January 10, 1922 



HARDWOOD RECORD 



1') 



hiTship ill tlie Assoriation liavo oai-ncd a handsome divideinl. iiiospectivc 

 of thp npopssary general reductions in forest products rates. 



J. V. Norman will maliC a very complete report witli respect to gen- 

 eral reductions. I desire to state. Iiowever. that we have aggressively han- 

 dled this matter in numerous conferences with the carriers and fln.illy 

 presented it to the Commission as a formal complaint. 



Time Ijmit on Rough Material 



Ouf of the most important (luestioiis handled l>y the .\ssociation duriiit; 

 the past year is the extension of the time limit on rough material tonnage. 

 The ipiestion first came up the midille of last year and figures <if about 

 thirty representative mills compiled at that time indicated that approxi- 

 mately .S2.'),O0II.O00 pounds of rough material tonnage would expire in the 

 last six months of lfl21 unless an exten.sion couhl be secured In the time 

 limit. We handled the matter not only with the carriers, but also with 

 the Interstate Commerce Commission. .Mthough the latter body hail here 

 tofore consistently declined to grant any extension, we were successful 

 in having them Muthcu'ize six montlis additional time in which to ship the 

 outbound product. It is estimaleil that the relief granted was instrumental 

 in saving oiir shippers hundreds of thousands of dollars at a time when 

 they couhl least afford to stand the loss. .Although there has been some 

 slight improvement during, the last few months, the situation with respect 

 to expiration of the time limit on inbound tonnage is almost as bad now as 

 it was last summer: and we found it necessary to again go to the commis- 

 sion tor an extension of time limit on shipments that will expire in the 

 first six months of 1022. The commission has authorized the extension 

 so far as the first four months of 1!)22 are concerned, and the indications 

 are that we will be able to get an extension covering subsequent months if 

 coiiditiims, in the meantime, do not improve materially. 



Transit Case 



One of the greatest victories ever won by the Association is the case 

 before the Interstate Commerce Commission seeking to have transit ar- 

 rangements established on lumber from Memphis, Tennessee, and Lonisville, 

 Kentucky, and which was decideil last year. The transit arrangements 

 have not only been established at Memphis and Louisville, but we have 

 had them extended to include Cincinnati. New Albany. Evansville. Paducah, 

 .Jackson, Mississippi, Covington. Tennessee, and other points where the 

 membership desired. An interesting development in connection with this 

 proposition is the fact that a similar transit case subsequently decided I>y 

 the Interstate Commerce Commission was appealed to the Supreme Court 

 and the court held that the commission had exceeded its authority. Not- 

 withstanding this, we are confident that the transit arrangements will be 

 continued in effect because they are necessary from a competitive stand- 

 Ijoint, and we think the carriers have come to see their value. In addition 

 to transit being established b.v us at the points mentioned, it has been 

 established at Chicago. St. Louis. Nashville and elsewhere. The shippers 

 at these points would not have obtained the transit arrangement had it not 

 been for the activities of this Association. 



Reductions to Norfolk and Newport News 



Through negotiatituis with the carriers, we wen* successful in olitainin.i; 

 readjustment of rates from points on the Chesapeake & Ohio, C. C. & O.. 

 Norfrdk & Western and Virginian Railwa.v. which amounted to reduction of 

 from .S to l.S cents per 100 pounds. It is anticipated that tariffs showing 

 these reductions will lie issued at an early date. 



Rates on Forest Products from Points in Arkansas, Louisiana and 

 Texas to New Orleans for Export 

 The adjustment of rates from points west of the Mississippi River to New 

 Orleans has been up a great many times during the past year. The car- 

 riers have attempted to make advances in rates that we feel should lie 

 reduced. In fact, a proposal was filed with the .Southwestern Tariff Bureau 

 which involved a general increase. We were s\iccessful in having this pro- 

 posal canceled and have subsequently secured reductions approximating 

 '• cents per 100 pounds in rates from many important points, especially 

 along the line of the Missouri Pacific. 



Combination Rates 



Since the Ct cent maxinuiiii ad\;incc was made on forest products in 1918. 

 the so-caJled Combination Tariff has bci-ii in effect, which provides in effect 

 that only a'^ingle advance will be mafle in a total r.ate constructed on com- 

 bination instead of compounding the advance b.v applying it to each factor. 

 The Interstate Commerce Commission, as well as the carriers, have been 

 trying to cancel this so-called C»mil>ination Tariff and if the carriers would 

 publish through rates, it would be a good thing for the shippers, as it would 

 simplify the rate structure. We. however, found it necessary to vigorously 

 oppose any cancellation of this tariff which would result in further in- 

 creases in rates on forest products. Wi> have lu-epared comprehensive state 

 ments for the carriers, showing the additional through rates necessary, ami 

 sent copies of these statements to the Interstate Commerce Commission. 

 We have now been informed that it will not be canceled before ,Tune 1. 

 1022, at which time it is expected that the interests of shippers will be 

 properly protected by other methods of tariff publication which will avoiii 

 any further increases in the rates. 



Freight to Canadian Points 



Members interested in the handling of traffic to Canadian points will 



recall the burdensome prepay requirement which was establislied by the 



carriers due to the difference in the rate of exchange. We exerted every 



possible influence to have the prepay requirement withdrawn or modified. 



ami a scheme was finally worked out which permits of shipments being 

 handled collect without penalizing the shipper to the extent of full collec- 

 tion of the freight charges in American funds. More recently the matter 

 of marking freight to Canadian points has been under consideration and we 

 have taken an active part in the proceedings. Forest products were orig- 

 inally required to be marked, showing the country of origin, in the same 

 manner as other freight ; but wc were successful in securing a modification 

 which exempts shipments of forest products from this requirement. 



Increased Demurrage Rates Withdrawn 



Karly lasi year the carriers atlempled to restore the high wartime de- 

 murrage charges, and feeling that conditions dirt not warrnnl any increase 

 In demurrage rates we applied to the Interstate Commerce Commission for 

 a suspension order. Following this we handled the matter with tlie car- 

 riers themselves, and they finally agreed to witlulraw the increased rates. 



Advances in Rough Material Rates Between Points on the Columbus 

 and Greenville Railroad and Mobile & Ohio Railroad 

 A matter of exceptional interest to our members on the M. & () ami Co- 

 lumbus & fireenvllle roads was an attempt made by those lines to cancel 

 their net rates on rough forest products and apply a much higher scale of 

 fiat rates. Hy filing brief with the Uate Committee and exerting every pos- 

 sible infiuenee with these lines, they were finally prevailed upon to with- 

 hold any change in the rates. We are watching this situation closely be- 

 cause any change of the character proposed would undouldedly have a far- 

 reaching effect upon the adjustment of log rates in the South and South- 

 west. 



Rates on Fuel Wood 



There lias lieeu a considerable demand for fuel wood in Chicago anri 

 other northern consuming markets, but it has been practically impossible 

 to ship this material from the South because it could not stand the lumber 

 rates. There is ordinarily a great deal of this material available at many 

 of the southern mills which has represented a considerable e<'onomic loss 

 because it could not find a market. We have been working on both the 

 east and w'cstside lines for many months to establish rates which would 

 permit of the movement of fuel wood. Considerable progress has been 

 made and rates have been established from points on such lines as the 

 Illinois Central, Y. & M. V., Frisco, etc., which are about 10 cents less than 

 the lumber rates. The indications are that we will be able to have these 

 rates extended to cover mills on the other southern and southwestern lines, 

 and this will mean that the offal of these mills will be able to reach the 

 consuming markets hereafter. 



Claims Arising Under Federal Control 



Karl.v in 1'.I21 the resources of the ,\ssociation were faxed to the utmost 

 In filing all overcharge and other claims against the Railroad Administra- 

 tion with the Interstate Commerce Commission in the shajie of elaborate in- 

 formal complaints. We had previously secured a ruling from tlie Railroad 

 Administration that they would honor overcharge claims on and after 

 March 1, 1021. whether or not they had been recorded with the commission : 

 but the Director General reversed his ruling in February and it then became 

 necessar.v for the varit)us offices of the Association to analyze all of their 

 claims and file thousands of them with the Interstate Commerce Commis- 

 sion on a special form which we previously submitted to the commission 

 for its approval. Our members were also fully advised of these require- 

 ments and the steps necessary to protect their interests. In this way thou- 

 sands of dollars were undoubtedly saved that would have been lost because 

 although there had been some talk in Congress of passing a bill which 

 would afford shippers relief in eases where they failed m tile their claims 

 properly, such a bill has never materialized. 



Advances Proposed in Rates on Forest Products Between River 



Poijits 

 Wc took an active part in recent suspension proceedings before the Inter- 

 state Commerce Commission involving the general adjustment of rates be- 

 tween the river points. The carriers propose<l numerous aifvance* In rates 

 on various forest products, which they claimed were necessary to protect 

 the intermediate points under Fourth Secticui requirements of the Inter- 

 state Commerce Commission. Wc were successful in maintaining practically 

 all of the forest products rales from the river points, and this has further 

 had the effect of bringing about a great many reductions at the interme- 

 diale points so as to avoid violation of the Fourth Section. 



Elimination of Transportation Tax 



One of the most important devilopmcnts during the past year from a 

 transportation standjioint is the elimination of tiie transportation tax on 

 freight, express, passenger fares, etc., which took effect on .lanunry 1st. 

 The Treasury Department has made a number of complicateil rulings with 

 respect to assessment of the tax where transportation commences prior 

 to January 1st and ends on or after that time and in connection with the 

 filing of claims. These rulings have been described to our members, but 

 they are urged to coinnuinicatc with us wherever any dilliculties are en- 

 countered. 



Absorption of Switching Charges 



About two months ago the soutlnveslern <-arriers silbmltteil a proposition 

 to the Rate Committee which. If adopted, would have meant a discontinu- 

 ance of many of the important switching absorptions that are now made 

 and would undoubtedly have spread to other territories. We tiled a brief 

 with the Rate Committee and secured the coiiperation of some of the ini- 



