The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-10-18
RATES ON THE CENTRAL,
Mr.. McLendon Sets Forth More Facts
About the Commission Cuts.

Mr.. McLendon Sets Forth More Facts
About the Commission 5 Cuts.
Thomasville, Ga. Oct. l7.-Editol
Morning News: In the omission of quota
ton marks, parts of sentences and so on,
Jared rather badly at the hands Of the
typewriter or typesetter in my commune
cation in your issue of Oct. IA. In the
close Of that communication I asked, ARE
we going back TO the train service of
twenty years ago;' and by some means
the latter part Of the sentence was
omitted But your space is too valuable
for further correction. 1t was my pur-
pose in that article to show that
the Central was more de-
pendent on her local rates for
revenue than any other system in the
state, and that the great reduction in her
rates for short hauls was disas trous to
her. I repeated the figures in order to
emphasize this. In Capt. Raoul's letter,
from which l quoted, he made the follow
ing Statement: Leaving out the certif-
Gates of Indebtedness and estimating the
per centage of interest earned upon the
original capital, the company earned:
In 1850 about 1923 per cent.
In 1881 about S7$ per cent.
In 1882 about 80 per cent.
In 1858 about On per cent.
In 1884 about per cent.
The commissioners rates went into eff
feet March J., 1880 so that their force did
not begin to show up seriously until 1891.
From that date down to the date of Capt
Raouls letter, excepting the year 1888,
there was a continual decrease. Capt.
RaOul, in his letter of July 25, 1885, said
that Mai Wallace had committed himself
to a theory of low rates, and that he
was endeavoring to sustain his the
ory. l think an impartial student Of
the history of Georgia from 1873 to
1885, in so far as that history relates to
railroad legislation, could easily find
reason for the ruinous reduction in rail
road rates brought about by the railroad
commission. What was it, that more
than all things else, brought about the
establishment of a railroad commission
in Georgia. 1t was what was then called
unjust discrimination. For instance, the
Florida Central and Peninsular would be-
gin a war on the Savannah, Florida
and Western and by putting on
line of boats to Bainbridge
would give rate Of 81 per bale or 20
cents per hundred pounds on cotton from
Balm bridge to Savannah. This cut would
be met by the Savannah, Florida and
Western and all the cotton within thirty
"
ried there for sale All the neighborlng
towns would cry out against the Savan-
nah, Florida and Western and say it was
discriminating uniustly in favor of Balm
bridge. The rate from ThOmasville to
Savannah in those days was about
20 cents per hundred pounds, and when
cambridge had a rate of twenty the diff
ference was $3.50 per bale or 4 cent per
pound in favor of cambridge. The con-
go to cambridge, and Townsville called
this an unjust discrimination against
her. Now, to remedy and prevent such
unjust determinations, the commission
was created. One of the first things the
commissioners did was to promul-
gate rule 6. Under this
rule whenever railroad re-
duced q rate from one point to another,
it was required to make a corresponding
reduction over its whole line This
seemed fair rule and the commissioners
were so well pleased with it that they
called special attention to it in their first
semi-annual report, made May LIST, 1880
They said, the most important rule
adopted by the commission and the most
far-reaching in its consequences, in the
prevention of unjust determinations,
is Rule No. 6, Oy which
discrimination IS prevented as between
communities as well as between indi-
Vidual customers"
This rule, looked at theoretically,
would certainly put a stop to the gre at
crime of the day, unjust determinations.
1t will be interesting now to see what
rule did from a practical standpoint.
The South Carolina railroad put in
force a rate on cotton from Augusta
to Charleston just enough below
the commissioners rate from Augusta
to Savannah to draw OF all the Augusta
cotton to Charleston. The Savannah
merchants, bankers, draymen, ware
hOusemen, insurance men and the Central
railroad were all losers by this, but how
could the Central help herself and the
state} If she reduced her rates from Au-
gusta to Savannah to meet the reduction
made by the South Carolina road TO Char
lesion, she would, under rule 6, be
obliged to make a correspond
ing reduction over the whole
system. To stop the leak at the spigot
she must knock out the'bung. The com
mission was running Savannah and the
Central and enriching Charleston and
the, South Carolina railroad. In this
emergency, what did the commissioners
dol They amended rule 6. They multi
fed the rule with the amendment. 1t
would sound better to say
that that they + had uo amended to the rule
they had repealed it, or revoked it, or
abolished il. They amended it by order
ing that whenever a railroad subject TO
the jurisdiction of the commission came
in competition with road or line of roads
not subject to the Jurisdiction of the com
mission, that at the point ana from the
point of competition rates might be re-