MOHOAX, PIXK BLUFK, ARK., CIIAIK 

 AN (JLASSIl'-ICATION COMXUTTKE 



lafge perceiitase of manufacturers have felt that the forest products were 

 paying tlielr full share, and in many instances more than their full 

 share of the transportation burden. And still another class felt that, 

 despite the constant friendliness on Its part, it had been the recipient of 

 such extremely shabby treatment by the railroads, that it could not do 

 otherwise than to oppose most vigorously any attempt to advance the 

 lumber rates in which it was interested. In view of this variety of 

 opinions among our people, it was impossible for the committee to put the 

 association positively on record in connection with the rate advance ques- 

 tion. 



Accepting the commission's invitation to hear shippers of specific 

 commodities concerning the matter of this advance, and the commission 

 bavin;: designated February 20, 1914, as the date on which to hear lumber 

 sbippiTs. the committee appeared before the commission, through Its 

 ripresoutatives. Secretary Rhodes, Attorney Gallagher and Mr. McKay. 

 There was also present a delegation from the North Carolina Pino .\sso- 

 ciation. and various representatives of individual shippers of forest prod- 

 ucts not afliliatod with tills association. We presented statements of 

 freight rates, showing comparison of the rates on lumber with rates on 

 other commodities of somewhat similar value, and presenting somewhat 

 similar problems of transportation. These statements are voluminous, 

 and «(• I'rcl di-monstrated, be.vond a question, to the commission that 

 till' .xiviiim iiiii ~ on lumber, all things being considered, are higher than 



on .iii\ (iiiii jiodity. There was much of detail and analysis to be 



^oii. niiM ill rii.hiTig this conclusion, and our witnesses before the com- 

 missi. .n ^t 1 tlir test of examination well and we feel fully convinced 



everyone who heard them of the accuracy of our contention that so far 

 as lumber was concerned it could not be accused of being a favored 

 commodity by the transportation companies. 



I will not take up your time with statistics supporting this proposition. 

 It suffices to say that any manufacturer of lumber can look a railroad 

 squarely in the face, with the full conviction that he is doing his full 

 share towards its support. 



It is only proper to state that the committee, in its representations 

 to the commission, specifically exempted the West Coast Lumber Manu- 

 facturers' .Association and the Pacific Coast Sugar & White Pine Manu- 

 facturers' Association from the representations made. This was for the 

 reason that those associations felt that they were not directly interested 

 in the read.iustment of rates in the territory under consideration, and 

 requested that it be made clear to the commission that any representation 

 made by our committee was not In their interest, or In representation 

 of them. 



In conclusion, your committee submitted to the commission that this 

 association would not oppose a general advance on all rates to the 

 territory under consideration if, after full investigation, the commission. 

 In its wisdom, should feel that this was the proper way in which to 

 secure to the carriers increased net revenue. Your committee further 

 submitted, however, that this association would vigorously oppose any 

 attempt to advance the rates on, lumber, unless, at the same time, there 

 was an equal general advance on all classes and commodities. 



It is of course outside the functions of this committee to prophesy, 

 but it would seem, from the best information we can obtain, that the 

 commission will authorize some of the advances asked for, and that it 

 will refuse to authorize others. It seems quite evident that there will 

 be no general horizontal advance. It would seem reasonable to suppose 

 that, where advances will be made, these advances will generally affect 

 the rates on those articles against which there has been no protest made. 



It developed that many of the proposed advances were not protested 

 against. If the commission follows this policy, we feel that the commit- 

 tee, in filing vigorous general protest against the advancing of lumber 

 rates unless all rates were advanced, has done all that could be done to 

 protect the Industry from further advance in rates, except as part of 

 a general scheme for Increasing railroad earnings, in which all the 

 freight of the country was equally interested. 



Your committee appeared before the commission on the question of the 

 charge for spotting cars, and has filed a brief committing the entire 

 membership strongly to the opposition of this proposition. It was sup- 

 posed, for a while, that the commission had dropped this idea; but it 

 developed, within the past few days, that it has not done so, and that 

 further hearings affecting the matter will be held late in the coming 

 summer. As the committee views it, there is much to be said against 

 this proposed charge, and, from a lumberman's viewpoint, absolutely 

 nothing In favor of It. 



Another important matter of general interest Is a proposition now 

 embodied in a bill before Congress to have the Interstate Commerce Com- 

 mission take over the installation and inspection of track scales. Tliis 

 matter has not advanced to a point where the committee can take any 

 positive action in regard to it ; but It is mentioned here for the purpose 

 of bringing the attention of Individuals to It, in order that the committee 

 may have the advantage of suggestions and advice from any member 

 who feels Inclined to thus favor it. 



There Is an interesting matter before the commission, to which the 

 comrhittee has given some attention, it being the case of the Eastern 

 Spoke & Wheel Manufacturers' Association, in protest against the advance 

 in rates on certain specific articles manufactured from the products o£ 

 the forest. Some of the roads have apparently attempted to take ad- 

 vantage of the Interstate Commerce Commission's suggestion that a re- 

 adjustment of classification of forest products might properly be made ; 

 and of course all such readjustments are with a view of increasing reve- 

 nue. The attempt is being made to raise the classification on spokes, 

 hubs, rims and kindred articles. Increasing the differential against these 

 items over the lumber rates. 



.■\s the committee sees it, the only logical deduction from the premises 

 laid down by the classification people in this contention would lead to 

 a difference In (-ate between No. 1 common boards if SIS, and No. 1 com- 

 mon boards if rough or if S2S. From the lumber manufacturers' stand- 

 point, this seems to be a complete reductio ad absurdu.-n. Nevertheless, 

 It Is a matter that should be carefully watched by your committee, other 

 wise it may be the source of great annoyance, trouble and expense. It 

 Is but a few years ago that some of the roads in Central Freight Asso- 

 ciation territory did actually attempt to inspect lumber shipments of 

 yellow pine from the Southwest, and collect a differential over the lumber 

 rates on such articles as flooring, celling, partition, etc. The fibre box 

 case is now before the commission, everything having been submitted by 

 the contenders to support their views. What further steps could or 

 should be taken in connection with this matter can only be suggested 

 by the opinion of the commission when rendered. This decision is ex- 

 pected at an early date. We desire to submit the following general 

 observations touching the relations of lumber manufacturers to railroads : 



The problems of transportation are among the most vexing and, at 

 the same time, from a financial standpoint, the most Important with 

 which a lumber manufacturer comes in contact. In considering a tract 

 of timber as a manufacturing proposition, one of the first questions the 

 prospective investor asks is this: "What is the outlet?" And when this 



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