Evening star., 1896-11-03
CUT RATES CHARGED
Serious Allegations Made Against
Several Southern Railroads.
INTERSTATE COMMISSION 10 INQUIRE
Discrimination Said to Visit Injury
on Many Cotton Factors.
A REVIEW OF THE CASE

Judge Clements OF the interstate COM
nerce commission will begin next Monday
the taking Of testimony at Atlanta Ca
IN the matter of three alleged relations of
the interstate commerce act which have
been reported TO the commission.
Inc complalnants in two of The cases are
brewer 4 Hamilton. firm doing business
In Griffin. Ga, who charge shat ;he Cincin-
natl, New Orleans and Texas Pacific Rail
road Company has beea discriminate
against them in the TRANSFORMATION cf
freight between Cincinnati and Louisville
and Griffin. and the other has been filed
by Fuller +. Galloway of La Grange Ga
against the Louisville and Nashville com
pany because OF sirailar conduct relative 10
freight out of New Orleans a I'd intended
for the plaintiff at La Grange.
Judge Clements will be acco npanied NV
one of the official stenographers of the
commission, and the result Of his exa niu-
alton Will be reported 10 he fun com
mission for action 10y that body.
1t Is understood that as result OF th-
complaints the following corp Drations viii
be brought into one or the other of the
cases as Interested parties: Hyde Steamsa p
Company, the South Carolina Railroad
Company, the Georgia Railroad and Bana-
ing Company. the Louisville md Nashville
Railroad Company the Nashville and chat
tanooga and -. Louis. the Western and
ana many railway cDtL-
panies.
Alleged Cutting of Interior Rates.
1t is also stated, though official infDrma-
ti"n relative thereto has not yet rea he'd
the commission. that Captain ID. q. Purse.
chairman of tn. Savannah freight bureau.
will ask Judge Clements TO hear testimony
as TO why Savannah and Atlanta are los
ing much Of their cotton trade. and efforts
VIII be made 10 prove tnat ii is because OF
the cutting OF rates from interior points 10
charleston and Portsmouth. Va. IL is
said TO be the intention of Captain Purs.
to bring to the attention of Judge Clements
evidence 20 show that the traffic depart
ments OF some southern railways are cut
ing rates secretly, but that the shrinkagr
appears to come off the ocean lines though
there are also cases. IL is alleged, i'm which
II can be demonstrated that the railroads
are involved.
The Southern. the Scaboard Air Line and
the Georgia are said TO be giving a rate of
~ cents hundred from Athens to LIVER
pool, when the standard rate ought to be
about !G cents. The Seaboard is charged
with favoring at Athens Charles f. John
son 4 Co. of Raleigh. y. g.. the Southern
William Watson Il 60. OF Augusta o u
Hearst & co. and Sanders. Orr & 10. of
Charlotte. while the Georgia road is said
10 concede the cut to the Augusta Cotton
and Compress Company
Another serious Charge
The complaint of Capt Purse further
states that Savannah buyers have been
driven out Of the Athens market by rea-
son OF the fact that the houses mentioned
on account of the secret cut can bid more
Tor cotton than can the Savannah buyers"
We have" he says, information that
cotton Is being moved from Athens via
Norfolk ard Charleston to Liverpool al
~ cents per 100 pounds: II cents per lut
pounds. or Sloo per bale. less than the ..s-
tabliShed rates via Norfolk ana IL cents
Yer 100 pounds. o. - cents Der bale less
than established rates via Charleston.
IF these cuts in rates fall upon ;he rail-
roads the cut to Norfolk is ~ per cent and
to Charleston ~ per cent Of the establish
ed all-rail rates. But il .hese losses ar.
participated in by the ship owners IN the
present scarcity of tonnage il is hardly
to be cor jectured that the participation
is on an equal basis. though IN il wer.
the railroads would still be Obliged TO con-
trlbLte Il and ~ per cent. respectively of
the rail rate, which contributions them
selves represent heavy cuts and are IN
violation of the interstate commerce act"
The complaint in conclusion alleges that
secret rate cutting has become so de-
moralizing in the district of Macon re-
Gently diverting cotton from its natural
channels to Charleston ard Norfolk that
the Southern States Freight Association
rate from Macon to Savannah and Bruns-
wick of cents per l"n pounds, or ~ certs
a bale. to offset its effects.''