28 



HARDWOOD RECORD 



request for a short talk, Mr. Landon siid he 

 was impressed by the fact that the two as- 

 sociations are seemingly not working in as 

 close accord as the_v should for the betterment 

 of all parties concerned. As an example, he 

 stated that in the case of the allowable thick- 

 ness of dressed hemlock the Michigan associa- 

 tion placed the figure at 1% inches, while in 

 Wisconsin it is 1% inches. He endorsed the 

 %-inch scant and went on to say that it was 

 bis belief that Ko. 3 Common hemlock in 

 Wisconsin is the same as cull in Michigan. 

 In speaking of the suggestions for new terms 

 of sale advocated by Mr. Ballou, Mr. Landon 

 stated that it is his belief that the articles 

 suggested are along the right lines and will 

 undoubtedly redound to the benefit of every 

 manufacturer, and will place the responsi- 

 bility on the buyer. He believes it should 

 become a national question before the lum- 

 ber interests in all quarters of the country. 

 The stocks on liand in Wisconsin, according 

 to his figures, are about normal, with low 

 grades in hemlock and hardwoods light and 

 Belling low. However, the box-making in- 

 dustry is in a decidedly healthy condition and 

 is improving, which will undoubtedly be re- 

 sponsible for a decided cutting down of the 

 surplus. It is Mr. Landon 's opinion that 

 there will be less logs cut in Wisconsin this 

 year than last, though the necessity for log- 

 ging over the fire-burned section will con- 

 tribute much unlooked-for material. 

 Report of Bailroad Committee 



H. Ballou, chairman of the Railroad Com- 

 mittee, divided his report into three sections. 

 Under the first he considered the question of 

 advance in rates to the Pacific coast from 

 Memphis, Chicago, and Michigan and Wiscon- 

 sin points. The report on this topic is em- 

 bodied in the following letter addressed to 

 him from Secretary J. C. Knox: 



Letter on Pacific Coast Rate Advance 



I have received hiformation from Secretary 

 Kellofjs, of the Wisconsin association, to the 

 effect that the Interstate Commerce Commission 

 has vacated its order restraining the railroads 

 from advancing rates on liiinhor. carloads, from 

 Memphis, Chicago, Wisconsin and upper Michigan 

 territories to Pacilic coast terminals, and has al- 

 lowed tlicm to proceed in the advance of their 

 rates. They have therefore issued supplements 

 to their tariffs advancing the lumber rate to 85 

 cents from al>ovt' territories to tlie Pacitic coast. 

 This places the lower Michigan shippers on the 

 same relative basis, but the rate is exorbitant 

 and should not exceed 7,'> cents from all the 

 territories. It Is a fact that the east-bound rate 

 on lumber from the Pacific coast into Micliigan 

 Is less than 7.5 cents. The present rale being 

 based on GO cents to Chicago, plus local from 

 Chicago, which to Cadillac, Grand Rapids and 

 other points makes a 08- or G!)-cent rale. The 

 question is, sliould the lower Michigan manufac- 

 turers join with the other territories interested 

 in demanding the 75-cent rate? As yet we have 

 taken no action pending decision of our request 

 for lower rate. 



After reading the letter Mr. Ballou put 

 the question to the association as to whether 

 they should or should not protest against the 

 eighty-five cent rate to the coast. He con- 

 tended that, inasmuch as the Michigan asso- 

 ciation has now entered a protest against 

 being compelled to pay the eighty-five cent 

 rate while the other three shipping territories 

 mentioned enjoy a rate of seventy-five cents, 

 that case would be materially strengthened by 

 an additional protest as suggested. 



Under the second clause Mr. Ballou read 

 another letter from Secretary Knox as to 

 rates to and from Ohio points. The speaker 

 also recommended a protest against this ad- 

 vance. 



The third matter placed before the atten- 

 tion of the association in the report of this 

 committee was in the form of a letter 

 previousl}' referred to, outlining the cam- 

 paign of the Detrpit Board of Commerce 

 against the new demurrage regulations. The 

 letter is as follows: 



Letter Outlining (.'ampaion Against Xkw 

 Demurrage Eeoulations 



Some time in the early part of innO a com- 

 plaint was tiled with the Michigan railroad com- 

 mission asking it to revise the then existing 

 demurrage rules. This complaint was continued 

 from time to time and a great many manufao- 

 turers and shippers were heard on it, and, tinally. 

 the commission, in the fall of 1909, issued a new 

 set of rules covering both interstate and intra- 

 state traffic. They based these rules on their 

 construction of the railroad commission act of 

 Michigan, which they understood to give them 

 power to make such rules on all traffic. 



While they were cousidering these rules an 

 organization of railroad commissioners of all the 

 different states, through a committee headed by 

 Mr. Lane, of the Interstate Commerce Commis- 

 sion, devised a uniform set of demurrage rules. 

 They held several meetings in Washington, and 

 at these meetings Hal H. Smith, representing 

 the shippers of Michigan, presented tlie demands 

 of the Michigan industries for a continuance of 

 the average time agreements and free time 

 periods as they had been in existence in this 

 state for a good many years. The proposed uni- 

 form rules changed the free time on many com- 

 motlities from seventy-two to forty-eight hours 

 and in place of a maximum of seventy-two hours 

 substituted a maximum of forty-eight hours. The 

 railroads, at these hearings, insisted that all 

 free time should be reduced to the level of forty- 

 eight hours ; that free time for reconsignment 

 should be cut down : the average time agreement 

 wiped out, and that many other radical changes 

 should be made. 



Briefs were flied for the Michigan shippers and 

 this committee, after some time, reported a new 

 set of rules to the Interstate Commerce Commis- 

 sion in which they did make very substantial 

 changes, so far as Michigan shippers were con- 

 cerned : reducing free time to practically forty- 

 eight liours : modifying the average time agree- 

 ment in many particulars, and changing other im- 

 portant rules. The Interstate Commerce Commis- 

 sion afterward recoamionded that the report of 

 this committee be adopted by all state commis- 

 sions, but the Michigan commission refused to 

 adopt them and insisted on the rules they had 

 I)romulgated. 



The railroads, however, accepted the rules so 

 recommended by the uniform committee and filed 

 their tariffs with the Interstate Commerce Com- 

 mission to put such rules in effect. These matters 

 created unfortunate confusion and the railroads 

 finally determined to bring the question to the 

 attention of the courts and filed two bills of 

 complaint in the Wayne circuit court. The first 

 of these raised the questiou whether tlie commis- 

 sion had the riglit to make any rules governing 

 interstate traffic and the second raised the ques- 

 tion as lo the reasonableness of the rules. 



In the first case answi-i's were filed and the 

 matter was brought on to bo heard Tlie rail- 

 roads contended not only that the Michigan com- 

 mission coulfl not make rules governing Michigan 

 traffic, but could not mak(* any rules whatsoever, 

 and the question presented lo the court was that 

 the commission liad no right to make rules gov- 

 erning any sort of Iraflic. The Wayne circuit 

 court decide<l that the cimimission could make 

 rules governing any traflic and tlic supreme 

 (•ourt has now decided, if we read the optnjon 

 correctly, that llie Mieiiigan commission's author- 

 ity to make rules must be limited, under the pres- 

 ent statute, on traflic which has moved or is 

 about to be moved solely between jjoints in Michi- 

 gan. The decision is based on the technical 

 wording of the act, which the court believes, 

 restrains tlie authority of tlie commission iu this 

 regard. 



The court docs not pass on the right of the 

 commission, were it so empowered by the legis- 

 lature, to make rules applicable lo interstate as 

 well as lo slate traffic. 



This resume brings the mailer down to the 

 present date. At this time the Micliigan Kall- 

 load Commission's rules, which are satisfactory 

 to the shippers and, as we are informed, to the 

 railroads, are in effect on all stale traffic. The 

 so-called uniform rules, much more stringent as 

 to slilppers. are applicable on interstate traffic, 

 any if the law be strictly carried out every ship- 

 per must pay to the railroads such demurrage as 



would have accrued on shipments on Interstate 

 traffic since the first of last May. This will 

 amount to a considerable sum. For instance, if 

 (luring that time you have a commodity on which 

 you are entitled *to have used three days' free 

 time you will have to pay one day's demurrage, 

 since the uniform rules allow only two days. If, 

 again, during that time you have used from four 

 to five days on reconsignment of coal you 

 will have to pay four days' demurrage, 

 as the uniform rules limit this privilege to one 

 day; These are examples, but not the only ex- 

 amples, of the effect of the operation of these 

 rules. 



It is therefore necessary that some immediate 

 action be taken to protect the shippers from the 

 enforcement of the uniform rules and the collec- 

 tion of the demurrage above referred to. This 

 will necessitate action before the Interstate Com- 

 merce Commission, before the courts and before 

 the legislature, to secure the amendment of the 

 present law so that the railroad commission will 

 clearly have authority to make the necessary 

 rules. 



In the decision of our court the rules of the 

 Interstate Commerce Commission are put auto- 

 matically in effect on interstate business and the 

 railroads are .iustifled in immediately beginning 

 the collection of their demurrage charges under 

 these rules. Immediate action is therefore neces- 

 sary to protect shippers. 



Mr. Ballou recommended that the associa- 

 tion appropriate $100 to assist in the fight. 



One of the most interesting discussions of 

 the day followed President Bigelow 's sug- 

 gestion as to the advisability of establishing 

 a delivered price list from a specific basing 

 point. The discussion proved that such a 

 plan would not in any way work against the 

 members, individually or collectively; that 

 they would not be prohibited from bidding 

 for business at any point whatsoever. The 

 plan is not to change prices, but merely to 

 enable the members to ascertain in an in- 

 stant the actual delivered cost of lumber 

 from such a basing point to any other point, 

 using rates of freight as a basis for figuring. 

 This does not mean that shippers would have 

 to cut their price to meet such a figure; they 

 Avould merely be able to tell from these 

 tables whether or not they could afford to 

 bid on shipments to various points. The sug- 

 gestion of the president will undoubtedly take 

 more concrete form in the course of time, as 

 this is the principle upon which shipments 

 are based in all sections of the country. 



Chairman E. Hanson of Bay City had no 

 formal report from the Forestry Committee. 

 The question of representation at the com- 

 ing Lake States Forest Fire Conference, 

 which is to take jilace in St. Paul in the 

 early part of December, was taken up by the 

 president. A letter from J. E. Rhodes, presi- 

 dent of the Minnesota Forestry Association, 

 advised the members present that the Min- 

 nesota State Forestry Board and the Min- 

 nesota Forestry Association are the sponsors 

 for the proposed conference. Mr. Landon 

 said that the meeting should be considered 

 not as a purely theoretical proposition, but 

 in the light that there is now pending an 

 immense amount of forest fire legislation, 

 which, unless it is properly supervised and 

 supported by the lumber fraternity, will un- 

 doubtedly result in many regulations which 

 will be not only burdensome in the extreme, 

 but without any practical value whatever. It 

 is with the idea of preventing such action 

 that the conference is to be called. A motion 

 that the matter be referred to the Forestry 

 ('ommittee with power to act was duly sec- 

 onded and passed. President Bigelow in- 



