regards rates to and from places beyond the territory, as you are doubtless aware, it is the policy of all the railways in the Southern Railway and Steamship Association to make less rates to common points in the territory of the association than to intermediate points which are not common and to which no competition exists. For instance, the highest rates from New York to stations on this line between Atlanta and Birmingham are made to Waco and Bremen, Ga. They are:

We have prac

From other eastern cities-Boston, Philadelphia, Baltimore, Richmond, Charleston, Savannah-the rates are made with relation to the rates from New York. tically no traffic from our local stations to the cities above mentioned of any goods coming within above classified rates, but should shipments be offered the above-named rates would be used.

From the west rates are likewise made less to common points-Atlanta, Macon, Augusta, etc.-than to intermediate local stations.

Rates are published from Cincinnati to Waco and Bremen, Ga., as follows:

The same method is preserved in making rates from Louisville, St. Louis, Evansville, etc.

From the line of this railway our principal article of transportation to stations beyond is coal. In making rates from the mines situated upon this railway we have, by agreement with our connections, made less rates to certain competitive points than to nearer non-competitive places. From Walker County coal mines to Meridian the rate is $1.40 per ton. To the highest intermediate station on M. and O. Railroad Marion rates are as as follows:

Rate to Holly Springs, Miss., via Starkville and Illinois Central Railroad.
Rate to highest intermediate point on Illinois Central Railroad

2.60

3.65

To highest intermediate point:

May 1 to August 1..

August 1 to September 30.

October 1 to May 1

To highest intermediate point on Memphis and Charleston Railroad:

On cotton:

Rates, Birmingham, Ala., to

Boston and Providence..

New York and Philadelphia

Baltimore

Norfolk and West Point

Savannah, Charleston, and Brunswick

Highest intermediate station to

Boston and Providence

New York and Philadelphia

Baltimore..

Norfolk and West Point

Charleston and Savannah.

Atlanta to New Orleans

Highest intermediate station on Georgia Pacific..

Staves:

Birmingham to Memphis

Highest intermediate station on Georgia Pacific to Memphis
Cairo, Ill

Highest intermediate station on Georgia Pacific___

These are all the instances in which, in issuing rates to or from this line of railway, we have made higher rates to or from an intermediate station than to a more distant one, and in every case the difference has been forced by strong competition.

We have been largely guided in our action by the communication of the honorable Interstate Commerce Commissioners, published in July last, and trust that our course will meet with their approval.

Respectfully,

T. Y. SAGE, Esq.,

GEO. S. BARNUM,

General Freight Agent.

General Manager, City.

THE GEORGIA MIDLAND AND GULF RAILROAD.

DEAR SIR: I beg to hand you herewith replies to questions set forth in your circular letter of October 20. Also in memorandum inclosed with your letter November 23. Columbus, Ga., is about the only real competitive point on our little road, and to this point the rates are made by the Central Railroad, and controlled somewhat by the boats on the Chattahoochee River. Hence a lower rate in effect to Columbus than to our local stations, for instance Woodburn, as per rates shown on attached memorandum. The same rule applies in making rates to all of our local stations from common points. The rates as shown on memorandum are from New York to Columbus, Ga., and from same common points to Woodbury, a local station.

Respectfully, yours,

C. C. MCCAIN,

C. W. CHEARS,
General Freight Agent.

Auditor Interstate Commerce Commission, Washington, D. C.

GRAND RAPIDS AND INDIANA RAILROAD COMPANY.

DEAR SIR: Circular from the Interstate Commerce Commission, dated Washington, October 20. Returning same and replying to your notation, would say that the following are instances which might possibly be considered as a violation of the fourth clause of the law: certain points on the line of our road south of Fort Wayne and north of Richmond, Ind., take 88 per cent. of Chicago rates to eastern cities. From some of these points we are obliged to go out of the business or haul the traffic through Fort Wayne, which is a 90 per cent. point. The same is true in regard to the live stock shipments from points on our line between Sturgis and Fort Wayne. In order to compete for this traffic we are obliged to haul 95 and 92 per cent. points through 100 per cent. points and send the business via Wasepi and the Michigan Central road. In no case, however, does our proportion of the through rate allow us more for the shorter than for the longer haul.

We are also taking Pacific coast business from points on our line at lower rates than are made to intermediate points this side of Pacific coast points.

From recent rulings of the Commission in regard to all of these matters, I understand that we are not violating the law by our action.

Yours truly,

W. O. HUGART, Esq.,

C. E. GILL.

President and General Manager, City.

GRAND TRUNK RAILWAY OF CANADA.

MY DEAR SIR: I beg to state in regard to your letter of the 20th instant, that before the interstate commerce law came into effect, lengthened conferences took place between the company's counsel and its administration with the yiew of determining the interpretation of the law, and of framing the company's tariffs in strict compliance with its provisions, and the labors of the company's staff were directed in accordance with the conclusions reached.

There is, to the best of my knowledge and belief, no particular in which the company's tariffs have been framed in opposition to the short-haul principle of the law, or to any of its other provisions.

Very truly yours,

C. C. MCCAIN, Esq.,

L. J. SEARGEANT,
Traffic Manager.

Auditor, Interstate Commerce Commission, Washington, D. C.

HARTFORD AND CONNECTICUT WESTERN RAILROAD.

DEAR SIR: Replying to your circular letter dated October 20, 1887, would say that the only exception we make to the short-haul principle of the interstate-commerce bill is on coal from Rhinebeck consigned to Hartford, Conn.

On this the rate to Hartford is less than to many points nearer Rhinebeck.

We make this exception for the reason that at Hartford we come in direct competition with the water route, and it is necessary for us to make the concession or give up the business.

In doing this, we believe we are acting in accordance with the intention of the law. Yours, truly,

C. C. MCCAIN, Esq.,

Auditor Interstate Commerce Commission, Washington.

E. MCNEIL, General Superintendent.

HOUSTON AND TEXAS CENTRAL RAILWAY COMPANY.

DEAR SIR: Yours of the 20th ultimo, addressed to the receivers of this road, has been referred to me for reply.

I inclose you herewith tariff of rates on commodities and class articles to Houston and Galveston, Tex., from Saint Louis and points east of Saint Louis; also tariff from Saint Louis on the same articles to intermediate points in the interior, that are a shorter distance than to Houston and Galveston-the same differentials from points east of Saint Louis that apply to Houston and Galveston applying to intermediate points, and beg to state, for your information, that the rates made to Houston and Galveston are made on a basis of the rates by water to New Orleans and the local tariff from New Orleans to Houston and Galveston, also by the locals to New Orleans by rail and the locals from New Orleans, added.

There is quite a large traffic to Houston and Galveston from the points named, which we would be entirely deprived of if we did not meet the rates made by the water lines via New Orleans.

The necessity of making these rates to interior points, however, does not exist, from the fact that water competition does not extend beyond Houston or Galveston, as the rail lines leading in and through Texas are in a position to protect themselves against it.

9293- -11

The question for the roads to solve was, whether to reduce nine-tenths of their revenue to interior points, or go out of the business to Houston and Galveston, virtually destroying all competition to these points, or else meet the competition by water and make the rates that were made by that route.

This line, and all other lines leading to Houston and Galveston, have seen fit, under the circumstances, to meet competition, believing that they would be fully justified in so doing from the fact that if they withdrew from the business it would not prevent shippers from getting the benefit of lower rates to Houston and Galveston than are made to the interior points, as they would be made anyhow by the water lines; and the question was simply whether we should put in the rates in order to help our revenue by hauling a portion of the freight.

Our position seems to us perfectly legal and fair, and we trust will be so recognized by the Commission, should any question arise.

Yours, respectfully,

C. C. MCCAIN, Esq.,

DAN'L RIPLEY,
General Freight Agent.

Auditor Interstate Commerce Commission, Washington D. C.

HOUSTON AND TEXAS CENTRAL RAILWAY COMPANY.

DEAR SIR: Replying to yours of the 23d instant, caring attention to circular of October 20. There is no point on this railway from which a less rate is made for a long haul than a short one in same direction on interstate business (passenger).

Yours, truly,

C. C. MOCAIN, Esq.,

Auditor Interstate Commerce Commission, Washington, D. C.

THE HOUSTON EAST AND WEST TEXAS RAILWAY COMPANY.

I

DEAR SIR: Replying to your circulars to me of October 20. The following points take a less rate than other local stations over same route and in same direction, but only on certain commodities, namely, Shreveport, Keechi, Logansport, and Houston. attach commodity tariff showing rates to Houston. Below are list of commodities and rates as they apply in comparison :

These rates are for car-load lots, and are made necessary on account of water competition from Saint Louis to New Orleans, or Shreveport. The figures named apply from Saint Louis.

We make less rate from Shreveport on cotton to various points, rendered necessary by water competition. Attached please find tariffs for comparison.

Yours, truly,

M. G. HOWE,

Receiver S. & E. & W. T., and General Manager S. & H. R. R.

C. C. MCCAIN, Esq.,

Auditor Interstate Commerce Commission, Washington, D. O.

INLAND AND SEABOARD COASTING COMPANY.

DEAR SIR: Yours of the 23d instant at hand.

Our company is not owner, leaser or in any way dependent upon any railway company for its existence.

We have seen nothing in the interstate-commerce act that would in any way relate or affect our company, it being a steamboat company individually.

We have been told by the Pennsylvania Railroad Company that the act, according to the decision of their solicitor, prohibits them from recognizing us in any way, even to the refusal of extending a pass to our executive officers or employés.

On the strength of this evidence I do not see that we are called upon to make any reply to the Interstate Commerce Commission, but should your Commission decide that the act covers our company and is meant for us the same as the railroad companies, we will cheerfully give you in detail all the information possible asked for in your circular. Very respectfully, ALFRED WOOD,

C. C. MCCAIN, Esq.,

Secretary Inland and Seaboard Coasting Company.

Auditor, etc.

JACKSONVILLE SOUTHEASTERN LINE.

[Comprising Jacksonville Southeastern Railway, Chicago, Peoria and St. Louis Railway, Litchfield, Carrollton and Western Railroad.]

DEAR SIR: In response to your inquiry contained in circular of October 20, I inclose through-freight tariff that will show all points on our line where we do not live up to the strict letter of the "short-haul clause."

Peoria, Pekin, Stoehrs, Gravel Bluff, Hainesville and Manito are all stations where the rates are governed by the rates of our competitors, and where the rates are 110 per cent. of Chicago rates to eastern points. At no point of connection of our line with our connecting roads are the rates lower than 116 per cent. of Chicago rates, and unless we are permitted to meet the rates made by our competitors we would be debarred from taking business at those points.

Yours, truly,

Mr. C. C. MCCAIN,

Auditor Interstate Commerce Commission, Washington, D. C.

W. S. COOK,

President.

KNOX AND LINCOLN RAILROAD COMPANY.

GENTLEMEN: In answer to your circular letter of the 20th instant, I send you by this mail copies of our tariffs. In addition to these rates we make a special rate of 12) cents per hundred pounds on some articles in the grocery line between Rockland and Boston only. This rate we were obliged to make to recover our Rockland freight business, which had gone from us almost entirely since April 5 on account of the very low rates made by our water competitors, there being a daily line of steamers between Rockland and Boston.

There are no rates in our passenger tariff that conflict with section 4.
Respectfully,

INTERSTATE COMMERCE COMMISSION,

W. L. WHITE,
Superintendent.

Washington, D. C.

KANSAS CITY, FORT SCOTT AND GULF RAILROAD COMPANY. KANSAS CITY, SPRINGFIELD AND MEMPHIS RAILROAD. KANSAS CITY, CLINTON AND SPRINGFIELD RAILWAY. KANSAS CITY, MEMPHIS AND BIRMINGHAM RAILROAD.

DEAR SIR: In reply to yours of October 20, I will respectfully say that so far as the passenger business is concerned no greater rates are made than the rates to or from distant points in the same direction from the same line.