May 10. 1915. 



Promiiu'ut lumbermen of New York ami I'liiUulelpliiM testified 

 before the Interstate Commerce Commission Ajiril 28 in Pliiliiilelphia, 

 in the comijlaints of the Trexler Lumber Conijiany of Alleutown, 

 Pa., and the Xorth State Lumber Com[)any of Greensboro, N. C, 

 against the Southern Railway and others. The testimony was taken 

 by Eugene H. Waters, examiner for the commission. 



Tlie comidainants averred that lumber shipped from points in tlie 

 Carolinas to New York, New Jersey, Pennsylvania and other eastern 

 points was sent by Potomac Yards, Va., rather than through Piners 

 Point, Va., because by the latter route tliere is a difference in the 

 freight rate of four cents on a hundred pounds. . 



J. S. Walker was council for the complainants, while Kdwin C. 

 Blanchard represented the defendants. Tiie North Carolina Pine As- 

 sociation intervened and also filed a brief with the examiner. 



The first complaint of the Trexler company was against the South- 

 ern Railway, the Philadelphia, Baltimore & Washington, and the 

 Pennsylvania Company, and involved lates charged on several carloads 

 of lumber shipped during the period of February 23, 1910 to March 

 29, 1911, from points in South Carolina to Harrison, N. J. It svas 

 alleged by witnesses for the complainants that the shipments should 

 have been moved by way of Piners I'oint, Va., an<l that, owing 

 to misrouting of the said shipments by the defendant companies, 

 unreasonable charges were collected. Reparation for the stum of 

 $425.30 was asked and that the defendants be ordered to "cease 

 and desist from the alleged violation of the act to regulate com- 

 merce. ' ' 



The second complaint of this company involved charges of collec- 

 tion on two .shipments of lumber from Batesburg and Steadman, S. C, 

 to Harrison, N. J. It was alleged that, owing to misrouting of 

 these shipments, charges were collected based on unreasonable min- 

 imum weight. Reparation in this case was asked in the sum of 

 $27.70, based on the minimum weight of 34,000 pounds per car. 



The third complaint was against the companies previously men- 

 tioned and the Long Island Railroad. It involved several shipments 

 of lumber from Steadman and Seivern, S. C, and Augusta, Ga., to 

 Kings Park, N. Y., between July 13 and August 15, 1910. It was 

 alleged that these shipments should have been moved bj' way o1 

 Piners Point instead of Potomac Yards, and by reason of the mis- 

 routing reparation in the sum of $93.39 was asked. 



Tlie North State Lumber Company 's complaint was against the 

 Southern Railway, the Philadelphia, Baltimore & Washington, and 

 the Pennsylvania Company. It complau\ed of rates charged on a 

 carload of lumber shipped by the Trio Lumber Company from Ore 

 Hill, N. C, to New York City. It was alleged that at the time of 

 the shipment there was a through rate of 22% cents per hundred 

 pounds from Ore Hill to New York City, applicable by way of the 

 Southern Railway to Piners Point, Va., the New York, Philadelphia 

 & Norfolk railroad to Delmar,. Del., the Philadeljihia, Baltimore & 

 Washington to Philadelphia, and the Pennsylvania railroad to des- 

 tination ; that on the bill of lading and opposite the word ' ' route ' ' 

 were inserted the words "Penn Ry;" that the defendant companies 

 misrouted the shipments by way of Potomac Yards, and a rate of 

 26% cents per hundred pounds was charged; and that the charge 

 was ' ' unjust, unreasonable and unjustly discriminatory. ' ' Repara- 

 tion for the sum of $24.04 was asked and it was urged that the 

 Interstate Commerce Commission establish and maintain, for a period 

 of two years, a rate of 22% cents per hundred pounds applicable 

 to shipments moving between the points named in the complaint. 



Manufacturers and dealers in lumber cut to lengths to carry out 

 house plans received a severe blow, it is understood, when the Inter- 

 state Commerce Commission held that the minimum weights of lumber 

 in mixed ear loads of 30,000 pounds in cars less than thirty-six feet 

 in length, and 34,000 pounds in cars of thirty-six feet or more, for 

 shipment from Ohio and Mississippi river crossings to Central Freight 

 Association and Trunk Line territory, are not found to be unreason- 

 able or unjustly discriminatory. 



The Funk Lumber Company, which filed the complaint is engaged 

 in the manufacture and wholesale and retail sale of lumber and 

 lumber products at St. Louis. Considerable portion of its business 

 is in furnishing lumber for house plans. In a business of this na- 

 ture, there is a demand for low minimum weight, as many of the 

 structures do not require sufficient lumber to make a car load. 



The carriers insist that the minimum weights as now in effect are 

 not unduly low. The average shipment of lumber moving over their 

 lines weighs 47,000 pounds. The commission finds that they are 

 entitled to conserve their ec]uipment in order to meet more legitimate 

 demands than those of complainants for whole cars. 



The following extracts from a brief filed last week bj' the Lamb- 

 Fish Lumber Company with the commission will be of interest to 

 hardwood men: 



There are many sai!inj;s from Mijliilo, and lumber exported through that 

 port was of greater volume than via any other gulf port during the fiscal 

 year ending June 30, 1914. In the neighborhood of three-eighths of a 

 billion feet of lumber and timber was handled through Mobile. For this 

 reason, and due to the fact that ocean rates of an attractive nature are ' 

 often obtainable from Mobile, we consider it necessary for the future ex- 

 Ijansion of our export trade to be able to profit by low rates in the future 

 that might be obtainal)h' througli tids port. 



So far, we have no l^uowledge of an.^' reduction in rate on oak lumber to ' 

 Gulfport, but (hey still remain 1.'! cents, making Gulfport out of line, as 

 compared to New Orleans, two cents on oak lumber. 



Tlie export lumber trade is of a highly competitive nature. Transporta- 

 tion charges are an element of vital importance to the manufacturer. The 

 exporter is intereste<I only in the total freight charge. Foreign buyers 

 demand special stock. Cable charges entail considerable expense and where 

 negotiations are arranged by mail delay is experienced in bringing to con- 

 clusion on account of time required to transmit and translate letters. 

 Although this company commenced in 1010 to cater to foreign buyers 

 direct, it was not until the first six months of 1914 (hat our business abroad 

 reached such proportion as would justify us in placing much dependence 

 upon this patronage. This is demonstrated further by the fact that the 

 thirty-car shipment of gum lumber to Alexandria, Egypt, through Pensa- 

 cola, was the largest single shipment that this concern has made. Memphis 

 dealers have made a specialty of the export trade for j'cars. 



Practically all of the export business of the Lamb-Fish compan.v, amoum- 

 ing to 2,4.55 cars for foreign countries, from and including 1900 up until 

 .Tul.v 31, 1914, moved via New Orleans. Seventy-four ears went to Canada. 

 Movement in question of thirty cars moved via Pcnsacola and approxi- 

 mately twenty-five or thirty cars during that period were forwarded via 

 New York. Memphis dealers all during tins time have had open to them 

 ports at Gulfport, Alobile and Pensacola, in addition to New Orleans, while 

 the Lamb-Fish Lumber Company has been restricted to the port of New 

 Orleans on account of the inland freight charges to the other mentioned 

 ports, being so far in excess of the rates to New Orleans. The Lamb-Fish 

 Lumber Company, under normal conditions, produces in the neighborhood 

 of 40,000,000 feet of hardwood lumber annually, and this production is said 

 to be larger than that of any other hardwood mill in the world. To be 

 able to obtain prices for its products, in line with those obtainable by mills 

 elsewhere, it is essential to the successful operation of its plant that it be 

 in position to meet on equal terms and compete with other dealers in the 

 export trade, the largest number of which are located in Memphis, other- 

 wise prices for its product could not be obtained which would permit the 

 mill to be operated profitably. To continue to develop this foreign business 

 successfully, therefore, it is essential that we lie given rates to other ports 

 in keeping with rates to New Orleans, so that we may, whenever distress 

 room is offered, or an opportunity is presented to work in with pitch pine 

 charters, take advantage of such conditions. 



With the development of this trade, this company, among others, has 

 found it necessary to taiie steps toward reducing ocean cost of transporta- 

 tion. During the fiscal year ending June 30, 1914, there were material 

 increases in the movement of gum and oak lumljer through Pensacola and 

 Mobile, while tonnage of this character through New Orleans decreased. 

 This is evidence that other hardwood exporters have realized the necessity 

 of securing lower ocean rates, and bave found a way by which this can 

 be done through the medium of the pitch pine charters. 



The Lumbermen's Association of New Orleans won its ease against 

 Morgan's Louisiana & Texas Railroad and Steamship Company. The 

 point involved was an export rate from stations on a branch of the 

 Morgan line. The commission held the export rate of eight cents on 

 lumber and goods taking lumber rates to New Orleans from Macklaud 

 and Thistlethwaitc, La., and other stations on the Alexandria branch 

 is unreasonable to the extent that it exceeded seven cents. 



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