The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-07-27
THE IMPENDING RATE WAR.
WILL REDUCE RATES SAVANNAH
TO COMPETITIVE POINTS.

IL VIII Not however AMetl hAtE-
10 This City-PresIdent u. VI. Conner
of the Central Gives a Statement
OF the Facts and Causes " Which
Led IN TO the Rate Cutting, and
It, Present status-The seabOard's
Attitude as Expressed in Vice
President 81. Johns Letter-Ihe
Rate war Likely 20 Get Into the
Courts-No BIum on the Part OF the
AssociatIon-Many Complications
Looked For.
The rate war that has been inauEuratea
py the seaboard Air Line railroad against
the lines OF the Southern States Freight
Association promises to be the most ex-
tensive and perhaps the most disastrous
sn its consequences the south has ever
known.
The entire south is interested in gen
eral. and each community desires to kno"
IL particular just how ana where 1t may
or may rot be affected. OF course. these
are questions that cannot be foretold WEB
any certainty az the present stage. bur
the attitude Of the seaboard Air Line
means war. and there is no telling yea
where 81 viii end.
So far as Savannah and this section IS
concerned Il may be said that the rate war
VIII not AFFECT rates 10 Savannah from
the east or anywhere else. Savannah =
not a point to which the seaboard Air
Line can alone make cut rate. and, there
fore. 50 far as can be seen. there Will be
no change Ia the rates TO Savannah.
But there Will be reductions in the rates
from Savannah to the competitive and
other points TO which reductions have been
made BY the association effective Aug. !.
This IS necessary from the fact that ga
vannah Is a distributing point. and many
classes OF merchandise sent from here
compete with the same classes sent from
points which are reached by the sea0oard
Air Line. So far as Savannah is con-
cerned. however, President II. II. Conner
OF the Central railroad states that every
thing possible will be done to protect Il,
and the interests OF its merchants, as Will
be done in the case Of all the communities
which the Central serves which will un-
doubtedly be true as to the other lines Of
railroad and steamships Of the associa-
ton.
President Conner has just returned to
Savannah after attending the meeting OF
the executive board OF the Southern states
Freight Association at which 10 was deCiu-
ed to make the cut Of eighty per cent on
all classes Of freight from eastern points
TO such compe uuve points as are reached
by the Seaboard Air Line, such as Atlanta,
Athens, ElbertOn and points similar sit
uated. From him a statement Of the
causes of the rate war was obtained, the
account and history OF what has been done
so far being substantially as follows.
The Seaboard Air Line, as has already
demand
Southern railroad take of its line of
steamers from Baltimore 10 Norfolk and
patronize the Bay line which Is owned
and operated by the SeabOard II also
demanded that the Pennsylvania railroad
its connection on one end, and the Atlanta
and West Point and Western Railway OF
Alabama connections on the other at At
lanta give Il through car from New
York to New Orleans.
These demands not being acecded 10 the
SeabOard, without notice, cut the rates
from all eastern points to competitive
points In the south, such as II could reach
al Atlanta, Athens Elbefton and others
about thirty per cent. All Of its connec-
tons refused TO cooperate with II in these
cuts, but 1t had a line OF its own from Bal
1iHore 10 Norfolk. and as It could reach
Atlanta. Athens and other competitive
points IN the south, its action had a ten
dency TO demoralize rates all around
The commissioner or the Southern
States Freight Association then called a
meeting Of the executive board OF the as
ISOLATION to be held in Atlanta July q 10
determine what should be done. 1t was
ascertained that Mr.. st. John, the vice
president and general manager OF the Sea
board would be in Atlanta that night or
the next morning, and it was determined
by the associated roads 70 make an effort
70 have the matter adjusted and stop in
its 3ncipieucy what promised to be a rate
war. With this end in view a committee
was appointed composed of Col j. w.
Thomas, president OF the Nashville, Chat
tanooga and St. Louis, and lessee OF the
Western and Atlantic railroad president
of the Southern States Freight -Associa-
ton and whose line is a connection OF the
Seaboard Air Line at Atlanta. Mr. Guila-
oeau, representing the Old Dominica line
OF steamers. which is the Seaboard' 8 con-
nection from New York and In which the
SeabOard is a large stOckholder and its
president, Mr.. Hoffman, a director. Traffic
Manager Whitney of the Merchants and
Miners transportation Company, the di-
rect connection Of the Seaboard Air Line
from Boston; Mr.. George c.. Smith. presi-
dent Of the Atlanta and West Point and
Nhe western Railway OF Alabama, con-
mectlon Of the SeabOard Air Line at At
lanta. and Mr.. Thomas X. Scott general
manager Of the Georgia railroad
RMS committee was appointed to wait
on Mr.. 81. John and ascertain whether a
settlement OF the matters OF difference
could not be arrived at and the rate war
anaugurated by the Sea aboard Air Line
averted. The committee waited on NJ
81 soilis Whus aIAer nearing what its
members had TO say, declined to discuss
the matter with them, but told the COM
mittee he would reply in writing
The reason for the appointment of the
committee was that the members Of the
association, or many OF them did not be-
heve. or were lGath to believe that the
reasons for the action Of the Sea aboard
Were no more than what had been stated
in the newspaper interviews with Mr. St
John, namely his failure 20 secure for his
road a through car from New York to New
Orleans, and the refusal of the Southern
10 take of its hne OF steamers from Bal
timore to Norfolk. II was hard to believe
that for these reasons alone Nj St John
would desire to demoralize rates all over
me south, and cause the loss as he states.
OF millions of dollars TO the properties i'm
terested. His letter, which was sent 10
the committee in reply. however, practi-
cally reiterates the statements IN his pub
lished interviews 1t IS as follows:
Atlanta. Ga, July %, Isg6.-Gentlemen: ]
neg to say TO the committee that the con-
ditons surrounding freight and passenger
rates as they at present exist in the south
however undesirable the situation may be
TO those whom we would desire to be on
most friendly terms With. are conditions
Tor which the Seaboard Air Line is in no
way responsible.
The Southern m flv,ax- v,-f+1 -.--... j..