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20 MARINE REVIEW. [July 24 HISTORY OF GRAIN ELEVATOR BUSINESS AT BUFFALO. Written for the Marine Review, Buffalo, N. Y., July 23--On the 18th of the present month the last two floating elevators in Buffalo caught fire, and one of them was totally destroyed. The condition of the other is such that there is no. hope of ever using it as an elevator again. At the time of the fire the island to which the floaters were tied was covered with wrecks of old elevators which for some months have been undergoing complete destruction. The whole scene was one of utter desolation, and fitly represented the condi- tion of the canal elevators of Buffalo. a e| The elevator business of Buffalo may be divided into two periods-- the first the period of canal supremacy, the second the present time of railroad control. For it must be understood that prior to 1889 the canal always took out of Buffalo over half of the grain received here, while since that year there has never been a season, excepting 1894, when the railroads have not done more than the canal. So far has the change gone that for the years 1900 and 1901 the canal took only about 10 per cent. of the business. This great change in shipping has naturally led to changes in the elevating business. Where elevators having only canal facilities were valuable before, at present they are of no use. To com- mand a paying-business an elevator must have railroad connections. There has been another change in the business, brought about by the change in the size of lake vessels. Since 1890 the continually increasing size of the vessels has put out of business many of the smaller elevators, which could handle and store several small cargoes but which cannot hold one modern cargo. BUFFALO THE HOME OF THE GRAIN ELEVATOR. Bearing these facts in mind, the changes at the port of Buffalo in recent years become more easily understood. As far back as 1856 there was an association of elevators under the name of the Western Elevating Co. and that association has existed, with some breaks, ever since. Buf- falo is the home of the grain. elevator, as the first steam-driven elevator in the world was erected on the site of the present Bennett in 1842. Besides being the home of the elevator, Buffalo has some claim to the honor of originating the first commercial combination in the country. Joseph Dart, builder of the first elevator, writing in 1865, says of the early business at Buffalo: "Already, with the near 2,000,000 bushels received in 1841, unavoid- able delays in the transhipment of grain were frequent, and were the occasion of much vexation and expense. Up to this time, the universal method of transfer was to raise the grain from the hold of the vessel in barrels, by tackle and block, to weigh it with hopper and scales swung over the hatchway of the canal boat, or carry it into the warehouse in bags or baskets on men's shoulders. This method, even at this present day, is largely in use in the cities of New York, Philadelphia, Baltimore | and Boston, which illustrates the force of habit, as a small army of men man be seen with baskets on their shoulders, unloading vessels, at an immense cost of muscle and time, to say nothing of pecuniary loss. Only 10 or 15 bushels were commonly weighed at a draft, and the most that could be accomplished in a day, with a full set of hands, was to transfer some 1,800 or 2,000 bushels, and this only when the weather was fair. Everything was at a stand in-bad weather, and on an average one-fourth of the time was lost by rain or high winds. The harbor was often crowded with vessels wating for change of weather. In these circumstances I determined, in 1841, to try to use steam power in the transfer of grain for commercial purposes." The old wooden elevators of the early years were built mostly for canal delivery, and to store cargoes averaging about 15,000 bushels of grain. Fire was their worst enemy, as there were many dryers connected with elevators in those days, on account of the large number of damaged cargoes which the small schooners brought in to the port. From these dryers fires were often started, and the death rate of elevators in those days was high. This was a good thing, as it gave an opportunity for rebuilding in more modern style. As the cargoes grew larger and the boats more secure against damage, these dryers were abandoned, until today there is not one left in connection with an elevator. THE FLOATERS AND SMALL TOWERS. This early time was also the time of the floater. While the canal business was at its height, a floating elevator could transfer grain from the small lake vessel to the canal boats as well as a large shore elevator. In consequence, there were many of these floaters built, and since they cost so much less than the shore elevators, and could make just as much money at some times of the year, the storage elevators found it was neces- sary to control them. Many a fight in the old Western Elevating Co. arose over the shares to be allowed to a floater, and many a fight which lasted for months and ccst the elevators large sums of money was waged between the storage elevators and the floaters. Akin to the floaters were the small towers, with little or no storage room, being transfer machines on land instead of on scows. These tow- ers were also a thorn in the sides of the larger elevators, for both towers and floaters could handle grain, and cculd do everything but store, and it was only in the fall that there was any demand for storage. These small pirates thus skimmed the cream off and left the more expensive and poorer paying work for the more expensive houses. An elevator could earn at the price charged before 1870 (2 cents a bushel for elevat- ing) from $250 to $500 a day by elevating, while storage only paid %4 of a cent for ten days. The profitable work was thus in elevating, and only those firms or companies built storage which required room in case there was delay in getting canal boats. Other folks took chances or held the vessel, and a vessel's time was not so valuable then as it is now. As the boats grew larger, the old elevators were put out of business, and as the canal business died out, the elevators that had only canal facil- ities became valueless. Thus nearly thirty elevators have disappeared from the roll within the last few years in Buffalo, and today there are only about twenty working houses, including all the new ones, where there were fifty a few years ago. oe DST The old association ran against its doom in 1897. In that year there were three new elevators built. Rates were, and had been since 1881, seven-eighths of a cent a bushel. There had been some agitation for lower rates, but the executive committee of the association, after listening to petitioners, had some little time before decided not to grant the decrease. At about the same time, three separate interests decided that Buffalo elevators were pretty good property, and the Electric was built, of steel, by the New York grain firms of Kneeland & Co. and Power, Son & Co. Long before the Electric was finished, the Chicago firms of Bartlett, Frazier & Co. and Armour '& Co. had completed a wooden house, the Export, and in September the Great Northern elevator, a steel structure with the largest capacity in Buffalo, was finished by the Great Northern interests. Facing this situation, the Western Elevating Asso- ciation held a meeting and decided to dissolve with the end of their year in April, 1898. Negotiations were dragged along until June of that year, however, before the old association finally gave up the fight, and the rates went to nothing. For the balance of the year it was a game of catch- as-catch-can, and the vessel was the principal sufferer, having to wait for busy houses while there were often mary elevators lying idle. VESSEL OWNERS FORCED FORMATION OF AN ASSOCIATION, A call was issued for a meeting of the Lake Carriers' Association at Buffalo in March, 1899, and it was proposed at the meeting to fix up a bill of lading which would make it impossible to hold vessels so long as any elevator was idle. This would prevent some of the railroads from hand- ling their grain through their own houses, as they were not in possession of enough storage room to keep up with the business during the rush in the fali, and so this move of the Lake Carriers brought about a new asso- ciation. While the Lake Carriers were in session, a meeting of elevator men was held, and before the Lake Carriers adjourned it was definitely understood that an association would be formed. The vessel interests have always contended that the association is of great benefit to them, and there is no room for discussion on that score. When the facilities of the port are placed at the disposal of every con- signee, there can be no long delays to vessels except under circumstances of great congestion at all elevators. Consequently, the Lake Carriers can take to themselves the credit of having solved a most troublesome _problem by their decided action. The new association was organized under the eye, so to speak, of the Lake Carriers, and it at once under- took work that the association had never done. Prior to 1899, the gen- eral office of the association had not distributed the cargoes. Vesselmen had to deal with each individual elevator in vain attempts to hurry the unloading of their ships. Beginning with 1899, however, the associa- tion placed all grain during busy seasons, taking charge of the port, and with full knowledge of the entire situation its officials have been able to expedite matters very much. Thus a great gain has come to the vessel interests, beyond their original expectation. HISTORY OF SHOVELING CHARGES. A point on which the vessels and elevators came into conflict many times was the question of the shovel charge. The history of this mat- ter is very interesting and is a part of the history of the Buffalo elevators. Before 1882 there were two. rates--one on sail vessels and one on steam. There was no difference in price for hand or steam shoveling, and the rates varied from $3 to $4 on sail vessels and from $4 to $5 on steam ves- sels. In 1882 the patent expired on the steam shovel and the royalty which had formerly 'been paid to the patentee was rebated to the vessel, thus making steam shoveling cheaper than hand by the amount of the royalty, 50 cents per 1,000 bushels. From 1882 to 1894 the rates were as follows: Hand shoveling $4 for sail vessels, $4.50 for steam vessels; steam shoveling $3.50 for sailing vessels, $4 for steam vessels. Besides these rates there were other charges which made the life of the vesselman anything but pleasant. Every damaged cargo took a rate of from $5 to $10 per thousand, and the shovelers were the judges of the question of damage. Several vessels were also charged rates higher than the regular schedule on account of peculiar construction. All these things made it impossible to figure exactly in advance the cost of shovel- ing at Buffalo. In 1894 a strong-effort was made by the Lake Carriers to obtain a reduction, and the elevators threw off 25 cents per thousand for steam shoveling on steamers. This reduction was brought about. by the vessels refusing to pay for the use of the steam shovels. For a time the steam shovels were not used. The shoveling was done by hand at hand shovel rates. After about three weeks contention the 25 cents per thousand was agreed upon as a compromise settlement for the remainder of the season, with the understanding that ithe question would be taken up at the annual meeting of the Lake Carriers' Association. _ When the Lake Carriers met in annual session a committee was ap- pointed to arrange the matter. The committee made the first contract in the spring of 1895 with James Kennedy, by the terms of which the charge was to be $3.50 on everything. This contract was carried out so satisfactorily that it was renewed for the next year at the same rate, and for 1897 with the same contractor at $3.35. In 1898 W. J. Conners entered the field and the contract was let to him at $3.10. A renewal of this contract in 1899, and an attempt to reduce the pay of the men, led to the famous strike, which tied up the port of Buffalo for a month just as the new association was starting business. In the spring of 1900 a new arrangement was perfected, by which the Lake Carriers have a super- intendent at Buffalo in charge of the shoveling, who collects the agreed rate from the vessels and settles with the men. Mr. Thos. W. Kennedy was made superintendent, and still holds the position. For 1900 the rate was $3.35. For 1901 and 1902 the rate was and is $3.30. Of this amount $2.00 goes to the men, $1.20 to the steam shovels furnished by the ele- vator, and 10 cents to the Lake Carriers, from which latter amount the superintendent's salary and expenses are paid. No arrangement has ever been so satisfactory to all parties concerned as the one now in vogue and the Lake Carriers have thus solved another problem of great importance to themselves. The rates charged by Buffalo elevators for the past thirty years are as follows: Before 1870, 2 cents; 1870-74, 14 cents: 1875-80, 1 cent; 1881-97, % cent; 1898, 5@ cent; 1899-1901, %4 cent; 1902, %4 cent. SITUATION: AGAIN DEMANDING ATTENTION OF VESSEL INTERESTS. In the spring of 1900 the Western Elevating Association was not able to come to terms with Spencer Kellogg, owner of a half-million