HARDWOOD RECORD 



21 



President Griggs of tlae National Lumber ilanuf acturers ' Association, 

 the latter organization has been instrunu'ntal in getting the question 

 before the trade as a body. It has printed in its November bulletin 

 the entire letter from Mr. Wendling showing the status of tlie ques- 

 tion and the grave menace in the petition. 



The petition is instituted by the filler box people specifically 

 against all the western roads, and if it is decided in favor of the com- 

 plainants, uniform classification on goods packed in fiber and wood 

 boxes will be general throughout the country. 



The object of the appeal to the members of the trade is a broad 

 one and is not designed specifically for the sake of benefiting the 

 western element. If such a petition is decided favorably to the fiber 

 box people, it will make practically impossible any successful apjjeal 

 on the part of members of the trade in other parts of the country. 

 However, if the railroads win a favorable decision from the Inter- 

 state Commerce Commission and are allowed to continue to charge 

 greater rates for goods in fiber packages, it will mean that the re- 

 storation of equitable rates on similar stuff will be rendered more 

 easy in other parts of the country. 



As the hearing will probably take place w-ithin sixty days it is 

 necessary that the defendants have their petition prepared expedi- 

 ciously. Therefore, the National Lumber Manufacturers ' Association 

 appeals to all lumbermen to do everything in their power to get hold 

 of information that would tend to prove the superiority of the wooden 

 package over the fiber package for the shipment of all classes of 

 goods, and hence to demonstrate the equitability of charging a greater 

 rate for goods packed in fiber containers. Such evidence would have 

 to consist of photographs of goods which have been damaged in tran- 

 sit when packed in fiber and similar containers, showing specifically 

 the injury to the containers and information as to the manner in 

 which damage was done. 



While this is the first time the box classification matter has gotten 

 before the Interstate Commerce Commission, it appears that the de- 

 cision will be final and will have a definite bearing on the entire 

 question for all time to come. Therefore, it behooves the entire 

 lumber trade in any way interested in the production of box material 

 to do everything possible to assist in defeating the fiber box people 

 in their efforts to secure uniform classification. 



Proposed Freight Rate Advance 



The next step of the railroads to secure increased revenue will 

 be an increase in freight rates on hardwoods in southern territories 

 on all lines east and west of the Mississippi river to Ohio river cross 

 ings and western territory. These roads have already checked in 

 advances and probably the first effort will be to replace the special 

 rate on box materia! of gum and Cottonwood, putting these on an 

 equal basis with other hardwood rates. The railroads claim that 

 they are not justified in differentiating between these two different 

 classes of hardwoods. An increase of this nature ^'ould mean that 

 shippers of box material would have to put up with a straight advance 

 of two cents. 



It seems that it is further proposed to equalize the figures on ship- 

 ments of hardwood with the rates on pine lumber from the South. 

 The result of this movement would be an increase on all hardwood 

 shipments of one cent. But the roads will not stop here. It seems 

 that their policy will be then to carry box material right along with 

 the regular line of hardwood, putting all shipments of hardwood 

 lumber on an equal basis with pine. There would then be added to 

 present rates on box material a straight increase of ^three cents. 



The usual plea of "insuflScient funds" is the excuse for this ad- 

 vance, and the railroads have stated that they will check in advances 

 and let the Interstate Commerce Commission decide the question. 



An analysis of the question, going beyond the mere controversy as 

 to whether or not the roads are actually in need of increased revenues, 

 brings up the query of whether there is not some deeper motive be- 

 hind the advance than the mere desire to equalize rates on pine and 

 hardwood shipments. An authority on the question recently suggested 

 that this is but one move in a step to advance rates on lumber ship- 

 ments generally. He suggested that the probable course of the rail- 

 roads would be, after securing the present proposed hardwood ad- 



vances, to eventually enter the old plea that hardwood and pine should 

 not be shipped on an equal basis, but that pine should take a greater 

 rate. This, of course, if successfully carried through, would mean 

 that both pine and hardwood shipments would cost considerably more 

 than at the present time figured in the same proportion. 



The plea of insufficient returns from shipments from the territory 

 in question seems at present to be particularly inappropriate in view 

 of the tap-line decision as recently handed down by the Interstate 

 Commerce Commission. As those familiar with the tap-line cases 

 are undoubtedly avvare, the arrangement under which these so-called 

 "railroads" operated with the through-lines allowed them a division 

 of through-rates on shipments of their own stock originating on tap- 

 lines. This division was in varying proportion, but in every instance 

 noted the tap-line companies enjoyed a very considerable percentage 

 of the total through rate. The decision of the commission prohibiting 

 a continuance of this practice, which it adjudged to be a form of 

 rebate, will mean that the railroads will now be entitled to the entire 

 freightage on such shipments rather than merely a proportion of it. 

 This will mean a very decided increase in their revenues from this 

 territory, and it seems reasonable to suppose that this increase should 

 more than offset any increase in operating expenses. 



However, the question is one that can not be decided off-hand by 

 any individual or group of individuals and, judging from the many 

 protests which have been submitted to the Interstate Commerce Com- 

 mission, the railroads will have to demonstrate the justice of their 

 claim for increased revenue pretty thoroughly if they are to be 

 granted the increased rates. 



This is merely one of the many problems which are constantly com- 

 ing up to relieve the monotony of the lumberman's existence. He 

 should find considerable interest in contributing his share to the 

 endeavor to ascertain the right of the situation. 



The Eucalyptus Game 



Harry D. Tiemann, technologist of the Forest Service, has a brief 

 article on the subject of eucalyptus in the November number of Ameri- 

 can Forestry, which endorses practically what Hakdwood Eecord has 

 alleged for years concerning the spurious character, as a commercial 

 lumber proposition, of eucalyptus. This article is particularly timely 

 right now as many promoters of the eucalyptus game are engaged in 

 selling tracts of land in southern California to credulous investors for 

 eucalyptus planting on such specious representations as to be prac- 

 tically fraudulent. 



One prominent promotion company sends out a glittering prospectus 

 from the title-page of which the following is quoted : 



"Will you work and wait seven years for a pension for life? Abso- 

 lutely no gamble. Not a speculation. A sure, safe investment that 

 will average one hundred per cent annual dividends. ' ' 



Mr. Tiemann 's article is herewith reproduced in full: 



Eucalyptus for California is a proposition worth.v of hearty endorse- 

 ment, Ijut it should stand upon its own merits and not upon some fictitious 

 attributes. Otherwise vast disappointment and losses to the hundreds 

 of small investors who are counting upon the eucalyptus as a timber pro- 

 ducing tree are in store. In your July number appears an interesting 

 article upon San Diego's Municip.al Forest. The statement is there made 

 that "eucalyptus is an acceptable substitute for almost any of our Ameri- 

 can hardwoods." In the same issue there appears a news note entitled 

 Fast Growing Eucalyptus, to which has been subjoined, apparently by the 

 editor, a comment that "it is almost imbelievable that trees growing so 

 rapidly produce a timber as hard and tough as hickory." Unquestionably 

 these statements have been made in all good faith, but evidently without 

 a first-hand knowledge of the kind of lumber which these quickly growing 

 trees less than half a century old will produce. As this lack of under- 

 standing is very general and is likely to lead to serious consequences, I 

 would like, Mr. Editor, with your assistance, to sound a note of warning, 

 since I have had considerable experience in drying the wood from these 

 trees. 



While much that has been claimed as to the marvelous growth of this 

 tree is indeed true, the rapid growing species, particularly the blue gum, 

 E-gloiulus, which is the one of most consequence, is not to be considered 

 a timber producing tree during its early life of thirty or forty years, 

 for reasons about to be givrn. It is true that the old trees of Australia 

 which are of great age and size produce lumber of good quality which can 

 be seasoned and utilized as other hardwood lumber, but not so with the 

 young trees such as are crowing in California, less than forty years old. 

 This is just where the falhuy in the arguments of the eucalyptus pro- 

 moters comes in. The tro.s actually produce in volume of green wood 



