Rensselaer Republican, Volume 12, Number 14, Rensselaer, Jasper County, 19 December 1879 — Internal-Commerce Statisties. [ARTICLE]

Internal-Commerce Statisties.

Washington, December 8. Joseph Kimmo, Jr., Chief of the Bureau of Statistics, has just sent to the printer a report on the internal commerce of the United States, in the preparation of which he has been engaged for more than a year. This report embodies the results of an extensive investigation of commercial and transportation affairs in various parts of the country. The following is a synopsis of the report: JThe growth of the traffic on railroads is indicated by the fact that the total freight movements of three of the most important trunk lines connecting the West with the seaboard Increased from 10,896,989 tons In 1868 to 25.272,185 tons In 1878. The average cost of transpertton on ten of the principal lines of the country fell from 2 3-10 cents per ton per mile in 1868 to 95-100 cents per mile in 1878. Seven-eighths of the surplus productions of the trans-Missfssippi States north of the State of Arkansas now cross the Mississippi on railroads at and between St. Louis and St. Paul, and are transported directly East to markets in the country and in foreign countries. During the year 1878 the eastward shipments from St. Louis by rail exceeded the southern shipments from that Sity by the Mississippi River. The cities of St. Louis and New Orleans wore formerly closely identified in almost all their trade interests, but they are now sbuiply at rivalry with respect to the trade of Southern Missouri, Arkansas, Northern Louisiana and a large portion of the trad* of Texas. The four principal East-and-West trunk lines leading from the Atlantic seaboard, with their Western connections to Chicago, St. Louis, Louisville and Cincinnati, now constitute the most important avenues of commerce in the country, and the trade currents which pass over them largely influence the course of our entire internal commerce, as well as the course of our foreign trade with respect to ports at which foreign goods are imported and domestic products are exported. This great East-and-West current of trade has led to a radical change in the course of the trade of States situated south of the Ohio River and south of the State of Missouri. The cities of St. Louis, Louisville and Cincinnati now control at least two-thirds of the trade of those States in general merchandise, and have therefore become their chief commercial entrepot. For this trade these cities compete actively with Mobile, New Orleans and Galveston. In the aggregate St. Louis, Louisville and Cincinnati greatly surpass Mobile, New Orleans and Galveston in population, in the magnitude of their commerce, and in other elements of commercial power. In the competition for the trade of the States referred to the three interior cities possess an important advantage in their rapidlydeveloping manufacturing industries, the value of products of which during the year 1878 Is estimated at $418,000,000, or. nearly as much as the total value of imports Into the United States from foreign countries. With respect to such manufactures these cities naturally exercise a much larger degree of control over the Southern trade than with respect to their merely distributive commerce. The cities of St. Louis, Louisville and Cincinnati now draw their supplies of domestic merchandise principally from the Atlantic seaports of Boston, New York, Philadelphia and Baltimore, and from the manufactories In the New England States and in the Middle and Western States. Imported goods sold at these three cities of the West are chiefly received from or through the Atlantic seaports, whence they are transported by rail. The city of Cincinnati will probably greatly enlarge her Southern trade as a result of the recent completion of the Cincinnati Southern Railroad to Chattanooga, Tenn., at which point it connects with the railroads of the Atlantic and Gulf States. There has been a rapid growth in the shipment of cotton from the cotton-growing States through St. Louis, Louisville and Cincinnati, and thence over the east and west trunk lines to Atlantic seaports, and to the manufactories in the New England States and other States of the Atlantic seaboard. These facts indicate an Important diversion in course of the trade of the Southern States alluded to. By an extension of the western connection •f the Baltimore & Ohio Railroad to Cincinnati, Louisville and St. Louis, the cities of Baltimore and New Orleans have become active competitors l>oth for the purchase of Western produce, and for supplying to the cities of St.' Louis, Louisville ana Cincinnati imported goods and products of manufacture of the Atlantic-seaboard States. In like manner, the cities of Philadelphia, New York and Boston compete with New Orleans for the trade not only of St. Louis, Louisville and Cincinnati, but also at many points throughout the Southern States. The construction of the competing lines between all the important points of the country led to a fierce struggle for the traffic. For several years wars of rates appeared to constitute the normal relation of the railroads to each other.with respect to competitive traffic. During these contests rates fell below the actual cost of transportation, and at last the pooling ortho apportionment of the traffic or of the proceeds from the traffic was resorted to. This plan has been widely adopted, and it now constitutes one of the most important features of the American railroad system. In what manner and to what extent the pooling arrangements affect the public interest adversely is one of the questions involved in the railroad problem of the present day. Experience in the administration of such pools may, in obedience to the popular demands, lead to the correction of many causes of complaint. The influence exerted over competitive rates by lines engaged In any particular pooling scheme is not absolute, but is more or less restricted by the direct or indirect competition of lines not included In such schemes, and also by the competition of tradeforces. The water-lines formed by the lakes, the Erie Canal and Hudson River, by the lakes, the Canadian canals and St. Lawrence River, and by the Mississippi River and its navigable tributaries, exercise a strong regulating influence not only over the rates which can possibly be secured as a result of any pooling or apportionment of traffic between competing lines, but also over rail rates generally. As a result of the facilities which have been provided for by direct shipments, the railroad system now presents itself to the commercial interests of the country with respect to a large part of our international commerce as a single' organ, the tendency being constantly toward that almost perfect system of transmission, the Postal Service. The general tendency of combinations for oarrj ing on direct trade has Ixsen toward a reduction of transportation charges, and has exerted a very important influence upon the agricultural, manufacturing and mining industries of the country. In certain States and sections these interests have been adversely affected, but the general result has been a large development of the industries and rerouroes of the country. It is impossible to state accurately the total value of the internal commerce of the country. Measured by the value of the commodities transported, it is many times greater than our foreign commerce. The value of commodities transported on the Pennsylvania Railroad alone, between Philadelphia and Pittsburgh during a single year, has exceeded the value of imports into the United States from foreign countries. During the last ten years the subject of Governmental regulation of railroads has been agitated in various parts of the country, and in several of the States Railroad Commissions have been formed. In view of the fact that the railroad systemxif the country has become essentially a unit in all that relates to commerce among the States, and that by far the largest part of our commerce is InterState commerce, it has .been urged that the Government of the United States should exercise its authority for correction of evils and abuses under the Constitutional power of Congress to regulate commerce among the States. A bill having this object in view has twice passed the House of Representatives. The practical question which presents itself is, whether the enormous interests Involved in Inter-State commerce shall be determined solely by those who are engaged in the work of transportation, or whether public judgment shall also be asserted by some intelligent and authoritative agency. The constitution of such an agency, the scope of its powers, and manner in which the powers shall be exercised in harmony with the spirit of our institutions, constitute the difficult and complex question, and one which can be determined only in the light of such Information as may be obtained through an intelligent and careful investigation of the whole subject under authority of Congress.