April 25, 1017 



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•J;^ Portentious JMeeting at Memphis ^ 



More tlian one hundred hardwood lumbermen, shipping annually 

 more than 225,000 cars of hardwood lumber and forest products, in 

 session at the Hotel Gayoso, Memphis, Tuesday, April 17, in response 

 to a call sent out by James E. Stark, president of the Southern 

 Hardwood Traffic Association, adopted resolutions strongly protesting 

 against the proposed blanket advance of 15 per cent in hardwood 

 rates on the part of the carriers and earnestly advocating the adoption 

 of a car i^ooling arrangement, under the control and direction of the 

 Interstate Commerce Commission, as a means of strengthening the 

 plans of national defense and as a means also of insuring a more 

 equitable distribution of cars. They also adopted resolutions favoring 

 increased production of foodstuff crops on the part of all lumber- 

 men who are cultivating cutover lands, this latter action being in 

 response to a telegram received during the meeting from Secretary 

 Eedfield of the Department of Commerce. 



The meeting was called to order immediately after luncheon by 

 President Stark, who explained that it was the most important ever 

 held by this organization, because it occurred at the most critical 

 period in the lives of the present generation following the assumption 

 of the responsibility by the United States Government of entrance 

 into the European war. He thought the session should be executive 

 and gave his reasons therefor as follows : 



"I do not think so important an organization as we have should 

 go on record as taking any action without very thoughtful and very 

 deliberate discussion of it and I want every one to feel that he can 

 discuss the cjuestious to come up without fear of being quoted in 

 the press or outside of this meeting." 



In connection with the protest against the proposed advance of 

 15 per cent in hardwood rates, the first subject considered, President 

 Stark appointed the following committee: Walker L. Wellford, 

 Chickasaw Cooperage Company, Memphis; George C. Ehemann, George 

 C. Ehemann & Co., Memphis ; George Land, Lamb-Fish Lumber Com- 

 pany, Charleston, Miss. ; John W. McClure, BeUgrade Lumber Com- 

 pany, Memphis, and W. H. Eusse, Russe & Burgess, Inc., Memphis. 

 These gentlemen prepared the following resolutions, which were 

 adopted by unanimous vote: 



Whereas. The railro.ids throughout the United States are proposing 

 an advance in all freight rates of approximately 15 per cent, based on 

 the, assumption that it is imperative that additional revenue be raised 

 to meet their increased cost of labor and operating expenses, it seems 

 proper that the Southern Hardwood Traffic Association, the largest forest 

 products traffic organization in the country, whose members handle in 

 the aggregate of over 250,000 cars annually, to express collectively its 

 views on a subject which is vitally connected with the success and pros- 

 perity of the hardwood industries. 



During the past five years the carriers have asked for and received 

 tremendous increases in the rates on forest products. This is especially 

 true of the Mississippi valley territory, where very heavy advances have 

 been allowed. In some instances this increase has been as much as 40 

 per cent. In I. & S. Dockets 1S4, 520, 7-15, 775 and others advances were 

 allowed. In the last named docket we were practically assured by the 

 carriecs that if they succeeded in getting this advance they would not 

 undertake any further advances in the hardwood rates. In view of 

 these radical advances we feel that no further advances should be allowed 

 from this section in the rates on hardwood forest products. 



Therefore, be it. Resolved, That any advances in hardwood rates be 

 suspended, and the Interstate Commerce Commission hold a full investi- 

 gation, at which both carriers and shippers can be heard for and against 

 the proposed advances, and that the hearing and investigation be con- 

 ducted along such lines as to show the extent of transportation cost and 

 what each class of freight and each commodity is paying, based on the 

 distance transported and conditions governing its transportation, and 

 that increases in freight rates bo allowed only on such classes and com- 

 modities as are not paying their just share of the transportation tax ; and 



Bb it fckther, Kesolved. That a copy of these resolutions be sent to 

 the secretary of the Interstate Commerce Commission, Washington, D. C. 



During the discussion on the advance in freight rates one member 

 pointed out that cotton shipped from Memphis to New England points, 

 valued at from $5000 to $6000 per car, pays less revenue to the 

 railroads than a single carload of lumber having a value of less than 

 $500. Another point emphasized in this comparison is that cotton 

 always demands the best equipment in the way of box cars and that 

 lumbermen are compelled to ship on flat cars. 



During the discussion of freight rates a telegi-am was received 

 from the Interstate Commerce Commission advising that it will hold 

 an informal conference Friday with the shippers to determine on a 

 plan under which the commission will permit carriers to publish 

 proposed advances and the character of investigation to be conducted. 

 President Stark was authorized to appoint a committee of one to 

 attend this conference. It was announced later that Mr. Stark had 

 been prevailed upon to go to Washington and that he VFOuld be 

 accompanied by J. H. Townshend. 



It was suggested during the discussion that the advance should 

 be allowed for patriotic reasons and to show the loyalty of the lum- 

 bermen to the government. But it was the consensus of those present 

 that loyalty, to be sincere, must go hand in hand with justice and 

 that it would be unjust to ask the lumbermen to pay an advance of 

 15 per cent in freight rates after just having received (from them) 

 an advance of 20 per cent in March. 



In connection with the subject of car shortage it was pointed out 

 that the government is taking boats off the great lakes and out of 

 the coastwise trade and that this is forcing a large amount of addi- 

 tional tonnage on the carriers and that it is necessary, as a national 

 defense measure, that a car pooling arrangement be perfected to 

 insure equitable distribution of cars. After mature consideration 

 the following resolution, presented by W. B. Morgan of the Morgan 

 Veneer Company, Pine Bluff, Ark., was adopted: 



WHERE.4S. The car shortage situation which has been confronting the 

 hardwood forest products industry of the South for the past seven months, 

 necessitating the closing of plants, throwing labor out of employment, 

 jeopardizing investments in the forest product industry and causing great 

 tinancial loss : and 



Whereas, The. situation is not improved and the present car regula- 

 tions promulgated by the American Railway Association, which became 

 effective February 21, in many instances have had the effect of absolutely 

 shutting off empty foreign cars from coming to southern lines, and. fur- 

 thermore, it appears that northern carriers are observing the rules in 

 that they do not turn over foreign cars to southern carriers, but are not 

 observing them in turning company cars over to southern carriers ; and 



Whereas, It further appears that under normal conditions, approxi- 

 mately CO per cent of all freight equipment of any one road in the country 

 is owned by foreign carriers ; and 



Whereas, The only way that car distribution can be satisfactorily set- 

 tled is by a universal car pool arrangement, giving the Interstate Com- 

 merce Commission full authority to order distribution of empty cars ; and 



Therefore, be it, Resolveo, That the Southern Hardwood Traffic Asso- 

 ciation, whose members handle over 250,000 cars of hardwood forest prod- 

 ucts annually, respectfully petition the Interstate Commerce Commission 

 to hold a hearing relating to a universal car pool and after prompt and 

 thorough investigation present and recommend the passage of a bill legal- 

 izing a universal car pool arrangement imder the supervision of the 

 Interstate Commerce Commission, with authority to provide b.y contracts 

 for the building of cars of sufficient amount to relieve the present strin- 

 gency, which could be furnished the railroads on a per diem basis, thereby 

 imabling the railroads to relieve the present car situation and pay for 

 them without increasing freight rates ; and 



J. H. Townshend, secretary-manager of the Southern Hardwood 

 Traffic Association, stated that this organization had, during a hear- 

 ing before the Interstate Commerce Commission in 1914, suggested 

 such a car pooling arrangement and that it had expressed itself favor- 

 ably in regard to this measure on numerous occasions since. He 

 said, however, that the need for such an arrangement was more urgent 

 now than it had ever been. He made this statement with a view to 

 showing that the association, in adopting the resolutions, was carry- 

 ing out a plan it had long favored and one that it believed would 

 result in great good to all concerned. 



In response to the telegram from Secretary Eedfield, urging in- 

 creased food crops, President Stark, on motion, appointed a com- 

 mittee of five to look after this subject, as follows: H. B. Anderson, 

 Anderson-TuUy Company, Memphis; F. L. Gregory, Bliss-Cook Oak 

 Company, Blissville, Ark.; P. H. Sparks, Lamb-Fish Lumber Com- 

 pany, Charleston, Miss.; W. C. Bonner, J. H. Bonner & Sons, Heth, 

 Ark., and H. H. Alexander, Alexander Brothers, Belzoui, Miss. It 

 was pointed out that all the members of this committee are at pres- 

 (>nt farming and that the majority of the lumbermen are raising 

 large foodstuff crops. 



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