Savannah morning news. [volume] (Savannah) 1868-1887, 1884-08-08
sPLEA F0RL0MERRATE
IEIlLlEI
REVIEW OF, fpF1 NAKAH
STORES 1S1,rs-r = - -

STORES 1.S.I.s
. Bro6dckfS iCaTt( 1i6Ee Any Money and
Atel SeatfAgs ,oat of the Business
EaCtors. and Commission Merchants
Complain of Poor Business.
The following letter was yesterday sent |
by Che Beard Of Trade to the Presidents
ana directors of the following railroad |
companies: l'' Savannah, Florida and |
Western Railway Company Central |
Railroad and Banking Company, Bruins
xissk. ana Western Railway GOmpanys
and East Feninessee; Y'firgillfa. and Gs0rs'
gia Railway Company non b1slrT saisiIol
q =4efw s91als SAVLaSSsAHI Arg 97Iss4ldgI
6ESFEEMES I-9he7 Savannah b8eap a5dCfl
Trade, an organisation representing upSfRrasl
Of $50 OF the active bnsiness men, together Win
q respec fully Submits the following fSeti-
ton and eaERestly fetluestsst that qyOlr ESVe ~
your careful and tayoraole co,,sasf'Sl9Hs ~,
ar+evaHces utder which the nat al stores lil- 4
dustrv Is now suffering, We desm1t proper TO
make IN a brief and general way some state
I lhent q of the magnitude and eX-
tent Of the business. The business Is carried
on in more than forty counties IN georgia, eX-
tending throughout the pine belt from the
coast 10 a distance of more than 800 miles from
Savannah. There are about 800 turpentlne
farms in the State employing probably
- Eta1.NlO or e1.Uyu.NUU EdDildIs anu uDl ltho
than 5000 labOrers, ard supporting popula-
ton OF 50, 600 OF $1,000 men, women and chill
dren. In addition to those directly dependent
upon this industry for living there IS large
! percentage OF the population OF southern
Georgia who are Indirectly but largely inter
ested in the prosperity and success Of the busi-
/ ness b, reason of their ownership OF tlmbered
| lands upon which the business IS carried on
For the wear ending March 81, 1884 the pro-
| duct Of the state of Georgia was probably up
80 UN horn of a
which Savannah received about 100000 bar
rels over 800 900 barrels of this, or say 10000
| barrels spirits and 100000 barrels rOsln, were
| transported over the railways leading into
Savannah. The total value of the exports
| here was about 100000. being second only TO
cotton in value as an article OF export, and Its
importance factor In the general trade
| and prosperity OF the city and State can hard
| ly be over estimated.
| In consequence of the over production Of
| naval stores. and the general depression which
il affecting all branches of trade the prices of
| spirits Of turpentine and rOsin have declined
| to a point below the cost OF production, so that
| manufacturers are now running their Dusl-
ness in most cases at an actual loss.
! Operators and factors in this state nave re-
.duced the cost Of production, handling and
sale by every means in their poWer-every
/ item or expense within their control having
/ been cut down as low as posslble-so that the
| business could scarcely be run upon Oser or
| more economical basis than now prevails, and
| still there is no margin OF profit to the pro-
| Queer. The compensation to factors and com
| mission merchants for the handling ana sale OF
| the produce being certain percentage on the
| gross proceeds. OF course their earnings are
/ reduced just in proportion with the decline
| in values, while their business risk IS nece--
| sarily much greater than II was Whle the
| business was profitable.
THE ONLY CONSIDERABLE ITEM OF EX-
| PENSE
| connected with the business which has not
| been reduced at all, Is railroad freights. The
present rates Of freight were adopted
I gNf
/ naval stores were relatively las com
/ pared with the cost OF prOductlOn)
/ much higher thar at present, and when the
quantity transported by the railroads was
ONLY about one-fOurth, or one third, as great
as it is now. If the roads could afford TO
| carry a small quantity at such rates 1t would
| seem that they could well afford to carry
| three or four times as large quantity at
| much lower rates, since the cost OF transport
/ ing a large crop is of course relatively much
/ less than for small one. AT the PERIOD when
| the present freight rates were established
nearly all the rosin produced IN this State
| was of the finer grades made from virgin
| boxes at points comparatively near
/ to the markets and Immediately on
| the lines of railways. Now in consequence of
| the exhaustion of these nearer locations most
/ of the stills are more remote from Savannah
| and further from the roads, while three
| fOurths Of the rOsin produced Is OF lower
| grade, worth only about pne-third as much
| per box as the finer qualities produceda few
| years ago.
We estimate that three-fourths of all the
| stills in Georgia are located an average dis
| lance of four or five miles from the railroads
| many of them being ten to twelve miles
| away. This involves long haul with
wagons. which for 50 heavy and bulky a pro-
Ducts Of course. very expensive.
AT PRESENT PRICES THE PRODUCER
cannot afford to barrel and ship the low
grades of rOsin already made. to say nothing
| of the cost of making 1t! The following fig
ures show for themselves, and clearly prove
he truth Of the above assertion:
| One barrel rosIn weighing 400 pounds at
81 Oj for 80 pounds ...-......... 81 30
Expense Of shipment and sale
One rOsln barrel .--.--.---...- ACC.
Hauling 3 miles at sc. per mile. SOC.
Freight 500 miles at tariff. lee. 64c.
Storage, &c.; inspection, cooperage
and weighing, &c o.. ..--....-- l2c.
Fire insuranc, lc.; commission, &c. 5c.-$l 81
Loss ................. ............... /
BY these figures it will be seen that those
operators more advatageOusly located may
get a few cents barrel net out of their low
grades rosins, while hose at remote points
are entirely prohibited from shipping their
stuff. OF course there is no profit in the pro-
duction of it, even to the most fortunate, and
many of them have already abandoned the
cultivation of their old boxes for this
season. But there Is great deal of
rOsn in the remote interior already made,
which cannot be sent to market because OF
the prOhibtory expense OF shipment. In view
of all these facts, we can see no means of re-
lief except by redu tion in the rates OF freight.
AtAtue present Idttos Is euON II ny bub dCCOuub
sales etatement given, the railroad company
gets 81 cents out of the barrel of rosin if
shipped, while the producer gets 0! Conse-
uuentIy, the producer Is not going To ship il,
the factor loses his commission and the money
invested in the barrel; the inspector and Ia
borer lose their fees. 1t seems to us that the
railroad companies had better get a reduced
rate than not haul the rOsin at all.
We learn that the railroads in South Caro-
lima have already reduced their rates to meet
the present emergency. although the distances
there are generally much shorter than in
Georgia.
The chief cause Of the present low prices is,
of course, production, and the obvious
remedyis to produce less but the nature of the
business is such that it cannot be stopped in
the midst Of a season without great loss
ALL THE PREPARATIONS AND OUTLAY
having been made for a seasons work it must
be carried on 10 the end of the season or else
sacrifice a great part of the capital invested, |
and sudden stoppage of production would, |
of course, be as disastrous To the railways as
to the turpintine makers and their factors. |
1t seems to us much the best plan for all par
ties concerned that the roads should make
such a reduction in existing rates,
for the present season at least, as
will enable operators TO continue mar
ketng their produce, and we suggest !
a reduction of at least 1913 per cent. By the |
close Of this season it is probable that many |
operators will be compelled to abandon the |
business, and the production being thus ma |
terially reduced, may hope that prices |
will advance and the industry be gradually |
restored to healthy and prosperous condition.
We might enlarge on this subject, but feel |
that we have set forth all the facts necessary.
Hoping to receive reply at your early conye-
fSignedI JAMES X. CLARKE,
President Savannah Board of Trade.
Metropolitan Hall to be sold.
At a meeting of the Metropolitan Benev-
ho1 off