Answer. Louisville has always been a large commercial center. It is to her importance as a distributing-point between the Northeast and South that she owes the greatest part of her wealth and her commercial importance. This has been especially the case until within the past few years. Two causes have largely contributed to this result.

First. The geographical position of Louisville is such as to make it the natural point of exchange between the southern producers and eastern manufacturers. Situated upon the Ohio Falls, the only obstruction to navigation between Pittsburgh and New Orleans, she was able, as was no other river city, to seize upon every advantage of river transportation when water was the great commercial highway.

Secondly. The development of her railway outlets was an important element in fostering her commercial prosperity. Her first railway communications, which were with the North and East, served to increase her facilities for receiving supplies, and, as a consequence, enlarged her trade as a distributer.

Her oldest Kentucky railroad, the Louisville and Lexington, opened communication with the blue-grass stock and grain producing section, and gave to one of the richest regions of the now cotton-raising South an outlet through this point.

The next, and by far the most important connection as regarded the mercantile prosperity of Louisville, was her Nashville railroad.

This avenue of communication gave to her the position of the first western city to tap by rail the vast tobacco and cotton-producing territory of the South. And she thus held the key to Southern Kentucky, Tennessee, Mississippi, parts of Alabama and Louisiana, Arkansas, and Northern Texas. Thenceforward, as all these sections to a very large extent sought their supplies at Louisville, her importance as a middle depot was very materially and rapidly increased. Thus we note, as the first change produced by railroads upon Louisville commerce, was to intensify and largely increase its value in the peculiar channel which it already occupied.

Let us look farther, and see if this increased prosperity continued to advance proportionally as railroad intercommunication in the South was developed. Cincinnati, as the east side, put out her Southern Railroad and tapped our blue-grass region and trade.

Saint Louis completed her railroad communication south, and by this movement our western trade in Arkansas and Texas was materially increased. Memphis and Nashville, by their eastern outlets and increased facilities, became, in their turn, the supplydepots for greater or less southern areas, and again the territory for goods which Louisville merely handled, was narrowed. Railroads increase the number and decrease the size of distributing-points, so that now our city is no longer the keystone of the South. She still has a large trade throughout the South, larger, probably, than ever before. First, because the channels of trade are not diverted suddenly, and, secondly, because she is making of herself a manufacturing center. This brings us to the second great change that has been wrought in her commerce by the introduction of railroads, viz, the building up of her manufactures.

Two elements must here be alluded to which bear upon this subject. Soon after the South was opened up by railways, the great revolution in southern labor took place; and in the transition which has succeeded so radical a change, the financial condition of the southern country has been very unsettled. This fact has led those cities having large trade in that section to look more carefully to its condition and to encourage those branches of commerce most necessary to the people. This influence, to a slight extent, limited Louisville's trade in exchanges and quickened her manufacturing enterprise.

The extent to which Louisville manufactures are adopted by the South shows to how great a degree they might contribute to her prosperity. If we except the region of home-territory comprised in Central and Southern Kentucky and Northern Tennessee, we find that Louisville is looked upon as sole headquarters only for her manufactured goods. She has trade for dry goods and hardware and imported provisions all over the South, but other cities sell the same goods in the same regions at competitive prices. The manufactured articles of Louisville, however, such as furniture, plows, boots and shoes, cement, candles, rope and bagging, whisky and tobacco, &c., are shipped to Texas and Arkansas and Louisiana and Mississippi and Tennessee and Alabama and Georgia. And in such articles only do we find her, to a greater or less extent, the acknowledged headquarters of trade.

One fact it is well to observe in this connection, viz, that the railroad outlets to the direct South are monopolies at this point. This, of course, has militated against the distribution of all of Louisville's southern exports. And one of the problems to which she will have to give especial attention as she takes her place among the large and competitive manufacturing cities of the West will be cheap transportation of her products, if she would hold that position successfully.

Glancing at the records of Louisville, we find that it is since the introduction of railway communication that her manufacturing industry has leen wholly developed. Yet, as would be natural to suppose, the realization of the importance of this interest

did not burst upon her at once. Deceived by the sense of security which present success is sure to engender, she did not at first give the attention to the new branch of her prosperity which the importance of its influence demanded. The same reasons which cause trade to be slow to adopt new channels caused Louisville, as a city, to be backward in recognizing the tendency of commercial circumstances.

Had she been less favored in her geographical position, had she been less fortunate in extending her commercial interests, or had any causes compelled her earlier to devote the energy of which she was capable to the new element, her old commercial relations, the result of three-fourths of a century of successful trade, would have guaranteed to the new commerce, from the first, an unparalleled prosperity, and her present and coming wealth would be established upon a broader basis. Hence, in so far as railroads, by the sudden development of commerce, have imparted to mere exchanging interests at this point the sense of security, of a fancied independence, to this extent do I regard them as having been injurious to the lasting and vital prosperity of Louisville.

Question 20. State in this connection the year when railway communication was first opened with States of the Atlantic seaboard, and when railway communication was first opened with points of the South Atlantic seaboard; also, with ports on the Gulf.

Answer. The railroads now centering in Louisville are

1. Jeffersonville, Madison, and Indianapolis, composed of the old Jeffersonville Railroad and the Madison and Indianapolis Railroads, opened 1847.

2. Ohio and Mississippi Railroad, main line, opened 1857.

3. Louisville and Nashville Railroad and connections, opened November 1, 1859.

4. Louisville, New Albany and Chicago Railroad, opened

5. Louisville, Cincinnati and Lexington Railroad, opened June 28, 1869.

6. Louisville, Paducah and Southwestern Railroad, opened 1874.

Our first railway outlet to the Atlantic seaboard resulted from the completion of the Steubenville and Indiana Railroad, in 1858, (this road is now a part of the Pittsburgh, Cincinnati and Saint Louis Railroad,) which completed the links, as follows:

Louisville to Seymour, Indiana, via old Jeffersonville Railroad, opened in 1847; thence to Cincinnati via Ohio and Mississippi Railroad, opened in 1857; thence to Columbus and Pittsburgh via Steubenville and Ohio Railroad, opened 1858; thence to Philadelphia and New York via Pennsylvania Railroad, opened February 15, 1854.

Louisville to South Atlantic seaboard, in 1859, as follows: To Nashville via Louisville and Nashville Railroad, opened 1859; thence to Chattanooga via Nashville and Chattanooga Railroad, opened 1854; thence to Atlanta via Western and Atlantic Railroad, opened 1850; thence to Charleston via South Carolina Railroad, opened 1840.

Louisville to Gulf ports, in 1859, thus: To Humboldt via Louisville and Nashville and Memphis and Louisville Railroads, opened November 1, 1859; thence to Mobile via Mobile and Ohio Railroad, opened 1859.

The opening of the New Orleans, Jackson and Great Northern Railroad in 1859, and of the Mississippi Central Railroad in 1860, gave us in the latter year our first direct railway communication to New Orleans.

Question 21. Please to state approximately the value of imports into and exports from Louisville by river and rail during the year 1875.

Answer. The only itemized statistics at our command with relation to these points is given in Exhibit C, which shows Louisville and Nashville Railroad imports and exports. From that source we derive the following schedule of values of imports and exports over that railroad:

Imports of Louisville and Nashville Railroad for the year ending July 1, 1875.

Imports of Louisville and Nashville Railroad for the year ending July 1, 1875-Continued.

The above were hauled by 21,036 cars; hence average value per car was $1,588. Exports of Louisville and Nashville Railroad for the year ending July 1, 1875.

The above value was hauled by 28,978 cars, which gives for an average value carried by each car of $2,695.

Our average given previously for valued car-load of imports via Louisville and Nash

ville Railroad was $1,583. Combining these results, we have as average value of carload of freight for 1874-75, $2,141.

If we allow this to be the average value of car-loads of merchandise from other sections, we may approximate to the full value of imports and exports, overlooking the fact that the Louisville and Nashville Railroad year ends in July.

The number of cars which crossed the bridge going north, 1875, (see question 23,) was 15,901; the number going south, 26,215. On this basis we would have the values thus: Going north, $34,044,041; going south, $56,126,315.

The number of cars shipped and received over the Louisville, Cincinnati and Lexington Railroad (see question 18) is as follows: Going northeast, 8,650; coming southwest, 7,501. Reducing these, we have for value shipped, $18,519,650; received, $16.059,641.

Collecting the results, we have for 1875

The above approximations contain the following element of error: First. In all cases no allowance has been made for freight which has passed through the city without stopping. Table XXXV (page 170, Louisville and Nashville Railroad report for 1874 and 1875) shows that on that road about five-eighths of the southbound and nearly five-sixths of the north-bound freight so passed. We have no means of getting at this amount for the other roads. This element, if found and applied to our result, would lessen the values of both imports and exports very largely.

Second. In the above estimate no account has been made of the receipts and shipments by river by the Louisville, Paducah and Southwestern Railroad, nor by the New Albany and Chicago Railroad, each of which would contribute a very material item to our results. Neither has allowance been attempted for the amount of exports and imports by private carriers. Both amounts have been impossible to obtain. These last-mentioned sources of error, if corrected, would swell our results.

No definite idea can be formed of the exact size of either element, but it is judged, from the general nature of our commerce and exchanges for the past year, that if both elements were calculated and applied the resulting value of imports and exports would be at least one-third less than the amounts given in our table.

Question 22. Please to mention the commodities which at the present time are shipped to points below on the Ohio River and Mississippi River chiefly or exclusively by river, and the commodities which are so moved chiefly and exclusively by rail. Answer. Commodities are not readily divided into articles chiefly shipped by river and those chiefly shipped by rail. With the exceptions mentioned hereafter, all articles may be said to be chiefly shipped by rail.

In general since the introduction of railroads the heavy tonnage only by river has increased. Between 1864 and 1875, at the rate of from 5 to 7 per cent. per year. By heavy tonnage is meant iron, iron-ore, coal, fire-brick, fire-clay, salt, heavy machinery, and articles of that description. The only commodity shipped from this point to the South by Ohio and Mississippi Rivers exclusively by water is coal. The river ships largely, however, of live stock, including sheep and horses and mules, (very few cattle and hogs south,) furniture, cement and lime, pork, bacon, groceries, plows, gas and water pipes, lumber, bar-iron, paper, &c.

The commodities shipped south almost exclusively by rail are grain, rope and bagging, liquor, oil, ice, fruit, nails, and nearly all general merchandise.

(NOTE.-The only exclusive trade which the river possesses is to such points as are not attainable by railway communication.)

A general idea of our railway commerce south may be obtained from the table of Louisville and Nashville Railroad exports, given in Exhibit C.

Question 23. Please to present general facts in regard to the area of the production of spirits distilled from grain and as to the movement of that product.

Answer. The table sent herewith, (see Exhibit F,) compiled by the Newcomb Buchannan Company, our largest dealers, shows accurately the production of whisky in Kentucky in each district for every month from July 1, 1868, to December 31, 1874. Also, the total product of the United States and of the States of Pennsylvania, Maryland, and West Virginia. The States of Ohio, Indiana, and Illinois produced largely of cheap whiskies. Cincinnati sends out a large part of the Ohio product, and statistics concerning its amount and movement might probably be obtained at that city.

The Kentucky product has more of a reputation for quality than quantity. This reputation is based upon the care with which the liquor is distilled, the careful selection of the grain, the purity of the water used in its manufacture, and the "tone" which is more frequently given to it by age in Kentucky, than by drugs.

There are forty-seven wholesale liquor-dealers and thirty-three rectifiers in the city of Louisville, besides eight distillers in Jefferson County.

Louisville handles from two-thirds to three-quarters of the whole manufactured product of Kentucky. And of this amount not more than 20 per cent. is high-wines, (i. e., a low grade of unrectified goods;) about 80 per cent. being a high quality of renned spirits.

This product is shipped to all parts of the United States. The statistics of shipment have never been compiled, but so far as I can learn from the personal opinions of our larger dealers, they would not present any peculiar area of movement. The number of people, more than any other element, regulates the movement.

One fact, however, has been deduced, viz, that the South and Southwest use comparatively few "straight goods," by which are understood high grades in original packages.

Question 24. Has the movement of spirits by river materially decreased since the introduction of railroads, and has the movement by rail correspondingly increased? Answer. They have. In this case, as everywhere, after the introduction of railroads, water transportation has become of secondary magnitude.

Before the war from 90 to 95 per cent. of the whisky shipments from this point were made by water. At present hardly more than 5 per cent. are so moved.

The "regular" river shipments only comprise such points as cannot be reached by rail. To all points where river and rail are competitive avenues of transportation, the river shipments are spasmodic and the railroads get the bulk of the liquor freight. With fermented and alcoholic spirits this is especially the case, as the product is one on which the freight bears such a small ratio to the value, that speed in transportation is especially desirable.

The information contained in this and in the previous answer has been obtained from personal inquiries, and estimates of the dealers.

Question 25. To what extent is flour manufactured in Louisville, and of the entire shipments of flour made in Louisville, what proportion is shipped south, and what proportion shipped north and east?

Answer. There are at present five flour-mills in Louisville. They have a capacity of 280,000 barrels of flour per annum. Capital invested, $762,000. The product last year (1875) was valued at $976,568. Total number of barrels of flour made, 145,640. Hands employed in milling, 75. Of the flour made last year, abont 45,100 barrels were shipped north and east, and about 57,000 barrels were shipped south. The balance, 43,540 barrels, was consumed at home.

The bulk of the southern flour shipments are made in the winter and spring-from December to May.

The eastern and northern shipments are larger from June to November. The southern shipments are made up largely of the lower grades of flour.

In the above figures I have included the product of the largest mill around the Falls, which is unfortunately situated on the northern bank of the Ohio.

The owners of the mill are all residents of Louisville. The grain is bought and the flour sold here. Louisville capital and enterprise are at the head, and it is essentially a Louisville institution. It has so been considered in the previous Louisville estimates which have been made. Should it be thought desirable to deduct its operations, I herewith append its status, included in the above estimate: capacity, 135,000 barrels flour; capital, $550,000; employed in 1875 thirty hands; made 90,000 barrels flour; value of product, $600,000; shipments, 45,000 barrels north and east, and 45,000 barrels south.

In estimates for value of product for 1875, I have included bran, shorts, corn-meal, rye-flour, &c., intending to cover the total product.

The product of our home mills last year was materially damaged by the injury to the wheat crops by flood, so that it was hardly a fair average year for the manufacture of breadstuffs at this place. From one-fifth to one-third of the grain which is handled by the flour-men comes direct from the farmers. This quantity never appeared on 'change" at all, and no account was ever made of it as the board of trade estimates.

66

Question 26. Mention the competing railroads from Louisville to Baltimore, Philadelphia, and New York, respectively, and from Louisville to three or four principal points south, including the Ohio and Mississippi Rivers in the competing routes mentioned.

Answer. I. Jeffersonville, Madison and Indianapolis, to Indianapolis or Louisville, Cincinnati and Lexington to Cincinnati; thence Pittsburgh, Cincinnati and Saint Louis to Pittsburgh, and Pennsylvania Railroad to Baltimore, Philadelphia, or New York. II. Ohio and Mississippi to Cincinnati; Marietta and Cincinnati, and Baltimore and