The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-07-11
HEARING OF THE CASE
c. A. FULTON CREATES SOME
THING OF A SENSATION.
DECLARES SOUTHERN LINES TO BLAME
lie Places Upon Them the Whole Responsible
ty for High Discriminating Rates
Against South Atlantic Ports.
His Statement.

Washington. July 10.-Thc Inter
State Commerce Commission today be-
Gam the hearing of the discriminating
freight rate case in which the Charles
ton, IS. c., Bureau of Freight and Trans
portation appears rs complainant against
the various railway lines connecting
Charleston. Norfolk and Wilmington.
with points west and south. There are
about forty individual roads named as
defendants, the Southern, the Atlantic
Coast Line association. the Seaboard Air
Line and the Baltimore and Ohio. The
charge is the lclag-standing complaint
of Charleston that discriminating rates
are made by the railways in favor Of
Norfolk and against Charleston botD on
products from the West and for foreign
and coastwise shipment and for railway
distr.uution from Norfolk to other
Southern points.
The hearing began today before Com
missioners Clements. Prouty and Cal
houn. There appeared for the complain
ants J. Z. Il. Bryan, counsel. and John
\. Smith. Manager of the Charleston
Freight Bureau. Counsel for the defen
tlant carriers was Edward Baxter.
Among those present at the hearing
Were William Campbell, General Freight
Agent of the Chicago and Eastern Hi,
nois Railway: j. NJ. Culn Traffic Nam
ager, of the Southern Railway and III.
w. Glover. Traffic Manager of the Sea-
board
The first witness was s. +. Parrott.
Chairman of the Southeastern Freight
Association. His examination developed
the fact that this Association was the
successor of the Southern States Freight
Association and this i'm turn Of the Old
Southern Railway and Steamship Asso-
ciatiOn. Mr.. Parrott said that IA good
many arrangements of the latter Asso-
citation were still in force as to the rates
from the West to Southeastern Seaboard
points. He was not fully conversant with
the way these rates had been made
Changes in rates We're usually discussed
at the meetings of the Association al
though it did mot undertake to make and
enforce them.
w. IT. Fitzgerald. Commissioner Of the
Virginia Railway Association was called
but he added very little to the knowl-
edge of how rates to the South Atlantic
ports were made His Association. he
said. consisted of the Atlantic Coast Line
and the Southern Railway. the Seaboarl
Air Line. having been a member till
about three years ago. His office. how
ever. had nothing to do with Western
through rates, merely publishing and
compiling the rates given it by the indi-
vidual roads. Counsel for the Charles
ton Freight Bureau endeavored to fnl
on what principle the rates into Charles
Ton were made. but Mr.. Fitzgerald after
IN hours questioning could only say
that they were compiled by John a.
Ryan. one Of the rate clerks i'm his of
ilce. Witness said he gave no instrnc-
lions as to how the compilation should
he made and did not review the work
after II was done. If the work was not
satisfactory to the individual roads. they
could call attention to it. Otherwise
the clerks compilations stood. Mr.. Fitz
gerald at first said that ii would he i'm
possible for the Southern Railways IA
reduce the Western through rates TO
South Atlantic ports without reducir..
the local rates to interior points as il
would interfere with the long and short
haul provision established by the Inter
State Commerce Commission. He after
ward admitted however that the fact OF
water competition by great lakes and
Atlantic Coast Steamship lines applied
to Charleston. Wilmington and Savan-
nah as much as it did to Norfolk.
Mr.. Ryan said he begged to call tho
attention of the commission to the fact
that meme of the railway peoDle would
~glve any explanation of the theory Inder
wiich rates were made to favor Norfolk
and discriminate against other Southern
ports. although the freight schedules
showed this state To exist.
Mr.. Fitzgerald said that while he did
not know just how the rates were ar
ranged. he felt sure they were arranged
on fair and equitable basis with no
view 10 injuring Charleston
The last witness Of the day was C. S.
Fulton, Secretary Of the Ohio Piyer
Central Traffic Association. He fur
nished the surprise Of the hearing by
sn:itin@ the whole responsibility for high
discriminating rates against the South
AtiantIc ports to the shoulders of the
southern railway lines. He said that
the roads North and West Of the Ohio
had Tor ten or twelve years maintained
standing offer to pro-rate the through
freight charges TO the South Atlantic
ports with the railways South of the
Ohio on strict mileage basis.
Mr.. Baxter. counsel for the defendant
carriers. asked if it were not a fact