The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-06-02
THE FIGHT OYER RATES.
CONDITION OF TIE LUMBER AND
NAVAL STORES INDUSTRIES.

/ some StartinG f6cte brought Gut IN
the Arguments Before the Railroad
Commission-The Report of the
Naval Stores Committee and the Ar
guments on Both sides Submitted to
the Board Of Trade.
John r Young, chairman Of the special
committee appointed by the board Of trade
TO appear before the railroad commission in
behalf Of tha naval stores commission men
and producers, upon the hearing of the Pc
tition of the railroads for an increase in
freight rates upon this product, submitted
his report 70 President Purse yesterday
morning It is signed by John r. Young,
chairman, and G. d. Baldwin and ]. B.
Withers.
The petition Of the railroads for al in
crease was as follows:
Inasmuch as the conditions prevailing az the
date Of circular No. 127 have greatly changed.
ia that since the making OF the rates therein
prescribed taxes for county purposes have been
| levied upon the railroads, and also taxes for
municipal purposes, and the percentages
above the standard tariff have diminished. thus
| largely reducing the revenue Of all the roads,
| your petitioners RESPECTFULLY ask for the follow
ing increase Of rates on lumber, logs, poles,
| posts shingles and naval stores, 10 wit: On
to 80 miles, inclusive, rs per cent: on 50 10 IS
miles, inclusive 20 per cent; on 90 to 100 miles,
| elusive, 10 PER cent; on no 10 80 miles, in
| elusive, per cent.
The petitioh was signed by A. D. Owens.
traffic manager of the Savannah, Florida
and Western and Brunswick aud Western
| railroads; A. g. Knapp, traffic manager OF
the Georgia Southern and Florida railroad;
Edward Fitzgerald. traffic manager OF the
| East Tennessee, Virginia and Georgia rail-
road; @. S. Goodman, traffic manager Of
the Savannah, Americus and Montgomery
railroad, and w. +. ShelmAn, traffic man
ager OF the Central railroad.
COL. OWENS ARGUMENT.
Col. A. D. Owens presented the railroads
position very clearly. "The history of the
lumber interests in Southern Georgia. he
'oDe-horse' mills on the line OF
our railroads have been replaced
by extensive and well equipped establish
ments, surrounded by villages inhabited by
their employees with miles and miles of rail-
road tracks and number Of locomotives
absolutely controlling hundreds of square
miles of pine forests.
"The recent announcement through the
press of the purpose Of the Georges saw-
| mills in forming a trust TO regulate the
price of lumber Is move in the
right direction. In the announcement IL is
stated that one of It's objects is TO
put an end to the mills bidding against each
profits OF their business. 1t is that practice
to stop which they are directing such in
| teiligent efforts in forming trust TO con-
troll the prices
THE rates. Col Owens said, (which
have been prescribed that the railroads shall
charge are not high enough TO yield them
that profit which they are entitled to re-
ceive upon their investments. The rate,
one direction. absolutely represents
double the mileage. To illustrate, II mill
is located 100 miles upon the Savannah,
Florida and Western railroad from Savan-
nah. we must perform train service Of 200
miles in order to earn the amount which
this commission has stated we shall charge.
We insist that the present rate Is not suf-
ficiently renumerative to the railroads. and
before this case closes we will submit argu-
ments through our counsel that 1
believe will convince the court
that the lumber business is profitable
to the manufacturers. That the rates are not
remunerative to the roads it is only neces-
sary to refer 20 the earnings Of the Savan>
nah, Florida and Western railroad, reports
of which are on file with this court, and you
will find that the earnings for 1890 were not
1888 cent per ton Der mile, and the
average haul was III miles. This includes
all classes of freight, and ii, expenses exceed
one cent per ton par mile.
THE MILL MEMS CLAIMS
"lt will doubtless be contended,n Col
Owens added, "by the representatives of
the milling interests that this industry will
not bear any increase in the present rates
Of freight. This argument will be applied
by them to all mills, irrespective of their
distance from markets. Anticipating this
argument would call attention that we
are at present transporting lumber a t great
distances, /. g., 200 miles aud
over, the rates on which
are $50 per carload and over of "a, 000
/. pounds. What 1 desire to call your atten.
ton TO mainly is that this lumber comes in
; competition with the lumber Of shorter
hauls, say from IS to 100 miles, where the
rates are s12 and $14 respectively. 1t will
be contended that in many instances the
, mills situated at the greater distances are
r in virgin forests along the lines Of railway
\ just opened up. hardly think
: this is :. an an argument yt to be
older mills may have to 60 further for their
/ lumber, their superior organization and
! ability to mechanically produce far larger
. product is so far in advance of the smaller
mills that it gives a positive negative to
' their assertions"
tention to the rates in the different southern
states, and to the fact that the rates in
Georgia are lower than those of any other
lumber producing state in the south.
/ | In 1887 the commission reduced the
rates on naval stores some 20 per cent. The
impelling motive Of the reduction was the
) depressed condition Of the industry. The
. production has increased from 153, 47S bar
, rels in 1878 to COS. 535 barrels in 1890
8 INCREASED PRODUCTION AND HIGHEF
PRICES.
5 In addition to the very considerable ad-
vance in prices in rosin by its different
grades, the further fact is noted that ir
. 1887 the receipts were 55S, $50 barrels, whilst
1 in 1890 they were 605,5S5 barrels, an in
creased production and great increase IA
prices.
Col Owens did not concede that prices
Z | should regulate the rates of freight, but Al
the main argument In 1887 was based upor
the market values he thought the railroad
o could now claim with justice the appiica
tion of this argument as favorable to their
8 petition for an advance IN the rates. Th,
Q area Of the turpentine lands is constantly OF
r the increase.
r Hon. s. g. McLendon's argument in be-
half OF the railroads stated the difference il
the conditions from those In 1888, when tn,
> present rule was made. The railroads hav,
| mad heavy burden of county and municipal
1 taxation imposed upon them, from which il
Is necessArY they should have soma relief