The Marietta journal. [volume] (Marietta, Ga.) 1866-1909, 1890-03-20

ielt no incentive to reduce rates or create a
new business, bat when this new connect
itor was wisely created by the peonle Of
Georgia, the lessees of the w..t-
ern and Atlantic found that
they needed business, and could not
afford to haul empty cars to the west.
They fixed very low rate for TRANSPORTS
ton of melons from Georgia to the north
west. They sent out agents and got TO-
gether these products of our soil and shin
ped them to the purchasers ready to receive
them in the Chicago section. Thus thew
developed a great business for our state.
RAILWAYS AS DEvKLoPEss.
As developers, railways must do some
thing practical. The practical development
must come from the low rate of freight
which allows products raised at one
point TO be sold at another point with
profit
The practical development is to give the
lowest possible rates, for by such means
alone can they develop our section, and cora-
petition between the great through lines is
the chief source for the reduction OF
through freight rates To the
claim that the competitive points
in the state will be few, and that thew
alone would receive benefit from these re-
duced rates, his reply was, maitain for
Georgia number of leading points with
cheap through rates by which to bring
those goods which we need, raised in other
states for sale, at cheap freight rates, and
it is easy enough, through our railroad
commission, to make the rates from these
central points rea, onao Die to every other
point within our borders. wecan control
local TRANSPORTATION 7 iS
portation that we must guard
HUMAN NATURE TO INCREASE PROFITS.
He further illustrated the effect.of COM
petition by other pursuits If single mer-
chant had monopoly in his
right to sell in Georgia all goods
made outside that our people bought
it might be true that that merchant would
have it within his power to reduce prices.
He would be interested in the development
OF the state, because in rtion to the
prosperity of the stat, u.u be the
amount of his sales. Il, any one be-
ieve that this merchant ~ uld resist the
temptation to put up the price?
Competition between the merchants in
duces them to work for small profits and to
extend greater accommodations to their
customers. Competition among the farm
their products in the best possible condi-
ton, and also to sell them at a reasonable
price. The want of competition when ap-
piled to either of these two classes would
put up prices and lessen the quality. Sup
pose there Were but single newspaper in
Georgia, and that every man in the state
VINO wanted paper was left to
the necessity of patroHiZing that one, can
there be doubt that the publishers of that
paper would be inclined to increase the
price and lessen the amount spent to gather
np Geographic service and news furnished
to the subscriber? AS the Importance of
tae railroad service rises far above that of
any other line of service in our entire
country, so the Importance of preserving
competition among our great through lines
grows in magnitude until it becomes abso-
lutely necessary to the success of our
local industries.
THE RAILROAD MONOPOLY.
But we are told by those who are inter.
eeted in putting the railroad monopoly
upon our state, that great combination OF
railroads is necessary to develop our in
dustries; that their expenses will be les
sened and they will be able to deliver
freight at cheaper rate. 81 have already
shown" said Mr.. Smith, chat the only
way to develop industries is by lower rates.
| have already shown that railroads have
charged all that the traffic would bear.
Even if they are able to do the work fog
less, they would look to their own interest
and charge more when they could. But
there is another answer to this argument.
Under the policy of consolidation they pay
for the property which they buy more than
the cost of construction. They incaease
the fixed charges upon which it is
necessary for them to make a dividend, and
this largely overbalances the reduction in
the cost of to them of transportation.
PAY FOR wATERED STOCK.
Gould not the Central, for instance,
be built easily for $4,000 a mile; yet its
fixed charges upon which it is proposed to
make dividend are about $4,000 a mile.
He had seen it stated that the fixed charge
upon that road are about three times the
cost of construction.
He then took up the effect of the railroad
trust upon railroad building. The trusts,
having obtained control of the railroads of
the state would be sure of the business, and
would feel no incentive to build additional
lines. 1t could wait for wagons to pull the
tIdHlC W IL lOr no competitor COulU OBTAIN
the traffic.
JOHN INMAN's FEARS.
He called attention to the declaration OF
the president of the Richmond Terminal
company, made in June, 1888, before the
trust began to grow, in which he expressed
the desire to form a board of arbitration,
because he feared railroad building would
be overdone in the south In other words,
that it was TO the interest of existing rail.
roads to prevent the construction of other
railroads. 1t meant that a board of arbi.
tratiou could prevent it, and if board OF
arbitration could prevent, how much more
could an absolute consolidation of the rail
roads of this section prevent additional raiY
road building?
1t is true that up to this time the trust
has not succeeded in defeating railro9'
building. The Seaboard and Roanoke are
about to build to Atlanta through this very
county, but that road would have been
built before now but for the work of the
Richmond and Danville trust. If it should
be absorbed by the Terminal there could be
no hope of future railroad development to-
wards the east. The men who have built
the new railroads of Georgia, Mr..
Jordan and Mr.. Williamson, both told
you that the existence of the
trust has checked the railroad devel-