APPENDIX No. 7. ANSWERS TO INQUIRIES IN RELATION TO THE COMMERCE OF BALTIMORE AND THE COMMERCIAL MOVEMENTS TO AND FROM THAT CITY, BY MR. GEORGE U. PORTER, SECRETARY OF THE BALTIMORE BOARD OF TRADE. 1876. Question 1. It is stated that there is an allowance made of 3 cents per bushel, or per 100 pounds, on grain shipped from the West to Baltimore for export. Please state whether such drawback is made by the railroad company or by the steamship company, and what special advantages the port of Baltimore enjoys in this respect, or generally, with respect to railroad rates, steamer rates, and charges for elevating and warehousing and transferring from car to ship. In replying to this inquiry, please to present a specific statement showing the various terminal charges at Baltimore from the car to the ship on grain which is exported to foreign countries or shipped coastwise to other ports of the United States. Answer. For the purpose of offering to the trade of Baltimore facilities to compete with neighboring markets, elevator charges were reduced by the Baltimore and Ohio Railroad Company, at the solicitation of the Corn and Flour Exchange. We give the old and new rates as follows: Delivery to carts or vessels, wharfage on the grain and storage for the first ten days or parts of the same...... Same from vessels when received... Each succeeding ten days or parts of the same..... in each bag, an additional charge of. Delivery in bags, including sewing or tying, without specific weight in each bag, additional charge of..... Screening and blowing The above new or reduced rates went into effect on the 10th of November, 1875, and the same rates are now in force, from which it will be seen that on the western receipts of grain the cost in passing through elevator, and on ship board, with privilege of ten days' storage in elevator, is 11 cents per bushel. This reduction caused a revival of the corn shipments from the West to our port. On the 8th of December, 1875, at the further solicitation of the Corn and Flour Exchange of our city, the Baltimore and Ohio Railroad Company, granted a drawback on western grain received over their line and shipped foreign through their elevators of 3 cents per 100 pounds, and simultaneously the Northern Central Road issued similarorders. The action on the part of our Corn and Flour Exchange to obtain this rebate was to enable Baltimore to compete with Philadelphia and Boston, but more particularly the former, where a similar rebate had been allowed for a long time before, and under its advantages the trade of Baltimore was seriously retarded. This drawback is paid by the railroad companies. On and after the 1st of April, 1876, the rebate will be reduced to 14 cents per 100 pounds, in consideration of a similar reduction to take effect both at Philadelphia and Boston. The advantages of Baltimore for the export of grain is to be mainly attributed to the unsurpassed terminal facilities possessed by her port, through the enterprise of the railway lines, and also from the high character of her inspection system, which is almost a guarantee to foreign receivers of getting what they order. Cargoes of grain shipped from Baltimore, as a general rule, prove more satisfactory than shipments from New York. Question 2. For every one hundred full cargoes shipped from Baltimore to ports in Europe, about how many full cargoes are received at Baltimore from Europe? Answer. Not over twenty full or partially filled cargoes from Europe are received for every one hundred clearing hence with full cargoes. Vessels frequently clear for the "United States" from ports in Europe, seeking business; touching off some port and trying the freight-market. In this way a large number of engagements are made to load at our port. In some instances charters are made by cable, and for several consecutive voyages, but in most cases based on ballast-rates out; and, in fact, the extremely low rates of freight which have prevailed on the other side of the Atlantic, being but ballast-rates, owners of vessels have to rely on the return cargoes from our country solely for remuneration. Question 3. Please to describe the nature of the combination existing between the Baltimore and Ohio Railroad and any steamer-line or lines to foreign countries from Baltimore, indicating to what extent and in what manner the Baltimore and Ohio Railroad owns, controls, or influences the business of such lines. Answer. The Baltimore and Ohio Railroad Company have a moneyed interest only in one of the lines rut ning in connection with their road, viz, the North German Lloyd line to Bremen. My own recollection of the original arrangement is that the Baltimore and Ohio Company's interest amounted to $700,000, they being joint owners with the Lloyd in the first two steamers; subsequently two other steamers were constructed and added to the line; but as the steamers were profitable, the railroad company was not required to share in their cost. Pier-accommodations are extended free of cost to the several lines of steamers running in connection with the Baltimore and Ohio Railroad Company. Coal for steam purposes is furnished to the several lines at first cost to the railroad, and these two privileges give a great advantage to steamers at our port, compared with those ports where high rents are paid for piers, and $1.75 to $2 per ton more for coal. Question 4. Has the Baltimore and Ohio Railroad made any through rates from the West to other Atlantic sea-ports than Baltimore, or from such other Atlantic sea-ports to the West, which discriminate against Baltimore, and, if such discriminations have been made, is the opinion entertained by the merchants of Baltimore that they are the result of causes beyond the control of the Baltimore and Ohio Railroad, or simply as the result of some line of policy adopted by the Baltimore and Ohio Railroad for its own benefit, regardless of the commercial interest of Baltimore? Answer. The Baltimore and Ohio Railroad does not make any rates to other Atlantic sea-ports than Baltimore. Those rates are made by the trunk-lines controlling the roads centering at those ports. The Baltimore and Ohio carry freight for these ports, and are compelled either to take their prorate or proportion of such rates, or not carry any of the freight. The Baltimore and Ohio make the Baltimore rate a percentage proportion of such rates, based upon actual distances; unless, owing to the fight between the trunk-lines, before referred to, the rates were reduced to a non-paying figure; then the Baltimore and Ohio declined to reduce rates to Baltimore. Question 5. For every one hundred loaded cars received from the West at Baltimore, about how many loaded cars are shipped to the West from Baltimore? By the West is meant all points beyond the termini of the Baltimore and Ohio Road on the Ohio River. Answer. It is impossible to say. When freight from the West is very plentiful, freight to the West is generally very scarce; and in the spring and fall, when shipments to the West are most active, there is a paucity of freight moving from the West, owing to freight being held for the opening of navigation in the spring, and to the barvest operations and necessary work in which the farmers are engaged in the fall, providing for winter. The general average throughout the year would be about three to one. Question 6. Does not the Baltimore and Ohio Railroad so shape its policy as to favor the upbuilding of the commerce of Baltimore, and is not this the generally-understood policy of the road? Answer. The Baltimore and Ohio Railroad is regarded by our citizens generally as a home institution, from the fact of the large interest which the city has in it, and aside from a few croakers, whose interests may not be served by it, there can be no doubt about the policy of the company being directed for the promotion of the upbuilding of the commerce of Baltimore. Question 7. Please to mention the names of steamer-lines, and the number of steamers in each line, engaged in commerce between Baltimore and Philadelphia, Baltimore and New York, and Baltimore and Boston. Answer. The steamer-lines running from Baltimore to northern ports are as follows: Baltimore and Philadelphia Steamboat Company, Ericsson Line, via canal, has five steamers. New York and Baltimore Transportation Line, (inland via canals,) nine steamers. Boston and Providence, via Norfolk, (Merchants' and Miners' Transportation Com pany,) has seven steamers. Question 8. Referring especially to the Boston line, for every one hundred tons of freight transported north, about how many tous are carried south? Answer. A rough estimate made by the agent of the Boston and Baltimore line of steamers is, for every five hundred tons of freight carried north, not more than two hundred tons are received here in return by their line. Question 9. Please to state, as accurately as possible, from the freight charges of the coastwise steamer lines which prevailed during the year 1875, how the average rates per ton from Baltimore to Boston compared with the average charges per ton of such lines from Boston to Baltimore. Answer. The rates from Baltimore to Boston are higher, as a general thing, owing to the greater amount of freight offering in that direction than from Boston to Baltimore. The rates are regulated entirely by the supply and demand for freight room, either way, and vary almost as frequently as the trips of the line, making it very difficult to reach any exact conclusion as to proportions. Question 10. To what extent has the Baltimore and Ohio Railroad been able to secure freights from Philadelphia, from New York, and from Boston by means of coastwise steamer lines during the year 1875? Answer. Shipments by steam from Philadelphia, New York, and Boston are very limited, excepting to points on the line, to the Baltimore and Ohio Road, owing to the preference which merchants generally have for all-rail routes. Question 11. Does the Baltimore and Ohio Railroad enter into contracts with individuals for the transportation of commodities at special rates, such rates being lower than the published rates of the company, or those which are usually charged to their shippers generally? Please to state a few facts as to such discriminations which have come to your notice. In the opinion of the merchants of Baltimore, are such discriminations in favor of individuals detrimental to the growth of the commerce of Baltimore, and do they conceive such special advantages to individuals to be against public policy, touching the interest of commerce? Answer. They do at times, though less frequently, merchants inform me, than by other trunk lines, and whenever it has been done, is not especially to accommodate particular individuals, as like privileges are open to any applying at such periods, and this impartial feature results in an earlier correction of the cause for making special contracts. As an instance, when the railroad company has a large excess of cars at any particular point, with no adequate business offering for their employment at stated rates of freight, the foreign orders for grain being at the time slack, a large offer for cars, at a special rate, would be entertained as preferable to keeping their stock and employés idle. This is known to all large receivers here, but no jealous feelings appear to be entertained by them, because no favoritism to individuals is recognized. Much necessarily depends upon the intelligence and enterprise of the merchants, who, at such dull periods, are willing to make the venture. Instances of this character, however, are infrequent with the Baltimore and Ohio Company. Question 12. To what extent has the Baltimore and Ohio Railroad during the past year, or does it now, engage in transporting freights from Philadelphia, New York, and Boston by means of coastwise steamer lines, and how have the rates thus made from other Atlantic seaports, via Baltimore to the West, compared with the direct allrail rates from such other Atlantic seaports mentioned to western points? Answer. The Baltimore and Ohio Road only made use of water communication between Baltimore, Philadelphia, and New York during the war with the Pennsylvania Read, at which time freight was carried almost for nothing. Freight between Boston and Baltimore is taken by the Baltimore and Ohio Road at current Boston rates, as established by the roads centering in Boston. Question 13. Is the rebate of 3 cents per 100 pounds on grain intended for export at Baltimore made for the purpose of enabling American grain to compete with foreign grain in British ports, or is it simply the result of a contest between rival trunk railroads or rival steamship lines for the purpose of securing business? Answer. The rebate of 3 cents per 100 pounds (or one and one-half cents since 1st April) was necessary to place Baltimore on an equality with Philadelphia and Boston. A similar rebate had been existing at Philadelphia for a number of years; also, in the opinion of merchants, to enable American grain to compete in European markets by reducing the cost of product brought from the West. Question 14. Is the weight or volume of freight which can be transported from Boston west via coastwise steamer lines limited by the available freight-space in such steamers, which would not be occupied unless such freights could be secured, and for this cause is the competition for the transport of freights to the West limited in amount? Answer. No. The steamers from Boston to Baltimore have, as a general rule, plenty of unoccupied room, and it is from this abundance of available space that freight-rates to Baltimore are lower than from Baltimore to Boston. The absence of more western-bound traffic via steamers from Boston arises more properly from the preference which merchants have for all-rail routes. Question 15. Please to state in tabular form the prevailing ocean rates from Boston, New York, Philadelphia, and Baltimore to Liverpool during the year 1875, in connection with the average freight-rates from Liverpool to those ports during the same period. Answer. In reply we refer to the several annexed reports from the respective ports of Boston, New York, Philadelphia, and Baltimore. I regret, however, that so little information could be obtained of freight-rates from Liverpool to ports on the Atlantic. I would add that early in June, 1875, the English steamship companies at a conference held in London entered into an agreement as to rates between Liverpool and New York. All the companies were ranged under two classes, "fast" and "slow," the latter including but two lines, National and Williams and Guion. The rates agreed upon were, for fine goods, 40 shillings per ton; rough goods, 20 shillings; weight-goods, 12s. 6d. ; and crates, 78. 6d., with 10 per cent. primage added to the fast lines and 5 per cent. to the slow. These rates doubtless formed the basis for steamers destined to other Atlantic ports when freight offered. Ocean freight-rates from Boston to Liverpool, current about the 15th of each month, for the January. February March April.. May July August September October November December year 1875. Correct distance from Boston to Liverpool, 2,936 miles. Ocean freight-rates from New York to Liverpool, current about the 15th of each month, for Correct distance from Sandy Hook, N. Y., to Liverpool, 3,013 miles. |