The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-07-16
RATES CUT THIRTY PER CENT.
BEGINNING OF THE SEABOARD'S
FIGHT ON THE SOUTHERN.

Railroad Men say There Is Danger
of the Biggest Rate War That Has
been seen for Yenrs-OriEinated
Indirectly on Account OF a Steam
boat Line Between Norfolk and
BaItimOre-WiI Not Affect Savan-
nah or Coast cities, But There Is
Likely to De stiH Greater Reduc-
lions TO Interior POInts-The Lines
which Belong TO the Association
VIII Protect Themselves.
From all appearances the southern
transportation lines are on the verge of
what promises 10 be one of the most ex-
tenslve rate wars that has been inaugu-
rated in years.
It is all brought about primarily by the
fact that the Seaboard Air Line or the
Georgia, Carolina and Northern, the ter
mini Of whose main line are Atlanta and
Norfolk. has announced a cut OF thirty
per cent. in the rates on all classes Of
freight from northern and eastern points
to the interior points of.the territory OF
the Southern States Freight Association
to take effect July II. which is to-mor-
row.
seem to be considerably agitated about
the matter, but all lines IN the associa-
ton will no doubt take steps TO protect
themselves from interference by outside
lines as they have the right to do under
their agreement.
The fight IS directly between the South
ern railway and the Seaboard Air Line,
between which differences have existed for
sometime. The Southern railway former
~ operated with Newport News as a ter
Inn 81 aaga 4
boat line. Afterward however. it changed
its terminus to Norfolk Va, which is also
the terminus of the Seaboard. There the
SeabOard Air Line controls or has the
management Of the Bay line of steamers
between Norfolk and Baltimore. OF course
that gave the Seaboard Air Line with the
Bay line an advantage over all rail lines
leading out of Norfolk.
President Samuel Spencer, il is stated
proposed that each line from Norfolk
namely the Southern and the Seaboard
should take an equal interest in the Bay
line which should be placed under a sep
arate and Independent management so
that its influence would not be directed to-
ward either, but all would be given a fair
ana equal showing. That proposition was
rejected by the president of the Seaboard,
who IS also president of the Bay line.
The rejection of this proposition led to
the southern railway building a separate
and independent line of steamers between
Baltimore and Norfolk. This new steamer
Southern, and the SeabOard is now going
TO Tight that system, to all appearances
because this step was taken.
There is considerable apprehension on
the part of railroad men on account of
the anticipated generalization of rates
as result Of this reduction. So far as
the other lines in this territory are con-
cerned, 1t Is stated, they will take such
action which will prevent If possible, any
such Generalization. 1t is stated that
none OF the lines north of Portsmouth
will be parties to the cut. 1t is not known
yet what action the Clyde line will take,
and upon that action may depend what
will be done by the Ocean Steamship Com
pany.
The reduction will not affect the rates
to Savannah and other coast points, as
the Seaboard's reduction is only effective
to interior points in the territory Of the
Southern States Freight Association. But
interior competitive points will get the
benefit of the rate war, II indeed II can
/ be called benefit. Such lines as can ig-
more IT will of course do so. but wherever
! the lower rates come into competition
with them they are allowed by the as
ISOLATION to meet the reduction, and to
| take such steps as will protect them. The
| Seaboard Air Line Is not a member of
| this association, consequently the rules
| and regulations promulgated by 1t cut no
| figure with that system, except perhaps
| where It is necessary, by reason of its
connection with lines which are members
| of the association.
Railroad men say, If carried out to its
| logical conclusion, this will necessarily
| be one of the most disastrous rate wars
/ that has been seen in years. 1t will affect
| almost the whole southern territory ex-
! cept the coast, and the prospect is by no
| means a bright one for those lines which
| are averse TO rate cutting, and have for
| so long a time been taking every possible
| step to prevent II.