The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-08-02
NO DECISION is REACHED
But It's Likely That Branch Line
Rates Will be Abolished.
sEABOARD AND SOUTHERN OPPOSE THIS
The Coast Line Voluntarily Abolished Them
S,me Years Ago. A Uniform Rate Tor
Cotton Will Also be Established.
The Hearing Yesterday.

session yesterday considering the ques-
ton of a reduction of freight rates on
branch lines of the Seaboard and South
ern roads. so as to make them conform
to the standard tariff now in force on
their main lines; also the establishment
of a uniform cotton rate was discussed.
Each of these railway systems has been
consolidated, and all its lines are run as
one road but they have been charging one
rate (known as the standaM rate) on
the main line, and higher rate ITO to
% per cent above the standard) on branch
lines. The same system has been follow
ed as to the commodity rate on cotton.
1t is probable that uniform rate over
all roads in each of these systems will
be established. The Commission has the
matter under advisement and will an
nounce it's decision later.
Representatives of the two systems
were present at yesterdays session and
were heard as follows:
For the Southern
f. A. Neal, general freight agent.
For the Seaboard-
John d. Shaw, attorney.
w. H. Day, attorney
H. W. B. Glover, traffic manager.
The Atlantic Coast Line has long ago
put in force practically the same rates
for both main line and branch roads, and
so it had no representative present at
yesterdays session of the Commission.
Both Seaboard and the Southern OPP
posed the proposed change on the ground
that the branch lines are not, as a rule,
paying property, and reduction in their
freight rates would still further cut down
their revenues. Mr. Glover estimated
that it would mean decrease OF 20 per
cent in the gross revenues OF the Sea-
board. and Mr.. Neal thought it would
mean 10 per cent decrease on the South
ern that road not charging the maximum
rate allowed on some of it's branches.
Mr. Neal said that he would not OPP
pose the proposition if it contemplated
a uniform tariff rate for both main line
and branches; he thought such tariff
was desirable but he did not think 1T
ought to be compiled by reductions OF
rate entirely-thar there should be some
reductions on the branch lines and some
increase on the main line. He told OF
patriotic efforts now being put forth by
his road to build up and develop the
State. and declared that if the rates were
reduced on it's branch lines these efforts
would be seriously crippled, If not stop
ped altogether The increased efficiency
of service given by the Southern and the
work it is now doing to further improve
the road-such as Strengthening the line
and reducing curves-were also pointed
out and Mr. Neal said that reduction
meant the cessation of these efforts.
After painting this gloomy picture OF
the future, he declared that reduction
of freight rates would not benefit the
consumer anyhow, but only the merchant
the amount being so small that it could
make no difference in the price of the
goods.
AS to cotton rates, Mr.. Neal said the
proposed reduction would make very lit
tie difference. as his road does not run
through much of the cotton belt of the
State.
Mai Shaw, for the Seaboard, devoted
his attention to some inquiries He
wanted to know why other roads beside
the Seaboard and Southern hadn't been
summoned to appear, and when the chair
man told him the Coast Line had volun-
tarily put the standard tariff and the
commodity rate on cotton in effect on all
it's branch lines, he replied that in many
instances the Coast Lines rates were
higher than the standard, and that it was
operated in a section where the volume
of business enabled it to reduce its rates
and still make large profits. Then he
asked why the South Carolina and Georgia
Extension Railroad people were not pres
ent He said they competed with the
Carolina Central branch of the Seaboard
at Shelby and Rutherfordton-the only
section from which the Carolina Central
gets a paying business. He didn't favor
reduction in rates for either road they
couldn't stand it, but he thought both
ought to be fed out of the same spoon.
He wanted to impress upon the Com
mission, he said. that the advantages
in consolidation of roads were principally
financial, enabling them to borrow more
money. He didn't think it gave them one
pound more freight or an additional pas
senger. He was certain of the truth of
This so far as the branch lines were con-
cerned.
1.-The idea that the stroke of pen can
make the University road, for instance,
as profitable as the main line of the
--------------------- -
AyGyH NJ