The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-03-29
FREIGHT RATES TOO LOW
THE RAILROAD COMMISSION APT
TO GRANT AN INCREASE

Represented at the HearinR at At
lanta Yesterday-Tha Central Earn
ing Less Than Per Cent. on Its
Investment in the State.
ATLANTA, GA, March 2s.-Ths applica-
tion Of the railroads Of Georgia for an in-
crease of 25 per cent on the present local
rates was taken up again to-day by the rail
road commission. AT the last meeting Of
the commission in February the railroads
took their stand for higher rates, Receiver
Conner Of the Central opening the argument
before the commission. 1t Is claimed by
the roads, every road In the state having
joined In the movement, that
rates have been continually reduced
since the creation Of the commission
until they are now actually carrying local
freight a5 a loss. and are unable to earn
even a low rate OF interest on the money
invested. To support this claim three of
the biggest systems to-day filed statements
with the commissioners showing the net in
terest earned on the money tied up In their
property. According to their statements
the Central road Is earning an interest of
less than 3 per cent on its Investment,
which is about S24 .0O0 per mile the Georgia
road earns less than 81 per cent, and the
East Tennessee less than per cent, on its
investment in Georgia. The East Ten
nessee is only able TO keep up through some
favorable returns in Tennessee and Ala
uama.
SOMETHING WRONG.
Such condition as this shows that there
is something wrong somewhere The de-
moral7ed state OF the railroad interests OK
Georgia is notorious and the fact that Gen.
Thomas of the East Tennessee was to-day
quoted by Receiver Fink as having made
the statement that he would he glad to turn
his road over TO the state Of Georgia for ten
years If the state would only pay the
amount Of taxes this road pays TO the state
or "a rental shows what the effect OF the
hostility amounts to. With the railroads it
is a question OF higher rates or less 40
commodations, fewer trains aud a re-
duction of wages all along the
line. The through rate is not attacked 10y
the roads but only the local rates fixed by
the commission, which, by statements filed
to-day, are shown to have been reduced
since the commission was created, on vari-
GUS articles, from Is to 10 per cent.
In order to rectify this injustice general
revision OF the tariff sheet is demanded as
a right by the railroads, aud so strong have
that the commission will yield, though in
| some instances the rates will not be
| changed.
OBJECTIONS MADE.
The lumhermen and naval stores men,
made a strong protest TO che CO nmission to-
| day and it is understood tonight that an
increase in this classification will not be iu-
sisted upon by the railroads. The railroads
! hold that the increase they ask for would
IV,,k ha al hvr kha I ha
so small In detail as not to be noticed, but in
the aggregate would largely relieve the
| present depressed condition OF the railroads
| doing business in this state. AT the meet
| ing to-day the railroads were represented as
! lollows II. M. Conner, receiver for the
| Central; w. +. Shellman, traffic manager
| for the same line; Henry Fink, receiver,
and T. Fitzgerald, traffic manager Of the
| East Tennessee; G. d. Owens, traffic
manager OF the Savannah, Florida
and Western; Sol Haas, traffic
manager, aud j. M. Culp, assistant traffic
! manager of the Richmond and Danville,
| and Mr. Foster. attorney for that system; /;
! Hon. n K. Harris, receiver for the Macon
and Northern; W. b. Sparks. receiver for
the Georgia Southern and Florida; J. NJ.
| Brown, traffic manager OF the Western and
! Atlantic, and others
| Receiver Conner Of the Central continued
the argument which he began at the Feb
ruary meeting, on the same line as already
stated, concluding by filing a written state
ment containing the demands Of the
| Central.
| Traffic Manager Shellman Of the Central
| also addressed the commission.
Receiver Fink, Of the East Tennessee, and
| Traffic Manager Fitzgerald, Of the same
| system, followed Mr.. Conner and filed SINH
| lar petitions.
The Savannah, Florida aud Western road
was represented by Traffic Manager G. ID.
| Ovens and Sol Haas, traffic manager, and
| Attorney Foster, of the Richmond and
| Danville, addressed the commission on be-
! half Of the Danville.
! The estimated rate Of interest being
earned by the Danville was not presented
but its ave ages are as low as the Centrals +,
| IL is understood.
HANSON HEARD.
Mai. j. F. Hanson, representing the
board of trade Of Macon made a strong ad-
dress to th3 commission, favorable TO the
increase in rates asked for by the roads.
He, however, urged that if the increase be
granted the state should sec to it that 1t
was uniform and impartial. Ma. {.
Hanson believed if the railroads were per-
mitted TO earn fair interest there would
be some general prosperity throughout the
state. He did not speak as a railroad stock
holder, because he is not interested in rail-
road management, but simply as a
shipper. The effect Of the railroad demor-
alization was to inJure all other
business. Maj. Hanson illustrated this
position fairly by referring to an effort he
had recently made to borrow 200 from
a New York bank, from which he had pre-
viously borrowed as much as 500 600 and
with which he has large business transao
tions. The loan was refused because the
bank had positively determined TO lend no
money in Georgia. This, Maj Hanson took
It, was the result OF the apparent hostility
| of the state 60 the railroads.
Mayor McDonough OF Savannah and Nell
son lift argued against the increase OF rates
| on behalf of the lumOermen and John K.
! Young aud A. q. Cassels argued the case of
! the naval stores men. The lumber and
| naval stores rates were advanced by the
commission in a rouudabout way some time
ago. and the railroads have about deter
mined to leave this class out Of their appli-
cation for an increase.
Besides those who addressed the COM
mission there we're a large number OF other
large shippers present, representing prin-
| cipallY .he lumber districts.
! When the commission adjourned the
bearing had not besn concluded, and at 9
O'Clock tomorrow morning the discussion
will be resumed.
STABBED TO THE HEART.