The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-07-08
VIEWS OF THE MERCHANTS.
THEIR LETTER on THE WARE
HOUSE SYSTEM DISCUSSED.


Grocers VIII Find IL to Their Adj
vantage 10 Transfer Their BUSH
ness 10 the Railroad Warehouses.
Others say That the Disadvan-
| tages Complained of Are Slight
and Would Not BE Obviated by
such a MOve-The Improvement of
Facilities on River Street the
First step Necessary for business
Advancement-Mr. GuckenheimeF
Tells Why the Warehouse Plan
Would Not BE a Success.
! The publication in yesterdays Morning
/ News Of the letter Of the wholesale gro
/ Gerry merchants TO Capt. d. G.. Purse, COM
! missioner Of the bureau Of freight and
/ transportation, and the latter's letter 10
/ the city council on the subject Of the dis
advantages which the wholesale grocery
men consider they labor under, caused
| general comment IN business circles.
Some Of those who signed the letter found
that the impression created was some
what different from what they had ex-
pected.
There was no intention Of proclaiming
their inability to compete with neighbour
ing markets, which is by no means the
case or Of making an attack on the rail-
roads on account Of insufficient facilities.
As some of the signers understood the let
ter 1t was simply for the purpose Of lead
ing to a friendly conference with the rail-
roads with a view to ascertaining if GER
tain changes in the conduct Of the whole
sale grocery business, including the loca-
! ton of warehouses in immediate prox-
| unity 10 the railroads, could not be made
| 10 advantage with the cooperation Of
| the railroads Others looked upon it as
! an argument In favor OF the immediate
| opening up of River street and the in
crease of facilities for doing business on
| that street.
The disadvantages complained Of"
! said Mr. George W. Tiedeman, do not
| prevent US from competing with neighbor-
| ing cities and doing business at a profit
/ Inc situation is simply this, that with
these disadvantages removed and in
| creased facilities given us we could sell
| goods at a less cost and thereby increase
| our trade, or we could sell at present
| prices and make larger profits That is
our object IN raising this question. our
| own benefit"
I'VE have considered this question of
| removing to the vicinity of the railroads
| very seriously continued Mr.. Tiedeman.
! I'VE have discussed it during the last two
or three years and before making our
| recent change in location we took the mat
ter under advisement. In discussing the
subject with other wholesale grocers
/ offered to unite with any two others to
/ request the Central railroad TO eSect
| warehouses for us on its property. We
! could do just the same business from
tlHse warehouses as we do from our
stores on Bay street. Our local trade
| might be slightly affected, but / doubt
| 1t. The greater part of our trade is Sc
cured through travelling men and II makes
| no difference to our customers whether
| Oh Rax - y
street. 1t only remains for one of US
| to make the move and l think the others
would follow. A point to be considered
| is the bad effect that II would have on
strangers visiting our city to see the
business houses on Bay street deserted
and the injury that such an impression
might cause to the city. This is a philan-
thropic consideration, however and when
the matter of dollars and cents to the
merchants becomes sufficient to induce
them to move elsewhere they will not
allow this sentiment to prevent a change.
! Inc opening up OF River street will not
benefit the merchants on the south side
of Bay street The railroad cannot CON
vert River street into a depot throughout
It's whole length. The South Bound rail-
road was granted, by the city some years
ago, the right to run a track down Bav
street. If the South Bound has not slept
on its rights l think the solution of the
present situation would be for it to put
its track on Bay street and to secure the
permission of the city to erect receiving
and distributing depots on the open spaces
ON the north side of Bay street. west of
the city exchange. Instead of inturing the
property on the north side of Bav street
It's value would be increased, as the stores
there would be brought into demand
whereas now there is almost no demand
for them"
Mr.. I. B. Tiedeman. who took part in
the conversation, expressed practically
the same view as his brother did The
railroads, he said, would be glad to erect
a 10 Oh
which could be done for a few thousand
dollars each, and secure a net rental of
Z per cent on their investment The To-
cation of the warehouses on the limo Of
road would insure the greater part of the
business to the road on which the ner-
chant was located, but would also make
1t 10 the interest of other railroads to
make low transfer rates. in order to Sc
cure a portion of the business
Mr.. Aaron Ferst of NJ. Ferst's Sons g.
Co agree, to large extent with what
the Messrs. Tiedeman had said. The open
| ing up OF River street, he said, and the
amording by the railroads of the greatest
| facilities in the way of delivery and
shipment of goods of which the street
| is capable, would have the effect of
checking any tendency of the merchants
to desert Bay street for the railroad
yards
The railroad warehouse system has its
| attractive features said Mr.. Ferst I'VE
| have ourselves considered the matter dur-
| ing the last few years. With a location
| where cars can be run right into the
building and loaded and unioaded there
a great deal of trouble in the handling
| OF goods, as well as time and expense is
| saved Drayage is one of the principal
items of saving in this case I know Of
| wholesale grocerymen in neighboring
| cities who have their warehouses so ar
! ranged. Another thing to be considered
is that the buildings being located awav
| from the center Of the city there would
! be no occasion for expensive buildings.
| With big two-story building, 100 feet in
| width by 200 feet in depth, We could do
| just the same amount of business that
we do in our present fve-story building.
| Plenty of room for the handling of goods
| and conveniences in handling are the
chief considerations. do not EXPECT Ia
see any exodus from Bay street. but /
have no doubt that in time the wholesale
| grocery merchants, especially the hav
and grain dealers, viii begin TO locate in
! warehouses adjoining the railroads"
Mr. A Enrich also favored the ware
| house PLAN The merchants could combine
! together, he said and get the railroads
! either or both. to erect rows of warehouse
! es. which would be rented 10 the ner-
! chants at to per cent on the invest
| ment. The warehouses would be eouinned
/ = an lI hft afr,.,- "a g.