Innovation in History: The Erie Canal & Buffalo's Connection
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NYS Gov. DeWitt Clinton; “The Marriage of the Waters”

Buffalo's Fortunes Are Dependent on the Erie Canal

The Rise
When completed in 1825, at a cost of about seven million dollars, the canal had already proven a success. It had collected nearly a million dollars in tolls on the sections as they were opened to traffic. Surely, an unfinished canal that already paid for one -seventh of its cost was a wise investment, indeed.

The impact of the canal was great. It reduced the costs of transportation from $100 a ton to $10 a ton, raised the value of lands along its length, and it helped settle the lands of western New York and Pennsylvania, Ohio and the midwest.


It sparked a great canal building fever, especially in the northeast, and produced a great many engineers who would work on other transportation projects in the United States. It added immeasurably to the engineering knowledge available, and helped to tie the mid-west to the northeast rather than to the south along the Mississippi route.

The Fall
There are seven direct lines connecting Buffalo with six different East Coast cities. The New York Central is so big that it has its own police force. The railroad companies create a new industry in the city. They own 3,600 acres of city land and lay 660 miles of track within the city limits. They directly employ twenty thousand men and indirectly
give work to thousands more in the car wheel shops, palace car shops, locomotive and freight car shops, and in the largest bridge company in the world, all of which are located in the city.

As a result of the railroads, the
Erie Canal is virtually obsolete. By the turn of the century almost every lake steamship company has been bought out by the railroads. Thus, by either controlling the freight rates on their railroads or by dictating lake freight policy, the railroads exert a controlling influence over the city's commercial economy.

Source Eric Brunger PhD.  The Ditch That Made Buffalo the QueenCity of the Lakes

Buffalo's Population Trends Mirror the Erie Canal

This is the census chart of Buffalo, New York. Keep in mind that the canal was completed in 1825.  Upon the completion of the Erie Canal in 1825, Buffalo became the western end of the 524-mile waterway starting at New York City. At the time, Buffalo had a population of about 2,400 people. With the increased commerce of the canal, the population boomed and Buffalo was incorporated as a city in 1832. As use of the Erie Canal declined so did the population of the City of Buffalo. The biggest loses in population occur after the opening of the St. Lawrence Seaway in 1957.

                     Year                Population              Percent Change

                             1830                       8,668                                  N/A
                       1840                      18,213                                +110.1%
                       1850                      42,261                                +132%
                       1860                      81,129                                +92% 
                       1870                     117,714                               +45.1%
                       1880                     155,134                               +31.8%
                       1890                     255,664                               +64.8%
                       1900                     352,387                               +37.8%
                       1910                     423,715                               +20.2%
                       1920                     506,775                              +19.6%
                       1930                     573,076                              +13.1%
                       1940                     575,901                               +0.5%
                       1950                     590,132                               +0.7%
                       1960                     532,759                                -8.2%
                       1970                     462,768                                -13.1%
                       1980                     357,870                                -22.7%
                       1990                     328,648                                -8.3%
                       2000                     292,648                                -10.8%
                       2010 (estimate)      270,919                                -7.4%

Source: http://www.census.gov