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Meeting Michigan Manufacturers 



The regular quarterly meeting of the Michigan Hardwood Manu- 

 I'aoturers' Association was held at the Hotel Pontehartrain, 

 Detroit, on Wednesday, October 22. The meeting was well at- 

 tended; in fact, the attendance was considerably more than at tha 

 last meeting. 



The entire business was concluded in one session, the features 

 being the excellent market report presented by Bruce Odell, chair- 

 man of the market conditions committee, and the decision of the 

 membership to purchase, as an association, the amount of stock 

 allotted by the Forest Products Exposition. 



The meeting was opened with the usual roll call and minutes, 

 after which Secretary Knox read an excellent report. Mr. Knox 

 said that he was prepared to present a very satisfactory stock 

 report, and that the comparisons on liardwood are especially favor- 

 able, although liemloek shows more on hand unsold than a year 

 ago. The latter condition, he said, was not to be wondered at, 

 considering the status of yellow pine and the effect it has had on 

 the northern market. According to Mr. Knox, building construc- 

 tion has been very active during the past month and the demand 

 for northern hardwoods and hemlock has continued to be good 

 at no reduced value. 



He stated, in fact, that the lumber business has more than held 

 its own, and that the present outlook seems to be very good. 



Reporting on finances, the secretary said that the general fund 

 on hand Oct. 15, 191.3, was $4,438.27, which will more than carry 

 the association through to Jan. 1. The forest fire fund had a bal- 

 ance of $2,697..52 on Oct. 17, out of which, however, the October 

 salaries and expenses of the deputy wardens will have to come. 



The secretary then commented upon recent activities of Secre- 

 tary J. E. Rhodes, of the National Lumber Manufacturers' Asso- 

 ciation, particularly regarding the Forest Products Exposition. He 

 also stated that at the meeting of the board of governors of the 

 National Lumber Manufacturers ' Association, held in Kansas 

 City in June, the subject of inter-insurance was discussed and the 

 secretary expressed his belief that there is a probability of some- 

 thing to the benefit of the lumbermen coming out of it. He said 

 that President Richardson would make some interesting comments 

 upon these lines. 



On motion relative to the appointment of delegates to the 

 National Conservation Congress, which meets at Washington, Nov. 

 18 to 20, it was decided that the president could appoint five dele- 

 gates, one of which should be Bruce Odell, of Cadillac, who would 

 have his expenses paid by the association. 



H. Ballon, reporting for the railroad committee, said that there 

 was no formal report to make, but he opened up a discussion re- 

 garding the proposed changes in freight rates in Michigan. Mr. 

 Ballou said that it was imperative that rate matters coming up at 

 Lansing should have the close attention of the lumber trade. He 

 saicl that the State Railroad Commission has required Michigan 

 railroads to file equalized rates, which have been filed to take effect 

 Nov. 1.^. These rates, Mr. Ballou says, will not be equalized for 

 lumbermen, in that all commodity rates are cancelled and resulting 

 class rates would not be in conformity with equitable adjustment. 

 Lumber under this arrangement would lie placed in the sixth class, 

 this change in itself constituting a decided increase on the general 

 level within the states. 



In addition, it is contemplated that a further increase will be- 

 ■ ome effective if the requested advances are granted, which would 

 make a double increase over the present rates on lumber shipments 

 within the state. It was brought out that there is a conflict of 

 authority between the state and Interstate Commerce commissions. 



M. E. Thomas, of Cobbs & Mitchell, Inc., and the Mitchell 

 Brothers Company, Cadillac, suggested that a committee lie ap- 

 pointed to watch the movements regarding freight rates at Lan- 

 sing. He said that the lumbermen should petition the State Rail- 

 road Commission for a hearing before any change of rates goes into 

 effect. 



Regarding the relation between the Michigan rates and the 

 interstate rates and the consequent overlapping of authority be- 

 tween the Interstate Commerce Commission and the State Railroad 

 Commission, Mr. Thomas stated that the results in Michigan would 

 depend upon the decision of the Interstate Commerce Commission, 

 and that if the latter body suspended the inauguration of the pro- • 

 posed general horizontal advance in interstate rates, the state com- 

 mission would do the same on Michigan rates, in order that the 

 two changes should start at the same time. He stated that in the 

 central classification territory the railroads are planning to make 

 a horizontal increase of five per cent. These increases were filed 

 Oct. 1.5 to take effect Nov. 15. At the same time the state rates 

 were filed to take effect at the same date. 



Mr. Thomas said that even if the Interstate Commerce Commis- 

 sion does not suspend the interstate rates, lumbermen should have 

 a hearing on lumber rates before they take effec^, because of the 

 relation of Michigan to shipping territory in other states. 



It was brought out in the discussion that railroads of Michigan 

 had given assurance that no injustice will be done to Michigan 

 shippers, but some skepticism on this score was shown among 

 members who»have bitter experiences to look back upon. 



President Richardson suggested that it might be probable that 

 the raise in rates in Michigan would be greater than in other states, 

 which in itself would constitute a gross injustice. 



C. A. Bigelow said that in view of increased cost of operation 

 and supplies, he thinks that the railroads may be entitled to the 

 five per cent increase, and that he would be willing to abide by 

 the decision of the Interstate Commerce Commission. He said, 

 however, that inasmuch as Michigan railroads have cancelled pre- 

 vious tariffs and filed new tariffs to take effect Nov. 15, establish- 

 ing increases of from five to thirty-three and one-half per cent, 

 he thought the railroad committee should take action. He moved 

 that the committee be authorized to look after the matter at Lan- 

 sing, au<l to protest against any raise in rates other than those 

 authorized by the Interstate Commerce Commission on interstate 

 business. 



Secretary Knox stated that it was his opinion that the difficulty 

 in Michigan was encountered because of the difference in bases 

 for rates. He stated that one reason for the proposed changes in 

 the intrastate rates was the order of the State Railroad Commis- 

 mission requiring the railroads to get together on a more logical 

 system of rate basing. 



H. Ballou cited as expositions of proposed advances in Michigan 

 the following: 



Rates on Detroit basis to be raised from six to eight and one-half 

 cents on the Michigan Central to certain territory, and on the 

 G. R. & I. from seven to eight and one-half cents. He stated that 

 the proposed equalization advances Cadillac rates from fifteen to 

 thirty cents. He also said that in view of the proposed advances 

 it is a decided injustice to Michigan shippers that rail and water 

 rates from Menominee, Green Bay and Oconto to Detroit are still 

 ten cents. 



Following further comment, Mr. Bigelow 's motion was carried. 



F. A. Diggins, of the legislative committee, being absent, there 

 was no report of that committee. 



D. H. Day stated that he was happy to say that there was no 

 report of the grading rules committee. 



J. S. Hickok, chief fire warden of the Forest Fire Protective 

 department, delivered an exhaustive report showing the work done 

 since the last meeting. This report was excellent in arrangement 

 and detail and offers a very logical outline for the organization of 

 forest protective work in any section of the country. For this 

 reason it will be printed in full in the next issue of Hardwood 

 Record. 



Bruce Odell then delivered his usual valuable report on market 

 conditions, reporting for the market conditions committee. The 

 report follows: 



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