The daily times. [volume] (Wilson, N.C.) 1902-1936, 1918-12-10
RALEIGH FIGHTING
INCREASED RATES
Mr.. Maxwell Explains Why
North Carolina is Again
Under Direction
OF THE VIRGINIA CITIES
News and Observer


Reference Of the proposed terri
torial freight rate system to the
traffic and transportation depart
ment Of the Reilgh Chamber of
Commerce, and giving to the head
Of that department the power to
appoint committee to handle the
matter and to take to the United
States Supreme Court if the system
is pressed, was the action taken at
the membership meeting Of the
chamber last night.
The meeting was open to discus
sion after the proposed system had
been explained by Mr.. A. J. Maxwell,
of the North Carolina Corporation
Commission. AT first "A separate
committee was proposed to draft
resolutions, but this was opposed on
the floor by G. C. Scarlet and others,
who said they had had enough of
committees and resolutions, and
wanted action. 1t was then that it
was proposed to give power to the
traffic department that ii might 60
ahead unhampered.
The proposed plan IS to divide the
country into territories and fix in
tra-territorial rates for each terri
tory. For the Pacific coast this is
standard, or 100. For the noun
tain or sage brush region il Is l2O.
1t Is 100 again in the central, and
rs in the heavy traffic section around
Minnesota.
The rate for the Northeast has not
yet been fixed, but Mr.. Maxwell said
that in his opinion it would be rs or
less. The rate for the Southeastern
territory is lis or more, according to
his figure. The line between the
two territories is in southern Vir-
ginia. south of the Virginia cities.
The new plan would not affect in
ter-territorial rates, but only intra-
territorial. Thut is, in some cases a
dealer in Richmond could ship to
Wilmington, N. c., under the inter
territorial rate for less than a Raj
eigh dealer could ship to the same
point under the intro-territorial rate
Of 15 per cent above standard.
Just how this strange situation
came about Mr. Maxwell explained by
drawing a diagram of traffic volume
between New, York and Florida
showing that as the volume decreas-
ed, the freight rates grew higher, as
was natural. Now, he said, if they
had struck an average for the whole
coast, and placed pivot in the cen
ter, there would be no discrimination
in the case of North Carolina, be-
cause the State would be close to the
pivoting point. Instead they split
the coast into two sections, the line
dividing running just south of the
terminals of the transcontinental
lines in Virginia, and pivoted each
one, giving Virginia, as the farthest
from New York in the northeastern
territory, lower rate than to which
she was entitled and North Carolina
as nearest to New York in the
southeastern territory, a greater
burden than she was normally to be
expected to bear.
This, of course, raises the freight
rates for the whole South, for the
| whole south to the Mississippi is in.
cluded in this territory. II ii were
not for this fact New York would
have to pay much higher freight
rate to compensate for a low rate
in Florida.
The example given above has an.
other side. 1t was suggested in the
meeting that a man in South Caro-
lima could ship cheaper to a dealer
in Virginia under the interterritoria
rate, which is to remain the same as
at present, than he could ship to a
dealer in Raleigh. This circum,
stance, Mr.. Maxwell explained
made him think that solie adjust.
ment would be made whea the mat