26B 



HARDWOOD RECORD 



company. The capacity of the flat car used to 

 transport lumber to market was small, the speed 

 of the engine was slow, hence but a tew small 

 pieces of sapling were necessary to hold the 

 lumber in place on the car. 



Graduallv, however, the iron rail gave way to 

 the steel rail: the single tract to the double, 

 four and even sLs-traik railroad ; the small car 

 to the car of great capacity : the small slow en- 

 gine to the engine of great power and high speed. 

 And in this wonderful development of transporta- 

 tion the railroads have provided palaces on 

 wheels for the transportation of passengers; ex- 

 cellent mail and express, cattle, coal, coke, grain, 

 furniture, refrigerator and even automobile cars 

 for the transportation of various freights — but 

 they have failed to provide cars properly 

 equipped to transport lumber — which yields to 

 the railroads the second, if not the greatest reve- 

 nue of all commodities transported by them in 

 our country. They still cling to the old method 

 of requiring the lumbermen to furnish the stakes 

 or equipment to hold the lumber on the car, but 

 now require it to be done in such a manner that 

 the safety of the train will not be imperiled. 



Approximately thirty tlinusand lumbermen ship 

 annually over the railroads of our country one 

 hundred million tons of lumber, which means 

 about five million carloads. About two million 

 carloads are flat or gondola cars which must be 

 equipped at the expense of the shipper. Be- 

 tween three and four hundred million feet of 

 lumber arc annually wasted in such temporary 

 equipment at a cost of about six million dollars 

 a year. This is an enormous waste of lumber, 

 which ought to he saved for our children and 

 our children's children. 



Lumber is transported by the railroads with 

 less trouble to them than almost any other great 

 commodity. It is loaded and unloaded by the 

 consignor and consignee. It is furnished for 

 shipment at all seasons of the year. The loss 

 and damage to lumber is but nominal. It is 

 carried on the cheapest cars used by the rail- 

 roads, and yet it pays a higher tariff than any 

 of the other great commodities. 



These facts and others have all been pre- 

 sented to the Interstate Commerce Commission, 

 before whom our cause is pending. The admis- 

 sion of the railroads is on record in this cause 

 that their tariff on the stakes or equipment fur- 

 nished by the shippers to hold the lumber on 

 the car and protect the train was unreasonable 

 and unjust, and since the first of February they 

 have made an allowance of 500 pounds' free 

 weight. 



We contend that it is the duty of the carriers 

 to provide cars properly equipped to transport 

 this commodity : that it is practical for them to 

 do so at very small additional expense per car. 



Having admitted that it was unreasonable and 

 unjust to require the shipper to pay freight 

 on the equipment, it logically follows that it is 

 unreasonable and unjust to require the shipper 

 to furnish the equipment, tor the shipper is re- 

 quired to pay the same freight rate on a car 

 which he is compelled to equip as on a box car 

 equipped by the railroad company. 



A truce has been declared in our fight before 

 the commission to see if an amicable settlement 

 can be effected. A committee of fourteen has 

 been appointed, seven from each side, under 

 whose directions practical tests or experiments 

 with flat and gondola cars equipped in a perma- 

 nent manner are to be made on various rail- 

 roads in different sections of the country. I 

 believe these experiments will prove the prac- 

 ticability of permanent equipment of flat and 

 gondola cars for lumber and that the carriers 

 will soon place them In operation and thus the 

 great waste and loss of temporary equipment to 

 the shippers will be saved with but compara- 

 tively small expense to the carriers. 



At the suggestion of the defendant railroads 

 the railroad companies operating west of Chicago 

 and St. Louis were invited to participate In 

 this joint conference: they have declined to do 

 so and In my opinion a similar action should he 

 started against them forllnvlth In order that the 

 practice may be made uniform. 



Hut If It happens that the carriers shall re- 

 fuse to equip these cars, then we will proceed 

 with our fight before the commission, which we 

 will. In my judgment, win, for our cause Is Just 

 and we are In the right. 



This cause illustrates the wisdom of the en- 

 aetment of the Interstate commerce law : and 

 the experience of the pnst nearly twenty years 

 flernonst rates the nece^^ity of special laws con- 

 trolling common c.irrlers : and today It seems 

 to he the will of the peojile of our country, as 

 shown by their represenlntlves In congress as- 

 sembled.* to amend this law. simplify the pro- 

 feeriines and make more direct the results to be 

 oi)tnln<'d. 



Why Is snch legislation necessary nt this time? 

 It Is because some rate rules, regulnthms and 

 rirnetlces of the railroads are wrong and the 

 legal provisions for remedying sucli wr^mcs 

 ought to he simplified and the results obtained In 

 as brief time as Is consistent with the Imnor- 

 tnnre of (he nnestlf>ns lo be determined. It Is 

 also t>ecause the t)nbllc realize that the common 

 carriers arc the arteries through which flow the 



commerce of the nation ; and the realization that 

 these companies are public corporations, as said 

 by our supreme court, endowed with some of 

 the powers of the state : the realization that 

 there has been too much consol.dation. merger 

 and stock ownership in parallel and competing 

 lines, too much elimination of competitiou ; too 

 many dummy directors and too few active di- 

 rectors of railroads giving due consideration to 

 the requirements of the public; too much eva- 

 sion of law and duty: it is the awakening of the 

 public conscience, the realization by the people 

 tliat this is their country and their government 

 and that they have sufficient votes to enact 

 and enforce any law which they deem necessary 

 lo meet the crisis. 



Under this amendment, when a rate rule or 

 regulation after a hearing by the commission 

 shall be found to be unreasonable and unjust, 

 it shall have the power to substitute in lieu 

 thereof a rate rule or regulation which it shall 

 find to be reasonable and just — which shall be 

 effective for a reasonable time. 



A rate rule or regulation may be unreasonable 

 and unjust because it Imposes an undue burden 

 upon the patron of the common carrier ; or it 

 may be unreasonable and unjust because it is 

 too" low, failing to yield to the common carrier 

 the proper proportion of its revenue to enable it 

 to properly pay its employees; interest on its 

 bonded indebtedness : reasonable dividends to its 

 stockholders; to maintain, renew and improve 

 its property essential for the pruper and elti- 

 cient conduct of its business satisfactory to the 

 demands of its patrons. Nearly one tenth of 

 our population are directly supported from the 

 earnings of these common carriers ; the welfare 

 of otir entire people is largely dependent upon 

 the proper conduct of this business, and hence 

 it is essential that wise and beneficent laws 

 should be enacted to rightly guard the interests 

 of all. 



The most important litigation the world has 

 ever known will arise under this amended law. 

 The case we now have pending, involving an 

 actual outlay of upwards of live million dollars 

 a year, will be small in comparison with others 

 which will be brought. The amounts involved 

 are stupendous. 



It is, therefore, my Judgment that this law 

 should contain a provision which will enable 

 either the jiatron or the carrier to have the rul- 

 ing of tlie commission reviewed l)y the federal 

 supreme court ; with provisions for ample bond 

 to prefect the winning party from ultimate loss. 

 I regard this essential to the safety of the ship- 

 per. 



I hold the greatest respect for the integrity, 

 honor and ability of our existing commission, 

 but this law IS to govern for many years to 

 come and it is impossible to forecast the per- 

 sonnel of future commissions. The best way 

 to provide against errors of judgment is to 

 provide for at least one review. 



My observations and experience among men 

 engaged in the conduct of the railroad business 

 is that the great majority of them desire to per- 

 form their duty in an honorable ni.anner. The 

 wrongs of which the people complain emanate 

 from some of the directors and managers of 

 these great corporations whose chief object is 

 to exact a little more than the last dollar. They 

 fail to appreciate the public nature of the busi- 

 ness in which they are engaged. It is such fail- 

 ure wliich has brought about the demand for 

 new laws which will preserve the rights of all. 



In the conduct of such business, principle 

 must not be sacrificed to expediency. To pre- 

 serve property rights it is necessary for the 

 holders thereof to adhere to the time honored 

 principles of fair dealing among men. 



The lumber shippers are not asking the rail- 

 roads to give them sometlilng for nothing — they 

 are paying a higher rate of freight than shiiipers 

 of otlier great commodities and they are Justified 

 in their demand that the carrier shall furnisli 

 cars properly equipped to carry this commodity 

 as thev do other commodities. 



Since being retained by the lumber Interests 

 last fall at Chicago to conduct this litigation, 

 I have found the work very interesting and ab- 

 sorbing. The principles are of great importance 

 and farreachlng in effect, and the amount In- 

 volved is very large. The complaint before the 

 commission set forth two points; First, the 

 slakes furnished by the shipper are a part of 

 the car equipment and should be carried fn^e ; 

 second, it Is the duty of the carrier to furnish 

 flat and gondola cars properly equipped lo carry 

 lumber. The concession made by the defendant 

 railroad companies at our first hearing before 

 the commlHslon at Washington of .'500 iiomids 

 free freight means a saving to the lumber ship 

 pers, as slnli'il by one of the lending I'unnsel 

 for the defendant railroads, of over a mllllr>n 

 dollars a year approximately .f 100.000 a month. 

 This means a loss In freight earnings of Ibis 

 amount to the railroad ciunpanles. This alone 

 was worth fighting for. This point having bi'eii 

 disposed i>f satisfactorily, we concentrated our 

 ■ forces on thi' second question — that It Is the 

 duly 'if the curriers to furnish flat and gondola 

 cars properlv equipped to carry lumber, and 

 after listening to the evidence ot the lumber 



shippers before the commission for three days 

 upon this question, the defendant railroads ad- 

 mitted that there was merit In our contention, 

 with the result that we postponed further hear- 

 ings before the commission for the purpose of 

 trying to agree among ourselves on a satisfac- 

 tory settlement. These negotiations are now be- 

 ing conducted. The temporary staking of flat 

 and gondola cars costs the lumber shippers of 

 this country between five and six million dollars 

 a year. If we win our contention It does not 

 seem that the railroads will lose five or six 

 million dollars a year thereby, but it means that 

 a great economic saving to the lumber shippers 

 will have been accomplished by the railroads 

 providing cars properly. equipped to perform this 

 service at a very small additional initial cost to 

 them. 



In a contest of this character the burden of 

 the fight always falls upon a few. Your repre- 

 sentatives have given most freely and loyally 

 their thought and services, and you are deeply 

 indebted to them. 



On motion of .\. M. Turner the address of Mr. 

 lioss was ordered printed for distribution to 

 the members in connection with the reports of 

 the committees on railroads and transportation 

 and legislation. 



Trustees Appointed. 



The Committee on Nomination of Trustees ten- 

 dered the following selections for trustees for a 

 period of three years; J. M. Hastings of Pitts- 

 burg, Gordon C. Edwards of Ottawa, Frederick 

 W. Cole of New York, U. S. Cohn of Norfolk, 

 Uobert H. Downman of New Orleans, F. E. Par- 

 ker of Saginaw and Robert \V. lligl>ie of New 

 York. 



The report of the committee was accepted 

 and the nominees duly elected. 



Officers Elected for Ensuing Year. 



The members were then invited to give utter- 

 ance to an expression of choice for oflicers for 

 the ensuing year. J. M. Hastings, vice presi- 

 dent, made a very admirable speech eulogizing 

 the work of President Dill and most highly re- 

 commending his reelection. On motion President 

 IJill and the remaining olficers were unanimously 

 elected amid great enthusiasm, the acclaim of 

 course being chiefly in honor of Mr. Dill. Mr. 

 Dill then resumed the chair and made a short 

 speech, thanking the association for the kindly 

 expression of approval offered him. 



George F. Craig, chairman of the forestry com- 

 mittee, then made an address on behalf of con- 

 tributions to the proposed school of forestry and 

 practical lumbering at Yale, and the sum of 

 $3,200 was promptly subscribed by thirty-three 

 individuals. .Some of the subscriptions came as 

 personal contributions and others on behalf of 

 various leading firms and companies. 



A resolution of thanks was given the New 

 Wlllard Hotel management for the exceptional 

 way in which the metnbers had been enter- 

 tained, and a second vote of thanks was ten- 

 dered to President Dill for the extremely capa- 

 ble way in which he had conducted the affairs of 

 the association during tlie past year. 



On niollon of K. I!. linbcock the convention 

 ailjnurned. 



Addenda. 



The report ot tlie board of managers of the 

 Bureau of Information failed to reach the meet- 

 ing before adjournment. This report Is a very 

 important oue, and It is herewith presented, and 

 will doubtless meet the approval of the present 

 board of managers and become a part of the 

 proceedings of the convention. 

 Report of Board of Managers of tlie Bureau 

 of Information. 



The board of niaiiiigcis of the Bureau of In- 

 formation respeiltully reiiorl another year of 

 progress and di'velopmeiit in tills Important de- 

 parlmenl <if association work. 



The report of the superintendent oulllnes this 

 work in detail. Your hoard (ft iiinnagers will 

 only siipptenieiit Superinleiidi-nt Perry's report 

 briefly by <iillliig your allcnlloii to a few salient 

 facts which show the progress and development 

 In the work of the bureau. 



ME.\iBi;ii.siiir. 



The membership has Increased from 178 on 

 .March 1, Ilhiri. lo 107 on Feb. 1, lUOO, a net 

 gain of 10. While this Increase Is encouraging. 



