Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-06-01
GIGANTIC RATE WAR.
Every Railroad South Of the Ohio and
Potomac Involved.


MEMPHIS. TENN. May si.-The mos,
gigantic rate war In the history OF rail-.
reading in the Southern States has broken
out, and every road south Of the Ohio
and Potomac rivers. and some OF the
eastern ones are involved. The trouble
has been brewing for some time. Three
| or four line have been secretly cutting
rates on eastern business for a month
past. thereby rcaping a rich harvest The
other roads soon discovered the cut and
demanded that the guerilla warfare cease.
The Southern Railway and Steamship AS
sociation was asked to interfere and put
a stop 70 the rate-cutting. but Chairman
Stahlman was unabls 70 bring about a
settlement, and advised the roads that
had stood by the agreement to 90 into
the fight for blood AZ a result the Lou
isville and Nashville and East Tennessee.
Virginia and Georgia. the Tennessee Mid
land, the Kansas City. Memphis and Bir-
minEham. and ihe Nashville. Chattanooga
and 81. Louis railroads to-day posted a
notice that reduction Of 90 per cent. on
freight 20 and from eastern points would
take effect June lst.
The notice OF the cut created no little
excitement In railroad circles but II was
not thought tEat passenger rates would be
disturbed. This idea was dspelled this
afternoon, however when the Tennessee
Midland posted notice of a sweeping cut
in passenger tickets 10 eastern and north
f.tsvF ,.NsHNH
promptly met the reduction, and an
nounced that 1t was in the fight to a
finish.
The other lines have not met the pas
scnger cut yet, but they are expected to
do so tomorrow.
STEAMBOAT COMPANIES. TOO.
BALTIMORE. MD, May 3l--A bitter
freight-rate war IS on between the
southern railroad and steamboat compa-
MES, Last Monday several of the COM
panes cut their rates 20 per cent. and
now the Merchants and Miners Trans
cut Of nearly 50 per cent, TO go into
effect next Sunday. The reduction is
on all classes of freiEhts, and for some
time at least Southern shippers will
enjoy lower rates than have been known
before
Efforts have already been started by the
officials Of the transportation companies
to reach some amicable agreement, and
calls have been issued for a general
meeting in the latter part Of June.
The history Of this war is an interest
ing one. For a number Of years the
southern transportation companies, both
railroad and steamship, have been united
IN the Southern Railroad and Steamship
Association. This has maintained a uni
formity OF rates, and prevented any cut
or wars. Last summer the Merchants
and Miners Transportation Company, of
this city. withdrew from the association,
upon the ground that It did not approve
of some Of the acts Of the management.
a few other companies also withdrew
from the association about this time. |
The freight rates were. however, main |
talued by the Withdrawing companies, and |
no fight was then precipitated. A few
months ago the Louisville and Nashville
road got into a wrangle with the Queen
and Crescent route, and withdrew from
the association. This withdrawal had
been preceded by that Of the Norfolk and
Western road The Louisville and Nash |
willie promptly began a cut-rate war This
has been followed by the action OF the
Merchants and Miners Company. which |
viii either force a settlement Of the war
or cause it's competitors to handle freight |
at ruinously low figures.