Daily press. [volume] (Newport News, Va.) 1896-current, 1899-07-13
Mr. Newbury Testifies in the
Eight Rate Case.
MUST SHOW TARIFF LISTS
President John A. Smith, of the Charles
ton Bureau OF Rates and Transportu-
tiop, Gives Evidence Against
the Railways.
(By telegraph

Dominion Steamship Company, was the
first witness before the Interstate Com
merce Commission today in the hear
ing of the Charleston freight rate case.
He was questioned at length as to the
rates charged by his line on freight bus
mess through Norfolk. where the steam
ship line connected With the railroads.
1t developed that the steamship line had
two rates for various classes of freight,
insured and uninsured, to- cover the ma
rine risk afloat.
Mr.. Bryan tried to find out what the
freight was minus the insurance and
why it was that some interior points in
the South were subject to the insured
rate only While others were known us
uninsured points. Mr. Newbury was
very undetermined on this point and
Commissioner Prouty finally broke in
with the inquiry rs it not a fact, sir,
that YOU have insured rates to non-com-
petitive points in order to add the in
eurance charges to the shipper and
make the rate higher than ITO competi-
tive points without its appearing so?'
MIR. tNEWBURYfS DENIAL.
Witness protested that this was not
the case and it was finally agreed to
have either the steamship company or
its railroad connections furnish the
commission copies OF their freight
schedules from which the real ight
rates to competitive and non-conlpe;-
tive points could be figured out
Mr.. Newhury said in conclusion that
his line carried freight, not only fror,
the south and north Atlantic points. but
had a considerable amount Of business,
principally packing house products,
from west of the Mississippi through
Norfolk to the main coast. This route
was 500 miles longer than the direct raj
routes, but the rail and water route was
able to compete for the business at a
profit. M
The last witness of the case was Joiln
A. Smith, president Of the Bureau OF
Freight and Transportation. OF Charles
ton. MIR. Smith explained that from
1877 to 1895, prior to taking his present
Office he had been connected with rail
road and steamship traffic in VARIOUS
capacities.
THE 'CHlARIlE1STON BUREAU.
The Charleston bureau. he said, was
municipal creation of Charleston,
brought about by the inability of the
merchants and shippers of the conl1..u-
nifty to get what they considered fair
treatment from the railroads, especially
in connection With freight rates to and
from Inc west. Witness 1llcd with the
commission copy Of (, memorial from
his bureau to the Southern Freight AS
sociation in Which the discrimination
against Charleston was pointed out and
redress asked Mr.. Smith said the rail
ways mad never taken the trouble even
to deny the truth Of Charles tons allie
cations
MIR. Smith gave a numberrof instances
IN which the through rates on freight
from Chicago to Charleston were from
to q cents higher than the rates from
Chicago to Norfolk with. the local rate
from Norfolk to Charleston added Wit
ness said further that the Charleston
merchants We're not even allowed to
take advantage of this combination
rate. the railroads either forbidling
through shipments to Charleston at the
combination rate. or eating up all the
Profit by vexatjous delays and rebi;ling
charges at Norfolk and the Virginia
cities The result was, he said, that the
Norfolk merchants had not only absorb
ed all the distributive trade in certain
western commodities around Charles
ton, but could undersell the local mer-
chants in Charleston itself
NO FIXED RATES.
AS to the compilation of rates, Mr..
Smith said there was no system or
metnOd IN determining them as far as
he could discover. Rates on some arti-
cles to Wilmington We're higher than
to Charleston; in other cases Charleston
had the advantage In fifteen impor-
tant commodities, rates to Charleston
were higher than to Wilmington on
less than railroad lots but the carload
rates to Charleston were lower than
to Wilmington.
When Mr. Smith urged the injustice
that the rates for towns in the inlrne-
date vicinity of Charleston should be
based on the rates to the Virginia cit
les, Commissioner Prouty asked if the
interior towns in question would not
feel it an equal injustice to have the
western corn they were to consume
hauled at a low through rate to
Charleston and then back to be fed to
the people at the interior town. Mr..
Smith replied that he did not wish to
!. place the commission in an equivocal
position in the eyes of the interior Car
DINA towns. He did hold however,
that the water competition at Norfolk,
which had annulled the long and short
haul section there could apply equally
we'll to Charleston which had the same
natural advantages
MR.. PROUTY's SUGGESTION.
Mr.. Prouty suggested that a good
scheme for Charleston would be to en-
courage water lines that would force the