June 2r>. 1015. 



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Interesting Traffic Developments 



Log Rates from Arkansas to Memphis 



In Uio matter of rates on logs from Stuttgart anil other points in 

 Arknnsiis to Memphis, Tonn., the Interstate Commerce Commi^:8ion 

 has ruleii tliut the proposcil cancellation of rates on logs in carloads 

 from these points in the same vicinity to Memphis, Tcnn., is not 

 found to be justified. 



In part the decision reads: The respondent's reasons for the 

 jiroposoil cancellation are no logs have moved, or can move, from 

 these points, except perhaps occasionally ; the present rate was pub- 

 lished inadvertently; tlie rate might be used in comparison to respond- 

 ent "s detriment. Protestants were unable to testify concerning the 

 traflic, and their protest was due evidently to their general opposition 

 to all increases of this kind rather than to any injury likely to 

 result from this particular increase. It was shown, however, that 

 there are tracts of timber which, by the construction of spur tracks, 

 may possibly find an outlet over the branch involved. 



Specific rates on logs from Arkansas points to Memphis are carried 

 in the respondent's present tariff. Rates are named from numerous 

 points on respondent's main line from Little Rock to Memphis 

 and on several other branches besides the Stuttgart branch. The 

 carload rate on logs from about twenty stations between Hart and 

 Palestine, Arkansas, is four and one-half cents per 100 pounds; the 

 rate from all points between Hazen and Lonoke, Arkansas, six cents. 

 Lonoke, the most westerly point, is 111 miles from Memphis. Hazen 

 is a few miles west of Mesa, and the branch line from Mesa to Stutt- 

 gart is nearly perpendicular to the line through Hazen and Lonoke. 

 Stuttgart is 109 miles from Memphis, and the rate from points on tlie 

 Stuttgart branch is six cents, the same as from points between 

 Hazen and Lonoke. The rate proposed to be canceled, therefore, 

 accords with the other rates carried by respondent. 



The cancellation proposed would render applicable a rate of eleven 

 cents per 100 pounds, which is the rate applicable to carload ship- 

 ments of lumber. No evidence was .adduced to prove this rate reason- 

 able for shipments of logs. Since logs move from points in the 

 same vicinity at rates ranging from four and one-half cents to six 

 cents, a rate of eleven cents from the points involved presumably 

 would be discriminatory even for a single carload shipment of logs. 

 The present rates from points in the same vicinity also vitiate 

 respondent's contention that the rates in issue may be used detri- 

 mentally to respondents in rat« -comparisons. 



Cancellation of Louisiana Milling-in-Transit Rates Denied 



I'roposed withdrawal of milling-in-transit rates on logs, rough 

 staves and stave bolts at points in Louisiana was not found to have 

 been justified by the Commission in a recent decision. The tariff 

 under suspension was ordered cancelled. Commissioner Clarke, in 

 discussing the case, stated that practically since 1910 respondents, 

 as well as other carriers serving Alexandria, have maintained net 

 transit rates on logs, rough staves and stave bolts much lower than 

 the rates on forest products and lumber. The present net rates are 

 approximately forty per cent of the lumber rates. The regular 

 forest products rates are assessed on the raw material, but when the 

 manufactured article to the extent of one-third the weight of the 

 raw material is shipped out via respondent's lines, a refund to the 

 basis of the net rates is made on the inbound material. 



In justification of the proposed cancellation, respondents urge that 

 there is no reason for the maintenance of transit rates on these com- 

 modities at Louisiana points; that the proposed cancellation is in 

 conformity with the views of the commission in that flat rates will 

 be restored, and that the present rates are unremunerative. 



In support of the first proposition, it is stated that logs, rough 

 staves and stave bolts originate near the milling points, and for this 

 reason there is no occasion to equalize manufacturing points, as is 

 the case in other transit arrangements. Protestant contends that 

 owing to the scattering growth of hardwood, which furnishes the 

 raw material, it is necessary to operate mills at central points. There 

 is a very substantial movement of the raw material to Alexandria. 



Respondents have introduced no evidence to show that the pro- 

 posed increased rates arc rea.«onable, and very meager testimony to 

 show that tho present rates are unremunerative. Practically their 

 entire ;irgument is ilirected in support of tho contention that they 

 have a right to concel this transit arrangement at Louisiana points. 



On brief, respondents as.sert that the commission is without power 

 to order a carrier either to install or to continue a milling-in-trnnsit 

 arrangement except for the i)urpose of removing discrimination. If 

 we were to accept this view of the limitation of the commission's 

 power, which we do not, this case falls clearly within the admitted 

 Jurisdiction of the commission, as the record shows that unjust dig- 

 crimination would result if the suspended tariff were to become 

 effective. 



Reparations Awarded 



Reparation in the following cases have been ordered by tho com- 

 mission: Krauss Bros. Lumber Company versus the Yazoo and 

 Mississippi Valley Railroad Company; Pickering Land and Timber 

 Company versus Lake Charles and Northern Railroad; Houston Bros, 

 versus Illinois Central; Brooks-Scanlon Company versus Illinois 

 Central ; The Fullerton-l'owcll Hardwood Lumber Company versus 

 Alabama and Vicksburg Railway Company; Daugherty, McKcy & 

 Co. versus Mobile and Ohio Railroad Company; Natalbany Lumber 

 Company versus Illinois Central; LongviUe Lumber Company versus 

 Louisiana Western Railroad Company; Pickering Land and Timber 

 Company versus Lake Charles and Northern Railroad Company; 

 Foster Lumber Company versus Gulf, Colorado and Santa Fe; The 

 Riverside Lumber Company versus Louisville and Nashville; Terhune 

 Lumber Company versus Southern Railway Company; Himmelberger- 

 Harrison Lumber Company versus St. Louis, Iron Alountain and 

 Southern Railway Company; King Lumber and Manufacturing Com- 

 pany versus Atlantic Coast Line Railroad Company; International 

 Lumber Company versus The Chicago, Rock Island and Pacific Rail- 

 way Companj'; Earthman Lumber Company, Inc., versus Chicago, 

 Burlington and Quincy Railroad Company ; Himmelberger-Harrison 

 Lumber Company versus St. Louis, Iron Mountain Southern Railway 

 Company ; Sage Fifield Lumber Comjiany versus Chicago, Milwaukee 

 and St. Paul Railway Company; Ferd Brenner Lumber Company 

 versus Southern Railway; Houston and Liggett versus Nashville, 

 Chattanooga and St. Louis Railw.iy. 



Miscellaneous Cases 



Virginia-Pennsylvania rates on hardwood lumber have been attacked 

 in the case of the Hardwood Package Company versus the New River, 

 Holston & Western Railroad. 



Rates on mahogany from New Orleans to Michigan and Indiana 

 points have been found to be reasonable by the commission in a 

 decision rendered in the case brought by the Otis Manufacturing 

 Company of New Orleans. The Otis company maintained that the 

 existing rates are unreasonable and unjustly discriminatory. The 

 commission awarded the Otis company reparation on shipments of 

 mahogany which moved from New Orleans through Gulfport to Grand 

 Rapids, Mich. 



A hearing has been assigned in the case of Beekman Lumber 

 Company versus the Missouri Pacific at Kansas City July 7 before 

 Examiner Dow. 



The hearing in the case of Citizens Lumber Company versus the 

 Chicago, Rock Island and Pacific, set for July 14 in Des Moines, has 

 been cancelled. 



The Frisco and other carriers have been ordered to pay the Chap- 

 man & Dewey Lumber Company reparation in the amount of $1,376.83 

 with interest from Oct. 1, 1912. 



Authorization has been granted to establish rates on spokes in the 

 white from Harriman and Harriman .Tunetion, Tenn., and points 

 taking the same rates, to points in Alabama, Georgia, Florida, Missis- 

 sippi, Arkansas, Tennessee and Louisiana, the same as the rates in 

 effect from Tullahoma, Tenn., or Nashville, provided no higher rates 

 are maintained from any intermediate points. 



