NA, VC 1/16/1862

Virginia Central Railroad
Genl Sups Office
Richmond Jany 16th 1862
 
Col. A. C. Myers, Q. M. Genl &c.
 
Sir,
   You have asked my opinion as to the effect of a general adoption of the rates fixed by the Chattanooga Convention, if those rates are higher than those paid by individuals, taking the long and short Railroads as a whole?
   There are twelve Railroads in Virginia used by the Government. Two of these are less than 50 miles long, one between 50 and 75 miles, four between 75 and 100 miles and five over 100 miles.
   I believe that the rates charged on this Road are a fair average for the State. These are probably an exception but I assume that the difference is not material, or public opinion would have compelled a change.
   I have selected what seems to me to be the leading articles transported for the Government and have arranged a table showing the prices paid by Government & by individuals for different distances on this Road. I have not put down the prices for a distance under 50 miles, because the Roads less than 50 miles are but two and in one of the two cases water transportation can be substituted.
   you will find that for all distances over 50 miles the 1st three articles are carried for Government at less prices than for individuals, and for distances over 100 miles at less than one half the prices paid by individuals. At 76 miles the Government pays slightly more for corn & flour than individuals pay, and the same may be said for long distances, the average price being one cent per 100 more than individuals pay. On clothing & groceries the Government pays on an average for distances over 100 miles 37 cts per 100 less than individuals.
   It may have occurred to you that those articles, on which the Government pays more than the individual, are precisely those which do not bear transportation for long distances. They are generally furnished by the Country bordering on the Road or near the camp to which they are transported. the remedy is plain, if the Government rates are higher, the seller of the corn, flour &c. will find it to his interest to pay the charges himself. Clothing & Groceries are carried long distances and you will se that in these articles the Government has greatly the advantage. In the article of Coal there is no difficulty in having it delivered to the Government, charges paid, and the rates paid by individuals are low enough to suit the most exacting, if he is at all acquainted with the cost of Railroad transportation.
   I trust however that the Government will not take advantage of the few cases where transportation is less for the individual. The tariffs correspond, generally, with the price that an article brings in the market, and for the low priced articles mentioned the rates are but little above cost in ordinary times. They are carried low to stimulate production and thus indirectly to increase the consumption of those articles which will bear a higher charge.
   The Government however needs the low as well as the high priced article and it costs the Railroad Company as much to transport the one as the other, risk of loss and damage excepted. For the individual we carry when convenient, for the Government, when required at our inconvenience.
   It is therefore proper that the Government should pay a uniform price except for those articles which are extra hazardous.
   It may be proper to state here that the Board of Directors have thought it expedient to raise the rates on this Road, and I am now engaged in revising the Tariff. The prices in the tables are from our present rates however.
   Taking the table as a fair statement you will doubtless come to the conclusion I have, that taking the Roads as a whole the Government pays greatly less for transportation than the individual. I can come to no other conclusion from the examination I have given the question. So far as this Road is concerned I can answer positively. In September 1861 the Government freight amounts in round numbers to $17,000. An individual would pay for the same freight in round numbers $27,000!* This is no guess work, but the result of careful calculation, the bills having been made out at half rates, and afterward changed to the Chattanooga rates. My impression is that the difference will be less on other Roads, as fewer low priced articles are carried on them.
   Hoping that I have explained myself clearly
I am Your Obt Sevt,
H. D. Whitcomb
Gen Supt Va. C. R. R.
* Accurately -- Government at Chattanooga Rates $16,970.42 Individual for same $26,886.54 -- 63+/100
H. D. W.
 
Table showing the Comparative cost to Government and to Individuals for leading articles of freight transported between the more important Depots on the Va. Central Railroad

Articles similar to the following

Hanover Junction to
Gordonsville 49 miles
Richmond to
Gordonsville 76 miles
Richmond to
Staunton 136 miles
Richmond to
Jacksons River
195 miles
Individual Govt Individual Government Individual Government Individual Govt
Gunpowder &c for 100 $1.08 45c $1.12 45c $1.16 61c $1.20 87 3/4
Clothing &c for 100 33c 20c 38c 20c 60c 27 2/10c 85c 39c
Groceries &c for 100 26c " 30c " 55c " 80c "
Flour for 100 14 3/10c " 17 1/2c " 32 1/2c " 38 1/2c "
Corn & corn meal for 100 15 1/2c " 18c " 27c " 33c "
Coal for 100 10 3/4c " 14 1/2c " 22 1/2c " 30c "
Horses for car load $14.00 $20 $20.00 $20.00 $38.00 $27.20 $50 $39
Hay for car load $14.80 $15 $17.80 $15.00 $25.20 $20.40 $32 $29.25
H. D. Whitcomb
Gen Supt Va. C. R. R.

Home