The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-10-25
WHY THE RATES ARE RAISED.
CAROLINAs HAVE BEEN GETTING
TOO MUCH GEORGIA COTTON.


The traffic officials OF the Central Rail-
road and The Georgia and Ala
bame recently discovered thai their
divisions Of revenues on c-tIon
shipped from Americas, Albany ana
Dawson TO North and South Carolipa
malls have been too small They also dis
covered that too much cotton was being
diverted FROM Savannah 10 The mills, and
for that reason it wos dec,jed 10 raise
the rates
Vice President John ". Egan and Traf-
hc Manager L. II. Hinton Of the Central
talked yesterday about the advance.
Mr.. Egan said it is the object
Of the railroad to do all ii can for Sa-
vannah. q fact that. combined with the
discovery that its revenues were being af-
fected by the cotton going to the North
and South Carolina mills induced the Of
ficials to advance the rate from the three
places named from 81 to "A cents hun
bred
Mr.. Hinton said It was matter Of reve-
nue. with the road. IL had ascertained that
there is too little for IL when the con-
nections at Macon, Atlanta or some other
PJliA hShuAt tiiNiA bA5 IL DAtA ca ~ ''' 49,
rate. The Central Is left but very little.
and il became a matter of policy for the
road to raise the rate so that, If the
staple is still shipped to the mills in North
and South Carolina, the Central will get
a proportion TO which it Is entitled or, II
to Savannah, IL viii get what is more
like an equitable rate than that which has
prevailed from the Georgia points named
TO those in the Carolinas.
The increased in the cotton rates mas
not yet gone into effect When shippers
were first notified that the increase was
% become effective it was the intention
TO advance the rates at once, but one or
the shippers protested, claiming Lhat ne
had just bought large quantity of cot
ton intending to ship TO the mills, and
that il would be unjust for me roads to
run up the rate just after he had made
the deal and before ne could ship at the
figure he had expected. His protest was
received favorably, and Mr.. Hinton agreed
TO make the rate effective Nov. 6, thereby
giving an who desired 10 ship to the mills
ample time 10 do so under the lower rate.
Mr. Hinton holds that the railroads have
done nothing that Will afford grounds for
a protest before any commission The
Georgia Railroad Commission, he holds,
cannot take up the case, as there has been
no violation OF Its provisions The situa-
ton, he says, was simply one of the road
suffering through the increasing demands
OF Georgia cotton by Carolina mills ana
its shipment by routes that cut into the
revenues of the two initial lines.
In the first instance, when il was made
years ago, Mr.. Hinton said the rate was
only of the character that railroad men
call a paper rate" that is being down
on the tariff sheet, but seldom, If ever,
made use of by shippers. During the past
few years, however there has been an in
creasng movement from Georgia towns
to North and South Carolina mills, until
che present season, when d great deal OF
cotton has gone that way. II Is to divert
this cotton to Savannah, its natural out
let for export, or 10 obtain what SHOULD
be their pro rata of rates, that the roads
have decided 10 advance the cost for its
transportation.
The business OF the Carolina mills has
been constantly increasing and there have
been a number established each year. The
result has been an increasing demand for
cotton, and the mills find they have TO
look elsewhere than to the Caroluas for
their supply. Georgia affords the best field
for experimenting The stap.e they buy in
the CarOlinas, and they accord ngly turn
TO this state for It's best grade of cotton.
Buyers for the mills are to be found
throughout Georgia, and they are Offer
ing prices for cotton in advance of that
at which the staple is quoted. Conse-
Quently farmers and merchants at Ameri-
Gus, Albany and Dawson would prefer 10
see the rate kept down. as the mills pay
ing the freight, the companies would be
able TO pay them more for their cotton
with the advantage of low cost of trans
portaton.
Mr. Egan met this objection of the farm
ers and merchants by saying that the car
DINA mills are making enough money 10
pay the increased rate aud yet make
handsome profit on their Manufactured
NHF ba bad
excellent authority that the mills are
making money, and gave as proof story
told him by a repres nta tive of one of the
railroads VINO had talked with the presl-
dent OF one Of them. The manufacturer
said he had booked many orders for goods,
all under the idea that his raw material
would cost nm cents pound. lie be-
gan buying and 6, paying more than
the market price and SAID he would con-
tnue to buy and hll every warehouse he
could find until the price went 10 cents
as, even at that figure, he would be able
20 realize handsomely on his manufaetur-
ed goods.
Rates from some of the Georgia towns
have been so palpably in favor of the
Carolina buyers that officials OF lines lead
ing to Savannah have long wanted TO cor
rect them, and thereby bring to this port
the cotton that it is due. Mr. Hinton and
Mr.. Egan recalled that it has been so that
cotton could be bought on Bay street in
Savannah, shipped to Griffin or Waynes-
boro and sold at a profit to Carolina mills,
this apparent absurdity being due to the
railroad rates from those points and the
higher prices paid by the Carolina mills.
All this, Mr.. Hinton admitted, makes a
splendid showing for the Southern mills.
He said he would like TO see them estap-
lished at every station along the line of
the Central, as the advantages to the
road would greatly exceed that which is
now derived from Savannah being one of
the principal cotton ports. Continuing, he
ventured to predict that II would be no
great number Of years before this city will
be exporting less than 100 600 bales a year,
the crop going TO home consumption.
Mr. Hinton Is a believer in the future
of the South and Of Georgia He is GER
tain that il Is but matter Of time be-
fore cotton mills are plentiful throughout
this section Railroads would be greatly
benefited by their establishment. as they
would have local rates applying from
points OF production to those OF consump-
i