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((<^1^ Vast Importance of Classification 



Editor's Note 



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 lH*r AsKoclntlon. 



By lui order of July 9 tlie Interstate Cum- 

 nieree Commission entered into n general in- 

 quirj- into the nites, practices, rules and rojn'- 

 lations of common carriers ijo^eriiinK the 

 trans|>ortntion of lumber jind hiinlH'r iiroducts 

 to all points in the United Stiiles, with special 

 reference to the relationship on different kinds 

 of lumber and lumber products. 



This inquiry is the result of the long stinul 

 ing confusion relative to correct classification 

 of lumber and various products furtlier manu 

 fnctureil. From the very beginning, rnilroml 

 companies and individual carriers made their 

 own lumber couuuodity classifications, each of 

 which have been different from that of tlic 

 other carrier. In recent years, carriers in cer- 

 tain rate districts have succeeded in placing 

 their classification on a common basis, al- 

 though this has but in part succeeded. The 

 increasing number of complaint^, however, be- 

 fore the commission caused it some eighteen 

 months ago in the eastern wheel manufactur- 

 ers' case to suggest to the railroads that the 

 three classification committees prepare a uni- 

 form list of lumber and forest products which 

 could be adopted throughout the country. After a long deliiy, the 

 five rate associations surrounding and including the Central Freight 

 Association territory appointed a committee, tliroc from each of the 

 five associations, with .1. E. Crosland of the Louisiana & Nashville as 

 chairman. After repeated meetings up to June of this year, the com- 

 mittee has finally proposed a list to the individual carriers for their 

 acceptance. This list, however, apparently was not approved when 

 called to the commission 's attention and as the result a general order 

 has been issued to cover the entire country. 



Inquiry Presents Opportunity 



This general order by the commission aroused much discussion 

 among lumbermen as well as among carriers, although the lumbermen 

 as a whole have long been known for their lack of interest in lumber 

 rate matters. 



The United States Forest Service in conection with its friendly 

 investigation of the lumber industry has recently been securing from 

 lumbermen their opinion as to whether rates on lumber sliould be 

 based upon market value of products, grade or the degree of manu- 

 facture. The present order wiU apparently place the railroads in a 

 position of defending their present classification instead of allowing 

 them to show why the proposed list should be adopted. On the other 

 hand it will present to the lumbermen an opportunity of showing the 

 present conditions of the lumber business as was recently done before 

 the Federal Trade Commission hearing at Chicago. 



Lumber Industry Paralyzed 

 The tratfic officials closely connected with lumber tonnage have for 

 many months noticed the tremendous reduction in lumber movement 

 over their lines and those close to the industry itself have known that 

 there has been a tremendous depression in this third greatest industry 

 of the nation. Sawmills over the entire country recently have been 

 forced to put their invoices through the bank as never before, and in 

 the South as well as in the West have been literally sacrificing one of 

 the nation's greatest assets at a tremendous national loss. The lum- 

 bermen therefore feel that the opportunity is now presented for them 

 to show the railroads that a classification may be made which will 



\. FI-ICTCHEK MAUSH, CHICAGO 



allow the hiiid)crmcii to materially increase 

 the umouiit of timber which they remove from 

 an acre of land. In this connection one of 

 the large sawmill owners of the South recently 

 said that while ho usually removes 14,000 feet 

 from an acre of tind)crland the present con- 

 ditions are such that he is removing only lu,- 

 000 feet per acre, meaning a loss to the rail- 

 road of 4,000 feet per acre in tonnage. 



liAiLROADS Also Face Opportunity 



With lumber and forest products the second 

 largest tonnage in the country the railroads 

 must be directly influenced by any action of 

 the lumbernien. Recent statements of larger 

 southwestern lines have shown that two- 

 thirds of the loaded lumber cars coming from 

 the North have gone to the South as empties, 

 so any effect which would increase heavier 

 loading would decrease the number of empty 

 cars hauled South. It is therefore supposed 

 that any classification action by the railroads 

 would tend to increase the loading per car 

 so as to at the same time reduce the number 

 of empties now necessary to be hauled South. 

 The tremendous lumber tonnage moving over the larger lines of the 

 country throughout the entire year, as compared to the coal move- 

 ment which moves during the period of greatest operating difficulty, 

 gives lumber strategic importance as far as railroad operation is con- 

 cerned. 



Close Eelationship Between Lumbermen and Bailroads 

 In the early days of tr'anportation history of the country, neither 

 lumbermen nor railroad men felt that the prosperity of either de- 

 l)endcd upon that of the other. In recent years, however, this atti- 

 tude has entirel}' changed so that today far-seeing traffic men regard 

 lumber as one of the foremost desirable commodities to be secured. 

 In addition to its very large tonnage, the fact that lumber may be 

 transported at a minimum operating expense with almost no cost of 

 assembly and a minimum claim expense and the further fact that it 

 does not need to be greatly rushed makes it doubly desirable. With 

 the railroads as one of the largest purchasers of lumber and the 

 lumbermen one of the largest shippers this present close relationship 

 and co-operation between lumbermen aud the carriers should be main- 

 tained if possible. The financial conditions of the roads is such that 

 they would be greatly benefited by a material increase in tonnage 

 from the lumbermen and the lumbermen would in turn be benefited 

 by hiiving the railroads of the country prosperous. 



Classification Changes Important 

 An_\- changes in classification must necessarily affect both the rail- 

 roads and the lumber industry. The present chaos in the lumber clas- 

 sification makes it difficult for the railroads to correctly assess charges 

 while lumbermen must figure on different classifications for almost 

 every shijimcnt which they make. Any change therefore should be of 

 material importance to either parties. Far greater importance will 

 be attached to the fact that both sides will now be able to present 

 their case to the commission in such a manner as to allow each to 

 study the peculiarities of the other. This wiU demand most careful 

 attention but a successful conclusion undoubtedly should be secured 

 which will leave no unfavorable effects to either industry. If, however, 

 the traffic officials and lumbermen fail to appreciate the mutual im- 



