The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-07-28
A HEAVY CUT IN OCEAN RATES.
SIXTY PER CENT. OFF ALL CLASSES
OF FREIGHT FROM THE EAST.

OF FREIGHT FROM THE EAST.
The Charge Made That the Merchants
and Miners Line Was Giving Re
bates. aad the Ocean steamship
Line Let the Rates DroP-First-
Class Freight From New York Cut
From 90 TO - Cents. and Others in
Proportion-A Likelihood of still
Further Reductions Unless set
Element l. Reached.
There is a frst-class rate war on he
tween the ocean steamship Company
and the Merchants and Miners Transpor-
tation line. on business coming south from
New York. and from the situation as it
appears. IL is rather hard TO tell who has
taken the initiative.
4 number Of the wholesale dealers. mer-
chants and others doing business in the
east, have received circulars during the
last two or three days from the Office Of
the Ocean Steamship Company amour
cling heavy reductions on all classes Of
freight. They were puzzled as to what it
meant. The circular stated that the rates
would go into effect on July %. which is
tomorrow.
The queer part OF the matter was that
the reduction was such a heavy one, being
equivalent to about 60 per cent. on all
classes Of freight from the north and east
to Savannah.
The situation explained itself yesterday
morning. however, when circulars were
received from the Office of the Merchants
and Miners Transportation Company. in
this city. announcing a similar heavy re-
duction in rates on all classes OF freights,
and the reduced figures offered We're iden-
teal with those made by the Ocean Steam
ship Company.
The queer part Of this is the fact that
the rates of the Merchants and Miners
line were operative July %, whereas those
made by the Ocean Steamship Company
are not operative until tomorrow, not
withstanding the fact that Ocean Steam
ship circulars announcing the reduction
were out and in the hands of the mer-
chants before those of the other line
were received. From this It would seem
that the intention Of the Ocean Steamship
known to the other line. and it Immediate
IL set about to fix a similar schedule Of
rates. having it ready 10 put out just as
soon as the reductions We're announced by
the Ocean Steamship Company, and hav-
Ing 1t so arranged that the rate would be
operative on its line before that was the
case on the lines of the Ocean Steamship
Company.
The cuts in rates are larger than any
that have been made in years. About a
year and a half ago some pretty heavy
cuts were made on through business from
the east, but that was general over all the
lines, while to all appearances the pres
ent fight Is confined TO the two steamship
companies. The reductions made are as
follows: First class freight, from 50 TO p
cents per 100 pounds; second class, 45 TO is
cents; third class, 30 to IA cents; fourth
class 2S to y cents; fifth class, % to 10
cents, and sixth class, is to cents. As
will be seen, the reductions are sweeping,
and they are throughout about 60 per cent.
or more. The circulars state, however
that these rates are subject 70 change
without notice.
The officers of both lines were asked
about the matter yesterday, but they de-
clined to talk. They simply stated that
the reductions had been made, but for
what reasons they said they did not
know.
II is understood, however, that the
charge has been made in some quarters
that the Merchants and Miners line has
been giving rebates to certain shippers
for the last six months, and through this
means has been securing a large amount
of business from New y ork and the east
that would otherwise have been divided
between the two lines. In fact. it is stated
that the greater share of the business
sought by the Merchants and Miners line
for that reason.
The object of the Ocean Steamship Com
pany appears to be to break upithis method
Of getting business, If such method has
been used, as some claim. For. this reason
the reductions were made some time ago
by the Ocean Steamship Company, but
were made to go into effect July 20. These
cuts in the rates. while only made on
business from New York and eastern
points to Savannah, will necessarily af-
feet rates to interior points in the south
for the reason that the reduced rate added
TO the local rate to a point not at great
distance from the coast, Will cut the
through rate from the east to that point
Another report in connection with the
situation, was that the Ocean Steamship
Company was thinking of putting on a
line of steamers from Baltimore to Sa-
vannah, or having the Philadelphia steam
ers come by Baltimore to bring freight
south if this should prove necessary to
stop the alleged giving of rebates, No in
formation on this subject could be secured
from any of the officials, but the fact that
such step has been in contemplation is
said to have been known to several rail-
road men.
Just what the outcome of the situation
will be remains to be seen. 1t may be that
the two rival lines Will get together and
agree 10 go back TO the old basis, and
they can do this as the rates are subject
TO change without notice. If they do not,
the prospect is that there viii be a very
merry rate war INDUCED in, with several
other surprises before II is over.
The Merchants and Miners line is not
q member of the Southern Railway and
Steamship Association, and hence cannot
be reached through that institution in
case ii has been guilty Of the practices
charged.
TO LOOK AFTER IMMIGRANTS.