January 25, 1918 



HARDWOOD RECORD 



39 



typewritten pages covering in detail the operations of the year. From 

 this are selected the following principal accomplishments: 



First: Saving the members thousands of dollars through securing 

 suspension for fifteen months of the proposed tariflfs increasing rates 

 from southern producing points to destinations in Central Freight 

 Association territory and through securing effectiveness of the advance 

 two months after it was granted by the commission, thus enabling 

 members to ship out a great deal of stock that would have otherwise 

 been penalized. 



Second : Defeating the efforts of the carriers, in the 15 per cent 

 horizontal advance in freight rates, in having these rates become 

 effective July 1 and saving 41 members of the association $191,747 

 in freight bills ; also in having the commission hand down a decision 

 denying this advance as to commodity rates. 



Third : Effected a compromise settlement by which free time on 

 export shipments was reduced from 10 to 7 days. 



Fourth: Convinced Arkansas railroads that an advance of 15 per 

 cent in rough material rates in that State was not justified. 



Fifth: Made certain recommendations to the Interstate Com- 

 merce Commission in the case involving reclassification of lumber 

 and lumber products and succeeded in having the examiner recom- 

 mend to the commission adoption of the principle of "varying rates 

 for varj-ing minima." In this connection, Mr. Townshend stated 

 that the larger lumber organizations and the carriers were in favor 

 of abandoning the investigation in the reclassification case, but he 

 recommended that the association press for an early decision. 



Sixth: Pleasing Louisville members through the excellent service 

 rendered by the branch oiEce at that point, in charge of E. B. May, 

 and rendering excellent service to Helena members through the branch 

 oflSce opened in that city September 1, in charge of J. A. Koehler. 



Seventh: Bringing pressure to bear on congress for remedial 

 legislation that would enable the railroads of the country to be operated 

 as a single line and that would render the transportation situation 

 adequate for the needs of the country, and in having thousands of 

 cars sent from the congested Eastern territory to the South for loading 

 with lumber. 



Eighth : Securing information by every means possible that 

 enabled the association to know just what were the needs and the 

 deficiencies of its members in the way of cars and putting the organ- 

 ization in position to forecast periods of plentiful car supply as well 

 as periods of exceeding car scarcity, so that they might know how 

 to conduct their business and handle their shipments. 



Ninth: Issuance of the rate book, distributed at $20 for the first 

 copy and $10 for each additional copy, and greatly increasuig the 

 number of points covered, thus keeping it up to date. 



Tenth: Secured, a reduction of 20 cents per hundred pounds on 

 minimum of 60,000 pounds to Pacific coast points and appeared before 

 the commission, with promise of success, in opposing the proposed 

 increase of Pacific coast rates to 75 cents on 60,000 pounds and to 

 80 cents on 40,000 pounds. 



Eleventh: Defeated efforts of the Rock Island to cancel through 

 rates from stations on its lines in Arkansas and Louisiana to Pensa- 

 cola and had lower rates published from points on the Illinois Central 

 and Yazoo & Mississippi Valley roads in Mississippi to Mobile and 

 Pensacola. In this connection Mr. Townshend stated that it is the 

 intention of the association to continue to press the carriers for 

 establishment of equitable rates to the various ports in order that, 

 when the war ends, members may have in effect such rates as will 

 insure their commodity reaching the ports without undue disadvantage. 



Twelfth: Prevailed upon a number of carriers to publish through 

 rates to consuming territory in Carolina. 



Thirteenth : Collected claims of $36,420.02 out of a total of 59,042 

 and carried over claims amounting to $32,741.83 to be collected. It 

 returned as uncollectible claims amounting to only $2,640.72. 



Fourteenth: Gained 39 members in 1917, compared with 27 in 

 1916, making a total membership of 151. 



Fifteenth: Saved thousands of dollars to members by handling 

 various minor complaints, rate adjustments, trackage agreements, 

 switching problems and other matters. 



Sixteenth: Put F. B. Larson in charge of embargoes and informed 



the association so that it is "better equipped than any other associa- 

 tion or railroad in the South to tell what embargoes are in effect and 

 what are not. ' ' 



In conclusion Secretary Townshend thanked the members, the gov- 

 erning board and President Stark for their support and co-operation, 

 and paid a tribute to the ability and faithfulness of the oflSce force, 

 consisting of five traffic experts and four stenographers. 



The report of the treasurer, Elliott Lang, showed that, after enjoy- 

 ing receipts of $29,636.94, the association had a fair working balance 

 with which to begin the new year. Under the head of receipts, the 

 biggest item was $20,683.39. 



W. A. Ransom, chairman of the membership committee, confirmed 

 the gain in membership reported by Secretary Townshend. 



R. L. Jurden then submitted a resolution tendering the services of 

 the association to William G. McAdoo, director general of the rail- 

 roads, it being felt that the association has services which will greatly 

 aid the government in expediting freight movements. The resolution 

 was unanimously adopted. 



J. V. Norman did not believe government control would solve all 

 the problems of transportation, but that it would help greatly. He 

 believed it would be successful, and that if this proved true, there 

 would never be a return to private ownership and separate operation 

 of the railroads. He thought the outcome of government operation 

 would depend primarily on two things: The ability displayed by 

 Director-General McAdoo and his assistants, and the loyalty of officials 

 and employes of the railroads. He regretted that Mr. McAdoo had 

 chosen so many men who were not only opposed to government opera- 

 tion but who also opposed government regulation, and that he had 

 not chosen a single assistant to represent the interests of shippers. 

 He assumed, however, that the railroad officials and employes, would 

 rise to the discharge of their responsibilities in the present national 

 crisis just as other big men are doing, and then outlined the advan- 

 tages that would follow under government operation, as follows: 



First: A car will be a car without regard to the name on its side 

 and, like the Arkansas traveler, will be at home wherever it may be. 



Second: Locomotives will be sent wherever they can be used to 

 best advantage, without regara to ownership, thus insuring equitable 

 distribution of motive power. 



Third: The two-line haul, with its higher rate than the one-line 

 haul, will be completely eliminated, much discrimination will be 

 removed and rates will be leveled. 



He summarizes the economies from government operation in this 

 way: 



First : In terminals, which will be operated as a unit in future 

 at greatly reduced cost to shippers and large saving to the carriers. 



Second: In high salaries. There will be no more instances of 

 presidents of eastern roads drawing $100,000 from the parent corpo- 

 ration and $25,000 each from four subsidiary companies, and there 

 will be no more soliciting freight and passenger forces. 



Third: In handling freight by the shortest and most direct avail- 

 able route. He asserted in this connection that there is a vast distinc- 

 tion between the shortest route and the shortest available route, and 

 that observance of this difference would prevent the congestion here- 

 tofore developing tlirough use of short routes without regard to 

 whether they were open or not. 



Fourth: In eliminating duplication of passenger service, letting 

 two or three trains between given points do the work eight to ten 

 had done before. 



Fifth : In elimination or great reduction in downtown ticket 

 offices. 



Sixth : In ability of the government to borrow money for improve- 

 ments and equipment at lower rates than any corporation could do, 

 however strong. He declared that this furnished an excellent oppor- 

 tunity to lumbermen, since many cars would be bought and since 

 wood would have to be used, no steel being available. 



Seventh : In rendering possible commercial use of tree-tops and 

 other forest products not heretofore profitable because of prohibitive 

 freight rates. 



Under disadvantages, he said that shippers would lose the right 

 ■ to route their own shipments, that they woiild have to pay higher 



