The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-07-13
INSURANCE CUTS A FIGURE.
HOW 1T is APPLIED IN THE MAT
TER OF MAKING RATES.

ANA9hA
Surprise Caused by Pamphlet
Calling Charleston Growing Man
ufacturing City.
Washington, July 12.-G. T. Newbury,
general freight agent of the Old Dominion
Steamship Company was the first witness
before the Interstate Commerce Commits
sion to-day in the hearing of the Charles
ton freight rate case.
He was questioned at length as 10 the
rates charged by his line on freight busi-
ness 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, in
sured and uninsured, to cover the marine
risk afoat
Mr.. Bryan tried to find out what the
freight was minus the insurance, and why
it was some interior points in the South
were subject to the insured rate only,
while others were known as uninsured
points. Mr.. Newbury was very undeter-
mined on this point, and Commissioner
Prouty finally broke in with the inquiry
rs it not fact, sir, that you have
insured rates to non-competiuve points in
order to add the insurance charges to
the shipper and make the rate higher
than TO competitive points without its ap-
pearing SOP"
Witness protested that this was not the
case, and it was finally agreed to have
either the steamship company or its rail
connections furnish the commission copies
Of their freight schedules from which the
real freight raIes to competitive and non
competitive points cou.d be figured out
Mr. Newbury said in conclusion that his
line carried freight moi only from the South
TO North Atlantic points, but had a con-
siderable amount of business, principally
packing house products, from west of the
Mississippi through Norfolk to the Maine
coast This route is 800 miles longer than
the direct rail routes, but the rail and
waller route was able to compete for che
business at a profit.
CharIestOn's Complaint.
The last witness of the case was John
A. Smith, president of the bureau OF
freight and transport lion of Charleston
Mr. Smith explained that from 1877 to 1895
prior to taking his present office, he had
been connect ted with railroad and steam
ship traffic in various capacities
The Charleston bureau, he said, was
municipal creation of Charleston brought
about by the inability Of the merchants
ana ShlDDeTS OF IlG community 10 get Wllhl
they considered fair treatment from the
railroads, especially in connection with
freight rates to and from the West
The witness fled with the commission
COPY of memorial from his bureau to
the Southern Freight Association in
which the discrimination against Charles
ton was pointed out and redress asked.
Mr. Smith said the railways had never
taken the trouble even 10 deny the truth
Of CharleStOn'S allegations.
Mr.. Smith gave number of instances
in which the through rates on freight
from Chicago to Charleston were from
to p cents higher than the rates from Chi
cago to Norfolk with the local rate from
Norfolk to Charleston added. The wit
ness said further that the Charleston mer-
chants We're not even allowed TO take adj
vantage of this combination rate, the ral-
roads either forbidding through shipments
TO Charleston at the combination rate Or
eating up. all the profit by vexatious de
lays 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
certain Western commodities around
Charleston, but could undersell the Local
merchants in Charleston itself.
No System of Rates.
As to the compilation of rates, Mr.
Smith said there was no system or meth
Cd in determining them as far as he could
discover. Rates on some articles to Viii
mington were higher than to Charleston;
in other cases Charleston had The advan-
tage. In fifteen important commodities
rates to Charleston were higher than to
Wilmington on less than carload lots, but
the carload rates to Charleston were low
er than to Wilmington.
When Mr.. Smith urged the injustice
that the rates for towns in the immediate
vicinity Of Charleston S6OnlI no bHCa1
the rates to the Virginia cities, Comms-
soner Prouty asked if the interior towns
in question would not feel it an equal in
justice 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 po-
s.tion in the eyes of the interior Carolina
towns. He did ho.d, however, that the
water competition at Norfolk which had
annulled the long and short haul section
there, could apply equally well to Charles
ton, which had the same natural advan-
tages.
Encourage Water Lines.
Mr. Prouty suggested that a good
scheme for Charleston would be TO encour-
age water lines that would force the rail-
roads by competition TO grant a reasona-
bic inland rate.
Mr.. smith lidCcd IN eNlucnCe before the
commission a number Of statements cover
ing the question Of rail and water lines in
and out Of Charles on. He also produced
statements showing the small differentials
from Chicago to the various North At
lantic ports including Norfolk and above.
The same conditions, he said held true in
differenials from Chicago 10 the Pacific
coast including the whole coast liue from
Astoria to san Diego.
Mr.. Bryan stated 10 the commission that
he had endeavored 10 subpoenae r. NJ. Ar
nod, general freight agent of the Monon
Route but had not been able to reach
him. He asked therefore 20 place In evil
dence letter from Mr.. Armed to the
Charleston bureau conveying the same as
surances contained in the letter presented
Tuesday from MIR. Camphell, Of the Chi
cago and East Illinois Railway.
MIR. Arnold. referring particularly to the
rice trade. said that his road would he
very glad TO pro rate with the lines South
of the Ohio, as they were doing with the
lines to Mobile and New Orleans. BUT,
pfrfA