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J Present Testimony at Memphis 



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The railroads consumed all of the four days allotted for the hear- 

 ing at Memphis, Jan. 13-16, inclusive, before Special Examiner Wat- 

 kins of the Interstate Commerce Commission, in the case involving 

 proposed advances of eighteen to forty per cent on Cottonwood, oak 

 and gum from points in the Mississippi valley states to Ohio river 

 crossings. Forty-seven roads were represented by twenty-six attor- 

 neys, freight traflSc managers and rate exports, while the Southern 

 Hardwood Traffic Association and other contesting organizations were 

 represented by about twenty attorneys, their traffic managers and a 

 number of individual lumbermen. 



Joe Hattendorf, general freight agent of the Illinois Central, was 

 the star witness for the carriers. He occupied the stand for nearly 

 two days and, in addition to giving a vast amount of verbal testimony, 

 filed about twenty exhibits. His arguments in favor of the higher 

 rates, which have been suspended by the commission pending this 

 hearing, may be briefly summarized as follows: 



First. — That the railroads are seeking to increase the rates on lum- 

 ber in compliance with recent rulings by the Interstate Commerce 

 Commission directing the carriers to adjust their rates to Ohio river 

 crossings. 



Second. — That the proposed increased rates are not so high as lum- 

 ber rates in other timber-producing sections of the country. 



TaiiiD. — That the proposed increased rates are no higher than lumber 

 rates in other timber-producing sections which have already been sus- 

 tained as reasonable by the Interstate Commerce Commission. 



He also laid much stress on the ' ' pet argument ' ' of the carriers that 

 the rates established on lumber some years ago were for the purpose 

 of fostering this infant industry in the southern states and that, since 

 the lumber business had grown to a point where it could stand on its 

 own merits, the carriers were entitled to share in the prosperity which 

 the lumber people were enjoying. He also said that there had been 

 a decided increase in the cost of railroad operation and that this 

 was another reason for increased revenue. He attempted to show that 

 most of the standing timber in the southern states was owned 

 by a small group of lumber interests and he likewise emphasized the 

 fact that Cottonwood and gum, under the present loading system, 

 with particular reference to weights, were rather undesirable traflSe 

 for the carriers, especially at prevailing rates. 



Mr. Hattendorf, under cross examination, declared that the IlUnois 

 Central liad no idea whatever of withdrawing the present increased 

 rates and further that his company did not intend to make any re- 

 ductions. He admitted that about one-half of the lumber tonnage 

 handled by his road moved through Ohio river crossings. Luther 

 Walter, attorney for the lumber interests, asked Mr. Hattendorf if 

 he could furnish a report showing the lumber tonnage on his line to 

 Ohio river crossings. Attorney Risey, for the Illinois Central, and 

 attorneys for various other lines, strenuously objected to the compila- 

 tion of such a vast amount of data but Examiner Watkins said he 

 saw no reason why such reports should not be prepared if they did 

 not involve too much work. 



Charles Barbara, general freight agent of the Nashville, Chat- 

 tanooga & St. Louis, said that the proposed rates on lumber originat- 

 ing on that road and passing through Ohio river crossings were fair 

 and just. He compared these rates with those made by the Chesa- 

 peake & Ohio and Norfolk & Western and said that, while the foriner 

 were somewhat higlier than the latter, this condition was justified 

 by the better financial condition of the two other roads as compared 

 with the Nashville, Chattanooga & St. Louis. He also thought that 

 the density of traffic handled by these two roads as compared with 

 the Nashville, Chattanooga & St. Louis entitled the latter to some 

 consideration. He was quite emphatic in the declaration that his 

 road could not stand any reduction on class or commodity freight 

 handled over its lines because expenses had increased while net 

 revenues had decreased. 



D. M. Goodwyn, general freight agent of the LouisvUle & Nash- 

 ville, filed a number of exhibits. He also reiterated what Mr. Hat- 

 tendorf had said about rates on hardwood from southern points being 

 •heaper than those from other timber producing sections, and de- 



clared that the proposed advance in rates would increase the revenues 

 of his road about $25,000. He asserted that, owing to the conditions 

 following the outbreak of the war in Europe, the Louisville & Nash- 

 ville was not making a reasonable profit on its investment. 



Perhajis tlie most novel testimony was that of W. K. Vandiver 

 St. Louis, assistant general freight agent, for the Mobile & Ohio. 

 He declared that the Yazoo & Mississippi Valley and Illinois Central 

 had made the lowest rates in the Mississippi valley to be found any- 

 where in the United States and that his road had had to follow to 

 meet this competition. He pleaded also the necessity of increased 

 revenues. 



J. D. Watson, assistant freight traffic manager of the St. Louis 

 & Southwestern Railway, declared Saturday morning, the last day 

 of the hearing at Memphis, that prices for hardwood lumber produced 

 in southwestern states had advanced materially since the west side 

 carriers established a low freight rate to foster the infant industry 

 and that rates on lumber had not been increased in the mean- 

 time. He said that southern hardwoods could not be sold to 

 advantage in the earlier stages of the industry because of the pre- 

 judice against them and that the carriers put in the lower rates in 

 order to help them find a market therefor. He did not believe it 

 was right, however, that the product, which the roads had helped so 

 materially to increase, should fail to give the carriers increased 

 compensation in the form of higher rates. Mr. Watson did not 

 complete his testimony Saturday but it was resumed in Louisville 

 Tuesday. 



Special Examiner Watkins and attorneys representing both the 

 railroads and lumber interests left Memphis Saturday evening for 

 Birmingham. Pine interests were given an opportunity Monday 

 to present their testimony there against the proposed advances from 

 southern points to Ohio river crossings. 



J. H. Townshend, general manager of the Southern Hardwood 

 Traffic Association, left Memphis Monday evening for Louisville 

 where the railroads on Tuesday begin the final lap in their testimony. 



Lumber interests will have their inning in St. Louis next week and 

 they will be there in full force. J. H. Townshend, general manager of 

 the Southern Hardwood Traffic Association, J. R. Walker and Luther- 

 M. Walter, attorneys for the same organization, and representatives of 

 the various bodies co-operating with this association, and a number 

 of traffic experts and individual lumbermen will be present. The. 

 real struggle, so far as the lumber interests are concerned, will begin, 

 at St. Louis. Memphis will send the following delegation to that 

 city with such additions as may be found desirable: James E. Starke,. 

 James E. Starke & Co., Geo. D. Burgess, Russe & Burgess, Inc., Jno. 

 W. McClure, president of the Southern Hardwood Traffic Association, 

 T. E. Sledge, traffic manager for May Brothers, Geo. Land, traffic 

 manager for the Lamb-Fish Lumber Company, and W. B. Burke, 

 vice-president and general manager of that company. 



The Southern Hardwood Tratfie Association and all the lumber 

 organizations which are co-operating with that body have made 

 unusual preparations for this fight which is regarded as the most 

 far-reaching ever undertaken by them. Limiber interests here be- 

 lieve that these organizations will give a good account of themselvesi 

 and very little uneasiness is felt regarding the outcome. 



It is reported that there is a big market in Hawaii for box 

 shooks for packing canned pineapple and pineapple juice. 



During the past two years forest officers have killed nearly 

 9,000 predatory animals, more than three-fourths of which were 

 coyotes. 



The arboretum established at Washington in Rock Creek park, 

 through co-operation between the Forest Service and the District 

 of Columbia, now contains 1,200 trees, comprising ninety-two 

 different species. 



•^31—. 



