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

Judge Clements of the interstate COM
the taking Of testimony at Atlanta, Ca,
in the matter Of three alleged violations of
the interstate commerce act which have
been reported to the commission
The complanants In two of the cases are
Brewer & Hamilton, a firm doing business
in Griffin, Ga, who charge that the Cincin-
nat New Orleans and Texas Pacific Rail-
road Company has been discriminating
against them in the TRANSPORTATION CT
freight between Cincinnati and Louisville
and Griffin, and the other has been filed
by Fuller f. Galloway of La Grange, Ga,
against the Louisville and Nashville COM
pany because Of sirnilar conduct relative to
freight out of New Orleans aid intended
for the plaintiff at La Grange.
Judge Clements will be acco npanied by
one of the official stenographers of the
commission, and the result Of his examin-
alton will be reported to .he full COM
mission for action by that body
1t is understood that as a result of the
complaints the following corporations will
be brought into one or the other of the
cases as Interested parties: Clyde Steamship
Company, the South Carolina Railroad
Company, the Georgia Railroad and Bank
Ing Company. the Louisville and Nashville
Railroad Company, the Nashville and Chat
tanooga and st. Louis. the Western and
Atlantic and many other railway COM
panies.
Alleged Cutting of Interior Rates.
1t is also stated. though official informa-
tion relative thereto has not yet reached
the commission, that Captain d. G. Purse,
chairman of the 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 to prove that 1t is because Of
the cutting Of rates from interior points to
Charleston and Portsmouth. Va. 1t is
said to be the intention Of Captain Purse
to bring to the attention of Judge Clements
evidence to show that the traffic depart
ments OF some southern railways are cut
tlns rates secretly. but that the shrinkage
appears to come off the ocean lines, though
there are also cases. 1t Is alleged, in which
1t can be demonstrated that the railroads
are involved.
The Southern. the Seaboard Air Line and
the Georgia are said to be giving rate of
81 cents a hundred from Athens to Liver
pool when the standard rate ought to be
about 96 cents. The Seaboard is charged
with favoring at Athens Charles E. John
son Il Co. of Raleigh n. c.; the Southern
William Watson & Co. of Augusta O. p
Hearst Co. and Sanders. Orr 4 Co of
Charlotte. while the Georgia road Is said
TO concede the cut to the Augusta Cotton
ana 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
Norlolk ard Charleston to Liverpool at
81 cents per 100 pounds: II cents per 100
pounds. or $l.O5 per bale, less than the es-
tablished rates via Norfolk. and 10 cents
Eer 100 pounds. or % cents per bale. less
than established rates Via Charleston
III these cuts ia rates fall upon the rail-
roads the cut to Norfolk is "A per cent and
to Charleston AZ per cent of the establish
ed all-rail rates. But If these losses are
participated in by the ship owners in the
present scarcity of tonnage it is hardly
to be copjectured that the participa ton
is on an equal basis, though If it were
the railroads would still be obliged to con-
tribute ~ and - per cent, respectively. of
the rail rate, which contributions them
violation of the Interstate commerce act -"
secret rate cutting has become so de-
moralizing in the district of Macon re-
Gently diverting cotton from it's natural
channels to Charleston and Norfolk, that
the Southern States Freight Association
was forced to authorize a reduction in the
rate from Macon to Savannah and Bruins
wick of cents per 100 pounds, or ~ ceEts
bale, to offset it's effects"