The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-07-13
FREIGHT RATES QUOTED
PRESIDENT SMITH TESTIFTES
TO A CONSPIRACY.
IT'S VICTIMS CHARLESTON MERCHANTS
Another Declaration that the Roads South Of
The Ohio are to Blame for the High
Rates 10 South Altar
tic Ports.

tic Ports.
Washington, July PC. r. Newbury,
General Freight Agent of the Old Do
minion Steamship Company, was the
first witness before the Interstate Com
merce Commission today in the hearing
of the Charleston Freight rate case.
He was questioned at length as to the
rates charged by his line OH freight
business through Norfolk where the
steamship line connected with the rail-
roads. 1t developed that the steamship
line had two rates for various classes
of freight, insured and uninsured to
cover the marine risk ahoat. 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 as I'M
insured points. Mr.. Newbury was very
undetermined on this point and Com
missioner Preuty finally broke in with
the enquiry. rs it not a fact, sir, that
you have insured rates to non-competi-
tive points in order to add the insur-
ance charges to the shipper and make
the rate higher than to competitive
points without its appearing SOP
Witness protested that this was not
the case. and it was finally agreed to
have either the steamship company or
it's rail connections furnish the commits
sion copies of their freight schedules
from Vs.. the real freight rates to
competitive and non-competiuve points
could be figured out.
Mr.. Newbury said in conclusion that
his line carried freight not only from
the South to North Atlantic points.
but had a considerable amount of bust
ness, principally packing house products.
from West of the Mississippi through
Norfolk to this Maine coast. This
route was 500 miles longer than the
direct rail route but the rail and water
route was able to compete for the busi-
ness at a profit.
The last witness Of the case was John
"A. Smith, President of the Bureau OF
Freight and Transportation of Charles
ton. Mr.. Smith explained that from
1877 to 1895, prior to taking his pres
ent Office, he had been connected with
railroads and steamship traffic in va
rious capacities. The Charleston Blu
reau, he said, was municipal creation
of Charleston brought about by the
inability of the merchants and shippers
of the community to get what they con-
sidered fair treatment from the rail-
roads especially in connections with
freight rates to and from the West.
Witness filed with the Commission a
copy of a memorial from his Bureau To
the Southerm Freight Associate, !, in
which the discrimination against Gar
leston was pointed out and redress
asked. Mr.. Smith said the railways
had never taken the trouble even to
deny the truth of Charles:on's allega-
tons.
Mr.. Smith gave number Of instances
in which the through rates on freight
from Chicago to Charleston were from
3 to p cents higher than the rates
from Chicago to Norfolk with The local
rate of the Norfolk to Charleston added.
Witness said further that the Charles
ton merchants We're not even allowed
to take advantage of this combination
rate, the railroads either forbid ling
through shipments to Charleston Mt the
combinations rate. or eating up all the
profit by yeXatious delays and rebilling
charges at Norfolk and the Virginia
cities. The result was, he said. that
the Norfolk merchants had not only
absorbed all the distributive trade In GER
tain Western commodities around Char
lesion, but could undersell the local
merchants in Charleston itself
As to the compilation of rates. Mr..
Smith said there was no system or meth
Cd III determining them as far as he
could discover. Rates on some articles
to Wilmington were higher than to
Charleston: in other cases Charleston
had the advantage. In fifteen important
commodities rates to Charleston. were
higher than to Wilmington on less than
carload lots but the carload rates 10
Charleston were lower than 10 Whining
ton.
When Mr.. Smith urged the injustice
that the rates for towns in the inn
mediate vicinity Of Charleston. should
be based on the rates to the Virginia
cities. Commissioner Prouty asked il
the interior towns in question would
not feel it an equal injustice to have the
Western corn they were to consume
hauled at low through rate to Char
lesion and then back to be fed to the
people at the interior towns MIR
Smith replied that he did not wish to
place the combination in an equivocal
position in the eyes of the interior Caro-
lima towns. He did hold, however, that
the water competition at Norfolk which
had annualed the long and short haul
section there could apply equally well to
Charleston which had the same natural
advantages.
Mr.. Pronty suggested that a good
scheme for Charleston would be to
encourage water lines that would force
the railroads by competition to grant
reasonable inland rate
Mr.. Smith placed in evidence before
the Commission number OF statements
covering the question of rail and water
lines in and out of Charleston. He
also produced statements shaving the