The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-06-02
DOWN TO ROCK BOTTOM.
Freight Rates Lower Than They Have
Ever Been in the South.

EVeI been III lHe O0bln..
Rates on Nearly All the Classifca-
lions Reduced to IS Per Gent. of the
Regular Tariff Rates-Co1 nmissioner
stahlman Has Made Sweeping Re-
duetion and Placed All the Lines on
the Same Basis-Brought About by
Underhand Reductions and Re-
bates.
There will go into effect to-day perhaps
the heaviest reduction in freight rates
that has ever been made in the territory
of the Southern Railway and Steamship
Association.
The circular of Commissioner Stahl-
man, of the association, sent out some
DAYS ago. announced that June the rates
from Boston, New York, Philadelphia and
Baltimore on all the mum bered classes of
freight and on some of the lettered classes
TO all competitive points south Of the
Memphis and Charleston and east of the
Mobile and Ohio railroad, including
Nashville, Knoxville and Meridian, would
be reduced to IS per cent. of what the
rate was before the first reduction was
made. This means a reduction of % per
cent. from the regular tariff rates on the
classes affected.
This is the elimination of one OF the
most extensive rate wars perhaps that
the south has ever seen. Receiver II.
M. Conner, who returned from Atlanta
yesterday morning; where he'went to at
tend meeting of some of the lines OF the
association, said yesterday:
CUMBERLAND METHODS CAUSED IT.
4 of
going on for some time, much of it in Sc
cret and underhand way This rate war
has been brewing for six months
or more, and began in certain
lines trying to get business
which they were unable to obtain
without reducing rates and giving secret
rebates 1t is wonder that the trouble
did not break out before.
commissioner Stahlman stated in his
circular, that he had been trying to secure
maintenance of rates and a restoration
of confidence which had been lost through
irregularities, but unable to do so, he had
directed this reduction to 80 per cent. of
the regular tariff rates.
NO ROOM TO CUT ANY LOWER.
1.-THE commissioner thought" Mr..
Conner said, that by cutting rates down
to this point he could wipe out all mar
gins for securing rebates, and put all the
lines on the same basis. There is no
room, however, to cut any lower, should
any Of the lines desire to do so, as the re
duction made by this circular puts the
rates far below the profit point. If any
further reduction is made by the lines
which desire to be aggressive and to
carry the matter still further it will, of
course, be a dead loss to them, and would
probably be net by the others
There is no doubt that local rates will
also be largely affected by this reduction,
as they will have to be brought into line
with the new basis of rates formed. The
rates, too, from all the South Atlantic
ports--Savannah, Brunswick, Charleston
and Port Royal-to points in the interior
will be reduced at the same time by 90
per cent, or about the same amount as
the reduction from eastern points to this
section.
PROTECTION FOR THE PORTS.
1.-THE commissioner was induced TO issue
this order at the earnest solicitation of
the representatives of the Savannah
Florida and Western, and Central rail
roads. They insisted that that should be
done as a means Of protection to our home
people against outsiders. A series of so
heavily reduced rates to interior
points without a corresponding reduc-
ton of the rates from the ports would
have enabled the merchants of the in
terror TO have driven out almost entirely
the business of the Savannah merchants
for the time being. This reduction,
therefore, from the ports to the interior
points was found necessary as means of
protecting the merchants of the ports.
1T IS A LOSING GAME.
1.-THE association intends TO comply
fully with the interstate commerce law
in making these reductions" said Mr.
Conner, land to that end full notice has
been given Of the reduction contemplated.
A. he n
an end within day or two, as it requires
ten days notice before the former rates
can he put back into effect. There
fore if some of the lines which have
been foremost in urging the fight should
get tired and decide TO withdraw they
would have to keep it up at least for that
period, or lose their business. All of
them will probably realize very soon that
this Is losing game, and then there will
probably be meeting of the representa-
tiveS of the different linesin the associa-
ton, which will come to some agreement
that will end the matter. None of the
railroads were making any money as it
is, and to have INDUCED in practices
which if persisted in, could have but one
end, rate war is worse than sense
less
The meeting held in Atlanta last
Thursday was one composed of represent
atives of western lines, whose rates were
affected in many ways by the reductions
from the eastern points. They wanted
permission from the commissioner to make
certain reductions in their territory so as
10 equalize matters. They did not know
then just exactly what they wanted, how
ever, and it was decided to adjourn and
meet IN Nashville to-day, when they will
make up statement of what they desire
and present II to the commissioner.
rDTrEuz