The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-08-24
EXPRESS COMPANY DENIED.
STATE RAILROAD COMMISSION RE
FUSES TO GRANT ITS PRAYER.

"A Big Slice From Small Profits.
Asked TO Be Permitted to Rinse Its
Rates to Cover the Amount of Tax,
INT Commission Refused to Grant
1t the PriviIeGe-DiNOn 4 Go. vs..
the Central Railroad Dismissed.
Otber Matters Before the Commits
sion.
Atlanta Ga. Aug. 2S-The State Rail
road Commission held a meeting to-day
At which eeveral important matters were
taken up.
The trouble about the transfer or switcn-
ing Of cars along the Savannah wharves
was called up again, but taken under ad-
visemenL
The most important matter was the ap-
plicaton of the Southern Express company
for a virtual revocal of the recent decis-
hon of the commission requiring the eX-
press company TO provide the revenue
stamps on receipts for shipments. The eN-
nress company has been acquiescing III
the ruling of the commission ABOUT '1e
revenue stamps but it is claimed tha'
this is an unreasonable burdenas AZ taxes
The profit out of large percentage OK the
business done by the company 1t Is also
claimed to be unjust because an almost
every other instance the stamp tax Is
paid by the consumer.
Hon. f. G. duBignon, general couhsel
for the Southern Express Company tP-
neared to urge the revocation OF the or-
der and in his argument threw some
interesting light upon the express COM
col -
oompanv has to make the best arrange
ments il can with the railroads Tor car
rving freight on passenger trains. Ihey
cannot be compelled to do this for the OK
press company, and there is no prescrlpeu
limit to their charges as there rs on the
charges which it can make to the pup
lie. The contract with the railroad Is
matter for negotiation and their charge
is no instance less than 50 per cent OF
the express company's receipts.
ut costs the express company" MI ou-
T7Lenon said. "43 per cent. of its receipts
To do business. and this, added to the %
per cent, which must be paid to the rali-
roads, makes the total cost to the express
company SO per cent. of its recelpts'
A considerable express business Is done
al a charge Of 10 cents a package, and
very large proportion of the intra-state
business is done at % cents package anu
take 90 per cent. from these charges ana
there is a margin of 7-l0 of cent on the
1O-cent packages and ia cents on the %
cent packages. If the company IS com
PEELED to pay 1 cent on receipts, II loses
3-1O of a cent on every 10-cent package
and makes only q of cent on the 20
cent packages. This wipes out most OF
the very moderate profit in the business
The express company completes with last
freight lines on large shipments ana on
small shipments the United States man
service is a fierce competitor. AS the gov
eminent, with all its facilities and its adj
fnirable system, makes no profit on ITS
business, that competition is hard TO meet
The revenue tax, Mr.. duBignon argued,
IS generally paid by the consumer. rms
is the case with the brewer, the tobaccon-
ist and the manufacturer. There is MOTH
ing 10 prevent them from raising the
prices of their goods 70 cover the tax, and
they do it, But the express company can
not raise its rates to cover the tax with
out the consent of the Railroad Commits
sion and Mr. duBignon asked that this
privilege be granted or that the former
ruling be reversed.
The commission, after fully weighing
and discussing the express company's pc
tition to be allowed to increase its rates
so as to make up for the revenue stamp
The commission heard the views of rep
resentatives of most of the railroads of
the state in regard to the amendment TO
Rule 2 of the commission relating to the
charging of demurrage on package freight
The application for the change was made
by ]. c. Haskell of the Car Service As
ISOLATION, backed up by all the lines. The
change asked for gives the railroads dis
erection to charge demurrage at any point
on its lines on package freight. AT present
if demurrage is charged at any point IL
must be charged at all points on a line
The roads think this is unjust both to
them and shippers, and they want to be
allowed discretion, promising to charge
only when it is necessary 10 compel con-
signees TO take their goods out of the de-
pot Car lot shipments are not to be at
fected.
No action was taken by the commission.
but the members expressed their willing
ness 10 grant the request.
Vice President Egan of the Central APP
peared and urged the change for that
road. Mr.. Egan was also present for the
purpose of representing his road in the
Forsyth and Americas depot cases. Upon
his request these were put off pending the
return of President Conner, who is now
absent from the state. The understanding
unofficially is that the new depots viii be
built at these places as asked without
further order by the commission, but Mr..
Egan said no definite move could be made
until after President Corners return.
In the case of Dixon & Co, against the
Central Railroad, which involved the
charges made by the Central for the deliv-
cry of coal from the Dixon wharf to the
water works, a decision was reached this
afternoon, the commission dismisslng the
complaint holding that the haul from the
wharf to the water works was not a
transfer within the meaning of the rule,
and, therefore, the Central was entitled
TO charge the regular local rate for this
service
Vice President Egan and General Coun-
sci Cunningham appeared for the Central
Railroad while Mr.. J. r. Saussy made
the argument for Dixon & Cos. side.
The action of the commission in refusing
the petition disposes of a controversy that
has been on between these parties over
the delivery of coal to the water works for
a long time. Dixon & Co. claimed that the
Central should make a concession i'm the
handling of this business because of privi-
,t.,A fr.a nv he oil