The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-01-06

''A Eenr 3 Ma
The soss Company, the Tennessee Coal
| and Iron and other companies were pro-
ducing pig iron in large quantities. and
at low prices, but IN amounts far In ex-
cess of the demand from local markets.
/ The railroad companies, foreseeing the
great future of this coal and iron dis
trlct, in order to foster these infant IN
dustries. and to build up those cities. gave
them special rates, @hich enabled them
to sell their product In New England.
Pennsylvania, Ohio, Illinois and other
| States.
The consequence was that evedy pig Iron
| furnace in New England was speedily
| closed. and most of those in New York
and New Jersey shut down.
| So II was with other infant industries:
for example, the marble quarres of Geor-
| gia. They could not possibly have reached
| the competitive markets without special
| rates. The South Is, rich In minerals,
| which have remained undeveloped for
ages. and could not be developed. In COM
petition with the older industries of the
! North, without special. favorable arrange
/ ments with the railroads. When capital
\ Is procured for the development of such
| industries, the owner goes to the rail-
| road company, and says, / can sell my
| product at such n price, deliveredAon the
| railroad. IL you can give me such a rate,
| i can sell in Cincinnati, New York, New
England and elsewhere, in competition
| with the products OF the North and West
The traffic men look into the matter
and If it Is an industry with n promising
future, which VIII employ labor, build
up settlement and make business. the
railroads will carry 1t at cost, rather than
turn it down. They do this because they
know II will, in the future. prove profit
able investment.
| Nv st,nh mems the South has randi
| ly developed into rival, and e. very for
midable rival, of the Northern and West
! ern manufacturers
We are not only taking away from the
North that immense market, AMONGST the
Southern people, to retain which they
fought great war. costing four thousand
millions of dollars and million men, but
we are pushing the competition beyond
| the Potomac, beyond the Mississippi, be-
You'd the ocean. to Europe and the Orient
The success of the South has greatly
excited the Jealousy of the Northern and
| Western manufacturers. They are smart
Ing under the loss OF trade, and the fact
I that the thousands of millions of dollars
| which they spent to keep us In the Union.
/ has resulted only in building up rival to
| themselves. whose success Is largely due
| to cheap labor. Hence the great efforts
| they have been putting forth to procure
| legislation against child labor and to un-
ionize and organize our employees.
Southern Ports As Rivals Of
Northern Ports.
| AS have before intimated, this question
| of rate regulation is one between ports
and cities, rather than between individ-
| uals. After many of the bitterest and
most destructive rate wars, between the
trunk line railroads, lasting about thir-
| ty years, they have established certain
| differentials in favor of Southern and
| Gulf ports. That is to say, the rate from
! Chicago and other Western points of dis
/ tribution are by agreement of the rail-
1 roads, less to Southern ports than they are
| for the same goods to Northern and
/ Eastern ports. Cfor particulars, see Mr..
| Henry Kinks book on Regulation of
| Railway Rates. p. 1857. They are from
| one to two cents less on the 100 pounds
| to Southern than to Northern ports.
! These differentials are vital to the
growth and prosperity of the Southern
| ports as we'll as to the railroads, by
| which they are fed Their abolition would
| mean the loss OF the export business to
these cities and to their tributary rail-
roads.
New York has always strenuously OBJ
jected and fought against these dideren-
tials. She has always contendeda and does
to-day contend, that they are arbitrary
and unjust determinations against herS
business.
ferred upon the Federal government, one
Of the first and most important questions
to be determined, will be, whether these
d ~ are unjust discrimination
against the Northern and Eastern ports,
| The Constitution of the United States PRO-
vides Cart, \ sec: y para hY pm Us, no
I ton of commerce or revenue, to the ports
OF one State over another,
AS the Federal Board or Commission
would be political In It's nature, ana sub
iect TO the pressure of public opinion, It
is almost certain, that the dlfferentials
would be held to he an unjust discrimina-
ton, or unreasonable rates. ana the COM
mission would make new rates, which
would turn our business 10 4Norehern ana
II vas Judge Taft's speech at Cincinnati
last November, which first directed my at
tention to the great danger .t "a iurke 60
Judge Taft has been recognized as the
Spokesman for the President on this ques-
ton. He said in his speecp at Cincinnati
Men have zen ,nsnsi; men havo Keen
stroyed: settlements have been enlarge1
to prosperous towns, through the unjust
aS Of the ef that
the most serious abuse OF the. last tWo
decades has been the unjust dlscrlmina-
ton between individual shippers and DIFF
tereh s true That DETERMINATIONS have
been nude by the trunk lines and BY
southern railroads, N favor OF southern
that such Discrimination are In force to-
day.
dustres cannot be started, butt and
restored in new manufacturing and
mining region, that has to compete with
old, established industries, It is there-
fore, true. that u very large proportion
of the growth and prosperity of our
ports and manufacturing and mining en-
terprises, is due to such NEUTRALITY-SUSPICIOUS.,
ii As n most ,portentuos truth, that whei,
lust" and are abolished by Federal au-
ihorlty our, ports and other cities, pltli
our railroads viii lose ve.'N lnrga pors
tion OF the through franc Waleh thessI
now enjoy.
The utmost phenomenal business, iHhiNh