42 



HARDWOOD RECORD 



tlie Illinois Central; Joseph Ilattondorf, general freight agent of the 

 southern lines of the Illinois Central System, and C. B. Drayton of Wash- 

 ington appeared for the defendant roads. The hearing was before J. T. 

 Hines, special examiner for the Interstate Commerce Commission. 



The principal contention of the plaintilT was that the rates from Bates- 

 vlUe are materially higher than those from Sardis, nine miles further 

 north. The present rates from the latter point to northern and eastern 

 destinations are three cents over the Mempliis rate on all hardwoods, 

 while the rates from Batesvllle are three cents higher on cottonwood and 

 gum and six cents higher than the Memphis rate on all other hardwoods. 

 It was pointed out that, while a manufacturer at >Sardis and Batesvllle 

 are on the same basis with respect to cottonwood and gum, there is a 

 differential of three cents per hundred pounds on all other hardwoods in 

 favor of the former as against the latter. This means a difference of 

 $1.50 per tliousand on oak, ash, hicliory and other hardwoods, excepting 

 cottonwood and gum, while the dilTerence in point oC distance is only 

 nine miles. This is alleged to be undue discrimination. 



The principal argument advanced by the representatives of the de- 

 fendant roads was that Sardis, which Is fifty-two miles south of Memphis, 

 lies witliln one of the so-called 50-milc zones, and that the commission 

 has itself gone on record against disturbing these zones unless there is 

 extreme reason therefor. The railroads also pointed out, through their 

 counsel and witnesses, the fact that a rate of three cents had been made 

 on gum and cottonwood from Batesvllle because the market for these 

 items was slow and needed a stimulus, while the other hardwoods did not 

 need such treatment. 



The bureau is seeking a rate of three cents over the Memphis rates on 

 all hardwoods, the same as now enjoyed by Sardis, nine miles further 

 north. No decision will be made until the testimony adduced at this hear- 

 ing has been laid before the entire commission. The defendant roads 

 offered a compromise of four cents above the Memphis rate before the 

 hearing was held, but this was refused. 



J. II. Townshend. general manager for the bureau, is in receipt of in- 

 formation to the effect that within the next two or three weeks the car- 

 riers will issue new tariffs providing for an over-lumber rate on spokes, 

 flooring, handles, tight cooperage material and other products made from 

 hardwood lumber. This is to be done in accordance with a suggestion 

 from the Interstate Commerce Commission, which was made in connec- 

 tion with the case of the Eastern Wheel Manufacturers' Associations vs. 

 the Alabama vt Vicksburg and other carriers. These products have here- 

 tofore taken the same rates as lumber, but the new tariffs will, according 

 to information received here, establish an arbitrary rate somewhat aljove 

 current rates, on hardwood lumber for everything manufactured there- 

 from. Memphis is a large manufacturer of hardwood products and the 

 bureau will take this matter up as soon as further definite information 

 has been received as to the rates to be promulgated by the roads in 

 question. _ 



George D. Burgess, president of the Southern Hardwood Traffic Bureau, 

 left Memphis Tuesday evening for Chicago. He will go thence to Washing- 

 ton, where he will confer with J. R. Walker, attorney for the bureau, in 

 connection with the efforts being made by the latter to secure a rate of 

 eleven cents from Memphis to New Orleans on all hardwood lumber. This 

 matter is to be fought out before the commission by means of an inter- 

 vening petition when the case of the Bellgrade Lumber Company et al. vs. 

 the Illinois Central and Yazoo & Mississippi Valley roads, involving rates 

 of eleven and ten cents, respectively, on hardwood lumber shipments from 

 points in Mississippi above and below the main liue of the Southern 

 Railway to New Orlenas. 



Important Arkansas Bate Questions 



On March 12 a hearing was held in the United States district court 

 before Special Master Judge J. G. Wallace on the exceptions filed by the 

 railroads to claims for overcharges filed by lumber and stave mills on 

 shipments made under the rough material rates during the pendency of 

 the Arkansas rate case. According to the custom, the stave mills en- 

 tered into a contract with the railroads whereby, in consideration of the 

 reduced rates, the mills agreed to reship a certain percentage of the 

 manufactured products over the road which brought in the rough ma- 

 terial. The rough material for the most part was hauled from Arkansas 

 points to the mills, which are also located in Arkansas, and, generally 

 speaking, the finished products were shipped to foreign states. The rail- 

 roads contended in the hearing that, inasmuch as the finished products 

 were shipped to foreign states, the whole shipment, from the point of 

 origin in the forest to the mill and from the mill to the foreign state were 

 interstate shipments, and therefore not subject to claims for refund by 

 reason of the freight charges made in excess of the rates provided by 

 Standard Freight Distance Tariff No. 3, promulgated by the Arkansas 

 Railroad Commission in 190S. The manufacturers, on the other hand, 

 contended that they bought the rough material outright and shipped it 

 into their mills, where it stayed on the average of from three to nine 

 months: that during that time it was their property absolutely, on which 

 they paid state taxes ; that at the time the rough material came in they 

 did not know where the finished products therefrom would be sold ; that 

 the fact that they did sell the majority of it in foreign markets did not 

 make the entire transaction a matter of interstate commerce. 



The principal manufacturing concerns affected by the hearing were the 

 Hub Manufacturing Company of Jonesboro, the National Cooperage & 

 Woodenware Company of Clarendon. J. F. Hastey & Son, Paragould : W. 



W. Wilson Stave Company of Little Rock ; Henry Wrape & Co., Para- 

 gould ; .Vrkadelphla Milling Company, Arkadelphla & Prltchard Lumber 

 Company, Little liock. 



.\t the conclusion ot the hearing Special Master Wallace tools the case 

 under advisement and no decision 1ms yet been announced. 



The St. Louis, Iron Mountain & Soutliern Railway Company has filed 

 suit In the Pulski Chancery Court against the W. W. Wilson Stave Com- 

 pany and its successor, the W. W. Wilson & Wrape Stave Company, 

 asking an accounting and a judgment for tlie recovery of a balance said 

 to be due as freigiit charges on shipments of rough material to the 

 company's plant in Argenta during the past three years. 



The plaintiff alleges that the stave company, in consideration of re- 

 duced freight rates on Inbound shipments of rough material, agreed to 

 ship out each year over the plaintiff's road manufactured products In an 

 amount not les^ than thirty per cent in weight of the total tonnage of 

 inbound rough material during that year. It alleges that there was a 

 written contract to that effect and that a regularly established freight 

 rate was made. It further alleges that the stave company failed to ship 

 out over the plaintiff's road the required thirty per cent on about 

 18,000,000 pounds of rough material shipped in during the past three 

 years. The plaintiff company alleges that it is therefore entitled to make 

 a full charge, based on the local freight rate, on all the foregoing tonnage 

 in lieu of the rate which was charged. The difference between the re- 

 duced rate and the legal local rate is alleged to be $0,368.9."!, which 

 amount is asked in judgment by the railroad company. 



The Chicago, Rock Island & Pacific Railway Company has recently 

 made a proposition to compromise the claims for refund on overcharges 

 against tliat road arising oiit of the excess freight and passenger rates 

 charged during the past five years over those as fixed by the railroad 

 commission in 1908. Under the terms offered by the railroad said com- 

 pany is to pay into the court the sum of $30,000, which is to be used in 

 paying a prorated amount of all claims filed for refund of overcharges 

 made in passenger fares during the above mentioned period. It also 

 offers to pay into the court the sum of $100,000, to be used in the same 

 manner for liquidating the claims filed against said company for the 

 refund of excess freight charges made during the above named period. 



This proposition has been endorsed by the three members of the 

 Arkansas Railroad Commission, by Attorney General W. L. Moose, by 

 Special Counsel Judge Jos. M. Hill and by Governor George W. Hays. 

 This proposition ot compromise will be submitted to Judge Jacob Trieber 

 of the United States District Court at this place, and all claimants will 

 be given an opportunity to be heard as to whether or not they desire to 

 accept the proposition as made or continue the litigation. Judge Hill, 

 who has conducted these cases for the state since 1908, is of the opinion 

 that this is a fair settlement in that it insures the continuation of the 

 two-cent passenger fare rate and the rate as fixed by the Arkansas Rail- 

 road Commission in what is known as Standard Freight Distance Tariff 

 No. 3. He thinks that the shippers and consignees will realize from 

 thirty to fifty per cent of their claims for freight overcharges, and that 

 the passenger refund will be paid practically in full, as the amounts 

 which will he proved will be less than the actual amounts of overcharges 

 made by the railroads. 



A Forestry Law for Virginia 



A forestry law, the first that Virginia has ever had, was passed by the 

 Virginia Assembly on Friday, March 13, after a campaign waged for several 

 weeks by the American Forestry Association, it being an important part 

 of the association's work to secure the passage of forestry laws in the 

 various states. The association sent its representatives into the state 

 several weeks ago and in talks with prominent residents and by articles 

 in the newspapers presented to the citizens the needs of the state for 

 proper forestry management of its timberlands and its waste lands un- 

 suited for agricultural purposes. The state's forest products are estimated 

 as being worth $30,000,000 annually, and its forested area is 15,000,000 

 acres. Forest fires have caused a loss of about $350,000 annually for sev- 

 eral years. The state ranks sixth in lumber production, but despite this 

 previous efforts to secure the passage of a forestry bill were failures, owing 

 to the general apathy of the citizens and the members of the legislature. 



The sentiment aroused by the American Forestry Association, however, 

 was so strong that citizens from every part of the state urged considera- 

 tion of a forestry bill introduced in the Senate by Senator R. S. Blackiiurn 

 Smith, and following addresses before committees of the Senate and 

 House by S. B. Detwiler, an expert forester representing the American 

 Forestry Association, J. Girvin Peters of the Forest Service and others, 

 the bill passed the Senate unanimously and the House by a vote of 86 to 3. 

 Governor Stuart heartily commended the bill and signed it. 



The bill places the forestry work under the direction of the State Geo- 

 logical Commission (composed of the governor, the president of the Uni- 

 versity of Virginia, the president of the Virginia Polytechnic Institute, 

 the president of the Virginia Military Institute and one citizen from the 

 state at large). Until 1916 the bill provides that the expenses Incurred 

 in the organization and operation of the forestry department are to be paid 

 out of the budget of the University of Virginia. 



The other provisions of the bill are very similar to those in the law 

 now in successful operation in Kentudiy. The principal powers conferred 

 on the forestry commission by the bill are as follows : 



1. The appointment of a technically trained man as state forester. 

 1'. The commission has the power to purchase lands suitable for forest 



