The Birmingham age-herald., 1913-05-24
TO ASK CONFERENCE
W|THRA|LROAD MEN
ON RATE QUESTION
Resolution Adopted at Meet
ing of Chamber of Com
merce Directors
DISCRIMIN ALTON is
SHOWN BY REPORT
Committee Reports That Rates to
Other Southern Cities Are 1871
Cents Per 100 Pounds Lower
Than to Birmingham


resentatives of the railroads of the
Birmingham district and the railroads
and transportation committee of the
Chamber of Commerce. at which an ef-
fort will be made to reach an agree
ment on the alleged discriminating
freight rate schedules in operation in
this city.
Such was the purport of a resolution
introduced by Sterling Wood and aopted
by the board of directors of the Cham
Der of Commerce yesterday afternoon
after report on rate determinations
had been made by Chairman NJ. p.
Northington of the railroad and trans
portation committee.
The report of the committee was made
after considerable work had been done
within the past few weeks gathering
data which, the members of the COM
mittee state, proves beyond doubt
that a discrimination does exist against
this city as compared with Nashville,
Chattanooga, Memphis, Atlanta Mont
gomery and similarly situated cities.
Data for the committees consideration
was compiled by J. T. Slater, manager
of the freight bureau of the Merchants
and Manufacturers bureau, and by Sec
retary W. c. Radcliffe of the Cham
Der of Commerce.
Immediately after the reading of the
report of the committee stating that
determinations existed, that freight
rates to other cities which should be
the same as Birmingham averaged 1871
cents per 100 pounds lower. that Atlanta
was given advantage of water rates to
Savannah, but Birmingham was not
given advantage of water rates to Mo-
bile, Mr.. Wood presented his resolution,
which was adopted
Committee Report
The report of the committee was as
follows:
"Birmin CHAM, Ala, May 20, 1913.
ITO the Board of Directors, Birming
ham Chamber of Commerce
"Gentlemen-So many complaints of
freight rate discrimination have came
to your railroad and transportation
committee from varied commercial in
terests in this district that an investi-
cation has been made with a view 20
merits of the matter.
"At a meeting of this committee it
was decided to assemble freight rate
data which would either prove or dis
prove the complaints, Those making
such complaints were invited to appear
before the committee and explain the
nature of their grievances. The general
secretary of the chamber and the man
ager of the freight bureau of the Mer~
chants and Manufacturers association
were also requested to gather the de-
tails of all available instances of dis
elimination and to prepare tables of
rates showing specific comparisons be-
tween Birmingham and other surround
ing commercial centers, with which in
dustries in this city do or should COM
pete.
"A second meeting was held Wednes-
day afternoon this week, for the con-
sideration of this data. At this meeting
the data was presented and duly con-
sidered.
Discrimination Shown
ut was shown that all rail rates from
eastern cities to Montgomery, Nashville,
Memphis, Mobile. New Orleans and Me-
ridian are on an average 157c per hun
dred pounds lower than to Birmingham;
that relatively lower rates via rail and
water exist to each of these places than
to Birmingham; that the water advantage
at Savannah is given to Atlanta in tine
construction of rates to that point, while
that offered at Mobile to Birmingham is
not used to Brmingham's advantage;
that coastwise vessels serving these ports
are allowed the same mileage proportion
of the through rate (250 miles) to Mobile
as to Savannah; that Atlanta is but II
miles nearer Savannah than Birmingham
is to Mobile.
h. ,,e,l, fl,o
and Mississippi river gateways we find
that on the lettered classes which EN-
brace food stuffs the average rate to
Montgomery, Atlanta, Nashville and Mo-
bile is q miles lower than to Birmingham;
that on manufactured articles and raw
material from st. Louis to Atlanta, Nash
Vile, Knoxville and Mobile the average
rate is 81 mills lower than to Birming
ham; from Memphis III lower than to
Birmingham. from New Orleans 79S
lower than to Birmingham.
Specific Instances
There are many specific instances
where commodity rates to the points men,
toned are much lower than to Birming-
ham, but such have not been placed in
this report, because to do so would rem
der it unnecessarily long without ma
terlally adding any new proof to that
which we already have.
J.
Fl. Dean, president OF the Birmingham
Metal Products company of the accuracy
OF printed reports that his company has
prepared to erect manufacturing plants
at Memphis and at Portsmouth, o., be-
cause of inability to profitaby continue
the main plant in Birmingham under ex-
listing freight rates. Mr. Dean appeared
before the committee and made a state
ment and has also written President
Harding. This company. under favorable
conditions, would employ upward of 100
men. Mr.. Dean declared that the rates
on his raw material coming into Birming-
ham are such that he cannot compete
with similar concerns In other southern
cities. He declared he has made every
effort with railroad traffic officials to
secure a readjustment of rates.
Figures have also been presented from
the Goodall-Brown Dry Goods company,
showing higher freight rates on goods
coming into the city than those of other
cities where competing firms are located.
"Other instances have been brought to
the attention of the committee, amon,
them a letter from a business man in
another Alabama city. This shows the
great interest in this matter in Industrial
and commercial circles
1T is the opinion of your committee,
after investigation. that the matter OF
freight rates in the Birmingham district
should be made subject of thorough
investigation by the Chamber of Com
meroe and the Merchants and Manufac-
turers association. This subject is one
of life or death to the small industry
which is the need of this district
LAS first step in this investigation
the committee suggests that confer
ence be requested with high tariff Oft
H.