The Birmingham age-herald., 1908-10-20
HOW ALABAMA PAID FOR FRANCHISES GIVENTO7HE
 RAILROADS B1 ATLANTA
By w D. NEseIIT Associate Railroad Commissioner


 On January 1, 1905, the freight rates from New York Grail or wateD to Att lanta, Birmingham and Montgomery, were the same and had been identical for a great number of years previous to that date These hates in 1904 were as follows; | Classes 6 Rate per
 100 pounds .. IA .9S .s6 .7S so .49
 On February 1, 1905. these class rates were reduced to Atlanta and other Geor- gia towns (but not reduced to Birming- ham or Montgomery to the following l figures:
 Classes 2 6 Rate per
 100 pounds .. ;. 1.O5 .ss .Ss .eS .5s A Reduction below
 B'g'ham and
 R1ontg'y .. g 5 8 5 4 B
 From the year 1888 until February l, 1895 the rates on Classes B, c, D, F; flour in sacks and fresh meats from Cincin- natl to Birmingham had been cents per 100 pounds less than to Atlanta; and l from Memphis, Tenn, to Birmingham cents per 100 pounds less than to Att lanta Prior to 1888 the rates from Mem- phis and from Cincinnati to these cities had been practically the same, though some of the rates were slightly lower to Atlanta
 Just prior to 1888 there had been com- pleted to Birmingham the Kansas City, Memphis and Birmingham railroad, cross ing the Mississippi at Memphis and the Sheffield and Tennessee (now the North ern Alabama railroad) from Florence on the Tennessee river to Jasper, where it connected with the Kansas City railroad for Birmingham.
 The completion of these two roads brought Birmingham by independent lines of railroads within 251 miles of the Mis- sssippi river and 129 miles of the Ten nessee; and introduced into the freight rate situation of this district two new elements of competition for freight ton mage moving to and from the great grain and provision producing and iron consum- ing west
 The result was a readjustment of rate from the west, and Ohio and Mississippi crossings into Birmingham giving to this district rates of 4 cents per 100 pounds less from Memphis than to Atlanta, 16S miles further east.
 These reduced rates from the Missis- Slppi at Memphis compelled similar re- auctions from Ohio river crossings so that from 1888 until February 1. 1905, or for IT years, rates to this district were maintained on this parity l The numbered classes, l to 6, cover gen. l eral merchandise, boots, shoes, dry goods, clothing, and manufactured articles those articles that the south buys large i ly from the east.
 Classes B. c, D and cover grain 1 products, flour, hay, provisions, meats, etc., and are the articles the south buys largely from the west Under the sys- tenn of rate-making by the railroads, change of rates from basing points, such as New York on the east and Cincinnati and Memphis on the west, carries with it a proportional change from all other related points in a wide territory. change from New York makes similar changes from all eastern coast points and a change from Memphis and Cincin- natl carries similar changes from all Mississippi and Ohio river crossings.
 The figures 1 use showing the changes from Memphis, Cincinnati and New York are thus illustrative of the changes made | from all the manufacturing east and the food producing west and apply to practi- cally all the tonnage of these classes handled by the railroads into the south- east
 Ever since Birmingham had been dis