gives one boat daily leaving New York, so that when eighty boats can be put on by the Company, which is hoped for on the ensuing season, there will be five boats daily from each terminus and a carrying capacity of over 1,000 tons daily average from New York and from Buffalo. The cost of transportation by our steamers is as follows, basing the fixed charges on the rates of 1874, dividing the costs of full season on twelve “ round ” trips : 10 BURNING EXPENSES : Captain, 2 hands, and cook, and board of crew by contract, 7 months, $225 per month $1,575.00 Two engineers, 7 months, $80 per month 560.00 Coal, say 12 tons per trip, 12 trips, at $ 5.50 per ton 792.00 Trimming cargo, “ “ 18.00 per trip 216.00 Elevating costs, “ “ 53.00 “ 636.00 Tolls on hull, “ “ 13.80 “ ' 165.60 Repairs, oil and waste 125.00 $4,069.60 GENERAL EXPENSE: Dockage, &c., per season ! $120.00 Insurance, 12 trips, at say $30 per trip 860.00 Commission, per boat, per season 300.00 780.00 $4,849.60 Per round trip of each boat, one-twelfth $404.13 Earning Capacity of “down” trip, on say 7,200 bushels wheat, at 10 cts., less toll, 3.1 cts., 6.9 cts.$496.80 Delivery charge 12.00 On “ up ” cargo, net of all expense and tolls — at rates below railway tariff for same classes — say 350.00 858.80 Net per trip $454.67 Earnings, net, per boat, per season of 12 trips $5,456.04 HORSE-BOATS. To estimate horse-boat earnings, reduce all the above items which are charged per trip from twelve to seven which is their full running capacity per season, viz $4,849.60 Less the items for : 5 trimmages $ 90.00 5 Hull tolls 69.00 5 elevating costs 265.00 5 insurances 150.00 574.00 $4,275.60 Deduct also cost of steam motion : Charges for 2 engineers per season, as above $560.00 “ “ coal, as above 792.00 “ “ repairs, oil and waste, as above 125.00 1,477.00 $2,798.60 11 Divide this for 7 trips is, per trip. $399.80 To which must be added the cost of motion for the horse-boat, viz., horse towage, 690 miles, at 30 cents $207.00 Towage on Hudson river, down and up 40.00 “ in harbor 12.00 259.00 Total “ round ” trip expense for horse-boat $658.80 EARNINGS : The average of 72 boats is given at 227 tons, equal to 7,560 bushels wheat, freight money at 10 cents, Buffalo to New York, less 3.1 cents toll, 6.91 cents $522.81 Delivery charges 12.00 Up freight say 75.00 Round trip receipts \ ..$609.81 From this it will be seen, that unless the boatman can get his freights net of all commissions, and save wages by cheap or “ family” labor, wheat cannot be carried at 10 cents; and certainly no profit can be made for use of boat, repairs, &c. 12 APPENDIX. A. HON. WM. J. MC ALPINE (THE DISTINGUISHED ENGINEER), in his address at Cooper Institute, May 8, 1873 — supplemented by valuable tables — says, p. 20: “I am told at this place in “ my argument, that the days of canals and water transporta- “ tion are concluded, and that the great traffic of the country “ is to be performed hereafter by railways. Nothing can be “ further from the truth. The business of the internal lines of “ commerce disprove the allegation, and show that the water “lines do actually transport the great mass of the internal “ commerce of the country.” B. GOV. TILDEN, in his message, presented January 5, 1875, after most ably treating of the canal and recommending that its present con- dition be improved, says : “It will also facilitate the use of “ steam canal boats, and the full realization of the advantages “they may be expected to give as to economy of transporta- tion. The obstacle to their use in 1867 was that the “ machinery in its then state displaced too much cargo to be “ economical and was in other respects imperfect. The pro- “ gress of invention since then seems to promise more “beneficial results. If the movement of the boat can be “ expedited from 1.42 to 3 miles per hour, including the time “consumed in the lockages, the improvement will be of greater “importance and value. The estimate of the able Engineer “ of the Commission on Steam Canal Navigation is that the “ cost of carriage of a bushel of wheat from Buffalo to New “ York will be reduced from eight (8) cents to four cents.” In the report of Governor Tilden’s remarks to the Joint Committee on Commercial Facilities, December 19, 1874 (giv- en in the New York Tribune ), he said: “He thought how- “ ever that the question of the commercial facilities of New “York was being rapidly solved. Steam on the canals would 13 “revolutionize the course of trade and the threatened diver- “ sion of traffic would not practically amount to anything “ serious.” C. CANAL- AUDITOR THAYER, in his annual report, January, 1875, says: “The efforts for a “practical solution of this question in the main appear to have “ terminated with the expiration of the commission appointed “ to examine and test the plans submitted in competition for “the bounty offered by the State. The Baxter Steam Canal- “boat Company has been organized, and during the past “season has constructed and operated seven boats, which, “ according to reports furnished this department, have proved “successful both in regard to increased speed and greater “economy as compared with boats moved by animal power. “This company is really the first organized to employ steam as “ a motive power on a scale likely to prove a financial success. “ There can be no doubt that an organization with a sufficient “ number of steamers to insure daily departures, and with con- venient wharfage facilities at New York will command “business at remunerative rates. Such an enterprise can se- “cure a large and profitable traffic in both directions on the “line of the Erie Canal.” D. THE STATE COMPTROLLER in his annual report issued January, 1875, says, “In this con- “ nection another factor of the problem rises into importance. “ It has been demonstrated, I think, with reasonable certainty, “ that steam can be successfully and economically used as the “motive power for boats on the canals. The reduction of the “ time of transit to one-half, or less, and the reduction of cost in “ an almost proportionate degree, will put a new face upon the “ whole subject of canal navigation. It promises to be the “ most valuable and fruitful agency yet found to preserve and “ increase our carrying trade. The general adoption of steam “power will demand that the canals shall be improved and “ bottomed out, and in our action with reference to the future, 14 “ this necessity should be borne in mind. With the cost and “ time of carrying greatly diminished through this more efficient “ motor, with the debt extinguished and its exactions removed “ at an early day, and with the tolls reduced to the mere re- “ quirement of actual running expenses, there will be no mode “ of transportation, for bulky freight especially, that can suc- “ cessfully compete with our canals.” E. DEPUTY STATE ENGINEER GREENE. The engineer in charge of the canal question — and referred to by Governor Tilden in his message — made a report of 144 pages, covering all the demonstrations on the canal of the year 1872, and of foreign canal experiences ; reporting against the towing of boats in trains and giving the following summary of results. MODE OF TRANSPORTATION. TOTAL COST, per ton per mil e. “ by Railroad ” “Erie Canal and Hudson River, by animal power ” “ Same, by Steamer ” 9.23 mills, f 6.89 “ 4.02 “ per bushel wheat Buffalo to N. Y. 13.85 cts. 9.23 “ 6.20 “ [In this is included, on the two latter, the canal tolls which are in lieu of all the cost of interest and maintenance of a roadway. Without the toll charge, the actual cost of moving one ton, per mile, by the canal steamer, is given at 2.68-100 mills.] His deductions were, in conclusion, ‘‘that the practica- “ bility of substituting steam for animal power on the canal is “ substantially demonstrated .” “ That by the substitution of steam the tonnage of the •‘canal maybe largely increased ‘‘That, all things considered, the cheapest and most con- ‘‘venient mode of employing steam is in boats carrying “ their own machinery and 200 tons of cargo. ' 15 44 That an ultimate saving of 50 per cent may be effected “ in transportation, exclusive of tolls. (Signed), “D. M. GREENE, 44 Engineer.” [See Assembly Doc., No. 71, pp. 143-4, Feb. 27, 1873.] F. In Mr. Greene’s report to the Legislature submitted Feb- ruary 17, 1874, he gave elaborate calculations of the cost of the power by horse, steam or cable towage, and by steamer ; and although, in his opinion, the cost of motion was 8 per cent less by the direct hold on a cable as against propulsion in water by Baxter steamer, he however, states that costs of interest and maintenance are omitted to the former while they are charged against the steamer. He states regarding availability of cable towage, page 82 of report: 44 As the capacity of 44 a canal, other things being equal, depends upon the time of 44 lockage, and as it does not appear that, by the general 44 adoption of this system, this time would become less than it “now is for horse-boats, it follows that no increase over the 44 present capacity of the Erie Canal can be reasonably 44 expected to result, even in case a double line of cable should 44 be put in operation throughout the entire length of the canal 44 as is now proposed.” And in full conclusion, page 85 : 44 In considering these re- sults, it is to be remembered that the practicability of opera- 44 ting the cable, throughout the entire length of the canal, is 44 not yet demonstrated ; that there are yet other practical diffi- 44 culties which remain unsolved ; that the duration of a trip of 44 cable-towed boats, between Buffalo and New York, must 44 be considerably greater than that of a steamer ; and finally, 44 that the elements of interest upon cost of cable, the uncertain 44 extent of its annnal depreciation and cost of repairs, have 44 been omitted from our estimate. 44 Respectfully submitted, 44 D. M. GREENE, 44 Engineer. “Albany, Feb 17 1874. 16 g. Since the demonstrations of 1873, and the actual workings in 1874, which have been reported to his department, Mr. Greene has written (January 4, 1875): “I have to say that your canal steamers have demon- “ strated conclusively that the Baxter system of steam canal “ navigation is a success. * * * The performance of your “boats during the past season have rendered it reasonably “certain that an average of 12 round trips may easily be “made by each boat, (with the line in good running “order,) and that the cost of transportation proper, in- cluding maintenance and dividends upon stock, will be “fully 50 per cent less than it has heretofore been by animal “ power. No plan yet presented can hope to compete success- “ fully with the Baxter system ; least of all can any system “ involving the movements of boats in trains hope to approach “ it either in economy or in speed. (Signed), “D. M. GREENE, “Deputy State Engineer and Surveyor.” “BAXTER STEAM CANAL-BOAT TRANSPORTATION COMPANY.” Total Authorized Capital, ^1,000,000. President: H. H. VAN DYCK, late Assistant Treasurer, U. S. f EL H. Van Dyck. TV „ ... ! Franklin Edson, Pres. Produce Exchange, N.Y. Finance Committee : { „ XT _ ’ , . . .. __ - -o i -vr | C. N. Jordan, Cashier Third Nat. Bank, N. Y. L Philo Remington, Pres. Ilion, N.Y., Nat. Bank. Supervising Engineer: Wm. Baxter. Shares, $100 each, unassessable. A portion of the Stock has been paid in duriug 1874, and the Company now own twelve first-class canal steamers. Additional Stock is now offered, only at its par value, at which all previous sales have been made, and is for the further construction of the “ Baxter” Canal Steamers for the Company’s Freight Line, New York to Buffalo (and for which the Company holds the exclusive rights for the United States). Application to be made only to Bipley & Co. , 32 Pine street, the financial agents of the Company for Stock subscriptions, of whom, and 'of the undersigned, further information may be obtained. H. H. VAN DYCK, President. New York, January 25, 1875. The business of transportation, when at the lowest cost in compe- tition, has proved among the safest and most profitable of investments. The Baxter Steam Canal-boat Transportation Company have de- veloped an earning power, that, with the unlimited demand for their facilities, renders their Stock an unusually desirable investment. The value of the Company’s operations to the business of New York city should invite the attention of investors. RIPLEY & CO., Bankers and Agents for Stock Subscriptions. THE BAXTER STEAM CANAL-BOAT TRANS- PORTATION COMPANY. A responsible Carrier for all classes of Freight. Twice the Speed of carriage by Horse-boat. Each steamer carries the tonnage of a full railway freight train, and delivers in same as their heavy freights. Regular Freight Relow the *lctnal Cost to any Railway .