Savannah morning news. [volume] (Savannah) 1868-1887, 1883-06-21
OUR COTTON RECEIPTS.
THE CAUSES OF THE DECREASE
EXPLAINED.

An Important Report of the special
Committee TO the Exchange Evil
Effects of the Railway POOl-Compress-
ing, weighing, Delivery, Etc New
Types for Quotations - Resolutions
Suggesting Remedies.
The Savannah Cotton Exchange held an
adjourned meeting yesterday, at twelve
O'Clock. the President, James II. john
ston, presiding, for the purpose of hearing
the report of the special committee ap-
pointed to investigate the causes of the
decrease in cotton receipts at this port,
and to suggest means of remedy.
The committee consisted of Messrs.
John Nisbet, j. l.. Warren, X. ID. BOgart,
ID. G. Purse and j. b. West.
Mr.. Nisbet, as Chairman, presented the
report. which was read by the Superin-
tendent, as follows:
THE REPORT.
To the PresideAf aad Members Of the SaodR-
ach Cotton Exchange:
Your committee appointed ON 2Sd OF May
hereby beg to present the following report,
which they shall ask this meeting TO receive
for information, and thereafter they will sub
nit for your consideration various resolutions,
drawn up in accordance with the conclusions
arrived at in said report:
Your committee. in the course OF their re-
searches, have had interviews with the
officers OF the Central Railroad of Georgia
and of the Savannah, Florida and Western
Railway, with the representatives of firms
acting as shipping agents at this port, with
the directors of the Savannah Cotton Press
Association, with representatives of the dray
ing interest and with the Chief of Police, and
beg to pay tribute to the courtesy and frank
ness with which any information solicited has
been furnished by these gentlemen.
Your committee is OF opinion that the CON-
paratiye decrease in the receipts of cotton at
/ this port is owing, in some degree, to the fact
that the increase in the production OF the ar
I ticle during the last sixteen years has been
greatest in the States west of the Mississippi
/ aud north of the boundary line of Georgia,
I that is. in ctions not directly tributary TO
/ Savannah, and which find their natural out
/ let by way of Galveston, of New Orleans and
/ In view of the difficulties created by the
I Georgia Constitution of 1877 TO any extension
/ on the part of Georgia railroads then IN
/ existence, especially to an extension beyond
I the limits Of the State, your committee see no
/ prospect for the present of drawing cotton
/ from far distances this way, nor would they
see much reason for regret in this If the pro-
| visions of the law were such as to secure IN
! any way the cotton trade OF Georgia herself
| to the seapOrts OF the state, Unfortunately,
| however, the contrary is the case. The con-
| stitutiOn and laws do not prevent railroads
belonging to other states, and managed
in the interests of other ports, from
I penetrating into the very heart OF Georgia
and drawing her produce many hundred
miles away from the ports of savannah and
Brunswick-which, by their natural geograph-'
ical position. ought to command the business.
The constitution of 1877 made il the duty of the
Legislature of the State to assume a super
vision of the workings and doings OF the raul
roads in Georgia. The Legislature delegated
those duties, and the power conveyed by the
provisions of the constitution to Board OF
Railway Commissioners, who entered on their
duties on March ,, 1850. Your committee nave
closely studied the rules laid down by the
Board of Commissioners in their circulars
from that time to the present. They detect
1 in them an earnest and studlOus desire and
effort to establish fair and equitable rates,
! which shall, as far as possible, secure TO each
section of the State the advantages due to II
by its geographical situation, without de-
strOying old and established interests, Iney
have found in its tariff no discrimination
against Savannah, except such as Is con-
tanned in paragraph No. I, OF circular No.
"a. issued January 30th of this year, by which
the Central Railroad and the East Ten
nessee, Virginia and Georgia Railroad are
debarred from charging more than stand
ard rates on their lines leading north from
Macon, whilst they are allowed TO charge
Is per cent. on standard rates on their
lines branching East South and West
from Macon, thus establishing a decided
discrimination in favor OF Atlanta and North
ern ports as against Savannah. The Railroad
Commission does not interfere with rates
/ from competing points, vlZi from points
I which have direct communication by rail
I with ports outside of the limits OF Georgia, or
which are in communication with the GeOr
gIa seapOrts by means of transport not amen
/ able to the laws of the State. such points in
/ the State of Georgia are Augusta, Macon, At
lanta. Rome, Athens, Albany. The rates
I from the points named to Savannah are left
( by the commission to the discretion of the
/ various railroads. and this discretion has been
/ taken advantage of for the organization of a
/ pool, in which the railroads leading from Ala
/ bama and Georgia, 10 lrsinla, Caro-
naa- aaa Ss9rsa r p4pl5i and the
1 such ports and Northern ports participate.
I Under the condition of this organization GER
| tain commissioners assign to each railroad
4 the proportion of the total shipments of cotton
/ from any competing point 10 winch Its lines
! may extend. which II Is entitled to carry in
| the course of the season. II any of the roads
carry more than its appointed proportion
I from any point such road is allowed to retain
for itself only small part of the freight
I earned, to pay for actual expenditure in
Cured, and has to pay the balance into the
pool for the benefit OF the roads whose traffic
/ II is eOnsldereq 70 haze l9terfered with. No
road, has, therefore, any direct ecunlary in
terest in carrying from such points more than
the proportion assigned. The only advantage
which could accrue from exceeding ITS proper
I ton one year would consist in the claim which
[ IT might create for larger proportion the
next The Commissioners of the pool also
/ fix the rates from the different South Atlantic
seapOrts to Northern ports by steam. The
rate from any competing interior point is
then fixed by the railroad which has the least
number of miles to run to its port and the
rate thus made being addrd to the rate made
from that port TO New York by the Commits
sinnets, establishes the through rate from that
interior point 10 New ORR for all the hines.
This through rate having been established,
every railroad line charges to its port that
rate, less the steamers freight from said port
| to New York.
For competitive points IN Georgia Savan-
nah is the nearest seaport. The lines leading.
( to Savannah, therefore, name the rates. and.
naturally, the nearer the competing point TO
/ Savannah the lower the rate Of freight Is
I made With a FAIR EOmlgpfitiOp for the fYa liz
! such state of things would of course work
/ to the advantage of this city, but, Undor the
conditions Of the pool, the lower the rate is to
! Savannah the lower it IS to more
distant ports, so that the rate of
| freight from Macon to Norfolk is ac-
/ tualy lower than from Atlanta to Norfolk.
/ 1t Will be seen that the effect of the pooling
/ system is to deprive Savannah in her rela-
! tiOns with competing points of the advantages
/ of her geographical POsition. III course, in
| theory. this system is based on mutuality
| Savannah is supposed to get cotton at cheap
rates from competing points which are nearer
! to other ports. but as the roads managed in
/ the interest of savannah have not extended
their lines to such distances, this mutually is
only theoretieal, and of no practical value to
I this port.
| The committee are glad to report that, ac-
4 cording to the information furnished ii hy the
/ officers of the Central Railroad of Georgia,
! their road has carried during this season FROM
/ all competitive points an excess OF cotton over
4 and above the proportion allotted to it by the
cepted. The circumstances which adversely
/ affected our relations with Atlanta will be re-
/ ferred to later on. 1t is evident, however,
/ that the pooling system must act as a check
! to competition, especially as the railroads,
| acting in combination try to secure for them
I selves q monopoly of the carrying trade from
/ competing points, as eSemplifed by the sub
sides paid to savannah river steamers on
| condition of their not trading between Au-
gusta and Savannah.
| Your committee are of opinion that the abO-
| litiOn of the pool would result in benefit to
! Savannah, and would restore to her many Of
/ the commercial advantages which she used to
/ enjoy by virtue of her favorable situation.
| that in the opinion of the railroad officials
consulted break up OF the pool would imply
/ a railroad war of long duratiOn-a war from
which our Savannah roads would no doubt
4 issue victorious, but which in the meantime
/ would seriously affect their prosperity and
| dividend paying power
| Your committee believe that, through ap-
/ plicatiOn to the Railroad Commissioners of
! Georgia and 70 the Legislature Of Georgia on
4 the part Of this Exchange. the cotton railroad
! pool could be very seriously interfered with
| to the interest of the Savannah COTTON trade,
but several OF its members, IN view of the
/ statements made By railroad officers as to the
/ possible serious consequences OF such steps,
would not feel at liberty to advocate them
were it not that they have found reason to
/ doubt that the obligations imposed by the
| pool system are being acted up to by all its
1 members with the same cOnscientiOusness
and loyalty, with reference not only to the
wording, but also to the spirit of the agree
ment entered into, Mtiln has been Displayed
| by the roads leading into Savannah,
While your committee are satisfied that the
rates charged by the roads are in strict con-
70 unity with those established by the pool,
and whilst they have not been able to find any
evidence TO eorroborate rumors as to rebates
allowed hy certain roads. they find that there