The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-07-12
THE COAL RATES DID 1T.
GEN. ALEXANDER EXPLAINS TIE
CAUSE OF TIE LEWIS BILL.

I &c DOG5 NOC 1uluE INC L0slSI6Lur6
WIN Seriously Consider the Measure
at All-It Would be an Unfortunate
/ Thing, He Says. ifthe CentraTs Lease
| Should be Broken Row.
Gen. Alexander returned from New York
yesterday morning. de was seen by
| MORNING News reporter in regard to the
agitation in the legislature looking to the
dlssolving Of the lease IF the Central rail-
road to the Richmond and Danville.
Gen. Alexander thinks the whole affair
grew out Of the recent increase in coal rates
to Atlanta and other points by the lines of
the Richmond and Danville system. He
says the anlmus against the railroads
on account of the increase in coal
rates is entirely unjust and an examination
OF the rates changed by the railway system
Of the country upon coal will show it to be
SO.
GkORGiA'S RATES THE LOWEST.
The coal rates charged by the railroads
OF Georgia are the lowest rates upon coal in
any state in the union" said Gen. Alexan-
der. The rates were given to encourage and
| Georgia and Alabama when it
was IN its infancy The railroads have
been losing steadily by them. The Georgia
Pacific, which is the road most directly in
| terested, fell short of earning its fixed
| charges about $500, 900 last year.
At the meeting Of the rate committee of
the Southern Railway and Steamship
Association at the De Soto. in April, it was
decided to increase the rates upon GOAL 25
per cent. This rate was concurred in by
the Central, the Richmond and Danville.
aad the Louisville and Nashville, and ali
me southern railroads represented at the
meeting. A rate Of 81 % was agreed on
from the mines to Atlanta, which was an
increase Of 25 cents. The rate applied to
the mines In both Tennessee and Alabama.
THE CONSUMERS OBJECTED
or courfe, said Gen, Alexander, the
increase was Objectionable to the con-
'umers, but it was necessity to the rail-
roads, which never made any money with
the Old rate. About July l there was a big
contract to let to furnish the Georgia rail-
road with coal, and Of course all the rail
roads from the mines were anxious that the
mines along their lines should get il, so
they would get the hauling of the coal. AS
1t happened, the increase in rates
ha1 been such that, in rail-
road parlance, combination
of local rates "cut the through; that is
two local rates, say from Birmingham to
"a intermediate point, and from that point
to Atlanta, were together less than the
single through rate from Birmingham to
Atlanta, and the coal miners. by billing
their coal to the intermediate point and re-
billing it to Atlanta, secured rate less
than the through rate which hal bsen
agreed upon.
TIE COAL MINERS CAUGHT ON.
In this case it was the coal miners at
Soddy, above Chattanooga, who were
sharp enough TO discover that by billing
their coal to Boise, junction point near
Chattanooga, the rate to which was IS
cents and rebilling it TO Atlanta, the rate
from Boise to Atlanta being so cents, they
got through rate Of 81 Is, Just 10 cents
less than the fixed rate of 81 %, which had
been agreed upon.
Traffic Manager Sol Haas, said Gen.
Alexander, is always alert to the interest of
the lines which he represents, aud as soon as
he discovered what the Soddy coal miners
were doing, he at once set out to
protect the interests Of the Georgia Pacific
He wrote to the Cincinnati Southern and
insisted that it should protect the rate
which he'd been agreed upon by increasing
its local rate FROM Soddy to Boise from IS
cents to 45 cents, or by some other means,
that the Tennessee mines should have no
advantage over the Alabama mines.
LOOKED FOR THEIR INTERESTS.
''You- see" Gen Alexander added. rail
roads are always alive TO the business in
terests along their lines not withstandinR the
general public does not believe so. Thee
letters OF Mr.. Haas to the Cincinnati South
ern are what such hue and cry has been
raised ebout Mr.. Haas was simply en-
deavorlng to protect the interest of his line
and have the Cincinnati Southern preserve
the rate as agreed upon.
ut happened unfortunately that just
at this time the coal miners con-
G uded they we're not making ANYTHING
on their coal and agreed upon an
increase in price of 20 cents a toa. This
with the increase of % cents a ton freight
by the railroads increased the cost of cal
70 the consumers IS cents ton. Naturally
they exclaimed against it, and the railroads
were the first TO be attacked.
LOWER THAN IN PENNSYLVANIA.
The coal rates charged by the railroads
OF Georgia are less,n Gen. Alexander said.
than those upon the Lehigh Valley and
other roads in the coal country Of Pennsyl-
vania where they haul 100 cars to our one
The Railroad Commission OF Georgia has
the right to fix rates between all points
within the state, and the int state
commission has the right TO fix rate,
between Gil points in separate states.
and they are the bodies to be appealed TO
am perfectly willing to have either of
| tn6iu pass upOu this rate.
at is about 1876 miles from Birmingham
20 Atlanta and by the rate fixed by the
| ieorgla railroad commission the Georgia
| Pacific would be authorized to charge Sl165
per ton instead Of 81 25, the present rate. or
81, the old rate-less than l cent per ton
per mile"
DON'T THINK IT WILL PASS
Gen. Alexander said he did not think the
legislature could seriously consider the
| question of breaking the lease.
1T would be the greatest calamity that
ever occurred to the people of Georgia and
savannah he said. II am perfectly salts
tied to risk my reputation as a railroad man
and fnancier upon the Accomplishment Of
| this lease. The minority stockholders are
safe with a guaranteed dividend of Der
| cent, and SO are the larger stockholders for
that matter. The results of this
lease will be that the whole western
| traffic Of the Richmond aud Danville
| system will come over the Central railroad
lines to Savannah. To break the lease
| would be a big thing for Norfolk. The
effects would be to drive all this western
| ratio away from &c )rgia and Savannah
and to pour it into the lap of Norfolk. If
the stockholders and those who are the
most interes ed in the management of the
road are satisfied, why should men who
have not a dollars worth Of interest in the
road and who are not affected by the change
one way or another attempt 70 break itgi
However the lease may have been re-
garded In Savannah when it was first made.
he only apprehension now is the fear that
the legislature will tDdarfa a 10 70 -