The age-herald., 1901-05-26
New Orleans, Mobile and PeR- sacOIa Are Points Effected
 By the New Rates
GREATEST CUT EVER MADE
$1.25 Ton Charged to New Orleans, While Only $1.1o Is Charged to the Other Two Cities-The
 Former Rate Was $1,75.

The cheapest coal rate in the history of mining in this district has just been announced for shipments to New Orleans, Mobile and Pensacola, a reduction of more than 25 per cent having been made.
 This new reduction, as announced on last Tuesday to the coal firms of the dis trict by the Louisville and Nashville, makes the rate to New Orleans only $1. .25 per ton; to Mobile $1.10 and to Pensacla s1.1O The rates heretofore have been $1.75 to each city. The new rates become effective on June 1.
 The reduction to Mobile has been met by the Southern Railway, District Freight Agent Browder of the road making the announcement yesterday. The road Is now comforting with it's connection with regard to meeting the reduction to New Orleans and will make an announcement within the next few days what 1t has suc- ceeded in accomplishing in the direction.
 It is believed by every one conversant with the facts of the reduction and the connections of the Southern Railway in hauling freight to New Orleans that the road will be able to meet the reduction to that point, and that the fight for traf- fic will in no wise be abated a whit be- low the present limit.
 Cause of Reduction.
 The admitted cause of the reduction of rates to New Orleans is the prospective in- vasion of oil from the Texas fields for purposes of fuel. Then, too, the reduc- titon is made for the purpose of meeting any prices the companies from Pittsburg might be able to make. The Pennsylvania district coal companies are in position to make exceedingly low prices at New Orleans on account of having the ad- vantage of shipping by water.
 With the new rates, however dealers from this district will be able to enter the field and make some sharp reductions dt that point. In fact, representatives of the larger companies have already made large contracts at prices much below open market quotations
 The question of the availability of oil for the purposes of fuel has never been absolutely settled to a large extent. and 1t is argued that where manufacturers are allowed to pay reduced freight rate on coal shipments they will hesitate much longer than otherwise before making an experiment with oil. They would even hesitate much longer, 1t believed, before adopting the oil even after it had passed the experiment stage.
 Effect on Local Companies.
 A number of the prominent local deal CTS and mining companies were seen yes- terday In reference to the question of the local effect of the reduction. All said the new rates would be extremely beneficial and would put them in a position to place coal from the Birmingham district in the fields at such prices as to almost com mand the entire market.
 If Pittsburg meets the prices made by the Birmingham companies, the advan- tage will still lie with the coal dealers of this district as they will be in a better position to place the commodity after manufacturers use at distances from the river wharfs by which the Pitts burg company ship their coal.
 Added to the effect the reduction will have in the competition with Pittsburg companies it will insure the local com panies that they will be able to fight for a long time the adoption of oil for fuel to any great extent by making close prices.
 At Mobile the effect will also be marked Many companies in that city, which have heretofore been using wood will now adopt coal for all purposes of fuel. In the application from Mobile to the Southern for the reduction special stress was laid upon this one factor. Numerous manufacturing concerns peti- tioned the road for the action on the ground of desire to substitute coal for all other commodities now used.
 Lowest Rate on Record.
 The reduction when It takes effect. will be the lowest rate per ton on record for coal shipments from this city. Only one time in the past has any rate been even so near the present low cut, and then the reduction was on account of keen compe- t,tion for business. At that, however, the low water mark was s1.4O per ton.
 so the new rate will be 15 cents lower than any ever effective from this district to New orleans in the history of the
 of the great commodity.