The Birmingham age-herald., 1915-06-11
SEVER SPEAKS ID
 REAL ESTATE MEN Denies Discrimination By Railroads Against B'ham CITES CHATTANOOGA Shows How Tennessee City Obtains Benefits By Co-operation-Tou of Relations of Rail and Water
 Transportation
CITES CHATTANOOGA

Transportation
 L. Sevier. general agent for the Southern Railway company. yesterday addressed the Birmingham Real Estate exchange at it's weekly luncheon meeting on Birmingham's transporta- tion facilities as regards small indus tries.
 MT. Sevier reviewed interestingly some of the relations of water and rail transportation and other matters affecting transportation rates under different circumstances, a subject in which there is great interest in Bir- mingham at present.
 Speech By Sevier
 MT Sevier spoke in part as follows:
 Seriously speaking. railroads are producers and sellers of transportation and. to an extent. are in competition with the so-called water transporta- tion, therefore. existing transportation may be classified under two heads: by land and by sea, the former dating back to the Garden of Eden when Eve transported the apple that tempted Adam and for which he paid the pr ice, since which time we have had the mule pack, the stage coach later steam transportation. which resulted in the building of steam highways and the improvements which we have all no tioeG, and bringing the standard of efficiency that We have today.
 "Water transportation dates back to Noans ark. since which time we have had the sailing vessel which to a large extent. has been supp1anted by steam vessels which reach all parts of the globe
 "Thc competition existing between the two. generally speaking. Is where points in the same country are reached by both. the railroads meeting this competition Just so far as the revenue from the rates charged will permit oi their handling. that is to say, account of the cheaper cost of transportatior ti of the steamship lines will permit ot the railroads meeting the rates of Wa ter lines.
 "The conditions governing the ratas to and from commercial centers arc many. some of which I might name First, tie geographical location. or the influence winch the water rates have with respect to such locations, and when considered it must be realized that such condition is difficult one fer the rail lines to overcome; there fore. they can only participate in such rates as will bring to the rail carriers a redscpa ble return for the service per formed
 Second. commodities produced al l certain commercial centers with com | petition existing as to cost of manu- | fracture and distribution at points of | consumption. As an example, Birming- ham produces pig iron; so does Chat tanooga. the cost of production at Bir- .S | Chattanooga enables the Birmingham m producers to dispose of fair share of
 their product in the Chattanooga mar | ket on the prevailing rate, which is l influenced by the fact of Chattanooga
 bsing a producing point, but which 1 does not permit of Chattanooga melt
 CT of pig iron to manufacture at q | lower cost as a similar melter of pig iron at Birmingham would.
 Sympathetic Adjustments "In rate construction we have what
 might be termed sympathetic adjust ments. influenced in many cases where
 manufacturers of a commodity have en- l loved certain markets for the sale of | their product. other manufacturers 'f | similar commodities spring up with | locations nearer to such point of con sumption, necessarily having a less | rate. those heretofore enjoying the i privilege of selling their goods in suct markets asking for reductions in rates | in order to meet the nearby conipe- | tition. Ii would be to the interest ol l the railroads to maintain the standard 1 of rates in effect prior to the estab- | lishment of the new competition. but | recognition Is generally given to the | request or demand of shippers here
 tofore enjoying such markets. This. a' l you appreciate. does not increase ths i tonnage or revenue Of the lines pu
 brings down low level of rates moi | only to one particular point but, gen 1 erally speaking. to intermedite points | "I merely mention this in leading ul | to the question of the railroads s rela | ton to the real estate interests. and tn l influences it has with respect to the loca l tion of industries which we are all in terested in
 Under the present adjustment of rates considering the producing point, Birming ham is not at a disadvantage with he | sister cities. such as Chattanooga, At
 lenta and other cities similarly situated | If js true there is a difference in rate | favoring Chattanooga and Atlanta iron the east. and to Chattanooga from tn | middle west but it is slight by com | parison haul considered. The rates out | bound in many cases favor Birmingham | and in many other cases the same a Chattanooga Chattanooga, and usin l this point as an illustration, as I ar more familiar with 1t than possibly othe centers in competition with Birmingham | has an advantage which might be over come should Birmingham citizenship shov the same cooperative spirit as does Chat tanooga. We operate in Chattanooga belt railroad that has trackage of
 miles on which there are located bs
 tween 15O and 200 industries. The owner
 of the property along this line are yer ! aggressive with respect to bringing int
 that city diversified interest in the man ufa curing line The property values O average would be about one-tenth ( property values of Birmingham similarl ! situated with respect to transportatio , facilities; free sites are in many 1T 1 stances offered.
 { Inducements Hard to Overcome 'F'urther the manufacturers associs ton of the city of Chattanooga is most cooperative organization, and
 is known that it has happened that stoct
 holders in industries located in Cha