18 



HARDWOOD RECORD 



low grades wouM not be shut out of markets because of prohibitive 

 rates; there should be less discrimination against lumber and in 

 favor of other commodities, some of which compete with lumber; 

 and there should be a better spirit of cooperation between shippers 

 and transportation companies in an effort to live and let live. The 

 following is a summary of his address: 



A rate can be a very low rate, still be a bad rate for a shipper; and 

 a rate can be of itself a pretty high rate and still be so adjusted 

 that traffic can freely move under it and therefore be a good rate from 

 the shippers' .standpoint. If rates are so adjusted that traffic does not 

 move freel.v under them they are bad rates from a railroad standpoint, 

 no matter how high they may be. It is therefore essential not only 

 from the shippers' standpoint, but from the standpoint of the railroads, 

 that the shippers talce a !<een and intelligent interest in the adjustment. 



The transportation companies never consult the shippers in an effort 

 to adjust rates satisfactorily to all concerned. It is true that the in- 

 terests of the two parties are largely antagonistic, in tbat the carrier 

 wants to get as much as he can for the service, while the shipper wishes 

 to obtain the service at as low a price as possible ; but still there are 

 many points worth talking over. 



The adjustment of a freight rate js not necessarily merely the ques- 

 tion of talting money away from the railroads. It may be possible that 

 you should pay the same as you have always pal<i, but that the man 

 you are competing with should pay more. Possibly your competitor 

 should pay more and you pay less. It may even be possible by a re- 

 duction in freight rates to materially increase the income of the carriers 

 by increasing traffic, but all these matters are properly the subject of 

 negotiations and cooperation between the shippers and the carriers. 



There is no lacic of disjiosition on the part of the shipping interest 

 to cooperate with the carriers, and they will favoral>ly respond if given 

 practical opportunity. There is, however, i)ronounced opposition to being 

 confronted with changed rates, the first notice of which comes in the 

 form of a legally filed tariff, and then be expected to blandly approve the 

 same. That is "taxation without representation" and out of harmony 

 with the American spirit of fair play, .\slde from any sentiment In 

 the case, schedules so made u|) are generally so burdened with inequalities 

 that shippers have substantia! grounds for objecting, and would be 

 remiss in their own affairs if they did not object. 



The lumber industry produces more trattic than any other, except 

 coal. How often does tlie railroad traffic manager invite the lumberman 

 to confer with him on ways and means of arranging rates or service 

 so as to enable you to best secure your raw material and dispose of your 

 finished product? 



DiSCRIHINATINO AOAINST Ll'MBER 



The general commodity "lumber" Is a low-grade freight, loads heavily, 

 <^n be transported in any sort of equipment, doi-s not require expedited 

 •services, moves steadily throughout the year, and in large volume, is 

 not susceptible to damage, and should consequently take relatively low 

 rates. Instead, lumber now takes relatively high rates. 



Take the Northwestern system, which largely serves Wisconsin, as an 

 fexample. The average revenue per car per mile for lumber for the 

 year 1911 was approximately 17 cents. The average revenue per car 

 per mile of all freight (which Includes less than carload freight and 

 perishable freight of all kinds) was 14 cents, so that lumber paid 21 

 per cent greater revenue per oar per mile tban all freight. 



Grain is in the nature of a perishable conmiodity, requires particularly 

 good equipment, necessitates the payment by the carriers annually of 

 large sums for loss in transit, delay in reaching .specified markets, al- 

 lowances for cooperage of cars, expenditures for grain doors, etc. Still 

 the average receipts per ton per mile throughout the I'nited States for 

 1911 on grain was G.2 mills, on lumber 7 mills. 



In the eastern live per cent case the commission reports that the 

 average net revenue per loaded car jjer mile received on -hemlock lumber 

 was 28 cents, oak lumber 16 cents, pine lumber 14 cents, as compared 

 with, for Instances, petroleum products 10 cents, sugar 10 cents, agri- 

 cultural implements 10 cents, dressed meat 10 cents, cattle i; cents, etc. 



Since 1886 the average freight rate throughout the country has been 

 reduced 20 per cent. The average freight revenue per ton per mile in 

 1886 was a little over 1 cent — in I'.lll 7 '4 mills. The Jumber rates from 

 Wisconsin and Minnesota territory not only have not been reduced, but 

 in many Instances materially advanced over the rates that were actually 

 charged and collected by the railroads in 1886, and this notwithstanding 

 that the loading per car has doubled. 



Instances of discrimination against lumber In rates might be multi- 

 plied until tbey include many commodities, some of which, like cement, 

 are direct competitors of Itiraber. 



UlFKEKKNT LUMBKK RATES NEEDED 



One of the hardest problems facing the lumberman is that of dis- 

 posing of his common lumber and this to a large measure Is occasioned 

 by the Improper adjustment of freight rates, because common lumber 

 will not readily move under rates that can and do move the higher 

 grades. For this reason, with most mills common lumber Instead of 

 being a live asset, becomes a drug on the market. 



It Is to the Interest of the transportation companies to produce traffic, 

 and In no way can as much new traffic be readily created as by an ad- 



justment of freight rates that will permit the easy movement of common 

 lumber. 



The suggestion to accomplish this contemplates splitting up the lumber 

 classification and establishing one basis of rates on the higher grades 

 of lumber, with a lower basis on the commons. 



Such a scheme is no innovation, and for it there is plenty of precedence, 

 both in lumber carrying and in other commodities. 



Between points in Canada for years the Canadian Pacific and Great 

 Northern railways carried different rates on different grades of cedar 

 lumber. The rate from the coast to Winnipeg on No. 1 and clear cedar 

 was 50 cents, the rate on common cedar lumber 40 cents. 



Many railroads In the West have for years carried rates between 

 various points on box lumber, based approximately SO per cent of the 

 regular lumber rates. 



From the Pacific coast the fir lumber rate is materially lower than 

 the cedar lumber rate. 



In the South different rates are carried on different kinds of lumber, 

 as, for instance, different rates on cypress and gum, pine and hardwood, 

 yellow pine and cypress, and in some instances, different rates on oak 

 hardwood than on other kinds of hardwood. 



Numerous other instances illustrating that point could be cited as 

 precedents for making better rates on our low-grade lumber. 



Mr. Chapman asked Mr. Dahlberg to outline the proposition he 

 indirectly suggested regarding co-operation between Mr. Dahlberg's 

 traffic service bureau and the association. It was moved and the 

 motion carried that it was the consensus of the meeting that the 

 new railroad committee should consider the proposition suggested by 

 Mr. Dahlberg and that this service would be of benefit to the asso- 

 ciation. 



Standardizing Safety Appliances 



C. W. Price of the industrial commission at Madison, told briefly of 

 the work being performed by his commission in standardizing safety 

 appliances. He said logging roads are not under the railroad commis- 

 sion, and thus come under the scope of the industrial commission 

 work, and that that commission desires to work out standards of 

 safety satisfactory to the mill owners. He suggested that a com- 

 mittee meet with tlie commission to take up such (juestions as auto- 

 matic couplers and safety stakes. He also stated that the commis- 

 sion is not interested in anytliing not in line with present good 

 jiractice with practical operations. 



Edward Hines of Chicago, in commenting on Mr. Chapman's mo- 

 tion on the Dahlberg proposition, sui)ported it emphatically and said 

 that when he was president of the National Lumber Manufacturers' 

 Association that organization had expert traffic advice and found 

 rates on lumber higher than on all substitutes, thus giving to them 

 an undue advantage in the fight for markets. He maintained that 

 it is a mistake that the association officers in all associations do not 

 have more money at their disposal to carry out legitimate and highly 

 efficient plans, as instanced by the freight rate fight and the general 

 contest between substitutes and lumber. 



The question was raised as to the propriety of the Wisconsin asso- 

 ciation carrying on any general camjiaign in the interest of lumber, 

 considering the position of the National Lumber Manufacturers' 

 Association on this question. 



Timberland Assessments 



An address by W. A. Holt of Ocouto, Wis., considered the sub- 

 ject of taxation from the lumberman's or timber owner's standpoint. 

 He cited cases where taxes were placed so high that they amounted 

 to confiscation. Timber was assessed at stumpage values absolutely 

 beyontl the reach of any buyer. In some instances if the timber were 

 sawed into lumber it would scarcely sell for as much as the assessor 

 laid on the standing trees. Figures showing assessment of acreage 

 were quoted, where the land would not sell for half of its assessed 

 value. When taxes under such excessive assessments are collected on 

 timber, it is impossible for the owner to retain his prosperity without 

 losing so heavily that he is compelled, in self protection, to sacrifice 

 hLs timber, and let his land fall delinquent for non-payment of taxes. 

 A remedy is needed. The speaker declared that a partial remedy at 

 least would result if the assessing and levying were done with more 

 business judgment and with less desire to hit the men who are trying 

 to carry on the country's industries. At an_v rate, taxation ought to 

 stop somewhere short of confiscation. 



In commenting on the deplorable conditions existing in tiuiation 

 methods of the various counties of the state, Mr. Holt cited one 



