!••• < THE UNIVERSITY ^^si^ '' OF ILLINOIS LIBRARY VJ 3 Si' #^ ^ ^^^^^^m^^^m^ i^ t^^fl: m* .r^^j. :J Return this book on or before the Latest Date stamped below. result in dismissal from the Universiiy. Universit y of Illinois Lib rary_ mm^^mk:. f^m mm^m ^^•yM^' . i ^ ^l^^'^^ L161-.O-1096 ^mim^M^m^Hm ^'k::> FREIGHT RATES SOUTHERN TERRITORY ADDISON R. SMITH Third Vice-President Louisville & Nashville Railroad lasalle extension university CHICAGO Copyright, 1914 LaSalle extension university 0- in Sv\'^ ^^ CONTENTS p\ Introduction 1 r \ I. DeVEIjOPMENT OF RaTE STRUCTURES Introduction 3 Competition 4 Measure of Rates 10 II. Definitions of Certain Traffic Terms and Terri- torial Descriptions Ohio River Crossings 12 Mississippi River Crossings 12 Eastern Cities 13 Seaboard Territory 13 South Atlantic Ports 1? i:. Gulf Ports 13 Potomac Gateways 14 Virginia Cities 14 Southeastern Territory 14 Carolina Territory 15 Mississippi Valley Territory 16 ^' Kentucky-Tennessee Territory 17 4- III. The Southern Basing-Point System ;- The History 18 J Common Points and Basing Points 30 ^ Competition in Rate-Making 37 ^ IV. Water Transportation in Southern Territory Ji Expenditures of the National Government 48 ■^^ "Water Service Between North Atlantic Ports and ^^ South Atlantic and Gulf Ports 51 Shipments from Principal South Atlantic and Gulf Ports 57 Number of Vessels and Tonnage in the Southeast . . 58 Principal Navigable Streams 59 Tonnage on Different Rivers During 1910 60 Water Transportation at Present Compared with That of the Past 60 1 ii;i.i-l'l oia EXPLANx\TORY NOTE As the author of the treatise on ''Freight Rates: Southern Territory" was preparing his work on that subject in the spring of 1914, the Interstate Commerce Commission announced its decision in regard to the peti- tions of the carriers in this territory for authority to violate the provisions in the fourth section of the Act to Regulate Commerce, the so-called ''long-and-short-haul clause." In some cases these petitions were denied and in other cases they were allowed, involving to some extent the rates to every community in this territory. The importance of this decision may be seen from the fact that while the Commission has already granted the carriers a six months' extension of time (until April 1, 1915) to comply with its order in this case, it is stated by well-informed persons that it will be impossible to com- plete the work by that time and a further extension from that date will be necessary. For these reasons it has been deemed advisable to treat the rate adjustments employed in this territory as they exist rather than to attempt to forecast the ultimate results of compliance with the order, and a due allowance should be made for discrepancies between the basis given in this work and such new rates as may be published in the future. It is not anticipated, however, that the value of this treatise will be affected to a great extent until the order of the Commission has been fully complied with. L. E. U. FREIGHT RATES SOUTHERN TERRITORY INTRODUCTION The term '^ Southern Territory," as it is used herein, includes that territory lying south of the Ohio and Potomac rivers and east of the Mississippi River. For rate-making purposes this territory is sub-divided into four sections — the Southeastern (wliich is the largest in poijnt of area, railroad mileage, and volume of traffic), the Mississippi Valley, the Carolina, and the Kentucky- Tennessee. This sub-division came about through varia- tions in the geographical and competitive conditions, as well as in the separate interests of the several rail- roads serving, respectively, these sections. Through this territory there extend from west to east, the lines of the Norfolk and Western Railway, the Chesa- peake & Ohio Railway, and certain branch lines of rail- roads operating north of the Ohio and Potomac rivers, as well as some independent lines whose outlets are via these northern roads. The adjustments of the rates on such roads are entirely under the rate bases applying to the railroads north of the Ohio and Potomac rivers, and it is only the lines of the railroads lying south of the Norfolk and Western Railway, including those which run from the north to the south and cross these others at 1 2 • INTRODUCTION light angles, whose adjustments are dealt with in this treatise. Within the Southern Territory the Southern Classifi- cation is generally employed, except that certain state railroad commissions have adopted for the government of intrastate traffic separate classifications, which, how- ever, are founded upon the Southern Classification. There are also used locally by individual lines certain exception sheets, which, substantially in effect, produce lines of commodity rates. Through or joint rates from points outside the Southern Territory to destinations therein, with very few exceptions, are also governed by the Southern Classification. The treatise on ''Freight Classification" explains quite fully the application of the Southern Classification. In this treatise the influences that have produced the freight rate structure in the Southern Territory will be pointed out, and the relationship of rates under this structure, as they are exemplified by existing tariffs, will be shown in their main features. There will also be outlined the basis of rate construction between places in this territory and places beyond the border thereof. CHAPTER I development of rate structures 1. Inteoduction While, generally speaking, rates in Southern Territory are, as elsewhere, proportionate to the length of the haul, it may be said that distance is not the main factor under which the rate fabric has been constructed; in fact, this fabric has grown up under the stress of competitive in- fluences as developed by the competition of rail carriers with water carriers, rail carriers wdth rail carriers, mar- kets with markets, commodities with commodities, and often under the pressure of public agitation or govern- mental authorities not in direct control. It may be said that the basic principle of rate construc- tion is the mileage or graduated local tariffs of the respective lines handling traffic between two places in the territory — a single tariff where there is a single-line haul, and a combination of rates under the local tariffs of the interested line where there is more than a one- line haul. Variations from this basic principle — always under lower figures — have been produced by the com- petitive influences referred to. 4 FREIGHT RATES: SOUTHERN TERRITORY Taken as a whole, the present-day rate adjustment in the South produces a relationship between places in a given section of the territory and between one section and another. This adjustment is widely divergent from that observed in Central Freight Association and Trunk Line territories, where scales of rates proportionate to distance and a percentage system of relationship (one or the other or both) is practically universally observed. Nor is there any general practice of grouping geograph- ical districts and of applying the same rates to all places in a given district, such as is observed in making rates to Texas territory; in fact, it cannot be said that there is any resemblance between the Southern rate fabric and that in any other section of the country, except a few long-distance adjustments in Western Territory. 2. Competition (a) Competition between Water Carriers and Rail Carriers By far the most potent of the competitive influences which served to develop the present-day rate system in the South is the water transportation, most of which is available throughout the year. The Atlantic Ocean on the east, the Gulf of Mexico on the south, the great arteries of the Mississippi River on the west, and the Ohio River on the north, together with the numerous smaller navi- gable streams piercing almost to the center of the terri- tory, all furnish ready means of water transportation, both by regular and tramp lines of boats as well as by boats operated in furtherance of minor and private DEVELOPMENT OF RATE STRUCTURES 5 interests. The rates made by the water carriers, both between river points and between seaside points, are invariably less than the scales of rates employed by the rail carriers. Wherever, therefore, there is any consid- erable tonnage involved, it will be found that the rail rates are more or less depressed below the level of those usually made for like distances between places not affected by water transportation. A study of the map ^ will show the navigable waters reaching far into the interior, most of them being opera- tive, except for very short periods caused by floods, from nine to twelve months in the year. The government is rapidly improving channel conditions in these rivers, so that the time is not far distant when all of them will be navigable to boats of a capacity proportionate to the size of the river and to the traffic thereon, during the entire year. The Potomac Eiver is navigable to Washington, D. C, the James River to Richmond, the Cape Fear River to Fayetteville, N. C, the Pedee River to Cheraw, S. C, the Santee River to Columbia, S. C, the Savannah River to Augusta, Ga., the Altamaha and Ocmulgee rivers to Macon, Ga., the Apalachicola and Chattahoochee rivers to Columbus, Ga., the Flint River to Albany, Ga., the Alabama River to Montgomery, Ala., the Tombigbee River to Demopolis, Ala., and the Pearl River to Jackson, Miss. The Yazoo River and its tributaries keep open the so-called delta section of Mississippi, by water, to the outside world. The Tennessee River is operative from its mouth to Knoxville. The Cumberland River is navigable as far up as Burnside, Ky. Navigation in 1 Map 11 of the Atlas of Traffic Maps. 6 FREIGHT RATES: SOUTHERN TERRITORY the Green River as far as Mammoth Cave, Ky. (with branch communication by means of the Barren River to Bowling Green, Ky.) is made possible during the entire year as a result of the damming and locking of the stream. The Kentucky River is navigable from Carrollton, Ky., to High Bridge, Ky. In addition, there are some navigable stretches of water in the interior, such as on the Coosa River between Rome, Ga., and Gadsden, Ala. Govern- mental improvements, in time, will doubtless connect these isolated stretches of navigable water. In truth, governmental reports show that out of 36,796 miles of navigable water in the United States no less than 16,722 miles (45 per cent) serve the Southern Territory. All the inland waterways referred to have been used to a greater or lesser extent at various periods during the settlement of the territory surrounding them and the commercial and industrial development. In the case of most of them, boat transportation was greater, rela- tively, at the time when the main courses of the exchange and distribution of commodities was between and through cities and towns connected by these streams than it is at the present time. Naturally, the development of in- dustry and trade of inland towns has comparatively lessened the volume of the traffic to move via the water- ways. Nevertheless, they are used, on the whole, at this time, and to a very great extent, for the transportation of commodities between water-side places and places reached conveniently through these. Also, the potential- ity of this character of competition remains even when boat transportation has receded to small proportions, and it serves to keep the rail rates depressed to the level to which they have been brought by the active competi- tion. DEVELOPMENT OF RATE STRUCTURES ^ (h) Market and Sectional Competition A second factor of great importance in the develop- ment of the Southern rate structure has been that of com- petition between market and market or section and section. In reality, this form of competition is one be- tween the railroads themselves, because in recognizing such each was developing its separate interests. The benefit, from the public's standpoint, was the expansion of trade competition. A carrier whose geographical location is such that it was interested in the handling of traffic from the East and which crosses a line whose loca- tion caused its main interest to lie in the movement of traffic from the Central West, would find that if it did not adjust its rates so as to enable the consumers and distributors at the crossing place to purchase supplies in the East, it would have very little traffic to move into the junction, and would have to be content with the rev- enue on local hauls from the junction of the commodities brought into the distributing point by the western line. Also, the natural jealousy existing between one producing or concentrating place or section and another place or section caused the producers and shippers therein to use constant pressure on the particular railroad or railroads serving them to yield the lowest rates they could secure, so that they might compete fairly or hold the trade at given destinations which were also served by carriers reaching other producing places and sections. Thus, while it was quite to the interest of the carriers to see that their rates were adjusted in a proper relationship between their direct or indirect competitive points and those of other railroads, they were not allowed to over- 8 FEEIGHT RATES: SOUTHERN TERRITORY look or forget these interests, because they were identical with those of their patrons. Moreover, in the development of the rates under the influences just mentioned, there was the strong factor of active railroad competition in its truer meaning. In adjusting their rates to meet fairly the necessities of one market competing with another, there resulted nat- urally wide differences of opinion between the traffic managers, each seeking to promote the commercial in- terests of the particular section served by his railroad. Naturally, this caused demands for relative adjustments, to which opposing traffic managers would not agree. All of these things, in the course of time, became settled after numerous and destructive rate wars, mutual concessions and arbitrations. The concessions and arbitrations fre- quently had to be worked out on lower planes or measures of rates than doubtless would have been the case had any particular railroad or group of railroads been able to dominate the situation. (c) Effects of Competition The construction of railroad mileage during the period of the greatest development and settlement of the present- day structure was very rapid — much greater than was justified by the traffic then to be found. The struggle for any business that was being offered was of the keenest, as the very lives of the corporations depended upon get- ting all of the traffic that could be secured. Such a con- dition naturally tended against stability of rates and adjustments and lent itself readily to the two factors just spoken of, namely, (1) competition between water- ways and railways and (2) competition between markets DEVELOPMENT OF BATE STRUCTURES 9 and markets or sections and sections. Notwithstanding this, with the exception of a very few, every railroad corporation that existed prior to 1890 had gone through the bankruptcy courts one or more times. (d) Long-Distance Rates There were various other factors, important in the direct result but more or less local in their application, which become apparent in a detailed analysis of the present rates, such as the making of a lower rate than what might be termed a normal rate for a considerable haul, to enable a commodity to be marketed against a producer at the destination or much nearer the destina- tion. In the case of the latter,. the longer-haul rate is usually less, in proportion to distance or cost of handling, than the shorter rate. There is also the competition of one commodity with another that is of a similar nature. Numerous other examples of the kind might be cited. (e) Competition with Northern Railroads Another condition which had a strong bearing in determining the level of rates between points where the influence extended, was the strong trunk line railroads running between the East and West along the northern boundary of this territory and furnishing transportation at rates much below the level of those maintained in prac- tically every other section of the country.* 2 Chesapeake & Ohio Railway, Pennsylvania Railroad, Balti- more & Ohio Railroad, and Norfolli and Western Railway. 10 FREIGHT RATES: SOUTHERN TERRITORY (f) Effects of Rate-Cuttmg While, in the past, rate-cutting prevailed to some extent in the South, it was far less comprehensive than in other sections of the country. As a rule, it was confined to certain commodities and did not affect many places at a time ; rarely did a railroad cut the rates on all of its com- petitive traffic. While such rate-cutting had an important effect on the business of other lines at the time, still the volume of the traffic affected, as compared with the total, was always small. The rate wars mentioned, or rate-cutting, have had their effect upon the rate structure of the South, but such effect has not been material, as compared with the other influences, in making the level of the rates lower in any particular section or between any places than it might otherwise have been. 3. Measure of Rates A word may be said with respect to the measure of the rates applying throughout the Southern Territory, both for local and competitive hauls and for the long as well as short distances. These rates, in comparison with those existing ixi Central Freight Association and Trunk Line territories and between those territories, appear very high. For similar distances, however, in the various sec- tions west of the Mississippi River and particularly west of the Missouri River, the comparison is much more favorable to the lines in the South. The Southern rail- roads claim that, taken as a whole and considering the operating conditions and volume of traffic, the rates com- pare very favorably with those in any section of the coun- try, including the North and East. An examination of DEVELOPMENT OF RATE STRUCTURES 11 the results of operation as reported by these various railroads demonstrates that they cannot afford to op- erate generally any lower rates than those in use at the present time. CHAPTER II DEFINITIONS OF CERTAIN TRAFFIC TERMS AND TERRI- TORIAL DESCRIPTIONS To facilitate a clearer understanding of succeeding statements, the following definitions and descriptions, which are commonly employed by Southern railroads in the technical work of rate construction and which more or less frequently appear in their tariffs, are given : 1. Ohio River Crossings The Ohio River Crossings are cities through which the trafiic of the North and West passes to and from the South, viz: Cincinnati, 0., Covington, Newport, Louis- ville, Henderson, Paducah, and Columbus, Ky., Jeffer- sonville. New Albany, and Evansville, Ind., Brookport, Cairo, and Thebes, 111., and Belmont, Mo. Most of these cities are located on the Ohio River. Thebes, Belmont, and Columbus, however, are, in fact, on the Mississippi River, but being in the geographical district of Cairo they take the same rates and are included in the category of the Ohio River Crossings. 2. Mississippi River Crossings The Mississippi River Crossings are St. Louis, Mo., East St. Louis, 111., Memphis, Tenn., Greenville and 12 DEFINITIONS AND DESCRIPTIONS 13 Vicksburg, Miss., and New Orleans, La. The latter city is also classed as a Gulf port. 3. Eastern Cities The Eastern Cities, so-called, are Boston, Mass., Providence, R. I., New York, N. Y,, Philadelphia, Pa., and Baltimore, Md. 4. Seaboard Territory Seaboard Territory generally embraces all points on and east of a line beginning at Toronto, Ont. ; thence via the shore of Lake Ontario, Hamilton to Niagara; thence via Niagara River, including both banks of said river to Buffalo; thence via an imaginary line through Oil City, Pa., to Pittsburgh, Pa. ; thence to Wheeling, W. Va. ; thence via an imaginary line through Charleston, W. Va., to Bristol, Tenn. ; and thence eastward via the southern boundary of the state of Virginia to the Atlantic Ocean. On certain traffic this territory does not include tlie Western Termini points. 5. South Atlantic Ports The South Atlantic Ports are Charleston, Beaufort, and Port Royal, S. C, Savannah and Brunswick, Ga., and Jacksonville and Fernandina, Fla. 6. Gulf Ports The principal Gulf ports are New Orleans, La., Gulf- port, Miss., Mobile, Ala., and Pensacola, Apalachicola, Tampa, and Key West, Fla. 14 FREIGHT RATES: SOUTHERN TERRITORY (New Orleans is on the Mississippi River about 100 miles from its mouth. It is, however, near the head of navigation for deep-sea vessels and is ordinarily classed as a Gulf port as well as, as is indicated above, a Miss- issippi River Crossing.) 7. Potomac Gateways The Potomac Gateways are Alexandria, Va., Hagers- town, Md., Potomac Yards, Va., Shenandoah Junction, W. Va., Strasburg Junction, Va., and Washington, D. C. 8. Virginia Cities The Virginia Cities, so-called, are Basic, Bothwell, Burkeville, Charlottesville, Clifton Forge, Gordonsville, Hampton, Lexington, Lynchburg, Newport News, Nor- folk, Orange, Petersburg, Phoebus, Portsmouth, Rich- mond, Roanoke, Staunton, Suffolk, and Waynesboro, Va. 9. Southeastern Territory The Southeastern Territory, as that term is techni- cally used in rate construction, is that great section lying east of the main line of the Mobile & Ohio Rail- road from Corinth, Miss., to Mobile, Ala., and on and south of the Memphis Division of the Southern Railway from Corinth, Miss., to Chattanooga, Tenn., and on and south of a line drawn from Chattanooga, Tenn., through Cleveland, Tenn., Murphy, N. C, and Walhalla, Green- wood, and Columbia, S. C, to Wilmington, N. C. (The term ''Southeastern Territory" is often used to refer to what is the proper geographical description of a sec- DEFINITIONS AND DESCRIPTIONS 15 tioii of the United States — that is, the wholQ of the ter- ritory under discussion lying south of the Ohio and Potomac rivers and east of the Mississippi River. Such reference is improper when dealing with what is termed *'the Southeastern rate adjustment.") For rate-making purposes the carriers interested make a technical sub-division of this territory into two groups, namely, "Atlanta Sub-Territory" and "Montgomery Sub-Territory." The peculiar distinction is only in that to the Montgomery Sub-Territory the rates from Cin- cinnati and points taking same rates are higher than from Louisville and Ohio River Crossings beloAv, whereas to Atlanta Sub-Territory the rates from all of the Ohio River Crossings are the same. 10. Carolina Territory The Carolina Territory includes territory within the following described boundaries: (1) On, north, and east of the line from Wilmington, N. C. (includiiUg Wilmington), via W. C. & A. Division of the Atlantic Coast Line, to Columbia, S. C. ; thence via the Southern Railway and Blue Ridge Railroad through Alston, Newberry, Greenwood, Abbeville, Bel- ton, Anderson, and Seneca, S. C, to Walhalla, S. C. ; thence via an imaginary line from Walhalla through Murphy, N. C, to Cleveland, Tenn. (including Cleve- land) ; and thence via the Southern Railway from Cleve- land to Chattanooga, Tenn. (not including Chattanooga). The northern boundary is the main line of the Norfolk and Western Railway from Norfolk, Va., to Bristol, Tenn. The western boundary is the North Carolina-Tennessee state line to a point east of Cleveland, Tenn. A portion 16 FREIGHT RATES: SOUTHERN TERRITORY of East Tennessee (see Atlas) for the purpose only of adjusting the rates as between Ohio River Crossings and points related thereto to destinations in East Tennessee, is included as being in Carolina Territory. (2) On, east, and south of a line drawn from Cleve- land, Tenn., via the Southern Railway through Athens and Knoxville to Bristol (including Bristol and includ- ing also points on the K. & 0. Division of the Southern Railway between Knoxville and Jellico, not including Jellico) ; and thence via a line drawn just south of the main line of the Norfolk and Western Railway, from Bristol, Tenn., to a point just south of Norfolk, Va. 11. Mississippi Valley Territory The Mississippi Valley Territory includes territory within the following described boundaries : (1) On and east of the east bank of the Mississippi River south of Cairo (but including Helena, Ark., and Vidalia, La., on the west bank). (2) South of the Ohio River from Cairo to Paducah (not including Cairo or any point on the Ohio River). (3) On and west of the line from Paducah, Ky. (not including Paducah), via the M. & P. Division of the Nash- ville, Chattanooga & St. Louis Railway to Paris, Tenn. ; thence via the Louisville & Nashville Railroad through McKenzie to Milan, Tenn.; thence via the Illinois Cen- tral Railroad to Jackson, Tenn.; and thence via the Mobile & Ohio Railroad through Meridian, Miss., to Mobile, Ala. (including Aberdeen and Columbus, Miss.). DEFINITIONS AND DESCRIPTIONS 17 12. Kentucky-Tennessee Territory The boundaries of the Kentucky-Tennesse Territory are as follows: On the east by the lines of the Louis- ville & Nashville Railroad in Kentucky and the Southern Railway in Tennessee; on the south by the northern boundary of Southeastern Territory ; on the west by the eastern boundary of Mississippi Valley Territory; and on the north by the Ohio River. CHAPTER III the southern basing- point system 1. The History This system has a history which has its beginning with the construction of the first railroad in the South. It has grown with the development of the railroad sys- tems and is a part of the warp and woof of the rate structure. It cannot be understood except in the light of a knowledge of the geography of this section of our country, and it cannot be appreciated without at least some knowledge of the history of the development of the railroads and of the boat lines by which this system has been brought to its present status, for ''the roots of the present are deep in the past, and nothing is dead to the man who will learn from the past how the present came to be what it is." This system of rate-making has grown and expanded from the freight charges applied over a single line of railway only 135 miles in length to a vast body of rates contained in thousands of printed tariff schedules and applied over nearly 30,000 miles of railway. The great natural highways of commerce on the north, east, south, and west make, in effect, almost an island of the territory under discussion. These natural means of transporta- tion, permitting it to be reached by the outside world at nearly every point on its borders and aided by the many navigable streams by which it is pierced, furnished a 18 THE SOUTHERN BASING-POINT SYSTEM 19 means of transportation to the pioneers of the region long before railroads were built ; that is, trade centers existed and trade routes were established years prior to the time when railroads became a means of transportation. (a) First Basing -Points Prior to the beginning of railway construction in the South, the trade centers and distributing points were located on the Atlantic and Gulf coasts and on the nav- igable waterways. Naturally the dominating markets were those cities or towns located along the seaboard and at or near the mouths of the navigable rivers ; it was those places that commanded the entire trade of the develop- ing territory. Such were Norfolk and Richmond, Va., on the James River; Wilmington, N. C, at the mouth of the Cape Fear River; Georgetown, S. C, at the mouth of the Pedee River; Charleston, S. C, located at a point where it could use the Santee River, the Pedee River, or the Savannah River; Savannah, Ga., at the mouth of the river of that name; Brunswick, Ga., commanding the Altamaha and Ocmulgee trade; Apalachicola, Fla., com- manding the trade of southern Georgia and Alabama by means of the Chattahoochee and Flint rivers; Mobile, Ala., controlling the trade of the greater portion of Ala- bama and parts of Mississippi and vying with Apalachi- cola for the trade in southern Alabama ; and New Orleans, La., near the mouth of the Mississippi River, having a vast territory open to her by means of the Mississippi River and its tributaries. Trade centers through which vast areas secured their supplies and from which trade routes radiated in all directions were on the navigable rivers leading from the 20 FREIGHT RATES: SOUTHERN TERRITORY trade controlling centers just mentioned, usually at the head of navigation. Such places were Fayetteville, N. C, Cheraw and Columbia, S. iC., Augusta, Macon, Albany, and Columbus, Ga., Montgomery, Ala., Jackson, Miss., etc. On the north and west there were places like Cincinnati and Louisville on the Ohio River and Memphis and Vicks- burg on the Mississippi River, which were not only con- trolling centers but distributing points as well, and which drew from sources by means of wagon over the mountains to Pittsburgh and thence by boat, down the Ohio, or by sea and thence up the Mississippi River. These were also primary markets in the sense that they were gather- ing points of the food products of considerable areas in the Central West. There were minor trade centers up the tributaries of the Ohio and Mississippi rivers, such as Nashville and Clarksville, Tenn. Naturally, there was great rivalry between these centers of trade control in reaching the interior distrib- uting centers. Savannah, Ga., distributed her mer- chandise to the interior in competition with Charleston, S. C, and Brunswick, Ga. All of them reached as far as they could, overcoming natural disadvantages as best they might. Charleston reached, west of the Savannah River, using all overland routes against Savannah's advantage of a part-water route. Originally, these places in the interior were more on the order of trading posts than distributing centers, in the modern sense of the word, but as their trade grew they not only con- tinued to deal with the dominating centers along the seaboard, but reached out past them to secure their sup- plies directly from primary markets. Thus, gradually, they came directly into competition with the more favor- ably situated places which had theretofore dominated THE SOUTHERN BASING-POINT SYSTEM 21 their trade. In time, for example, Augusta, Ga., which originally was in a great degree dependent on Savannah and Charleston, became a competitor, as well as a patron, of those places. It takes little imagination to realize how, even prior to railroad construction, these coastal and inte- rior towns declined to remain content with the trade each in its immediate section, but, reaching out, struggled for that of the other. In 1830, in addition to the markets and trade distrib- uting centers referred to, there were others of less im- portance doing a greater or less distributing business in the sections tributary to them, respectively. Such cen- ters were Milledgeville, Ga., at the head of navigation on the Oconee River; Eufaula, Ala., and Fort Gaines, Ga., on the Chattahoochee River; Rome, Ga., on the Coosa River ; Selma, Ala., on the Alabama River ; Chat- tanooga and Knoxville, Tenn., on the Tennessee River; Frankfort, Ky., on the Kentucky River; 'and Bowling Green, Ky., on the Barren River. There were, too, trad- ing posts advantageously located, usually in some sec- tion that was settling up and on routes which offered comparatively easy means of transportation. (h) Construction of Railroads The earlier railroad construction was all determined upon to enable the market points to reach into a develop- ing territory to compete therein more successfully with other places having greater natural advantages. The construction, naturally, was to connect places which had trade and which afforded a traffic at the outset. Thus we witness Charleston, S. C, promoting a railroad to Hamburg, S. C. (immediately across the river from 22 FREIGHT RATES: SOUTHERN TERRITORY Augusta, Ga.), to enable it to divert from Savamiati a greater share of the business done at and through Augusta ; this railroad, which was the third in the United States, and, at the time, the longest in the world, was completed in 1833. Of course, having the advantage of an easy use of a natural highway to Augusta, Ga., the people of Savan- nah devoted their energies rather to removing their own disadvantage, and, in 1833, began the construction of a railroad from Savannah to Macon, enabling them to com- pete on more equal terms with those who were using the Altamaha and Ocmulgee rivers ; this line was completed in 1845. The success of the earlier railroads constructed, both in this country and in Europe, turned the attention of the people in the Southern States to the development of artificial highways. In the first instance, as has been indicated, the construction of railways was in every case undertaken for the purpose of reaching some navigable river within or near the borders of a single state, of con- necting navigable rivers, of connecting places on differ- ent navigable rivers, or of building from the river towns into the interior. While the beginning of rail- road planning dated from 1828, it was not until 1836 that the daring suggestion of a possibility of constructing great trunk lines across the territory of the several states was entertained in the South. It was many years, however, before any line that even approached the modern meaning of the term ** trunk line" was actually constructed. In 1834 the state of Georgia commenced the construc- tion of a railroad from the Tennessee River at Chat- tanooga, Tenn., which was to form a connection near THE SOUTHERN BASING-POINT SYSTEM 23 Decatur, Ga., with a railroad which was building west- ward from Augusta, Ga., to meet it ; the meeting point of these two railroads is now the city of Atlanta, Ga. About the time these were completed, the people at Savannah and Macon, Ga., extended their road also to form a con- nection with the two just mentioned. The idea in this construction was to enable western products to be drawn up the Tennessee River for distribution by rail, and thus avoid the more tedious and expensive transportation of such via the Atlantic seaboard or down the Mississippi River, and also to distribute the products of the North Atlantic seaboard and Europe into northern Alabama, Georgia, Tennessee, and Kentucky as against the older route down the Ohio River from Pittsburgh, Pa. This project was aided by the completion in 1844 of the 43-mile railroad from Tuscumbia, Ala., to Decatur, Ala., around the Mussel Shoals in the Tennesse River, which were an obstruction, except at certain seasons, to successful nav- igation of the Tennessee River as far as Chattanooga. About 1852 a road was completed between Nashville and Chattanooga, Tenn., thus affording still more easy means of transportation of western products by combined water and rail routes into the Southeast. Practically at the same time, a railroad was completed northeastwardly from Montgomery, at the head of navigation on the Alabama River, and when completed to Atlanta, afforded a more successful means of transportation from the lower Mississippi Valley into Georgia and the Carolinas than theretofore existed around Florida. About the same time was constructed a railroad from Knoxville, Tenn., at the head of navigation on the Tennessee River, to Bristol, Tenn., and railroads radiating northwest- wardly from Columbia. S. C, gave that place the com- 24 FREIGHT RATES: SOUTHERN TERRITORY mand of the trade in northern and western South Caro- lina and the southern and western portions of North Carolina. (c) Early Tariffs In the beginning, the railroads planned their tariffs a good deal like those they found being used by the steam- boats ; that is, some rates were made per package or per article, and others on a weight basis; but the rail lines, recognizing that they could not exist on the actual water charges per unit of distance, measured their figures on a materially higher plane. We find, however, at the beginning, the railroads were compelled to lower their tariffs considerably between the points of actual com- petition with the water carriers. Thus began the first variation from the present-day long-and-short-haul prin- ciple as embodied in the Fourth Section of the Inter- state Commerce Act. In his annual report to the stockholders for the year 1844, President Cuyler, of the Central of Georgia Railway, bewailed the fact that he was forced to make material reductions in his rates between Savannah and Macon on account of the very active boat competition, and he further deplored the fact that the shippers at intermediate points had made complaints because he had made these reduced rates between Savan- nah and Macon without reducing the rates between Savannah and intermediate points. It is evident that President Cuyler felt very keenly the injustice of these complaints, and in his report he set forth the reason and justification for his course, from which is quoted the following : The subject of rates for freight has engaged the earnest THE SOUTHERN BASING-POINT SYSTEM 25 attention of the Board of Directors, and during the past week it was determined that the rate should be reduced on the main body of articles transported, generally 25 per cent. I submit to you a table of these new rates, and beg leave to offer a few remarks on this point. It cannot have escaped your observation that complaints have been made in relation to the proportion which way freights — freights to intermediate stations, bear at times to the through rates. At Macon and Savannah, the termini of our road, there has been strong competition in the transportation business. The experience of the past winter has proven the necessity of reducing the through rates of freight to a very low point when navigation was good. When the road shall, by reason of low river, be the only means of conveyance to Macon, the rates can be carried to the maximum point indicated in the table for up goods, and to a profitable standard for cotton. This sliding scale of rates, at the termini of the road, is imposed on the company as a matter of necessity. In establish- ing the way rates, which are intended to be permanent, we have sought to carry goods and produce, for the planter or trader, at a rate below any other means of conveyance to and from his door; thus making it his interest to use our road. If, in the experience of the company, hereafter, it shall be found that goods and produce can be transported with fair profits, at a rate still lower than the now established rate, then sound policy will dictate the propriety of coming down, in the reasonable expec- tation that there will be an increase of business. You will perceive that the freights on salt, bar iron, and agricultural implements have been reduced in greater proportion than on any other goods which go by weight. The idea that injustice is done to the traders and planters of the intermediate country, when we reduce our through rates without a corresponding reduction of way rates, is fallacious. The necessity imposed on us by nature in the one case does not exist in the other, and it should not be forgotten that if, on a very low scale to Macon, there should be a corresponding fall in rates through the whole line, the rates would not pay us for the expense of transportation, and then, as no work of 26 FREIGHT RATES: SOUTHERN TERRITORY this kind can ever succeed and be permanent without profit to the stockholders, the traders and planters of the interior might lose what they now have — a cheap means of transportation. The Board of Directors seeks to have the freights so high as to be profitable to the stockholders, and so low as to make it the obvious interest of the public to give the road their business, and it believes that the present table of rates is established on that basis. It should be borne in mind, moreover, that the operations of a road so extended as this — its effect upon the country to which it is tributary, and the effect of that country upon the road itself — are matters not to be known intuitively, but to be learned by nice observation and through experience. We are even yet in our infancy, but progressing I trust to that state in which the invitations of sound knowledge, heartily welcomed, wiU lead not only to our own success, but also to the public. In the same way, we find that the South Carolina Railroad early found that the merchants at Charleston, S. C, could not compete at Augusta, Ga., against the cheaper transportation afforded the Savannah merchants in shipping to Augusta, unless it materially reduced its tariff between Charleston and Augusta. The records show a great number of instances, prior to the beginning of the active construction of the existing rate fabric, where, to meet competition — principally water compe- tition — single lines made reductions of considerable amounts in their distance or local tariffs between the places of active competition, but there are no instances where, at that time, two or more lines made any joint rates below the combination of their several rates, either because of competition or other conditions. As a matter of fact, with the beginning of the operation of these railways and continuing with few exceptions until the renewal of railroad activities following the Civil THE SOUTHERN BASING-POINT SYSTEM 27 War, joint transportation charges over two or more lines were made by adding the separate charges of the carriers involved. If a shipment was made from New York, via Charleston, to some point on the Charleston Railroad, the boat line bringing the freight to Charleston exacted its rate thereto the same as it assessed on business to Charleston proper, and the railroad carrying the freight from Charleston to destination exacted its local rate from Charleston; thus Charleston became a basing point for rates from New York and other places, through Charles- ton, to destinations between Charleston and Augusta, as well as to Augusta. If a shipment was made from Charleston to a point on the Georgia Railroad between Augusta and Atlanta, each line exacted its full local charges for the carriage of the freight; thus, Augusta became a basing point for rates to points between Augusta and Atlanta. In like manner, Atlanta, being a point for interchange of freight between the Georgia Railroad and the Western & Atlantic Railroad, became a basing point for rates on freight from points east thereof to destina- tions west. These examples in number were equal to the number of terminal points of the railroads in operation. (d) Joint Rates and Through Routes While there was some recognition given to the com- mercial necessities and best interests of the interested carriers in the making of joint rates for the purpose of developing traffic or of enabling it to move from a place or section which was not, at the time, a factor in a given trade, the expediency and wisdom of such action was not fully recognized until following the Civil War, which marked the real beginning of joint rates and through 28 FREIGHT RATES: SOUTHERN TERRITORY routes, wliicli were made to meet the circumstances and conditions that might be found at each destination, or those of a particular line of traffic. It was during the period from 1868 to 1890 that the Southern rate fabric, as it now stands, may be said to have been completely constructed. This statement does not mean that the figures as they were made during this period have neces- sarily been continued. There have been many changes, both in the figures and by the substitution of lower relative rates to many destinations which, during that period, were not considered basing points, but which are now handled as such. At the beginning of this period, as has been stated, railroad managers began to recognize that the interests of the places and sections served by them and the inter- ests of their railroads were mutual, and that these inter- ests could be better advanced by getting aw^ay from their old idea that each road was a local entity and by making such rates as would be necessary to induce the opening of all possible avenues of trade at rates necessary to move the traffic, each carrier securing the greatest share pos- sible at the most favorable rates. It was recognized that at a local station all that was necessary was a system of through rates, but that it was not necessary for the terminal line to abate its charges, for the traffic would move in the greatest possible volume to that local station on the basis of local rates, insofar as the terminal line was concerned. If, however, the Western & Atlantic Railroad, being interested in the traffic from the West to Atlanta, but not from the South Atlantic Coast or from the East thereto, desired to participate in traffic being drawn by Atlanta, it had to be careful to see that its own rates and connections from the West to Atlanta were THE SOUTHERN BASING-POINT SYSTEM 29 properly adjusted as against the rates from other sources of supply. Similarly did the Georgia Railroad, which had no interest in the movement of business from the West to Atlanta, but only from the East or from the coast points, have to watch to see that there were no rate inequalities which would prevent it from doing a fair share of Atlanta's traffic. When it came to Augusta's business, the situation as to the Georgia Railroad was reversed ; that is, its interest lay in the movement of busi- ness from the West and not from the East. The merchants at Atlanta and Augusta, being interested in securing the widest possible range of markets of supply, brought every possible influence to bear to secure, not what was a proper equality in their respective rates, but to get all the advantages they could, each over the other and over other competing towns. While at a local station on the Georgia Railroad midway between Atlanta and Augusta traffic could and did successfully move on the basis of the local charges of the Georgia Railroad, from either Atlanta or Augusta, as the case might be, plus the lowest rates that could be secured up to Atlanta or Augusta, there was no incentive for the Georgia Railroad to make any reduc- tions. Naturally, the keenness of the competition between the sources of supply, coupled with the jealous activities of the interested carriers, brought about very low rates from the West to Augusta, producing from the West very little higher rates than to Atlanta. In the reverse direc- tion, Augusta's rates naturally were somewhat lower than those to Atlanta, but the differences represented very materially lower figures than the local rates between the two places. 30 FREIGHT RATES: SOUTHERN TERRITORY 2. Common Points and Basing Points (a) Description Terms used in describing places in the South which have these competitive adjustments are ''common points" and ''basing points"; often these terms are employed interchangeably. Literally, a common point is a place served by two or more common carriers — rail or water, or both. In most cases the rates for other than shorter hauls to these places are below either the sums of the rates of the indi- vidual carriers forming through routes or the local scales of a single line; frequently even the shorter-haul rates are similarly lower than such maximums, due principally to the working of relative adjustments between points of origin. There is, however, to be found a considerable number of junction points, the rates to which from vari- ous points of origin are made on a combination or local tariff basis or reach figures approximating such bases. A common point is not necessarily a basing point, as there are junctions the rates to which are not sufficiently low, as compared w^ith those to other junctions in the same section, to figure in making total rates to adjacent local stations. A basing point is literally a place on which through rates to other points are calculated either on a combi- nation or a differential basis; the rates to the basing points, for other than the shortest or local hauls, are in- variably less than the sums of the rates of each interested line, where the transportation is over two or more lines, or the local scales of a single line; and, as is apparent from previous statements, there are no basing points THE SOUTHERN BASING-POINT SYSTEM 31 except at the intersection of railroads, of water routes, or of a railroad and a navigable body of water. To other than the common points, through rates are made by the addition of the local rates of the terminal line to the rates to the adjacent basing points on such hne, the resulting lowest combination being the figures employed. There are variations from this principle of constructing rates to the non-competitive destinations: (1) A line having a single haul does not exceed, in any case, its tariffs of distance or local rates; and (2) from the East to a considerable portion of the Carolina terri- tory, and both from the East and the West to a certain portion of South Georgia, through rates are made on differentials higher than to the adjacent basing points, which, of course, serve to produce lower through rates than would exist by the application of the lowest com- bination principle. {h) Lists of Common and Basing Points The basing points in the South may be separated into two classes — those that are so-called natural basing points, and those created by the operation of conditions among the railroads themselves. The first, as will read- ily be understood, are those such as Augusta and Macon, Ga., Montgomery, Ala., Nashville, Tenn., and the like, which were basing points prior to the existence of the railroads, due to the availability of water navigation. In these cases, transportation charges from the sources of supply to points beyond the basing points were made by the addition of the water transportation charges thereto, to the wagoning or packing charges beyond. The arti- ficial basing points — if such a term may be properly em- 32 FREIGHT RATES : SOUTHERN TERRITORY ployed— are places such as Atlanta, Ga., Birmingham, Ala., and Meridian, Miss., where the competition as be- tween the railroads gradually brought about lessening relative rates as compared with other places in the im- mediate territory. At the present time the basing points employed in the southeastern rate construction are as follows : (a) Natural Basing Points Albany Ga. Fort Gaines Ga. Apalachicola Fla. Gadsden Ala. Attalla Ala. Hawkinsville Ga. Augusta Ga. Jacksonville Fla. Bainbridge Ga. Knoxville Tenn. Beaufort S. 0. Macon Ga. Brunswick Ga. Milledgeville Ga. Cliarleston S. C. Montgomery Ala. Chattanooga Tenn. Palatka Fla. Columbia S. C. River Junction Fla. Columbia Ala. Rome Ga. Columbus Ga. Savannah Ga. Demopolis Ala. Selma Ala. Dublin Ga. (6) Artificial Basing Points Americus Ga. Fitzgerald Ga. Anniston Ala. Fort Valley Ga. Athens Ga. Gainesville Ga. Atlanta Ga. Greenville Fla. Athens Tenn. Harriman Tenn. Barclay Ala. Jacksonville Ala. Bessemer Ala. Johnson City Tenn. Birmingham Ala. Jellico Tenn. Bristol .....Tenn. La Grange Ga. Calera Ala. Montezuma Ga. Cartersville Ga. Moultrie Ga. Cedartown Ga. Newnan Ga. Cordele Ga. Newport Tenn. Dalton Ga. Opelika Ala. Dawson Ga. Piedmont Ala. THE SOUTHERN BASING-POINT SYSTEM 33 Pitts Ga. Quitman Ga. Vienna Ga. Washington Ga. Roanoke Ala. Waycross Ga. Tallahassee Fla. Thomasville Ga. Wellington Ala. West Point Ga. Tifton Ga. Worth Ga. Valdosta Ga. Those used in constructing rates to destinations in Carolina territory are: Athens Ga. Atlanta Ga. Augusta Ga. Burkeville Va. Charleston S. C. Columbia S. O. Johnson City Tenn. Kilby Va. Norfolk Va. Paint Rock N. C. Petersburg Va. Richmond Va. Roanoke Va. St. Paul Va. Suffolk Va. Those used in making of through rates to points in the Mississippi Valley Territory are : Aberdeen Miss. Brookhaven Miss. Columbus Miss. Corinth Miss. Ellisville Miss. Gibbs Tenn. Grand Junction Tenn. Greenville Miss. Greenwood Miss. Gulfport Miss. Hattiesburg Miss. Holly Springs Miss. Humboldt Tenn. Jackson Miss. Jackson Tenn. Laurel Miss. Lumberton Miss. McKenzie Tenn. Martin Tenn. Memphis Tenn. Meridian Miss. Milan Tenn. Mobile Ala. Natchez Miss. New Albany Miss. New Orleans La. Newton Miss. Paris Tenn. Rivers Tenn. Starkville .Miss. Tupelo Miss. Union City Tenn. Vicksburg Miss. West Point Miss. Winona Miss. Yazoo City Miss. 34 FREIGHT RATES: SOUTHERN TERRITORY In the making of through rates to points in Kentucky- Tennessee Territory, practically every junction is con- sidered as a basing point, although many of the hauls are so short that the various local scales often fix the rates. (c) Development of the Common Points During the long period of settlement prior to the year 1828, which marked the beginning of plans for railroad construction in this territory, the principal industry was the production of cotton. There were substantially no manufactures of any kind which were intended to supply other than an immediate local demand. The main food supplies of the Southeast were, of course, produced and exchanged between producers and consumers in its various different sections. The people, however, were dependent for a great many articles of necessity or com- parative luxury, such as manufactured and prepared food articles, textiles, farm and household supplies, etc., on the North Atlantic seaboard and foreign countries, although a gradual modification of this condition con- tinued until after the Civil War. About 1870 began a change, and while the South today is not to be compared with the northern and eastern states in point of produc- tion and manufacture of commodities, it has made rapid strides toward the final point of being self-sustained, that is, substantially independent of other sections as concerns all commodities of common use. In this earlier period the dominating cities which did a jobbing or wholesaling business and which were pri- mary markets in the sense that it was through them that the products of the outside world used in the South were THE SOUTHERN BASING-POINT SYSTEM 35 concentrated and distributed, were those on or near the outer borders of the territory — Baltimore, Richmond, Norfolk, Wilmington, Charleston, Savannah, Brunswick, Mobile, New Orleans, Memphis, St. Louis, and Louisville. These cities, besides being the main sources from which the interior towns drew their supplies, competed with the interior places in making final distribution to the trading "** posts and countryside. Attention has been drawn to the fact that the first railroads were built through settled sections, or at least between settled sections, for only in these was there any traffic in sight. The guiding reason, however, was the extension of the means of competition, one city with an- other, and the first result was the connection of the water- ways and of what has been termed the natural basing points. The so-called artificial basing points are the out- growth of subsequent development of the thinly settled sections, these points being logical centers from the stand- point of natural and railroad geography and their rates being fixed by prime considerations, all of which may be included in the list of the considerations producing the rates at the natural basing points, save the important one of water competition, although the latter may have in- directly been an influence, as will be hereinafter explained. The cities and towns of original importance in commercial affairs have already been named and need not be again mentioned. Those others which are included in the lists of present-day basing points are all of subsequent growth, some of them of comparatively recent origin, indeed, some not having a civic existence beyond a quarter of a century. Some of these common points have been given that standing and their low comparative rates in the interest, 36 FREIGHT RATES: SOUTHERN TERRITORY primarily, of a particular line of railroad reaching them. Such self-serving is in reality a form of railroad compe- tition. In most instances, however, the accession of each town to the dignity of a common point was through force of circumstances quite beyond the control of any individual railroad; there was invariably some form of compelling competition to be found at these places which brought about the competition in rate-making. In some instances, the strength of these compulsory conditions has not increased, hence the relationship of rates of those places with the rates of others has not substantially altered. In other instances, added forces have brought the rates to the particular places affected to a lower relative plane, as compared with competing centers, than previously existed. It has been said that the real beginning of the present- day rate fabric was only a little over forty years ago. It will be interesting, in this connection, to give some study to the appended map showing the railroad lines that were in existence in the Southern States in 1870, and which shows also the principal inland navigable waters. By comparing this map with the latest one, the tremen- dous increase in the railroad mileage will be apparent, as will also the increase in the number of common points which are the principal jobbing points today. We have now gone over the various elements which have been in control of the rate-making to these places, but for the purpose of illustrating how the more impor- tant basing points procured their position as such, these will be briefly touched on again. \Jf' THE SOUTHERN BASING-POINT SYSTEM 37 3. Competition in Rate-Making The following factors in rate-making in Southern Territory are the most important, and they will be treated individually. (a) Direct competition of rival routes. (b) Furtherance of an individual carrier's direct interest. (c) Competition between the different markets. (d) Competition between the southern common and competitive points. (e) Direct water competition. (f) Indirect water competition. (g) Legal requirements. It will be noted that, with the exception of the last one, these factors have been in effect to some extent from the time that traffic began to develop in this territory. The Interstate Commerce Law has introduced a very impor- tant factor that in many cases modified the other factors. (a) Direct Competition of Rival Routes The direct competition of rival routes from the same points or adjacent sections of origin to the same desti- nations, illustrated by those instances where some one terminal line has independently established a lower scale of rates than theretofore existed, and other roads reach- ing these towns have been compelled to apply the same rates or lose the traffic. When the line of what is now the Seaboard Air Line between Montgomery and Savan- nah was completed to a point near Savannah, there existed along the new route no place of commercial strength. The result was that on inbound business the 38 FREIGHT RATES: SOUTHERN TERRITORY railroad enjoyed but a single local haul from Savannah at the one end or from Montgomery at the other, each of which drew its supplies from original sources over rival lines. After inducing one of its connections from the Ohio River to establish a competitive basis of divi- sion of rates to Americus, it enjoyed an inbound as well as an outbound haul; the other Americus railroad was forced to lower its rates to avoid loss of traffic. The town of Opelika, struggling to increase the scope of its trade against Columbus, Atlanta, and Montgomery, brought pressure to bear upon its lines, as a result of which one of the lines reduced the rates from the Ohio Eiver to the Columbus basis; the rival line necessarily had to meet the new adjustment. A further example is seen in the rates from Eastern Cities to LaGrange, Ga. ; enterprise at this place had developed some jobbing business, but it was meeting with difficulty in competing with Atlanta, Opelika, Macon, etc. The merchants were able to induce the Atlanta, Birmingham & Atlantic Railroad to level its rates from New York, in connection with a steamer line which the railroad controlled, to the same as were in effect to Atlanta. This gave the Atlanta, Birmingham & Atlantic Railroad an opportunity to share in the traffic for distribution, which would otherwise have been handled to one of the three cities named. The completion of the Gulf «& Ship Island Railroad forced a reduction in the rates to and from Gulfport, Miss., to an equal basis with New Orleans, thus giving Gulfport an opportunity to job in the territory thereto- fore supplied by the other two cities named and by Jack- son and Meridian, Miss.; to share in the traffic, other lines had to meet the new rates. The some consideration brought about the adjustments to Dawson, Cartersville, THE SOUTHERN BASING-POINT SYSTEM 39 Cedartown, Athens, and Newnan, Ga., as well as to some of the other basing points. •"4 • -> (h) Furtherance of an Individual Carrier's Direct Interest It is difficult to separate this element from the one im- mediately before referred to, for, inevitably, in the examples just given, there is the development of the direct interest of the carrier inaugurating the change, but in the cases of each of the towns referred to the object was to create a jobbing business where none or very little had previously existed. Under this second head are given examples of readjustments to places which had, at the time of such changes, an estabUshed jobbing business under competitive rates, and it is difficult to see that the scope of influence of the places affected was materially increased. Prior to the construction of the Kansas City, Memphis & Birmingham Railroad from Memphis, Tenn., to Bir- mingham, Ala., the rates between those places were substantially the same as between Memphis and Mont- gomery, Ala. The new railroad immediately reduced the rates to place Birmingham on a lower plane as compared with Montgomery, and on a better relative plane as com- pared with Chattanooga. While the adjustment to New Orleans from the Central West was fixed by water com- petition, which did not exist in nearly so great a degree at Mobile, the Mobile & Ohio Railroad, to the extent of its ability to control the adjustment, forced a reduction to Mobile to the New Orleans basis. Prior to that time the rates at Mobile, as at New Orleans, had been measured by the force of conditions found at that point. What has 40 FREIGHT RATES: SOUTHERN TERRITORY just been said in the case of Mobile may also be said of Pensacola, Fla., which the Louisville and Nashville Kail- road subsequently placed on the Mobile basis. (c) Competition Between Different Markets The competition between the different markets of sale, production, or concentration, in the East, North, and West, in connection with the various competing carriers serving these rival markets and all engaged in contin- uous strife to further the sale and secure the transporta- tion of goods to the common Southern markets. The principal example of the effect of this kind of competition will be seen in the future statement of relative adjust- ment of rates from Ohio and Mississippi river crossings and from the East to certain portions of the Southern Territory, more particularly the Southeast. The jealousy of the particular lines and groups of lines of disturb- ances of rate conditions under this relationship which has hardened into concrete shape, is such that it is almost a certainty that should a rate from the East on a certain article of common production in the East and the West be changed to any destination in the Southeast, it will be followed by a corresponding reduction in the rates from the Ohio Eiver, and vice versa. Similarly, has the rate relationship between the Southern common points become so fixed that a rate from the East or West, or both, to a single destination, cannot be reduced except there fol- lows a readjustment to include the other cities. Similarly, are the rates from any one of the Ohio River Crossings hinged upon the others and from the Mississippi River Crossings upon those from the Ohio River. Changes from the Mississippi River affect the Gulf ports. The adjust- THE SOUTHERN BASING-POINT SYSTEM 41 ment from the South Atlantic ports has a great degree of relationship with the rates from Eastern Cities and Virginia Cities and the Gulf ports. The rates from the Virginia cities are forced down with every reduc- tion from Eastern Cities. This relationship does not stop at the border of the territory, however, as changes from the border frequently are followed by reductions between the interior cities, and invariably so when the commodity affected is of more or less common production. If the Illinois Central Eailroad lowers the plane of rates from Cairo and St. Louis to junction points on its line in the Mississippi Valley, the lines leading from other Ohio Kiver Crossings, from Nashville, Chattanooga, Birming- ham, Atlanta, etc., protect the interests served by them by making corresponding reductions. This form of competition has been one of the main factors in deter- mining the measure of rates that exist at every common point in the Southern Territory. Water competition may have been the factor in establishing the rates to a given point from some one or more points of origin, but the rivalry of other markets with the market so favor- ably situated has brought this other factor into play. (d) Competition Between Southern Common and Com- petitive Points The competition between the Southern common and competitive points for the trade of the intermediate local territory in connection with the different carriers reach- ing and serving these common points is an element which has joined with the previous ones in determining the measure of rates to each of the contiguous cities and includes a good deal of the factor of individual railroad 42 FREIGHT RATES: SOUTHERN TERRITORY interest described above. While so involved, it neverthe- less arises from the demands of the particular cities alf ected and their ability to enforce their demands by one means or another. There is a constant pressure from every city to procure as low relative rates as it can make the railroads serving it yield — at least as low as its rival cities, but, if possible, such as will give it an advantage over its rivals. This pressure is reflected in nearly every basing-point adjustment. In 1904-5 the city of Atlanta undertook to force a lower plane of rates from the Ohio River as compared with the rates to Birmingham. It was able to secure some lowering in the level, but not to the extent demanded. Birmingham, at the present time, is demanding a certain lowering of its level of rates as compared with those to Atlanta. The individual inter- ests of a single carrier are not nearly so extensive as to be wholly Avithin this factor, for the simple reason that most of the carriers have many communities to serve and they cannot, under the existing law, in their own interest develop, by an unfair lowering of rates, a given place served by them, while ignoring the demands of the vari- ous other places served by them. (e) Direct Water Competition The elements dealt with in the preceding paragraphs are not at all unique ; they are existent in all of the rate structures throughout the United States. Nor is the one of water competition peculiar to the South, but, in this territory, it is the fixed and guiding factor upon which was founded the entire rate structure. Direct water com- petition enters into some of the adjustments only, but it is reflected throughout practically the whole of them, and THE SOUTHERN BASING-POINT SYSTEM 43 in their final analysis we inevitably return to water com- petition between some two places as determining the measure of the rail rates between other places. The water-and-rail rates from Eastern Cities to Augusta approximate the combined water rates via Savannah and the Savannah Eiver, when insurance, transfer costs, difference in the value of service, and other incidents of the water rates are considered. The through water-and-rail rates from the East to At- lanta were originally about equivalent to the combination of water rates to Savannah, plus the Georgia Commis- sion's rates thence to destination. The through water- and-rail rates from the East to Macon were made taking into account the water rates available via the Altamaha River, and sunilarly were the direct water-and-rail rates from the East to all points on these inland water- ways made. To the interior points the direct water-and- rail rates may not exceed the combination of the vessel rates to the ports, plus the established rail rates to desti- nation. It may be said here in passing, that the long- and-short-haul principle has no standing in the admin- istration of railroad rates by the commissions either of Georgia or Alabama, both of which frequently make rates between common points lower than to intermedi- ate points. Water competition having measured the rates, the other elements which have been referred to come into play. The all-rail rates from the East must necessarily be restricted to comparatively small differences (repre- senting value of service) higher than the direct water- and-rail-route rates. If the western markets are to do a share of the business at those basing points whose rates from eastern markets have been fixed by the water routes, 44 FREIGHT RATES: SOUTHERN TERRITORY they must be adjusted on a correspondingly low plane. If Atlanta is to do a share of the trade as against Augusta, her rates from the East must not be materially higher than the corresponding ones to Augusta, and the rates from the West must not be too great as compared with those from the East. A railroad serving Birmingham, but not At- lanta, has its interests necessarily centered in Birming- ham and feels obligated to do all it can to further Bir- mingham's trade as against Atlanta's. It has been previously shown how the rates at the Coast and Gulf cities and on the navigable waterways leading from these cities have been fixed, so far as the rates from the East are concerned, by the direct water competition. It will be interesting to note some of the instances where the same force has worked between inland cities served by navigable rivers. The main element fixing rates be- tween points on the Mississippi Eiver was, of course, the boat service on that river, although other influences helped to fix the measure of some of the rates. In the adjustment from St. Louis to cities south of Memphis, including New Orleans, reached by the rail lines, we have an evidence of the custom of the river carriers in group- ing a long stretch of territory under one line of rates, reflected in the rail adjustment, where rates from St. Louis to New Orleans were applied to each of the cities south of Memphis (a stretch of several hundred miles) ; the adjustment illustrates the fact that water competition controls, whether the place of destination is or is not reached by some other railroad, for the rates to Friars Point and Rosedale, Miss., local stations on the Yazoo & Mississippi Valley Railroad, are precisely the same as those to Greenville, Vicksburg, and New Orleans, which are common points. There is a further illustration of this THE SOUTHERN BASING-POINT SYSTEM 45 iustance of water control in the fact that the river in- terests break their rate-grouping at Memphis, so that the rates to that place are materially less than to Friars Point, 70 miles south, although the rates to Friars Point are the same as to New Orleans, which is over 400 miles south of it. In the meeting of direct water competition, a railroad can be no respecter of distances. Water competition on the Cumberland River fixed the measure of the rail rates between Evansville and Hen- derson on the one hand and Nashville and Clarksville on the other, on the Ohio and Kentucky rivers between Lou- isville and Frankfort, on the Green and Barren rivers between Bowling Green and Evansville, on the Tennessee River between Paducah and Florence, Sheffield, Tuscum- bia, Decatur, Chattanooga, and Knoxville ; in fact, in all cases where two places are on any connected stretch of navigable river and also on a railroad. In these cases comes into play, secondarily, the other rate-making elements which have been discussed. While there is water service between Louisville and Nashville, it has to pass the doors of Evansville and Henderson; Evans- ville is substantially the same distance by rail from Nashville as is Louisville, and market competition de- manded rates so as to permit Louisville to compete with Evansville. The rates from Louisville to Memphis and other lower Mississippi River points are the same as from St. Louis, because there was through water competition which enabled Louisville to secure water rates competi- tive with St. Louis. Cincinnati had, however, to pay somewhat higlier water rates ; hence, her rail rates were also somewhat hiiiiier than from Louisville and St. Louis. 46 FREIGHT RATES: SOUTHERN TERRITORY (/) Indirect Water Competition This element is, in a great measure, subsidiary to direct competition, but as there necessarily enters into it, in a great degree, the elements of carrier and market compe- tition, it must be regarded as somewhat apart from the other. When we speak of the rates from the Ohio Riv'er to Augusta, Ga., being made to enable the Central West to compete with the East, which has water-made rates to Augusta, we deal with it as a matter of market competi- tion. Nevertheless, such instances may be taken as a potent form of indirect water competition. There are, however, numerous instances w^here the element of mar- ket competition has not been an influence. The rail rates from St. Louis to Jackson, Miss., v\'ere fixed substantially by the water rates to Vicksburg, added to the 44-mile rail rates thence to destination. Some of the rail rates between Vicksburg and Jackson were forced to a very low plane by the Mississippi Commission, which, by the way, has not, in many of its rate decisions, regarded the long-and-short- haul principle. Just as were the rail rates from Ohio River Crossings to Vicksburg proper measured by the rates of the boat lines, just so were the rates to Jackson measured. Montgomery and Selma, Ala., are other points in evidence, as the maximum rail rates from the Ohio River to those points take into account the rates to Mobile and thence on the Alabama River. The Jackson situation, as outlined, is true also at places like Green- wood and Winona, Miss. Through rail rates from the East to rail points not on rivers in Georgia and Alabama are measured by the water rates to coast cities, plus the rail rates to destination. THE SOUTHERN BASING-POINT SYSTEM 47 {g) Legal Requirements A number of basing points have been created as such by orders of the Interstate Commerce Commission, which, after hearings, concluded that the carriers had not recog- nized fully the rights of these places, or, having estab- lished competitive rates in furtherance of individual interests, they had thereby discriminated against the places complaining. Basing points having adjustments resulting from the Commission's orders, either as con- cerns the western or the eastern points of origin, or both, and from related points, are Tifton, Vienna, Monte- zuma, LaG-range, Dawson, Moultrie, and Cordele, Ga. CHAPTER IV WATER TRANSPORTATION IN SOUTHERN TERRITORY Owing to the preponderant weight of the water com- petitive forces, past, present, and potential, within and around the territory, which have overborne all other in- fluences, it is desirable that a chapter be devoted to an outlined description of available routes and service on the waterways. 1. EXPENDITUEES OF THE NaTIOXAL GOVERNMENT Any discussion of this subject would be incomplete without some explanation of the very great aid that the federal government has given to the development of the commerce of the rivers and of the ocean. The report of the Secretaiy of the Treasury, made to Congress March 6, 1912, shows that the aggregate of the expenditures for river and harbor improvements in the United States from the foundation of the government up to the close of the fiscal year ended June 30, 1911, reached the enor- mous total of $627,098,236. This is exclusive of the expenditures for the Panama Canal. The following summary shows the disposition of the allotment of expenditures to the Southern States : Virgin ia — James River $ 2,086,957 ApiX)iuattox River 741,330 Jame« and Appomattox Rivers jointly 710,231 48 WATER TRANSPORTATION 49 Norfolk Harbor. 2,588,224 Rappahannock River 502,023 Smaller Rivers and Harbors 1,807,953 Total Expenditures 8,436,718 North Carolina — Cape Fear River 4,760,993 Waterway between Pamlico Sound and Beaufort Inlet . . 503,500 Smaller Waterways and Harbors 2,192,564 Total Expenditures 7,457,057 South Carolina — Charleston Harbor 4,935,197 Winyah Bay 2,500,161 Smaller Waterways and Harbors 2,335,605 Total Expenditures 9,770,963 Georgia — Savannah Harbor , 8,443,703 Savannah River 1,176,285 Brunswick Harbor 1,252,^44 Altamaha, Oconee, Ocmulgee, Chattahoochee Rivers 1,500,924 Total Expenditures 32,373,856 Florida — St. John's River 4,813,003 Tampa Bay 740,011 Key West Harbor 703,000 Smaller Rivers and Harbors 4,949,044 Total Expenditures 11,205,058 Alabama — Mobile Bay and Harbor 5,870,652 Alabama River 799,975 Black Warrior River 735,629 Smaller Waterways 218,423 Total Expenditures 7,624,679 Mississippi — Pascagoula River 1,048,274 Yazoo River 1,079,577 Mississippi River in vicinity of Vicksburg 349,000 50 FREIGHT RATES : SOUTHERN TERRITORY Gulfport Harbor 374,446 Smaller Waterways 1,903,889 Total Expenditures 4,755,186 Tennessee — Mississippi River near Memphis 258,000 Tennessee and Cumberland Rivers 441,028 Total Expenditures 699,028 Kentucky — Kentucky River 3,626,271 Green River 535,428 Green and Barren Rivers jointly 135,000 Tennessee and Cumberland Rivers 380,345 Total Expenditures 4,677,044 The report of the Secretary also shows large expendi- tures on the different rivers within Southern Territory or adjacent thereto, these not being separable by states. Among such disbursements should be mentioned $23,- 548,338.15 on the Ohio River and $121,142,554.41 on the Mississippi Eiver. This portion of the report also shows expenditures on the Black Warrior and the Tombigbee rivers in Alabama and Mississippi amounting to $3,929,- 775.97, on the Chattahoochee River in Georgia and Ala- bama amounting to $620,025.95, on the Chattahoochee and the Flint rivers in Georgia, Florida, and Alabama amounting to $133,000.00, on the Coosa River in Georgia and Alabama amounting to $1,553,594.08, and on the Cumberland River in Kentucky and Tennessee amounting to $4,050,532.18. It will be found that out of these disbursements of up- wards of $627,000,000.00 for river and harbor improve- ments in the United States approximately one-third has been expended either on the Mississippi and the Ohio WATER TRANSPORTATION 51 rivers or on the coast line of the Southern States from the Chesapeake to the Mississippi and the rivers which pene- trate these states. All of this is highly indicative of the great activity which the federal government has exercised in the development of the rivers, harbors, and canals of the Southern Territory. Apparently, the government designs to make of the Ohio, the Mississippi, the James, the Alabama, the Tombigbee, the Chattahoochee, the Ocmulgee, the Savannah, the Cumberland, and the Ten- nessee rivers great national free highways for the carriage of the commerce of this country. How far this intention has been realized can be ascertained only by an exam- ination of the tonnage and character of traffic moving on these rivers. 2. Water Service between North Atlantic Ports and South Atlantic and Gulf Ports (a) The Important Lines Probably no water service between any two points in the United States is more efficient than is the water serv- ice furnished by the ships on the Atlantic Ocean plying between the North Atlantic ports and the South Atlantic and Gulf ports. Among the principal steamship lines furnishing service of this character should be mentioned the following : Number of Name of Sailings sailings per Steamer Line between week each way Old Dominion S. S. Co. N. Y. and Norfolk Harbor points.. 6 Southern S. S. Co. Philadelphia and Charleston and Jacksonville and Tampa 1 52 FREIGHT RATES : SOUTHERN TERRITORY Number of Name of Sailings sailings per Steamer Line between week each way Clyde S. S. Co. New York and Charleston and Jacksonville 4 New York and Brunswick 2 Boston and Charleston and Jack- sonville 2 Ocean S. S. Co. New York and Savannah 3 Boston and Savannah 2 Baltimore & Carolina S. S. Baltimore and Georgetown, S. C, Co. and Charleston 1 Merchants & Miners Trans- Boston and Norfolk 3 portation Co. Providence and Norfolk 3 Baltimore and Norfolk 3 Baltimore and Savannah 3 Philadelphia and Savannah and Jacksonville 3 Mallory S. S. Co. New York and Key West, Tampa and Mobile 1 Philadelphia & Gulf S. S. Co. Philadelphia and New Orleans and Charleston 3i Southern Pacific S. S. Line. New York and New Orleans 2 ^ Per month. (h) The Important Ports and Boat Service The port-to-port business of Charleston, Savannah, Brunswick, and Jacksonville is of great importance. During the calendar year 1911, 1,005 vessels entered the port of Charleston, of which 873 carried the United States flag. Presumably all of these vessels under the United States flag were engaged in coastwise traffic. There were forwarded from Charleston by schooner to eastern ports during the calendar year 1911, 106 vessel loads of lum- ber, containing 47,191,107 feet, and 7 vessel loads of phos- phate rock, containing 6,789 tons. WATER TRANSPORTATION 63 The most important port in Georgia is Savannah on the Savannah Eiver, eighteen miles from the sea. In 1906, Savannah ranked fourth among the ports of the Atlantic Coast of the United States. Besides the coast- wise service previously outlined, Savannah is served by the Savannah & Bluffton Steamship Line between Savan- nah and Bluffton, by the Merchants & Farmers Naviga- tion Company and by the Augusta & Savannah Steamship Company, each of which lines has two boats and averages two sailings per week between Savanah and Augusta. During the year 1911, the tonnage from and to foreign countries amounted to 277,856 tons entered and 414,315 tons cleared. Brunswick, another port of considerable importance, is situated eighty miles south of Savannah. In addition to the Clyde Steamship Company she is served by the Brunswick & Florida Steamboat Company, which fur- nishes a service six times a week between Brunswick, Ga., and Fernandina, Fla., and a service six to twelve times a week between Brunswick and St. Simons, Ga. The Brunswick & Satilla Steamboat Company furnishes service three times a week between Brunsmck and Burnt Fork, Ga., and the Brunswick, St. Simons & Darien Com- pany furnishes service six times a week between Bruns- wick and Darien, Ga. Clearances and entrances of all ships in the foreign trade at Brunswick during the year 1911 show entrances of 74 steamships and 15 sailing vessels and clearances of 70 steamships and 13 sailing vessels. Clearances and entrances of all ships in the coastwise trade of Brunswick during the year 1911 show entrances of 143 steamships and 122 sailing vessels and clearances of 142 steamships and 124 sailing vessels. During the same year, there were about 200 departures 54 FREIGHT RATES: SOUTHERN TERRITORY from, and the same number of arrivals at, Brunswick of steamboats doing business on the Satilla River. The most important port of Florida is Jacksonville, situated on the west bank of the St. John's River, about 14 miles from its mouth and 355 miles south of Savannah. The river is navigable for steamboats 200 miles above Jacksonville. Jacksonville is served by the Jacksonville & Mayport Steamship Line with six sailings a week be- tween Jacksonville, Fla., and Fulton, Fla. ; The Clyde's St. John's River Line between Jacksonville and Enter- prise, Fla., the Beech & Miller steamers on the St. John's River between Jacksonville and Crescent City, Fla., and the Inter-Ocean Steamship Company between Jackson- ville and Palatka, Fla., each with three sailings a week; and the Independent Line, which furnishes a service six times a week between Jacksonville and Green Cove Springs, Fla. All of this is in addition to the coastwise service above stated. In the year 1911, there were 3,492 arrivals and clearances of vessels in the coastwise trade and 239 in the foreign trade. The value of the imports during that year Avas $1,086,270.35, while the value of the exports for the first eleven months was $2,141,358.26. A South Carolina port of less importance is Port Royal. The town is on an island near Port Royal Entrance, four miles south of Beaufort, and has water service furnished by the Beaufort & Savannah Line with from three to six sailings a week between that port and Savannah, Ga. Another Florida port of constantly increasing impor- tance is Tampa, which is located at the head of Tampa Bay at the mouth of the Hillsboro River, 240 miles south- west of Jacksonville. Besides the Mallory Steamship Line and the Southern Steamship Company, it is served by the Tampa, Hunter's Point & Sarasota Steamboat WATER TRANSPORTATION 55 Company, plying between Tampa and Sarasota, Fla., three times a week ; by the St. Petersburg Transportation Company plying between Tampa and Ellington, Fla., four times a week ; and by the Penn Steamship Line every ten days between New Orleans, La., and Tampa, Fla. The most important Gulf port on the Gulf of Mexico is New Orleans, La. It is located on the east bank of the Mississippi River distant about 100 miles from its mouth. In addition to the eastern service of the Philadelphia & Gulf Steamship Company and the Southern Pacific Steamship Line, it enjoys a very large vessel service in every direction open by water. The total number of ves- sels engaged in the foreign trade that entered the port of New Orleans during the calendar year 1911 was 1,101, of which 1,085 were steamships and 16 were sailing ves- sels. During the same period 1,118 vessels engaged in the foreign trade cleared from the port of New Orleans, of which 1,102 were steamships and 16 were sailing ves- sels. The Dock Board reports 1,497 steamboat arrivals at New Orleans during the year 1911, 298 arrivals of miscellaneous craft, consisting of flat boats, coal and gravel barges, tugs, transportation barges, etc., and 2,142 arrivals of luggers, gasoline boats, etc., engaged in the oyster, fish, vegetable, and small merchandise trade. New Orleans was founded in 1718 and had a population of approximately 150,000 prior to the build- ing of any railroads connecting it with the Ohio River cities. Through all the early years in the history of New Orleans one can note a steadily increasing tonnage of freight received via the Mississippi River : for the fiscal years ended September 1, 1822, 136,400 tons were re- ceived; 1832, 244,600 tons; 1842, 566,500 tons; 1852, 1,160,500 tons; 1860, 2,187,560 tons. The first annual 56 FREIGHT RATES: SOUTHERN TERRITORY report on the internal commerce of the United States for the fiscal year ended June 30, 1876, shows that the tonnage received at New Orleans during the year 1875 by the Mis- sissippi River was 724,198 tons, while the total amount brought in by the railroads during the same period was 216,940 tons. During the same year 236,694 tons were shipped out by the Mississippi River, while only 166,396 tons were shipped out by rail. This same report shows that for the fiscal year ended June 30, 1876, the total re- ceipt of cotton at New Orleans was 1,424,003 bales, of which 1,105,393 bales, or 78 per cent, were brought in by river. The value of the exports from New Orleans in 1880 amounted to $90,000,000; in 1910, to $140,000,000; and in 1911, to $172,789,754. In 1911 its foreign receipts were 2,019,067 tons and its clearances 2,249,883 tons. Mobile, Ala., is another port of considerable importance on the Gulf of Mexico, it being third in point of volume of tonnage. It is situated on the west bank of the Mobile River at its entrance into the bay of the same name, 30 miles from the Gulf of Mexico and 140 miles east of New Orleans. Mobile is served by the Mallory Steamship Company heretofore mentioned and by the Pensacola, St. Andrews & Gulf Steamship Company once a week between Mobile and Gulf ccast points as far as Carra- belle, Fla. A steamboat line furnishes a service once a week to Selma and Montgomery, Ala., and twice a week to Demopolis and Tuscaloosa, Ala. Mobile has an ad- vantageous position for trade, it being the natural outlet of one of the great cotton regions of the United States. The total number of vessels that entered the port of Mobile during the year 1911 was 673, of which 142 were sailing vessels and 532 steamships. Foreign receipts in the same year amounted to 677,445 tons and clearances WATER TRANSPORTATION 57 amounted to 743,559 tons. The total value of the exports through the port for the year 1911 was $30,154,037, while the value of the imports during the same period was $4,031,737. Pensacola, Fla., located on the bay of that name, has the finest natural harbor on the Gulf Coast and ranks next after Mobile in importance of foreign trade. The Pensacola, St. Andrews & Gulf Steamship Company gives it regular water connection with Mobile and ports east as far as Carrabelle, Fla. 3. Shipments from Principal South Atlantic and Gulf Ports The report of the Chief of Engineers of the United States Army for the calendar year 1910 gives the total amount of the waterborne shipments at the principal South Atlantic and Gulf ports named below : At Norfolk, Va. Tons . 12,477,501 Wilmington, N. C. 944,657 Charleston, S. O. 1,111,952 Savannah, Ga. .. 2,920,060 Brunswick, Ga 784,542 Fernandina, Fla.. 578,645 Jacksonville, Fla,. 1,736,912 Consisting principally of Coal, cotton, fertilizers, forest and agri- cultural products, and general mer- chandise. Cotton, cottonseed meal, naval stores, fertilizers, coal, forest products, and general merchandise. Cotton, cotton goods, fertilizer mater- ials, provisions, general merchandise. Naval stores, fertilizer produce, iron, cotton, lumber, and general merchan- dise. Cotton, lumber, cross ties, naval stores, and general merchandise. Lumber, phosphate rock, naval stores, etc. Coal, cement, fertilizer materials, lumber, oil, phosphate rock, steel rails, and general merchandise. 58 FREIGHT RATES: SOUTHERN TERRITORY At Tons Consisting principally of Key West, Fla . . . 438,776 Cattle, cement, cigars, cross ties, rail- road iron, sandstone, gravel, tobacco, distilled water, and general mer- chandise. Tampa, Fla 2,240,549 Coal, fruits, fertilizers, logs, naval stores, crude oil, phosphate, tobacco, vegetables, and general merchandise. Pensacola, Fla. . . 922,870 Cotton, naval stores, lumber, fertilizer materials, mahogany, and general mer- chandise. Mobile, Ala 1,193,203 Cotton, cotton products, breadstuffs, hog products, lumber and timber, ba- nanas, and sisal grass. New Orleans, La. 4,300,209 Cotton, forest products, fruits, and wide range of merchandise. 4. Number of Vessels and Tonnage in the Southeast The report of the Commissioner of Corporations on Transportation by Water, published by the Department of Commerce and Labor, part I, Table XXII, under the caption of ' ' Operating Agencies of Vessels in the United States in 1907," shows the following number of vessels and the tonnage handled by such : steam Vessels Barges Tonnage Atlantic Coast 95 86 158,393 Alabama River 1 209 Apalachicola River 1 154 Cape Fear River 5 506 Coosa River 2 209 Cumberland River 6 1,427 Flint River 3 500 Gulf Coast 16 5,062 James River 1 814 Mississippi River 45 8 18,517 Ohio River 14 17 9,226 Peedee River 4 405 Santee River 1 62 Savannah River 4 2,192 WATER TRANSPORTATION 59 The report shows also a large number of vessels en- gaged exclusively in one class of traffic, such as the car- riage of lumber, coal, etc. It shows also a limited number of towing lines, some of which are engaged on the rivers flowing through the South Atlantic States and the Gulf States. The report also shows 123 steamships and 5,758 barges with a combined tonnage capacity of 3,559,878 tons en- gaged in coal traffic on the Ohio and the Mississippi rivers and their tributaries. Of this number 83 steamers and 4,070 barges, with a combined tonnage capacity of 2,809,- 052 tons, are owned by one company and operated from Pittsburgh to New Orleans and intermediate points. The report also shows a limited number of towing corpo- rations engaged in business on the Mississippi and Ohio rivers and their tributaries. 5. Principal Navigable Streams The principal navigable streams flowing into the At- lantic Ocean south of the Potomac River are the Rappa- hannock, Pamunkey, the York, the Chickahominy, the James, the Cowan, the Roanoke, the Tar, the Neuse, the Black, the Cape Fear, the Waccanaw, the Pedee, the Little Pedee, the Wateree, the Congaree, the Santee, the Edisto, the Savannah, the Oconee, the Ocmulgee, the Altamaha, the St. Mary's, and the St. John's rivers. The principal navigable streams emptying into the Gulf of Mexico are the Suwanee, the Chattahoochee, the Flint, the Apalachicola, the Mobile, the Alabama, the Tombigbee, the Warrior, the Pascagoula, the Pearl, and the Mississippi rivers. The principal navigable tributa- ries of the Mississippi River emptying into the Missis- 60 FREIGHT RATES: SOUTHERN TERRITORY sippi from the east are the Yazoo, the Big Sunflower, the Tallahatchie, the Big Black, and the Ohio rivers. The principal tributaries of the Ohio River are the Tennessee, the Cumberland, the Green, the Barren, the Kentucky, the Big Sandy, the Great Kanawha, and the Little Ka- nawha rivers. 6. Tonnage on Difpeeent Rivers During 1910 In the following table has been compiled the actual ton- nage moving on the different rivers in Southern Terri- tory during the calendar year 1910. This is taken from the annual report of the Chief of Engineers of the United States Army for the year 1911 : Tons Virginia Rivers 3,547,521 North Carolina Rivers 1,363,742 Soutli Carolina Rivers 651,643 Georgia Rivers 135,596 Florida Rivers 491,763 Alabama Rivers 480,161 Mississippi Rivers 1,973,632 The Mississippi River Between St. Louis and Cairo 289,759 Between Cairo and Memphis 1,039,195 Between Memphis and Vicksburg 980,386 Between Vicksburg and New Orleans 1,530,230 Tennessee Rivers 1,567,407 The Ohio River 11,112,216 West Virginia Rivers 1,562,408 The Kentucky River 254,721 7. Water Transportation at Present Compared with That of the Past In earlier days when the Southern States were not so ramified with railroads, the transportation service on the WATER TRANSPORTATION 61 various inland waterways was much greater than at the present time. In that period manufacturing and trade found the lines of least resistance in the channels of water transportation, and those sections and cities were the strongest which could best avail themselves of this auxiliary of commerce. At the present time the condi- tions have so materially changed that, as compared with forty or sixty years ago, the number of steamboats has greatly lessened, although barge transportation is prob- ably greater now than in the heyday of steamboating. This change is due to a logical evolution. The river cities, no longer dominating in the production and distribution and being the gateways of trade, sections and cities which, being more or less remote from available water highways, rely on rail transportation for the whole or a part of any given service required, have sprung into being and prom- inence. Promptness and regularity, attributes which are always before rail carriers, are of ever-increasing impor- tance to trade. Today, water transportation is largely that of service between the towns and country side on or closely adjacent to the waterways, and there boat trans- portation will always be in control of the rate situation. Notwithstanding the lessened amount of steamboat transportation, the influence which was so compelling in creating the present rail rate structures and in fixing the plane or measure of the rates themselves, will continue. Between waterside towns, in most instances, the active competition of the boats with the rail lines continues, but the potentiality of the old competition remains in any event, not only because the raising of the rail rates would be an open invitation to an immediate increase in the boat service, but because public policy voiced in legislative enactments has provided against advances after active 62 FREIGHT RATES: SOUTHERN TERRITORY competition has lessened or ceased. The indirect poten- tiality of water competition, which had its expression in the relative adjustment from places not subject to direct water competition or where joint water-and-rail competi- tion had an influence, must likewise continue. Coastwise service along the eastern and southern boundaries of the territory, far from lessening, is, in the aggregate, gradually increasing. TEST QUESTIONS These questions are for the student to use in testing his knowledge of the assignment. The answers should be written out, but are not to be sent in to the University. 1. Define the boundaries of Southern Territory. 2. What is the basic principle of rate construction? 3. What is the controlling factor in rate-making in this territory ? 4. Illustrate the effect of market competition. 5. With the rates of what other territory do those applied in Southern Territory favorably compare? 6. Define the boundaries of Seaboard Territory. 7. Mention ten points in Southeastern Territory. 8. What are the principal port cities in Carolina territory? 9. What states are included in Mississippi Valley territory? 10. Discuss briefly the development of the southern basing points. 11. For what purpose were the early railroads constructed in this territory? 12. During what period was the southern rate structure as it stands today developed ? 13. What is the distinction between a common point and a basing point? 14. To what cause may the establishment of the so-called "artificial base points" be attributed? 63 64 TEST QUESTIONS 15. AVhat aro the most important factors in sonthern rate- making? 16. Give an illustration of direct eompetiliou Ix^ween rival routes. 17. AVhat are llie nutre important rivers in the state of Georgia ? 18. Enumerate some of the water carriers serving the South Atlantic jjorts. 19. Of what products does the hulk of commerce in this ter- ritory consist? 20. AVhat are the principal navigable streams emptying into the Gulf of Mexico? 23. Upon what i-iver is the greatest volume of traffic handled? 22. In the absence of water competition upon the rivers, could the rates be materially advanced? CHAPTER V intrastate rates in southern territory 1. Development Between common points in Southern Territory, in the case of rate adjustments to and from points outside of the territory, there is an interlacing fabric, resulting from a definite relationship of one point of origin to another and one point of destination to another. The rates from Chattanooga bear fixed relationship to those from Nashville; the rates from Rome bear fix:ed rela- tionship to those from Chattanooga. Birmingham and Chattanooga are hinged as points of origin. Rates from Atlanta are figured certain differentials below the Chattanooga and Birmingham rates. Birmingham is hinged upon Montgomery; Columbus on Birmingham and Montgomery; Macon on Atlanta, Columbus, etc. It is not meant that to a single destination one of these points of origin has its rates hinged upon several other points of origin; for example, in one instance a rate to or from Atlanta may be made in relation to the Chat- tanooga rate and in the next case in relation to the Birmingham rate, and so forth. In addition, there is often a relationship between different points of destination and one point of origin. 65 66 FREIGHT RATES: SOUTHERN TERRITORY Between points in the same state the crowning factor, however, is the rate made under the general or specific orders of the state commission. The Georgia Com- mission has been particularly active in making whole adjustments between common points as well as between non-competitive points. In Alabama and Florida also, the state commissions have specifically fixed many of the rates. These intrastate adjustments are reflected in the interstate adjustment. For example, a rate made by the Georgia Railroad Commission from Savannah to Atlanta may act to reduce the rates from the Virginia Cities, the Eastern Cities, the Ohio River Crossings, the Mississippi River Crossings, etc. A rate made from Columbus, Ga., to Macon or Augusta, Ga., is often reflected in the rates from points lilce Birmingham and Montgomery, Ala., etc., to the same destinations. The change by the commission in the adjustment from At- lanta to Brunswick will be immediately follow^ed by a corresponding change from Atlanta to Charleston, S. C, and Jacksonville, Fla. From and to intermediate points the general basis is the lowest combination mth continuous mileage scales as maximum. Exceptions apply in the case of rates on manufactured articles and highly competitive commodi- ties, such as lumber, from intermediate points and com- mon basing points. These rates are frequently made the same as those from the next distant competitive point. This being true, it naturally follows that some under- standing of the existing intrastate rates be had in order to follow intelligently the subsequent interstate bases for through-rate construction. This chapter will therefore be devoted to intrastate rates in general. While the Georgia and Florida adjustments have been quite fully INTRASTATE RATES IN SOUTHERN TERRITORY 67 treated, it has not seemed desirable to go to such length in the case of each individual state in the territory, as the conditions are much the same throughout. Every state in this section of the country has a regula- tive body that is vested with authority to supervise the internal commerce of that particular state. This func- tion is performed in some cases by the establishment of maximum rates prescribed by the commission and in other cases by a ratification of schedules submitted by the carrier before becoming effective, or by subsequent ap- proval of carrier's rates established at an earlier date. The following states, either by statutes or by orders of their respective commissions, have prescribed substan- tially complete tables of distance rates : Virginia, North Carolina, South Carolina, Georgia, and Florida. Each of these states has also promulgated a classification of freight applicable mthin the state. In other states, how- ever, the authorities have virtually fixed classifications of their own by accepting the railroads' standard classi- fication (Southern Classification), which is applied gen- erally, with some local exceptions prescribed by the sev- eral interested lines. It will be observed that the state commissions of Virginia, North Carolina, South Carolina, Florida, and Georgia have not failed to recognize the propriety of the fact that many of the smaller and independent lines require rates which are on a higher scale than that accorded the larger systems. 2. Georgia We find that the railroads in the state of Georgia are assigned to four classes according to their traffic strength: Class A, Class B, Class C, and Class D. Class A roads are accorded rates which are on a lower scale 68 FREIGHT RATES: SOUTHERN TERRITORY than Class B roads. Class B roads, while on a higher scale than Class A roads, are on a lower basis than Class C or Class D roads. Table 1 indicates several of the more important lines in the state and the class to which each is assigned. TABLE 1 Classification of the Georgia Railroads Class Road A Alabama Great Southern Railroad A Atlanta & West Point Railroad A Georgia Railroad B Atlantic Coast Line Railroad C Atlanta, Birmingham & Atlantic Railroad C Central of Georgia Railway C Southern Railway D Georgia, Florida & Alabama Railway D Macon, Dublin & Savannah Railroad D Valdosta, Moultrie & Western Railroad The extent to which the rates of Class B, Class C, and Class D roads may exceed the rates announced for Class A roads is indicated in the following paragraphs : CLASS B On Classes 1, 2, 3, 4, 5, 6, A, E, G, H, L,^ N, and O, the Standard Tariff with 20 per cent added. On Classes B, K, M, and R, the Standard Tariff with 10 per cent added. On Classes C, D, F, J, and P, the Standard Tariff without percentage. CLASS c On Classes 1, 2, 3, 4, 5, 6, A, E, G, H, L/ N, and O, the Standard Tariff with 25 per cent added. On Classes B, K, M, and R, the Standard Tariff with 10 per cent added. On Classes C, D, F, J, and P, the Standard Tariff without percentage. iQn lime and ice, the Standard Tariff with 10 per cent added. INTRASTATE RATES IN SOUTHERN TERRITORY 69 CLASS D On Classes 1, 2, 3, 4, 5, 6, A, B, E, G, H, K, L,^ M, N, and O, and R: For 40 miles and under, the Standard Tariff with 50 per cent added; for 70 miles and over 40 miles, the Standard Tariff with 40 per cent added; for 100 miles and over 70 miles, the Standard Tariff with 30 per cent added; over 100 miles, the Standard Tariff with 20 per cent added. On Classes C, D, F, J, and P, the Standard Tariff without percentage. (a) Joint Rates Rule 27 issued by the Railroad Commission of Georgia provides that the maximum charge on a shipment mov- ing between two points located in the state of Georgia but not located on the same road shall be 90 per cent of the sum of the local rate allowed to be charged by each road handling the freight. To illustrate, on a shipment of freight taking the first-class rate, the rate from Fair- burn on the Atlanta & West Point Railroad to Covington on the Georgia Railroad will be arrived at as follows: Take the Atlanta & West Point Railroad rate for first class, from Fairburn to Atlanta (a distance of 18.81 miles), which is 20 cents; from this deduct 10 per cent, or 2 cents, leaving 18 cents as the proportion of the Atlanta & West Point Railroad for transporting the joint shipment from Fairburn to Atlanta. To this add the Georgia Railroad rate from Atlanta to Covington (41 miles), which is 27 cents; deduct 10 per cent, or 3 cents, leaving 24 cents, which represents the Georgia Railroad proportion for hauling the joint through ship- ment from Fairburn to Covington; the total through charge (joint rate) is 42 cents. Each railroad company's proportion in handling joint through shipments must be determined before adding to- gether the rates to arrive at a joint through rate ; unless otherwise provided by a proper division basis among the 70 FREIGHT RATES: SOUTHERN TERRITORY TABLE 2 Georgia Distance Rates Per Bbl. Per Per PER 100 POUNDS 100 100 Lbs. Lbs. Dis- tance 1 2 3 4 5 6 A B c D E Cts. F G H Miles Cts. cts.- cts. Cts. Cts. Cts. Cts. Cts. Cts Cts. Cts. Cts. Cts. 6 13 11 10 8 7 6 6 6 41 S\ 7 9 2i 8 10 IB 14 13 10 9 8 8 8 5i 5 9 lU H 10 16 18 16 15 13 11 9 -• Rates IN Cents per 100 Pounds Except ae No TED Fbom Memphis, Tenn., To 1 2 3 4 5 Classes 6 A 1 B C D e H F2 Montgomery Park Berclaire 4.3 9.1 12.2 16.6 24.8 49.4 72.2 99 122.3 143.5 196.2 290.8 319.6 313 12 18 23 25 28 37 45 49 62 54 64 50 83 70 10 15 20 22 24 32 40 43 46 47 64 40 75 60 9 13 17 18 19 27 34 37 40 42 46 35 61 53 8 12 15 16 17 23 28 30 33 35 38 27 50 43 7 10 13 14 15 20 23 26 29 30 30 23 43 37 6 8 11 12 13 18 21 23 26 27 29 19 37 26 6 7 9 10 11 16 19 21 24 25 28 18 34 16 6 7 9 10 11 16 19 21 24 25 28 23 42 25 6 7 9 10 11 13 15 15 16 16 18 11 24 21 6 7 9 10 11 13 16 15 16 16 18 11 24 17 7 10 13 14 15 20 23 26 29 30 30 23 43 30 8 12 15 16 17 23 28 30 33 36 38 23 60 35 12 H Mullins 18 Cordova ?0 Eads ?? Laconia 98 Denmark SO Lurry 30 Wildersville S? Hollow Rock Jet Dickson 32 T6 Nashville ?0 Decherd 48 Chattanooga 34 'Governed by the Southern Classification. 'Per barrel. It will be observed from Table 4 that to Nashville and Chattanooga rates are published which are considerably less than those applying to intermediate points. In the 77 78 FREIGHT RATES: SOUTHERN TERRITORY case of the former, this is due to the competition on the Cumberland River. The rates to Chattanooga are compelled by market competition and are practically the same as those apply- ing to Chattanooga from Cincinnati, Ohio, which were prescribed by the Interstate Commerce Commission as maximum rates in 1910.^ If the merchants of Mem- phis are to be afforded an opportunity to com- pete with the Cincinnati merchants, the distance be- tween the respective points being practically the same, it naturally follows that they must do so on practically the same scale of rates. The distance from Cincinnati to Chattanooga via the Cincinnati, New Orleans & Texas Pacific Railway is 338 miles, while the distance from Memphis, Tenn., to Chattanooga via the Southern Rail- way is 313 miles. It must also be remembered that through water routes from Memphis, Tenn., to Tennessee River landings are available for practically ten months of the year and con- sequently limti to a great extent the measure of rates that may be exacted to such points. Another line of representative rates between Tennes- see points is shown in Table 5. 2. Flokida As is the case in so far as Georgia is concerned, the Railroad Commission of Florida prescribes maximum rates, a freight classification, and mileages to be applied upon traffic moving within the state. These state rates are usually applied in constructing rates on interstate traffic in the following manner. Reference to the Atlas of Traffic Maps will indicate that the larger portion of this state lies south of Jack- US I. C. C. Rep., 440. INTRASTATE RATES IN SOUTHERN TERRITORY 79 TABLE 5 Class Rates Between Memphis, Tenn., and Stations on the Illinois Central Railroad in Tennessee Miles Rates in Cents per 100 Pounds Except as Noted From Memphis, Tenn., To Classes' 123456ABCDEHF» Frayser 9 13 23 26 30 59 96 117 12 10 9876665566 10 Lucy 15 13 12 11 10 9 9 9 6 6 9 9 12 Tipton Atoka 20 17 15 13 12 11 11 11 7 7 11 11 14 23 20 17 15 14 14 13 13 9 8 13 13 16 Brighton 30 25 21 18 17 16 15 16 12 11 16 17 22 Curve 43 37 33 30 27 23 18 20 19 18 22 25 36 Obion 53 43 35 32 29 25 20 22 21 20 24 30 40 Pierce 55 45 35 32 29 25 20 22 21 20 24 30 40 'Governed by the Southern Classification. *Per barrel. sonville, Fla., which is the principal base point in the state. As Jacksonville is also one of the principal Soutli Atlantic Ports, it naturally enjoys very low rates from the eastern seaboard in connection with the water lines serving it. The rates established by the water lines prac- tically fix the rates which may be charged from interior northern cities. Also, as has been stated, the market competition between the eastern and western territories results in comparatively low rates from the West be- cause of the low charges the East is able to exact. Con- sequently, as a rule, rates are made to inland points in Florida by adding to the rates to Jacksonville the local rates prescribed by the Eailroad Commission of Florida for the class of railroads over which the inland haul is made. Representative rates are indicated in Table 6. As in the other cases, violations of the long-and-short- haul clause under this adjustment exist subject to ap- proval by the state and interstate commissions ; in fact, rates are published from northern points of origin to Key West which are considerably lower than the rates to Jacksonville. These, however, are applicable only upon 80 FREIGHT RATES: SOUTHERN TERRITORY CO 02 "J A I— I « O W fq O '. r W <=! m'^ H ;> W w ^ "^ Q [V] ^ |g ^^ •-I sJ « ^ ^o W O I— ' w o la Q w w. 01 ■O OS ^ an ■^ ^^ CD c» ■eqi 001 -"Sd o rt •a o -ilNm ■>l<"5tDt^ 000)00 rH— IININ l-Hl-Hl-ll-H l-ll-HrH.-l l-l rt IN iN (N IN IN M ooo50>-i Nw^io 50t^ooo5 Oi-iiNm ■^■^iTiin i-Hr-l i-li-Hi-HrH .-H i-H i-H iH C0«C<5 OOOO 000>0 00 0)00 ININTOW OOOO OOOO lOOSt^OO NCCCOM M OOOO OOOO iCOOO OiClO'O Ot-ilNTO THOtOt^ t^00O)O) OO"-"-! 100>00 OOOO O'OOO OiOOiO t~0)OlN CC'-loOO t^l>0000 0)0)00 Oi-ilNCO (NOqNIN (N1NC<1IN <Offl ffliri«o«o > o a a o O -o O CQIOOOO) OINCO'* .-l.-lr-11-l (NINININ lOtDOO IN IN O) CO I-CINM-* COCOCCM iOCOt»0) MCOMCO w Q O fq < C<5 (N iOO)C0t>- Tflt^OCO I-Hl-HININ OlNiJlCO cocococo lOOOIN IN IN CO CO OOOJ-ilN CO CO ^ ^ cOTfonco CO CO CO CO coxit^O) ^ ^ Tj< Tj< »^00O)'-< CO CO CO-* 50000)0 <-<(NCOM< ■.j<'-hMC0 Tfi>Ol>00 F-< ,-H r-( I— 1 i-H f-1 r-( OINCO-* lOtOt^OO ■*t^OC0 rtr-((NIN lO0)C0t>- ■-Ir-lC-JCM O-^OOIN INTRASTATE RATES IN SOUTHERN TERRITORY 81 < p— I o a o H > < O m^ H ^ M >• 5 H S ^ Ota <^ < w o « o p o w w C/2 Per Standard Crate > d 050500 .Mi-<(Ne<) coco-*'* ■.t^O000 00030505 OOO-H iNlNNfN INlNINiN IN IN C^ IN (NINININ COCOCOCO ■sqi 001 -tsj « COCOt^t^ 00000503 OO'-i'H INNC0-<1< - o > to ja a o I— I tH a o §.2 £ S . 82 FREIGHT RATES: SOUTHERN TERRITORY pq m < < h-l « o W n o - Q H o o CD H 0) OOO'H CO CO CO CO CO CO CO Per Stands Crat > ■^TtiouS (NNMN incooco t^t^r^oo (NC^CVlCvl <30 00O M(N(N Per Standard Box O d d CCCO CC CO CO W CO CO lOtOCDtD CO CO CO CO .0CD CO CO CO •sqi 001 -laj « coco coco 00 00 05 o> COCO coco oooo CO-*-*-* f-4 »-H 1— 1 -*■*■* 03 O Ph For Class P Rates, see page 156. oooo oooo oooo oooo oooo oooo OOO OOO u 03 o o CO CO coco 00 00 05 CO CO CO CO oooo CO * ^ ^ ■**-* (2 oooo oooo oooo oooo oooo oooo OOO OOO z ,-4 F-l ^ T-l iniooui ifJiOiOO r- 0) a; n n en CD OJ (U (D 0) GO QQ m GQ (u 01 a> m OQ CD CD O 01 0) §is§ isiiisi lisl sis oooo O-H(NC0 oooo TXiOtOt^ OOOO OOOO-H •* * iO»0 OOO Nco* lOOiO k< >: : : .... .... ... o a: : : 03 GO 0) : : : : : : : : : : : . - - . .... ... / <5 OOOO ^MCO-* ^ ^ ^ ^ oooo •O«3t^00 OOOO OOt-KN -*U5'0'0 OOO CO-*iO lOlOiO •a a > o a o a o a a 3 o £ «> ftcS .25 03 -^ »!^ H oi INTRASTATE RATES IN SOUTHERN TERRITORY 83 traffic destined to Cuba and are not available for domes- tic use. TABLE 7 Distances Prescribed by Florida Railroad Commission for Application on Local Traffic Between Points ON THE East Coast of Florida Distance From Jacksonville, Fla., To Bowden Sunbeam St. Augustine. . . . Hastings Roy DuPont Ormond Port Orange OakHiU Pritchards Melburne Sebastian Fort Pierce Eden West Palm Beach . Fort Lauderdale . . Perrine Jewfish Long Key Cudjoe Miles 5 9 47 54 69 90 104 115 136 158 194 215 242 254 299 341 382 415 458 500 Distance From Jacksonville, Fla., To Bayard Woodland Armstrong. . . . East Palatka . . Neoga Highwood Daytonia New Smyrna . . East Mims .... Cocoa Malabar Gifford Ancona Stuart Delray Miami Homestead. . . . Central Supply . Marathon Key West Miles 15 24 49 62 80 98 110 125 150 173 200 225 249 262 317 366 394 444 475 522 The close proximity of Key West to Cuba is attract- ing a considerable volume of traffic to that port, but as this adjustment is specifically dealt with in the treatise devoted to export rates,^ we deem it unnecessary to go into it at this time. The contour of Florida is such that water competi- tion is a controlling factor in the adjustment of rates from and to many points, Jacksonville forming the prin- cipal port of entry on the east coast, although irregular sailings are made to Fernandina. Tampa, Carrabelle, ^Part 4 of "Freight Rates — Western Territory." 84 FREIGHT RATES: SOUTHERN TERRITORY Pensacola, and Apalachicola on the west coast afford safe harbors for steamers and sailing craft operating between these ports and Mobile, Ala., New Orleans, La., and Galveston, Tex. (a) Joint Rates The rule of the Florida Railroad Commission with reference to the construction of joint rates is that in the case of shipments which pass over the whole or por- tions of two or more roads not under the same control, the maximum rate charged shall not be greater than the sum of the local rates on such freights, less 10 per cent for the distance hauled over each road; in the case of shipments passing over three or more roads, the maxi- mum rate shall not be greater than the sum of the local rates on such freights, less 20 per cent for the distance hauled over each road. The total rate thus ascertained on such freights, from the point of shipment to the point of destination, shall be divided in such proportion be- tween the railroads over which such freights pass as to give to each railroad interested in the shipment its local rate, less 10 per cent in the case of shipments over two roads, and less 20 per cent in the case of shipments over three or more roads, for the distance such shipment is hauled, conditioned upon the initial line delivering the traffic to the delivering line at its nearest junctional point. 3. North Carolina The scale of rates prescribed by the general assembly of the state of North Carolina was alleged by the car- riers to be unremuneratjve and therefore unreasonable. For this reason, the governor of the state appointed a special commission to investigate the claims of the car- INTRASTATE RATES IN SOUTHERN TERRITORY 85 riers and as a result the rates indicated in Table 8 were adopted for the use of the carriers operating within this state. The general rules prescribed for the application of this basis of rates are as follows : (1) The rates are subject to the Southern Classifi- cation, except where lower ratings are or may be pub- lished by the North Carolina Corporation Committee, in which case the lower ratings shall prevail. (2) When rates are not shown for the exact distance, the charge shall be the rate prescribed for the nearest distance. In cases where the haul is equidistant, the charge shall be that for the next higher distance. (3) When one railroad company has two or more routes between given points, the rates shall be based on the shortest route. On joint hauls the lines handling the traffic shall base their rates upon the shortest prac- ticable route having physical connection. (4) For joint hauls over two or more independently controlled railroads under the management of companies operating seventy-five or more miles of railroad within this state, add the following to the straight mileage rates for the total combined distance: Classes3. 123456ABCDEHF Rates. ..5433222222214 In the absence of an agreed basis of division between roads participating in a joint haul, locals shall be used as factors in dividing, after first deducting the cost of transfer, if any, at interchange point. (5) The minimum charge on small shipments shall be for actual weight at the tariff rate, but not less than 25 cents for a haul over one road, or 30 cents for a joint haul over two roads, or 40 cents for a joint haul over three or more roads. ^Unless otherwise provided, the rates for Class F are in cents per barre and for the other classes in cents per 100 pounds. 86 FREIGHT RATES: SOUTHERN TERRITORY 00 < o O n OQ » P9 lO o to o to e-> to C-) to o to o to oo 3 Ferti- lizer Per Ton. Carload 12 Tons CO r^ 00 o O C~J M CO CO ■* •w to •o t* • • • • 1-; ^ -; ^ « — rt rt rt rt rt rt rt '^ 1-4 — ^ •» , 1^ Ol »- M •ffl CO r^ oc o> o fH (M CM CO CO Tt* •^ to tA to o o >-< CJ CM CM CM CM CM CM CM CM • • • • • • • • • • • • • • " • • Cott in Bale Per 1 Poun «» ■ • o < (-1 1 o , O 1 <=> O O o o ° 2 Rough Logs, Carload 40,000 Pounds «» o 1 O to ^ o "^ O ' o 00 ' o> o c> o 1-1 o CM o CO ^ to olasses Hhds. dBbls. er 100 ounds :s? :?; •«»* lO lO to to r^ r^ uO uO 0> at o o rti CM CM CO CO Tl< Irt o o o o o o O o o o o 1-t !-• '^■ "■ "^ "■ "■ S .3 § f^ f^ «» ■^ ^S' ^:s' ::s;:s:s :s^ :s:sj ; (M M M M< ■* to to to lO to to to o o o O O o o o o o o o o o o o o o o o o Lum Carl 30,0 Lb Per Pou e« ■ ^ o o O r-> t-) o o o o o o o o o o o o o o o o lO lO O lO o to o o o o o o o o CJ o o o o o 1^ lO to t^ 00 05 o ,— « i-> <-) o o o <-> o rs o o o o o o o o < o o o o O o O o o o o o o o o o o o C-> o o o t- CO cs o — . — . ■^ to to CO to r^ t^ 00 00 05 O ' ' ' ' rt rt M ' ' «« o o o o o o O o o o- o o o o o o O o o O i3\ Pk o o o o o. o o o o o o o o o o o o o o O C3 z 05 O — ' to (^ 00 OJ o ^ IM CO Tt* Wtl to t^ on o> oi a CM c5 •» c^ CM C^ CM CM CM CM CM CM « Z o o o tr> trs \n o to o o ■o to o o iC to o O to to q' CM eOi in to t^ r^ oo on o o> o o o o T-* »— t r-* » O )J • • * • • • • (!< £- «» ' ! :s' ::? ^:s;:i:; :s;:s:s :^' w M iri to to r- h- r^ 1^ r- r~ 00 O o o O o o o o o o o O o o o o o o o o o, > h>- Of) on Ol o O d o o o o o ,-4 t-4 .-1 _! cq cm'' Q o «r4 o o O o o o o o o 1-t CM "■ "■ l-< " "tl CO t^ en Ci (-> o O ^ -H ^H .-< CM m CO CO CO ■* ■«« O O o o o o r-* *— 1 *— » •— « o p: g e4 * * * ' * * * * " on o o ^H •^ CM CM CO CO ■^ -^ lO to to CO CO r>- r* PQ o O Q o o ^-' '■' •"' ^^ •"• •"• *-" '"' '"' r-4 «» h^ m en en OS O O ^M *-■ CM CM CM CO CO CO -* ■* ■* < o «» o o O o O o o ^ -^ '^ ~'- • • • • • »o CD t^ oo OS 1-1 o ^^ ^H c^l iM CO CO -<1* TJ* to to lO CO to to to o o o O o l-< •^ '^ ^ '"^ ^^ 1-H •^ •"* ^^ ^ ^ %» "to" "cd" t>. *t^' to *-« m ^ ■^ lO OO 00 o OJ OS o ,o lO o o o »-H 6o~Oi'o' " "■ "^ • • • t^ o 1—i rr\ "^ CD r^ <-l ^^ »— 1 ,^ CM CM CM CM CO •"»! to H * o O r-c •1 v-« »-> CM CM CM CM iM CM CM CM Ch a» ^-t CO "t?r nr "f-T "to" eo" FT "oo* ' 00 ,_, CM M ■>«»' Oi o o r~t 1—1 CM CO M o 1^ f-H •-* • * • * ' , /2 6« fy> r-^ m in CO r* OO 05 O VH CM CO Tt* to to t^ 00 o CI CM CO (M CM CM CM CM CO *1 CO r^ OO OS o >-H cq CO Tj< to r- »-* •» I— 1 1— t (M CM a N CO CO CO CO- CO CO •*•■«)< 1 U3 d t 1— t O CM u^ O i« CO TJ* -^ to uo' § s O to o 00 •o 00 o OS I 1. to o OJ o o (4 U o o tH ki kl u k. u (-• ^ kl hi 14 It ii J" 73 ? se ? ^ ^ ^ ^ 0) 5i Si ^ s; > > > > > > o o o o o o o o o o o o o o o o •0 a C9 d d 03 O •7-1 Ti ■n TI T3 ns -V -a -a T) 73 •o •a •a -3 -^3 ■O T3 n rt n n c a a a a d C a n U S 9 c3 05 oj rt cj C3 oj rt rt 0) rt rt a as Oj 03 rt a en 05 CO a) 4) m CJ 3 rn n tn (U o o ai o o o cs o> o> O " ?* eiciciMNcococoeOQQiCoeococow ■t^ooo50'-<«M->jtioto«ot^t^ooooo»o-;c2e2£22'5«22 S S flTsssg S8SS '■^^ U' Sr^ »-• #^« &i <^i #K-> n-i Av #^> /-.^ i-yX <>yX r>B t-;t-Iod»doJoo^r;£j£2 2S:22§«S5SJS3NSSS?5? ui O O O ^ C)C>OOC»OOC>dOOC>000 ooooooooo OOOOoOOOOOOOOOOOC>00000000000 Id (S U3 O a a m "O 09 o CS o p iJ 1 73 o asa a • U •9 d M 5s »4 O "n V h. 03^ oo o 5S •S2 GO O « O -£ a 3 •53 H (30 h u 1^ O do d 0-3 OS Cl«^ m ■i^-m ja ■ij «^ ^ -u •SR T3 a] £ S O i^-a m 5m T3 •« > u S.^ o £•2 ■US 2 > aa a •« M >, 3X1 M Tl « a o*' T) a)X _2 fci -w fl .2 fl a o .2 » ^^ 0) ^22Soooc)Oooooc oooooooooooooc (M(MC^c<)cocococQcoeococococo, ooooooooooQOOoo5g522fi^S2*2SSSS OOOOOOOOOOOO^OOOOOOOOOOiOOOOO o o o o o JO ■4 S o o "5 o v4 U5 s s s «-4 o in" ^ ci IM CO c4 e4 W5 c4 OS o o> o o o o o o 1-4 o o *-H 1-* »-* »-( eo ■^ CO CO ■-H f-l OO »— 1 00 CO CO •* ■^ to 1-1 lO CO 05 s o IM IM IM est C o (M O i-t IM C en ^ o C cq CO s ^ IM UO CO C4 CO CO IM CO r^ M CM OO CM • 00 CM OS Co • eo U9 U5 U5 US CO CO 00 OS «o § CO s CM CO s CO «o s . to. iO to U3 § CO s s s no CO CO CO CO CO CO CO CO 00 CO 1-4 l> Ci 5 8 83^ 3 2 4 4 3 S 40 50 100 150 200 5 4 6 6 4 6 6 4 9 7 7 11 9 8 11 'Governed by the Southern Classification. No maximum rates are established by the Kentucky Railroad Commission, but the rates established by the carriers are subject to a ratification by that board. In Table 9 are given rates between some points for repre- sentative distances, which may be taken as typical of those employed within the state. In Table 10 are given some intrastate and interstate rates which are influenced by competitive conditions. TABLE 10 All-Rail Rates Between Paducah, Ky., and Specified Points in Kentucky and Indiana — / ■ = Between Paducah, Ky. AND Louisville, Ky . . . . Jeffersonville, Ind. New Albany, Ind. Owensboro, Ky. . . Henderson, Ky. Evansville, Ind. Rates IN Cents PER 100 Pounds Except as Noted 1 2 3 4 6 Classes' 6 A B C D E H F« 35 29 25 19 15 13 12 15 13 11 13 15 20 34 29 24 18 13 11 9 11 9 8 13 14 16 'Governed by the Southern Classification. 2Per barrel- INTRASTATE RATES IN SOUTHERN TERRITORY 91 2. Virginia The Railroad Commission of Virginia, in addition to prescribing classification rules and regulations relating to storage, demurrage car service, and the transportation of explosives by carriers, establishes mileage class and commodity rates for carriers within its borders. In prescribing these rates, the commission paid par- ticular heed to the density of the traffic in the various parts of the state. Rates for districts where the traffic was dense were made lower than the rates applicable in other sections of the country. Thus, we find a lower scale of state rates applicable between all stations on the Washington, Danville, and Richmond divisions of the Southern Railway (see Table 11) than is applicable on the Norfolk Division (see Table 12). In Table 11 are given the class rates applicable upon indicated branches of the Southern Railway, while in Table 12 are given similar rates over different divisions of the same railway. The rates set forth in these tables were authorized by the State Corporation Commission of Virginia, December 31, 1913. Specific distance rates are also announced to apply in connection with the Southern Railway upon the fol- lowing commodities: Concrete blocks, grain and mill products, fertilizers, fire wood, logs, bark, lumber, and pulp wood. The list of commodity rates is not nearly as comprehensive as that announced for other lines oper- ating in the state. For example, in Table 13 are indi- cated the number of rates applicable upon the Norfolk and Western Railway. It will be observed from this table that this is in a measure a continuation of the class scale. Representative commodities assigned to these addi- tional groups are set forth in Table 14. 92 FREIGHT RATES: SOUTHERN TERRITORY TABLE 11 Southern Railway Company — Class Rates* applicable as follows: (o) — Betweeil stations on Norfolk Division. (6) — Between stations on Keysville Branch in Virginia (c) — Between any station on Norfolk Division and any station on RicK- mond, Washington or Danville Divisions in Virg'inia. (d) — Between any station on Keysville Branch in Virginia and any sta- tion on Norfolk, Richmond, Washington or Danville Divisions in Virginia. DISTA NCES Per 100 pounds XI Per 100 lbs. Per ton of 2,000 pounds Per carload of 20,000 lbs. 1 15 2 13 3 12 4 10 5 8 6 7 A 6 1 B 7 C 6 D 5 E 8 H 10 F 12 J 8 K L M 75 N P 5 miles and under 4 70 9 00 8 00 7 00 10 and over 6 miles... 18 16 14 11 9 8 7 9 7 6 9 11 14 9 5 75 80 10 00 9 00 8 00 15 and over 10 miles... 22 18 15 13 11 9 8 9 8 7 11 13 16 10 5} 80 85 11 00 10 00 8 50 20 and over 15 miles... 25 21 18 16 14 10 10 11 9 8 14 16 18 11 6 85 1 00 13 00' 12 00 9 00 25 and over 20 miles... 29 25 21 19 17 12 12 12 10,9 17 19 20 12 7 95 1 10 14 00 14 00 10 00 30 and over 25 miles... 33 28 24 22 19 13 13 13 ll'lO 17 20 20 I6 7i 1 00 1 20 15 00 15 00 10 00 35 and over 30 miles... 35 30,25 23,20114 13 14 12 11 17 20 20 17 7i 1 00 1 20 16 00; 15 00 10 00 40 and over 35 miles... 35 30|25 23120114 13 14 12 11 17 20 20 18 7i 1 00 1 20 16 00' 15 00 10 00 45 and over 40 miles... 38 33 28,23 20115 14|15 12 11 20 20 22 18 8 1 10 1 40 18 00 16 00 11 00 50 and over 45 miles... 40 35 30 23 20 1 1 15 14 15 13 1220 1 1 20 22 19 8 1 10 1 40 19 00 16 00 11 00 65 and over 50 miles... 42 38 33'23 20 16 15 16 1311220 20 25 19 9 1 20 1 50 1 20 00 18 00 12 00 60 and over 55 miles... 45 40 3524 21 16 16 18 14 13120 21 26 20 9 1 25 1 50 21 00 18 00 13 CO 65 and over 60 miles... 47 42 35|24 21 16 1619 14 I3I2I 22 27 21 9 1 30 1 60 24 00 19 00 14 00 70 and over 65 miles... 48 43 36 24 21 16 16119 15 I3I2I 23 28 21 9 1 50 1 70 26 00 20 00 15 00 75 and over 70 miles... 52 44 36 24 21 1 17 16 20 16 14 21 23 28 21 10 1 60 1 80 28 00 20 00 16 00 80 and over 75 miles... 54 45'36'24 21 17 16 20 16'l4 21 24 29 21 11 1 70 1 90 30 00 23 00 17 00 85 and over 80 miles... 55 46 36 24 22 17 16 20] 17 14 22 25 32 22 12 1 80 2 00 32 00 23 00 18 00 &0 and over 85 miles... 55 46 36-25 22 17 16;20'l7 14 22 26 32 22 12 1 80 2 10 33 00' 23 00 18 00 95 and over 90 miles... 55 47 .37.25 22 17 1620,18 14 22 27 33 22 12 1 80 2 10 33 00 25 00 20 00 100 and over 95 mile.s... 56 47 37125 1 22 17 17(21 18 15 22 28 35 22 12 1 80 2 10 34 00 26 00 20 00 110 and over 100 miles... 56 47137 26 22 17 17 21 18 15 22 28 35 23 12 1 80 2 10 35 00 26 00 20 00 120 and over 110 miles... 56 48 '38 26 22 17 17 21 18 15 22 28 36 23 12 L 1 80 2 10 36 00 26 00 20 00 130 and over 120 miles. . - 57 48 39 26 22 18 18 21 18 15 22 29 36 23 12 1 80 "2 10 39 00 26 00 20 00 140 and over 130 miles... 57 48i39 27 22 18 18 21 18 15 22 29 36 24 12 1 80 2 10 40 00 26 00 20 00 150 and over 140 miles... 58 48 40 28 22 18 18 21 18il5 22 29 36 24 12 1 80 2 10 40 00 26 00 20 00 160 and over 150 miles... 59 49 40 29 22 18 18 21 18 1 t 15 22,29 36 24 12 1 80 2 10 40 00 26 00 20 00 170 and over 100 miles... 59 50 41 29'22 18 18 21 19 15 22 2!t 37 25 12 1 80 2 10 40 00 26 on 20 00 180 and over 170 miles... 59 .5041 29;22 18 18 21 19 15 22 29 37 25 12 1 80 2 10 40 00 28 06 20 00 190 and over 180 miles... 59 50!41 29 22 18 18 21/19 15 22 29 37 25 12 1 80 2 10 40 00 28 00 21 00 200 and over 190 miles... 59 50 41 29 22 18 18 21 19 15 22 29 37 26 12J 2 00 2 30 42 00 28 00 21 00 210 and over 200 miles... 59 50 41 29 22 18 18 21 19 15 22 29 37 26 m 2 00 2 30 42 00 28 00 21 00 220 and over 210 miles... 60 51 41 29 23 18 18 22 19 17123 29 37 26 14. 2 00 2 30 42 00 28 00 21 00 230 and over 220 miles... 62 52 41 29 23 19 19 23 19 17|23 29 37 26 14 2 00 2 30 42 00 28 00 22 CO 240 and over 230 miles... 63 52 42 30;25 19 19 23 19 17125 30 38 26 14 2 00 2 30 42 00 28 00 22 00 250 and over 240 miles.. i 65 54 42 31 27 20 20 24 20 18 27 31 40 26 14 2 10 2 30 44 00 30 00 23 00 260 and over 250 miles... 67 56 44 33 29 21 21 25 22 18 29 33 43 28 15 2 10, 2 40 44 00 31 00 24 00 270 and over 260 miles... 69 58 46 35 30 22 22 25 '22 20 30 35 45 29 16 2 20 2 40 46 00 32 00 25 00 280 and over 270 miles... 72 60 48 36 31 24 24 26124 20 31 36 46 30 16 2 25 2 50 46 00 32 00 26 00 290 and over 280 miles... 74 62 48 37 32 26 26 27124 20 32137 48 31 17 2 30 2 50 47 00 33 00 26 00 300 and over 290 miles... 75 62 50 37 32 27 26 27 24 21 32 37 49 31 17 2 30 2 60 48 00 34 00 27 00 320 and over 300 miles... 76 64 52 40 34 28 28 29 26 21 34 40 52 32 18 2 30 2 60 49 00 35 00 28 00 340 and over 320 miles... 79 66 53 41 37 29 29 30^ 22 37 41 52 34 19 2 40 2 80 50 00 36 00 29 00 360 and over 340 miles... S2 68 55 42 38 30 30 3126 22 38 42 53 35 19 2 50 2 90 52 00 37 00 31 00 380 and over 360 miles... 53 68 55 42 39 31 31 32 27 22 39 42 53 36 20 2 60 3 00 64 00 38 00 31 00 400 and over 380 miles... 84 70 57 44 39 32 32 32 27 23 39 44 55 37 20 2 70 3 10 3 2d a4 00 39 00 31 00 Over 400 miles 86 72 57 45 40 S2 32 33 w 24 40 45 56 38 22 2 80 55 00 39 00 32 00 » 1 l__ •These rates were authorifed by the State Corporation Commission of Virginia and are governed by the Virginia Classification with Exception Sheet No. 1 thereto. INTRASTATE RATES IN SOUTHERN TERRITORY 93 TABLE 12 Southern Railway Company — Class Rates^ applicable as follows: (a) — Between all stations on the Washington, Danville. and Richmond Divisions in Virginia, except Keysville Branch. DISTANCES Per 100 pounds 5 £1 Per 100 lbs. Per ton of 2,000 pounds Per carload of 20.000 lbs. 1 12 2 10 3 8 4 6 5 5 6 4 A 4 B 4 C 4 D 4 E S F 8 H 6 J 6 K L M N O P 6 miles and under 3 50 60 7 00 7 00 5 00 10 and over 5 miles... 16 13 11 9 7 6 6 6 6 6 7 12 9 8 4 60 70 8 00 8 00 6 00 20 and over 10 miles... 20 16 13 11 9 8 7 8 7 7 9 14 11 10 6 70 90 12 00 9 00 7 00 30 and over 20 miles... 24 19 15 13 11 10 8 10 8 8 11 16 13 12 6 80 1 00 14 00 10 00 9 00 40 and over 30 miles... 27 22 17 15 13 10 8 10 9 8 13 18 15 14 6 90 1 10 15 00 11 00 9 00 60 and over .40 miles... 30 24 19 16 14 10 8 10 10 8 14 20 16 14 6 1 00 1 20 16 00 12 00 10 00 60 and over 50 miles... 33 26 21 17 15 11 9 11 11 9 15 22 17 15 7 1 00 1 20 16 00 13 00 11 00 70 and over 60 miles... 36 28 23 18 16 11 9 12 12 9 16 24 18 15 7 1 00 1 20 16 00 14 00 12 00 80 and over 70 miles... 39 30 25 18 16 11 10 13 12 10 16 24 18 16 8 1 10 1 30 18 00 16 00 13 00 90 and over 80 miles... 40 32 27 18 16 11 11 14 12 10 16 24 18 17 8 1 20 1 40 19 00 17 00 14 00 lOOandover 90 miles... 40 34 27 18 16 11 11 15 12 10 16 24 18 18 8 1 30 1 50 19 00 17 00 15 00 110 and over 100 miles. . . 40 35 27 18 16 11 11 16 12 10161 24 18 18 9 1 30 1 50 22 00 18 00 16 00 120 and over 110 miles... 42 36 28 19 17 12 12 17 13 11 17 26 19 18 91 1 30 1 50 25 00 22 00 16 00 130 and over 120 miles.. - 44 37 29 19 17 13 13 17 14 12 17 28 19 18 n 1 30 1 50 28 00 22 00 16 00 140 and over 130 miles... 46 38 31 21 17 14 14 17 14 1217 28 21 19 95 1 40 1 60 30 00 22 00 16 00 150 and over 140 miles... 47 40 33 23 17 14 14 17 14 12 17 28 23 20 9i 1 50 1 70 32 00 22 00 16 00 160 and over 150 miles... 48 41 33 23 18 14 14 18 14 12 18 28 23 20 9i 1 55 1 75 33 00 22 00 16 00 170 and over 160 miles... 49 42 33 23 18 15 15 18 14 12 18 28 23 21 13 1 55 1 75 33 00 23 00 16 00 180 and over 170 miles... 49 42 33 23 18 15 15 18 15 13 18 30 23 22 10 1 55 1 75 34 00 24 00 18 00 190 and over 180 miles... 50 43 33 23 19 16 15 19 16 14 19 1 32 23 22 Hi 1 60 1 75 34 00 25 00 18 00 200 and over 190 miles... 52 44 34 24 20 16 16 20 16 15 20 32 24 24 ni 1 65 1 75 35 00 25 00 18 00 210 and over 200 miles... 54 45 35 25 21 16 16 20 16 15 21 32 25 25 Hi 1 70 1 75 35 00 25 00 18 00 220 and over 210 miles... 56 46 36 26 22 17 17 21 17 15 22 34 26 25 111 1 70 1 75 35 00 25 00 18 00 230 and over 220 miles... 57 47 37 26l23 17 17 22 17 15 23 34 26 25 lU 1 75 1 75 35 00 25 00 19 00 240 and over 230 miles... 58 1 48 38 27 24 18 18 23 17 15 24 1 34 27 25 111 1 75 1 75 35 00 25 00 19 00 250 and over 240 miles... leo 49 39 S8 25 19 19 23 18 16 25 36 28 26 12 1 80 1 80 36 00 26 00 20 00 260 and over 250 miles... 62 51 41 30 27 21 21 23 19 17 27 38 30 27 13 1 80 1 85 37 00 27 00 21 00 270 and over 260 miles... 63 52 42 31 28 22 22 24 20 18 28 40 32 28 14 1 85 1 90 38 00 28 00 22 00 280 and over 270 miles... 64 53 43 32 28 23 23 24 20 18 28 40 32 28 14 1 85 1 90 39 00 28 00 22 00 290 and over 280 miles... 65 54 43 33 29 24 24 25 21 19 29 42 33 29 15 1 90 1 95 40 00 29 00 23 00 300 and over 290 miles... 66 55 44 33 30 24 24 25 21 19 30 42 33 29 15 1 90 1 95 41 00 29 00 23 00 310 and over 300 miles... 67 56 45 34 31 25 25 26 22 20 31 44 34 30 16 1 95 2 00 41 00 30 TO 24 00 320 and over 310 miles... 68 57 46 35 32 26 26 27 23 21 32 46 35 30 16 1 95 2 00 42 00 3. '00 25 00 330 and over 320 miles... 70 58 47 36 33 27 27 28 23 21 33 46 36 31 17 2 00 2 05 42 00 31 00 26 00 350 and over 330 miles... 72 59 48 37 34 28|28 28 23 21 34 46 37 33 17 2 05 2 40 46 00 32 00 27 00 375 and over 350 miles... 74 60 50 38 35 29 29 29 23 21 35 46 38 34 18 2 15 2 60 48 00 33 00 28 00 400 and over 375 miles... 76 62'51 39136 29 29 30 24 21 36 48 39 35 18 2 30 2 80 49 00 34 00 28 00 425 and over 400 miles... 178 64 52 40;36 30 30 30 25 22 36 50 40 36 20 2 40 2 85 49 00 34 00 29 00 450 and over 425 miles... 180 66 53 41 37 30 30 31 25 22 37 50 41 36 20 2 40 2 85 51 00 35 00 30 00 475 and over 450 miles... 81 67 54 41 38 31 31 32 26 22 38 51 41 37 20 2 45 2 85 53 00 36 00 30 00 500 and over 475 miles... 82.68 55 42 38 3131 32 26 22 38 51 42 37 20 2 45 2 85 54 00 37 00 31 00 'These rates were authorized by the State Corporation Commission of Virginia and are governed by the Virginia Classification with Exception Sheet No. 1 thereto. 94 FREIGHT RATES: SOUTHERN TERRITORY TABLE 13 The Norfolk and Western Railway Company — Commodity Rates* DISTANCES 6 miles and under.. 10 and over 5 miles. . 11 miles 12 miles 13 miles , 14 miles , 15 miles , 16 miles 17 miles 18 miles 19 miles 20 miles 25 and over 20 miles. 30 and over 35 and over 40 and over 45 and over 50 and over 55 and over 60 and over 65 and over 70 and over 75 and over 80 and over 85 and Over 90 and over 95 and over 100 and over 25 miles. 30 miles. 35 miles. 40 miles. 45 miles. 50 miles. 55 miles. 60 miles. 65 miles. 70 miles. 75 miles. 80 miles. 85 miles. 90 miles. 95 miles. 110 and over 100 miles.. 120 and over 110 miles.. 130 and over 120 miles.. 140 and over 130 miles., 150 and over 140 miles.. 160 and over 150 miles.. 170 and over 160 miles.. 180 and over 170 miles.. 190 and over 180 miles.. 200 and over 190 miles.. 210 and over 200 miles.. 220 and over 210 miles.. 230 and over 220 miles.. 240 and over 230 miles.. 250 and over 240 miles.. 260 and over 250 miles.. 270 and over 260 miles.. 280 and over 270 miles.. 290 and over 280 miles.. 300 and over 290 miles.. 310 and over 300 miles.. 320 and over 310 miles.. 330 and over 320 miles.. 340 and over 330 miles., aao and over 340 miles.. In cents per 100 pounds aa BB CC DD EE FF GG HH 3 3 5 6 5 3 6 U 3 3 5 7 5 3 6 H 4 4 6 8 5 34 8 1.9 4 4 6 8 5 34 8 2 4 4 6 8 5 34 8 2 4 4 6 8 5 34 8 2 4 4 6 8 5 34 8 2 4 4 6 8 5 34 8 2 4 4 6 8 5 34 8 2 4 4 6 8 5 34 8 2 4 4 6 8 5 3i 8 2 4 4 6 8 5 34 8 2 5 5 7 9 5 4 10 2 5 5 7 9 5 4 10 2 5^ 5* 8 10 5 5 11 2h 5h 5^ 8 10 5 5 11 24 6 6 8* 11 6 5 12 3 6 6 84 11 6 5 12 3 6^ 6^ 9 12 6 5J 13 34 6^ 64 9 12 6 54 13 34 7 7 94 13 64 6 14 34 7 7 94 13 64 6 14 3i 7i 7i 10 14 64 64 15 4 7^ n 10 14 64 64 15 4 8 8 104 144 7 7 16 4 8 8 lOi 144 7 7 16 4 8f 84 U 15 8 74 17 4 Si 84 11 15 8 74 17 4 9 9 114 154 9 74 18 44 9^ 94 12 16 9 74 19 44 10 10 124 164 9 9 20 5 10^ 104 13 17 104 9 21 5 11 11 134 174 11 10 22 5 IH 114 14 18 111 10 23 54 12 12 I4i 184 lU 11 24 54 12i 124 15 19 114 l/ 25 54 12^ 13 15 19 12 26 54 13 134 15 19 12 12 27 54 13 14 15 19 124 12 28 6 131 144 16 20 m 12 29 6 13^ 144 16 20 12i 12 29 6 13^ 144 16 20 13 12 29 64 13i 144 16 20 13 12 29 64 131 15 16 20 13 12 30 64 13^ 15 16 20 13i 13 30 7 13^ 15 16 20 134 13 30 7 m 15 16 20 134 13 30 7 I'ii 15 16 20 14 13 30 74 14 154 16 20 14 13 30 74 14 154 16 20 14 13 30 74 14 154 16 20 14 13 30 74 14 154 16 20 144 13 30 74 14 154 16 20 144 13 30 74 II a^ 2 2S 3' 3 3 3 3 3 3 3 3 3 3 JJ 80 80 90 90 90 90 90 90 90 90 90 90 1 00 KK Per ion 2.000 poundo I.L MM NNjOO PP QQ IJR 7. 80 85 85 85 85 85 90 90 90 90 90 95 3 1 00 1 00 3h 1 10 1 05 34 1 10 1 10 34 1 15 1 15 34 1 15 1 20 1 20 1 20 1 25 1 25 1 30 1 30 1 35 1 35 1 40 1 40 1 45 1 50 1 55 1 60 1 65 1 70 1 75 1 80 1 85 1 85 1 90 1 90 1 95 1 95 1 40 1 40 1 40 1 40 1 40 50 2 50 2 50 80 90 90 90 90 90 90 90 90 90 90 1 00 00 20 1 20 1 40 1 40 1 50 1 50 1 50 1 60 1 60 1 60 1 60 1 60 1 60 60 1 70 1 70 80 1 80 90 90 00 00 10 20 2 30 2 40 2 50 1 70 2 85 1 70!2 90 1 70:3 00 1 70l3 10 2 00 1 70 2 15 2 15 2 20 2 20 2 25 180 1 80 1 80 1 80 1 80 3 20 3 30 3 40 3 50 3 60 3 70 3 80 3 90 4 00 4 10 4 20 35 35 38 42 46 50 54 57 60 64 68 70 75 85 95 1 05 1 15 1 15 1 25 1 25 1 35 1 35 1 45 1 45 1 55 1 55 1 65 1 65 1 70 1 75 1 80 1 85 1 90 1 95 2 00 2 05 2 10 2 15 60 2 70 2 80 2 90 2 90 3 00 3 00 3 10 3 10 3 20 35 35 38 42 45 45 45 50 50 50 50 50 55 60 65 70 75 75 80 80 85 85 95 95 1 00 1 00 1 05 1 05 1 10 1 15 1 20 1 25 1 30 1 35 1 40 1 45 1 50 1 50 1 50 1 50 1 50 1 50 1 50 1 50 1 50 1 50 1 50 1 50 1 50 1 50 1 50 1 50 35 35 38 42 46 50 54 67 60 64 68 70 75 02 14 26 38 38 50 50 62 62 74 1 74 1 86 1 86 1 98 1 98 2 04 2 10 2 16 2 22 2 28 60 60 70 70 70 70 70 70 70 70 70 70 80 80 9jn 90 1 00 1 00 35 25 35 25 38 30 421 30 45 30 45 30 45 30 50 30 SO 51 54 56 60 82 91 1 01 1 10 1 10 1 lOU 20 1 lO'l 20 1 20 1 30 1 20 1 30 1 25 1 39 1 25 1 30 1.30 1 35 1 35 1 39 1 49 1 49 1 58 1 58 1 40 1 63 1 45 1 68 1 50 1 73 1 5511 78 1 60 1 82 1 65 1 87 1 70 1 92 1 75 1 97 1 80 2 02 1 85 2 06 2 64|1 85'2 11 2 64 2 76 2 88 3 00 3 60 3 60 3 72 3 72 1 5013 84 1 90 2 11 1 95 2 21 2 00 2 30 2 05|2 40 10 2 50 15*2 59 20 2 69 25|2 78 30 2 78 35 2 88 40 2 88 4512 9& 50 2 9S 55I3 07 30 30 30 30 35 35 40 40 45 45 60 50 55 65 60 60 65 65 70 70 75 75 80 80 85 83 90 90 05 95 1 00 1 00 1 05 1 OS 1 10 1 10 1 15 1 IS 1 20 1 20 1 25 1 25 1 2S 1 25 1 30 iTheae rates were authorized by the State Corporation Commission of Virginia. INTRASTATE RATES IN SOUTHERN TERRITORY 95 TABLE 14 Special Commodity Classification Commodity Class Commodity Class Afihfia. coal MN 00 GG HH CC DD EE KK Blocks, paving II Rone dust. C. L Brick, C. L LL Building material, brick and woodpn . . Cement, C. L FF Gravel, C. L RR Cinders, C. L Pig iron, C. L Lime, agricultural, L. C. L. . . Lumber, oak, hemlock, soruce. C. L JJ Iron and steel articles as per special list, C. L L C L QQ AA Felt, C. L Logs, except oak, hemlock, and spruce Wood, fire, C. L BB A very large per cent of the earnings of the Norfolk and Western Railway is derived from its coal traffic. It is interesting to note the scale of rates which has been provided by the commission for this commodity over this railroad. These rates are reproduced in Table 15. TABLE 15 Norfolk and Western Railway Company — Commodity Rates^ coal, carloads Minimum weights: On Anthracite, 30,000 pounds; on Bituminous, 40,000 pounds. Per ton 2,000 pounds distances Rate distances Rate 10 miles and under $ 55 60 75 95 1 10 1 25 1 35 1 45 1 50 1 55 l"^60 1 60 1 65 1 65 1 70 1 75 1 75 1 80 180 and over 170 miles $1 85 15 and over 10 miles 20 and over 15 miles 190 and over 180 miles 200 and over 190 miles 1 85 1 90 30 and over 20 miles 210 and over 200 miles 1 90 40 and over 30 miles 220 and over 210 miles 1 95 50 and over 40 miles , 230 and over 220 miles . 1 95 60 and over 50 miles 70 and over 60 miles 240 and over 230 miles 250 and over 240 miles 1 95 1 95 80 and over 70 miles 260 and over 250 miles 2 00 1 90 and over 80 miles 270 and over 260 miles . 2 00 loo and over 90 miles 110 and over 100 miles 280 and over 270 miles 290 and over 280 miles 2 05 2 10 120 and over 110 miles. 300 and over 290 miles 2 10 130 and over 120 miles 140 and over 130 miles 310 and over 300 miles. 2 15 320 and over 310 miles 2 15 150 and over 140 miles. ...'!.... 160 and over 150 miles 33D and over 320 miles 340 and over 330 miles 350 and over 340 miles 2 15 2 15 2 20 170 and over 160 miles 'These rates were authorized by the State Corporation Commission of Virginia. 96 FREIGHT RATES: SOUTHERN TERRITORY 3. South Carolina The Railroad Commission of South Carolina not only prescribes regulations and rules concerning transporta- tion in general, demurrage, storage, milling in transit, and exceptions to the Southern Classification, but it also prescribes class and commodity rates applicable within the state of South Carolina. The commission prescribes a standard class tariff and commodity tariffs for a num- ber of other commodities. These commodity tariffs are TABLE 16 Freight Rates Applying on Classified Traffic in South Carolina^ Centb peb 100 Pounds Cents Cents PER PER Bbl. 100 L BS. Miles Classes^ 1 2 3 4 5 6 A B C D E H F J K 5 12 11 9 7 6 6 6 6 5 4 6 8 10 6 6 20 24 22 19 16 13 12 10 12 8 7 13 14 15 10 8 40 36 32 28 26 19 18 13 16 10 9 19 24 19 19 9 100 55 48 39 34 26 23 17 21 15 13 26 34 30 28 12 200 67 57 49 44 36 27 21 24 21 16 34 42 42 37 14 300 77 67 59 54 46 32 22 27 24 19 39 47 48 42 16 'All Joint rates are 80 per cent of the local rates of the individual line. "Governed by the Southern Classification. TA\pLE 16— Continued Freight Rates Applying on Classified Traffic in South Carolina* Miles Cents per Ton, 2,000 Lbs. Dollars per Carload, 20,000 Lbs. Cents peb 100 Lbs. Classes^ L M NOP R U 5 20 40 100 200 40 80 60 115 80 140 120 205 170 265 220 320 10 6 6 13 11 9 17 13 11 27 19 12 M 33H 2514 14Ji 38H 30 17M 5 6 8 8 10 12 14 15 18 18 300 21 22 •AH joint rates are 80 per cent of the local rates of the individual line. ^Governed by the Southern Classification. INTRASTATE RATES IN SOUTHERN TERRITORY 97 published as special tariffs and are applicable within the state except in cases where tariffs for individual roads take precedence. Table 16 shows the local mileage rates on classes prescribed by the commission. Joint rates are 20 per cent of the sum of the local rates. These rates are maximum rates only and the car- riers may make lower rates provided no discrimination is caused thereby. Table 17 shows the rates on a certain number of com- modities for certain distances. This table was com- piled from the several commodity tariffs prescribed by the commission. The special commodity rates prescribed for individual carriers are sometimes lower and some- times higher than these rates which have general appli- cation. On the lines of dense traffic, the rates are lower than on the lines where traffic is not so dense. TABLE 17^ Representative Rates Applicable Upon Specific Commod- ities IN South Carolina^ Lumber Fertilizers Cotton Cord Wood Cotton Starch Dollars per Cents per Cents per Cents per Piece Goods Cents per Miles C. L. of Ton of 100 Lbs. Cord Cents per 100 Lbs. 24,000 Lbs. 2,000 Lbs. Min. C. L. 20,000 Lbs. Min. C. L. 10 Cords 100 Lbs. Min. C. L. 20,000 Lbs. 5 5 75 7 40 9 9 20 8 95 10 50 12 13 40 10 125 18 70 14 17 100 13J 185 26 105 20 20 200 16J 260 35 28 23 300 19 i 275 43 30 25 'The rates in this table are governed by the Southern Classification. 'All Joint rates are 80 per cent of the local rates of the individual line. 4. Alabama The state of Alabama does not prescribe class rates. It does, however, prescribe certain mileage rates on a number of commodities, which rates may not be exceeded by the carriers. 98 FREIGHT RATES: SOUTHERN TERRITORY In Tables 18 and 19 are given representative class rates applying between points in Alabama. These rates are announced by the carriers. TABLE 18 Class Rates from Birmingham, Ala., to Alabama Common AND Local Points From Birmingham. Ala., to R ATE6 I IN Cen TS PER 100 Pounds Except as Noted IN Alabama 1 2 3 4 5 6 Classesi A B C D E H F3 Sylacauga 39 32 30 22 47 41 36 31 52 45 40 32 29 25 22 19 37 32 28 25 50 44 38 29 45 42 36 34 62 63 47 39 46 40 38 32 50 44 38 29 72 62 54 49 78 67 67 52 80 69 58 53 65 52 46 41 55 45 40 35 91 80 71 56 85 74 62 50 64 55 50 39 67 49 45 35 74 62 52 42 94 81 77 61 50 43 36 30 64 64 46 37 50 46 38 29 65 45 40 35 74.7 65.7 59.4 49 87.3 74.7 65.7 52 82 68 60 50 70 60 54 47 47 40 33 26 66 48 43 38 66 67 50 45 69 58 51 38 20 16 27 22 25 20 18 17 24 22 24 19 30 19 36 301 25 20 24 19 44 38 47 43 48 44 35 30 30 25 46 39 41 35 31 24 28 22 34 27 52 42 24 20 28 26 24 21 30 25 41 34 43 37 42 35 421 32 24 191 33 28 40 37 30 26 12 16 18 24 20 21 17 17 22 22 18 17 18 19 29 30 20 21 18 17 31 35 43 43 38 42 30 30 25 25 33 34 28 31 20 24 16 22 24 30 33 34 15 17 29 31 18 17 25 25 31 32 32.4 34 28 28 31 32 18 19 26 28 37 37 19 18 13 9 20 22 14 11 24 27 12 11 27 30 11 9 17 17 12 10 22 22 15 11 27 19 13 12 30 30 18 16 321 30 12 11 27 30 15 11 27 19 20 16 40 40 22 17 43 43 22 17 44 44 25 20 35 41 20 18 30 35 24 20 46 48 24 20 41 42 15 14 30 34 14 13 27 31 24.3 20 35 45 24 20 521 51 17 13 23 28 26 21 28 37 16 13 28 32 20 18 30 35 23.4 19.8 43 39 26.122.5 44.146 24 22 40 45 23 19 411 40 12 10 211 25 16 13 31 31 19 15 37 37 18 13 21 45 26 Sycamore^ 28 Talladega 24 Calera 22 ThorsbyJ 24 Montgomery 22 Wellington 26 Woodruffs 36 Anniston 24 Selma 22 Andalusia 40 Pera2 44 Samson 44 Huntsville 50 Holly wood^ 40 Ozark 41 Troy 41 Eufaula 30 Opelika 28 Franklin^ (Macon Co.) Dothan 44 41 Tuscumbia 26 Leighton^ 52 Decatur 30 Elko2 40 Whitehall^ 42 Roba 52 2 Hurtsboro 46 Billingsley 44 Tuscaloosa 24 Chinneby 34 Georgiana 38 Mobile 31 iGoverned by the Southern Classification. 'Intermediate points. 'Per barrel. 5. Mississippi The state of Mississippi does not prescribe rates for the carriers, but it modifies or approves tariffs promul- gated by the carriers upon traffic moving within its borders. The state once prescribed classification of freight, but this has been supplanted by the Southern INTRASTATE RATES IN SOUTHERN TERRITORY 99 TABLE 19 Class Rates from Mobile, Ala., to Alabama Common and Local Points From Mobile, Ala., to THE FOLLOWINQ PoiNTa IN Alabama Ida! Thorsby2 Montgomery Akron Brown* Selma Eutaw* Stewart' Prattville Robas Hurtsboro Thompson' Union Springs Youngblood' Troy Red Level' Andalusia Pera' Samson' Aired' Perdido' Whitehall' Ozark Brundidge' Jonesville' Three Notch Road'. . Eufaula Guerry ton' Seale' Motts' Opelika Franklin' Dothan Newton' Barnes Cross Roads'. Hartford' Florala Hacoda' Huntsville Hollywood' Birmingham Moragne' Attalla Tuscaloosa Shiras' Fleming' York Pell City Eden' McFall' Rates in Cents per 100 Pounds Except as Noted Classes' 1 2 3 4 5 6 A B C D E H F3 72 62 54 49 44 40 37 37 22 19 40 40 44 72 62 54 49 44 40 38 40 22 17 40 40 44 50 40 30 24 20 20 16 20 14 12 24 19 24 79 69 58 45 42 31 20 23 16 12 39 25 24 72 62 53 45 38 33 28JI 31 22 19 43 41 42 60 40 30 24 20 20 15 20 14 12 24 19 24 79 69 58 45 42 31 20 23 24 20 39 19 48 62 50 38 32 28 28 20 26 19 17 29 24 34 92 76 62 47 39 36 30 37 27 24 43 46 50 98 80 66 50 42 38 31 38 29 25 46 49 60 88 70 58 45 39 35 30 36 25 22 43 41 46 90 73 60 46 40 36 31 37 25 22 44 43 52 88 74 62 54 44 39 34 38 27 24 43 43 50 88 69 58 48 41 37 30 33 24 21 46 45 48Jk 62 53 47 42 37 34 34 34 18 15 34 34 36 66 57 50 45 40 37 37 37 19 15 37 37 38 72 62 54 49 44 37 37 37 20 16 40 40 40 104 86 70 57 47 41 35 41 31 25 51 45 58 32 27 24 21 20 19 19 19 11 9 19 19 22 78 66 54 44 37 33 28 35 24 21 42 39 44 88 69 58 48 41 37 30 33 24 21 45 48 48;^ 98 84 69 59 49 44 39 41 30 26 48 48 56 101 83 68 55 46 40 33 40 30 26 50 50 56 95 78 64 48 41 37 32 39 27 24 46 46 50 89 76 67 51 45 34 20 27 20 16 41 36 32 98 80 66 53 46 38 31 38 29 25 49' 48 64 100 84 70 54 45 38 31 42 31 26 53 37 64 100 84 74 54 47 40 29 42 31 24 54 46 54 89 76 67 51 45 34 20 27 20 16 41 36 22 85 72 58 46 39 35 30 37 25 22 44 46 46 88 69 58 48 41 37 30 33 24 21 46 48 4Hh 112 94 76 66 65 48 43 43 32 27 52 54 60 118 97 82 63 52 45 33 43 33 28 69 66 68 120 100 80 69 58 51 46 45 38 31 71 64 70 72 62 54 49 44 40 40 40 21 17 40 40 42 120 100 78 69 58 53 46 48 38 24 62 61 70 79 72 55 41 37 29 20 27 20 16 32 36 32 115 103i 82 63i 65 44 36 43 32 27 50 584 55 79 69 68 45 42 31 20 23 16 12 39 25 24 72 62 54 49 44 38 26 33 21 19 40 40 42 84 73 64 49 43 32 20 27 20 16 39 42 32 79 69 58 45 42 31 20 23 22 16 39 27 36 76 65 56 51 46 37 26 29 23 20 42 33 46 79 69 68 45 42 31 20 23 30 28 39 19 54 79 69 68 45 42 31 20 23 16 12 39 25 24 100 86 76 55 52 42 33 39 27 22 62 53 46 100 86 76 65 52 46 334 37 25 20 62 47 42 94 83 74 50 48 37 32 40 28 23 52 64 48 •Governed by the Southern Classification. 'Intermediate points. 'Per barrel. Classification and by exceptions applicable to the carriers within the state of Mississippi. The rates of the several 100 FREIGHT RATES: SOUTHERN TERRITORY carriers are revised and approved by the Eailroad Com- mission of Mississippi. Tables 20 and 21 show class rates which were promulgated by the Yazoo & Missis- sippi Valley Railroad and approved and adopted by the Railroad Commission of Mississippi. Different tariffs apply over the lines within the state, but the rates are usually quite similar. The rates along the Mississippi River are somewhat less than the interior rates. TABLE 20 Local Class Rates Applicable Between Stations on the Yazoo & Mississippi Valley Railroad in Mississippi Miles r, and les and ov g 10 er 5 15 10 ?0 15 ?5 20 an 25 35 40 ' 30 35 45 40 50 75 ' 45 70 ino 95 130 • 120 150 ?00 ' 140 ' 190 ?50 ' 240 300 ' 290 Rates in Cents per 100 Pounds Except as Noted Classesi 1 2 3 4 5 6 A B C D E H F2 20 17 14 12 10 9 7 8 11 6 9 . . 18 25 21 18 15 13 11 9 10 124 6 11 . . 20 30 25 21 18 15 13 11 12 14 7is 13 . . 22 33 28 24 20 17 15 12 14 15 9 15 . . 23 36 31 26 22 19 17 13 15 16 10 17 . . 24 39 34 28 24 21 18 14 16 16 10 18 . . 24 42 36 30 26 22 19 15 17 17 11 20 . . 26 45 38 32 28 23 20 16 17 17 11 21 . . 27 48 40 34 _29 24 21 16 18 18 11 22 . . 28 50 42 35 30 25 22 17 19 18 11 23 . . 29 56 47 40 35 28 25 19 21 21 14 26 . . 34 60 52 44 37 30 27 20 23 22i!t 16 28 . . 36 64 55 46 39 32 29 22 24 23* 174 29 . . 38 66 57 47 40 33 30 22 25 24 174 30 . . 39 70 60 49 42 35 31 23 26 25ii 20 31 . . 41 72 61 51 43 36 32 24 27 27 21 32 . . 44 72 61 51 43 36 32 24 27 29 23 32 . . 46 ^Governed by the Southern Classification. 'Per barrel. 6. Louisiana The state of Louisiana, being divided by the Missis- sippi River, is rather peculiar in its control of freight rates. The part of the state lying west of the river is governed by the Western Classification, which classifica- tion is approved by the Railroad Commission of Louisi- ana. The Southern Classification and exceptions thereto govern the shipments moving wholly within the part of Louisiana lying east of the Mississippi River. The state INTRASTATE RATES IN SOUTHERN TERRITORY 101 TABLE 21 Joint Class Rates Applicable Between Stations on the Yazoo & Mississippi Valley Railroad and its Connections in Mississippi Miles 5 and and less. over 10 5 15 10 20 15 25 20 35 30 40 35 45 40 50 45 75 70 100 95 130 120 150 140 200 190 250 240 300 290 Rates in Cents per 100 Pounds Except as Noted Classes' 1 2 3 4 5 6 A B C D E H F» 18 15 13 11 9 8 6 7 10 5 8 . . 16 22J 19 16 13^ 12 10 8 9 11 5 10 . . 18 27 22J 19 16 13^ 12 10 11 13 7 12 . . 20 30 25 22 18 15 134 11 13 134 8 134 . . 21 32 28 23 20 17 15 12 134 14 9 15 . . 22 38 32 27 23 20 17 13it 16 15 10 18 . . 224 40i 34 29 25 21 18 14 15 15 10 19 . . 23 43 36 31 26 22 19 14 16 16 10 20 . . 25 44 37 31 26 22 20 14 16 16 10 20 . . 254 48 40 34 30 24 21 16 18 18 12 22 . . 29 51 44 37 31 25i 23 17 20 19 14 24 . . 31 53 46 38 32 26 24 18 20 19 14 24 . . 31 53 46 38 32 26 24 18 20 19 14 24 . . 31 56 48 39 34 28 25 18 21 20 16 25 . . 33 58 49 41 34 29 26 19 22 22 17 26 . . 35 58 49 41 34 29 26 19 22 23 18 26 . . 37 'Governed by the Southern Classification. 2Per barrel. does not prescribe any classification of its own, but approves the application of these two classifications to the two sections of the state. The commission is likewise vested mth the control over the water carriers operating within the state and prescribes both class and commodity rates on freight shipped between points on the Missis- sippi Eiver by boat. The commission, however, in its last report (1914), stated as follows: Steamboat transportation on the waterways in the State of Louisiana continues its gradual decline and has become of such small importance that it may be said to be disappearing, except for relatively short distances on only a few of the navigable streams. The Commission has always been ready to grant every opportunity to the boats to increase their resources, but the traffic has not increased, and the indications do not point to any improvement in the immediate future. In so far as rail traffic is concerned, the commission revises and approves all tariffs issued by the rail carriers naming rates for the transportation of freight within its 102 FREIGHT RATES: SOUTHERN TERRITORY borders. Table 22 shows the class rates on freight mov- ing between local stations on the New Orleans & North- eastern Railroad in Louisiana, Water carriers have their rates approved in the same manner. TABLE 22 Distance Rates Applicable on the New Orleans & North- eastern Railroad in Louisiana MiLEB R. VTE8 IN Cents per 100 Pounds Except as Noted 1 2 3 4 5 Classes' 6 A B c D e H F" 5 20 36 48 60 64 16 30 40 60 52 14 12 24 18 32 24 40 30 42 32 10 15 20 25 27 7 12 15 19 21 12 15 17 20 22 13 16 20 22 24 10 14 16 17 18 7 10 12 14 15 12 20 24 26 26 14 20 20 24 28 30 32 32 40 35 34 45 35 36 'Governed by the Southern Classification. *Per barrel. CHAPTER VIII rates on inland waterways 1. Character of Service Having now set forth the rail rates applicable within the several states comprising Southern Territory, it is well to consider, before passing on to the interstate adjustment, some of the rates applicable upon the more important waterways within this territory, as the active or potential competition of the water routes fixes in a great measure the maximum rates which the rail lines can exact. Water rates, except in instances where the operating companies are under the jurisdiction of the Interstate Commerce Commission, are not stable. For this reason, due allowance should be made for any discrepancy in the rates given in this treatise which may be developed from actual experience at some subsequent time. At the present time, in so far as the Interstate Com- merce Commission is concerned, the water lines which are operated independently of any railroad ownership or control, or which do not publish through rates in conjunction with rail lines, are not amenable to the Act to Regulate Commerce and consequently do not file their tariffs; neither are they compelled to adhere to such rates as they may make between the points that they serve. Where the traffic is heavy and where the difference between the rail rate and the water rate affords a 103 104 FREIGHT RATES : SOUTHERN TERRITORY sufficient justification for the use of tlie water routes, the common carrier business by water frequently offers a remunerative return on an investment ; the established lines are therefore often troubled with the competition of what they term ''tramp boats" and ''charter traffic." As a result, there are frequent rate wars terminating either in the failure and retiring of one of the contestants, or in mutual concessions on the part of the belligerents. These concessions usually result in an agreement as to what rates are to be maintained; frequently they bring about a division of the traffic, which is in effect the elim- ination of competition. Many primitive means of transportation are still employed upon these waterways, which in a measure depress not only the rail rates, but those of the boat lines as well. Logs, for example, are still cut near the head waters of these streams and are branded and floated down the river to some concentrating point, where they are made up into rafts and floated down the river to some milling point. Again, small boats of the gasoline type and flat boats are operated in a limited field, their owners doing a trading business as well as a carrjdng business, which interferes with the operation of the estab- lished water lines. 2. Ohio Riveb From the statistics dealing with the tonnage moving on the different rivers in this territory, it will be noted that by far the greatest per cent thereof is on the Ohio River, which is navigable its entire length from Pitts- burgh, Pa., to its mouth, below Cairo, a distance of some 967 miles. The greater part of the tonnage referred to consists, however, of coal which moves from the western Penn- sylvania and West Virginia regions. This commodity RATES ON INLAND WATERWAYS 105 is very economically handled by being loaded into open barges which have a capacity equivalent to fifteen or twenty ordinary coal cars. As twenty or more of these barges are easily handled by the ordinary tow boat, which is operated at a slight expense per day, the advan- tage of this means of transportation is readily appreci- ated. In fact, bituminous coal may be purchased on the barge at Cincinnati at a cost not greatly in excess of one dollar per ton. The cost of unloading the coal varies with the means employed and the distance necessary to remove it from the barge. The lines engaged in this traffic, however, do not handle other traffic except in special cases, for they do not hold themselves out as com- mon carriers, but are operated solely in the interests of marketing coal for their owners. The principal water lines engaging in a common carrier business on the Ohio Eiver are : The Green Line, operating to the landings on the Ohio River above Cincinnati; the Louisville and Cincinnati Packet Com- pany, serving all way points between Cincinnati and Louisville; and the Lee Line Steamers, serving all river landings on the Ohio River below Louisville and on the Mississippi River between Memphis, Tenn., and St. Louis, Mo. Representative rates via some of these routes are as follows : Classes 1 2 3 4 5"6 Rates between Louisville, Ky., and Owensboro, Ky. 26 22 18 12 10 8 Rates between Louisville, Ky., and Evansville, Ind. 26 22 18 12 10 8 Rates between Louisville, Ky., and Cincinnati, Ohio. 2.5 22 17 12 9 8 Rates between Evansville, Ind., and Owensboro, Ky. 18 15 13 10 9 8 The above rates are governed by the Official Classifi- cation, while the following are governed by the Western. Classes 12345ABCDE Rates from Louisville, Ky., to Memphis, Tenn 53 41 38 30 24 23 20 15 12 10 106 FREIGHT RATES : SOUTHERN TERRITORY 3. Geeen and Barren Rivers The Green River, together with the Barren River, forms a body of water navigable for a distance of 227 miles. There are, aside from Bowling Green, Ky., which has a population somewhat in excess of 9,000, few points of any traffic importance and, as may be inferred, there is not a great deal of traffic involved in this instance. The Evansville & Bowling Green Packet Company affords a semi-weekly service between Evansville and Bowhng Green and a weekly service between Evansville and Mammoth Cave, located on the head waters of the Green River. The tariff of this company which names the rates between the termini and the intermediate points is pub- lished rather in the form of an exception sheet, inasmuch as certain specific articles are singled out and given in- dividual rates, while articles not classified are taken at the ratings provided for general merchandise, which term includes all articles that are not specifically rated. The freight rates between Evansville, Ind., and Bowling Green, Ky., include delivery to the consignee's warehouses, stores, etc., which are located within the recognized municipal limits of Bowling Green, of all commodities except furniture, corn, wheat, and woven wire fencing, on which the rates apply to the Bowling Green landing only. The general merchandise rate be- tween Evansville, Ind., and Bowling Green, Ky., is 20 cents per 100 pounds. We find such connnodities as apples rated at 25 cents per barrel ; ale and beer, 20 cents per keg; large boilers, 25 cents per 100 pounds; bran and feed in sacks, 12i/^ cents per 100 pounds ; common brick, $5 per M; brooms, 10 cents per dozen; empty cases re- turned, 8Y2 cents each ; corn, wheat, and rye, 7 cents per 100 pounds ; organs and pianos, boxed, 50 cents per 100 RATES ON INLAND WATERWAYS 107 pounds ; empty trunks, 40 cents per 100 -pounds ; passen- ger vehicles, K. D., boxed and crated, 40 cents per 100 pounds; wooden and willow ware, 35 cents per 100 pounds; and wire fencing in rolls, 15 cents per 100 pounds. In Table 23 are given some representative commodity and general merchandise rates applicable between Evansville, Ind., and Mammoth Cave, Ky. TABLE 23 Freight Rates Applicable Between Evansville, Ind., and Mammoth Cave, Ky. Commodity Rate in Cents C. L. General merchandise Agricultural implements, L. Boots and shoes, in boxes Brooms, in boxes, bundles, or crates Cement, Portland, in bbls., 400 lbs. per bbl. Chairs, rocking, cane seat, without arms . . . Coal Eggs, 30 doz. cases Axe handle timber Bananas, in bunches, sacked, or crated .... Grapes, in baskets Watermelons Live stock, viz., cattle Calves, not exceeding 350 pounds Horses and mules Hogs Mattresses, in bales, 5 or 6 per bale Show cases, in boxes or crates 40 45 45 17 45 85 10 30 400 30 8 8 150 135 75 400 300 40 per cwt. (( (( per doz. per bbl. per doz. per bu. per case per cord per bunch per basket each per head per bale per Unear foot From Table 23 it will be noted that these rates are prescribed in every conceivable manner and are not on a uniform basis of 100 pounds, as is the case with the rail rates. 4. Mississippi River In so far as traffic on the Mississippi River is con- cerned, the following facts gleaned from the opinion of the Interstate Commerce Commission with reference to the petitions of the carriers in Southern Territory to 108 FREIGHT RATES : SOUTHERN TERRITORY violate the fourth section of the Act to Regulate Com- merce are especially relevant.^ The first steamboat (The New Orleans) that operated on the Mississippi River, left Pittsburgh, October 20, 1811, and reached New Orleans early in January, 1812. Not until May, 1815, had any steamboat succeeded in ascending the river as far as the falls of the Ohio at Louisville. By the end of the year 1819, however, 60 steamboats had been built to operate on the Ohio and Mississippi rivers. During the period 1820 to 1830 the most important points in the steamboat trade were Louisville, Ky., Nashville, Tenn., Vicksburg and Natchez, Miss., and New Orleans and Bayou La Fourche, La. * * * During the season ending August 31, 1860, the total commerce on the river reached the enormous value of $289,565,000. The arrivals of boats at New Orleans that year were 4,002, of which 605 came from the upper Atlantic coast, 180 from the lower Atlantic coast, 12 from Peoria, 111., 206 from Cincinnati, 172 from Louis- ville, 8 from Evansville, Ind., 108 from Greenville and Bends, Miss., 110 from Memphis, 526 from Pittsburgh, 4 from Paducah, 472 from St. Louis, 211 from Vicksburg, and the remainder from the various tributaries of the Mississippi River. During the years from 1861 to 1865 the commerce of the Mississippi River was interrupted by the war. * * * in order to profitably employ the large number of steamboats in the Mississippi River at the close of the Civil War, the Atlantic & Mississippi Steamship Company was organized with a capital of $2,240,000. It owned about 20 boats, some of which were the finest then afloat. This company failed after two or three years and was succeeded by the St. Louis & New Orleans Packet Company, which later was organized as the Merchants Southern Line Packet Company. The latter named company was suc- ceeded by the Anchor line, which covered the entire territory from St. Louis to New Orleans and operated for a number of years. During the period 1874 to 1896 this company operated regularly from 12 to 14 steamers. The usual service afforded by it was 2 boats per week between St. Louis and New Orleans, and 3 boats per week between St. Louis and Vicksburg. A statement of tonnage moving by water between St. Louis and New Orleans indicates, in so far as south- bound traffic to New Orleans is concerned, that from a maximum of 627,627 tons in 1880 the tonnage had dwindled to 3,175 tons in 1904. 130 I. C. C. Rep., 226. RATES ON INLAND WATERWAYS 109 While these statements show during the years subsequent to 1901 a constantly dwindling river traffic, they show that, for a period prior to that date, this traffic was large and important in amount, and evidently worth fighting for. Below is shown a chronological statement of the rates on the first six classes from Louisville to New Orleans, 1879 to date: Date 1 2 3 4 5 6 Nov. 24, 1879 105 75 65 45 35 30 Sept. 28, 1880 107 77 67 45 35 30 Nov. 5, 1883 100 77 65 45 35 30 Jan. 7, 1884 98 77 63 40 35 30 Feb. 1, 1884 75 65 55 40 35 30 Aug. 1, 1887 90 75 65 50 40 35 These rates, established August 1, 1887, have been continued in effect from that date and are the present rates. The rates applicable via the water lines from St. Louis, East St. Louis, and Cape Girardeau to New Orleans and other points on the lower Mississippi River are shown as follows : Classes 123456ABCDEHF Rates to Memphis .. . 50 40 35 25 20 18 10 19 10 8 15 32 20 Rates to New Orleans 60 50 45 35 30 25 18 20 18 16 20 40 35 These classes are applicable in connection with the Mississippi Valley Transportation Company and are governed by the Southern Classification. * * * It is evident from the tonnage statistics relative to the actual movement of freight from St. Louis to New Orleans that this tonnage by water did not materially decrease until about the year 1898, 11 years after the establishment of the present scale of rail rates. At the time this testimony relative to the rates in the Mississippi Valley was taken (June, 1912) there were no regular boat hnes in operation from Ohio River points or St. Louis to New Orleans. Regular service of this character had not been furnished for some years. * * ♦ There is reason for believing that the rates to New Orleans, when established by the rail lines in 1887 and since maintained, were necessitated by an active compelling water competition. Without doubt the changing demands of commerce, the in- creased facilities of the railroads, their better organization and 110 FREIGHT RATES : SOUTHERN TERRITORY regularity of service have been influential in winning for them not only a share of the traffic but nearly all of the traffic. The water competition, once actual and compelling, is still, however, potential, and it is most earnestly contended by the petitioners herein that any substantial increase in the rates to New Orleans will have the effect of reestablishing the water competition, with consequent loss of traffic and revenue to the rail lines. ♦ ♦ *' A slight difference in the rates would hardly justify the patronage of a water line when a rail rate was avail- able, for in practically all of the river cities levees of various widths, heights, and lengths have to be con- structed to protect the city and to provide a solid founda- tion for the accommodation of wheel traffic. A varying oscillation^ in the river stage at various points on the river prohibits the construction of vertical wharves such as are employed at the seaboard and the Great Lakes, where vessels discharge their cargoes almost on the street level. The gradient^ of some of these levees is extreme and in some cases five or six blocks in length. Deliveries are usually effected to or by the steamers through a wharf boat, which is moored to the river bank and connected with the shore by gangways over which teams or trucks may pass to receive or deliver ship- ments. The position of the wharf boat is changed in accordance with the stage of the water. Under these circumstances, it is obvious that the expense and risk attending the drayage of freight to such receiving sta- tions are greatly in excess of the expense and risk involved in effecting a delivery to a railroad warehouse, which is a comparatively level haul. Several companies have recently been formed, one at New Orleans, another at St. Louis, and another at Chicago, to revive traffic upon the Mississippi River, and *30 I. C. C. Rep., 229. •Backward and forward movement. *Slope or incline. RATES ON INLAND WATERWAYS 111 if the movement is supported to an extent sufficient to justify it, it may be that some more economical method may be devised for the gathering and distribution of the cargoes of the river packets. The rates applicable from Memphis, Tenn., to some other points and landings on the Mississippi River, in connection with the Arkansas Packet Company, are as follows : Classes 1 2 3 4 5 6 Rates from Memphis, Tenn., to Helena, Ark 30 25 20 16 14 11 Rates from Memphis, Tenn., to PViar's Point, Miss 30 27^ 22M7M5 12 These rates are governed by the Southern Classifica- tion. The rates set forth in Table 23-A, applying between New Orleans, La., and landings in Louisiana, are gov- erned by the A¥estern Classification. 5. Tennessee Eiver This river is navigable for a distance of over six hundred miles, from Paducah, Ky., to Chattanooga, Tenn., and beyond. In addition to several lines operating locally upon this stream, through service is afforded from St. Louis, Mo., and Cairo, 111., by the St. Louis & Tennessee River Packet Company. Rates applicable from Paducah, Ky., to all landings upon this river to and including Perry ville, Tenn., are as follows : Classes 12 3 4 5 6 Rates 50 40 35 30 25 16 These rates are governed by the Southern Classifica- tion. 112 FREIGHT RATES : SOUTHERN TERRITORY TABLE 23- A Boat Rates Applying on Classes via the Mississippi River ON THE Stretch Between New Orleans and the Northern Boundary of Louisiana^ Rates in Cents per 100 Pounds Between New Orleans and Inter- mediate Landings L. C. L. C. L. AND Classes^ 12 3 4 5 ABODE The more important landings between New Orleans and Donaldsonville, La. The less important landings between New Orleans and Donaldsonville, La Landings between Donaldsonville, Baton Rouge, Port Allen,' and Bayou Sara, proper 30 25 23 15 20 30 26 23 20 15 30 26 23 20 15 45 40 35 30 25 50 45 35 30 25 20 15 12 10 10 15 12 12 10 8 15 12 12 10 8 Poplar Grove, Lobdell, Devalls, Hills, and False River Railroad^ 25 18 16 14 12 Landings above Bayou Sara but not above the northern boundary of Louisiana, and including Natchez and Vicksburg, Miss 25 20 18 16 15 'Railroad Commission of Louisiana, Authorities Nos. 5148, 3178, 3180, and 3421. Where commodity rates are higher, they are applied. No freight bill made for less than 25 cents; no landing made for less than 50 cents. The Railroad Commission of Louisiana has authority over intrastate shipments only, but the boat lines apply the rates at landings on the Mississippi side as far as the northern boundary of Louisiana. ^Governed by the Western Classification. 'These landings are between Baton Rouge and Bayou Sara. 6. Cumberland River From Evansville, Ind., and Paducah, Ky., to Nashville and Clarksville, Tenn., the rates of the Cumberland River Steamboat Company are not specified under the ordinary class headings, but specific rates are given for various commodities. Commodity Rate in Cents Apples, per barrel 22 Oil, molasses, or whiskey, in barrels, L. C. L. . 11 Bacon 16^ Boots and shoes, boxed 33 RATES ON INLAND WATERWAYS 113 Commodity Rate in Cents Canned goods 22 Cement, in bags 11 Cement, in barrels 273^^ Coffee 22 Dry goods 273^ Flour, per barrel 22 Groceries, packed, N. O. S 22 Household goods, prepaid 44 Molasses, syrup, and glucose, per barrel 110 Nails 131^ Vehicles, viz., buggies and carriages, K. D . . . 44 7. Alabama River As before stated, while the water carriers are exempted from the provisions of the Act to Regulate Commerce so far as interstate traffic is concerned, many of the states have included them among the other public utilities that are subject to the control or regulation of the state commissions. As will be explained in a subsequent chapter, many of these states prescribe maximum rates which must be observed by the carriers upon traffic moving within those states. In this instance, the rates of the boat lines on the Alabama and Tombigbee rivers between Mobile, Ala., on the one hand and Montgomery, Selma, and Demopolis, Ala., on the other, are fixed by the Alabama Railroad Commission upon the following scale : Classes . . 1 2 3 4 5 6 A B C D E H F Rates. . . , 30 20 20 18 12 10 9 8 10 7 6 18 19 These rates are governed by the Southern Classifica- tion. 8. CoOSA RiVEB The follo\\dng are representative commodity rates applied from Rome, Ga., to Round Mountain, Ala., by the Oostanaula and Coosa River Steamboat Company. 114 FREIGHT RATES : SOUTHERN TERRITORY Commodity Rate in Cents Axes, packed, L. C. L 15 Axle grease, L. C. L 15 Bacon, in sacks or packed in bbls. or hhds. . . 15 Bagging, jute 12}/^ Barrels, half-barrels, and kegs, L. C. L 30 Beans, dried, in barrels or sacks, L. C. L . . . . 15 Blacking, packed in barrels or boxes 15 Books 30 Boots and shoes, boxed 30 Brooms, L. C. L 30 Buckets, wooden, L. C. L 30 Candy and confectionery, packed 30 Canned goods, L. C. L., packed 15 Carpets, matting, and rugs 30 Cheese, in boxes, casks, or cheese hoops 15 9. Chattahoochee River The Merchants & Planters Steamboat Company oper- ates four steamers with two sailings per week between Columbus, Ga., and Apalachicola, Fla. These boats, in connection with the boats on the Gulf- of Mexico, fur- nish an all-Avater route from Columbus to New Orleans, Mobile, and Pensacola. The number of arrivals of boats at Columbus is shown to have been 84 in the year 1863 ; 231 in 1885; 203 in 1890; 141 in 1895; and 201 in 1899. During the last forty-seven years the average yearly arrival of boats has been 129, but few tonnage statistics relative to the traffic handled by these boats are avail- able. It is shown that in 1906 the boats handled 7,233 tons in and out of Columbus. During March, 1910, the boats delivered at Columbus 204,720 pounds of freight; during April, 249,235 pounds; and during May, 440,200 pounds. This tonnage came, for the most part, from New Orleans, Chicago, Cairo, St. Louis, and Pensacola, and consisted of foodstuffs and merchandise of almost every description. Only a small amount of freight comes by RATES ON INLAND WATERWAYS 115 boat to Columbus from the Eastern Cities, but there is a possible all-water route via the Mallory Line from Mobile and via steamboat lines from Mobile to Columbus.^ Eufaula, Ala., is another important point on this river, but at the present time there are no figures available as to what the charges are between the terminals of this route. 10. Flint River Although up to the twentieth of June, 1911, the United States Government had expended $278,500 in improving the navigation of the Flint River, the competition of the water carriers of this river must still be regarded as largely potential. Such service as there is, is afforded by small boats of light draft. Although Albany, Ga., is located on this stream and is a distributing point of no little importance, there is an absence of authentic figures relative to the tonnage moving on this river. 11. Savannah Rivee The two established lines navigating this river are known as the Merchants & Farmers Navigation Company and the Augusta & Savannah Steamboat Company. The most important point aside from Savannah located on this river is Augusta, which was founded in 1735. Long before the construction of railroads, Augusta was an important distributing point, merchandise reaching it by means of boats on the Savannah River and from Charleston by means of wagons and teams. Upon the completion in 1833 of the old South Carolina Railroad, which was financed largely by merchants of Charleston, Augusta was linked with Charleston. It is significant to note that the management of this railroad, soon after its •30 I. C. C. Rep., 153. 116 FREIGHT RATES : SOUTHERN TERRITORY construction, established lower rates from Charleston to Augusta than it did to intermediate points and thus brought about a violation of the long-and-short-haul clause which has continued from that day to this. The Savannah River is navigable during the entire year. The boat service is regular and has continued for nearly one hundred years. The United States Govern- ment has spent large sums of money for the improvement of this river, $350,000 being appropriated for that pur- pose during the year 1912. It has been developed that nearly all the sugar, cotton ties, bagging, cement, iron and steel articles, canned goods, and other heavy com- modities move into Augusta by way of the river and that the rail lines participate very little in this traffic. The boat lines likewise handle the bulk of the outgoing prod- ucts, consisting largely of cotton goods, to the Eastern Cities.® 12. Altamaha River The Macon & Brunswick Navigation Company, which up to 1909 operated on the Altamaha and Ocmulgee rivers, discontinued its service. Subsequently, however, the service was resumed on a somewhat smaller scale than was formerly maintained. It is stated that the tonnage handled by the railroads in and out of Macon during the year 1910 was 2,000,000 tons, six per cent of which was handled to and from the coast. It is estimated that one-third of this traffic to and from the coast could have been advantageously transported by boat if naviga- tion had permitted and the boats were in operation. These illustrations will suffice to show the important part that these inland waterways play in the distribution of the commerce of the South. «30 I. C. C. Rep., 153. RATES ON INLAND WATERWAYS 117 13. Insubancb Another feature that should not be lost sight of in connection with water transportation is the requirement for the insurance of property transported by river car- riers. It is commonly known as marine insurance. This charge, being in addition to the freight rates in a great many instances, lessens the difference between the rail rates and the water rates. The following are the insur- ance rates on river cargo in effect in 1910. The rates given are those on $100 in value of cargo carried by good steamboats and barges to and from New Orleans and the following points.'^ INSURANCE RATES PER $100 VALUE APPLYING ON CARGO SHIPPED ON THE ILLINOIS AND MISSISSIPPI RIVERS BETWEEN AND RATE St. Louis Cairo $0.40 St. Louis Memphis .50 St. Louis Vicksburg .70 St. Louis Natchez .75 St. Louis New Orleans . 80 Cairo Memphis . 40 Cairo Vicksburg .50 Cairo Natchez .55 Cairo New Orleans . 65 LaSalle, 111. New Orleans 1 . 10 St. Paul, Minn. New O rl eans 1.50 Special rates are charged on cotton seed as follows: By model barges from any point to New Or- leans the rate is 85 By scow barges from any point on the Mississippi to New Orleans 1.50 By scow barges from any point on the tributaries of the Mississippi River to New Orleans 2.00 Harbor risks on cargo in model barges holding underwriters' inspectors' certificate are taken at a rate of $2.50 per $100 in value. Hull risks on approved vessels are taken at from 6 to 16 per cent per annum on the value of the vessel. The Lee Line pays 13 per cent on its fleet. This is probably near an average insurance rate for approved wooden hulls on the Mississippi River. 'Shelton, W. A., The Lakes-to-the-Oulf Deep Waterway. 118 FREIGHT RATES : SOUTHERN TERRITORY There is a large list of freight on which the insurance alone prevents the shipment by river. A large part of the common stock of dry goods, for example, is valued at $50 or more per 100 pounds, and the insurance between St. Louis and New Orleans at this value is 40 cents. The finer lingeries and silks are valued at as much as $1,000 per 100 pounds, on which the insurance rate is $8 per 100 pounds. The rail rate on silks of this value is only $2.70 from New York to St. Louis, and on the cheaper grades of silks the rate is only 90 cents. In cases involving a water haul, it is always desirable to ascertain whether the rate covering the water or the joint rail-and-water haul includes this item, as in some cases the steamboat companies assume this risk them- selves and insure the property under their open policy. Considering the hazards of navigation, such as stranding, sinking of the vessel by striking hidden snags or other obstruction or change in the river channels, the burning of the vessel, the risk of damage from water, etc., goods of value should never be shipped unless insured. CHAPTER IX interstate rates via coastivise routes 1. Character of Service To enter into a detailed description of the many thousands of separate but interdependent bases of rate construction under which the whole of the southern rate fabric has been constructed, and under which changes in rates are constantly being made, would produce a volume of matter far beyond the scope of this treatise. All that may be undertaken, therefore, is to describe and exemplify more or less in outline the principal features of the relative adjustments that obtained between the points of origin on the one hand and the points of des- tination on the other. A discussion of these adjustments will prove sufficient to give a clear understanding of the old situation. As the rates on interstate traffic are, to a great extent, compelled by the rates established from eastern markets and reflect the effect of the direct water competition be- tAveen the North and the South Atlantic ports, it is neces- sary, before taking up any of the interior adjustments, to make some statement as to the service and rates afforded between the more important ports. It should be understood that while many of these water lines are controlled by railroad interests, and publish joint rates to inland points, which are subject to revision by the Interstate Commerce Commission, their all-water 119 120 FREIGHT RATES : SOUTHERN TERRITORY rates, or dock-to-dock rates, as they are styled, do not come within the jurisdiction of the Commission and are not filed vdih. that body. Consequently, as a rule no shipments of great volume are handled on the basis of published rates. Where cargoes are offered in large quantities, the schedules are often disregarded. In addition to the freight carried hy the regular steam- ship companies, or established lines, much of the low- grade bulk traffic moving into and out of the South Atlantic Ports is handled by vessels belonging to lumber companies and by tramp steamers. These steamers move loaded into or out of the ports and return empty except for such traffic as may be picked up. Considerable ton- nage is handled by sailing vessels. Cement, coal, lumber, and fertilizer materials move to the South Atlantic Ports in large quantities by these irregular steamships on lower rates than are afforded by the regular steamship lines. The sailing vessels represent the cheapest means of con- veyance. Practically all of the space in the boat can be utilized for cargo, none of it being given over to motive power, as is the case with the self-propelled vessels. Likewise, such craft are operated at a slight expense and consequently ''schooner competition," as it is styled, is recognized by all steamship companies in making their rates. Independent, or tramp, vessels usually offer for large shipments rates that are less than those made by established lines. Vessels of this class are not en- gaged in regular service between any two points, but go where there is a likelihood of obtaining cargoes. This phase of transportation, however, is fully dealt "with in the treatise on "Ocean Traffic and Trade" and it is not necessary at this point to enter into a detailed discussion of the peculiarities of competition between line and tramp boats. INTERSTATE RATES VIA COASTWISE ROUTES 121 2. Distances Especially on traffic originating in Seaboard Territory, the all-water rates from the various North Atlantic Ports to Norfolk are a factor of great importance in establish- ing through rates to interior points in Southern Terri- tory. Testimony introduced in connection with the peti- tions of the carriers for permission to violate the provi- sions of the fourth section of the Act to Regulate Com- merce developed that the distance from New York City to Norfolk via the steamer lines is assumed by the car- riers, for the purpose of divisional rates, to be equivalent to 160 miles of rail haul. On this basis the water-and-rail mileages to the principal South Atlantic Ports are com- pared with the all-rail mileages of several carriers.^ New York to Charleston: Miles Via Southern Railway, all rail 846 Water and rail 746 Via Atlantic Coast Line, all rail 739 Water and rail 552 Via Seaboard Air Line, all rail 831 Water and rail 666 New York to Savannah: Via Southern Railway, all rail 870 Water and rail 770 Via Atlantic Coast Line, all rail 854 Water and rail 667 Via Seaboard Air Line, all rail 845 Water and rail 680 New York to Brunswick: Via Southern Railway, all rail 966 Water and rail 866 Via Atlantic Coast Line, all rail 1,008 Water and rail 821 Via Seaboard Air Line, all rail 932 Water and rail 767 New York to Jacksonville: Via Southern Railway, all rail 1,042 Water and rail 942 Via Atlantic Coast Line, all rail 1,026 Water and rail 839 Via Seaboard Air Line, aU rail 982 Water and rail 817 »30 I. C. C. Rep., 163. 122 FREIGHT RATES : SOUTHERN TERRITORY 3. PoRT-TO-PoRT Rates (a) Norfolk, Va. The all- water rates from the Eastern Cities to Norfolk, Va., are indicated in Table 24. TABLE 24 Class Rates from the Eastern Cities to Norfolk, Va. To N^rmTrnT TT Va Rates IN Cents PER IOC Pounds Except AS ^fOTE D From 1 2 3 4 5 Classes' 6 A B C D E H F« Boston 45 32 40 26 23 23 6 5 39 27 25 22 22 22 6 5 34 23 22 18 19 19 6 5 30 20 18 16 15 15 4 5 25 15 14 13 13 13 4 5 223 12 11 10 11 11 4 5 12 11 10 11 11 4 5 20 18 16 11 11 4 5 i2 11 10 11 11 4 5 i2 11 10 11 11 4 5 i5 14 13 13 13 4 5 20 18 16 15 15 4 5 New York ''1 Philadelphia ?? Baltimore ?n New York< ''0 Philadelphia^ ?n Baltimore* ' s Boston* » in >Governed by the Southern Classification, except as noted. 'Per barrel. KSoverned by the Official Classification. ♦Proportional rates applicable only on traffic destined beyond.. •Less than the New York scale. 'Higher than the New York scale. The proportional rates are those used in constructing through rates to interior destinations in Southern Terri- tory. These proportional rates vary sometimes according to the destination of the traffic and the length of the haul. This feature, however, will be discussed in the subsequent chapters of this work devoted to the construction of interstate rail-and-water rates. (b) Wihiington, N. C. Wilmington, N. C, as the principal port city of the state, has a semi-weekly service via the Clyde Line to and from New York. The class rates governed by the Southern Classification applicable from New York to Wilmington are as follows: Classes 12 3 4 5 6 Rates 50 40 34 28 20 16 INTERSTATE RATES VIA COASTWISE ROUTES 123 (c) Georgetown, S. C. As Georgetown is a comparatively small port when contrasted with Charleston, which ranks among the fore- most of American seaports, it is natural, in order to com- pete with the larger ports, that the rates be adjusted on a somewhat lower basis than is accorded its stronger rival. As a result, the Clyde Line, which has a semi- weekly service between New York and this port, applies practically the same rates as it does to Wilmington, N. C. Classes 1 2 3 4 5 6 Rates 50 43 36 29 23 16 {d) Charleston, S. C. This is the principal port of South Carolina and next to Savannah the most important of the South Atlantic seaports. The Clyde Line affords a service from New York, the Philadelphia & Gulf Steamship Company from Philadelphia, the Baltimore & Carolina Steamship Com- pany from Baltimore, and the Charleston Steamship Company from Charleston and Georgetown, S. C. Representative rates to Charleston currently in effect from New York are as follows : Classes 1 2 3 4 5 6 Rates 50 47 37 29 24 19 These rates are governed by the Southern Classifica- tion. (e) Savannah, Ga. DuringHhe year 1911 Savannah handled over 2,500,000 bales of cotton and, next to Galveston, Tex., is the largest cotton market in the world. During the same year, 404 irregular vessels, consisting of schooners, barks, and steamships, not including any vessels of the Ocean Steamship Company or of 330 I. C. C. Rep., 170. 124 FREIGHT RATES : SOUTHERN TERRITORY the Merchants & Miners Transportation Company, entered Savannah. Such of these vessels as moved to and from eastern ports handled fertilizer material, salt, cement, plaster, coal, iron and steel articles, brick, oil, gravel, and hay from north Atlantic ports to Savannah and lumber and crossties from Savannah to the North Atlantic ports. The approximate amount of traffic carried by these irregular vessels, exclusive of foreign traffic, from the north Atlantic ports to Savannah was 130,172 tons, and during the same period 50,000,000 board feet of lumber and crossties were shipped from Savannah by these vessels. These outside vessels brought into Savannah 10,938 tons of cement at a rate of approximately 97 cents a ton, as compared with the rate of the regular steamship companies of SI. 50. The approximate rates charged by these irregular vessels from North Atlantic ports to Savannah are: PER TON Fertilizer $1.50 Salt 1.25 Iron and steel articles 1.70 Plaster 97 Coal 1.10 Brick 1.09 Hay 90 The Ocean Steamship Company of Savannah affords a through ser\dce from New York, and the Merchants & Miners Transportation Company from Baltimore and Philadelphia. The rates currently in effect via the Ocean Steamship Company are as follows : Classes 1 2 34 5 6ABCDEHF Rates 57 47 37 29 24 19 18 18 IS 18 27 27 31 These rates are governed by the Southern Classifica- tion. (f) Brunswick, Ga. As may be inferred, the local traffic of Bruns^vick would in itself hardly be worth while for the maintenance of a steamship line. However, this city marks the ter- minus of the Atlanta, Birmingham & Atlantic Railroad, which is in competition with the lines leading out of Sa- INTERSTATE RATES VIA COASTWISE ROUTES 125 vannah for business to and from the interior. Inasmuch as there is not a great deal of difference in the haul to in- land points, it naturally follows that to compete success- fully the same factors will have to be applied up to the ports in so far as the water carriage is concerned. This is illustrated by the fact that the rates currently in effect are the same as those to Savannah set forth in the pre- ceding paragraph. (<;) Jacksonville^ Fla. Jacksonville is the principal city of Florida and is served by the following steamship companies: The Clyde Line from New York, four sailings per week ; the Southern Steamship Company from Philadelphia, Charleston, Key West, and Tampa, one sailing per week ; and the Merchants & Miners Transportation Company from Baltimore to Savannah and Jacksonville, three sailings per week. The traffic involved in this instance is largely local to the state of Florida ; little if any traffic is forwarded via this route destined to interior points in Southern Terri- tory. The immense quantities of produce raised in this state and its popularity as a resort undoubtedly have much to do with the advantages it possesses in so far as water transportation is concerned. Current rates in effect from New York City to Jack- sonville are as follows: Classes 1 2 3 4 5 6 Rates 67 57 47 33 26 20 {h) Tampa, Fla. This city, located on the west coast of the peninsula of Florida, is afforded a weekly service from New York by 126 FREIGHT RATES : SOUTHERN TERRITORY the Mallory Steamship Company. The rates currently in effect via this route are as follows : Classes 1 2 3 4 5 6 Rates 95 80 65 55 45 40 These rates are governed by the Southern Classifica- tion. (i) Gulf Ports Considering the length of the water haul involved, the rates to the more important Gulf ports are on a relatively low basis as contrasted with the water rates to the more closely situated South Atlantic Ports, taking New York as a point of origin. This is illustrated by the rates currently in effect via the water line, which are set forth in Table 25. TABLE 25 All-Water Class Rates from New Nork, N. Y., TO Gulf Ports From New York, N. Y., To Rates in Cents per 100 Pounds Classes^ 12 3 4 5 6 Mobile, Ala New Orleans, La 75 65 54 44 38 33 70 60 50 40 35 30 Pensacola, Fla 70 60 50 40 35 30 'Governed by the Official Classification. Statistics were introduced in a recent federal investi- gation indicating that the southbound tonnage forwarded via the Morgan Line from Seaboard Territory to New Orleans, La., for the first eleven months of the year 1911, aggregated 246,000 tons, and that during the same period the deliveries of the Mobile & Ohio Eailroad and the Louisville & Nashville Railroad were but 577 tons. INTERSTATE RATES VIA COASTWISE ROUTES 127 From the foregoing, it may be seen that while the traffic on the interior waterways has dwindled considerably in the past decade and may consequently be considered as potential, the competition on the high seas is aggressive and controlling. It would seem, con- sidering the competition of the markets and the volume of traffic involved, that the rates from New York to New Orleans and Mobile must be considered as controlling factors in this adjustment. All points located adjacent to the seaboard have the advantage of location over such markets as St. Louis, Chicago, Cincinnati, and other points located on inland waterways by reason of the fact that the cost of operation on the high seas is considerably less than that for inland navigation. Owing to dock facil- ities, the vessels are greater in size and consequently larger cargoes may be carried. 4. Rates to and from Interior Points in Trunk Line AND New England Territories The effects of this water competition are far-reaching and are felt not only in the immediate vicinity of the port cities, but, for illustration, in the instance at hand the rates made by the water carriers between New York and New Orleans are felt throughout the entire eastern section of the United States. By an ingenious system of rate-making known as the absorption plan, the application of the water rates are extended to practically all of Trunk Line and New England territories. Prior to the issuance of the tariff regulations of the Interstate Commerce Commission, this plan of rate- making was expressed in the following manner, taking 128 FREIGHT RATES : SOUTHERN TERRITORY the rates to Mobile, Ala., via the Mallory Steamship Company as an example :^ The Mallory Steamship Company will accept for its service from New York to Mobile, Alabama, rates yielded by deducting from the rates shown in schedule No. 1 of the following table, the rates shown in Schedule 2. To the net rates so established must be added the published tariff rate from point of origin to New York (and the cost of transfer when the rates do not in- clude free lighterage at New York harbor) and further provided that the rates shown in Table 1 are in all cases to be the mini- mum through rates. SCHEDULE I SCHEDULE II Minimum Through Class Maximum Class Deduc- From Rates IN Cents PER TIONS IN Cents PER 100 Pounds 100 Pounds 1 2 3 4 5 6 R25R26 1 2 3 4 5 6 R25 R26 Connecticut stations 75 65 54 44 38 33 55 44 16 15 14 12 12 10 14 12 Wilmington, Del 75 65 75 65 44 54 44 44 38 38 33 33 55 55 44 44 28 26 23 20 19 16 14 13 12 12 10 10 lyi 17 15 Washington, D. C 13 Portland, Me 75 65 76 65 75 65 54 54 54 44 44 44 38 38 38 33 33 33 55 55 55 44 44 44 16 (') 16 15 15 14 14 12 12 12 12 10 10 14 14 12 Baltimore, Md Massachusetts stations. . . . 12 New Jersey stations 75 65 54 44 38 33 55 44 15 12 10 9 8 8 10 9 New York stations 75 65 54 44 38 33 55 44 15 12 10 9 8 8 10 9 Eddystone, Pa ( Chester, Pa f 75 65 54 44 38 33 55 44 15 12 10 9 8 8 10 9 Philadelphia, Pa 1 Camden, N. J ) 75 65 54 44 38 33 55 44 (') Rhode Island stations Virginia: Newport News 75 65 54 44 38 33 55 44 16 15 14 12 12 10 14 12 85 73 60 47 41 35 62 48 32 28 25 22 17 15 25 22 Norfolk ( Portsmouth > 85 73 60 47 41 35 62 48 (') Richmond ) 'Published tariff rates to Mallory Line Pier. For the purpose of illustrating the application of this table, assume that it is desired to construct rates from Tuckahoe, N. Y., from which point the rates currently in effect to New York, including free lighterage, are : Classes 12 3 4 Rates 17 15 13 10 6 7 Through rates would be obtained by deducting the maximum absorption sho^vn in Schedule II from the scale applying from New Y^ork stations given in Schedule •Taken from a tariff publication of the Mallory Line. INTERSTATE RATES VIA COASTWISE ROUTES 129 I, and then adding to these rates the rates applying to New York. For example : Classes 1 1^ 3 4 5 6 Rates from New York City to Mobile, Ala 75 65 54 44 38 33 Differentials 15 12 10 9 ^ _^ Through rates from New- York City to Mobile,Ala. 60 ■ 53 44 35 30 25 Rates from Tuckahoe, N.Y., to New York City 17 15 13 10 8^ 7 Through rates from Tucka- hoe, N.Y., to Mobile.Ala. 77 68 67 45 38^ 32 With the exception of the sixth-class rate, the above rates would be applied on traffic originating at Tuckahoe, N. Y., and forwarded via the New York Central Lines by way of New York and the Mallory Line. In the case of the sixth-class rate, as it is less than the minimum rates named in Schedule I, the rate is increased to 33 cents in order to comply with this requirement. As this method of constructing rate schedules was not permitted by the Interstate Commerce Commission under its requirements, it became necessary for the water car- riers to adopt some other means of publishing rates, with the result that today specific through rates are pub- lished from individual points and groups of points. In Table 26 is given a list of representative points within Seaboard Territory, showing the group to which each is assigned, while in Tables 27 and 28 are given the through class and commodity rates from these groups to New Orleans, La. Attention is directed to the fact that where the trans- portation to New York is by water or partly by water a lower scale of rates is provided in many instances than when the movement to the port is via a rail carrier. 130 FREIGHT RATES : SOUTHERN TERRITORY TABLE 26 Grouping of Eastern Points of Origin for Rates to New Orleans, La., via Gulf Routes Station Allentown, Pa Amsterdam, N. Y. . . Arlington, Mass Ashbumham,! Mass. . Augusta,^ Me Baltimore, Md Barclay, Md Bayside, N. J Beach Haven, N. J. . Boston, Mass Bruceton, Pa Bnmswick, Me Buffalo, N. Y Camden, N. J Chester, Pa Chester Springs, Pa. . Concord, N. H Costigans,'' Me Croydon, Pa Cumberland, Md. . . . Cumberland Jet., Me. Cumberland Jet.,' Me Dover, N. J Eastport, N. Y Eleanora,Pa EUzabeth, N. J Fairchance, Pa Floral Park, N. Y. . . Grafton, W. Va Hagerstown, Md. . . . Hallmans, Pa Harrisburg, Pa Hartford, Conn Havre de Grace, Md . Huntington, N. Y . . . Group Station -A -C 11-A 13 3 12 22 9 19-A 13-A 13-A 2 17 20 17-A 8 12- 12- 20 25 8-A 14-B 20 15-A 8 12-B 19 5 19 2-A 18 14-B 12-C 14-A 10-A 14-B 6-A Islip, N. Y Jamestown, N. Y Kingston, R. I Kingston,^ R. I Little Ferry, N. J Newark, N. J New Haven, Conn . . . . Niagara Falls, N. Y. . . Ogdensburg, N. Y. . . . Oil City, Pa Orange, N. J Orleans, Mass Orleans,* Mass Paterson, N.J Philadelphia, Pa Pittsburgh, Pa Portland, Me Portland,3 5 Me Poughkeepsie, N. Y. . . Reading, Pa Rochester, N. Y Readfield,^ Me Rutland, Vt Schenectady, N. Y. . . . Sheepshead Bay, N. Y Skowhegan,'' Me Springfield, Mass Syracuse, N. Y Troy, N. Y Troy, Pa Utica, N. Y Watertown, N. Y . . . . West Point, N. Y Williamsport, Pa Yarmouth, Me Group 6-A 17-A 15 6 4 1 10-A 17-A 21 18 5 15 10 5 1-A 18 20 6-B 7 14-A 14 24 15 11 1-B 25 10-A 14 11 14-A 14 21 7 14-A 20 •Rates apply in connection with the New England Navigation Company and the MetropoUtan Steamship Company. 'Rates apply in connection with the Maine Steamship Company and the MetropoUtan Steamship Company. 'Rates apply in connection with the MetropoUtan Steamship Company. ♦Rates apply in connection with the New England Navigation Company. »Rate8 apply in connection with the MetropoUtan Steamship Company and the Boston and Maine Railroad. INTERSTATE RATES VIA COASTWISE ROUTES 131 TABLE 27 Class Rates from Points in Atlantic Seaboard Territory Rates in Cents per 100 Pounds Fbom Gbotjp No. Classes' 12 3 4 5 6 R25 R26 R28 1 70 60 50 40 35 30 51 40 431 70 60 50 40 35 30 51 40 43 70 60 51 41 35 30 51 41 44 72 61 51 41 35 31 52 41 44 72 63 53 43 36 30 531 43 46 73 64 55 44 39 33 55 44 48 lA IB 2 2A 3 4 75 65 55 45 39 32 55 45 481 75 68 57 44 371 311 68 46 481 77 68 59 49 44 37 59 49 521 79 69 58 47 39 32 59 47 51 6 6 6A 6B 78 68 58 47 41 35 59 47 51 7 80 69 58 47 39 32 59 47 51 8 81 70 59 47 371 311 591 47 51 81 70 59 47 371 311 591 47 51 80 70 58 48 38 32 591 48 511 82 73 63 62 44 40 63 52 56 8A 9 10 lOA 82 73 63 52 44 40 63 52 "56 11 85 73 61 48 39 32 62 49 521 86 74 62 481 381 32 63 50 53 86 76 66 53 44 40 66 53 571 87 75 63 49 39 321 64 50 54 87 76 63 52 43 35 65 52 56 IIA 12 12A 12B 12C 88 76 64 501 401 33 65 51 55 90 76 64 50 41 34 65 51 55 13 13A 91 78 66 53 41 35 66 53 571 92 76 64 50 41 35 65 51 55 14 92 76 64 50 41 35 65 51 55 14B 92 76 64 50 41 37 65 51 55 94 82 66 53 44 40 70 53 571 94 82 66 53 44 40 70 53 571 94 82 69 53 42 35 70 55 581 98 85 72 54 43 35 72 58 601 98 81 68 53 43 39 69 54 58 ISA 17 18 98 81 68 53 43 39 69 54 58 98 81 68 53 43 39 69 54 58 19A 100 84 67 53 44 38 71 54 58 100 84 67 53 44 40 71 54 68 21 100 84 67 53 44 40 71 54 58 104 90 73 61 50 42 761 61 65 104 92 79 65 52 44 79 65 70 23 113 96 78 63 52 43 82 63 68 25 119 106 83 65 54 45 90 66 711 •Governed by the Official Classification. 5. Eates From Points in Central Freight Association Territory to South Atlantic Coast Points via North Atlantic Coast Ports and Ocean The bases employed result in through published rates which are made by using full rates to the North At- lantic Ports and adding thereto the proportional rates of the ocean carriers. 132 FREIGHT RATES : SOUTHERN TERRITORY TABLE 28 Commodity Rates^ Applicable Only from Points Specified Commodities From Rate From Rats li.C.L. C.L. L.C.L. C.L. Alcohol, in barrels Baltimore Md. 54 43 Buffalo N. Y. 43 43 Ale, in standard packages Baltimore Md. Buffalo N. Y. Hudson N. Y. Newark N. J. 37 38 32 30 Ogdensburg, N. Y. . Philadelphia. . . .Pa. Syracuse N. Y. 42 32 i 37 Ammunition: Cartridges (Paper or Metallic Shells, Loaded), for small arms only, boxed, minimum carload weight 30,000 pounds Bridgeport . . . Conn. 42 New Haven . . Conn. 4? Bagging (for Baling Cot- ton), in bales, mini- mum weight 30,000 pounds Ludlow Mass. 27 Bagging, in rolls, mini- mum carload weight 24,000 pounds Ludlow Mass. 27 Bags and Bagging (Old), in bales, minimum car- load weight 30,000 lbs. Baltimore Md. Boston Mass. Camden N. J. •■ 28 29 28 Norfolk Va. Philadelphia Pa. 38 28 Baking Powder, in tin, packed in boxes, mini- mum carload weight 30,000 pounds Baltimore Md. Fredericksburg .Va. 56 40 43 Manchester Va. Richmond Va. 56 43 43 Baskets (Splint), nested. Northeast Md. 116i Beans (Dried), minimum carload weight 40,000 pounds Akron N. Y. Albion N. Y. Alexander N. Y. Alton. ..• N. Y. Attica N. Y. Avon N. Y. Baltimore Md. Barker N. Y. Brockport N. Y. Caledonia N. Y. Canandaigua. . N. Y. Cay wood N. Y. Craigs N. Y. Dansville N. Y. Geneseo N. Y. Groveland N. Y. Holcomb N. Y. Honeoye Falls.N. Y. Kendaia N. Y. Leicester N. Y. Le Roy N. Y. 35 35 35 36 35 35 35 36 35 35 35 35 35 35 35 35 35 35 35 35 35 Lockport N. Y. Marion N. Y. (Note AA) Medina N. Y. Middlesex N. Y. Naples N. Y. Newark N. Y. North Rose. . . N. Y. Nunda N. Y. Oakfield N. Y. Palmyra N. Y. Penn Yan N. Y. Perry N. Y. Prattsburg N. Y. Rochester. . . .N. Y. Rushville N. Y. Scottsville N. Y. Shortsville. . . . N. Y. Trumansburg . N. Y. Walker N. Y. Waterport N. Y. Williamson . . . N. Y. 35 35 35 35 35 35 36 35 35 35 35 35 35 35 35 35 35 35 33 36 35 iRates in cents per 100 pounds except as'noted. INTERSTATE RATES VIA COASTWISE ROUTES 133 In Table 29 are set forth the rates via New York and the ocean to Wilmington, N. C, Georgetown and Charles- ton, S. C, Savannah and Brunswick, Ga., and Jackson- ville, Fla. TABLE 29 Class Rates from Central Freight Association Points TO South Atlantic Ports To South Atlantic Ports From Benton Harbor, Mich. Cairo, 111 Chicago, 111 Cincinnati, Ohio Cleveland, Ohio Detroit, Mich Elkhart, Ind Fort Wayne, Ind Grand Rapids, Mich. . Indianapolis, Ind. . . . Jackson, Mich Lansing, Mich Louisville, Ky Peoria, 111 St. Louis, Mo South Bend, Ind Toledo, Ohio Rates in Cents per 100 Pounds 1 Classes' 3 4 109 127 112 102 85 95 109 104i 109 106§ 106 108 112 119J 1241 109 94i 110 97 88^ 72 82i 92 93 i 99 1031 108 94i 82i 75 87 77 70^ 53^ 66 75 72 75 73^ 73 7^ 77 82 85^ 75 66 55i 64 57 53^ 40 491 55i 53J 55^ 54i 54 55 55 ^ 45 60^^48 63 i, 50 55^ " 44 491 38i 44 51 45 41 30 38^ 44 42 44 43 42i 6 36 42 37 33i 25 3U 36 34J 36 35 35 35i 37 39i 41 36 31i 'Governed by the Official Classification. The class rates shown in Table 29 applying from Cincinnati, Louisville, St. Louis, and other points via New York and the ocean to the South Atlantic Ports are governed by the Official Classification. Some of these rates are higher, though most of them are lower, than the rates of the all-rail lines on the corresponding classes, which are governed by the Southern Classification. The trunlc lines serving the Ohio River through Baltimore in connection with the Merchants & Miners Transportation Company provide for through rates to South Atlantic 134 FREIGHT RATES : SOUTHERN TERRITORY Ports, subject to the Southern Classification, on the basis of the following differentials under the rates pubhshed by the all-rail lines : Classes. . . .. 1 2 3 4 5 6 A B E H Rates. . . . .. 8 6 5 4 3 2 2 2 3 4 If the rates made on this basis, governed by the Southern Classification, are lower than the published rates, governed by the Official Classification, the lower rates are applied. (a) From New Orleans, La. The rates currently in effect via the all-water routes to the South Atlantic Ports are not obtainable at this time. In Table 30, however, are given the all-rail rates applicable from New Orleans, La., to the South Atlantic Ports. As these rates are claimed to be fixed by the water competition, the rates set forth in this table give some idea as to their measure. TABLE 30 All-Rail Class Rates from New Orleans, La., to South Atlantic Ports From Rates in Cents per 100 Pounds New Orleans, La., To Classes' 12 3 4 5 6 Charleston, S. C 91 76 71 66 54 42 Savannah, Ga Brunswick, Ga 91 76 71 66 54 42 91 76 71 66 54 42 Jacksonville, Fla 72 60 57 53 44 35 Tampa, Fla 122 103 91 85 72 62 'Governed by the Official Classification. These rates are necessitated by the direct water com- petition on the Atlantic Ocean and the Gulf of Mexico. The Philadelphia & Gulf Steamship Company furnishes INTERSTATE RATES VIA COASTWISE ROUTES 135 a regular service twice a month between Charleston, S. C, and New Orleans, La. The Paye Steamship Com- pany furnishes the regular all-water service between Tampa, Fla., and New Orleans, La. There is no regular all-water service between New Orleans and Savannah, Brunswick, or Jacksonville. Such other water service as exists is that furnished by irregular steamers and sailing vessels. For many years the rail carriers have not enjoyed the traffic of sugar, coffee, molasses, and rice from New Orleans territory to Charleston. This traffic moves via all water, and the rail carriers have been unable to secure it from the water carriers. Facilities are at hand at Charleston for unloading cargoes into the warehouses of the Charleston Terminal Company, which extend along the water front; this material is then distributed to the interior points as necessity may demand. A very large movement of the coastwise vessels into and out of the ports of Savannah, Brunswick, Jacksonville, and Tampa is indicative of the heavy coastwise movement between these points and other Atlantic and Gulf ports. TEST QUESTIONS These questions are for the student to use in testing his knowledge of the assignment. The answers should be written out, but are not to be sent to the University. 1. In some instances, how may the rates to Atlanta, Ga., be figured? 2. What is the chief factor in measuring intrastate rates? 3. What commissions in Southern Territory have been particularly active in prescribing charges applicable within their states? 4. Assuming that a change is made in the rates from At- lanta, Ga., to Brunswick, Ga., what is the result as far as At- lanta, Ga., and Charleston, S. C, are concerned? 5. How is the term "continuous mileage" defined? 6. Into what classes are the railroads of the state of Georgia assigned by the commission of that state? 7. To what extent may the rates of Class-D roads exceed the rates of Class-A roads on Classes 1, 2, 3, 4, 5, and 6, under the rules of the Georgia Railroad Commission? 8. What is the rule of the Georgia Railroad Commission respecting joint rates? 9. How should the joint rates between carriers within the state of Georgia be divided? 10. How are the additional classes other than those pro- vided for in the Southern Classification accounted for in the Georgia scale? 11. What would be the difference in charges on two car- loads of drain tile shipped a distance of 100 miles over a single line, one of them being shipped at the owner's risk and the other at the carrier's risk, the weight of both cars being 30,000 pounds ? 12. (a) What distance is fixed by the Georgia Railroad Commission from Brunswick, Ga., to Birmingham, Ala., via the Atlanta, Birmingham & Atlantic Railroad? (b) From Atlanta, Ga., to Brunswick, Ga., via the Southern Railway? 136 TEST QUESTIONS 127 13. How are joint lines defined by the Georgia Railroad Commission? 14. In constructing rates, what distance would be em- ployed if the actual distance was 4.1V2 miles? 15. What would be the class rates applicable upon a tap line 9 A miles in length? 16. How does the Railroad Commission of Tennessee pre- scribe rates applicable upon intrastate traffic? 17. (a) What compels the low rates from Memphis, Term., to Nashville, Tenn. ? (b) From Chattanooga, Tenn., to Nash- ville, Tenn.? 18. To what causes may be ascribed the comparatively low rates from the Eastern Cities to Jacksonville, Fla. ? 19. As a general rule, how are rates to interior points in Florida constructed? 20. Enumerate the rates on Classes 1, 2, 3, 4, 5, and 6 appli- cable from Jacksonville, Fla., to Miami, Fla, 21. In what respect does the joint-rate rule of the Florida Railroad Commission differ from that of the Georgia Railroad Commission ? 22. When did the present class rates prescribed by the North Carolina Railroad Commission become effective? 23. How would the rates for a joint haul over two inde- pendent lines for a distance of 50 miles be constructed under the rules of the North Carolina Railroad Commission? 24. In what respect does the minimum-charge rule of the North Carolina Railroad Commission differ from that of the Southern Classification? 25. What conditions cause a departure from the Southern Classification in so far as traffic in West Virginia is concerned ? 26. In cases where the Southern Classification governs rates in West Virginia, are the rates subject to revision by the com- mission of that state? 27. On what basis are rates between Ashland and Mays- ville, Ky., and Cincinnati, Ohio, via the Chesapeake & Ohio Railway, constructed? 28. What causes comparatively low rates via rail lines be- tween Cincinnati, Ohio, and Louisville, Ky., both in Official Classification and Southern territories? 138 TEST QUESTIONS 29. To what fact did the Virginia Corporation Commission give particular weight in prescribing rates for the carriers operating within that state? 30. A shipment of hemlock lumber moving in carloads via the Norfolk and Western Railway for a distance of 161 miles would be charged for on what basis? 31. Outline in general the basis employed in making intra- state rates within South Carolina. 32. What adjustment is prescribed by the Alabama Rail- road Commission? 33. Does the state of Mississippi prescribe an individual classification ? 34. (a) What separate classifications are authorized within the state of Louisiana? (b) In what territory is each applica- ble? 35. What is the substance of the Louisiana Railroad Com- mission's report relative to water transportation within that state ? 36. To what extent are independent water carriers under the jurisdiction of the Interstate Commerce Commission? 37. Where is the most aggressive water competition expe- rienced? 38. What is the usual outcome of a rate war between inde- pendent water carriers? 39. What means of transportation are still employed upon the inland waterways? 40. What constitutes the great majority of tonnage on the Ohio River? 41. Can the railroads meet the competition of the water carriers in so far as coal is concerned? 42. Enumerate the more important water lines operating upon the Ohio River. 43. Give a brief summary of conditions of water transpor- tation upon the Green and Barren rivers. 44. When was steam navigation first attempted upon the Mississippi River? 45. On what basis are the rates on show cases announced from Evansville, Ind., to Mammoth Cave, Ky., via the water lines ? TEST QUESTIONS 139 46. On what adjustment of differentials are the rates estab- lished by the Mississippi Valley Transportation Company to New Orleans related to the all-rail rates? 47. To what causes may be ascribed the remarkable falling off of traffic handled on the Mississippi River? 48. What are the rates on the first six classes from Padu- cah, Ky., to Perryville, Tenn., via the Tennessee River? 49. How are the rates published via the lines operating upon the Cumberland River? 50. By whom are the rates applicable via the water carriers from Mobile, Ala., to Montgomery, Ala., prescribed? 51. Give a brief summary of the conditions prevailing upon the Chattahoochee River. 52. Via what class of water carriers is transportation af- forded on the Flint River? 53. For how long has transportation by water upon the Savannah Railroad been in existence? 54. What line affords water service upon the Altamaha River? 55. How may insurance affect the patronage of water routes ? 56. What is the rate of insurance from St. Louis, Mo., to Memphis, Tenn.? 57. What are "dock to dock" rates? Are they subject to the requirements of the Interstate Commerce Commission? 58. Why do sailing vessels represent the cheapest means of conveyance upon the high seas? 59. To what class of traffic do sailing vessels and tramp boats cater? 60. How does the constructive mileage via the water-and- rail lines from New York City to Jacksonville, Fla., compare with the continuous mileage of the all-rail lines ? 61. What water service is accorded the city of Wilmington? 62. Are the water rates to Charleston, S. C, on the same level as those to Georgetown, S. C. ? 63. Give a brief summary of the conditions existing at Savannah, Ga., during 1911 with respect to water-borne traffic. 140 TEST QUESTIONS 64. What is the occasion of the establishment of water routes to and from Brunswick, Ga. ? 65. How do the water rates from New York City to Jack- sonville, Fla., compare with the rates to Tampa, Fla. ? 66. Via what routes is the bulk of traffic from Seaboard Territory to the Gulf ports, New Orleans and Mobile, for- warded ? 67. Give an illustration of the Diaking of rates under the absorption plan. 68. What are the class rates applicable from Reading, Pa., to New Orleans, La., in connection with the Morgan Line? 69. How much higher is the rate from Chicago, 111., to Jacksonville, Fla., via New York, than the rate to New York, proper ? 70. What adjustment is authorized for the use of a trunk line serving the Ohio River through Baltimore in making rates to the South Atlantic Ports? 71. What compels the comparatively low rates from New Orleans, La., to the South Atlantic Ports? CHAPTER X southeastern territoryi 1. Development of Rate Steuctuee The so-called Southeastern Territory embraces by far the greatest area of any rate-making territory in the southern states. In the early days, when the rate structure of this territory was being forged into a settled shape, Atlanta, Ga., marked the outpost at which the separate railroads and joint routes from the East met those from the West. In this way, Atlanta became the pivotal point of rate construction for rates from points outside of this territory to destinations therein. In other words, Atlanta was on the edge of that zone where a single railroad and its partners were in full control of the traffic situation. The early development, of course, brought about a more or less settled condi- tion with respect to the relationship in rates between cities in a given section and other cities in that section. This adjustment, which was effected long ago, was brought about because of the competition of the various markets for the trade of Atlanta and the competition of tlie carriers for the traffic. As a result, the rates 'See Map 5, Atlas of Traffic Maps. 141 142 FREIGHT RATES : SOUTHERN TERRITORY from Louisville, Ky., are made the same as tlie water-and-rail rates from Baltimore, Md., on the first six classes. The lettered classes have not been equal- ized, for the reason that the competition between the eastern and the western markets for the trade at Atlanta is in articles which move under the numbered classes. Few of the commodities moving under the lettered classes are produced in large quantities in the East. The equalization of rates is still further accounted for by the fact that by water and rail the distances from Baltimore to Atlanta and from Louisville to Atlanta were the same at that time. The prorating mileage from Louisville to Chattanooga was 336 miles, and from Chattanooga to Atlanta 138 miles, making a total of 474 miles from Louisville to Atlanta. The ocean carriers plying between Baltimore and Savannah had a constructive or prorating mileage between those points of 179 miles; adding to this the short-line dis- tance of 295 miles from Savannah to Atlanta made a distance of 474 miles, which was exactly the same as that from Louisville. The constructive water mileage from Baltimore to Savannah is now 250 miles. Originally the measure of the rates from the East to Atlanta, the difference in the transportation condi- tions considered, was approximately the equivalent of the water rates to Savannah, Brunswdck, or Charles- ton, and the rail rates inland. In other words, the rail lines met the competition of the water routes operating through any of the South Atlantic Ports. The demands of Atlanta, however, in the way of com- petition mth other cities in its section, combined mth the struggle betw^een the eastern and the western routes, have reduced the rates beloM^ that measure. Early in 1905, there were still further reductions brought about by the commercial and political interests of Atlanta. SOUTHEASTERN TERRITORY 143 These reductions are also reflected in the present rates to various other cities throughout the territory. As seen in the intrastate rates prescribed by the several commissions in Southern Territory, the primary basis for rate construction is the distance scale. The rates increase as the distance increases and that basis is not deviated from except where some compelling influence, such as water competition or market com- petition, intervenes and causes a departure from it. Thus, assuming that there is a single line of railroad from Baltimore to New Orleans with no competitive influence, the rates would be constructed on an ascend- ing scale, reaching its zenith at New Orleans. However, as there is actual water competition between these ports, the rates are depressed, not only between the port cities themselves, but as far inland as a combina- tion of rates to and from the port cities works into the interior to defeat the normal all-rail basis; the rates so established must be met by the all-rail lines if they are to participate in the traffic to such points. 2. DlPFEKENTIAL ADJUSTMENTS Another factor that played no small part in the present adjustment was the competition of the various kinds of routes — that of the all-water lines with the water-and-rail lines, the water-and-rail lines with the all-rail lines, and so forth. On the accompanying map are indicated some of the more important routes that could participate in the movement of freight from New York, N. Y., to Troy, Ala., from which it is apparent that all of the eastern lines are in competition for traf- fic to this territory. Prior to the establishment of agreements between the rail carriers and the water lines, some very dis- 144 FREIGHT RATES : SOUTHERN TERRITORY astrous rate wars v/ere engaged in, which resulted in good to no one. These wars were disposed of to a great extent, however, when the differential routes, all water and rail-and-water, from the East were conceded dif- ferentials under the all-rail rates by the all-rail lines to points in competitive territory. These differential routes are occasionally termed the rate-making routes. SOUTHEASTERN TERRITORY 145 (a) Via South Atlantic Ports The rates to points in Southeastern Territory, via the rail-and-water routes, are usually the following differentials less than the all-rail rates : Classes 1 2 3456 A B C D EH F Differentials.. 12 10 98655 5 5 5 6 8 10 {b) Via Gulf Ports In so far as coastwise traffic via Gulf ports to South- eastern Territory is concerned, the Mallory Steamship Company, operating between New York and Mobile, Ala., is the controlling factor. Within a considerable radius of Mobile and Pensacola, Fla., combinations of local rates, using the water-line rates to the ports and the rail-line rates therefrom, are considerably less in some instances than those in effect via the water routes operating through the South Atlantic Ports. On other traffic, the Mallory Steamship Company has been con- ceded differentials under the rail-and-water rates of the lines operating through tlie South Atlantic Ports. The present adjustment is as follows : To all destinations on and east of a line drawn from Chattanooga, Tenn., through Birmingham, Calera, Selma, and Montgomery, Ala., to Pensacola, Fla., the following differentials less than the standard rail-and- water rates apply: Classes 123456 A B CD EH F Differentials 54 3 2222 2 2 2 2 2 4 It should be understood in this connection, however, that combinations can also be effected through Atlantic ports by applying the water-line rate to the port and the rail-line rate therefrom, resulting in figures which the all-rail lines do not attempt to meet. 146 FREIGHT RATES : SOUTHERN TERRITORY 3. Adjustment from New York City via Water AND Rail The testimony introduced in the original long-and- short-haiil investigation by the Interstate Commerce Commission in 1887 tended to show that the first-class rate from New Y^'ork to Atlanta, which at that time was $1.14 per 100 pounds, was constructed by adding the steamship's proportional rate, which under its tariff at that time was 45 cents from New York to Savannah, to the rate authorized by the Georgia Rail- road Commission from Savannah to Atlanta, which was 69 cents, producing a through rate of $1.14 from New York to Atlanta. The 45-cent steamship rate plus the Georgia Commission rate of 64 cents made a through rate of $1.09 from New York to Macon. The steamship rate of 45 cents plus the local rate of 51 cents made a through rate of 96 cents from New York to Augusta. These rates were made at that time on the exact com- bination,^ this adjustment having been in effect since April 10, 1884. The water-and-rail rates from Balti- more, Md., and the all-rail rates from Louisville, Ky., and Cincinnati, Ohio, were made on the same basis in so far as the numbered classes were concerned. The following scale was effective for more than twenty years : Classes 1 2 3 4 5 6 Rates 107 92 81 68 56 46 The following rates became effective on February 1, 1905: Classes 1 2 3 4 5 6 New York rates 105 93 83 68 56 44 Baltimore rates 98 87 78 63 62 41 Louisville rates 98 87 78 63 52 41 Cincinnati rates 98 87 78 63 52 41 New Orleans rates 94 83 74 59 48 37 >1 I. C. C. Rep., 78. SOUTHEASTERN TERRITORY 147 The reduction in rates to Atlanta thus established was brought about not by any increase in the competi- tion of rail or rail-and-water rates but was the result of a compromise between the carriers on the one hand and the Railroad Commission of the state of Georgia, the Atlanta Freight Bureau, and the municipal authori- ties of the city of Atlanta on the other. In the opinion of the Interstate Commerce Commission in the case of the Morgan Grain Company v. A. C. L. Ry. Co.,^ the circumstances surrounding the adjustment of rates to Atlanta in 1905 are described in detail and the conclu- sion of the Commission is expressed as follows: The evidence is clear that the charges in each of the com- plaints that the Atlanta reductions of February 1, 1905, were voluntarily accorded by the railroad companies and that the latter agreed that the reduced rates were just, reasonable, and compensatory have not been sustained, and that the reductions were the result of an adjustment or compromise made by the carriers in view of conditions prior to February 1, 1905, and not of their free choice. The present rates to Atlanta, therefore, cannot be looked upon as voluntary rates nor can they be looked upon as rates resulting from competition. The reduc- tions that took place in 1905 from West and East were 9, 5, 3, 5, 4, and 5 cents per 100 pounds on Classes 1 to 6, respectively. These reductions in rates to Atlanta, already relatively low, resulted in propor- tionate reductions in the rates to Columbus, Macon, Augusta, Rome, Athens, Dalton, Cedartown, Carters- ville, Cordele, Americus, Albany, and many other places. This necessarily brought about considerable shrinkage in the revenue of these carriers on inter- state business hauled to these points. 319 I. C. C. Rep., 460. 148 FREIGHT RATES : SOUTHERN TERRITORY The rates originally established from New York to Atlanta "\da the South Atlantic Ports were naturally equalized by the rail-and-water lines operating through the Virginia Ports and were, soon after their estab- lishment, applied as maxima to intermediate points. The provisions of the fourth section were observed by these lines. Such, however, was not the case with the lines operating through the ports of Charleston and Savannah, although the lines so operating are the most direct of any which serve Atlanta from New l^ork. Subsequently, upon the adoption of the reduced basis of rates to Atlanta, the lines serving the Virginia Ports via their routes maintained rates to intermediate points which were upon a higher scale than that to Atlanta. The privilege to continue this adjustment, however, has been denied, as will be indicated in the synopsis of the Commission's order, in so far as rates involved in the adjustment prescribed in this chapter are concerned. The basis for the rates to Atlanta being thus arrived at, rates to other destinations in Southeastern Territory are made in many cases with relation to these rates, as is indicated in the bases for rate construction set forth in Table 31. TABLEfSl Bases for Rate Construction from New York, N. Y., to Southern Common Points From NewYork,N.Y., To Rate Basis Applicable Anniston, Ala Same as original or standard rates to Atlanta, Ga. Augusta, Ga Agreed rates made on Savannah combination, using the water rate to Savannah and the rail rate beyond Birmingham, Ala. . . Same as the original or standard rates to Atlanta, Ga. Chattanooga, Tenn. All-rail and rail-and-water rates are the same as those to Atlanta, Ga., via rail and water SOUTHEASTERN TERRITORY 149 TABLE 31— Continued Bases for Rate Construction from New York, N. Y., to Southern Common Points From New York, N.Y., To Rate Basis Applicable Cordova, Ala ( Jasper, Ala ( The following differentials higher than the rail-and-water rates to Birmingham, Ala.: Classes 123456ABCDEHF Differentials. .. 24 20 18 16 14 12 12 12 7 6 14 16 14 with maximum Ohio River combination or Columbus, Miss. , rates Demopolis, Ala The following differentials higher than the rates to Selma, Ala.: Classes 123456ABCDEHF Differentials... 10 865444444448 with lowest combination as marimum Dothan, Ala J Ozark, Ala • V Troy, Ala ) The following differentials higher than the rates to Montgomery, Ala. : Classes 123456ABCDEHF Differentials... 12 10 8886655568 10 Gadsden, Ala Same as original or standard rates to Rome, Ga. Huntsville, Ala 2 cents per 100 pounds higher than the original or standard rates to Chattanooga, Tenn. Macon, Ga The following differentials less than the rates to Atlanta, Ga.: Classes 1234 56ABCDEHF Differentials ...32221 1215562 10 Montgomery, Ala. i Selma, Ala > OpeUka, Ala ) The following differentials over the rates to Atlanta, Ga.: Classes 123456ABCDEHF Differentials ...3211110000000 Tuscaloosa, Ala .... The same rates as to Columbus, Miss., subject to the lowest com- bination as a maximum Valdosta, Ga 1 Waycross, Ga . . . . ( The same rates as to Albany, Ga., but not in excess of the actual combination through South Atlantic Ports Slight variations in some of the classes may be noted. This may be attributed to the fact that in some cases the Interstate Commerce Commission has ordered read- justments in interstate rates and the bases have not been revised in accordance therewith. This is due to the fact that the carriers have held the readjustments in abeyance until the effect of the compliance with the Interstate Commerce Commission's order as to the petition of these carriers to violate the fourth section of the Act to Regulate Commerce can be determined. In such cases, however, a modification of the differentials to accord with the existing rates is all that will be necessary. 150 FREIGHT RATES : SOUTHERN TERRITORY Although the rates to quite a number of other base and common points of the South are constructed in the same way as to the points indicated in Table 31, it has seemed desirable to arrange these alphabetically in a separate table rather than to include them in Table 31. Accordingly, in Table 32 will be found a list of such points; also the base rate that is to be applied in each case. Assuming, for example, that it is desired to construct the rates to New Decatur, Ala., Table 32 indi- cates that the Huntsville basis is to be applied; referring to Table 31, we find that the rates to Hunts- ville are to be constructed 2 cents per 100 pounds TABLE|32 Other Common Points Taking the Same Bases of Rates as Those to Points Shown in Table 31 Fbom New York, N. Y., Apply Same Rates AS TO Shown in Table 31 TO Alabama City Ala. Gadsden ..Ala. Albany Ga. Americus . ..Ga. Americus (1 Columbus u Asylum u Macon u Athens ti Atlanta u Attalla Ala. Birmingham ..Ala. Avondale u « « Bessemer u u u Boyce Tenn. Chattanooga* .Tenn Boyles Ala. Birmingham ..Ala. Cartersville Ga. Rome . ..Ga. Cedartown tl u « Chattahoochee U Atlanta u Citico Tenn. Chattanooga* .tenn. Cordele Ga. Americus . ..Ga. Dalton a P ■512 ^^ PQ 09 12 as 2 o O 09 a So OO o o e 09 1-3 O £ a S MoS 13 o *^ ^ -3 6 -9 P. 0) a O PU a e) >> o ■>-> 09 a -- as g go' 09 OQ 03 o OS 3 ^ d C9 o 3 CO ^ 43 43 40 43 43 37 37 37 37 25 39 39 37 34 37 48 48 39 42 35 44 35 44 44 39 37 32 38 32 38 32 38 32 38 32 38 27 38 32 43 32 38 32 38 27 33 32 38 .. 44 32 38 38 43 32 38 .. 53 32 43 32 43 32 43 30 37 27 38 .. 41 30 37 301 .. 32 39 32 39 61 50 61 .. 61 50 61 50 56 50 61 .. 61 49 61 50 61 50 55 50 61 50 .. 50 61 50 69 50 61 50 84 .. 61 .. 61 50 66 50 60 .. 57 49 60 50 34 41 34 41 35 41 46 35 41 33 36 34 41 40 41 35 41 35 41 30 36 34 41 46 48 35 41 40 45 35 41 52 .. 40 .. 40 41 40 41 34 40 35 .. 46 48 34 40 61 50 61 50 43 44 39 51 39 39 32 38 32 39 31 52 32 38 42 46 61 50 .. 47 61 50 .. 54 61 .. 61 .. .. 50 39 42 .. 39 42 .. 39 42 73 38 42 73 33 33 39 42 36 39 39 42 39 42 73 30 33 39 42 44 47 39 42 40 43 39 42 .. 51 39 42 36 39 44 47 39 42 30 33 44 47 39 42 36 41 36 41 36 39 39 42 502 35 41 39 42 36 41 57 57 34 41 34 41 43 49 36 39 57 60 39 42 49 49 84 'Governed by the Southern Classification. 'L. C. L. SOUTHEASTERN TERRITORY 183 It ia an undisputed fact that competition in articles that are given commodity rates is felt to a greater extent than in articles given class rates and tliis is practically the only reason for the establishment of commodity rates. The class rates under which the traffic would ordinarily be handled are too high to stim- ulate its movement and, as a result, the consimiers purchase at the nearest market, where the most advan- tageous price and transportation costs can be secured. Sugar, for example, is a staple article, which is used in quantities in every household throughout the land. In addition to our own local supply produced in the southern states, cane sugar is imported in immense quantities from the West Indies, Central America, and South America, through the ports of New York and New Orleans. Immense warehouses are located at these ports, from which the sugar is distributed as the occasion demands. At Chicago, St. Louis, Cincinnati, and other inland cities large jobbing houses specialize in this com- modity. While it is no more than just that producing centers should preserve the advantage of their location and reap the benefits thereof, the fact that so much- of Southern Territory is accessible by means of water routes has resulted in the eastern markets, such as New York, Philadelphia, and Boston, reaching some parts of this territory on more advantageous terms than can New Orleans or Mobile, although the latter points are located in the territory and the haul to all points is considerably less. Thus, we find a local producing center competing for the trade supremacy of this district, in so far as this commodity is concerned, with an importer located at some distance from the territory. To confine the trade to these two competitors would be manifestly unfair in so 184 h'RElUHT KATE«: SOUTHERN TEliKlTOKY far as the jobbers of the Middle West are concerned and accordingly they are admitted to the territory on prac- tically the same terms. The lines serving these outside markets well realize that the dealers they are serving are selling in competition with the home product and there- fore make their rates as low as possible in order to enable such dealers to meet the price made on the local product. If the dealers in the South could buy the product more advantageously in the South, it neces- sarily follows that not a pound of sugar would move from the northern markets. 5. Differential Rates via Gulf Routes To all destinations on and east of a line drawn from Chattanooga, Tenn., through Birmingham, Calera, Sel- ma, and Montgomery, Ala., to Pensacola, Fla., the rates are made the following differentials less than the standard water-and-rail rates: Classes 12 3 456ABCDEHF Differentials.... .5 432222 2 2 2 2 2 4 6. Fourth Section Orders As the adjustments from this territory are largely premised upon the rates established from New York, in such cases where an order of the Interstate Com- merce Commission has been entered as to the rates from New York (see Appendix B), the order automat- ically affects the rates from such points as base thereon. CHAPTER Xll SOUTHEASTERN TERRITORY— Continued 1. Westeen Rate Adjustments A comparison of the adjustments discussed in this chapter with those employed from the Eastern Port Cities affords an effective illustration of the competi- tion of producing centers. The manufacturers and jobbers located in the Middle West are in competition for the trade in Southeastern Territory with the mer- chants of Boston, NeAv York, Philadelphia, and Balti- more. As these latter cities have the advantage of location, having access to the cheaper all-water or rail- and-water routes, unless the advantage was minimized in some way, western manufacturers and jobbers would be handicapped to an extent that they could not over- come. (a) Ohio River Adjustment As Louisville, Ky., is the initiative point in fixing the rates from the other Ohio River Crossings and from the Mississippi River Crossings, on which are hinged the rates from the territory lying north, northwest, and west thereof, the present discussion will be confined to the rates from that point. Baltimore v. Louisville. — Under the system of con- structive distances, as before stated, the haul of the 185 186 FREIGHT RATES : SOUTHERN TERRITORY rail-and-water routes from Baltimore via the South Atlantic Ports to Atlanta is approximately the same as the rail distance from Louisville to Atlanta. On this principle, it inevitably came about that the competitive rates from Baltimore via rail-and-water routes to At- lanta were made the same as the rates from Louisville to Atlanta, and vice versa. Atlanta's inbound adjust- ment from the East and from the West is today fixed under this principle. This adjustment has included the numbered classes and most of the commodities. Practically all of the commodities of the lower classes are essentially western products, that is, products which, although not neces- sarily peculiar to the central West, are produced in far greater volume there than in the East, and which find the lines of least resistance in reaching the south- east over western lines. Li Table 45 are given the class rates applicable from Louisville to the more important base points in South- eastern Territory. In this adjustment, the possibility of the middle western merchant taking advantage of the ocean rates must be taken into account. For years, Pittsburgh, Chi- cago, and related points have shipped via eastern ports to southeastern points. An extreme illustration of this competition is found in the rail rates from Cincinnati to Augusta, Ga., which are influenced to some extent by the ability of the Cincinnati merchants to ship to Balti- more by rail, thence by ocean to Savannah, and thence by river to Augusta. Partly as a result of this and partly as a result of the influence of the all-water rates to Augusta from the Eastern Port Cities, the rail rates from Cincinnati and other western points to Atlanta and Augusta are relatively adjusted. The rates to Augusta are on a slightly higher basis than those to SOUTHEASTERN TERRITORY 187 TABLE 45 Class Rates from Louisville, Kt., to Southern Common Points From Louisville, Ky., To Albany, Ga Anniston, Ala Atlanta, Ga Augusta, Ga Bainbridge, Ga. . . . Birmingham, Ala. . . Bremen, Ga Brunswick, Ga Calera, Ala Chattanooga, Tenn. Columbia, Ala Columbus, Ga Cordova, Ala Cuthbert, Ga Dalton, Ga Dothan, Ala Eufaula, Ala Fitzgerald, Ga Florala, Ala Florence, Ala Ft. Gaines, Ga Ft. Valley, Ga Griffin, Ga Hawkinsville, Ga. . . LaG range, Ga Jacksonville, Fla. . . Macon, Ga Maplesville, Ala. . . Marietta, Ga Milledgeville, Ga. . . Montgomery, Ala. . Moultrie, Ga Mulga, Ala Newnan, Ga Port Royal, S. C . . . Prattville, Ala River Jet., Fla Roanoke, Ala Rome, Ga Savannah, Ga Tuscaloosa, Ala .... Waycross, Ga West Point, Ga Wetumpka, Ala. . . . Wilmington, N. C. . Rates in Cents per 100 Pounds Except AS Noted 1 Classes' 456ABC D EHF« 123 98 98 103 132 79 128 95 100 70 132 103 79 128 97 136 103 143 115 79 115 128 125 123 134 95 103 111 106 110 98 143 97 125 95 110 120 125 98 95 108 135 131 108 82 107 96 87 78 87 78 90 81 112 98 69 58 113 102 80 75 80 60 60 53 115 98 90 81 69 58 112 100 84 75 116 102 90 81 124 110 92 78 69 68 101 91 112 100 111 100 107 96 119 107 80 75 90 81 100 86 87 78 96 87 87 78 124 110 84 70 111 100 80 75 97 86 96 72 111 100 87 78 80 75 94 79 116 107 116 105 97 88 68 53 78 65 63 52 63 52 65 54 82 68 47 40 84 70 70 58 57 53 44 38 83 70 65 54 47 40 82 68 63 52 86 71 65 54 90 74 66 62 47 40 75 63 83 68 83 68 78 65 88 72 70 58 65 54 78 67 63 58 70 58 62 50 90 74 57 48 83 68 70 58 70 58 69 65 83 68 63 52 70 58 64 55 90 74 85 67 67 55 41 32 52 37 41 28 41 28 43 28 55 40 30 28 55 42 46 35 47 43 29 20 55 40 43 28 30 28 55 40 41 28 58 43 43 28 59 44 59 60 30 23 51 36 55 40 53 40 52 37 56 42 46 35 43 28 49 43 50 38 46 30 41 28 59 94 36 34 53 40 46 35 49 33 62 39 53 39 41 28 46 35 42 31 59 44 52 37 46 33 42 33 36 28 36 28 38 30 44 33 34 26 29 24 24 26 29 22 48 35§ 301 38 29 51 36 29 25 44 33 38 30 34 26 47 36 36 28 47 36 38 30 45 35 64 44 29 25 46 34 47 36 48 33 42 33 25 25 21 29 26 22 31 24 31 26 31 31 21 30 31 29 29 51 37i 33 38 29 38 30 47 33^ 46 35 40 32 34 26 45 35 40 32 48 36 38 29 39 31 55 37 48 33 36 28 38 29 40 31 45 35 47 34 39 31 25 23 27 23 25 26 32 27 28 22 31 27 311 25 27 31 29 24 25 25 31 29^ 27 21 60 60 58 48 45 48 48 48 48 50 50 52 61 69 57 39 39 44 66 69 63 40 40 50 52 52 66 34 39 42 65 66 57 50 50 52 39 39 44 63 64 64 48 48 48 65 73 63 60 50 52 70 70 62 61 61 80 34 33 42 60 60 60 64 64 64 64 68 58 60 60 58 68 73 67 40 40 50 50 50 52 61 56 66 54 54 62 54 54 56 44 39 44 70 70 62 47 49 56 64 68 64i 40 40 50 49 44 54 64 64 66 64 68 68 48 48 48 40 40 50 52 39 54 63 69 62 68 70 m 49 44 64 26 35 46 'Governed by the Southern Classification. 'Per barrel. 188 FREIGHT RATES : SOUTHERN TERRITORY Atlanta, although the route to Augusta through Atlanta is 170 miles longer than to Atlanta, That this low combination of rail-and-water rates from the West to Augusta is possible is due to the fact that the rail lines from Cincinnati and other western points to eastern ports are able to make relatively low rates as measured by distance because of the denseness of the traffic and the influence of the lake-and-canal rates to all Trunk Line ports. Here we have the influence of the Great Lakes shown as far south as Augusta. As is well known, the rates from all points north of the Ohio River and east of the Mississippi River to the ports of Boston, New York, Philadelphia, Baltimore, Norfolk, and Newport News are based on the rates from Chi- cago to New York, which rates are controlled by the Great Lakes and the Erie Canal. The ports south of Norfolk, however, do an export business. Mobile and New Orleans being in active competition with the North Atlantic Ports for the export grain business of the West. As they have a longer ocean voyage to the European ports, it is necessary for the roads serving them to make rates even below the rates to the North Atlantic Ports. Favored by down grade and no moun- tain barriers, they have been able to do this. Mr. James J. Hill expressed this advantage of the Gulf ports very graphically when he said on one occasion: ''You can kick a barrel of flour at Minneapolis and it will roll to New Orleans." The basis under which the rates in Table 45 are estab- lished in the first instance is indicated in the bases for rates given in Table 46. This basis varies, in some few instances, from the current rates, which may be attrib- uted to the same causes as affect the Eastern Cities adjustment. SOUTHEASTERN TERRITORY 189 TABLE 46 Bases for Class Rates from Louisville, Ky., to Points in Southeastern Territory Differentials in Cents per 100 Pounds FuoM Louisville, Except as Noted Ky., to the Fol- lowing Base Remarks Points Classes> 1 2 3 4 5 6 A B CD E H ¥* Adel, Ga 3 3 2 2 2 2 2 4 2 2 4 4 4 Over Valdo8ta,Ga.,rates Albany, Ga 20 17 15 13 11 9 9 4 3 3 10 10 6 Over Macon, Ga., rates Andalusia, Ala . See Note 1 Arlington, Ga 42 38 34 31 25 19 19 14 8 7 24 28 14 Over Eufaula, Ala., rates for beyond; see Note 2 Bainbridge, Ga 34 25 20 20 18 14 12 10 i 7 17 30 13 Over Montgomery, Ala., rates Birmingham, Ala. . . See Note 3 Bremen, Ga 12 5 5 .. 10 Over Atlanta, Ga., rates; see Note 4 Calera, Ala See Note 1 CarroUton, Ga 12 11 10 9 9 8 8 8 4 4 12 15 8 Over Atlanta, Ga., rates Chattanooga, Tenn. . , See Note 5 Columbia, Ala 29 25 17 18 16 12 12 fi 3 3 15 1« 5 Over Eufaula, Ala., rates Cordova, Ala . See Note 6 Cuthbert, Ga 25 22 19 17 14 12 12 9 6 5 13 14 12 Over Eufaula, Ala., rates for beyond Dalton, Ga See Note 7 Demopolis, Ala 5 4 4 3 3 2 2 2 1 1 2 2 2 Over Selma, Ala., rates Dothan, Ala 4 4 4 4 3 3 3 3 3 2 4 4 6 Over Bainbridge, Ga., rates Elberton, Ga 14 13 11 10 8 7 4 5 4 4 6 6 8 Over Augusta, Ga., rates; see Note 8 Fitzgerald, Ga 20 17 14 12 9 7 7 3 2 2 10 10 4 Over Albany, Ga., rates Florence, Ala See Note 9 Fort Gaines, Ga. . . . 12 11 10 10 9 8 8 8 4 4 10 10 8 Over Eufaula, Ala. .rates Fort Valley, Ga 25 22 19 18 14 12 12 9 6 5 14 14 12 Over Macon, Ga., rates; see Note 2 Georgetown, S. C. . . 15 14 12 10 8 7 3 6 5 4 6 6 8 Over Charleston, S. C, rates; see Note 10 Griffin, Ga 22 21 19 18 14 10 12 10 3 3 14 18 6 Over Macon, Ga., rates; see Note 2 Macon, Ga 5 3 3 2 2 2 2 2 2 2 2 4 Over Atlanta, Ga., rates Maplesville, Ala.. . . . . See Note 11 Marietta, Ga , , See Note 12 Milledgeville, Ga. . . 2 2 2 2 .. 4 See Note 13 Montgomery, Ala . . , t • . See Note 14 Moultrie, Ga . . See Note 15 Mulga, Ala 18 15 12 10 8 6 6 6 6 5 8 10 12 Over Bessemer, Ala., rates; see Note 2 Newnan, Ga See Note 16 Piedmont, Ala 5 5 5 .. 5 Over Anniston,Ala., rates Prattville, Ala 12 10 8 8 8 8 o 5 o 5 5 5 10 Over Montgomery, Ala., rates River Jet., Fla See Note 17 Roanoke, Ala 22 21 19 18 14 10 11 10 3 3 14 18 6 Over Opelika, Ala., rates; see Note 2 Silver Creek, Ga See Note 18 South Atlantic Ports See Note 19 Tuscaloosa, Ala. . . . , See Note 20 Union Springs, Ala.. 33 20 21 20 18 14 13 9 6 5 18 13 11 Over Eufaula, Ala., rates, see Note 21 Waycross, Ga See Note 22 West Point, Ga See Note 23 Wetumpka, Ala. . . . 10 10 10 5 5 5 5 5 5 5 5 5 10 Over Montgomery, Ala., rates •Governed by the Southern Classification. *Per barrel. 190 FREIGHT RATES : SOUTHERN TERRITORY ?^NoTB 1. — From Louisville and Cincinnati the rates are not made higher than the lowest combination and not higher than the local rates of the Louis- ville & Nashville Railroad, observing the Montgomery differentials as between Louisville and Cincinnati interchangeably, the totals thus made being not less than the rates to Montgomery. The rates on Classes A and B to Anda- lusia and on B and D to Florala are now at a variance with this basis and are subject to revision. Note 2. — The lowest combination is observed as maximum. Note 3. — The rates to Birmingham are made the same as those from Memphis in line with the Chattanooga rates as the latter existed prior to September 1, 1888, but not higher than the Montgomery rates. The rates from Louisville are made 4 cents per 100 pounds higher than the rates from Memphis. Note 4. — On Classes B, C, D, and F the rates are 12 cents, 5 cents, 5 cents, and 10 cents, respectively, higher than the Atlanta rates. The rates on other classes are made on the lowest combination. Note 5. — The rates originally were made the same per mile as those to Atlanta, except that on Classes 4, 5, 6, and H the rates were not higher than those to Birmingham. An order by the Interstate Commerce Commission to reduce the numbered class rates to the extent of 6 cents, 5 cents, 4 cents, 3 cents, 2 cents, and 1 cent on the respective classes became effective July 15, 1910. Note 6.— The rates are made the Birmingham differentials higher than the Memphis rates, but are not in excess of the lowest combination. The Birmingham rates are observed as maximum. Note 7. — The rates are made the same as those to Atlanta, but do not exceed the Chattanooga combination. Note 8. — The rates so arrived at are not higher than the Virginia Cities combination, applying the CaroUna base rates to the Virginia Cities. Note 9. — The initiative point here is Memphis, the rates from which, while primarily the local rates of the Southern Railway, cover also the competitive conditions found at destination. The rates from Nashville are made the same as those from Memphis, except that on Classes B, C, D, and F the rates are 2 cents per 100 pounds, or 4 cents per barrel, less than the Memphis rates. The rates from Louisville are made the following differentials higher than the rates from Nashville: Classes 1 2 3 4 5 6ABCDEHF Differentials.... 35 27 25 21 18 13 8 12 5 On Classes B, C, D, and F the rates are made 4 cents per 100 pounds, or 8 cents per barrel, higher than the Memphis rates. The rates from St. Louis are made the following differentials higher than the rates from Louis- ville: Classes 1 2 3 4 56ABCDEHF Differentials.... 23 19 17 12 10 8 7 8 7 5 8 10 14 Note 10. — The rates so made do not exceed the lowest combination, including combinations on Richmond, Va., using the Carolina base rates thereto. SOUTHEASTERN TERRITORY 191 Note 11. — From St. Louis and Cairo the rates are not higher than the lowest combination or higher than the rates of the Mobile & Ohio Railroad to Adams, Ala., or higher than the Montgomery differentials as between St. Louis and Cairo interchangeably. The rates from Louisville are made the same as the rates from Cairo. Note 12. — The rates are made the same as the local rates of the Louis- ville & Nashville Railroad, but not in excess of combinations, or lower than the rates to Atlanta. Note 13. — The rates are made 107 per cent of the rates to Macon, Ga., with maximum differentials above Macon of the following amounts on the classes indicated: Classes A B C D F Differentials.. 2 2 2 2 4 Note 14. — Generally speaking, the rates are made with respect to the competition via Mobile and the Alabama River, but also in fair relation with the rates from the East to Montgomery and again measured by a com- parison of Montgomery with other southeastern common points. Note 15. — The rates are made the same as those to Tifton, Ga., but are not to exceed the lowest combination. Note 16. — On Classes C, D, and F and on specific commodities the rates are made by adding arbitrary figures (less than the locals) to the rates to Macon, Columbus, or Atlanta, as the case may be. All other rates are made on the basis of the lowest combination. Note 17. — The rates are made the same as those to the other landings on the Apalachicola and Chattahoochie rivers, but not exceeding the local rates of the Louisville & Nashville Railroad or the lowest combinations and observing the Montgomery differentials as between Louisville and Cincinnati interchangeably. Note 18. — On Classes C, D, and F the rates are the same as those to Rome, Ga. Other class and commodity rates are made on the basis of the lowest combination. Note 19. — The rates on the numbered classes and on Classes B, E, and H are calculated by adding the rates from Chicago to New York to the steamer rates from that port to Charleston and from such aggregates are deducted the rates from Chicago to Louisville, the balance being the rates from Louisville. The rates on Classes C, D, and F are to figured permit the movement from the Ohio River as against the movement from com- peting markets in the north by rail to the North Atlantic Ports and thence by steamer. The rates on Class A are arbitrarily fixed. Most of the com- modity rates are established under similar conditions. Note 20. — From Cincinnati the rates on the numbered classes are fixed under the local bases of the Cincinnati, New Orleans & Texas Pacific Railway and the Alabama Great Southern Railroad. The rates on the lettered classes are made the same as the rates from St. Louis. From St. Louis the rates on the numbered classes are the same as the rates from Cincinnati. The rates on the lettered classes are the same as the rates from St. Louis to Montgomery. From Louisville, the rates are made the Montgomery differentials less than the Cincinnati rates; from Cairo and group the rates are made the following differentials less than the rates from St. Louis: Classes 1 2 3 456ABCDEHr Differentials 15 12 10 8 7^.6,4 5 5 5 5 10 10 192 FREIGHT RATES : SOUTHERN TERRITORY Note 21. — The rates so made do not exceed the lowest combination on Columbus, Eufaula, or Montgomery. Note 22. — The rates are made on the Brunswick combination, but are not to exceed the rates to Valdosta, Ga. Note 23. — On specific articles the rates are made fixed arbitraries higher than the Opelika, Ala., rates. Other rates are made on the lowest combination . As a great number of points take the same basis for rate construction as do those indicated in Table 46, it has seemed desirable to arrange these points alpha- betically in a separate table rather than to include them in Table 46. A list of these points and the base rates to apply in each case are indicated in Table 47. TABLE 47 Other Common Points Taking the Same Bases of Rates as Those to Points Shown in Table 46 From Louisville, Ky., to Alabama City Ala. Americus ■. . Ga. Anniston Ala. Asylum Ga. Athens " Attalla Ala. Augusta Ga. Avondale Ala. Barclays " Bessemer " Boyles " Cartersville Ga. Cedartown " Chattahoochee " Columbiana Ala. Columbus Ga. Cordele « Dawson " Decatur Ala. Dublin Ga. East Birmingham Ala. East Point Ga. Eufaula Ala. Ft. McPherson Ga. Gadsden Ala. Gate City " Apply Same Rates as Shown in Table 46 to Anniston Ala. Albany Ga. (See Note 1) Milledgeville Ga. Augusta " Anniston Ala. Macon Ga. Birmingham Ala. Anniston " Birmingham " u u Rome Ga. Atlanta " (See Note 2) Macon Ga. Americus " Albany " Florence Ala. Hawkinsville Ga. Birmingham Ala. Atlanta Ga. Macon " Atlanta " Anniston Ala. Birmingham * SOUTHEASTERN TERRITORY 198 TABLE 47— Continued Other Common Points Taking the Same Bases of Rates as Those to Points Shown in Table 46 From Louisville, Ky.. TO Girard Ala. Grasselli . " Hawkinsville Ga. Helena " Hapeville " Huntsville Ala. Irondale " Ironaton " Jasper " Jenifer '" LaGrange Ga. Lanette Ala. Lockhart " McRae Ga. Montezuma " North Birmingham Ala. New Decatur " Opelika " Oxford " Oxmoor .\Ia. Ozark " Paxton Fla. Phoenix City Ala. Pratt City " Quitman Ga. Rome " RufEner Ala. Samson " Selma " Sheffield " South Athens Ga. Spocari Ala. Talladega " Thomas " Thomasville Ga. Troy Ala. Tuscumbia " Valdosta Ga. Washington " Wheeling Ala. Woodlawn " Woodward " Apply Same Rates as Shown in Table 46 to Columbus Ga . Birmingham Ala. (See Note 3) (See Note 4) Atlanta Ga. Florence Ala. Birmingham " Anniston " (See Note 6) Anniston Ala. (See Note 6) AVest Point Ga. Florala Ala. (See Note 7) (See Note 8) Birmingham Ala. Florence " Columbus Ga. Anniston Ala. Birmingham " (See Note 9) Florala Ala. Columbus Ga. Birmingham Ala. (See Note 10) Atlanta Ga. Birmingham Ala. Florala " Montgomery " Florence " Augusta Ga. (See Note 11) Anniston Ala. Birmingham ; . . . " (See Note 12) (See Note 9) Florence Ala . (See Note 12) Elberton Ga. Birmingham Ala. u « Note 1. The rates are made the same as those to Atlanta, Ga., except that on Class H the rates are arbitrarily made. Note 2. From Louisville and Cincinnati the rates are made on the lowest c-ombination, but not higlier than the local rates of the Louisville & 194 FREIGHT RATES : SOUTHERN TERRITORY Nashville Railroad, observing the Moutgomery differentials as between Louisville and Cincinnati interchangeably. Note 3. Generally, the rates are made the same as those to Americus, Ga. Note 4. The rates are made the same as those to Fitzgerald, Ga., but not higher than the lowest combination. Note 5. The rates are made the Birmingham differentials higher than the Memphis rates but not in excess of the lowest combination, Birmingham rates being observed as maxima. Note 6. The rates are made on the lowest combination. (The Inter- state Commerce Commission has recently ordered rates to be made the same as those to Atlanta, but the order is not effective at the time of this publica- tion.) Note 7. The rates are made the same as those to Fitzgerald, Ga., but not higher than the lowest combination. Note 8. The rates are made the following differentials higher than the rates to Macon, Ga., with the lowest combination as maximum. Classes 1 2 3 4 5 6ABCDEHF Differentials 25 22 19 18 14 12 12 9 6 5 14 14 12 Note 9. The rates are made the following differentials over the rates to Bainbridge, Ga., but not to exceed the lowest combination. Classes 1 2 3 4 5 6ABCDEHF Differentials 44443 3 3332446 Note 10. The rates are made the following differentials over the rates to Albany, Ga.: Classes 123450ABCDEHF Differentials 20 17 14 12 9 7 7 3 2 2 10 10 4 Note 11. The rates are made the following differentials over the rates to Sekna, Ala.: Classes • 12 34 5 6ABCDEHF Differentials 5443322211222 Note 12. The rates are made the following differentials over the rates to Albany, Ga.: Classes 123456ABCDEHF Differentials 20 17^14 12 977322 10 10 4 Taking the route formed by the Louisville & Nashville Railroad from Louisville, Ky., to Montgomery, Ala., and the Seaboard Air Line Railway from Montgomery to Savannah, Ga., representative rates to the more impor- tant points as well as to some of the local points are in- dicated in their geographical order in Table 48. SOUTHEASTERN TERRITORY 195 TABLE 48 Rates from Louisville, Ky. to Savannah, Ga., and Inter- mediate Points via the Louisville & Nashville Railroad to Montgomery, Ala., and via the Seaboard Air Line Railway from Montgomery to Savannah, Ga. From Louisville, Ky., TO Rates in Cents per 100 Pounds Except AS Noted Decatur, Ala.'. . . . Birmingham, Ala.^. Oxmoor, Ala.'. . . . Calera, Ala.' Montgomery, Ala.' Roba, Ala.* Hurtsboro, Ala.*. . Plains, Ga.* Americus, Ga.*. . . . DeSoto, Ga.* Cordelp, Ga.* Pitts, Ga.* Helena, Ga.* Vidalia, Ga.* Collins, Ga.* Daisy, Ga.* Cuyler, Ga.* Meldrim, Ga.*. . . . Savannah, Ga.*. . . 1 3 Classes' 5 6 A B C D E H F' 79 79 79 100 98 150 141 143 123 146 123 146 143 144 136 131 120 118 95 69 69 69 80 87 58 58 58 60 78 133 122 121 109 125 112 107 96 127 115 107 96 127 115 124 110 125 114 118 109 113 105 103 95 100 80 94 75 47 40 30 47 40 30 47 40 30 57 53 47 62 50 41 101 85 65 88 73 59 91 76 61 78 65 52 94 79 63 78 65 52 93 79 63 90 74 59 104 84 66 100 82 64 96 79 88 73 59 85 72 57 70 58 46 26 36 62 51 23 29 25 28 34 26 28 34 43 51 28 34 26 50 55 41 41 54 41 46 51 38| 37 42 33 48 52 39 37 42 33 48 52 39 44 45 35 51 56 39 53 53 38 52 37| 48 49 36 46 48 35 35 38 29 21 34 22 39 22 39 25 52 22 44 36 76 36 69 34 71 29 60 ^^ 74 29 60 34§ 74 31 70 34i 66 331 64 33 61 31 55 30f 54 25 40 33 42 39 44 39 44 52 66 39 44 74 74 73 74 73 69^ 60 58 75 70^ 60 58 75 70J 70 62 75 70 70 68 66 67i 58 64 55 62i 40 50 'Governed by the Southern Classification. 'Per barrel. 'On the Louisville & Nashville Railroad. *0n the Seaboard Air Line Railwav. (b) Rates from Louisville, Ky., and Other Base Points To Anniston, Ala. — The class rates to Anniston, Ala., are as follows: Classes.. 1 2 3 4^f5;S61A B C D E H F Rates... 98 87 78 63 52 41" 28 36 28 24 48 45 48 The foregoiiig rates are the same as the rates to At- lanta, Ga., except that on Class H the rates are made 3 cents less than the rates to Atlanta. 196 FREIGHT RATES: SOUTHERN TERRITOliV The same rates as to Anniston also apply to the fol- lowing points in Alabama: Alabama City Gadsden Oxford Attalla Ironaton Silver Run Barclays Jenifer Talladega Curry Munford TrussviUe To Albany, Ga. — The through class rates to Albanj Ga., are made the follomng differentials over the Ma con, Ga., rates: Classes 1 2 3456ABCDEHF Macron rates 103 90 81 65 54 43 28 38 30 26 50 50 52 Differentials 20 17 15 13 11 9 9 4 3 3 10 10 6 Through rates 123 107 96 78 65 52 37 42 33 29 60 60 58 The same rates as to Albany, Ga., also apply to Americus, Cordele, and Dawson, Ga. To Atlanta, Ga. — The class rates to Atlanta, Ga., art^ made the same as the rail-and-water rates from Balti- more, Md., and are on the following basis: Classes ..1234 5 6ABCDEHF Rates ... 98' 87' 78' 63' 52' 41' 28' 36' 28= 24' 48' 48' 48» The same rates as to Atlanta also apply to the follow- ing points in Georgia: Armour East Point Howell Cartersville Federal Prison Lindale Cedartown Fort McPherson Rome Chattahoochee Hapeville Roseland (p'ulton Co.) Dalton' To Charleston, S. C. — The class rates to Charleston, S. C, are as follows: Classes .1 2 3 4 5 6ABCDEHF Rates . . 95 80 75 70 58 46 35 38 29 25 40 40 50 The class rates to Charleston were originally made bv fixing the rates from Chicago based on the rail-and- 'Louisville to Montgomery. 'Fixed arbitrarily. 'Not to exceed the Chattanooga Combination SOUTHEASTERN TERRITOKY 197 water rates via Baltimore. The rates from the Ohio River Crossings were then made less than the rates from Chicago to the extent of the full tariff from Chicago to the Ohio Eiver Crossings. However, some changes have been made since the original basis was established, as, for example, in com- pliance with an order of the Interstate Commerce Com- mission, effective August 1, 1908, the rates on Class B were arbitrarily advanced 3 cents per 100 pounds; on Classes C and D, 2 cents per 100 pounds; and on Class F, 4 cents per barrel. The class rates to Charleston from Memphis, Tenn., and Vicksburg, Miss., are the following differentials un- der the rates to Louisville : Classes 123456ABCDEHF Rates 444444 4 4 4 4 4 4 8 The same rates as to Charleston also apply to the fol- lowing points: Beaufort, S. C. Goodrich, S. C. Port Royal, S. C. Brunswick. Ga. Jacksonville, Fla. Read Phosphate Works, Burtons Mill, S. C, Mayport, Fla. S. C. Fernandina, Fla. Milldale, Fla. Savannah, Ga. Florida Transfer, Fla. (C. L. only) Ten Mile, S. C. (When for beyond) To Birmingham, Ala. — Memphis, Tenn., is the base point for rates to Birmingham, Ala., the class rates being as follows : Classes . . 1 2 3 4 5 6 A B C D E H F Rates . . . 79 69 58 47 40 30 28 34 26 22 39 39 44 The rates from Memphis ha\ing been established, the rates from Louis\dlle, Ky., and the Ohio River Cross- ings taking the same rates are made uniformly 4 cents per 100 pounds higher than the rates to Memphis. The same rates as to Birmingham also apply to tho following points in Alabama: 198 FREIGHT RATES : SOUTHERN TERRITORY Avondale Gate City Pratt City Bessemer Grasselli Ruffner Boyles Helena Thomas Dolcito Junction Hillman Wheeh'ng East Birmingham Irondale Winetka Ensley North Birmingham Woodlawu Ensley Junction Oxmoor ■ '1 Woodward To Chattanooga, Tenn. — Louisville, Ky., is the base point, the class rates being as follows: Classes ..1 2 3 4 5 6ABCDEHF Rates ... 70 60 53 44 38 29 20 29 25 21 34 39 42 The class rates from Memphis, Tenn., to Chattanooga, Tenn., are made the following differentials under the rates from Cairo, 111.: Classes 12 3456 A B C D E H F Differentials 12 3 4 4 4 4 4 4 8 The above basis applies from the Ohio River Cross- ings to Chattanooga only. The rates from points taking Ohio River Crossings rates to points in what is known as the Chattanooga Group are the following differentials higher than the rates from the Ohio River Crossings to Chattanooga, proper: Classes 123456ABCDEHF Differentials 654321 To Macon, Ga. — The through class rates to Macon, Ga., are made the following differentials over the At- lanta, Ga., rates: Classes 12 3 4 5 6ABCDEHF Atlanta rates 98 87 78 63 52 41 28 36 28 24 48 4S 48 Differentials 533222.. 222224 Through rates 103 90 81 65 64 43 28 38 30 26 50 60 62 The same rates as to Macon also apply to the follow ing points: SOUTHEASTERN TERRITORY 199 Athens, Ga. Eufaula, Ala. (proper) Opelika, Ala. Augusta, Ga. Girard, Ala Pho<^nk City. Ala. Columbus, Ga. (proper)'' To Decotur, Florence, Huntsville, New Decatur, Shef- field, and Tuscumhia, Ala. — The class rates from Mem- phis, Term., to Florence, Sheffield, and Tuscumbia, Ala., are as follows: Classes ..1 2 3 4 5 6ABCDEHF Rates ... 44 42 33 26 22 17 1.5 25 21 17 22 28 34 The class rates from Nashville are made the same as those from Memphis, except that on Classes B, C, D, and F the rates are 2 cents per 100 pounds, or 4 cents per barrel, less than the rates from Memphis. The rates from Nashville are as follows : Classes ..1 2 3 4 5 6ABCDEHF Rates ... 44 42 33 26 22 17 15 23 19 15 22 28 30 The through class rates from Memphis to Decatur, New Decatur, and Huntsville are the following differ- entials higher than the rates from Memphis to Florence: Classes 1234 5 6ABCDEHF Rates from Memphia to ^ < ■ ' FloreiK;e 44 42 33 26 22 17 15 25 21 17 22 28 34 Differentials 10 8 6 5 3 3 2 3 3.. Through rates 54 50 39 31 25 20 17 25 21 17 25 31 34 The class rates from Nashville to Decatur, New De- catur, and Huntsville are the same as the rates from Memphis to Florence. The class rates from Louisville and the Ohio River Crossings west thereof are the following differentials higher than the rates from Nashville, except as noted: *The above basis does not apply from Cincinnati, from which point rates are made the Montgomery differentials higher than the rates to Louisville. The Montgomery differentials are as follows: Classes I 2 3 4 5 «.\BCDEHF Differentials . . 10 10 10 S 7 « 4 2 2 2 4 4 4 200 FREIGHT RATES : SOUTHERN TERRITORY Classes ....123466ABCDEHF Differentials 35 27 25 21 18 13 8 4« 4» 4« 12 5 8» The class rates from Cincinnati to Florence, Sheffield, Tuscumbia, Decatur, and New Decatur are made the Montgomery differentials higher than the rates to Louis\alle. The Montgomery differentials are as fol- lows : Classes 1 2 3 4 5 6 A B C D E H F Differentials. 10 10 10 8764 2 2 2 4 4 4 The class rates from Cincinnati to Huntsville are the same as the rates from Louisville. The sam.e rates as to Decatur also apply to Gunters- ville, Hobbs Island, Gunters Landing, and Wyeth City, Ala. The same rates as to Huntsville also apply to Chase, Ala. To Demopolis, Ala. — The through class rates from Louisville, Ky., to Demopolis, Ala., are made the follow- ing differentials higher than the rates to Selma, Ala.: Classes 1 23456ABCDEHF Selma rates 98 87 78 62 50 41 28 34 26 22 44 39 44 Differentials 5443322211222 Through rates 103 91 82 65 53 43 30 36 27 23 46 41 46 To Milledgeville, Ga. — The class rates from Louisville, Ky., to Milledgeville are: Classes ..1 2 345 6ABCDEHF Rates ... 110 96 87 70 58 46 30 40 32 28 54 54 56 The above rates are made 107 per cent of the rates from Louisville to Macon, M'ith maximum differentials above the Macon rates of 2 cents on Classes A, B, C, and D, and 4 cents on Class F. 'Higher than the rates from Memphis. SOUTHEASTERN TERRITORY 201 To Tuscaloosa, Ala. — The numbered class rates froii^ St. Louis, Mo., to Tuscaloosa, Ala., are made the same as the rates from Cincinnati, Ohio. The lettered class rates are the same as those from St. Louis to Mont- gomery. The class rates from Louisville, Ky., and Jeffersou- ville, Ind., are made the Montgomery differentials less than the Cincinnati rates. The Montgomery differ- entials are as follows : Classes 1 2 3 456ABCDEHF Differentials. 10 10 10 8 7 6 4 2 2 2 4 4 4 The class rates from Evansville and Mount Vernon, Ind., and Henderson and Owensboro, Ky., are made the same as the rates from Louisville, Ky. The class rates (except on Class H) from Cairo and Brookport, 111., Birds Point and Belmont, Mo., and East Cairo, Columbus, Hickman, and Paducah, Ky., are made the current Mississippi Valley differentials less than the rates from St. Louis, Mo. The Missis- sippi Valley differentials are as follows: Classes 1 2 3456ABCDEHF Differentials. 15 12 10 8 7 6 4 5 5 5 5 10 10 The class rates from Memphis, Tenn., are made 4 cents per 100 pounds less than the rates from Cairo, 111. (c) Bases for Rates from Points Related to Louisville From Cincinnati, Ohio. — The class rates from Cincin- nati, Ohio, are made the same as those from Louisville, Ky., except that to Montgomery Sub-Territory** the following differentials over the Ijouisville rates apply: Classes 1 2 3456ABCDEHF DifferentiaLs. 10 10 10 8 7 6 4 2 2 2 4 4 4 "See Map 5, Atlas of Traffic Maps, 202 FREIGHT RATES: SOUTHERN TERRITORY From Lexington and Frankfort, Ky. — The class rates from Lexington and Frankfort, Ky., are made the same as those from Cincinnati, Ohio, except that on Classes C, D, and F to Montgomery Sub-Territory^ the rates are 2 cents per 100 pounds, or 4 cents per barrel, lower than the rates from Cincinnati, or in other \vords, the same as those from Louisville, Ky. The rates from the follomng points are made the same as the rates from Louisville, Ky. : Belmont, Mo. East Cairo, Ky. Mound City, 111. Birds Point, Mo. Evansville, Ind. Mount Vernon, Ind. Brookport, 111. Henderson, Ky. New Albany, Ind. Cairo, 111. Hickman, Ky. Owensboro, Ky. Columbus, Ky. Jeffersonville, Ind. Paducah, Ky. From St. Louis, Mo. — The class rates from St. Louis, Mo., are made the following differentials higher than the rates from the Ohio Elver Crossings: Classes 123456ABCDEHF Differentials. 23 19 17 12 10 8 7 8 7 5 8 10 14 From Memphis, Tenn. — The class rates from Mem- phis, Tenn., are made 4 cents per 100 pounds, or 8 cents per barrel, less than the rates from Louisville, Ky., ex- cept that to points on and south of the line of the Sea- board Air Line Eailway from Kiver Junction to Fernan- dina, Fla., the rates are 1 cent higher than those from New Orleans, La., on sugar and molasses. From Nashville, Tenn. — The class rates from Nash- \dlle, Tenn., are made the follomng differentials less than the rates from Louisville, Ky., except as noted : Classes ....1 2 3 4 5 6ABCDEHF Differentials 35 30 25 22 18 13 8 8 7 7 15 21 14 The rates are not to be less per mile than the rates from Louisville, Ky. 'See Map 5, Atlas of Traffic Maps. SOUTHEASTERN TERRITORY 203 From New Orleans, La. — To Attalla and Anniston, Ala., and groups, Chattanooga, Tenn., Dalton, Cham- bers, Chattahoochie, and Kome, Ga., the rates are the same as those to Atlanta. To Huntsville, Decatur, Flor- ence, Sheffield, and Tuscumbia, Ala., the rates are the same as those to Chattanooga, but are not higher than the local scale of rates on the Louisville & Nashville Railroad from New Orleans to Decatur, or higher than the Memphis combination. To points on and south of the line of the Seaboard Air Line Railway from River Junction to Fernandina, Fla., the rates are made the same as those appljdng from Nashville, Tenn. To Bir- mingham and group, and Montgomery and Selma, Ala., the rates on the numbered classes are made the same as the rates from Cincinnati to Birmingham. The rates on the other classes and on all the commodities are the same as the rates from Memphis, Tenn. To all other destinations the rates are the same as those cur- rently in effect from Memphis, Tenn. Certain commodity rates, notably on sugar, rice, mo- lasses, and tropical fruits, are made with regard to the rates from the Eastern Cities and the South Atlantic Ports. From Vickshurg, Natchez, Greenville, and Jackson, Miss. — The rates are made the same as those from New Orleans, La., except that to points on and south of the Seaboard Air Line Railway from River Junction to Fernandina, Fla., inclusive, the Memphis rates are applied. From Mobile, Ala. — To points on a line from Chat- tanooga through Rome and Atlanta, Ga., and Opelika, Ala., the rates are made the following differentials be- low the New Orleans rates: Classes 1 2 3 456ABCDEHF Differentials.. 10 10 10 10 5 5 4 4 4 4 5 10 8 204 FREIGHT RATES : SOUTHERN TERRITORY Various commodities take special differentials and others take class differentials, but the rates are not less than those from the South Atlantic Ports. To all other destinations the rates are made the differentials named under the New Orleans rates without regard to the rates from the South Atlantic Ports. From Pensacola, Fla. — To Albany, Ga., the rates are made the same as those from Mobile, but not higher than the combination of rates to and from River Junc- tion, Fla. To South Atlantic coast points and to Flor- ida destinations, the rates are made the following dif- ferentials less than the rates from Mobile: Classes 123456ABCDEHF Differentials 7777443 3 3 3 4 7 6 The rates to all other destinations are the same as the rates from Mobile. (d) Adjustment from Mississippi Valley Points From Gulfport, Miss. — The rates are made the same as the rates from New Orleans, La. From Helena, Ark. — The rates are made 1 cent per 100 pounds higher than the rates from Greenville, Miss. From Meridian, Miss. — The rates are made the same as the rates from Mobile, Ala., with continuous locals and combination as maxima. There are exceptions on a few commodities. From Columbus, Miss. — To all points on and east of the Chattanooga-Birmingham-Selma-Montgomery-Pensa- cola Line, the rates on substantially all articles manu- factured at Columbus are made the same as the rates from Greenville, Miss., but not less than those from Meridian, Miss. SOUTHEASTERN TERRITORY 205 From Corinth, Miss. — To substantially the entire ter- ritory, tlie rates on articles manufactured thereat are made the same as the rates from Memphis, Tenn. The same basis also applies on grain, except that to South Atlantic coast points the rates are 3 cents higher than the Memphis rates. From Ellisville, Hattiesburg, Laurel, and Newton, Miss. — The rates are made the same as the rates from Vicksburg, Miss. From junction points in West Tennessee north of Jackson. — To practically the entire territory, the rates on substantially all commodities of manufacture and pro- duction are made the same as the rates from Cairo or Louisville. From Jackson, Tenn. — The Memphis rates apply on barrel material, engines, machinery, and furniture. On classes and other commodities the Cairo rates apply, except that to the Huntsville, Decatur, and Florence groups the Memphis rates are authorized. From Johnsonville, Tenn. — The rates are made 2 cents per 100 pounds less than the rates from Padu- cah, Ky. From Perryville, Tenn. — The rates are made 2 cents per 100 pounds less than the rates from Cairo. From non-competitive points, the lowest combination applies, except that in various cases covering com- modity rates (such as on lumber and on some manu- factured articles on which the rates are made with relation to those from adjacent common points) the basis is the lowest combination with continuous mileage rates, where such exist, as maxima. To intermediate points, the basis is the lowest com- bination with continuous mileage rates, where such are applicable, as maxima. 206 FREIGHT RATES : SOUTHERN TERRITORY (e) Adjustment from Kentucky-Tennessee Territory From Nashville, Tenn. — The basis has been shown under that from the Ohio River Crossings, because the relationship is so rigidly maintained. From Clarksville (depot), Tenn. — The rates are made the following differentials higher than the rates from Nashville : Classes 1 2 3456ABCD EHF Differentials... 11 11 11 6644 4 4 4 6 6 7 From junction points generally, and from a large number of local points intermediate to the Ohio River, rates are made in close relationship to the Ohio River or to some point taking the same rates. For instance, the rates from central Kentucky junctions are made the same as the rates from Cincinnati, or from Lexing- ton, or from Louisville, as the case may be. Some places carry such a basis with exceptions. Again, the rates from some of these points are made low differ- entials higher than the rates from the Ohio River. From some of the Tennessee points, the rates are made with relation to basing points within that state. For example, some of the rates from Columbia, Tenn., are made with, relation to those from Nashville; rates from Knoxville are made fixed differentials over the rates from Chattanooga, and the like. To points intermediate to the basing points, the basis is the lowest combination with continuous mileage rates, where such are applicable, as maxima. (/) Adjustment from Central Freight Association and Western Territories The basis for rates from the so-called Central Freight Association Territory is the lowest combination on the SOUTHEASTERN TERRITORY 207 Ohio Eiver or the Virginia Gateways using the full rates from said basing points. In a few instances, notably from Chicago, Milwaukee, Indianapolis, and related points, there are in effect proportional rates to the Ohio River (subject to the Southern Classifica- tion) which range below the local rates thereto and which permit of the publication of through rates. From the territory generally, however, the local rates up to the river crossings or Virginia Gateways (subject to the Official Classification) are applied both in mak- ing and dividing the rates. Through tariffs cannot readily be published because of the classification dif- ferences. The proportional rates from some of the more im- portant points in Central Freight Association Territory to the Ohio River Crossings are indicated in Table 49. TABLE 49 Proportional Class Rates from Points Named to Ohio River Crossings To Ohio River Rates in Cents peh . 100 Pounds Except AS Noted Crossings From Classes 1 1 2 3 4 5 6 A B C D E H F' Chicago 35 30 22 15 13 10 12 12 10 10 13 15 20 Peoria 35 30 22 15 13 10 12 12 10 10 13 15 20 Indianapolis 22 19^ 17^ 11 8^ 7 8 8 5 6 9 9 10 Davenport 41 35 26 18 15 12 14 14 12 12 15 17 24 Milwaukee 41 35 26 18 15 12 14 14 12 12 15 17 24 'Governed by the Southern Classification. 'Per barrel. These proportional rates are applicable to all the Ohio Eiver Crossings, from Cairo, 111., to Cincinnati, Ohio, inclusive, and are combined with the published rates applying from the various crossings. 208 FREIGHT RATES : SOUTHERN TERRITORY 2. Outbound Adjustment from Southeastern Territory The general basis for outbound rates from South- eastern Territory to points north of the Ohio and Potomac rivers and west of the Mississippi River corre- sponds with the inbound basis; that is to say, the class and a few commodity rates northbound to the North Atlantic Ports, the Eastern Cities, the Virginia Cities, interior eastern points, the Ohio River Crossings, and the Mississippi River Crossings correspond with those in the reverse direction. The northbound commodity rates generally, however, do not cover the same com- modities as the southbound rates, and are not to be compared therewith. While the same general rela- tionship applies to a given destination or section as between the common points, entirely different elements enter into the considerations which determine the meas- ure of the rates, and for this reason commodity rates in one general direction should rarely be associated with those in another. For illustration, while the rates on an article of com- mon production at Macon, Atlanta, Birmingham, or Chattanooga to the Ohio River are made mth regard each to the other, the determining causes for the rates to the Ohio River do not, in essence, enter into those making the rates to the East. The commodity rates to the Ohio River are fixed with regard to the competi- tion that will have to be met at the Ohio River and at points north. The rates made to Memphis, New Orleans, etc., take into account the competition that is met locally at those points, or from points west of the Mississippi River, or from points of production at or north of the Ohio River. As a rule, the rates are fixed to each of the Ohio River Crossings in due rela- tion one to the other; that is, if a certain rate is neces- SOUTHEASTERN TERRITORY 209 sary to Cincinnati to cause a free movement to that point, the rates to Louisville, Evansville, and Cairo (except as noted below) are readjusted to correspond. Similarly, while under ordinary conditions the rates to the eastern territories, including the Virginia Gate- ways, are adjusted without particular regard to the rates made to the West, but to meet conditions found in the East, the ordinary relationship between the ter- minal points is maintained. It is almost invariably the case that the rates to Central Freight Association Territory are adjusted on the lowest combination through the Ohio River Cross- ings. The measure of competition which is met as con- cerns each of the commodity rates determines whether it is necessary to establish proportional rates to the Ohio River below the full rates thereto. A great ma- jority of the commodity rates are issued to the Ohio River proper, the same figures being charged on through traffic to destinations north, but in some cases proportional rates are established, the most notable of these being the adjustment of the cotton factory prod- ucts. The rate from the great central group of south- em mills to Chicago was made the same as the rate from the New England mills to Chicago. From this figure was deducted the proportional rate charged by the lines from the north bank of the Ohio River, the balance being the figure used to establish a pro- portional rate to the Ohio River, which is used in con- structing through rates to all destinations in the north and central West. An exception is above noted concerning the relative basis as between the Ohio River Gateways. This ex- ception relates to the lumber and pig iron rates. In the case of the first, because of competition from the Arkansas and Louisiana mills, from which a low rate 210 FREIGHT RATES : SOUTHERN TERRITORY was made to Cairo and increasing rates to each of the Ohio River Crossings above Cairo, a similar adjust- ment has been followed by the southern lines, which make a lower rate to Cairo than to any of the crossings, the rate increasing at each crossing above until Cin- cinnati is reached. The through rates to destinations north are established on the lowest combination and apply via all open routes. For the pig iron rates, de- signed to enable a free movement as against the northern furnaces, there is not a regular adjustment between the several crossings, either to those points proper, or in the basing rates used in constructing through rates on the lowest combination. An important deviation from the principle of con- structing rates to and from local or intermediate points as heretofore outlined is found in the rates on articles manufactured or produced at such points which are in commercial competition with those made or produced at adjacent common points. The element of market competition early led the railroads to the conclusion that the manufacturers and producers at non-competitive points could not successfully compete with those at competitive points, unless they were given rates relatively the same as those of the adjacent competitive points. A cotton factory, for example, located at a station on the Southern Railway, say be- tween Atlanta and Macon, has its rates adjusted to be not higher than those of the competing factory at Macon when the movement is northward through Atlanta, and not higher than the rates from Atlanta when the move- ment is through Macon. In a broad sense, therefore, as concerns such cases, there is no variation from the long-and-short-haul principle of the Act to Regulate Commerce. SOUTHEASTERN TERRITORY 211 Many of the lines serving Southern Territory publish numerous commodity tariffs, among the more important of which are those applying upon cotton, cotton factory products, Imnber, and domestic and tropical fruits. The number of these tariffs is being increased from year to year. The tariff publications of the various committees in this territory are very voluminous and in general cover class rates and general commodity rates. 3. Fourth Section Orders The orders of the Interstate Commerce Commission affecting adjustments in this territory are set forth in Appendix B. CHAPTER Xm carolina rate territory 1. Basic Principles The rates between various gateways (Virginia Cities, Paint Rock, N. C, Johnson City, Tenn., Atlanta, Athens, and Augusta, Ga., and Charleston and Columbia, S. C.) applicable on traffic originating at or destined to points within this territory are the local rates of the initial lines in most instances; in some cases, however, they are the proportional rates made less than the local rates. As a rule, these rates are graded according to distance, although the competition between the various places within the territory has often brought about figures below the level of the distance tariffs of the several railroads. Generally, the rates at intermediate points do not exceed those at points beyond; but there are exceptions in the case of places intermediate to Wilmington and other points in eastern North Carolina located on navigable waters, and at Columbia, S. C, which is affected also by water competition. The rates from the Virginia Cities to these water-competitive places are all made on a differential relation to the rates from Baltimore, which are directly affected by water competition. Also, the rates from the Virginia Cities to certain of the points intermediate to the south- eastern basing points (Atlanta, Athens, Augusta, Charleston, Savannah, etc.) are made higher than the rates to said cities. 212 CAROLINA RATE TERRITORY 213 2. Adjustment from Eastern Port Cities The rail-and-water rates from tlie Eastern Port Cities to Wilmington, Fayetteville, and New Bern, N. C, and Columbia, S. C, are made to meet the competition via the water lines. The rail-and-water rates from Baltimore are made differentials over the rates from the Virginia Cities, and in turn the rates from Philadelphia and New York are made differentials over the rates from Baltimore, and the rates from Boston differentials over the rates from New York. The all-rail rates to all of these destinations are then adjusted on differen- tials higher than the port rail-and-water rates. 3. From Interior Eastern Points East of Buffalo- Pittsburgh Territory The all-rail rates from this territory are made as fol- lows: From points taking the same proportions up to the Potomac Gateways, as from Boston, New York, Philadelphia, or Baltimore, respectively, the respective all-rail port rates are applied therefrom. From points taking higher proportions to the gateways than from the ports, the through rates are made as much higher than the port rates as represented by the differences in the proportions. The all-rail rates having been fixed, the rail-and-water rates are operated on differen- tials less than the rates via all rail. 4. From Buffalo-Pittsburgh Territory The rates from this territory, heretofore described, are made on combinations to the various gateways, plus the established local or proportional rates south, 214 FREIGHT RATES : SOUTHERN TERRITORY observing as maxima the following differentials over the ciorresponding all-rail rates from New York: Classes 1 2 3 4 5 6 Differentials 15 13 11 9 7 6 The rates so constructed are operated by all-rail and rail-and-water lines alike. TABLE 50 Class Rates from Richmond, Va., to North and South Carolina Destinations From Richmond, Va., To Clio, S. C McColl, S. C.» Hubbard, S. C Maxton, N. C Bennettsville, N. C. . . . Everetts, N. C Cheraw, S. C Osborne, N. C Norwood, N. C Albemarle, N. C Whitney, N. C Darlington, S. C Gibson, N. C Pembroke, N. C Moss Neck, N. C Lumberton, N. C Hope Mills, N. C Alma, N. C Old Hundred, N. C. .. Marion, S. C Wilmington, N. C Page's MiU, S. C.» Florence, S. C Zebulon, N. C.» Youngsville, N. C Henderson, N. C Ridgeway, N. C.« Rates in Cents per 100 Pounds Except as Noted Classes' 1 2 3 4 5 6ABCDEHF* 80 70 60 50 40 32 22 28 25 22 41 47 50 68 58 48 38 33 25 18 24 23 20 33 38 46 80 70 60 50 40 32 22 28 25 22 41 47 50 50 40 31 26 20 15 13 13 13 11 22 23 22 80 70 60 50 40 32 22 28 25 22 41 47 50 61 51 42 32 28 21 17 22 21 18 28 32 42 CAROLINA RATE TERRITORY 215 TABLE 50— Continued Class Rates from Richmond, Va., to North and South Carolina Destinations From Richmond, Va., To Rates in Cents per 100 Pounds Except as Noted Classes' 123456ABCDEHF* Jonesboro, N. C Manley, N. C Aberdeen, N. C Lemon Springs, N. C Sanford, N. C Starr, N. C 68 58 48 38 33 25 18 24 23 20 33 38 46 Hemp, N. C Hallison, N. C Candor, N. C.^ Asheboro, N. C Asbury, N.C." Newton, N. C 80 70 60 50 41 32 22 30 27 23 43 51 53 Winston-Salem, N. C 61 51 42 32 28 21 17 22 21 18 28 32 42 Lincolnton, N. C 80 70 60 50 41 32 22 30 27 23 43 51 53 Mt. Holly, N. C.5 78 68 58 48 40 31 21 26 27 23 40 49 53 Orangeburg, S. C 85 75 62 50 41 34 24 29 28 24 44 47 50 Sumter, S. C 82 72 62 50 40 32 23 29 28 23 43 47 50 Woodford, S. C.^ 85 75 62 50 41 34 24 29 28 24 44 47 50 'Governed by the Southern Classification. *Per barrel. 'Intermediate points. 5. From Ohio River Crossings (a) From Cincinnati, Ohio The base rates from Cincinnati to the Virginia Gate- ways were calculated bj'^ assimilating the rates from Chicago to the Virginia Cities, proper, to the Southern Classification and deducting therefrom the proportional rates from Chicago to Cincinnati (applicable on south- 216 FREIGHT RATES : SOUTHERN TERRITORY ern business^), the resultant balance being base rates. When for destinations on and north of an imaginary line dra^vn from Cleveland, Tenn., through Murphy, N. C, Walhalla, Seneca, Anderson, Belton, Abbeville, Greenwood, Newberry, Alston, and Columbia, S. C, to Wilmington, N. C, the base rates from Cincinnati to At- lanta were calculated by adding the following differ- entials to the rates from Nashville to Atlanta, proper : Classes 123456ABCDEHF Differentials.... 6533332 2 2 2 2 2 4 When for destinations south of the Walhalla- Wilming- ton Line, the Cincinnati- Atlanta base rates are the same as the rates from Cincinnati to Atlanta, proper. In a similar way, the base rates from Cincinnati to Athens, Augusta, and Charleston were worked out. The base rates from Cincinnati to Paint Rock, Tenn.- N. C, are 75 per cent (representative of comparative distances) of the base rates to Atlanta. The rates to Johnson City, Tenn., are the same as those to Paint Rock. The rates to Columbia are the rates to that point, proper. Table 51 sets forth the basing rates from Cincinnati when for destinations on and north of the Walhalla- Wilmington Line, while Table 52 sets forth the rates when for destinations south of this line. While the class basing rates only are exhibited, numer- ous commodity figures are, in effect, worked out as described. (h) From Covington, Newport, Louisville, and Lexing- ton, Ky., and Jeffersonville, Ind. The rates from Cincinnati having been fixed, the rates from Covington, Newport, Louisville, and Lexington, iSee page 217 CAROLINA RATE TERRITORY 217 TABLE 51 Basing Rates"'from Cincinnati, Ohio, When for Destina- tions On and North of the Walhalla- WiLMiNGTON Line From Cincinnati, Ohio, TO Virginia Cities Paint Rock, N. C. . Johnson City, Tenn. Atlanta, Ga Augusta, Ga Athens, Ga Charleston, S. C . . . . Columbia, S. C . . . . Rates in Cents per 100 Pounds Except AS Noted 12 3 4 Classes' 5 6 A B C D E H P 32 28 22 15 12 10 10 15 11 11 14 12 22 54 48 43 35 29 24 17 23 17 14 26 28 29 72 64 67 46 38 32 22 30 23 19 35 37 38 79 69 61 49 42 34 22 32 25 21 38 39 42 78 65 60 56 47 38 29 32 25 21 32 32 42 107 92 81 65 53 44 28 42 34 30 47 60 60 'Governed by the Southern Classification. 'Per barrel. TABLE 52 Basing Rates from Cincinnati, Ohio, When for Destina- tions South of the Walhalla- Wilmington Line From Cincinnati, Ohio, TO Virginia Cities Paint Rock,N. C { Johnson City, Tenn j Atlanta, Ga Augusta, Ga Athens, Ga Charleston, S. C Columbia, S. C Rates in Cents per 100 Pounds Except AS Noted Classes' 1 23456ABCDEHF' 32 28 22 15 12 10 10 15 11 11 14 12 22 74 65 59 47 39 31 21 27 21 18 36 36 36 98 87 78 63 52 41 28 36 28 24 48 48 48 103 90 81 65 54 43 28 38 30 26 50 50 52 95 80 75 70 58 46 35 38 29 25 40 40 50 107 92 81 65 53 44 28 42 34 30 47 60 66 'Governed by the Southern Classification. *Per barrel. 218 FREIGHT RATES : SOUTHERN TERRITORY Ky., and Jeffersonville, Ind., are made the same. All the Ohio River points below Louisville are made the following differentials higher than the rates from Cin- cinnati when the destination is on or north of the Walhalla- Wilmington Line : Classes 1 2 3 4 5 6 A B C D E H F Differentials. . 10 10 8 8 6 4 4 2 2 5 6 4 To territory south of the Walhalla- Wilmington Line, the rates from the lower Ohio River Crossings are the same as the rates from Cincinnati. (c) From Memphis, Tenn. The rates from Memphis to the territory on and north of the Walhalla-Wilmington Line are on the fol- lowing differential relation with Cincinnati: Classes 1 2 3 4 5 6ABCDEHF Over Cincinnati rates ..8 86 6 4 2.. 2.... 3 4.. Under Cincinnati rates 2 2 .. .. 4 The rates from Memphis to the territory south of the Walhalla-Wilmington Line are made the following dif- ferentials lower than the Cincinnati rates: Classes 123456ABCDEHF Differentials.... 4444444 4 4 4 4 4 8 6. From Gulf Ports From New Orleans, La., the rates are made the fol- lowing differentials higher than the rates from Atlanta, proper : Classes ...1 2 3 4 5 6ABCDEHF Differentials 26 23 21 20 13 13 10 10 10 10 12 18 20 The through rates so made shall not be less than the rates from Memphis, nor less than the following differ- entials over the rates from Montgomery: CAROLINA RATE TERRITORY 219 Classes ....1 2 3 456ABCDEHF Differentials 10 lu 10 10 5 5 4 4 4 4 5 10 8 From Mobile, Ala., and Pensacola, Fla., the rates are made the following differentials less than the rates from New Orleans: Classes 1 2 3 456ABCDEHF Differentials.. 10 10 10 10 5 5 4 4 4 4 5 10 8 Various commodity exceptions are provided. 7. From Mississippi Valley Territory From Greenville, Greenwood, Vicksburg, and Winona, Miss., the rates are the same as those from New Orleans. From junction points south of the Memphis Division of the Southern Railway and on and east of the Mobile & Ohio Railway, the rates are made the following differentials under the rates from New Orleans: Classes 1 2 3 456ABCDEHF Differentials 10 10 10 10 5 5 4 4 4 4 5 10 8 On specific articles manufactured at various points in Mississippi Valley Territory, the rates are made the same as those from Cairo, Memphis, Vicksburg, New Orleans, etc., as the case may be. Otherwise, through rates are made on the lowest combination from all points not specifically mentioned. 8. From Kentucky-Tennessee Territory (a) From Nashville, Tenn. When the destination is on or north of the Walhalla- Wilmington Line, the rates on Classes B, C, and D are made 2 cents less and on Class F 4 cents less than the rates from Louisville. 220 FREIGHT RATES : SOUTHERN TERRITORY The rates on other classes, to destinations south of the Virginia-North Carolina state line and north of Smithfield, Goldsboro, and Kinston, N. C, on the Atlantic Coast Line Kailroad, and Cary, N. C, on the Seaboard Air Line Railway, including Cary, are the same as the rates from Louisville, Ky. To points other than the Virginia Cities on and north of the Danville & Western Railway, including the Leaks- ville Branch, and to points on and north of the Southern Railway, from Danville to Norfolk, including the Vir- ginia and the Hitchcock Mill branches, and to stations on the Seaboard Air Line Railway and the Atlantic Coast Line Railroad in Virginia, the rates are made the following differentials less than the rates from Louisville : Classes 1 23456A E H Differentials 6533320 2 2 To all other destinations north of the Walhalla- Wilmington Line, the rates are made the following differentials less than the rates from Louisville: Classes 1 23456AE H Differentials Q^5 3 3 3 3 2 2 2 To that portion of Carolina Territory lying south of the Walhalla-Wilmington Line, the rates are made the following differentials less than the rates from Louis- ville : Classes .... 1 2 3 4 5 6 A B C D E H F Differentials 35 30 25 22 18 13 8 8 7 7 15 21 14 The maximum for each respective through rate is the same per ton per mile as that from Louisville. (h) From Clarksville, Tenn. To all destinations both north and south of the Walhalla-Wilmington Line, the rates are made the fol- CAROLINA RATE TERRITORY 221 lowing differentials higher than the rates from Nash- ville: Classes 1 2 3456ABCDEHF Differentials... 13 13 13 8 8 6 6 6 6 6 8 8 11 (c) From Knoxville, Tenn. To Carolina Territory south of the Walhalla- Wilmington Line, -the rates are made the following differentials higher than the rates from Chattanooga: Classes 123456ABCDEHF Differentials 12 976543 3 3 3 3 3 6 The rates are not higher than the rates from Nashville. To Carolina Territory on and north of the Walhalla- Wilmington Line, the rates are made the same as those from Chattanooga, although the exceptions to this basis are quite numerous. From other places the rates are made either in defi- nite relationship to the Ohio River, Memphis, or Nash- ville, or on the lowest combination. 9. Feom Southeastekn Territory {a) From Huntsville, Decatur, Sheffield, Florence, Tus- cumhia, and Riverton, Ala. The rates from Huntsville and Decatur, Ala., are made the same as the rates from Nashville. From Sheffield, Florence, Tuscumbia, and Eiverton, Ala., the rates are made the same as those from Nashville, except that on Classes B and F the rates are made 2 cents higher and on Classes C and D 1 cent higher than the Nashville rates. 222 FREIGHT RATES : SOUTHERN TERRITORY {h) From Chattanooga, Tenn. To points on and north of a line beginning at Paint Rock; thence via the Southern Railway, through Ashe- ville, Newton, Statesville, Salisbury, Greensboro, and Durham, N. C, to Raleigh, N. C. ; thence via the Atlantic Coast Line Railroad to Norfolk; and thence south of a line from Paint Rock, through Roanoke, to Ports- mouth, the rates are made the same as those from Atlanta. To points south of the above-described territory, except to destinations in Georgia, the rates are made the following differentials higher than the rates from Atlanta, with minimum through rates in certain cases: Classes 123456ABCDEHF Differentials 10 876543 3 3 3 4 4 6 To such Georgia destinations as are in Carolina Ter- ritory, the rates are made the following differentials over the Atlanta rates, mth rates to Elberton and Athens, Ga., as minima in certain cases : Classes . 1 2 3 4 5 6 A B C D E H F Differentials. . . 15 12 10 8 7 5 4 4 4 4 5 5 8 (c) From Atlanta, Athens, and Augusta, Ga., and Charleston, S. C. The rates from Atlanta, Athens, and Augusta, Ga., and Charleston, S. C, are the local rates or specific rates established by the individual lines. From other common and junction points, the rates are made either the same as or differentials higher than the rates from Atlanta or Chattanooga, as the case may be. From local points the rates are made with relation to those from the common points, either on a differential basis or on the lowest combination. TEST QUESTIONS These questions are for the student to use in testing his knowledge of the assignment. The answers shoula be written out, but are not to be sent to the University. 1. What is the largest rate-making territory in Southern Classification Territory? 2. What is the occasion of the prominence that Atlanta, Ga., enjoys as a rate-making point? 3. What in a measure fixes the rates from the West to Atlanta, Ga.? 4. How did the constructive mileage from Baltimore, Md., to Atlanta, Ga., compare with the actual mileage from Louis- ville, Ky,, to Atlanta, Ga.? 5. What causes occasion a departure from the distance principle of rate-making in the southeast? 6. What is a differential route? What led to the estab- lishment of differentials? 7. On traffic from Seaboard Territory to points adjacent to Mobile, Ala., and Pensacola, Fla., what route initiates the rates? 8. How were the rates from New York City to Atlanta, Ga., made in the first instance? 9. What causes led to a reduction in the original rates to Atlanta, Ga.? 10. If a reduction is made in the rates to Atlanta, Ga., will it result in a corresponding reduction in the rates to Rome, Ga.? 11. Was the long-and-short-haul clause observed on traffic from the East to Atlanta, Ga.? If so, to what extent? 12. Upon what basis are the rates to Anniston, Ala., con- structed? 223 224 TEST QUESTIONS 13. To what causes may deviations from the authorized basis of rate-construction be attributed? 14. What procedure would you follow if you desired to construct a rate from New York City to Ozark, Ala.? 15. What are the class rates from New York City via rail and water to Columbus, Miss.? 16. What are the commodity rates on iron and steel rails from New York City to Atlanta, Ga.? 17. On traffic originating at New York City, is there a definite relationship between the rates to Atlanta, Ga., and those to Montgomery, Ala.? 18. Are the rates to common points applied to local points throughout Southeastern Territory? 19. Upon what basis are rates constructed to local stations in Alabama located on the Atlantic Coast Line Railroad? 20. Is the long-and-short-haul clause observed as to rates on the route from New York, N. Y., to Memphis, Tenn.? 21. To what causes may the comparatively low rates to Memphis, Tenn., from the East be attributed? 22. Does the line of rates from New York City to stations on the route selected to Montgomery, Ala., appear reasonable to you? 23. To stations in Montgomery Sub-Territory beyond Montgomery, Ala., what basis is employed in constructing through rates from the East? 24. Via what port does the greatest volume of traffic to Southeastern Territory move in connection with the water-and- rail routes? 25. What adjustment is employed in constructing rates from Boston, Mass., and Providence, R. I.? 26. How, as a general rule, are rates from interior New England points constructed? 27. Is it necessary to place manufacturers of like kind of commodities or articles upon a common footing? Why? 28. Outhne briefly the adjustment employed in the estab- lishment of rail-and-water rates from Philadelphia, Pa. 29. How are the rates from Baltimore, Md., made with regard to the rates from Philadelphia, Pa.? TEST QUESTIONS 225 30. As a general proposition, how are the rates constructed from Trunk Line Territory? 31. Give the rule for the assimilation of the Official Classi- fication to the Southern Classification. 32. Define briefly Buffalo-Pittsburgh Territory. 33. What basis is employed in establishing the rates on lettered class traffic from Buffalo-Pittsburgh Territory? 34. What rates are observed as maxima from Ashland, Ky., on traffic destined to Jesup, Ga.? 35. Name the Potomac Gateways. 36. What is the adjustment from Newport News, Va., to Birmingham, Ala.? 37. Illustrate in general the method of constructing rates from New York City to Bennettsville, S. C. 38. Upon what general basis are commodity rates con- structed? 39. What is the commodity rate on sugar from Boston, Mass., to Montgomery, Ala.? 40. On a commodity such as sugar, how do you account for the comparatively low rates from adjoining territories? 41. What differentials are the Gulf routes conceded? 42. Do the rates from the western base points reflect the effect of the rates from the East? If so, what is the occasion therefor? 43. Do the lake-and-rail rates from Chicago, 111., to New York City have any effect upon the rates to points in Southern Territory? 44. How are the rates to Adele, Ga., made? To West Point, Ga.? 45. How would you proceed to construct the rates from Louisville, Ky., to Phoenix City, Ala.? 46. How do the rates to Savannah, Ga., from Louisville, Ky., compare with the rates to intermediate points in the route selected? 47. On the above route, at what point is the long-and- short-haul clause first violated? 48. What is the basis for the construction of rates from Corinth, Miss.? 226 TEST QUESTIONS 49. Are the rates from Ellisville and Newton, Miss., made on the same basis? 50. As a general proposition, how are the rates from Central Freight Association Territory constructed? 51. Define a proportional rate. 52. Why cannot commodity rates in one direction be contrasted fairly with those applying in an opposite direction? 53. How was the rate on cotton factory products from points in Southeastern Territory constructed? 54. What does Carolina Territory embrace? 55. What is the rail-and-water adjustment employed to Wilmington, N. C? 56. How are the rates from Buffalo-Pittsburgh Territory constructed? 57. Outline in general the Ohio River adjustment. 58. What are the class rates from Cincinnati, Ohio, to points on and north of the Walhalla-Wilmington Line, i. e., making on Columbia, S. C? 59. Would there be any difference in these rates if the shipment were destined to a point south of this line? 60. To Carolina Territory are the rates from Louisville, Ky., made in relation to the rates from Cincinnati, Ohio? 6L Upon what scale are the rates from Memphis, Tenn., to Carolina Territory adjusted? 62. What basis is employed in making the rates from New Orleans., La., to Carolina Territory? 63. What is the difference between the rates from Vicks- burg. Miss., and the rates from New Orleans, La., to Carolina Territory? 64. What are the class rates from Chattanooga. Tenn., to destinations in Carolina Territory? CHAPTER XIV MISSISSIPPI VAULEY RATE TERRITORY 1. CONSTEUCTION OF RaTES TO New OrLEANS The adjustment to be considered here will be that used in establishing rates to Mississippi Valley Terri- tory, which is outlined on Map 5 of the Atlas of Traffic Maps. This map, as well as the description thereon, should be referred to in order that the boundaries of this territory and the points embraced therein may be definitely fixed. For the purpose of this work it seems well to sub- divide the points located in this territory as follows: (1) Points on the Mississippi River and the Gulf of Mexico; (2) Mississippi and Tennessee junction points; and (3) local points. 2. Development of Water Competition The part that water competition has played in the development of the rate structures in the South is brought out very strongly by the Interstate Commerce Commission in its various investigations. While it is true that traffic on the Mississippi River has dwindled to a very small amount and that the water competition from this source may be considered as potential, yet a very aggressive competition is established by the Mor- gan and the Mallory lines, serving the ports of New York, New Orleans, and Mobile. The southbound ton- 227 228 FREIGHT KATES : SOUTHERN TERRITORY nage from Seaboard Territory of the Morgan Line for the first eleven months of the calendar year for 1911 aggregated 246,000 tons and during the same period the deliveries of the Mobile & Ohio Railroad and Louisville & Nashville Railroad were but 577 tons. From this, it would seem that, considering the competi- tion of markets and the volume of traffic involved, the rates from New York to New Orleans and Mobile must be considered as a controlling factor in this adjustment. All points located adjacent to the seaboard have the advantage of location over such markets as St. Louis, Chicago, Cincinnati, and other points located on inland waterways. This is due to the fact that the cost of operation on the high seas is considerably less than that for inland river navigation, owing to the greater size of the vessels and the consequently larger cargoes that may be carried, and the absence of currents and of shoal water. 3. Eastebn Cities Adjustment (a) All-Water Rates from New York, N. Y. The uninsured all-water rates from New York City to New Orleans, are made by the Morgan Line Steamers as follows, subject to the Official Classification: Classes 1 2 3 4 6 6 Rates 70 60 50 40 35 30 The rates are also applied from the other North Atlantic cities, namely, Boston, Philadelphia, and Balti- more. Via the Morgan Line there is also a system of through rates from interior eastern territory, including the Potomac Gateways. This system is to apply the port, proper, rate from the interior point, provided the MISSISSIPPI VALLEY TERRITOEY 229 charge of the rail or the boat line up to the port added to the transfer cost to shipside does not exceed the maximum figure which the steamship line is willing to absorb. Any excess over the maximum absorption is added to the through rate. (b) Rail-and-Water Rates from New York, N. ¥. The insured water-and-rail rates to New Orleans from the eastern seaboard cities and points taking the same rates, via the Atlantic Ports south of Baltimore, are made the following differentials greater than the corre- sponding all- water rates : Classes 12 3 4 5 6 Differentials 25 20 15 10 8 6 From interior eastern points the rates via the South Atlantic Ports are made the same as the rates from Boston, New York, Philadelphia, or Baltimore, as the case may be, depending somewhat upon the amounts of the charges to shipside which are required to be absorbed by the vessel lines south of the ports of trans- shipment. Here the situation is as described concerning the corresponding rates via the Morgan Line. (c) All-Rail Rates from New York, N. Y. The all-rail rates from New York are as follows, sub- ject to the Official Classification : Classes 1 2 3 4 5 6 Rates 118 98 78 61 50 44 While not made on a definite relationship to the all- water rates, they are substantially, inasmuch as the latter, as at present fixed upon, were made with the 230 FREIGHT RATES: SOUTHERN TERRITORY all-rail competition definitely established. It is of interest, in passing, to observe that from the North Atlantic cities and contiguous shipping points the greater volume of the traffic to New Orleans is controlled by the all-water route, only the heavy or bulky freight moving via the all-rail routes. (d) From Boston, Mass., Philadelphia, Pa., and Balti- more, Md. The rates from Boston, Baltimore, and Philadelphia, as well as from interior eastern territory, are made with relation to the rates from New York under the Trimk Line adjustment. (e) From Virginia Cities The all-rail rates from the Virginia Cities are the same as the water-and-rail rates from Baltimore. To Mobile, Ala., the uninsured all-water rates from New York are the following differentials higher than the corresponding rates to New Orleans: Classes 1 2 3 4 5 6 Differentials 5 5 4 4 3 3 Consequently, these differences are carried out in the water-and-rail and the all-rail rates. (/) From Eastern Points to Mississippi River Points The rates from eastern territory to Helena, Ark., Greenville, Gulfport, Natchez, and Vicksburg, Miss., are in line with the following rates from New York: Classes 1 2 3456ABCDEHF AU-rail rates 118 98 78 61 50 44 44 44 44 44 50 61 88 Water-and-rail rates. .104 95 78 61 50 44 40 49 41 40 59 60 80 MISSISSIPPI VALLEY TERRITOEY 231 It will be observed that the all-rail rates are the same as those to New Orleans, assimilated, however, to the Southern Classification. The all-rail and the water- and-rail rates to Baton Rouge and Bayou Sara, La., are the same as the all-rail rates to Vicksburg. The Morgan Line carries via New Orleans uninsured rates which are a maximum of the following differ- entials less than the rates via the South Atlantic Ports to Baton Eouge and Bayou Sara, La., and Natchez and Vicksburg, Miss.: Classes 123456ABCDEHF Differentials 18 14 11 8644444688 {g) From Tennessee Junction Points Bates from junction points in west Tennessee and interior Mississippi Valley Territory to the lower Mis- sissippi River points and Mobile are generally made the same as in the reverse direction; from local points in the same territories the rates are made on the respective local bases of the several direct lines, but not exceeding the lowest combination. From local points in central and east Tennessee, in Kentucky, and in Southeastern Territory, the normal basis is the lowest combination, except where the local scale of any direct line makes less. However, in the case of some of the manufactured commodities and the like, there are rates from these local points which are the same or slightly higher than the rates from some near common or junction point. (h) From Carolina Territory From Carolina Territory there are numerous rates which do not exceed the corresponding rates from the 232 FREIGHT RATES : SOUTHERN TERRITORY Virginia Cities; otherwise, the lowest combination applies. 4. Class Bates The rates from St. Louis and Louisville which have been fixed by river competition are used as the basis for determining the rates from points in Central Freight Association and Western Trunk Line territories to these points, and are as follows: Classes 12a456ABCDEHF Rates 90 75 65 50 40 35 25 38 25 20 28 57 45 As a general proposition, the rates from St. Louis to New Orleans and points taking the same rates were fixed, primarily, to meet water competition. To the rates of the Anchor Line of steamboats and barges (a concern in operation on the Mississippi River for many years, but now defunct), certain insurance differentials were added, the resultant figures being adopted as the corresponding all-rail rates. There have been varia- tions from this basic principle, in that the all-water rates from New York and other eastern cities to New Orleans are reflected in the adjustment from St. Louis, Chicago, and other western points to New Orleans and Mobile. It has been the policy of one of the principal lines serving New Orleans to make the same rates, or only slightly higher ones, from Chicago on some of the highly competitive commodities manufactured or pro- duced both in the West and in the East as from New York. This ocean competition has necessarily caused the rates to Baton Rouge, Vicksburg, and other points customarily taking New Orleans rates to be reduced. Rates corresponding with those thus made from Chicago MISSISSIPPI VALLEY TERRITORY 233 were fixed from St. Louis on the customary differen- tial basis. Again, a few of the commodity adjustments from the Central West have been due to other than water-competitive conditions. The southern lines are not in control of the traffic between the upper Missis- sippi River points and other border points on the one hand and the lower Mississippi River points on the other hand, as the western lines (that is, those operating through Missouri, Arkansas, and Louisiana) actively compete between St. Louis, Chicago, St. Paul, Dubuque, etc., on the one hand and Memphis, Vicksburg, New Orleans, etc., on the other hand. On numerous occa- sions these lines have fixed commodity rates which are reflected in the rates of the southern lines from St. Louis and points east thereof. Points of origin in the state of Illinois and in Cen- tral Freight Association Territory, etc., are grouped into sub-territories or sections; each of these groups is given the name of a prominent point within it and includes all points of origin, whether competitive or non-competitive. The joint working arrangements be- tween the southern and the northern lines interested provide that the rates made on the differential relation- ship described in Table 53 shall be the minimum rates, it being left with the initial lines to determine whether they wish to make rates quite so low as the basis may permit. From points in Central Freight Association Territory particularly, the initial lines have not found it necessary to establish such an extensive list of com- modity rates as that applied from St. Louis and the Ohio River. CHAPTER XV MISSISSIPPI VALLEY RATE TERRITORY— Continued 1. Application of Class Rates (a) From Ohio River Points and Related Territory In Table 53 are given the differentials (over and under the St. Louis-Louisville-New Orleans rates) which are applicable from groups located on or adjacent to the Ohio River and from groups in Western Trunk Line Territory and which are used in the construction of rates. TABLE 53 Differentials Applicable from Groups Located on ob Related to the Ohio River From Geoups Differentials Over or Under the St. Louis-New Orleans or Louisville- New Orleans Rates Except^ AS Noted t Differentials in Cents per 100 Pounds Except as Noted Classes^ 1 2 3 4 5 6ABCDEHP Cairo (under) 15 12 10 8 7 6 4 6 5 5 5 10 10 Nashville (under) 15 12 10 8 7 6 4 6 5 6 5 10 10 Evansviile (under) 33322222 2i 2235 888444332 2344 888444322 2344 888444342 2344 Cincinnati (over)' Indianapolis (over) Springfield (over) Peoria (over) 14 11 9655443 3466 Chicago (over) Milwaukee (over) 20 15 10 8 7 6 6 6 6 6 5 8 12 26 20 14 11 9 8 8 8 8 8 7 11 16 Kentucky* 12 10 8643333 3466 'Governed by the Southern Classification. 'Per barrel. 'Not greater per mile than from Louisville. K)ver Indianapolis group. 234 MISSISSIPPI VALLEY TEBRITOBY 235 Taking the St. Louis rates as the basis and adding to or deducting from them the differentials shown in Table 53, through rates are produced. Table 54 sets forth the current class rates from some of the various groups not only to New Orleans, La., but to Memphis, Tenn., as well. The Memphis adjustment, however, while hinged upon the adjustment to New Or- leans will be taken up later. As an illustration, assume that you wish to ascertain the rates from the Evansville group to New Orleans. The following shows how these rates are constructed Classes ... 123456ABC DEHF From St. Louis to New Orleans 90 75 65 50 40 35 25 38 25 20 28 57 45 EvansviUe differentials 33322222 2^ 2235 Through rates 87 72 62 48 38 33 23 36 22i 18 26 54 40 In the application of the differentials above stated. Central Freight Association Territory and part of Western Trunk Line Territory are divided into groups corresponding to those shown in Table 53. The follow- ing description of these groups will be found to be of much assistance in computing the rates from the territories. Group 1. — St. Louis and Louisville rates apply from East St. Louis and Alton, 111., and from points between Alton and East St. Louis on direct lines; Carondelet, Mo., Belleville and Venice, 111., Jeffersonville and New Albany, Ind., and from the territory in the state of Illinois on and south of the line from East St. Louis, through Odin, Flora, and Olnsy, 111., to the Indiana state line and such other points as may be otherwise provided for. Group 2. — Cairo, 111., rates apply from Belmont, Mo., Mound City, 111., Paducah, Columbus, and Hickman, Ky., and such other points as may be otherwise provided for. 236 FREIGHT RATES : SOUTHERN TERRITORY o z < < oq" < o 1^ O CO t) o O H aT O H pq < u CO OS o jz; Q IB P D O Pk o o p: B. a H O W H O cq 00^ O wo 00 te OOO (NIN COM MM NM MOO MM MOO M-* (NIM OOO Ous M* o« WIN NO '-. >co O05 o n K O o (3l^ a E-i a a «a a H a aO oe» OS»H ■♦to (NM or- M-* — 00 NN 003 MM MtJ< ©■<»< •♦lO >.-:m OM «OQ0 in 00 wo NI-- o« >0(0 ifflM MM 00« M-* MtC MOO •Old iflO mo 00 --1 - (8 .0) aO o a 03 a ■■5 a a E-i a aO SZ 3 XI a _3 "o o I o a >, 03 pe< MOO too NM OOO NN MM MM Ml" MM NM MM Mt1< C5 0S M'^ 03 0> oia l>0> • OS in o 15 « £ o a> «o-< vto MOO lOC> NM OOO NN MM NM Mrj" MM NM MM M'Ji 050 M-^ »3> om t^05 -HCO OOM ■«r« OOO NM i-> OS NN NM M-* NW M-* OO 09M NN WOO to ON om 1Q« mo mt». Oh- NM NO NM mm NM Mt mm NM mm Tjim MM ® 00 i-O t»o ON m« mo mt» oi^ NM NO NM m m NM to 00 Mif mm NM mm M'«>< MM io ON mt» OOM mr» NO mM NM 00 00 NM O^^ Mm 00 00 NM oeoo mm -?m Tf o mto OO t-o mo 00 '- OOM CM .01 C.O » £ §2 .IS aO « £ Sz ■a M u 3 J2 I _o "3 ta PQ O ■o 09 O W • OS g-^ . 03 00 OJ aO « £ Sz g^ Ji £ Sz .2 "a a O O • 08 B|-J a £ * . « D.O £& 2Z T3 OS o B eo_«J aO «i £ 2z '6 mr- mt» M — M-* tO'1< NM OO NM ON OO NM OO t m o-< mt- MM t-O 00 — — to — M • 08 g^ -OS GO O aO sz a a a: >> o £i o ja O — 50 mto cot NM or- — N NN NM Mm M-* N^l NM NN Mt 00 00 Mt • OS g^ . OS s s SZ 9 tern ■♦m mr- mto oom NM om NN MO NM ■. s aos «a § a -2s ^ Si. 2 ft < IB « a ?5 ^ -*» O M el tH Boo g ^ P *^ W Q — a, w >t3 ^ a *j 1 I. OJJ E t, >. CO =a > o a d) c ities ta of > •carloa quant Bcatio ipmen i cTS-s-a >> ^Ub ft ft 00 u a s>> OS ^asa o a i--'^ ft O - w 0) "-'5>3w -§1 rioad modi he So do no " rr 01 C ■" t) a 00 o >.« 03 UJ3 --i S^ *■ --5 "e O 4) « -^ r . 09 Wher la on Gove Class Per b Rates >to ao - a" - " - z o e a *A MISSISSIPPI VALLEY TERRITORY 237 Group 5,=-Nashville, Tenn., rates apply from such other points as may be otherwise provided for. Group 4.— Evansville, Ind., rates apply from Hender- son, Ky., Owensboro, Ky., and such otlier points as may be otherwise provided for. Group 5. — Cincinnati rates apply from Arlington Heights, Ohio, Aurora, Ind., Carthage, Ohio, Covington, Ky., Delhi, East Norwood, Edgemont, Elmwood Place, Hartwell, Ivorydale, and Ivorydale Junction, Ohio, Lawrenceburg, Ind., Lockland and Longview, Ohio, Lex- ington, Ky., Maplewood (Hamilton Co.), North Bend, and Steelton, Ohio, Newport, Ky., and such other points as may be otherwise provided for. Group 6. — Indianapolis rates apply from Maysville, Ky., and from such other points as may be otherwise provided for. Indianapolis rates also apply from Ash- land, Ky., and Ironton and Portsmouth, Ohio, except that on iron articles, including nails, but not including iron and steel rails, the rates are the same as from Cincinnati, Ohio. Group 7. — Springfield rates apply from points in the following territory: Commencing at Springfield, 111., thence on and south of the line of the Illinois Central Railroad, through Clinton, 111., to and including Deca- tur, 111. ; thence on and south of the line of the Chicago, Indiana & Western Railway, through Tuscola and Chrisman, 111., to the Indiana-Illinois State Line; thence west of the Indiana-Illinois State Line to the line of the Baltimore & Ohio Southwestern Railroad; thence north of the line of the Baltimore & Ohio Southwestern Rail- road, via Olney, Flora, and Odin, 111., to but not includ- ing East St. Louis, 111.; thence on and east of the line of the St. Louis, Keokuk & Northwestern Railroad to and including Hannibal, Mo. ; and thence on and south of 238 FREIGHT KATES : SOUTHERN TERRITORY the line of the Wabash Railroad, through Chapin, to Springfield, 111., inclusive. Group 5.— Peoria rates apply from points in the fol- lowing territory: Commencing at Peoria, 111., thence on and south of the line of the Chicago, Burlington & Quincy Railroad to and including Burlington, Iowa; thence south of the line of the St. Louis, Keokuk & North- western Railroad to but not including Hannibal, Mo. ; thence north of the line of the Wabash Railroad to Springfield, 111.; thence north of the line of the Illinois Central Railroad, via Clinton, to but not including Decatur, 111.; thence north of the line of the Chicago, Indiana & Western Railway to the Indiana-Illinois State Line; thence west of the Indiana-Illinois State Line to the line of the Toledo, Peoria & Western Railway; and thence on and south of the line of the Toledo, Peoria & Western Railway to Peoria, 111., inclusive. Group 9. — Chicago rates apply from points in the following territory: Commencing at Chicago, thence via the west bank of Lake Michigan to the Indiana-Illinois State Line; thence west of the Indiana-Illinois State Line to the line of the Toledo, Peoria & Western Rail- way; thence north of the line of the Toledo, Peoria & Western Railway to but not including Peoria, 111.; thence north of the line of the Chicago, Burlington & Quincy Railroad to a point just north of Burlington, Iowa ; thence via the west bank of the Mississippi River, through Clinton, Lyons, and Sabula, Iowa, to and includ- ing Savanna, 111. ; thence on and south of the line of the Chicago, Milwaukee & St. Paul Railway to and includ- ing Freeport, 111.; thence on and south of the line of the Chicago & North Western Railway, through Rock- ford and Belvidere, 111., to Elgin, III, including Dundee, Elgin, Carpentersville, and Algonquin, 111.; and thence MISSISSIPPI VALLEY TERRITOEY 239 on and south of the Chicago, Milwaukee & St. Paul Rail- way to Chicago, inclusive. Group 10. — Milwaukee rates apply from points in the following territory: Commencing at Milwaukee, Wis., thence on and south of the line of the Chicago, Milwau- kee & St. Paul Railway, through Brookfield Junction, Wis., to and including Waukesha, Wis.; thence on and east of the line of the Wisconsin Central Railway to and including Leighton, 111.; thence on and east of the hue of the Elgin, Joliet & Eastern Railway to but not including Spaulding, 111. ; thence north of the line of the Chicago, Milwaukee & St. Paul Railway to Chicago; and thence via the west bank of Lake Michigan to Milwaukee, inclusive ; also from points on the line of the Illinois Central Railroad from Dubuque to but not including Freeport, 111., and north of Freeport to Dodgeville and Madison, Wis., inclusive. (b) Grouping of Central Freight Association Territory Rates from other points in Central Freight Associa- tion Territory are made with relation to the rates established under the basis set forth in the preceding pages. In the following description of the groups is given the basis for the construction of the rates. Group A: Indianapolis Territory. — Indianapolis ter- ritory is described as follows : From points on and south of the Cincinnati, Hamilton & Dayton Railway, beginning at a point on the Illinois-Indiana State Line, to and including Indianapolis, Ind. ; thence east via the Pittsburgh, Cincinnati, Chicago & St. Louis Railway, through New Paris, Ohio, to Dayton, Ohio; thence via the Cleveland, Cincinnati, Chicago & St. Louis Rail- way to Springfield; thence via the Detroit, Toledo & Ironton Railway to Washington Court House; thence 240 FEBIGHT KATES : SOUTHERN TERRITORY via the Cincinnati, Hamilton & Dayton Railway to Mussellman's; thence via the Cincinnati, Hamilton & Dayton Railway to and including Ironton and Ports- mouth, Ohio, Ashland, Ky., (with exception named be- low) and Wellston, Ohio; thence via the north bank of the Ohio River (not including Cincinnati and Jefferson- ville) to a point just north of New Albany; thence on the line of the Chicago, Indianapohs & Louisville Rail- way to its junction with the Baltimore & Ohio South- western Railroad at Mitchell, Ind. ; thence via the Baltimore & Ohio Southwestern Railroad to but not including Vincennes; and thence north via the Indiana- Illinois State Line to the point of beginning. Exceptions. — From Arlington Heights, Ohio, Aurora, Ind., Carthage, Cincinnati, Delhi, East Norwood, Edge- mont, Elmwood Place, Hartwell, Ivorydale, and Ivory- dale Junction, Ohio, Jeffersonville and Lawrenceburg, Ind., Lockland, Longview, Maplewood (Hamilton Co.), North Bend, and Steelton, Ohio, the Cincinnati, Ohio, rates apply, except from Jeffersomdlle, Ind., from which St. Louis-Louisville rates apply. The rates from the Indianapolis group apply from the following points : Chesapeake & Ohio Railway: Stations between Kenova, W. Va., and Fort Thomas, Ky. (except Ashland, Ky., and Ironton and Portsmouth, Ohio, on iron articles, including nails, but not including iron or steel rails). Through rates from Group A are the same as from Indianapolis, Ind. Group B: Fort Wayne-Columhus Territory. — Fort Wayne-Columbus territory is described as follows: From points north of the boundary line of Group A, east of the Illinois-Indiana State Line, south of Lake Michigan and the Michigan state line, to its intersection MISSISSIPPI VALLEY TEBRITORY 241 with the Indiana-Ohio state line (but not including points on and south of the Michigan Central Railroad from New Buffalo to South Bend via Niles) ; thence via that line to where it is crossed by the Baltimore & Ohio Railroad ; thence south of the line of the Baltimore & Ohio Railroad and east through Defiance and Deshler ; thence south of the line of the Cincinnati, Hamilton & Dayton Railway to Findlay; thence south of the line of the Cleveland, Cincinnati, Chicago & St. Louis Rail- way to Carey; thence south of the Northern Ohio Railway to Sycamore; thence south of the line of the Toledo & Ohio Central Railway to Bucyrus; thence south of the line of the Pittsburgh, Fort Wayne & Chicago Railway to Mansfield; thence west of the line of the Baltimore & Ohio Railroad, through Mt. Vernon, Newark, Junction City, and Glouster; thence west of the Kanawha & Michigan Railway to and including Athens; and thence via an imaginary line to a point on the north bank of the Ohio River just east of Pomeroy, following the north bank of the Ohio River to the point of intersection mth Group 1. Through rates from Group B are the same as from Chicago, 111. Group C: Vincennes Territory. — Except as herein- after named, Vincennes territory is described as follows : Beginning at Vincennes, Ind., thence south of the line of the Baltimore & Ohio Southwestern Railroad to but not including Mitchell, Ind.; thence south of the Chi- cago, Indianapolis & Louisville Railway to New Albany, Ind.; thence west of and including the main line of the Southern Railway to the Indiana-Illinois State Line (including points on the branches of the Southern Rail- way from Jasper to but not including Evansville, Ind., Lincoln City to Rockport, Ind., inclusive, and from 242 FREIGHT BATES: SOUTHERN TERRITORY Lincoln City to Cannelton, inclusive) ; and thence via that line to the point of beginning. This description does not include stations in Indiana on and south of the line of the Southern Railway from Mt. Carmel to Louisville, through New Albany, Ind., and points located on the Evansville & Terre Haute Railroad at and south of its intersection with the St. Louis Division of the Southern Railway. The Southern Railway has also announced its purpose to establish from Oakland City and Princeton, Ind., to Memphis, New Orleans, and group, etc., the St. Louis basis of rates, including all commodities, except that from Princeton, Ind., to the same points on articles and on Classes C, D, and F, it will continue the use of the Evansville rates. From all local points on the St. Louis Division of the Southern Railway east of Mt. Carmel, the Southern Railway will employ the St. Louis basis of rates. The Evansville & Terre Haute Railroad has announced that it will hold from its junction with the Southern Railway the same rates as those published by the Southern Railway, and from stations south thereof the present basis of rates will obtain. Through rates from Group C are the same as from the St. Louis-Louisville group. Group D: Evansville Territory. — Evansville terri- tory is described as follows: East of the Illinois- Indiana State Line, south and west of the boundaries of Group C and on the north bank of the Ohio River, except as provided for in Group C. Through rates from Group D are the same as from Evansville, Ind. Group E: Detroit-Toledo Territory. — ^Detroit-Toledo territory is described as follows : North of the northern boundary line of Group B, east of Lake Michigan and following the eastern boundary of the lake to and includ- MISSISSIPPI VALLEY TERRITORY 243 ing Montague ; thence beginning at Muskegon, following the line of the Toledo, Saginaw & Muskegon Railway to Sheridan; thence north and east along the line of the Detroit, Grand Rapids & Western Railroad via Edmore to Saginaw; thence north to and including Bay City and West Bay City; thence via the Michigan Cen- tral Railroad to Vassar (including Caro) ; thence via the Flint & Pere Marquette Railway to Port Huron; thence via the eastern boundary of Michigan to its intersection with the northern boundary of Ohio ; thence south of Lake Erie to but not including Sandusky; thence west of a line drawn from Sandusky west of the Baltimore & Ohio Railroad, through Chicago Junction, to Mansfield. Through rates from Group E are the same as from Milwaukee, Wis. Group F: Buffalo-Pittsburgh Territory. — Buffalo- Pittsburgh territory is described as follows: Beginning at Sarnia, Ont., thence via Kings Court Junction to London, Ont.; thence via the main line of the Grand Trunk Railway System to Suspension Bridge, Can.; thence via Suspension Bridge, N. Y., LaSalle, Tona- wanda, Black Rock, International Junction, and East Buffalo to Buffalo, N. Y. ; thence south of the line of the Buffalo, Rochester & Pittsburgh Railway from Buf- falo to Bradford (not including Bradford) ; thence south of the Buffalo & Allegheny Division of the Pennsylvania Railroad from Bradford to Morrison (not including Bradford or Morrison) ; thence on and south of the Buffalo & Allegheny Division of the Pennsylvania Rail- road to Pittsburgh; thence via the Baltimore & Ohio Railroad to Wheeling, W. Va. ; thence via both banks of the Ohio River to the intersection with the boundary of Group B; thence east of the boundary line of Group B to and including Mansfield, Ohio; and thence east of 244 PEEIGHT KATES : SOUTHERN TEERITOEY the eastern boundary of Group E to Sandusky, Ohio, including Sandusky. The rates from the Buffalo-Pittsburgh group apply from the following points : Baltimore & Ohio Railroad: Stations on Pittsburgh Division east of Glenwood to Jacob's Creek, latter inclusive. Chesapeake & Ohio Railway: Stations between Kanawha, W. Va., and Ceredo, W. Va., inclusive. Pennsylvania Railroad : Stations on Buffalo & Allegheny Valley Division, Buffalo to and including Ebenezer, Pa. Stations on main line, Homewood to Latrobe, Po.., inclusive. Stations on West Pennsylvania Division north of Allegheny Valley Railway Junction to Edri, Pa. latter inclusive. Stations on Southwest Pennsylvania Railway, East Greensburg to New Stanton, Pa., both inclusive. Stations on Radebaugh Branch. Stations on Turtle Creek Valley Railroad. Stations on Monongahela Division east of Ormsby to Belle Vernon, Pa., latter inclusive. Stations on McKeesport & Bessemer Railroad. Pittsburgh & Lake Erie Railroad: Stations on Youghiogheny Division, Beck's Run to Whitsett Junction, Pa., both inclusive. Stations on Monongahela Division, Reynoldton to Belle Vernon, Pa., both inclusive. Ohio Central Lines: Stations Point Pleasant to Charleston, W. Va., in- clusive. Through rates from Group F are the same as from Milwaukee, Wis. MISSISSIPPI VALLEY TERRITORY 245 Table 55 gives the differentials to be used in con- nection with the rates set forth in the preceding pages in establishing rates from certain other groups in North- ern Michigan in Central Freight Association Territory. TABLE 55 Differentials from Northern Michigan Differentials Over the Detroit-Toledo Groups Except as Noted From Groups Differentials in Cents per 100 Pounds Except as Noted Classes' 1 2 3 4 56ABCDEHF» Howard Citv 5 4 3| 2i li 1 1 1 1 1 1 1 2 Owendale Clare Cadillac Traverse City Cheboygan Manistiqup' 6 5 4 322222222 4 9 8 7 5 4 2^ 2^ 2§ 2i 2^ 2J 2J 5 11 9 7 543333333 6 m 15 lU 8 6 5 5 5 5 5 5 5 10 20 17 14 10 8 6 6 6 6 6 6 6 12 3 2i 2 U 1 1 1 1 1 1 1 1 2 'Governed by the Southern Classification. 'Per barrel. 'Over Ft. Wayne-Columbus group; applicable only on traflBc destined beyond. CHAPTER XVI MISSISSIPPI VALLEY RATE TERRITORY— Contlnned i. Adjustment from Points in Southern Territory TO New Orleans, La. From Chattanooga, Tenn. — The rates are not less than the rates from Nashville, Tenn. From Atlanta, Ga. — Specific rates on the classes are made, which are not less in any case than the rates from Chattanooga. The commodity rates are the same as those from Chattanooga. From Augusta, Ga. — The rates are made the follow- ing differentials over the rates from Atlanta: Classes 123456ABCDEHF Differentials 3 3 3 2 2 2 2 2 2 2 2 2 4 From Macon, Ga. — The rates are made the same as those from Atlanta. From Savannah, Ga., and points taking the same rates. — The rates are made the following differentials less than the rates from the Virginia Cities: Classes 1 2 3 4 6 dABCDEHF Differentials 8765442332454 The commodity rates are made 2 cents less than the rates from the Virginia Cities. From Birmingham, Ala. — The rates are made the following differentials less than the rates from Chat- tanooga : Classes 123456ABCDEHr Differentials 6 5 4 4 3 3 2 2 2 2 2 2 4 246 MISSISSIPPI VALLEY TERRITORY 247 The commodity rates are made 2 cents less than the rates from Chattanooga. From Montgomery and Selma, Ala. — The rates are made the same as those from Birmingham, except that to Mobile the rates are made to meet the competition on the Alabama River. From Decatur, Florence, Sheffield, and Huntsville, Ala. — The rates are made the same as those from Nashville. Other common points in the southeast are given rates in relation to those at Atlanta, Macon, Chattanooga, etc., as above described. From non-competitive points in the southeast, the rates are generally made on the lowest combination, but not in excess of the mileage scales of a continuous line between the point of origin and destination. Again, there are exceptions in the rates on commodities manu- factured or produced at local ponts in competition with those having more favorable transportation facilities, which are given competitive rates, usually the same as the corresponding ones from some adjacent common point. 2. Commodity Rates {a) From Ohio River Points and Related Territory While the commodity rates from the St. Louis-Louis- ville group to New Orleans were established on the same basis as the class rates, that is, with relation to w^ater competition, the commodity rates from other points have been worked out on a different basis. The scale for computing commodity rates, shown in Table 56, together with explanatory notes, will explain the method of arriving at commodity rates. The num- 248 FREIGHT RATES : SOUTHERN TERRITORY bers at the top of the table refer to the groups listed below the table. TABLE 56 Basis for Construction of Commodity Rates to New Orleans, La. Groups 1 2 3 4 5 6 7 8 9 10 7 5 8 9 10 13 15 8 6 9 10 10 11 14 16 9 7 10 11 11 12 15 17 10 5 .'s 8 11 12 12 13 16 18 11 6 6 9 12 13 13 14 17 19 12 7 7 10 13 14 14 15 18 20 13 8 8 11 14 15 15 16 19 21 14 9 9 12 15 16 17 16 16 17 20 22 is io io i3 i7 17 is 2i 23 16 11 11 14 18 18 18 19 22 24 17 12 12 15 19 19 19 20 23 25 18 13 13 16 20 20 20 21 24 26 19 14 14 17 21 21 21 22 25 27 20 15 15 18 22 22 22 23 26 28 21 16 16 19 23 23 23 24 27 29 22 17 17 20 24 24 24 25 28 30 23 18 18 21 25 25 25 26 29 31 24 19 19 22 26 26 26 27 27 28 30 32 25 20 20 23 27 27 28 29 26 21 21 24 28 28 29 30 3i 33 27 22 22 25 29 30 29 30 30 31 32 34 28 23 23 26 31 31 31 32 33 35 Group 1 .—St. Louis-Louisville. Gr oup 6.- — Indianapolis, Ind. Group 2 .—Cairo, III. Group 7.- —Springfield, 111. Group 3 . — Nashville, Tenn. Group 8.- —Peoria, 111. Group 4 . — Evansville , Ind. Group 9.- -Chi cago, 111 Group 5 . — Cincinnati , Ohio. Group 10.- —Milwaukee, Wis. notes explaining application of differential scale for computing commodity rates Note 1. — The rates shown are in cents per 100 pounds. Note 2. — "When a rate is made from any basing point, the figures in the same line across the page are the rates from the other basing points to the same destination. To illustrate, if a MISSISSIPPI VALLEY TERRITORY 249 rate of 26 cents per 100 pounds is made on any commodity from St. Louis or Louisville to New Orleans, the rates from other points are : From Cairo, 21 cents ; Nashville, 21 cents ; Evans- ville, 24 cents; Cincinnati, 28 cents; Indianapolis, 28 cents; Springfield, 29 cents ; Peoria, 30 cents ; Chicago, 31 cents ; Mil- waukee, 33 cents. If the rate is first made 31 cents from Chi- cago, the rates from other basing points are those named in this note, by the application of the same rule. Note 3. — In applying the differential scale, where a blank occurs the first figure beneath such blank and in the same col- umn is the rate to be used. Illustration : If a rate of 16 cents be established from Cincinnati to New Orleans on any com- modity, the rate from Louisville to New Orelans on the same commodity would be 15 cents, which is the first figure in the Louisville column beneath the blank space appearing in the same line across the page opposite 16 cents from Cincinnati. Note 4. — When rates with fractions are made from any bas- ing point, the same fraction is added to the rates from other basing points, except that this rule does not make from any basing point a higher rate than that opposite a figure from the first basing point which is higher than the rate to which the fraction was first added. Illustration : If a rate of 151/2 cents per 100 pounds is first established from Cincinnati to New Or- leans, the rate from Nashville to New Orleans is dYo cents; but if a rate of lOV^ cents is first established from Cincinnati to New Orleans, the rate from Nashville to New Orleans is not 514 cents, but 5 cents, which is the rate from Nashville oppo- site the rate from Cincinnati next higher than the rate to which the fraction was first added. Note 5. — When a rate is made per barrel, per ton, or per car, such rate is to be reduced to cents per 100 pounds (car- rying the decimal to hundredths) and the rule in Note 2 ap- plied to ascertain the rates from other basing points; the rates so determined should then be computed per barrel, per ton, or per car, as the case may be, to correspond with the rate from the point from which it was first made. Illustra- tion: If a rate of $3.00 per ton of 2,000 pounds, which is equivalent to 15 cents per 100 pounds, is made from St. Louis 250 FREIGHT RATES: SOUTHERN TERRITORY or Louisville to New Orleans, the rates from other points are : From Cairo and Nashville, $2.00 ; from Evansville, $2.60, etc. When a rate per gross ton of 2,240 pounds or per long ton of 2,268 pounds is made from any basing point, such rate should be reduced to cents per 100 pounds (carrying the decimal to hundredths) and corresponding rates, according to Note 2, applied from other basing points, observing the rule in Note 4 as to the use of fractions. Illustration : If a rate of $3.00 per ton of 2,240 pounds, which is equivalent to 13.39 cents per 100 pounds, is made from St. Louis or Louisville to New Orleans, the rates (per ton of 2,240 pounds) from other basing points are : From Cairo and Nashville, $1.88 (8.39 cents per 100 pounds) ; from Evansville, $2.55 (11.39 cents per 100 pounds) ; from Cincinnati, $3.22 (14.39 cents per 100 pounds) ; from Indianapolis and Springfield, $3.45 (15.39 cents per 100 pounds) ; from Peoria, $3.67 (16.39 cents per 100 pounds) ; from Chicago, $4.34 (19.39 cents per 100 pounds) ; from Mil- waukee, $4.79 (21.39 cents per 100 pounds). Exceptions to Note 5. — The rules in Note 5 do not apply in making rates per car on live stock. Note 6. — Basis for carload rates on live stock : In making rates on live stock from defined territories north of the Ohio River and east of the Mississippi River, the following rule ap- plies : Take St. Louis and Louisville as a basis (the rates from those points to be considered as applying for an estimated weight of 20,000 pounds per car) ; reduce the carload rate to cents per 100 pounds, and then apply the differential scale as provided in Note 2, the rates thus fixed in cents per 100 pounds on the differential scale to be established per carload on the basis of estimated weight of 20,000 pounds. In Table 57 are given some representative commodity rates currently in effect from St. Louis, Mo., to New Or- leans, La. It should be understood in connection with these rates and all others shown in these treatises that in case of actual use they should be confirmed by inquir- ing of the interestexl carrier. MISSISSIPPI VALLEY TERRITORY 251 TABLE 37 Commodity Rates from St. Louis, Mo., to New Orleans, La. Commodity Rate in Cents Agricultural implements, C. L., min. wt. 20,000 lbs., viz.: Corn planters, cotton choppers, cotton planters, culti- vators, field rollers, grain drills, guano distributors, har- rows, plows, potato diggers, potato planters, seed sowers (not hand), stalk cutters (field), transplanters, and parts thereof when shipped in carloads with implements named • Asphalt (asphaltum), natural or by product, solid, C. L., min. wt. 40,000 lbs., and liquid other than paint, stain, or varnish, in barrels or iron drums, min. wt. 40,000 lbs. . Cement, portland or natural, in barrels or sacks, C. L., min. wt. 40,000 lbs. (in cents per ton of 2,000 lbs.) Coal, C. L., min. wt. capacity of car (in cents per ton of 2,000 lbs.). Food preparations, viz.: Oatmeal, rolled oats, rolled, cracked, crushed, or flaked wheat, flaked rye, flaked, rolled, and pearl barley, hom- iny grits, and flaked hominy, packed or in barrels, kegs, drums, and half barrels or in cotton or gunny sacks: C. L L. C. L... Iron and steel articles: Rails, C. L., min. wt. 20 gross ton (in cents per ton of 2,240 lbs.) ; Railroad track material, viz.: Chains, cross ties, clamps, or fastenings, steel; frog fill- ings, frog nut locks and spikes, spUce bars, switch chains, switches, switch stands, tie plates, track bolts, track brans, track nuts, washers, C. L., min. wt. 24,000 lbs. . . Leather sole, in boxes, rolls, or burlapped bales, L._C. L. . . . Pipe sewer, min. wt. 25,000 lbs Soap and washing powders, any quantity Soap, in boxes or barrels, agreed to be of value of not ex- ceeding 5 cents per lb. and so expressed in bills of lading, C. L., min. wt. 30,000 lbs L. C. L Starch, C. L., min. wt. 30,000 lbs Tar and pitch, C. L., min. wt. 40,000 lbs Wool (mineral), C. L., min. wt. 24,000 lbs 35 18 mi 340 18 30 265 522 65 18 25 25 33 30 20 35 3. Application of Commodity Bates (o) From Ohio River Points and Related Territory These groups are the same as those shown m conjiection with class rates. 252 FKEIGHT RATES : SOUTHERN TERRITORY (b) From Central Freight Association Groups These groups are the same as those shown in connec- tion with class rates. 4. Rates to Gulf Ports and Mississippi River Points Made with Relation to Rates to New Orleans The rates from the St. Louis-Louisville group to New Orleans having been established, the New Orleans basis of rates was established to other Gulf ports and Mis- sissippi River points as follows: To Mobile, Ala. — The same causes that brought about the rates to New Orleans influenced the rates to Mobile, Ala., viz., active water competition via the Mississippi River, the Mississippi Sound, and the Gulf of Mexico. To Gulf port, Miss. — This port is located on the Louis- ville & Nashville Railroad from Louisville to New Orleans, almost midway between Mobile and New Or- leans. It competes with Mobile, Ala., for export and import traffic, and the similarity of position and trans- portation conditions justified the application of the same rates as to Mobile. To Baton Rouge and Bayou Sara, La., Dickerson, Friar's Point, Greenville, Natchez, Rosedale, and Ses- sion, Miss., Slidell, La., Vicksbtirg, Miss., and Vidalia, La. — The above points are located on or adjacent to the Mississippi River, and the same water competition that has necessitated the rates to New Orleans has prevented the maintenance of higher rates to the Mis- sissippi River points named above. In addition to the points enumerated above, the New Orleans basis of rates is applied to quite a number of local stations in the vicinity of New Orleans on the Texas & Pacific Railway, Louisiana Railway & Naviga- MISSISSIPPI VALLEY TERRITORY 263 tion Company, Morgan's Louisiana & Texas Railroad & Steamship Company, Mobile & Ohio Railroad, New Orleans, Texas & Mexico Railroad, and Yazoo & Missis- sippi Valley Railroad. These points enjoy the New Orleans rates on account of their proximity to the Mississippi River and streams tributary thereto. To Pensacola, Fla. — The rates to Pensacola, Fla., are the same as the rates to Mobile, Ala., except from Cairo, III, from which point they are the following differentials higher than the rates to Mobile : Classes 1 2 3 4 5 6ABCDEHF Differentials 12 9765424 4J 5579 CHAPTER XVII CONSTRUCTION OF RATES FROM ST. LOUIS, MO., OHIO RIVER CROSSINGS, AND RELATED POINTS 1. Adjustment to Memphis, Tenn. As in the case of New Orleans, the rates from St. Louis to Memphis were fixed, primarily, to meet water competition on the Mississippi River, the water rates, to which were added certain differentials, approximating the cost of insurance, etc., being adopted. While today there is water service between St. Louis and Memphis, it is not as important in amount as it was a decade or so ago. The potentiahty of the competition, how- ever, has, as in the case of New Orleans, served to keep the rates at substantially not greater than the old level. Again, while there is evidence that in the old days the competition afforded by ocean service between the East and New Orleans, in connection with boat service up the Mississippi River, had some influence in the adjust- ment of rates from the West, it does not appear to have been a factor in measuring any of the present rates. Some of the commodity rates to Memphis, as they now exist, have been fixed due to various condi- tions, without regard to water competition, and, as has been stated in connection with the New Orleans rates, the lines operating west of the Mississippi River are a strong influence in the adjustment of rates from St. Louis and the Central West to Memphis. 254 8T. LOUIS AND RELATED POINTS 255 2, Geouping of Teekitoby In the application of these rates Central Freight Association and Western Trunk Line territories are divided into groups, the description and designation being the same as applied in the New Orleans adjust- ment from these territories. 3. Class Rates The class rates from the St. Louis-Louisville group, which are used as a basis for the construction of rates from the other groups, are as follows, governed by the Southern Classification : Classes 1 23456ABCDEHF Rates 65 50 45 35 30 25 15 26 15 12 20 42 30 4. AlPplication of Rates (a) From Ohio River Points and Related Territory From the groups shown in Table 58 through rates are constructed by adding or deducting the differentials set forth in the table to or from the St. Louis-Louisville rates as shown above. The addition or subtraction of the differentials shown to or from the St. Louis rates will produce the figures shown in Table 59, which are the rates currently in effect. (b) From Central Freight Association Territory The rates from other points in Central Freight Asso- ciation Territory are constructed by adding the same 256 FBEIGHT RATES : SOUTHERN TERRITORY TABLE 58 DiFFEEENTIALS ApPLIC.^LE FROM GrOUPS LoCATED ON OR Related to the Ohio River Differentials Over or Under, as Indi- cated, THE St. Louis-Memphis or Louisville-Memphis Rates Fbom Groups Differentials in Cents per 100 Pounds Except as Noted Classes' 123456ABCDEHF« Cairo (under) 15 12 10 8 7 6 4 6 5 3 5 10 10 Nashville (under) 15 12 10 8 7 6 4 6 5 5 5 10 10 Evansville (under) 33322222 2| 2235 Cincinnati (over)^ 10 10 10 5 5 5 5 4 5 5 4 7 10 Indianapolis (over) Springfield (over) 10 10 10 5 5 5 5 4 5 5 4 7 10 888444342 2354 Peoria (over) 14 11 9655443 3466 Chicago (over) Milwaukee (over) 20 15 10 8 7 6 6 6 6 6 5 8 12 26 20 14 11 9 8 8 8 8 8 7 11 16 'Governed by the Southern Classification. 'Per barrel. 'Not greater per mile than from Louisville. differentials or applying the same rates as were em- ployed in the New Orleans adjustment. For example, if it is desired to construct rates from the Detroit-Toledo group to Memphis, Tenn., on referring to page 242, Group E, it will be seen that the same rates as are in effect from Milwaukee are to be applied. Accordingly, the rates from Detroit-Toledo will be made the Mil- waukee group differentials over the St. Louis rates, resulting in through rates as shown in Table 59. 5. Adjustment from Points in Southern Territory From Decatur, Florence, Sheffield, and Huntsville, Ala. — The rates are arbitrarily fixed. ST. LOUIS AND RELATED POINTS 257 TABLE 59 Class Rates to Memphis, Tenn., from Points On and North of the Ohio River From Groups St. Louis Cairo Nashville Cincinnati Springfield Peoria Chicago Milwaukee Evansville* Vincennes Indianapolis . . . . Ft. Wayne- Columbus .... Detroit-Toledo . . Cleveland ffalo- Pittsburgh. . . . Howard City . . . Owendale Clare Cadillac, Traverse City. . . Cheboygan Manistique^ . . . . Kentucky Rates in Cents per 100 Pounds Except as Noted 1 2 3 Classes' 6 A B C D^ E H F» 65 50 50 38 50 38 75 60 73 58 79 61 85 65 91 70 62 47 65 50 75 60 45 35 35 27 35 27 55 40 53 39 54 41 55 43 59 46 42 33 45 35 55 40 30 25 23 19 23 19 35 30 34 29 35 30 37 31 39 33 28 23 30 25 35 30 15 26 11 20 11 20 20 31 18 30 19 30 21 32 23 34 13 24 15 26 20 31 15 12 10 7 10 7 20 17 17 14 18 15 21 18 23 20 12i 10 15 12 20 17 20 42 30 15 32 20 15 32 20 24 49 40 23 47 34 24 48 36 25 50 42 27 53 46 18 39 25 20 42 30 24 49 40 85 65 55 43 37 31 21 32 21 18 25 50 42 91 70 59 46 39 33 23 34 23 20 27 53 46 91 70 59 46 39 33 23 34 23 20 27 53 46 91 70 96 74 97 75 100 78 102 79 108^ 85 HI 87 88 671 87 70 59 46 62i 481 63 49 66 51 66 51 70J 54 73 56 57 44§ 63 46 39 33 23 401 34 24 41 35 25 43 35^ 251 43 36 26 45 38 28 47 39 29 38 32 22 39 33 23 34 23 35 24 36 25 361 251 37 26 39 28 40 29 33 22 34 23 20 27 21 28 22 29 22^ 29^ 23 30 25 32 26 33 19 26 20 28 53 46 54 48 55 50 55^ 51 56 52 58 56 59 58 51 44 55 46 'Governed by the Southern Classification. ^Class-D rates named herein do not apply on carload and less-than-carload shipments of hay. A combination of local rates applies. On shipments of mixed carloads of hay, grain, and grain products, a combination of locals applies on the hay, and Class-D rates apply on the grain and grain products. 'Per barrel. ^Rates shown herein do not apply from Evausville, Ind., proper. For rates refer to Agent M. P. Washburn's I. C. C. No. 119, supplements thereto and reissues thereof. ^Applicable only on trafi'ic originating beyond. . From Knoxville, Tenn. — Specific rates are made which are 2 cents per 100 pounds under the rates from Knox- ville to Evansville. From Atlanta, Ga. — The rates are generally made the same as the rates in the opposite direction. 258 FliElUHT KATES : SOUTHERN TERKITO liV From Augusta, Ga. — The rates are made the follow- ing differentials over the rates from Atlanta: Classes 1 2 3 4 5 6ABCDEHF Differentials 3 3 32222222224 The commodity rates are made 4 cents over the rates from Atlanta. From Macon and Savannah, Ga., and points taking the same rates as Savannah, Chattanooga, Tenn., Bir- mingham, Montgomery, and Selma, Ala., and Other Southeastern Common Points. — The rates are made the following differentials under the corresponding rates to Louisville: Classes 1 2 3 4 5 6 ABCDEHF Differentials 4 4 4 4 4 4 4 4 4 4 4 4 8 The commodity rates are made 4 cents under the rates to Louisville. From Mobile, Ala. — The general adjustment is made the same as the southbound, but rates on various north- bound commodities are adjusted on their respective merits. From west Tennessee and junctions in interior Mis- sissippi Valley Territory, the rates in the reverse direction are generally applied, except on commodities concerning which there are peculiar circumstances dif- ferentiating them from the ordinary run, as on lumber, for example. An understanding of such cases may be had from the description hereinafter given. From local points in Mississippi Valley, Southeastern, and Kentucky-Tennessee territories, the lowest com- bination is generally employed, except where the local scales of any continuous line make less. From Carolina Territory, numerous rates are made on a definite relationship with the corresponding rates ST. LOUIIS AND RELATED POINTS 259 from the Virginia Cities; otherwise the general basis is the lowest combination. Bates from eastern territory to Memphis are made from New York, the Trunk Line relative adjustment applying from other places. These rates reflect water competition down the Ohio and Mississippi rivers from TABLE 60 Basis fob Constructiojst of Commodity Rates to Memphis Groups 1 2 3 4 5 6 7 8 9 10 10 12 6 . . 6 '9 "7 's 11 13 , ^ 7 10 6 . 8 11 '8 '9 12 14 7 ■5 9 12 9 10 13 15 8 6 10 13 10 11 14 16 • » 11 9 '.'. '7 12 14 ii i2 i5 i7 10 ) 6 8 13 15 12 13 16 18 11 i 6 9 14 16 13 14 17 19 12 7 7 10 15 17 14 15 18 20 , , , . 16 13 { J 8 11 17 is is i6 19 2i 14 ( J 9 12 18 16 17 20 22 , , , 17 18 15 1( i) io is 19 i9 18 19 21 23 16 1 I 11 14 20 20 19 20 17 i: 2 12 15 21 21 20 21 22 24 18 i; 5 13 16 22 22 21 22 23 25 19 1' I 14 17 23 23 22 23 24 26 20 1. 5 15 18 24 24 23 24 25 27 21 i( } 16 19 25 25 24 25 26 28 22 20 26 26 25 26 27 29 23 r 7 17 21 27 27 26 27 28 30 24 IJ 3 18 22 28 28 27 28 29 31 « • . 29 29 28 29 30 32 25 i< J 19 23 30 30 29 30 31 33 20 2( 3 20 24 31 31 30 31 32 34 27 25 32 32 31 32 33 35 28 2 I 21 26 33 33 32 33 34 36 Group 1. — St. Louis-Louisville. Group 2.— Cairo, 111. Group 3. — Nashville, Tenn. Group 4. — Evansville, Ind. Group 5. —Cincinnati, Ohio. Group 6. — Indianapolis, Ind. Group 7. — Springfield, 111, Group 8. — Peoria, 111. Group 9. — Chicago, 111. Group 10. — Milwaukee, Wis. 260 i'KElGHT KATES: SOUTHERN TEBBITOBY Pittsburgh, Cincinnati, etc., which was at one time very potent, and to some slight extent the still earlier com- petition via the ocean and the Mississippi River. Specific rates are made from the Virginia Cities to Memphis. 6. Commodity Rates (a) From Ohio River Points and Related Territory The commodity rates to Memphis are made by the use of a differential scale similar to that used in con- nection with the rates to New Orleans, an illustration of which is shown in Table 60. See pages 248 to 251 for notes explaining the applica- tion of the differential scale for computing commodity rates. 7. Application of Commodity Rates (a) Groups From Which Commodity Rates Apply In the application of the commodity basis the same territorial grouping is employed as is used in connection with the class rates. 8. Rates From Trunk Line Territory {a) All-Rail Rates In the application of rates from Trunk Line and New England territories Memphis, Tenn., is treated as a Mississippi River Crossing and rates are published in accordance with the basis set forth for the construction of rates in Official Classification Territorv. This ST. LOUIS AND RELATED POINTS 261 is due to the fact that the Southern Railway and its eastern connections as well as other lines which operate through Southern Classification Territory are in compe- tition with the Trunk Line and Central Freight Asso- ciation lines for eastbound and westbound traffic originating in or destined to points west of the Missis- sippi River and to do so successfully the rates via their routes must be on a parity with those of the northern lines. The current all-rail rates, governed by the Official Classification, are as follows : Classes.... 12 3 4 6 6 Rates 100 85 65 45 38 32 (b) Rail-and-W ater Rates The water lines serving such South Atlantic Ports as Wilmington, N. C, Charleston, S. C, Savannah and Brunswick, Ga., and Jacksonville, Fla., also compete for this traffic and have established a proportional scale of rates from the Eastern Cities to the Mississippi River on traffic destined beyond, which rates are con- siderably less than the rates of the all-rail lines operating through either Official or Southern classifica- tion territories. The present scale is as follows in cents per 100 pounds : Classes.... 1 2 3 4 6 6 R25 R26 R28 Rates 72 64 47 36 30 26 54 38 40 These rates are governed by the Official Classification. The rates apply from Boston, Mass., New York, N. Y., Philadelphia, Pa., and Baltimore, Md., and from such points as are shown as taking the same rates in the publications of the water carriers, which vary some- what from the all-rail grouping of Trunk Line and New England territories shown on Maps 9 and 10 of the Atlas of Traffic Maps. 262 FREIGHT RATES : SOUTHERN TERRITORY These rates may be ascribed to the keen competition of recent years between the line and independent water carriers serving the South Atlantic Ports and those oper- ating through the Gulf Ports. In some cases the compe- tition has been so severe that it has been necessary to suspend or cancel the through tariffs and handle the traffic on a combination of rates to and from the ports. 9. Fourth Section Ordees Such orders as have been announced by the Inter- state Commerce Commission affecting points in the adjustment discussed in this chapter are reproduced in Appendix C. CHAPTER XVni RATES TO INTERIOR MISSISSIPPI VALLEY POINTS This chapter treats of the bases used in constructing rates to interior points in Mississippi Valley Territory. These interior points are both local and junction points, and, while some of them are not interior points in the sense that they are removed from navigable waterways, their location upon the streams is such that the competi- tion of water carriers from other markets has been greatly minimized. 1. To Local Stations in Mississippi Valley Tekeitory Generally speaking, the adjustment of rates to local stations is peculiar to the individual carriers. In some cases the rates from certain specified basing points, such as Cairo, 111., and Memphis, Tenn., are fixed and the rates from other points of origin are made by applying the differentials used in making the rates to common points in the vicinity of such local points; in other cases the rates are made certain differentials over the rates to adjacent common points; and in still other cases they are made on the lowest combination. To illustrate more clearly, a few examples are given of the adjustment to points on a few of the principal roads in the territorv. 263 264 FREIGHT RATES : SOUTHERN TERRITORY (a) To Local Stations on the Alabama S Vichsburg Railway and Neiv Orleans <& Northeastern Railroad The class and commodity rates to local stations on the Alabama & Vicksburg Raihvay and New Orleans & Northeastern Railroad are made by adding the differ- entials shown in Tables 61 and 62 to the rates to Jack- son or Meridian, Miss. TABLE 61 Adjustment of Class Rates to Stations on the Ala- bama & ViCKSBUEG Railway and New Orleans & Northeastern Railroad From Ohio and Missis- sippi RnrER Crossings, Nashville and Chattanooga, Tenn. To Gbodps Differentials in Cents per 100 Pocnds Except as Noted Remarks 1 2 Classes' 3 4 5 6 A B \i 10 20 20 9 17 17 9 7 15 12 15 12 5 9 9 3 6 6 3 3 5 5 5 5 Over rates to Jack- 2« son or Meridian, 3' Miss. To Gboups Differentials in Cents per 100 Pounds Except as Noted Remarks C D! Classesi D» E H Fs 4 F' « 1» 8 12 12 3 6 6 6 7 10 12 10 12 7 12 12 7 16 11 24 11 24 Over rates to Jack- 2« son or Meridian, 37 Miss. iGoverned by the Southern Classification. «C. L. «L. C. L. •Per barrel. ^The following stations, located on the Alabama & Vlcksburg Railway, comprise Group 1: Dixon, Miss. Champion Hill, Miss. Bovina, Miss. Clinton, Miss. Edwards, Miss. Newmans, Miss. Norrell, Miss. Smiths, Miss. Military Park, Miss. Bolton, Mise. Beecbwood, Miss. INTERIOR MISSISSIPPI POINTS 265 •The following etatlone, located on the Alabama & Vicksburg Railway, comprii* Group 2: _ Thomas Spur, Miss. Lawrence, Miss. Lake, Miss. Broach, Miss. Schryver. Miss. Muskegon, Miss. Forest, Miss. Raworth, Miss. Kalem Spur, Miss. Morton, Miss. Clarksburg, Miss. 'The following stations, located on the New Orleans & Northeastern Railroad, comprise Group 3: Durham, Miss. Lost Gap, Miss. Grahams, Miss. Meehan Jet., Miss. Point, Miss. Chunky. Miss. Ragland, Miss. Weatherford, Miss. Hickory, Miss. Paula, Miss. Skinner and Simmons, Miss. Pelahatchie, Miss. Milroy, Miss. Guide, Miss. Rankin, Miss. Lackey, Miss. Brandon, Miss. Rice Hill, Miss. Greenfield, Miss. Howell, Miss. Pearsons, Miss. Arundel, Miss. Savoy, Miss. Bullard, Miss. Basic, Miss. Wautubbie, Miss. Beatrice, Miss. Pachuta, Miss. Barnett, Miss. Vossburg, Miss. Heidelberg, Miss. Haney, Miss. Sandersville, Miss. Errata, Miss. Hawkes, Miss. Anderson, Miss. Alice, Miss. Tawanta, Miss. Moselle, Miss. Albertson's Mill, Miss. Norman, Miss. Eastabutchie, Miss. Gunn Spur, Miss. Petal, Miss. Bon Homme, Miss. Richburg, Miss. Okahola, Miss. Purvis, Miss. Harmon, Miss. Tolowah, Miss. Piotona, Miss. Lumberton, Miss. Red Top, Miss. Hatten Spur, Miss. Hillsdale, Miss. Orvisburg, Miss. Poplarville, Miss. Derby, Miss. Tyler, Miss. Millard, Miss. Log Spur, Miss. McNeil. Miss. Tate, Miss. Watson's Spur, Miss. Carriers, Miss. Ozona, Miss. Richardson, Miss. Rosa, Miss. Picayune, Miss. Nicholson, Miss. Benton, La. Honey I iland. La. Pearl River, La. St. Joe, La. Alton, La. TABLE 62 Adjustment of Commodity Rates to Stations on the Alabama & Vicksburg Railway and New Or- leans & Northeastern Railroad DirFEHENTlAL8> IN Cents per 100 Pounds Except AS Noted Commodities in Carloads To GROT7PB a 1 i jtf REMARXa •a a o OS CD 2 eg 1 4 et 1 w a 01 8 a u 3 a s 3 a ■3 •a C OS ^ 1^ "3 03 a a •c V a 3 U fa (K h-i hJ O PM tf CD m CO > 1« 3 5 5 3 5 5 3.5 5.5 5.5 3 5 5 3 6 5 3 5 5 3 5 5 60 100 100 3 5 6 3 5 5 3 5 5 3 5 5 Over rates to Jack- 2« son or Meridian. 3« Miss. •Governed by the Southern Classification. 'Per ton. 2,240 pounds. 'See footnote 5 to Table 61. LouisviIle. . . . Peoria Over Cairo rates Pana Indianapolis Chicago Milwaukee 6 5 4 3 2 2 2 2 2 2 2 2 4 Over Chicago rates >Gover&ed by the Southern Claaaifieatiotu •Par barrel. 294 FREIGHT RATES : SOUTHERN TERRITORY The class rates from Memphis to Tupelo having been fixed, the class rates from other points of origin are made on the differential basis set forth in Table 68. (l) To New Albany, Miss. The class rates to New Albany, Miss., are the same as the class rates to Tupelo, Miss., from all points of origin, except from Memphis, Tenn., from which the class rates are fixed arbitrarily as follows: Classes 123456ABCDEHF Rates 54 45 34 31 27 21 19 23 15 14 22 27 30 (m) To Aclcerman, Miss. The base point for the class rates to Ackerman, Miss., is Cairo, 111., from which point the class rates are estab- lished as follows: Classes 12 3 4 5 6 Rates 80 65 50 45 38 35 Classes A B C D E H F C.li. L.C.L. C.L. L.C.t. C.L. L.C L. C.L. L.C.L. CX. L.C.L. Rates 28 30 32 37 23 28 19 23 30 38 42 50 The class rates from Cairo to Ackerman having been fixed, the class rates from other points of origin, except from Memphis, Tenn., are made by adding the same dif- ferentials to the class rates from Cairo as those shown in Table 68. The class rates from Memphis to Ackerman are fixed arbitrarily as follows: Classes 1 2 3 4 5 6 Rates 63 61 38 35 29 27 Qasses A B C DEEP C.L. L.C.L. C.L. l/.C.L. C.L. L.C.L. C.L. L.C.L. C.L. t.C.I.. Rates 21 25 28 31 18 23 IS 19 22 30 32 40 INTERIOR MISSISSIPPI POINTS 2»i (n) To Agricultural iD-SHORT-HAUL CLAUSE 357 and fixed charges and leave to their stockholders even a mod- erate return. • • • From the foregoing it is seen that the allegations of the carriers have been sustained to a great extent and, as evidenced by the orders of the Interstate Commerce Commission issued in connection v^ith this case, the strict observance of the long-and-short-haul principle was required in but few instances. The orders issued, however, indicate that the Commission was quite con- sistent in denying the continuance of rates to inter- mediate points which were on a higher basis than the actual combination of through rates to the base points plus the local rates therefrom. A careful consideration of these orders is especially recommended to those who are interested in the ship- ping of goods from or to this territory, as many sub- stantial reductions have been ordered which may influ- ence to some degree commercial quotations that are based on existing rates of freight and the routes \ia which traffic has been previously forwarded to destina- tion. ' '^ '3*1^1^ In conclusion, it is hoped, now that the meddlesome long-and-short-haul clause has been construed for all time in so far as this territory is concerned, that the general public will unite with the carriers in an endeavor to develop the basing-point system of rates to the highest stage of efficiency, in the belief that with this most perplexing question settled other differences are of small moment and are such as may easily be adjudicated between the parties interested. TEST QUESTIONS These questions are for the student to use in testing his knowledge of the assignment. The answers should be written out, but are not to be sent to the University. 1. "What states are embraced in Mississippi Valley Rate Territory ? 2. What is meant by the term "potential water competi- tion"? 3. From the East to the Gulf ports, what route attracts the greatest volume of traffic? 4. In connection with the rates from Eastern Seaboard Territory, what is meant by the term "maximum absorption"? 5. With reference to the all-water rates to Gulf ports, how are the rates of the rail-and-water routes adjusted? 6. Upon what basis are the all-rail rates established from the Virginia Cities to the Gulf ports ? 7. What is the relation of the rates to Mobile, Ala., as con- trasted with the rates to New Orleans, La. ? 8. On traffic to Vicksburg, Miss.,what scale of differentials are the Gulf routes conceded on traffic from the East? 9. What adjustment is employed in establishing rates from Nashville, Tenn., to New Orleans, La. ? 10. May the rates from Raleigh, N. C, to Mobile, Ala., ex- ceed the rates from Lynchburg, Va., to the same destination ? 11. Upon what basis were the rates from St. Louis, Mo., to New Orleans, La., primarily established? 12. Do the rates from Chicago, III, to New Orleans, La., reflect in any measure the rates from New York City to the same destination? 13. How arc the rates established from interior points in the state of Illinois and from Central Freight Association Ter- ritory ? 14. What is understood by a ** differential adjustment"? 15. What are the class rates on the first six classes from Bvansville, Ind., to Mobile. Ala.? ass TEST QUESTIONS 359 16. In connection with the New Orleans, La., adjustment, what may be said with reference to the application of rates from Cairo, 111. ? 17. What rates are applied from Lawrenceburg, Ind., to Mobile, Ala. ? 18. Ashland, Ky., is ordinarily considered as a Western Termini; as such, what rates would be applied therefrom on traffic destined to New Orleans, La. 1 19. Name the more important sub-territories or groups into which the larger part of Central Freight Association Territory is divided. 20. How are the class rates from Traverse City, Mich., to New Orleans, La., constructed? 21. On traffic originating at non-competitive points in the southeast, what is the general adjustment of rates to and from the Gulf ports? 22. Are the class rates and the commodity rates from St. Louis, Mo., fixed under the same principle? 23. Assuming that a commodity carried a rate of 21 cents from Nashville, Tenn., to Mobile, Ala., how would the rates from Peoria, 111., be adjusted? 24. If a rate of I51/2 cents per 100 pounds were established from Cincinnati, Ohio, to New Orleans, La., what would be the rate from Milwaukee, Wis. ? 25. If a rate of $6 per ton of 2,000 pounds were established from St. Louis, Mo., to New Orleans, La., what would be the corresponding rate from Springfield, 111.? 26. Assuming that the rate on pig iron from Chicago, TIL, to New Orleans, La., were $2.75 per ton of 2,240 pounds, what would be the rate to apply from Louisville, Ky. ? 27. How are the rates on shipments of live stock fixed? 28. Upon what basis are the rates to Gulfport, Miss., estab- Ushed? 29. What are the class rates on the first six classes from De- troit, Mich., to Pensacola, Fla. I 30. Is water service available at the present time between Memphis, Tenn., and St. Louis, Mo.? 31. Does water competition have to be observed in all ca»e« in fijcing the rates via the rail lines? 360 TEST QUESTIONS 32. Is the grouping of territory for rate-making purposes the same in the case of Memphis, Tenn., as in the case of New Orleans, La.? 33. What are the current class rates from the St. Louis- Louisville group to Memphis, Tenn. ? 34. Is the scale of differentials applicable from Peoria, 111., to Memphis, Tenn., the same as that applicable in the New Or- leans, La., adjustment? 35. What are the class rates from Savannah, Ga., to Mem- phis, Tenn. ? 36. Is there any fixed basis for the adjustment of north- bound commodity rates from Mobile, Ala., to Memphis, Tenn. ? 37. A commodity rate of 19 cents being established from Cincinnati, Ohio, to Memphis, Tenn., what is the corresponding rate from Chicago, 111.? 38. Under what adjustments are the all-rail class rates from New York, N. Y., to Memphis, Tenn., constructed? What are the current rates? 39. What are the present rail-and-water rates from Boston, Mass., to Memphis, Tenn.? 40. What is to be understood by the term "interior Missis- sippi Valley points"? 41. Are the rates charged by the carriers on local traffic regulated to any extent by the rates charged by the other carriers ? 42. How are the rates from Knoxville, Tenn., to local sta- tions on the Alabama & Vicksburg Railway constructed f 43. What differential adjustment is used in establishing the rates from Chicago, 111., to local stations on the Illinois Cen- tral Railroad? 44. What is to be understood by the expression "lowest combination as maxima"? 45. To stations on the Mobile & Ohio Railroad south of Cor- inth, Miss., how are the rates fixed from Birmingham, Ala., and group? 46. To what cause may be attributed the low scale of rates applying from New York City to Vicksburg, Miss. ? 47. Name some of the more important points in Buffalo- Pittsburgh Territory. TEST QUESTIONS 361 48. What are the rates on the first six classes from Carter- ville, 111., to Meridian, Miss.? 49. What are the rates on Classes A, B, and C from Mil- waukee, Wis., to Jackson, Miss.? 50. How, as a general rule, are the rates made from Cen- tral Freight Association Territory to Jackson and Meridian, Miss.? 51. What are the rates on the numbered classes from Chat- tanooga, Tenn., to Jackson, Miss.? 52. How are the rates adjusted from Knoxville, Tenn., to Jackson, Miss. ? 53. How are the rates to Hattiesburg, Miss., fixed with re- lation to the rates to Jackson, Miss. ? 54. What is meant by the term "a base point"? 55. What is the base point for the construction of rates from Chicago, 111., to Union City, Tenn. ? 56. How are the rates to Martin, Gibbs, and Rives, Tenn., fixed with relation to the rates to Union City, Tenn. ? 57. What are the rates on the lettered classes from Carter- ville. 111., to Humboldt, Tenn.? 58. What is the Class-F rate from Nashville, Tenn., to Jack- son, Tenn.? 59. What is the Class-D rate from Indianapolis, Ind., to Grand Junction, Tenn.? 60. Are the rates from Memphis, Tenn., made upon any fixed basis? 61. What is meant by the term "arbitrarily established"? 62. What is the base point for the construction of rates to Tupelo, Miss. ? 63. What are the rates on the first three classes from Mem- phis, Tenn., to Winona, Miss. ? 64. What are the basing rates from Memphis, Tenn., to Yazoo City, Miss,? 65. What are the minimum rates from Chattanooga, Teim., to Jackson, Tenn. ? 66. Upon what basis are the rates constructed from Knox- ville, Tenn., to junction points north of Grand Junction, Tenn., and Corinth, Miss. ? 362 TEST QUESTIONS 67. What are the rates on the numbered classes from At- lanta, Ga., to Corinth, Miss.? 68. In the rate adjustment in Kentucky-Tennessee Terri- tory, is the competition of various kinds experienced to as great an extent as in other portions of Southern Territory ? 69. What compels the relatively low rates from Lexington, Ky., to the Ohio River? 70. To and from the East, what basis is employed in estab- lishing the rates to and from Lexington and Winchester, Ky.T 71. As a general proposition, are the rates to west Ken- tucky junctions, such as Central City, made on the same basis as the local rates of the carriers ? 72. What constitutes an important item in the outbound tonnage of Clarksville, Tenn. ? 73. May the water competition to Clarksville and Nash- ville, Tenn., be regarded as active or potential at this time ? 74. How are the rates from New York City to Nashville, Tenn., fixed? 75. Is the long-and-short-haul clause observed as to rates between Cincinnati, Ohio, and Chattanooga, Tenn. ? 76. When the rates from Cincinnati, Ohio, to Chattanooga, Tenn., were reduced by the Interstate Commerce Commission, was a similar reduction put into effect at Knoxville, Tenn. ? 77. What rates are applied as maxima from Louisville, Ky., and Cincinnati, Ohio, to Morristown, Tenn.? 78. What basis is employed in establishing rates from Cin- cinnati, Ohio, to Johnson City, Tenn. ? 79. What general reason may be advanced for the estab- lishment of commodity rates? 80. How do the outbound commodity rates from Southern Territory compare with the inbound commodity rates ? 81. Outline briefly the current adjustment employed in es- tablishing rates on lumber from points in Southern Territory. 82. On cotton goods, do the mills in the Carolinas pay a higher rate to western points than the Georgia mills? 83. What is meant by the expression **the principle of af» fo?»diDff a free movement"? TEST QUESTIONS 363 84. What market of production outside of Southern Terri- tory influences the rates on furniture from points in Southern Territory ? 85. When did the Act to Regulate Commerce originally be- come effective? 86. Summarize briefly the conditions affecting transporta- tion that existed prior to the passage of the Act. 87. What is the substance of the long-and-short-haul clause ? 88. Was the requirement of the long-and-short-haul clause complied with by the carriers throughout the country? 89. Does the contention of the carriers that through traffic may be handled more economically than local traffic appear logical to you? 90. What was the first case of any note that was conducted by the Interstate Commerce Commission? What were the Commission's findings in this case? What was the effect of its order? 91. Did the court at that time sustain the contentions of the carriers or the order of the Commission ? 92. What was the effect of the legislation of 1910 with re- gard to the long-and-short-haul clause? 93. Summarize briefly the rules of law that affect this situa- tion. 94. Upon what lines was the defense of the adjustment conducted by the carriers? 95. What were the findings of the Interstate Commerce Commission upon the rehearing of this case ? APPENDIX A SECTION 4 OF THE ACT TO REGULATE COMMERCE Throughout this treatise, continued reference to the fourth section of the Act to Regulate Commerce, styled the long-and- short-haul clause, has been made and we are accordingly repro- ducing this section of the Act in its entirety in order that it may be carefully studied in connection with the opinions expressed and the decisions rendered which are based thereon. Sec. 4. (As amended June 18, 1910.) That it shall be unlawful for any common carrier subject to the provisions of this Act to charge or receive any greater compensation in the aggregate for the transportation of passengers, or of like kind of property, for a shorter than for a longer distance over the same line or route in the same direction, the shorter being included within the longer distance, or to charge any greater compensation as a through route than the aggregate of the intermediate rates subject to the provisions of this Act; but this shall not be construed as authorizing any common carrier within the terms of this Act to charge or receive as great compensation for a shorter as for a longer distance: Provided, hoirever. That upon application to the Interstate Commerce Commission such common carrier may in special cases, after investigation, be authorized b}' the Commission to charge less for longer than for shorter distances for the transportation of passengers or property; and the Commission may from time to time prescribe the extent to which such designated common carrier may be relieved from the operation of this section: Provided, further. That no rates or charges lawfully existing at the time of the passage of this amendatory Act shall be required to be changed by reason of the provisions of this section prior to the expiration of six months after the passage of this Act, nor in any case where application shall have been filed before the Commission, in accordance with the provisions of this section, until a determination of such application by the Commission. Whenever a carrier by railroad shall in competition with a water route or routes reduce the rates on the carriage of any species of freight to or from competitive points, it shall not be permitted to increase such rates unless after hearing by the Interstate Commerce Commission it shall be found that such proposed increase rests upon changed conditions other than the eUmina- tion of water competition. It must not be understood, however, that violations exist in this territory alone, for such is not the case. The circuitous lines in Official Classification Territory violate in many instances, under the Central Freight Association and Trunk Line mileage basis, the provisions of this Act. Likewise, the Trans-Conti- nental trunk lines maintain higher rates to intermediate points from certain territories than they do to terminal cities. In the latter case, however, the Commission has indicated that the carriers were justified to some extent in this practice and has authorized the continuance of the policy.^ 'See Part .3 of "Freight Rates—Western Territory." ;;64 SBOTION 4 OF TBE ACT 366 It would be manifestly impossible for the Interstate Com- merce Commission to analyze every tariff and rate that is filed with it by the carriers in order to determine whether or not the provisions of the Act are violated. For this reason, the Commission has incorporated in its tariff regulations a very liberal rule relieving the carriers of the necessity of pubhshing specific rates from or to all intermediate stations not to exceed the most distant point of origin. This rule is embodied in Tariff Circular No. 18-A and reads as follows: 77. PunUSHINQ AND FiLING TARIFFS UNDER AMENDED FoURTH SEC- TION OF THE Act (adopted February 13, 1911). — If tariffs containing com- modity rates applicable from points of production provide for their applica- tion from intermediate points not named, it would be necessary to post those tariffs at every intermediate point, although such shipment may never be made from a point not specifically named. If such tariffs do not provide for application from intermediate points, they would conflict with the amended fourth section of the Act whenever the class rate or a combination from an intermediate point exceeds the commodity rate from a more distant point. Tariffs should not contain volumes of unnecessary rates, and it is unde- sirable to require the posting of large numbers of tariffs at points from which no shipments are likely to move. Therefore, until further ordered, carriers may file tariffs containing commodity rates apphcable from known points of production without making such rates applicable from all intermediate points. Each such tariff .shall bear on its title-page the folIowin2; notation: By authority of Rule 77 of Interstate Commerce Commission Tariff Cir- cular No. 18-A, this tariff (these rates) is not (are not) made applicable from (or to) all intermediate points. Upon reasonable request therefor rates which will not exceed those in effect from (or to) more distant points will, under authority granted by the Interstate Commerce Commission, be estab- lished from (or to) any intermediate point hereunder upon one day's notice to the Commission and to the public. In ob.servance of this Rule carriers may on one day's lawful notice to the Commission and to the public extend the appUcation of the rates shown in the tariff by establishing such rates from intermediate points which do not exceed the rates from the more distant point on same Une or route, provided no advance is thereby made in any existing rate. Ordinarily rates to intermediate points of destination not named in the tariff can properly and should be provided for by a clause in the tariff authoriz- ing the application of its rates to intermediate points of destination, but in instances where the intermediate application of rates is impracticable or where conflicting rates would result therefrom, commodity rates may in the first instance be established to such intermediate destinations not higher than to more distant points on same line or route on like notice as from points of oridn, provided no advance is thereby made in any existing rate. For the purpose of eliminating from tariffs higher charges for shorter hauls as same are referred to in the amended fourth section of the Act, and when same have been in effect thirty days or more, carriers may make such changes effective on one day's lawful notice to the Commission and to the public, provided such changes are in each instance reductions in rates, fares, or charges. (See Rule 56.) A tariff or supplement containing rates or fares issued upon short notice under authority of this Rule must bear on its title-page or in connection with the item containing the rate or fare the following notation: Issued under authority of Rule 77 of Interstate Commerce Commission Tariff Circular No. 18-A. The rate (fare, or rates or fares) hereby reduced 866 APPENDIX appears (or appear) in tariff I. C. C. No. — — , item (or page) -, and the rate (fare, or rates or fares) from (or to) Jname it], the more distant point, appears (or appear) in tariff I. C. U. No. , item (or page) . When the Commission has issued an order granting to a carrier authority to depart from the provisions of the amended fourth section of the Act and to charge higher rates or fares for shorter than for longer distances over the same line or route, the title-page of each tariff issued and filed under such authority must bear the following notation: This tariff contains rates (faros) that are higher for shorter distances than for longer distances over the same route, such departure from the terms of the amended fourth section of the Act to regulate commerce is permitted by authority of Interstate Commerce Commission Order F. S. No. — of (date] 19—. ■^Tien the Commission has issued an order granting to a carrier authority to depart from the provisions of the amended fourth section of the Act and to charge rates or fares higher than the aggregate of the intermediate rates or fares subject to the Act, the title-page of each tariff issued and filed under such authority must bear the following notation: This tariff contains rates (or fares) that exceed the sums of the intermediate rates (or fares) subject to the Act. Such departure from the terms of the amended fourth section of the Act to regulate commerce is permitted by authority of Interstate Commerce Commission Order F. S. No. — of [date] 19—. Nothing in this Rule may be construed as waiving any of the provisions of the amended fourth section of the Act to regulate commerce. The tarifif publications of the carriers should, therefore, be consulted for departures from the provisions of the long-and- short-haul clause, for when such departures exist, they must be specifically provided for, as indicated in the foregoing rule. APPENDIX B READJUSTMENT OF RATES TO SOUTHEASTERN TERRITORY FROM EASTERN POINTS OF ORIGIN In connection with this and subsequent divisions of this work, it has seemed desirable to consolidate the orders of the Interstate Commerce Commission pertaining to the petition of the carriers in the long-and-short-haul case under subdivisions arranged according to territorial points of origin. In this sub- division, therefore, will be found the orders of the Commission affecting traffic originating at the Eastern Cities and destined to the following points: Charleston, S. C. New Orleans, La. Memphis, Tenn. Dublin, Ga. Selma, Ala. Birmingham, Ala. Atlanta, Ga. Savannah, Ga. Mobile, Ala. Macon, Ga. Columbus, Ga. Demopolis, Ala. Meridian, Miss. Athens, Ga. Brunswick, Ga. Pcnsacola, Fla. Milledgeville, Ga. Eufaula, Ala. Tuscaloosa, Ala. Jackson, Miss. Cordele, Ga. Jacksonville, Fla. Augusta, Ga. Hawkinsville, Ga. Montgomery, Ala. Rome, Ga. Albany, Ga. Continuances The following continuances were allowed. To South Atlantic and Gulf Ports The continuance of class and commodity rates from New York City to Charleston, S. C, Savannah and Brunswick, Ga., Jacksonville, Fla., New Orleans, La., Mobile, Ala., and Pensacola, Fla., and to other stations con- tiguous thereto to which rates from New York are made by combination on the above-named points of destination, which are lower than the rates con- currently applicable on like traffic to intermediate stations: Provided, That the rates to intermediate local stations which have not been depressed by combination on contiguous competitive points are not increased. To Points Intermediate to Augusta, Ga., Memphis, T&nn., Macon and MilledgeidUe, Ga. The continuance of class and commodity water-and-rail rates from New York Citv to Augusta, Ga., Memphis, Tenn., Macon, Milledgeville, Hawkins- ville, Dublin, and Columbus, Ga., Eufaula, Montgomery, Selma, Demopolis, and Tuscaloosa, Ala., and to points to which rates are made by combination on the above-named points of destination which are lower than the rates con- currently applicable on like traffic to intermediate stations: Provided — • 367 368 APPENDIX First. That on or before April 1, 1915. on the route from New York to Augusta (Ocean Steamship Company of Savannah to Savannah, Ga , Central of Georgia Railroad from Savannah to Augusta, Ga.; con.structive mileage, 382), the rates to stations between Savannah and Augusta are so corrected as not to exceed the rates for two-line hauls for like distances shown in Table A . Second. That on the route from New York to Memphis (Pennsylvania Railroad to Potomac Yards, Va.; Southern Railway from Potomac Yards to Lynchburg, Va.; Norfolk and Western Railway from Lynchburg, Va., to Bristol, Tenn.; Southern Railway from Bristol, Tenn., to Memphis, Tenn.* 1,160 miles), the rates to stations between Chattanooga and Memphis affectea by combination on Memphis shall not exceed such combination and the rates to stations not so affected are so corrected as to ehminate existing violations of the long-and-short-hau! clause. Third That on or before April 1, 1915, on the routes from New York to Macon (Ocean Steamship Company of Savannah to Savannah, Ga.; Central of Georgia Railway from Savannah to Macon, Ga ; constructive mileage, 441), Milledgeville (Ocean Steamship Company of Savannah to Savannah, Ga. ; Central of Georgia Railway from Savannah, Ga., to Milledgeville, Ga.; constructive mileage, 438), Hawkinssville (Ocean Steamship Company of Savannah to Savannah, Ga.; Central of Georgia Railway from Savannah, Ga.; to Dubhn, Wrightsville, and Tennille; Dublin to Hawkinsville; con- structive mileage, 434), and Dublin (Ocean Steamship Company of Savannah to Savannah, Ga.; Central of Georgia Railway from Savannah, Ga., to Dublin; constructive mileage, 393), the rates to stations between Savannah on the one hand and Macon, Milledgeville, Hawkinsville, or Dublin, on the other hand are so corrected that they do not exceed the rates over two-hne hauls for like distances .shown in Table A. Fourth. That on the route from New York to Columbus (Ocean Steam- ship Company of Savannah to Savannah; Central of Georgia Railway from Savannah to Columbus; constructive mileage, 541; Atlantic Coast Line Railroad from Savannah, Ga., to Albany, Ga.; constructive mileage, 458; Central of Georgia Railway from Savannah, Ga., to Eufaula, Ala.; construct- ive mileage, 585), the rates to stations from Everett, Ga., to Schatulga, Ga., are not increased. Fifth. That on or before April 1, 1915, on the route to Montgomery (Ocean Steamship Company of Savannah to Savannah. Ga.; Seaboard Air Line Railway from Savannah to Montgomery, Ala.; constructive mileage, 588), the rates to stations east of Hurtsboro, Ala., are so corrected as not to exceed the present rates to Hurtsboro, viz., 1-30, 111, 98, 83, 69, and 65 cents der 100 pounds on Clas.ses 1 to 6, respectively, and the rates to stations between Hurtsboro and Montgomery are so corrected as not to exceed the rates to Hurtsboro by more than 5 per cent. Sixth. That on the route from New York to Selma (Ocean Steamship Company of Savannah to Savannah ; Seaboard Air Line Railway from Savan- nah to Montgomery; Western Railway of Alabama from Montgomery o Selma; constructive mileage, 638), the rates to stations between Montgomery and Selma affected by combination on one of these points shall not exceed such combination and the rates to stations not so affected are not increased. Seventh. That on or before April 1, 1915, on the route from New York City to Domopolis (Ocean Steamship Company of Savannah to Savannah; Seaboard Air Line Railway from Savannah to Montgomery; Western Railway of Alabama from Montgomery to Selma; Southern Railway from Selma to Demopolis; constructive mileage, 687), the rates to stations between Selma and Demopolis are so corrected that they do not exceed the rates to Demopolis by more than 20, 18, 15, 13, 11, and 10 cents per 100 pounds oa Classea 1 to 8, rwipectively. READJUSTMENT OF RATES 369 To Rome, Ga., Birmingham, Ala., Meridian and Jackson, Misa. The continuance of water-and-rail rates on classes and commodities from New York City to Rome, Ga., Birmingham, Ala., and to Meridian and Jackson, Miss., and to points contiguous thereto to which rates are made by combination on these points, which are lower than the rates concurrently appUcable on hke traffic to intermediate stations: Provided — First. That on or before April 1, 1915, on the route from New York to Rome (Old Dominion Steamship Company to Norfolk, Va.; Southern Rail- way through Atlanta to Rome; constructive mileage, 850), the rates to sta- tions between Atlanta and Rome are so corrected that they do not exceed the rates over two-line hauls of like distances shown in Table A. Second. That on or before April 1, 1915, on the route from New York to Meridian (Old Dominion Steamship Company to Norfolk, Va.; Southern Railway from Norfolk, Va., to Birmingham, Ala.; Alabama Great Southern Railroad from Birmingham to Meridian; constructive mileage, 882), the rates from New York to stations on the Alabama Great Southern Railroad between Birmingham and Meridian are so corrected as not to exceed the rates over two-Une hauls of like distances shown in Table A. Third. That on or before April 1, 1915, on the route from New York to Jackson (Old Dominion Steamship Company to Norfolk, Va.; Southern Railway from Norfolk, Va., to Birmingham; Alabama Great Southern Rail- road from Birmingham to Meridian; Alabama & Vicksbarg Railway from Meridian to Jackson; constructive mileage, 978), the rates to stations on the Alabama & Vicksburg Railway between Meridian and Jackson are so cor- rected that the rates to stations between Meridian and Newton do not exceed the present rates to Newton, and the rates to stations between Newton and Jackson do not exceed the rates to Jackson by more than 12, 11, 10, 9, 9, and 8 cents per 100 pounds on Classes 1 to 6, respectively. Fourth. That on the route from New York to Birmingham (Clyde Line to Charleston; Southern Railway from Charleston to Augusta; Georgia Railroad from Augusta, Ga., to Atlanta; Southern Railway from Atlanta to Birmingham; constructive mileage, 729), the rates to stations between At- lanta and Birmingham that are affected by combination on Atlanta or Birming- ham shall not exceed such combination and the rates to stations not so affected are not increased. The Alabama. Tennessee & Northern Railroad Company; Apalachicola Northern Railroad Company and L. H. Dimmitt, receiver thereot"; Atlanta & St. Andrews Bay Railway Company; Augusta Southern Railroad Company; Birmingham & Atlantic Railroad Company; Birmingham, Columbus & St. Andrews Railroad Company and A. D. Campbell, receiver thereof; Birming- ham & Southeastern Railway Company; Chattahoochee Valley Railway Company; Chicago, Memphis & Gulf Railroad Company; Fern wood & Gulf Railroad Company; Fitzgerald, Ocilla & Broxton Railroad Company and E. T. Lamb, receiver thereof; FUnt River & Northeastern Railroad Com- pany; Florida Central Railroad Company and R. A. McCranie, receiver thereof; Gainesville Midland Railway; Georgia Coast & Piedmont Railroad Company; Georgia & Florida Railway; The Georgia, Florida & Alabama Railway Company; Georgia Northern Railway Company; Georgia South- western & Gulf Railroad Company; Greene County Railroad Company; Hawkinsville & Florida Southern Railway Company; Hawkinsville & Western Railroad Company; Kentwood & Eastern Railway Company; Liberty- White Railroad Company; Macon & Birmingham Railway Company and John B. Munson. receiver thereof; Macon, DabUn & Savannah Railroad Company; Marianna & Blountstown Railroad Company; Meridian & Mem- phis Railway; Natchez, Columbia & Mobile Railroad Company; Ocilla Southern Railroad Company; Pascagoula, Moss Point & Northern Railroad «70 APPENDIX Company; Register & Glenn ville Railway; Savannah <& Noithwfcrtem Rail- way; Savannah & Statesboro Railway Company; South Georgia Railwaj Company; Sylvania & Girard Railroad Company; Tennessep, Alabama 8 Georgia Railroad Company; Valdosta, Moultrie & Western Railroad Com- pany and B. P. Jones, C. I. Harrell, and A. L. Davis, receivera thereof: Wadley Southern Railway Company; and Wrightsville & Tennille Railroad Company are authorized to continue for two years via the lines named the same rates from New York City and related points and the Ohio and Missis- sippi River crossings to and via their junctions with other lines as are con- currently effective to the same points via the lines of their competitors, and to continue higher rates to intermediate local stations on the linea named above: Provided, That the present differences between the rates to local and junction points are not increased. Denials The petitions to continue violations to the following pointe were denied. To Albany, Ga. The continuance of lower rates on classes and commodltie* from N»w Vork City to Albany, Ga., than the rates concurrently appUcabl* on lik« traflBc to mtermediate stations is denied. To Atlanta, Athens, and Cordele, Ga. The continuance of lower class and commodity rates from New York to Atlanta, Athens, and Cordele, Ga., via Norfolk and the south Atlantic ports and from New York to Meridian and Jackson, Miss., via New Orleans, La., and Mobile, Ala., than the rates concurrently applicable on like traffic to intermediate stations is denied. The rates prescribed herein as maxima to be observed at intermediate points are as set forth in Table A. And it is further ordered. That in all those instances covered by this order of the Commission where carriers have been authorized to maintain lower class and commodity, rates to more distant than to intermediate points, items in tariffs containing commodity rates to more distant points, which rates are not made applicable to intermediate points, shall contain and refer by proper reference mark to a note reading as follows: "The rate named in this item is not applicable to all intermediate points. This departure from the requirements of the fourth section is authorized by I. C. C.'s Fourth Section Order No. 3866. Upon reasonable application there- for a rate will be established to any intermediate point upon one day's notice to the Commission and to the pubhc which will not exceed the rate to the next more distant point to which a rate is named by more than the class rate on the class to which this commodity belongs exceeds the rate on the same, class to the more distant point." Constructive Mileage The term "constructive mileage" alluded to in the foregoing ii employed in connection with water-and-rail routes and indi- KKADJUJSTMifiNT (JF KAI^Bb 371 TABLE A' OlSTANCUS too zniles: One line Two or more lines 130 miles: One line Two or more lines «00 miles: One lin» Two or more lines *aO miles: One line Two or more lines aiX) miles: One line Two or more lines 650 miles: One line Two or more lines fiOO miles: One line Two or more linea erating routea from Louisville and other lower Ohio River crossings through territory east of the said line to points west of such line are authorized to continue such de- parture from the requirements of the fourth ser.tion aa may be naoewary to READJUSTMENT OF RATES 37li preserve the existing relationship between the rates from Cincinnati, Ohio, on the one hand and the lower Ohio River crossings on the other to the terri- tories east and west of the hne above described. The carriers operating routes from Ohio River Crossings or points north thereof to Meridian, Miss., via Jackson, Miss., or to Jackson via Meridian, are authorized to establish and maintain the same rates to Jackson and Meridian as are concurrently effective at the same points via direct lines, and to continue rates to points between Meridian and Jackson the following dif- ferentials higher than to Jackson or Meridian: Classes . . 1 2 3 3 3 4 2 5 2 6 2 A 2 B 3 C 2 D 2 E 2 H 2 F Differentials . . . .. 3 4 The Yazoo & Mississippi Valley Railroad Company is authorized to con- tinue the same rates from Memphis, Tenn., and points north and west thereof to Jackson, Miss., via their lines that are concurrently effective from and to the same points via the Illinois Central Railroad and to continue for two years from the effective date of this order higher rates to intermediate points: Provided, That on or before April 1, 1915, the rates to intermediate points are so corrected as to not exceed the rates for like distances shown in Table A. To Charleston, S. C, Savannah and Brunswick, Ga., Tampa and Jacksonville, Fla. The continuance of class and commodity rates from New Orleans, La.» to Charleston, S. C, Savannah and Brunswick, Ga., Tampa and Jacksonville* Fla., and to stations contiguous thereto, to which rates from New Orleans are made by combination on the above-named points of destination which are lower than the rates concurrently appUcable on like traflBc to intermediate points: Provided — First. That on the route to Charleston (Louisville & Nashville Railroad from New Orleans to Montgomery; West Point Route to Atlanta; Georgia Railroad to Augusta; and Southern Railway to Charleston; 793 miles), the rates to points between Augusta and Charleston not affected by combination on either Charleston or Augusta are not increased and the rates to points between Augusta and Charleston which are made by combination on these points do not exceed such combination. Second. That on or before April 1, 1915, on the route to Savannah (Louisville & Nashville Railroad to Montgomery; Seaboard Air Line Railway from Montgomery to Savannah; 656 miles), the rates to stations west of Helena, Ga., are so corrected as not to exceed the present rates to Helena, and the rates to stations east of Helena are corrected to be not higher than 5 per cent in excess of the rates to Helena, and in no case exceed the combina- tion on Savannah. Third. That on or before April 1, 1915, on the route to Brunswick (Louis- ville & Nashville Railroad to River Junction, Fla.; Atlantic Coast Line Rail- road from River Junction to Brunswick; 623 miles), the rates to stations west of Homerville, Ga., are so corrected that they do not contravene the provi- sions of the fourth section one as against another, and in no case exceed the rates over two-line hauls for hke distances shown in Table A and east of Homerville in no case exceed the combination on Brunswick. Fourth. That on or before April 1, 1915, on the route to Jacksonville CLquisville & Nashville Railroad to River Junction, Fla.; Seaboard Air Line Railway from River Junction to Jacksonville; 612 miles), the rates to station! west of Lee, Fla., are so corrected that they do not contravene the provisions of the fourth section one as against another, and in no case exceed the ratea over two-line hauls for like distances shown in Table A. and rates to stations •atk of I,e« d» not escoed the combination on Jacksonville. 376 APPENDIX Fifth. That on the route to Tampa, Fla., (Louisville & Nashville Rail- road to River Junction, Fla.; Seaboard Air Line Railway from River Junc- tion through Baldwin to Tampa, Fla.; 788 miles), the rates to stations between Jacksonville and Tampa not affected by combination on either of these points are not increased, and the rates to stations between Jacksonville and Tampa which are made by combination on either Jacksonville or Tampa do not exceed such combination. To Augusta, Ga. The continuance of rates on classes and commodities from New Orleans, La., to Augusta, Ga., and to points contiguous thereto, to which rates from New Orleans are made by combination on Augusta which are lower than the rates concurrently apphcable on like traffic to intermediate points: Provided — That on the route from New Orleans to Augusta (Louisville & Nashville Railroad from New Orleans to Montgomery; Western Railway of Alabama and Atlanta & West Point Railroad from Montgomery to Atlanta; Georgia Railroad from Atlanta to Augusta; 664 miles), the rates to stations between Atlanta and Augusta affected by combination on one of these points do not exceed such combination and the rates to stations not so affected are not increased. To Augusta, Macon, and Columbus, Ga., and Montgomery and Selma, Ala. The continuance of class and commodity rates from Cincinnati, Ohio, and Louisville, Ky., to Augusta, Macon, and Columbus, Ga., and to Montgomery and Selma, Ala., and to points contiguous thereto, to which rates from Cin- cinnati and Louisville are made by combination on the above-named points of destination, which are lower than the rates concurrently apphcable on like traffic to intermediate points: Provided — First. That on the route from Cincinnati to Augusta (Cincinnati, New Orleans & Texas Pacific Railway from Cincinnati to Harriman Junction; Southern Railway to Spartanburg, S. C; Charleston & Western Carolina Railway to Augusta; 642 miles), the rates to stations between Spartanburg, S. C, and Augusta not affected by combination on Augusta are not increased, and the rates to stations affected by combination on Augusta do not exceed the combination on Augusta. Second. That on or before April 1, 1915, on the route from Louisville to Augusta (Louisville & Nashville Railroad to Nashville; Nashville, Chat- tanooga & St. Louis Railway to Atlanta; Georgia Railroad to Augusta; 650 miles), the rates to stations between Atlanta and Augusta are so corrected that they do not exceed the rates over two-hne hauls of like distances shown in Table A. Third. That on or before April 1, 1915, on the route from Cincinnati to Macon (Cincinnati, New Orleans & Texas Pacific Railway to Chattanooga; Southern Railway through Rome and Atlanta to Macon; 580 miles), the rates to stations between Atlanta and Macon are so corrected that they do not exceed the rates over two-hne hauls for like distances shown in Table A. Fourth. That on or before April 1, 1915, on the route from Louisville to Macon (Louisville & Nashville Railroad to Birmingham; Central of Georgia Railway from Birmingham to Macon; 647 miles), the rates to stations bet veen Columbus and Macon are so aligned that they do not contravene the pro- visions of the fourth section and do not exceed the rates over two-line hauls of Uke distances shown in Table A. READJUSTMENT OF BATES 377 Fifth. That on or before April 1, 1915, on the route from Cincinnati to Columbus (Cincinnati, New Orleans & Texas Pacific Railway to Chattanooga; Southern Railway through Rome, Atlanta, and McDonough to Columbus, Ga.; 618 miles), the rates to stations between McDonough and Columbus are so corrected that they do not exceed the rates over two-line hauls of like distances shown in Table A. Sixth. That on or before April 1, 1915, on the route from Louisville to Columbus (Louisville & Nashville Railroad to Birmingham; Central of Georgia Railway from Birmingham to Columbus; 547 miles), the rates to stations between Birmingham and Columbus are so corrected that they do not exceed the rates over two-line hauls of like distances shown in Table A. Seventh. That on or before April 1, 1915. on the route from Cincinnati to Montgomery (Cincinnati, New Orleans & Texas Pacific Railway to Chat- tanooga; Southern Railway to Atlanta; Atlanta & West Point Railway and Western Railway of Alabama to Montgomery; 667 miles), the rates to sta- tions between Atlanta and West Point are so corrected that they do not exceed the rates over two-hne hauls of like distances shown in Table A. Eighth. That on the route from Louisville to Montgomery (Louisville & Nashville Railroad; 491 miles), the rates to stations between Calera and Montgomery, Ala., affected by combination on Montgomery shall not exceed such combination and the rates not so affected are not increased. Ninth. That on or before April 1, 1915, on the route from Cincinnati to Selma (Cincinnati, New Orleans & Texas Pacific Railway to Chattanooga; Alabama Great Southern Railroad to Birmingham; Southern Railway to Selma; 590 miles), the rates to stations between Birmingham and Maplesville, Ala., are so corrected as not to exceed the present rates to Maplesville and the rates to stations between Maplesville and Selma are so corrected that they do not exceed the rates over two-line hauls of like distances shown in Table A. Tenth. That on the route from Louisville to Selma (Louisville & Nash- ville Railroad to Montgomery; Western Railway of Alabama to Selma; 541 miles), the rates to stations between Montgomery and Selma unaffected by combinations on those points are not increased and the rates to stations so affected do not exceed such combination. To Birmingham, Ala. The continuance of lower class and commodity rates from New Orleans to Birmingham, Ala., (Louisville & Nashville Railroad; 415 miles) than the rates concurrently applicable on like traffic to intermediate points: Provided, That the rates from New Orleans to stations between Montgomery and Birmingham which are affected by combination on those points do not exceed such combination, and the rates to stations not so affected are not increa.sed. Denials The petitions to continue violations to the following points were denied. To Montgomery and Sdma, Ala., and Macon, Columbus, and Albany, Ga. The continuance of lower rates from New Orleans, La., to Montgomery and Selma, Ala., and to Macon, Columbus, and Albany, Ga., than to inter- mediate points is denied, effective April 1, 1915. 378 APPENDIX To Albany, Ga., and Chaitanooga, Tenn. The continuance of class and commodity rates from Cincinnati, Ohio, and Louisville, Ky., to Albany, Ga., and Chattanooga, Tenn., which are lower than the rates concurrently applicable on like traffic to intermediate points is denied, effective April 1, 1915. To Atlanta, Athens, Cordele, and Rome, Ga. The continuance of lower rates on classes and commodities from New Orleans, La., to Atlanta (Louisville & Nashville Railroad from New Orleans to Atlanta; Western Railway of Alabama from New Orleans to Montgomery; Atlanta & West Point Railway from Montgomery to Atlanta; 493 miles), Athens (Louisville & Nashville Railroad from New Orleans to Montgomery; Western Railway of Alabama and Atlanta & West Point Railway from Mont- gomery to Atlanta; Seaboard Air Line Railway from Atlanta to Athens; 566 miles), Cordele (Louisville & Nashville Railroad from New Orleans to Montgomery; Seaboard Air Line Railway from Montgomery to Cordele; 488 miles), and Rome (Louisville & Nashville Railroad from New Orleans to Birmingham; Southern Railway from Birmingham to Rome; 542 miles) is denied, effective April 1, 1915. To Atlanta, Athens, Rome, and Cordele, Ga., Birmingham, Ala., and Meridian and Jackson, Miss. The continuance of lower class and commodity rates from Cincinnati and Louisville to Atlanta, Athens, Rome and Cordele, Ga., Birmingham, Ala., and Meridian and Jackson, Miss., and from Cairo, 111., St. Louis, Mo., and Chicago, 111., to Meridian and Jackson than the rates concurrently apphcable on like traffic to intermediate points is denied, effective April 1, 1915. It will be noted in these orders of the Commission that the basing points only have been singled out. It follows, however, that these adjustments will be reflected in through rates from adjoining territories, such as from Southwestern Tariff Com- mittee Territory, Western Trunk Line Territory, and Central Freight Association Territory, by reason of the fact that through rates are, as a rule, made by applying the rates of those associa- tions up to the base points plus the rates from the base points to destinations. Consequently, if the maintenance of higher rates to points intermediate to Chattanooga is denied, it neces- sarily follows that the continuance of higher rates to interme- diate points from points basing on Chattanooga is likewise automatically prohibited. APPENDIX D READJT7STMENT OF RATES TO MISSISSIPPI VAI^LEIT POINTS AND GULF PORTS FROM EASTERN AND 'WESTERN POINTS OF ORIGIN In this subdivision will be found the orders of the Interstate Commerce Commission affecting rates from western points of origin to points in Mississippi Valley Territory and related points, viz.: New Orleans, La. Mobile, Ala. Pensacola, Fla. Tampa, Fla. Gulfport, Miss. Memphis, Tenn. Greenville, Miss. Vicksbiirg, Miss. Natchez, Miss. Meriaian, Miss. Jackson, Miss. Continuances The following continuances were allowed. To New Orleans, La., Mobile, Ala., Pensacola, Fla., GvJfport, Miss., and Tampa, Fla. The carriers are authorized to continue class and commodity rates from Cincinnati, Ohio, Louisville, Ky., Cairo, 111., St. Louis, Mo., and Chicago, III., to New Orleans, La., Mobile, Ala., Pensacola, Fla., Gulfport, Miss., and Tampa, Fla., and points contiguous thereto, to which rates from originating points named are made by combination on the above-named destinations which are lower than the rates concurrently applicable on like traffic to intermediate stations: Provided — First. That on the routes from Cairo to New Orleans (lUinois Central Railroad to New Orleans; 556 miles), Mobile (Mobile & Ohio Railroad to Mobile; 502 miles), and Pensacola (Mobile & Ohio Railroad to Mobile; Louisville & Nashville Railroad to Pensacola; 606 miles), the rates to stations between Jackson and New Orleans, between Meridian and Mobile, and be- tween Mobile and Pensacola affected by combination on one of the above- named points do not exceed such combination and the rates to stations not so affected are not increased. Second. That on the routes from Louisville to New Orleans (Louisville & Nashville Railroad to New Orleans; 809 miles). Mobile (Louisville & Nash- ville Railroad to Mobile; 670 miles), Pensacola (Louisville & Nashville Rail- road to Pensacola; 654 miles), and Tampa (Louisville & Nashville Railroad to River Junction, Fla.; Seaboard Air Line Railway from River Junction to Tampa, Fla.; 1,198 miles), the rates to stations between Montgomery and Pensacola, between Montgomerv and Mobile, between Mobile and New Orleans, and between Jacksonville and Tampa affected by combination on one of the above-named points of destination do not exceed such combina- tion, and the rates to stations not so affected are not increased. Third. That on the route from St. Louis to New Orleans (Illinois Central Railroad to New Orleans; 707 miles) and Pensacola (Louisville & Nashville 37P 380 APPENDIX Railroad to PcnBacola; 761 miles), the rates to stations between Jackson and New Orleans and between Mobile and Pensacola affected by combination on one of the above-named points of destination do not exceed such combina- tion and the rates to stations not so affected are not increased. Fourth. That on or before April 1, 1915, on the route from St. Louis to Mobile (Mobile & Ohio Railroad; 657 miles), the rates to stations between Meridian and Mobile are so corrected that they do not exceed the rates for one-line hauls of like distances shown in Table A. Fifth. That on the routes from Cincinnati to Mobile (Louisville & Nashville Railroad to Mobile; 784 miles), New Orleans (Louisville & Nash- ville Railroad to New Orleans; 923 miles), Pensacola (Louisville & Nash- ville Railroad to Pen.sacola; 768 miles) and Tampa (Cincinnati, New Orleans & Texas Pacific Railway from Cincinnati to Chattanooga; Southern Railway to Jacksonville; Seaboard Air Line Railway to Tampa; 1,065 miles), the rates to stations between Montgomery and Pensacola, between Montgomery and Mobile, between Mobile and New Orleans, and between Jacksonville and Tampa affected by combination on one of the above-named points do not exceed such combination, and the rates to stations not so affected are not increased. Sixth. That on the routes from Chicago to New Orleans (Illinois Cen- tral Railroad to New Orleans; 920 miles), Mobile (Illinois Central Rail- road to Cairo; Mobile & Ohio Railroad to Mobile; 866 miles), and Pensacola (Chicago & Eastern Illinois Railroad from Chicago to Evansville; Louisville & Nashville Railroad to Pensacola; 912 miles), the rates to stations between Jackson and New Orleans, between Meridian and Mobile, and between Montgomery and Pensacola affected by combination on -one of the above- named points of destination do not exceed such combination and the rates to stations not so affected do not exceed the rates for like distances shown in Table A. To Memphis, Tenn., Greenmlle, Vickshurg, and Natchez, Miss. The carriers are authorized to continue class and commodity rates from Cairo, 111., Louisville, Ky., Cincinnati, Ohio, St. Louis, Mo., and Chicago, 111., to Memphis, Tenn., Greenville, Vicksburg, and Natchez, Miss., and points contiguous thereto to which rates from the above-named points of origin are made by combination on the destinations named which are lower than the rates concurrently applicable on hke traffic to intermediate stations: Provided — First. That on the routes from Cairo (Illinois Central Railroad; 170 miles), Cincinnati (Louisville & Nashville Railroad; 494 miles), Louisville (Illi- nois Central Railroad; 391 miles), St. Louis (Illinois Central Railroad; 322 miles), and Chicago (Illinois Central Railroad; 544 miles) to Memphis, the rates to points affected by combination on Memphis do not exceed such com- bination and the rates to intermediate points not so affected do not exceed the rates for like distances shown in Table A. Second. That on the routes from Cincinnati to Vicksburg, Greenville, and Natchez, the rates to stations affected by combination on one of the above-named points of destination do not exceed such combination and the rates to intermediate points not so affected do not exceed the rates for hke dis- tances shown in Table A. Third. That on the routes from Cairo, Louisville, St. Louis, and Chicago to Greenville, Vicksburg. and Natchez, the rates to stations affected by com- bination on the above-named points of destination do not exceed such combina- tion, and on or before April 1, 1915, the rates to intermediate stations not so affected are so corrected as not to exceed the rates over one-Une hauls for lik«» distances shown in Table A. FREIGHT RATES SOUTHERN TERRITORY ONE OF A SERIES OF TREATISES IN AN INTERSTATE COMMERCE AND RAILWAY TRAFFIC COURSE ADDISON R. SMITH Third Vice-President Louisville & Nashville Railroad PART 4 MISSISSIPPI VALLEY TERRITORY KENTUCKY-TENNESSEE TERRITORY LONG-AND-SHORT-HAUL CLAUSE Ia^ALLE EljNSION [|«VEI^ITr ( Non-Resident Instruction) CHICAGO 2«S ^^. 5^^- m^^ ^ -'3^ <3^ ^^^•' .,••1 !,•■■• ^:^^-$k^l^^ -m ^^: •^^ ^ ^^lt.^1^ i^4t.m^*^^ .1^. >5^?^v^V:^ y?!^- ■^^ m % 1^^ 'v;4t> •^^. ^ ^^ &|r ^f^ ■:^ 1