The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-03-01
FREIGHT RATES TOO LOW
RECEIVER Conner BEFORE THE
STATE COMMISSION.


All the Other Railroads 10 the State
Join Him in Asking for an ADJ
vance Of 90 Per Cent in Rates-The
Gross Earnings of the Central for
the Past Eleven Months Stated at
S4,946,1o1.
ATLANTA, GA, Feb. 2S.-Reoeiver Conner
OF the Central railroad appeared before the
railroad commission to-day and submitted
an argument on an application OF extraor-
dinary Importance TO the people Of this
state. Mr.. Conner, who is backed up by
every other railroad doing business In Geor-
gia, entered a formal protest against the
apparent unjust attitude OF the commission
toward the railroads, and asked for such an
advance In the rates Of local freight laid
down by the commission as would permit
the lines to earn reasonable profit on the
amount of capital invested In their con-
struction and operation. Soon after taking
hold OF the Central Mr.. Conner began an in-
vestigation 60 discover the cause, II any, OF
its bad financial condition, 80 far as its
earning capacity was concerned. The sys-
TEN was in good physical condition, appa-
of tonnage hauls, and he was at loss to
understand why the fixed charges could not
be met with fair interest return to the
stockholders. He early came to the con-
clGsion that the freight tariff fixed by the
railroad commission was too low. The fig
ures showed an astonishing reduction
from the rates In effect prior TO the exist
ence Of the commission.
OTHER LINES INTERESTED.
Acting on this, Mr.. Conner brought the
subject to the attention OF other lines and
movement was soon organized to secure q
revision Of the tariff by the commission to
such an extent as would give oil lines an
opportunity to earn reasonable dividends.
Acting with this end in view, the various
lines made up a statement from their rec
ords supporting the claim that the
freight rates now in operation ara
entirely too low TO be just TO the railroads.
To-day such statements, together with
formal application for an increase OF rates,
we're submitted by President Conner for the
Central and by the personal representatives
of the Savannah, Florida aud Western,
East Tennessee, Richmond and Danville,
Atlanta and West Point and Georgia roads,
the application of the Central covering tha6
entire system. President Comer's was the
only argument delivered to the commission.
Others will be heard next week, Receivers
Iluidekoper and Foster appearing for the
Richmond and Danville.
MIR. CoMER's CLAIM.
The point made by Mr.. Conner, who pre-
sented figures from the books showing the
actual legitimate cost aud obligation Of the
| Central system and the gross and net earn
| ings for several years past up to date, as a
basis OF calculation, was that by constant
lesseninR OF rates the net earnings are kept
| about the same, though the expenses null
tiply and the investment IA the property
increases. He did not think it just that the
best year IN the Central's history, 1891,
should be taken as a standard by which to
| make rates, though even in that year of
| extraordinary heavy tonnage the net earn-
| ings we're practically the same as during
the past year Mr.. Comer's estimate Of the
cost OF the entire Central system
is $24,534 per mile, deducting
s5, ,OOO, 600 for the Ocean steamship line.
Upon this amount he believes reasonable
interest should be earned. The net earn
ings for the past twelve months have been
81, 23S, 755 80, and the gross earnings for
eleven months past S4945, l9l 80. Local
rates are the basis Of the fight. Eighty-flve
per cent. of the Centrals business, Mr..
Conner said, originated or terminated on its
own rails. The system must he maintained
by local business, If the tariff was in
CREASED, however, home industries which
were enabled to compete with outside in.
terests because of special rates, would not
be affected, because these special rates
would be continued by the roads, applying
as they do only between competitive points
and functions.
% PER CENT. ADVANCE.
A 25 per cent. advance Is what the roads
want. The GLASSES upon which this advance
would bear. Mr.. Conner stated, composed
so per cent. of the bulk OF the CentraPs
business. Such an advance, the railroad
men claim, would not be felt by the cons
sumer. II would not cause rise In prices
| to any appreciabls degree. Figures quoted
| by President Conner showed that the cons
mission had reduced the rates on various
classes Of freiRhts ranging from 10 to So
| per cent. since its establishment.
The railroads evidently mean business.
| and the effort to secure an advance OF local
rates will not bs abandoned until every ar
| gument is exhausted.