The Eastern American Terminus Makes a Good Report

Special Correspondence of the Tribune

Buffalo, June 7. - Buffalo, the chief port on the lower lakes, enjoys that distinction almost entirely from natural causes, nearly all of which center in the Falls of Niagara, which cut off direct communication with Lake Ontario, and have forced the principal state canal to come here rather than to Oswego. Another point of excellence is the extreme facility with which Buffalo creek may be navigated for a mile. After that, all is artificial. The outer harbor, the railway lines, the great propeller lines, have all followed as a matter of course. Buffalo's distinctive claim as a leading lake port lies mainly in her propeller lines. No other port approaches them, especially if the Anchor line's seventeen propellers and three schooners, nominally hailing from Erie, but really managed here, are included.

The headquarters for marine insurance is also here. After that the advantages are pretty generally the other way. The outer harbor is of little value, except as a waiting point or a harbor of refuge, and so much of the creek front has been absorbed by the railroad companies that the marine offices have one after the other retired from their natural location at the docks to points up town. In spite of the creek and the Blackwell ship canal, each navigable for at least a mile, and the large space afforded by the Erie and Ohio basins, Buffalo still occupies the anomalous position of having very little water front at command, except what she has manufactured and is using in the strictest business style. The lake is almost inaccessible to pleasure parties, there is no beach anywhere, and excursion boats have almost invariably lost money.

The port's importance as a ship-building center has declined considerably of late years, although the work done is excellent. There are at present two ship-yards, that of the Union dry-dock company and of R. Mills & Co., each maintaining two docks, and the former building iron as well as wood. Only one vessel is building this season, but she promises to be the largest and finest freight carrier on the lakes. She is a steel steamer for the Anchor line, now about one-third plated at the Union yard, and will be called the Susquehanna. Her dimensions are: length, 322 feet; beam, 40 feet; hold, 25 feet; capacity, 100,000 bushels of wheat, at 15½ feet draft. She will be launched in July and come out in October. She will carry two masts and be furnished with all the modern appliances. Her engines are three, one cylinder having the dimension of 36 by 48, and the other two 51 by 48 each. They are building at the King iron works. The boilers are steel and five in number. Four are to be each 13 by 11 feet and the other, a donkey boiler on the spar deck, will be 5 by 10. The Lake Erie boiler works has the contract. Her cost will be upwards of $200,000.

The leading tug builders, O'Grady & Maher and George H. Notter, report few orders this year. Both are staunch builders, as is also David Bell, who builds iron only. Of the 350 harbor tugs reported in the Lloyd register, 127 were built at Buffalo and 53 of those by Notter alone. But this proud distinction will not remain long unless business picks up here somewhat.

A very important branch of dock business here, as at other leading lake ports, is the coaling of steamers. As a principal point where soft coal is cheap, Buffalo rivals Cleveland successfully in ordinary seasons. Last year the seven fuel docks were reported to have sold 156,000 tons of steam coal to propellers. The list includes Frank Williams & Co.,Powers, Brown & Co.,Bell, Lewis & Yates, Scott & Co.,H. K. Wick & Co.,H. C. Springer & Co., and A. Langdorff & Co. But the deal between the Ohio coal operators and the miners, by which the latter agreed to mine Ohio coal for 60 cents and to demand 71 cents for doing the same work in Pennsylvania, has effectually closed the latter, and as Ohio mines can easily produce enough coal to supply the market, the prospect of losing most of our fuel dock business is good. Already the Western transit line is sending all its steamers to Cleveland to coal, though the supply is on a contract made here by Bell, Lewis & Yates, who are handling Ohio coal here in order not to lose their business. The Western line has new docks, including warehouse and elevator, building here, and when they are finished will handle its own fuel. Only two cargoes of soft coal have come here this season, the schooner Barkalow with 275 tons and the Carr with 225 tons.

Supplementary to the fuel dock business is the vessel supply trade, followed by grocers, butchers, etc. So great is the competition in all these branches that it is said a captain can hardly get ashore without being waylaid by a dozen runner anxious to furnish him everything used on his craft. Ship-chandlery proper, the furnishing of vessel outfits, is pretty nearly monopolized by two large firms, Howard H. Baker & Co. and D. S. Austin & Co., the former having a considerable lead. Business in this direction is reported much better this season than for several years previous. Outfits are allowed to get very low when vessels are making no money, but with the first advance of freights orders are plenty. In brass, copper and tin working W. A. Case & Son and Samuel McCutcheon do a large business and Felthousen & Russell and McBean, Edge & Co. have a large trade in ship lanterns, signals, etc. The ship chandlery and copper and brass working traffic here last year is estimated to have been $250,000.

In the line of marine engines, the King iron works nearly monopolize the business ordinarily. They turn out from six to ten engines a year worth some $3,000 for tug sizes and as high as $25,000 for large steamers. Riter brothers build nearly all the marine boilers, though a notable exception in the case of the Susquehanna is furnished this year. The King iron works also furnish the greater number of propeller wheels, in which the trade is large and not dependent upon the number of vessel built here.

The turn taken in freight rates in April and May has greatly surprised everybody. Canal freights especially have for once played into the hands of the boatman instead of enriching the scalper and receiver of lake cargoes only. For the past few years the receivers managed thing their own way. They connected a large amount of grain through from Chicago and Duluth to New York at a fair rate, and then by getting the Erie canal open before the first fleet was in from the upper lakes managed to cause a stampede among canal boats and freight at once dropped to a low rate, where they were kept the whole season.

So easily was this plan worked during the dull seasons past that the receivers imagined that they were masters of the whole situation and again contracted to carry grain in large quantities, allowing a rate as low in some cases as 4¾ cents on wheat for the balance of the route from Buffalo to New York. Rates opened at 5 cents, but instead of soon dropping to a lower figure, the receivers failed to get the canal open until the lake fleet was here. As a result canal rates went as high as 6¼ cents on the very wheat that had been reckoned at 4¾ cents. In order to get back what they lost, the receivers contracted more through grain and again they lost, until at last, despairing of any freights to correspond with the figures they had made with western shippers, they became extremely shy of contracts and are now quite content to let rates take care of themselves.

Canal freights a week ago were 5¼ cents on wheat, 5¼ cents on flaxseed, and 5 cents on corn to New York - a good paying rate for the boats, which is something that cannot be said for them for a month at a time before for years. Light grain receipts have now caused a decline in rates. But boats are becoming quite scarce since hard times prevented the building of new ones and it is thought that few if any above 1,000 boats now come here for grain. The railroads, on account of the large amount of grain coming here, have done a very heavy carrying trade, charging about 8 cents a bushel on wheat to New York. At this figure, to force canal rates much above 6 cents is to give the bulk of the business to the railroads unless there is a large surplus of grain to go. Up freights from New York consist mainly of coal and merchandise. Boats bring about 100 tons at a present rate of 65 cents a ton.

Buffalo as a lumber port is second to Tonawanda, which makes canal shipping rates to the east. The rate to New York this season is has been about $2.60 per m. (1) Still, Buffalo gains on Tonawanda and this season handles over 50,000,000 feet that usually goes to the lower port. The most of this comes from the Saginaw ports, though there is a large amount coming from Canadian ports, and also from the Green bay district, Marquette and other ports on the upper lakes.

The first place in coal shipments by lake must be given to Buffalo. For some years the amount has been about 1,500,000 tons a year of hard coal alone, no soft coal of account being hauled by lake. All the anthracite coal companies have shipping agencies here and pay especial attention to lake shipments. There are six pocket trestles and about twelve separate interests more or less largely engaged in shipping coal over them. Except that coming by canal, which is monopolized by two or three companies, no coal is loaded by buckets, and none, as a rule, is wheeled on the vessels. All is spouted at a rapid rate from the trestles.

A curious state of things exists in the rate of coal freights by lake. In 1884 the brokers by clever management contrived to hold up rates to 80 cents a ton to Chicago during a great part of the season. The shippers demurred, but having no organization, failed to control the rates. Last year the shippers combined and took all vessels to Chicago or Milwaukee through one agent, which work was by turns done in each leading office. This plan worked so well that freights to Chicago were down to 50 cents nearly all the season and actually fell below 40 cents in a few instances. This spring the shippers resumed their organization, but they went too far. They not only fixed a rate of freight, but they agreed to charter in gross tons only, instead of net tons as before. Then began the only hand-to-hand struggle ever engaged in here. The vessel owners declared that the gross ton agreement was a dodge to cheat them out of the extra 12 pounds in each 100 weight and at once organized to resist it. After a sharp fight of about ten days the shippers weakened, and net ton shipments are again the rule.

The real struggle was not merely over the style of ton, however. It lay deeper and had to do with the question of the strongest. The vessel men saw that they must show that they had some combined power also, or they were at the mercy of the shippers. Good down freights assisted their side of the movement, and after some 50,000 tons of capacity had gone out light and the coal trestles began to run over with coal, the vessel were declared the winners. But they then consented to take 50 cents net, where they could have taken 60 cents gross - a loss of 4 cents a ton; so the victory was in some sense a compromise. They soon forced rates up to 60 cents. but they have once since dropped to 55 cents, almost exactly where the shippers first fixed them.

Besides the coal there is very little shipped up the lakes from Buffalo, except package freights, which are monopolized by the line boats. A few cargoes of salt are sent in bulk, and some railroad iron - an unusual amount of the latter being in prospect this year - about complete the list. Considerable salt and cement are shipped in the line boats. Down freights are grain, package freights, and lumber or coopers' supplies almost entirely. Flour from Lake Superior and Green Bay is this season a largely increased receipt. A few cargoes of ore come down for the Lackawanna works at Scranton, but the trade will never be large here.

The freight outlook in any direction depends almost entirely on the eastern demand for grain. With half a million bushels of grain coming in here daily, as has been the case for several days this season, all rates will be comparatively high, for as soon as coal rates drop vessels will be able to go up light. The propeller Onoko, the largest on the lakes, ahs not carried an up cargo this year. As long as she can get 95,000 bushels of wheat down from Duluth at 3½ cent, she is independent of coal, and it must pay a fair rate or other vessels will not carry it. But there is no prospect of the heavy shipments of grain and flour continuing, and when they do drop off, the vessels will again be at the mercy of the shippers. The exact time when this is to occur is not to be foretold. A month of good business is secure whatever comes.

A great change has been wrought in public opinion on the subject of grain elevators. For may years the outside public has been talking of Buffalo's thirty-six elevators, all idle except half a dozen, yet all drawing their share of the pooled earnings. This view of them was partly true and partly very much distorted. Most of the unused elevators were and are mere floaters too small to hold a cargo. Until last summer there were for some reasons several good elevators idle, but present developments show that they were all good property, and that without them all Buffalo would now be helpless as a receiving port. Let those who cried out against dead property living on the industries of the land explain how the 6,000,000-bushel fleet this spring could have been handled but for our elevator capacity. It is generally conceded here that charges are too high, and active efforts to secure a reduction are being made, and to be made until it is secured.

Stimulated by the fact that our elevators have practically been full since last August, at least four new elevators of about five hundred thousand bushels capacity each on the average are projected, one of which has been begun. It is to be called the Frontier company's elevator, and will stand on the Blackwell canal near the bridge. The Coatsworth elevator will be located on the creek at the bridge. Sherman Bros. & Co. will build a railroad elevator on the Hamburg canal for Lake Shore and Lehigh business, and a barley elevator will be put up at the International bridge, Black Rock, in the intersect of Grand Trunk and Michigan Central railways. All or nearly all will be on the chase plan. with conveyors instead of bucket elevators and bins running from top to bottom of the elevators. The Chase patents have lately been bought of Chicago parties by the Frontier company.

A word as to the year's immense transactions by lake and canal. Lake receipts to the end of May were 659,507 barrels of flour, against 186,095 last year; 14,945,306 bushels of grain, against 6,819,599 bushels last year; lumber fell off from 32,000,000 feet to 28,000,000 on account of an agreement not to begin shipments until May; coal shipments amount to 296,940 tons, against 186,607 tons last year; and grain shipped by canal reached 7,978,372 bushels, against 4,697,247 bushels last year, with the opening date ten days earlier than last year.

No line of passenger steamers plying upon the waters of the great lakes have a wider spread reputation for comfort, convenience, and excellent management than the well-known Lake Superior Transit company. This company, inaugurated in 1878, with John Allen as president, W. Bullard vice-president, and E. T. Evans general manager, commenced business under the most favorable auspices. Their fleet consisted of ten steamships, of which the India, Capt. Ben Wilkins, who was known as the commodore of the fleet, was probably best known, though the China, the Japan and the Winslow ran her hard in public estimation and favor. The past eight years has shown a large and steady increase in the volume of both freight and passenger business entrusted to their care, and a remarkable fine record has been achieved by the prudent and careful general management exercised throughout the fleet. Not a single serious accident has ever occurred upon any of their vessels, and though thousands of passengers are every season carried by the company, no instance has yet happened whereby any passenger has been injured by their (the company's) negligence. So well understood is this that tourists come from all parts of the country are loud in their praises of the excellence of the arrangements on the company's steamships. The fleet at present consists of the following fine vessels: Nyack, Capt. Rhynas; India, Capt. Mooney; China, Capt. Nyland; Japan, Capt. Robert Smith; Winslow, Capt. William W. Smith; Empire State, Capt. McDougall; Badger State, Capt. James H. Greene; Idaho, Capt. Delos White; Fountain City, Capt. Ivers; St. Louis, Capt. Bryce; Arctic, Capt. Thorne; Arizona, Capt. Dunn; B. W. Blanchard, Capt. Green; and the Jas. Fisk, Jr., Capt. C. S. Furey. These splendid steamers, fully equipped and fitted with every accommodation and convenience, will, without doubt, continue to hold the favor of the traveling public this season, as in the many successful seasons of the past. One reason of the line's great popularity is that it reaches with its vessels some of the most interesting and popular ports and resorts upon the entire chain of lakes - Buffalo, Erie, Cleveland, Detroit, Port Huron, Detour, Sault Ste. Marie, Marquette, L'Anse,Portage Lake (Houghton and Hancock), Eagle Harbor, Ontonagon, Ashland, Washburn, Bayfield, and Duluth are touched at, besides connections being made to the famous Mackinac Island and other famed resorts of the lakes. The splendid waters of Lake Superior are traversed in full view of its magnificent scenery, and passages are made close to all of the most popular points of interest along the entire route. No finer trip can be made during the summer months, the cool and refreshing breeze of the lake fanning with gentle breath the cheeks of the passenger, hot and tired from the heat, turmoil and dust of the cities, and as the vessel passes point after point of historical or natural interest, his eyes are gladdened by the change from ordinary daily noise and traffic of the streets. A return to business cares after this delightful trip is made with renewed health, vigor and activity, and is ever a pleasing remembrance to every one that has experienced its charm. We would suggest to every one who contemplates a summer tour, a trip around the lakes in one of the steamers of this line. They will find them ample commodious, and comfortable. The state rooms are large, well-furnished, and models of cleanliness, and the table is supplied with the substantials and delicacies of the season. The company has made extra inducements this season to render their line if possible more than ever attractive,and have made liberal reductions in rates. To sum up with, this line offers the finest possible inducements to the tourist and in cordially recommending these well known vessels and their management to the public, we heartily wish the company a continuance of the success their efforts to study the comfort of all (so rarely found) has achieved in the past. The agents of the line are enumerated below and will be glad to furnish all the necessary information on application: John J. Wadsworth, Anchor line dock, Erie, Pa.; C. H. Tucker, 57 River street, Cleveland, Ohio; J. T. Whiting, 33 West Atwater street, Detroit, Mich.; John W. Thompson, Jr.,Port Huron, Mich.;William Chandler, Sault Ste. Marie, Mich.; S. H. Davis, Marquette, Mich.; J. C. Thompson, Houghton, Mich.; S. G. Strickland, Washburn, Wis.; D. A. Christy, Duluth, Minn.; C. G. Franklin, St. Paul and Minneapolis, Minn.

Capt. George H. Clarke is not only one of the best known vessel men along the entire lake system, but he has probably no superior in experience and knowledge of marine matters. His first initiation into seafaring life was in 1845, since which he has been continuously connected with the vessels interests in various capacities. The schooner Joy, built at Detroit in 1866, was built after plans specially draughted by the captain, and he afterwards commanded her for upwards of a year. The Corning, a schooner as well known as probably any vessel on the lakes, was designed by him, being built in Tonawanda, N. Y., by F. N. Jones. Capt. Clark commanded this vessel after her debut for sixteen consecutive years, during which period she was entirely remodeled and fitted after his own plans. He modeled Grey Eagle in 1856 and commanded her for two years, besides having a part interest in the vessel, and remodeled the Kate Richmond in 1863. These schooners are both well and favorably known. He has been master also of the Banner, Excelsior, Perseverance, Cornelia and L. H. Cotton, and while in these vessels kept always a systematic log of events, force of wind, temperature of surface water, atmosphere, etc., besides a complete record of daily event. During this whole period no disaster ever happened to any vessel he commanded. Three years ago the captain decided to give up sailing, since which period he has been acting as a vessel agent, besides transacting a general fire and marine insurance and brokerage business. One of the events of which the captain is particularly proud in his career was recruiting for Commodore Foote's flotilla operating on the Mississippi river, he having at the time charge of Detroit and Buffalo offices. He was executive officer of the St. Louis, ironclad, which blew up at Fort Donelson during the war of the rebellion. The captain is one of the most genial of men; his well-known portly presence is one of the familiar features along the docks or in the shipping offices of Buffalo, and is deservedly held in high esteem by the entire vessel community. The facilities he has, on account of his familiarity and experience are second to none, and he is held in great popularity among the marine fraternity. His patronage is extensive, and the ramifications of his business extend to all the lake ports.

R. Mills & Co., whose shipyard and dry-docks are on Buffalo creek and Ganson street, Buffalo, have been established since 1855, and have since their inception, always held a high reputation for the superiority of their work. A large capital is invested, and a considerable force of workmen are constantly employed. The attention and skill necessary for the details of so large and important an enterprise as a shipyard and dry-docks is very important, and in this connection the firm possesses the service of Mr. John Humble, who has the reputation of being one of the finest marine modelers and general superintendents along the entire chain of lakes. Mr. Hamilton Mills has the general management of the business and personally directs all operations. The yards occupy an area 317x700 feet, fitted with all the necessary and most modern contrivances for facilitating work. A saw mill of extensive capacity, spar derrick engine house, joiner shops, etc., are all complete in every particular. Here are prepared and sawed the logs, vessel frames. and the preparatory work in their construction. Two fine dry-docks, 315 feet long by 75 feet beam, and 280 feet long by 55 feet beam, are operated, which are capable of docking any vessel afloat on fresh water. Among the well-known ships built by the firm may be mentioned the steamer A. J. Wright, steamer Annie M. Dobbins, steamer Monteagle, schooners Ham Mills, Walter A. Sherman, Comrade, besides several tugs and smaller craft. A very large repairing business is done at all times, and a specialty is made of docking, rebuilding, spar work, ship smithing, and repairing of all descriptions. The year around sees those well known and popular yards busy, and denotes the appreciation in which they are held by the marine public. No more popular firm exists in the business, and their work has always been of such a character as to add to their own efficiency and reputation. The partners are Robert Mills, John Rice, and Mrs. P. Walsh, heirs. The firm is a worthy exponent of Buffalo's immense marine interest.

Notes

1. m = 1,000 board feet.

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