50 



HARDWOOD RECORD 



May 10, 192] 



liy J . H . I'ownslnnd. 



Southern Hardwood 



St'cii-taiy-ManaSf) 



Traffic Association 



My siib.jii't, " Ti;iiiH|ii)it;iti(iM I'rohleiiis ol 

 Today," is very l)n>;iil. I will not under- 

 take to n" i'lto tlie iiiuM iliuliiious details in 

 addressing you hut will endeavor to point 

 out a few 1(1' tlic' most serious problems 

 wliieli iMint'ront (lie members of this (.'on 

 ffress. I will also undertake to sujtj^est a 

 remedy. I desire to say, however, tli.it tlie 

 traffic problems wliiih eonfront tlir li.ird 

 wood industry tod.ny are more serious anil 

 far-reaehiny and more intrieate than at any 

 time ill the history of the Aiiieriean rail- 

 roads. We must all admit that we .'ire en- 

 tirely dejiendent uimii the railroads, and it 

 is to our advantage to see that they prosjicr, 

 but in order that the members of this Con- 

 j,'ress may prosper, the carriers must be jire 

 pared to give .-idoquate service under the 

 rates and rules that will permit of tlir 

 widest distribution of your ]irodiicts. 



Car Shortage 



The lumber industry sulTen-d iiiitnM 

 losses ilnriiit; the p;ist year, due tn lack of 

 sufficient car siipjily .•iiul traiis|iortation 



facilities. This situation was afiK'avated by priority orders issued 

 oy tlie Interstate Commerce Commission, givinj; preferential car 

 supjily to certain commodities. Under the Transportation Act of 

 1920, the Interstate Commerce (\>mmission was given authority 

 to make speci.-il rules or orders with resjiect to car service affectini; 

 any specific commodity. The result was a serious discrimination 

 against^the hardwood industry in the distribution of equipment. 

 The welfare and prosperity of this industry require that you should 

 support a bill to secure the abolition of such legislation as gives 

 the Interstate Commerce Commission .'lutliority to issue jiriority 

 orders. 



Overcharge Claims 



Villi «lio had m;iiiy overcharge claims which anise iliiriiii; the 

 period of federal control, which thankfully terminated on jMarcli 

 1, 1!>L'(I, will recall that the Kailroad Administration ruled that 

 such claims should be tiled with the Interstate Commerce Commis- 

 sion within line ye.-ir after the termin.-ition of Federal control. 

 This rule was issued only two weeks in advance of the closing ot 

 the one-year period. If has been my observation th.-it humlreds 

 of shippers did not h;ive an ojiiuirt unity to protect their interests 

 by filing such claims with the Interstate Commerce (Vmiiiiission. 

 The Kailroad Administration has taken the position that such 

 claims are barreil by the statute of limitation. The question is a 

 very serious mie. If the Uailroad .Vdmiiiistratiou accidentally 

 collected more money for transporting your freight than it shoubl 

 liave collected it would certainly seem that you should have ample 

 protection in filing your claims. If the Kailroad Administration 

 <loes not change its attitude, the hardwood industry should insist 

 that the act be so aiiiiinli'il to extend the time for filing claims 

 •which accriuil during the period of Federal control to March 

 a, 1922. 



Dunnage 



(ienerally si>e.ikiiig, there is an allowance of 500 pounds as dun- 

 nage on lumber loaded in open top equipment. The carriers have 

 recently nndertaken to amend this dunnage allowance so as tc 



Rate-Making Common 

 Sense 



"/ repeat, therefore, that basic com- 

 modities should have preferential rate 

 treatment, and I would not be surprised 

 to see the A u^ust 26 advance entirely 

 suspended so far as heavy movement 

 tnw i;rade commodities are involved. 

 You know that every now and then some 

 theorist comes forward with a new 

 method of makins rates, but after over 

 fifteen years of experience in making 

 rates, 1 know of no better principle for 

 rate makini; than the simple rule of 

 what the traffic will bear. 



"However, in order tu bring about the 

 necessary adjustment, it is highly desir- 

 able and essential thai we have the 

 entire industry backing our efforts, and 

 I trust that you will lend your moral 

 support." — J. H. Townshend. 



* Address dclirercd hcfot-t- the .l/i/iiitiic/iinH hnijiiiiiii CoHi7rcs.i. Ciiicin- 

 iinti, 0., Aprit liS. 



provide that the actu.il weight of the dun- 

 ii.ige may govern with iiia.ximuni allowance 

 of .*iOO pounds. A few years ago several 

 lumbermen, accompanied Viy myself, m.ade a 

 careful test .is to the actual dunnage used 

 ill eqiiippiiig flat cars. These tests showed 

 conclusively tliat the dunnage allowance 

 should be in excess of 1,0(10 poiiHiIs, and, in 

 view (if the fact that carriers, generally 

 speaking, furnish open equipment for their 

 own convenience, the shipper should be al- 

 lowed an adequate allowance. A united 

 industry slioiiM insist th;it the carriers make 

 the proper .■illowance for dunnage. 



Combination Kates 



.\s the iiiitgrowtli of the ]ierccutage .ad- 

 \.ince with a maximum, permitted by the 

 Kailroad Administration on .June 25, 1918, 

 .iiiil the subsequent percentage advance 

 gr.-uited by the Interstate Commerce Com- 

 mission on August 26 of last year, a plan 

 was devised for the construction of rates 

 iMMile oil combination, which in effect sub- 

 stantially protected the percentage in- 

 creases. The tariff c:irrying these rules is known as Kelly's 228, 

 which was issued to expire on June 1 of this year. The shippers 

 were instructed to present to the carriers all rates which they 

 desire piiblislied as through rates, supported by information !is to 

 inoveiiient, etc. The Southern Hardwood Traffic Association have 

 called attention to thousands of individual rates that the members 

 w;inteil published, but so far the carriers have not seen fit to pub- 

 lish any of these rates except in a few i.solated cases. If Kelly's 

 tariff is cancelled on .lime ] it will mean a radical increase in all 

 rates maiU" on combination basis. I can say this, however, that 

 it is not our intention to permit Kelly's tariff to be cancelled with- 

 out pulilisliing the necessary through rates and protecting the 

 industry. The carriers have already recommended that the expira- 

 tion ibite „f Kelly's 228 be extended until Jan. 1. 1922. 



Warfield Plan 



Mr. S. Davies Warfield, president uf the National Association of 

 Owners of Bailroad SccuritieSj is now advocating a plan which will 

 substantiiilly rejdace the Transportation Act of 1920. This estab- 

 lishes a National Railway Service, and a careful study will show 

 that it closely approximates the idea of the Bailroad Administra- 

 tion with regional boards and directors. Senator Cummins has 

 introduced a resolution in the Senate asking for a general investi- 

 gation of the railroad jiroblems. Mr. Warfield "s plan will be 

 thoroughly considered by the Senate committee and careful study 

 should be given to this plan. 1 do not know of. any shipper who 

 desires to see any plan adopted which in ;iny wiie follows that of 

 the United States Kailroad Administration. The Railro.ad Admin- 

 istration was in operation a little over two years. V\t to the 

 ]>resent time the government has lost by operation of railroads one 

 billion six hundred million dollars. I noticed in the paper a few 

 days ago where Director Davis of the Kailroad Administration has 

 asked the appropriation committee of Congress for four hundred 

 million dollars, which would make a total loss by the Railroad 

 Adniiiiisiration in excess of two billion dollars. It is absolutely 

 necessary that the hardwood industrv should studv the various 



