August 10. 1U15. 



HARDWOOD RECORD 



25 



|iortance of any change and that mutual ylvnntage may be secured, 

 it may be truly predicted that the results wliidi actually are secured, 

 will be in many respects unfavorable to bolli parties. It is therefore 

 hoped by the lumbermen that both sides may clearly understand each 

 other and work together on a friendly basis rather than in the nature 

 of the u.sual complaint -before the commission. 



Enormous Waste in Logging 

 Recent statistics from the Porest Service show clearly that only 

 one-third of the timber in the woods is actually consumed. This 

 means that approximately sixty-five per cent of potential tonnage is 

 wasted. Thirty per cent of the total is estimated to be left in the 

 woods, it being unprofitable to log it under the presenl; conditions. 

 The balance of the waste occurs in the course of manufacture, much 

 of which is at the sawmill where sawdust, shavings, edgings, and 

 trimmings as well as short boards are entirely wasted and burned, 

 as the market value is such that such material will not stand the 

 present freight rates. It is believed that the Forest Service as well 

 as lumbermen can agree that a classification which would recognize the 

 low market value of these lumber products would result in a material 

 increase in railroad tonnage and the prevention of^ much further 

 waste. While it is quite ijossible that this low ])riced tonnage would 

 not net the railroads very much profitable business, it unquestionably 

 would increase their total tonnage in the territory where tonnage is 

 needed. Although the lumbermen are now jrowerless to prevent this 

 waste, it is a fact that they are nevertheless blamed for it, and are 

 accused of this waste, much of which is directly attributable to the 

 classification situation. Unquestionably any new classification which 

 would permit of a material reduction of waste would be of enormous 

 benefit to the lumbermen, allowing them to conserve the country's 

 present assets and prevent as far as possible the rapid waste of 

 forest land. To accomplish this reduction, however, it will be essen- 

 tial that all lumbermen unite their efforts with those of the Forest 

 Service so that the greatest amount of tonnage may be moved from 

 each acre to be cut over. Unless this is done there will be a still 

 greater increase of wastage and the railroads will continue to lose 

 more and more lumber tonnage, which may never again be secured. 

 Fundamentals op Classification 

 To successfully make any new classification of lumber and its 

 kindred commodities, forest products, it will be necessary not only 

 to carry out the exact suggestion of the Interstate Commerce Com- 

 mission in the eastern wheel manufacturers' case but to provide some 

 means whereby the previously mentioned waste now going on to the 

 advantage of no one can be stopped to the mutual advantage of the 

 railroads, the lumbermen and the all important consumer. With this 

 in mind, it is evident that any classification should recognize at least 

 the following four fundamentals: 



A. Correct principles of railroad classifi'ation. 



B. The low market value of many forest products. 



C. The continual unredeemable loss of tonnage by present day 

 methods of manufacture and rate construction. 



D. Enormous present — and future potential — value of forest prod- 

 ucts as revenue tonnage. 



The correct principles of classification from a railroad standpoint 

 which includes the risk to the railroad for loss or damage, the value 

 to the consumer or shipper of the commodity shipped and of the 

 space required and operating difficulties necessary to handle the ma- 

 terial, could be easily computed by railroad traffic officials. 



The low market value of many forest products, however, is un- 

 fortunately not appreciated by many railroad officials. As above 

 outlined, however, there is this enormous waste which is continuing 

 and which should from all ordinary economic aspects be conserved by 

 the united efforts of all. This low market value material could be 

 utilized as well in this country as it is now utilized in foreign coun- 

 tries, provided the material could be moveil economically to the large 

 centers of population. At these centers it might be made up into 

 various articles of value or at least could be utilized for many by- 

 products now secured from other countries, which could in the ease 

 of small pieces be used for kindling to a very great advantage. 

 Efforts therefore which would save this further loss will not only give 

 the railroads an increased present day tonnage to help carry over- 

 head expenses but would mean an increase over what would otherwise 

 have been an entire loss. 



Exactly as the Interstate Commerce Commission said in its recent 

 report in I. & S. docket 520, there is enormous revenue value in the 

 present day tonnage. If some action could be taken which would 

 allow that tonnage, which is going to waste, to be saved, the future 

 amount of lumber and lumber products tonnage would be enormously 

 increased, in addition to jiroviding valuable by-products, many of 

 which would need still further transportation as manufactured articles. 

 It is unfortunate from all points of view that the report presented 

 by the original railroad lumber classification committee apparently 

 neglected all but the first of these four essential principles, they con ■ 

 sidering only the correct principles of railroad classification. 

 Education Necessary 

 From the early beginning of the lumber industry in this countrj 

 the lumbermen were regarded as uneducated to the scope of the 

 product which they handled. The very nature of their business re- 

 quired that they be away from civilization — in the woods by them- 

 selves — where only the vast amount of timber and logging diiBcultiec 

 presented themselves. Although in recent- years lumber headquarterK 

 have been in the large cities, nevertheless, lumbermen have clung 

 to certain old principles and have not felt the vast possibilities of 

 educating themselves as to the peculiarities of their trade. It is 

 therefore now necessary that lumbermen become educated as to the 

 importance of the lumber classification and steps have already been 

 fully started. At the same time railroad officials, finding lumber mov- 

 ing in vast quantities, have in most cases overlooked the possible 

 additional value of lumber tonnage and have remained satisfied with 

 that which they now secure, overlooking that which they are losing^ 

 by decay and fire in the woods. In fact only in recent years have 

 traffic men considered it as such very desirable revenue tonnage. 



The tremendous value of educating the interested parties to the- 

 importance of lumber classification may be illustrated by the success. 

 which the eastern carriers had in the last five per cent advance case, 

 wherein they aroused the entire nation to the necessity for giving 

 further advances. Further railroad education has been equally shown 

 in the campaign for "safety first" which has met with similar suc- 

 cess. Lumbermen and railroad officials should now work together to 

 clearly bring forth, in a friendly maimer, the necessary essentials 

 to a proper understanding of classification questions. Much edu- 

 cation can, and should be done by both parties until each of the 

 representatives fully appreciates the other's problems. 



In this way, and only in this way, may a solution be secured whict 

 will be mutually satisfactory, and allow a change in classificatio* 

 which will not disrupt the lumber industry, and consequently hurt 

 the railroad tonnage. 



Co-Operation Suggested 

 Of all the suggestions offered, that which has met with the greatest 

 success has been that the present recognized minimum on rough 

 lumber of 34,000 should be increased to near 50,000 pounds with a 

 subsequent reduction in the rate of 10 per cent. This would result in 

 greatly increasing the ear-mile earning, figuring on minimum weights, 

 which is the recognized standard for compilation of earnings, while 

 at the same time reducing the burden upon the lumber industry. 

 Such a plan, however, necessitates absolutely that the lumbermen and 

 the railroads understand each other's attitude. 



An early solution of many of the difficulties could undoubtedly be 

 secured by the representatives of the lumber industry meeting with 

 the carriers in each rate district and discussing the needs in that 

 particular territory, this plan being followed until a national meeting 

 could be arranged at some central point, to clear up those points 

 upon which all parties can agree. With this solution — so successfully 

 followed recently by paper manufacturers — the Interstate Commerce 

 Commission would then be in a position to take up without interrup- 

 tion the more difficult points demanding its attention. 



Let us not continue to waste our national nnreplacable assets — -tim- 

 ber — without the closest scientific co-operative investigation and con- 

 sideration. 



It takes so much power to drive a shavings exhaust fan that no- 

 woodworking plant should be satisfied to operate any but the best,, 

 for the saving in power here may easily pay for the equipment. 



