The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-10-30
IT May BE REMOVED.
Tho Diherential on Cotton Between
Here and Norfolk.

Here and N orfo4k.
The executive board of the Southern
Railway and Steamship Association meet:
/ in Atlanta tomorrow.
There are indications that the meeting
/ will be lively and interesting.
! 1t was reported here last week on
| apparently good authority that the
| diferential on cotton rates no W existing
/ between Savannah and Norfolk would bC
removed for some reason not fully under
| stood 1t was supposed, however that
| the fact that Norfolk is behind in heI
cotton receipts while Savannah is ahead
was the reason for the proposed removal
of the diiferential in order to give Nor
folk, or rather the railroads leading to
/ that port, a chance to catch up.
The di1erential between Savannah and
| Norfolk Is II cents, that is, Savannah is
allowed rate i cents less than the rate
to Norfolk from all points in the territory
of the association west of Atlanta. This
is because of the advantage in distance
Savannah has over Norfolk from these
points on the one hand, and on the other
hand because of the advantage Norfolk
has over Savannah by reason of cheaper
sea rates.
The di1erential is to place the Virginia
and the Georgia ports on the same foot
ing and prevent the disastrous competi-
ton which would result among the rail
roads if there were no standard basis of
rates.
MIR. f. B. Papy, general freight agent
of the Savannah Florida and Western
railway, who will attend the meeting of
the executive board as the repre-
sentative Of his line, said yesterday
that he did not think that there
was any foundation for the report that
the diherential would be removed. Mr.
Papy said that in spite of their agreement
some of the railroads had been slashiug
rates right and left, with the result of
precipitating a very unpleasant state of
affairs Some roads had secured more
than their proportion of cotton while
others were behind. 1t is on this account
that the meeting Of the executive board
has been called, and steps will be taken
to put an end to the state of affairs.
Mr.. Papy did not say what railroads
had been cutting rates or who had
suffered. Reports from Macon, however,
indicate that point as the center of the
difficulty.
The East Tennessee and the Macon and
Northern railroads have taken more than
their share of cotton out of Macon while
the other railroads leading from that
point are behind. The Central railroad is
over 5000 bales behind.
Commissioner Stahlman has been trying
to get the two roads which are ahead to
hold up for awhile and give the others a
chance to catch up, but they
have not done so. it seems, as vet. Rate
cutting, it is said, is going on at other
points also, resulting in general dissatis-
faction in railroad circles.
1t may not be known to the general
public that among the Oduties
of the Southern Railway and
Steamship Association besides that of
fixing rates which the railroads
agree to abide by, is that of apportioning
the cotton among the different railroads
and assigning to each railroad its proper
tion at each competitive point At first
sight this might appear as rather queer
arrangement intended to prevent compe-
tition to the detriment of the public, but
investigation proves this not to be the
cBse.
The apportionment is based upon the
average receipts of each railroad for
number of years past at each COMPETE
tive point, and also its carrying capacity.
The division of freights is very care
fully made, so as to give satisfaction to
all the lines concerned. The effort is
made to give each line it's fair proportion
of the business.
The object of doing this is to prevent
the cutting of rates by the railroads in
the effort to secure business from COM
petitive points.
If each railroad were to live squarely
up to its agreement, each road Would Sc
cure the proportion of cotton assigned to
it by the association, provided the crop
was as expected.
Competition among railroads, however,
is about as lively as anything can be, and
all sorts of schemes are adopted to get
ahead of each other.
The giving of rebates is the most COM
mon way of getting ahead of each other
the railroads have When a railroad
leading to another port gets big con-
signment of cotton out of Savannah's ter
ritory, as occasionally happens, Savannah
railroad men will tell you that the line
leading to the other port has given a re
bate. No railroad man will ever acknowl-
edge that his line ever does anything of
this kind. It is always the competing
line that does it, and he considers it a
great ofense against railroad ethics.
Still, there is a great deal of it done,
and Savannah is frequently a loser
by it.
The giving 0f rebates and the cutting
of rates are strictly against the rules of
the Association and heavy fines are fire.
quently imposed for these violations.
1t is expected that several important
questions will come before the meeting of
the executive board tomorrow