F. R. GADD. CHUA(KJ. MEMBER COMMIT- 

 TEE TO REPRESENT LTMBER IN I!A I IN- 

 ROAD COXFEKEXCES WfcST OF THE MIS- 

 SISJSIPPI. 



U. I,. M(CI.ELLAX1>, CHICAGO, MEMBER 

 COMMITTEE TO REPRESENT LUMBER IN 

 RAli.ROAI) CONFERENCES WEST OF THE 

 MISSISSIPPI. 



\V. I.. WELLFORIi, MEMPHIS, MEMBER 

 ('(JMMITTEE TO REPRESENT LI'.MKER IN 

 RAIEROAI) CONFERENCES WEST OF THE 

 MISSISSIPPI. 



The speaker objected to that method, as being bad for the shipper 

 and also for the railroads. It should suggest itself to a business 

 man that the right policy would be to get more business, haul bigger 

 loads longer distances, and make money from the volume of moving 

 freight rather than from the volume of charge made on small 

 movements. The railroads ought to recognize the fact that they 

 oannot injure the shipper without injuring themselves. They should 

 further recognize the fact that the good will of the shipper is one 

 of the most valuable assets a railroad can have. 



Apparently, lumber has been singled out from among other large 

 freight-paying commodities for special rates — not low but high. 

 Yet it furnishes business the year round ; cars are loaded heavily 

 and compactly, and it is a desirable commodity to move. It can be 

 loaded in any class of equipment ; is not perishable ; the average haul 

 is long; and there is a mininuim risk in hauling and minimum dam- 

 age to the equipment. 



The law of diminishing returns applies to the relation between 

 rates and revenues. Beyond a certain limit, advances in rates do not 

 mean increased revenue, but on the contrary a decrease. Higher 

 rates mean loss of tonnage. Have the railroads conducted any scien- 

 tific studies to arrive at a level of rates which will produce the great- 

 est possible volume of tonnage with the greatest possible net returns? 

 We maintain that in connection with gum lumber especially such a 

 balance would be found in rates nmch lower than present levels. 

 The policy of increasing rates on forest products if carried to its 

 •conclusion will work as much harm on the railroads as on the lum- 

 bermen. An increased rate, by decreasing revenue as we have 

 shown, will create demand for more revenue resulting in still higher 

 rates which will still further reduce revenues. 



Co-operation 



Earl Palmer of Paducah, Ky., talked »n the subject of co-operation. 

 His thoughts as expressed are outlined in the following paragraph: 



The central idea of Mr. Palmer's address was that it is now time 

 to pull together instead of flying ajiart. He was referring to the 

 railroads and the liunbermen in the South. He said that for many 

 years the lumbermen in the territory covered by the Southern Hard- 

 wood Traffic Association have been as contentious a body of shippers 

 as could be found anywhere. They liave always wanted something, 

 have not been backward in making their desires known, have never, 

 when necessary so to do, hesitated to invoke the assistance of the 

 Interstate Commerce Commission or of the courts to obtain what 

 they believeil to be their rights, and usually they have been success- 

 ful. But now, after viewing the many conflict* of the past, they 

 Jire in a measure dissatisfied with the methods employed and with 



the results attained. A perj)etual condition of warfare between 

 themselves and the carriers no longer appeals to them and they 

 believe that the ends sought can be arrived at by the adoption of 

 less wasteful and more modern methods. That is why we are here 

 today; to develop a new idea and make that idea effective. 



Individual effort is being submerged in mass activity. There is a 

 steady confluence of interests which, heretofore, have been competi- 

 ti%'e and conflicting. The lumbermen have learned through years of 

 associated endeavor that mass effort is more efficient than individual 

 effort. They no longer regard their fellows in trade with appre- 

 hension and distrust. The question proper for this meeting to 

 consider is, whether a circle of co-operative enileavor maj' lie ex- 

 panded to inclutle two separate ami ilistinct industries, each of 

 which, however, being complementary and adjunctive to the other. 

 He believes in this iustnce such expansion is practical and desirable. 

 To the lumbermen the railroads are an absolute necessity ; and, in 

 the territory encompassed by the Southern Hardwood Traffic Asso- 

 ciation, the lumbermen are an absolute necessity to those railroads 

 whose lines traverse that territory, until the wild lands are developed 

 and the agriculturist supersedes the lumberman as a producer of 

 tonnage. Therefore, it is a perfectly logical conclusion that these 

 two industries should co-operate one with the other for the promotion 

 of every object that will lead to mutual benefit. 



Pritchard Talks on Gum 



Secretary Pritchard of the Gum Lumber Manufacturers' Associa- 

 tion, Memphis, presented some facts and figures which dealt 

 with the sturapage and with the transportation problem. He pointed 

 out the difference between stiffling the industry by liigh freight rates 

 and developing it by moderate rates and by other means of encour- 

 agement. The latter policy would bring more revenue to the rail- 

 roads and more lumber to the operators; because, as the speaker 

 stated, less than twenty-five per cent of the gum stand can be manu- 

 factured at a jirofit under existing conditions. If freight rates and 

 transportation facilities could be maile such as to enable the operator 

 to cut and market all the gum on his land, the result shown in the 

 following statement of possibilities would follow: 



Fift.v WIMciii feet of standlnR Kuni tlnilicr, allowing 20 per cent for 

 waste, would produce fort.v billion tfet nf lumber. 



Fort.v billion feet of lumber. nllc)wlng l.i.OOO feet per car, equals 

 2,(166,066 iniloads. 



2,666.RH6 cars at an average haul of 2i)c per cwt. equals $240,000,000. 



Twenty hilllon feet manufactured under present conditions, being 40 

 per cent of the total stand, equals l,:i;t3,:j.3.1 cars. 



1.3;«,33:> cars at an average haul of 20c (?99 per ear) eqnals 

 ?120.000.0oo. , . 



Possihllitv for Increased revenue. 1 .:t,3,1,.ri.T cars, or 1120,000,000. 



—23— 



