November 10, 1918 



HARDWOOD RECORD 



19 



price prevailing in the northern section. 



The statement says that frequent tenders of transit cars to the 

 government in this section soon indicated that wrong practices were 

 in effect, and a number of commandeer orders were issued for the 

 purpose of seizing these cars and a considerable number were 

 diverted for various governmental projects in New Jersey, Penn- 

 sylvania and New York. 



According to the circular, the practice was to wire orders to 

 southern mills to consign lumber direct to a real or fictitious army 

 oflBccr. As soon as these cars were reported north of Norfolk, the 

 consignee would tender them to the purchasing officer, who usually 

 accepted them as bona fide shipments, thereby making it possible 

 for the consignee to make a considerable profit. By reason of inves- 

 tigation by the Department of Justice indictments were recently 

 secured for a number of such operators. The claims of some of 

 them before the War Department Board of Appraisers have recently 

 resulted in compensation award upon proof of ownership at the 

 government mill base rate. 



Despite decisions of the Interstate Commerce Commission and 

 Supreme Court, the railroad administration, it is reported, vrill 

 require tap lines and industrial railroads after investigation to 

 justify the allowances they receive. This is proposed on the ground 

 that competitive conditions under which allowances were approved 

 no longer exist under government operation and control. 



The administration is reported working on a plan for abolishing 

 lighterage and other free service furnished by the railroads. This 

 plan appears similar to that proposed by Louis D. Brandeis, now 

 of the Supreme Court, as counsel for the commission in the big 

 general rate advance case several years ago. 



Following is a synopsis of short line contract agreed upon between 

 the short line and the Railroad Administration: 



Company to continue operation, retain receipts and pay its expenses, 

 including taxes. 



.\rbitrarios and percentages of joint rates as of January 1, 1918, not to 

 be reduced, and when increased shall receive same ratio as before increase 

 was made. 



Company shall receive fair allotment of cars and motive power. Also 

 tree per diem of two days on lines 100 miles in length or less. 



Routing of competitive traffic protected. 



Differences submitted to Interstate Commerce Commission tor final 

 decision. 



Right to use government purchasing agencies and to have repairs to 

 equipment done in government controlled shops on former terms. 



No discrimination as to publisiiing tariffs and routing. 



Should Director General require line for military purposes new contract 

 will be made. 



Exchange transportation shall be made applicable without discrimina- 

 tion. 



The supply of hardwoods for war purposes has been improving 

 of late. The output of black walnut has been trebled and the air- 

 craft bureau is getting what it needs of this wood. The campaign 

 to obtain walnut has borne fruit to a gratifying extent. 



Requirements of birch for gunstocks was held up for a while in 

 order to meet the needs of the aircraft program, but the birch 

 situation has improved greatly. Plans have been changed and it 

 will not be necessary for the government to buy birch for the 

 veneer and panel manufacturers. The production of birch is being 

 encouraged and prices that the birch log producers have been 

 charging are to stand. There is understood to be no trouble about 

 corestock in poplar and basswood. Mahogany deliveries for air- 

 craft production are stated to be fair. 



The War Department has caused inquiry to be made to ascertain 

 wliat ])roducts made by the blind can be used by the government. 

 Some of these products have been purchased and it is the purpose 

 to increase their use by the government. It is expected that this 

 action will stimulate production in factories which employ the 

 blind, and thereby encourage the employment of blind persons. 



D. V. Dunham of the Southern Pine Association is in Washington 

 interested in ascertaining what shipping tonnage will be available 

 in the event of peace, for the exportation of lumber. He doubts 

 whether any very considerable tonnage will be made available for 

 this purpose, in view of *he assumption that British vessels now 

 used for carrying American troops and supplies will be diverted 



to other work and the demand for American tonnage will be 

 greater than ever. 



The Emergency Fleet Corporation has issued a statement de- 

 scribing an underwater saw that cuts piles for twenty-five cents, 

 saving $7 on each stick cut off, it is claimed. 



Emergency trench rations for the American army abroad are to 

 be crated in wooden boxes, it is announced. 



It is further announced that all subsistence supplies for domestic 

 and overseas army consumption after January 1 next, unless for 

 current consumption in army camps in this country, must be packed 

 in wooden boxes of export construction type. Wirebound boxes 

 will be limited to carry 70 pounds. This order has been issued 

 because of the fact that frequently supplies purchased for domestic 

 army use have to be shipped abroad. Some authorities estimate 

 that 50 to 60 per cent of the canned goods boxes made for next 

 year's pack in this country will have to be of export type, owing 

 to the heavy food shipments abroad that are anticipated. 



The War Industries Board has been flooded with telegrams from 

 interested persons who are under the impression that the building 

 of silos has been prohibited. No such prohibition has been ordered. 



The government price list for railroad and car material has been 

 revised under recent date. It was changed by transferring dimen- 

 sion stuff from under the timber heading and placing it in a 

 separate classification, which results in an increase in price for 

 long dimension stock to a scale ranging from $21 to $26.50 per 

 1,000. 



The report by Judge Hughes on airplane production is meeting 

 with both commendation and criticism. He finds fault with the 

 manner in which mahogany purchases and inspection were handled. 

 His chief criticism is directed against certain persons in the gov- 

 ernment employ, handling mahogany, and who at the same time 

 were receiving pay from mahogany dealers, or owned stock in 

 companies dealing in this wood. For instance, one inspector work- 

 ing for the government in mahogany inspection, was paid a salary 

 by the company that sold the mahogany to the government. 



Facts are given in the report about the quantities of mahogany 

 contracted for by the government, including African mahogany. 

 There is some criticism of the latter as inferior to Central Ameri- 

 can mahogany. Twenty-eight million feet of both kirfds were 

 ordered at prices ranging from $285 to $350 per 1,000. 



Modification of Embargo 



The National Hardwood Lumber Association, war service bureau, 

 recently retained an expert traffic attorney to represent the in- 

 terests of the association in Washington. He went to his post 

 about October 25 and began working toward obtaining some 

 amelioration of the government's late embargo ruling on lumber 

 shipments. Results came speedily, for on November 2 the Railroad 

 Administration, through the ear service section, sent telegrams to 

 zone chairmen notifying them of modifications in the embargo on 

 forest products. Following are the principal modifications: 



The states of Wisconsin and Hlinois were eliminated from the 

 embargoed territory. 



Logs were added to the exempted commodities. 



Elimination was ordered of the provision in the original em- 

 bargo to the effect that permits would not be issued except from 

 point of origin to final destination. 



These modifications took effect November 6. 



Present maximum prices for New England spruce have been 

 extended until December 1, 1918. These prices are: Rough lumber, 

 specified lengths twenty feet and under, 3000 pounds weight to 

 1000 feet of lumber, $48 to $60; random lengths, $36.50 to $59. It 

 is understood that Pennsylvania hemlock prices are also being 

 extended for thirty days. 



The manufacture of felt for pianos is prohibited by the War 

 Industries Board to cover the present emergency conditions. The 

 government requirements are so great that felt far in excess of the 

 mill capacity of the country is required. Accordingly there will 

 not be room for the manufacture of felt for pianos. 



