28 



HARDWOOD RECORD 



advance of freight rates in the official classification territory. R. C. 

 Lippincott of Philadelphia suggested a resolution to make a speedy 

 decision in the matter, which is of such great importance to the 

 railroad and industrial interests of the country, and said that he 

 desired it to be referred to the committee on resolutions, and that the 

 members give it free and full discussion. Mr. Lippincott spoke of 

 both sides of the controversy, stating that the lumber business had in 

 its development been very much benefitted by the extension of rail- 

 roads into timbered territory. He said that in recent discussions 

 between the railroads and labor authorities, the government had 

 almost always assisted labor in its controversies and that it was time 

 the railroads now received some consideration from the federal gov- 

 ernment. According to the speaker, the railroads are unable to take 

 care of the business that is developing because of lack of means 

 with which to provide necessary rolling stock and motive power, and 

 that to deny them this advance in freight rates would result in in.iury 

 to the industries of the country. He said he was very much in favor 

 of granting this additional five per cent increase. J. R. Willianis of 

 Philadelphia seconded Mr. Lippincott 's suggestion. 



Hugh McLean of Buffalo suggested the inadvisability of the asso- 

 ciation taking definite action in favor of rhe increase, stating that in 

 the matter of rates charged for lumber injustice has been done to 

 the lumbermen, and high freight rates have in fact resulted in com- 

 pelling lumber manufacturers to leave a good part of the tree in 

 the woods, and lower rates on low-grade products would result in 

 material benefit to the cause of conservation. He said that the rail- 

 roads are more than getting their just share of the lumbermen's 

 profits, and cited as an instance the working of a tract of timber in 

 Arkan.sas owned by his company, which timber was valued at $80,000, 

 stating that the hauling of the lumber products produced cost the 

 concern $78,000 in addition to further amounts on lumber reshipped 

 from Memphis. In other words, the railroad secured from his com- 

 pany more than the actual value of the timber and in addition his 

 concern was obliged to leave about half of the timber lying on the 

 groimd on account of the high rates. He said that the cost of 

 freight on hardwood invoices amounted to fifty per cent of the total 

 invoice and that these circumstances would indicate that lumber is 

 bearing more than its share of the burden of freight rates and that 

 until discrepancies and unjust charges should be adjusted, lumber- 

 men should not go on record as favoring a five per cent increase. 



Mr. Lippincott suggested that the matter be considered in the 

 broad light of business, as it is probable that inequalities would al- 

 ways exist. He deplored the necessity of leaving low-grade stock in 

 the woods as a result of improper classifications and stated that with 

 proper classifications this condition would be eliminated. 



Horton Corwin, Jr., president of the North Carolina Pine Associa- 

 tion, stated that only recently that association adopted resolutions 

 favoring this increase and that he personally was strongly in favor 

 of the resolution as he felt the railroads should be enabled to enjoy 

 business prosperity and development. The resolution in his associa- 

 tion passed by more than two-thirds majority. 



F. R. Babeock of Pittsburgh stated that six mouths ago he was 

 more in favor of the increase than he was at present, and that the 

 railroads then had better chances of securing the increase than they 

 have now. He said that the railroads' attitude by way of refusing 

 to place orders for any material or to effect any improvement work 

 is doing a great deal to shift the sympathy of the people to the other 

 side. 



F. S. Underhill of Philadelphia said that the railroads should 

 have the increase if it could be accomplished without affecting the 

 business of the country. 



E. Y. Babeock of Pittsburgh said the association should not of- 

 ficially go on record as favoring the increase, that the railroads should 

 first adjust such matters as switching charges and free service, 

 giving certain shippers advantage over others. 



J. V. Stimson of Huntingburg, Ind., was the next speaker. Mr. 

 Stimson expressed himself as believing that lumber pays a higher 

 rate, with risks considered, than any other commodity and that there 

 is a distinctly unfair classification iu rates, as a car of low-grade 



lumber has to bear the same charge as a ear of high-grade lumber, 

 which condition should be altered. 



The resolution was finally referred to the resolutions committee. 

 F. S. Underhill, chairman of the terms of sale and trade ethics 

 committee, then reported, saying the committee had no recommenda- 

 tions to make to the association, that the members should be free 

 to use in their transactions such terms of sale as were best suited 

 to their particular needs, that they have been and will continue to 

 be governed by their own requirements, according to conditions 

 existing in specific cases. He said that it has not seemed possible 

 in the past and does not now seem feasible to bring about the 

 adoption of any terms that will entirely satisfy the various interests 

 of the lumber trade. Mr. Underhill said that the committee believes 

 that for the present at least each concern should use that form of 

 terms that suits its individual concern best. 



Regarding trade ethics, he said that the code of ethics adopted by 

 the American Trades Congress and indorsed by the wholesalers' 

 association continues to exert a good influence on the transactions 

 between buyers and sellers of lumber. 



Following his written report Mr. Underhill said that it had been 

 suggested in connection with the new currency law that commercial 

 paper, such as notes taken in settlement of accounts, can be used 

 for rediscount in the reserve banks and that it would be a good 

 plan for lumbermen to arrange wherever possible to secure settle- 

 ment of accounts by note, instead of holding the accounts open for 

 sixty to ninety days longer, as is done now. 



H. A. Reeves, Jr., of Philadelphia read a report of the committee 

 on railroads and transportations. Mr. Reeves said that each year 

 the work of collecting claims is increasing. He stated that the 

 Southern Railroad proposed to advance the rates in North Carolina 

 from one-half to five and one-half cents a hundred pounds. The 

 Southern milling-in-transit was another case that now stands sub- 

 mitted to the Interstate Commerce Commission and briefs and a 

 decision are being awaited. 



He touched on questions of weighing cars, citing the report of the 

 commission rendered June 18, 1913. Mr. Reeves stated that the 

 protest of the traiEc bureau of the association had its effect on the 

 question of wooden boxes and that no change had been made which 

 affects the wooden box industry. He then referred to the proposed 

 five per cent advance in freight rates in official classification terri- 

 tory, saying that the committee is keeping in close touch with this 

 suggested change. 



Mr. Reeves added that he has come to realize the scope and 

 importance of the railroad committee since taking hold of that com- 

 mittee as chairman and that he was astonished at the magnitude of 

 its operations. He urged a greater interest on the part of the 

 members in its work. 



W.' S. Phippen, traffic manager, reviewed at length the operations 

 of the traffic department during the past year. He reviewed each 

 question which has come before it, telling the reason for the action 

 that has been taken and results. Mr. Phippen said that in acldition 

 to the specific problems to which the department had given its atten- 

 tion hundreds of other matters had required considerable time and 

 investigation, and numbers of desirable rate adjustments and various 

 corrections to tariff have been effected. The department also fur- 

 nished information covering a variety of transportation subjects. 



The i-eport covering the handling of disputed railroad claims is 

 as follows: 



344 claims on hand March 1, 1913 $ 8,761.13 



iil'o claims received during the year 8,922.25 



So7 claims handled .^17,683.38 



DISPOSITIONS 



34G claims collected $ 7,036.56 



77 claims not presented, but returned to members 8,883.30 



52 claims withdrawn 2,074.72 



475 claims $17,994.48 



38;; claims returned unsubmitted March 1. 1914 $ 7.GSS.90 



Three hundred and seventy-seven claims were collected through the 

 Interstate Commerce Commission. 



