The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1899-07-14
CHARLESTON RATES CASE
More Testimony Before
the Commission.
THB OCEAN FREIGHT RATES

Through Charleston Invesliga ed-Bx.
planation Of the Old Dominion's In.
sured and Uninsured Rates Desired.
Determination Again.t Charleston
Difference im Carload and Less Rates
to Charleston and Wilmington.
Washington, July 12.-G. T. New
bury, general freight agent Of the Old
Dominion Steamship Company, was the
first witness before the interstate
commerce commission today in the
hearing of the Charleston freight rate
case. He was questioned at length as
to the rates charged by his line on
freight business through Norfolk where
the steamship line connected with the
railroads. 1t developed that the steam
ship line had two rates for various
classes of freight, insured and unin-
sured, to cover the marine risk afioat.
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
uninsured points. Mr.. Newbury was
very undetermined on this point and
Commissioner Prouty finally broke in
with the inquiry: us it not a fact, sir,
that you have insured rates to nom
competitive points, in order to add the
insurance charges to the shipper and
make the rate higher than to cOmpet-
tive points without its appearing so?'
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 COM
mission copies of their freight sche-
dulles from which the real freight rates
to competitive and nOn-competitive
points could be figured out.
The next witness was John A. Smith,
president of the bureau of freight and
transportation of Charleston.
Mr.. Smith explained that from 1877
to 1895, prior to taking his present Of
flee, he had been connected with rail-
road and steamship traffic in various
said, was a municipal creation of Char
lesion, brought about by the inability
of the merchants and shippers of the
community to get what they considered
fair treatment from the railroads. es-
pecially in connection with freight
rates to and from the west Witness
filed with the commission a copy of a
memorial from his bureau to the South
ern Freight Association, in which the
discrimination against Charleston was
pointed out and redress asked. Mr.
Smith said the railways had never ta-
ken the trouble even to 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
5 to 21 cents higher than the rates from
Chicago to Norfolk, with the local rate
Of Norfolk to Charleston added. Wit
ness said further that the Charleston
merchants were not even allowed to
take advantage of this combination rate,
the railroads either forbidding through
shipments to Charleston at the COM
bination rate, or eating up all the pro-
MT by vexatious 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
certain western commodities around
Charleston but could undersell mer-
chants in Charleston itself.
AS to the compilation Of rates, Mr..
Smith said there was no system or
method in determining them as far as
he could discover. Rates on some ar
ticles to Wilmington were higher than
to Charleston; in other cases, Charles
ton had the advantage. In fifteen i'm
portant commodities rates to Charles
ton were higher than to Wilmington
on less than car lots, but the carload
rates to Charleston were lower than TO
Wilmington.
Mr.. Prouty suggested that a good
scheme for Charleston would be to en-
courage water lines that would force
the railroads by competition to grant
a 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 showing the
various north Atlantic ports, includ-
ing Norfolk and above. The same con-
ddtions he said, held true in differentials
from Chicago to the Pacific coast, in
cluding the whole coast line from As
toria to San Diego.
Mr.. Bryan stated to the commission
that he had endeavored to subpoena r.
Al. Arnold, general freight agent of the
Monon route, but had not been able
to reach him. He asked. therefore, to
place in evidence a letter from Mr.. Ar
mold to the Charleston bureau, convey
ing the same assurances contained in
the letter presented Tuesday from Mr.
Campbell, of the Chicago and East Il
linois railway.
Mr.. Arnold, referring particularly TO
the rice trade, said that his road would
De very glad to pro-rate with the lines
south OF the Ohio, as they were doing