January 25, 1921 



HARDWOOD RECORD 



17 



Fight Opened on Prohibitive Rates 



Sonthem Hardwood Traffic Association in Annual Meeting Demands Freight 

 Tariffs Which Will Permit Marketing of Lower Grades 



The Southern Hardwood Traffic Association, at its eighth annual 

 held at the Hotel Gayoso, Memphis, the afternoon of Jan. 20, fired 

 the first broadside in its campaign for lower rates on low-grade lum- 

 ber and forest products when it served notice upon high officials of 

 the principal roads in the South and Southwest that it was abso- 

 lutely necessary that there should be a readjustment of these rates 

 so as to permit the movement of such products to market on a 

 profitable basis. 



This action, which was not unexpected, came in the form of 

 resolutions which were unanimously adopted by this organization, 

 which handles, through its members, more than 500,000 cars of 

 forest products annually. These resolutions instruct the officers of 

 this body to impress upon the presidents of the interested roads 

 the impossibility of moving low-grade forest products on present 

 freight rates and urging them to insist upon immediate revision 

 thereof. 



S. M. Nickey, president, in his annual address, recommended 

 such action when he asked the association to take steps that would 

 make it possible for low grade lumber to 

 move to market. Walker L. Wellford, chair- 

 man of the rate adjustment committee, who 

 offered the resolution, said that the per- 

 centage of low grade lumber being produced 

 is steadily increasing because it is no 

 longer possible for manufacturers of south- 

 ern hardwoods to select the large and choice 

 trees. He declared that the utilization of 

 this low grade materia] from the smaller 

 trees not only represented a long step for- 

 ward in wood conservation, but that it also 

 provided enormous tonnage for the carriers. 

 He insisted that the principal roads in the 

 South and Southwest had been built up 

 largely through forest products tonnage and 

 declared that vigorous action should be 

 taken to secure rates on which this char- 

 acter of lumber and forest products would 

 move. He made a motion that the resolu- 

 tions be adopted and they were adopted 

 without a dissenting vote. The resolutions 

 are presented herewith: 



S. M. Nickey, 

 Re-elected 



Besolutions: 



Whereas, It is Impossible under existing rail 

 rates for the southern and southwestern pro- 

 ducerg of hardwoods to dispose of the low grades 

 produced by them in the consuming markets in 



competition with hardwood lumber and other hardwood products and com- 

 petitive commodities having short hauls to said markets : and 



Whereas, The low grades which are thus deprived of market con.stitutc 

 over 60 per cent of the total output of the mills : and 



Whereas, It is impossible to operate the mills unless a market can be 

 found for said low grades at a price which will net the mills something 

 nearer the cost of production ; and 



Whereas, Lumber and forest products have heretofore constituted a ver.v 

 considerable portion of the tralBc of roads serving said hardwood terri- 

 tory and have been one of the best revenue-producers for said roads : and 



Whereas, It is essential for the hardwood industry and for the railroads 

 that these lumber rates be reduced so as to permit traiEc to move ; and 



Whereas, Wages and cost of operation in other lines of business have 

 been materially reduced, and with corresponding reduction.s in wages and 

 other costs of operation on the part of the railroads, it would be possible 

 to make such reduction in the present rates as to permit the movement 

 and thereby enable both the hardwood operators and the railroads to 

 continue in'business; and 



Whereas, Such action would not only work to the benefit of the railroads 

 and the millmen but is absolutely essential to conserve the best interests 

 of the employers of both, now, therefore, the premises considered, be it 



Resolved, By members of the Southern Hardwood Traffic Association, 

 whose annual shipments ordinarily exceed 500,000 cars, in meeting assembled, 

 that they instruct officers of said association to take up with the presidents 

 of the principal railroads serving the Southern and Southwestern hardwood 

 territories the conditions herein set forth and that they urge them to Insist 

 that immediate steps be taken to bring about the necessary readjustment. 



Pres. Nickey Opens Meeting 



President Nickey called the meeting to order immediately after 

 luncheon which was served at the Hotel Gayoso. There were more 

 than 300 members of the association present and he extended to all 

 of them a hearty welcome. 



He said, in his annual address, that the association was organized 

 at a time when rate and transportation matters were in a chaotic 

 state but that during the past year the trade had witnessed changes 

 in rates, rules and practices on the part of the carriers that were 

 "revolutionary" in character. "The government returned the 

 railroads to their private owners March 1, 1920," he continued, 

 • ' but, instead of one or two advances, there were 250, with the 

 result that the industry has been seriously 

 handicapped, that rate relationships, built 

 up over a series' of years, have been de- 

 stroyed and that low grade lumber has prac- 

 tically ceased to move. The hardwood 

 industry is in an extremely critical position 

 south of the Ohio river, so far as the move- 

 ment of low-grade forest products is con- 

 cerned." 



As illustrating the handicaps mentioned, 

 Mr. Nickey took Alexandria, La., as a typical 

 southern point, and Wassau, Wis., aa a 

 typical point nearer consuming territory, 

 and showed how much more rates had been 

 advanced from the former than from the 

 latter to consuming territory on the basis 

 of 1,000 feet in carload lots. He said that 

 rates to St. Louis had been advanced to 

 $13.75 from the former as against $10.75 

 from the latter; to Chicago, $18.50 as 

 against $6.50; to Detroit, $20.50 as against 

 $12.75; to Rochester, N. Y., $22.50 as against 

 $15.75; and to New York City, $23.00 as 

 against $17.75. He added, in this connec- 

 tion: 



"I cannot see how hardwood manufac- 

 turers in the southern field can continue to 

 do business on existing freight rates." 



Other Rate Adjustments Needed 



Mr. Niekej' said that the South was dependent on foreign outlets 

 for a considerable percentage of its hardwood output and that, in 

 order for these products to move overseas, two things were neces- 

 sary: lower rates to the porta and lower ocean freight rates. He 

 noted that during the past several years ocean freight rates had 

 been so high that it had been almost impossible to send anything 

 to European markets. 



He also said that southern hardwood manufacturers were very 

 much interested in business on the Pacific coast but that they had 

 very little chance in competition with Japanese oak for the reason 

 that rail rates have been advanced from 60c to $1.06% whereas 

 Japanese manufacturers enjoy low rates from Japanese govern- 

 ment-owned boats and practically have this business to themselves. 

 He expressed, in conclusion, the hope that the United States Ship- 

 ping board would see fit to put in rates by rail and water that 



Memphis, Ten 

 President 



