FRED \V. MOWBHAY. CIXCIXNATI. 

 DIRECTOR 



STARK. ST. ALBANS, W. VA 

 DIRECTOR 



I.K.NDKL'M. KANSAS I ITV. MO.. 

 DIRECTOR 



introduced iuto Congress h.v Sen.itor Clapp of Minnesota, who is chair- 

 man of the committee of interstate and foreign commerce, at the request 

 of the President, a l)ill designed to expedite the payment of railroad ■ 

 freight claims. The bill provides that shippers maliing claim may pre- 

 sent a notice of the claim in writing to either the initial carrier or to 

 the carrier on whose line the matter complained of actually occurred, 

 or to the carrier at the point of destination. This notice must give a 

 clear description of the property, the name and address of the consignor 

 and consignee, together w'ith the nature of the claim and the amount 

 of damage. The bill i-equires that all such claims he settled within six 

 months after shipment when points inside and outside of the United 

 States, and within ninety days on shipments wholly within the United 

 States and over a single line of railroad. An additional thirty days* 

 time is given for each line of road, the total time not to exceed six 

 months. If any carrier is held liable to a complaint either in the 

 amount of the claim stated in the notice or in an amount exceeding any 

 tender made by the carrier within the time specilied. it shall be liable 

 to the claimant in the same proceeding to a penalt.v of $200 and 

 reasonable attorney's fees, together with the costs and interests, which 

 shall begin to run from the date of the notice. The penalty is not 

 imposed if the claimant docs not recover the full amount claimed in 

 the notice or more than the amount of any tender made by the carrier, 

 though interest runs in all cases; nor is the claimant limited in the 

 recovery of damages to the amount specified in the notice of the 

 claim. 



Tlie act is to take effect immediately upon passage. However, it is 

 quite likely that amendments will be made, and its passage vigorously 

 opposed bj' the railroads, as under present conditlims it gives the 

 carriers access to considerable funds thai, under other arrangements as 

 provided for in the bill, could not be secured wilbouf the payment of 

 interest. 



Another matter of which there has been more or less controversy 

 between the railroads and the shippers is the question of leaving the 

 name of the shipper and point of shipment from the fri'ight bills. 

 According to the present rules of the Interstate Commerce Commission, 

 the railroads are required .to put on the point of shipment, which has 

 been strenuously objected to of late, but can not be avoided. Onr own 

 association has been actively interested in another matter of a similar 

 nature in regard to the shipper obtaining the name of the ultimate 

 consignee. Tlie matter was taken up by one of our members with the 

 Interstate Commerce Commission and the result was a decision unfavor- 

 able to the wholesaler. Not satisfied with this finding, however, and 

 feeling that it was an in.iustice to the wholesale lumber dealer, the 

 matter was taken up again, and upon reconsideration the Interstate 

 Commerce Commission ruled that it is unlawful for the carrier to dis- 

 close the name of the ultimate consignee to the shipper. 



In regard to the matter of estimated weights, our committee feels 

 that some steps should be taken that would result in the recognition 

 of a general standard that would be of value in connection with 

 claims for overweight. Claims that are made and presented to the 

 railroads and based on the average weights are invariably returned 

 with the statement that the carrier can not consistently recognize an 

 estimated weight over the regular scale weight. It is quite likely that 

 in nian.v instances the scales are in error, and where there is a consider- 

 able difference instruction should always be given for the reweighing of 

 the car. If it is lawful to recognize the estimated weight when no scale 

 weight has been taken as decided b.v the Interstate Commerce Commission 

 In their decision of March 4, 1012, as follows; 



Standard oil Company vs. Illinois Terminal Railroad Company — Euel 

 oil switched al St. Louis was not weighed and there was no tariff pro- 



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vision for estimated weights — Fuel oil switched at St. Louis was not 

 weighed and there was no tariff provision for estimated weight of 7.4 

 pounds per gallon. Were vinreasonable to the extent that they exceeded 

 estimated weights provided in tariffs governing the road haul to St. Louis. 

 Reparation awarded. 



there should be some recognition of the estimated weights of Ihmber 

 when the scale weight shows to be considerable greater than the average 

 estimate. The committee has formerly reported in detail the number of 

 cases that were heard before the Interstate Commerce Commission. How- 

 ever, on account of the comprehensive manner in which the numerous 

 lumber trade journals have given attention to this matter, and their 

 very complete reports of the proceedings of that body, there will be no 

 mention made of such sundry matters in this report, and the committee 

 would suggest that if the members will give a little time and read over 

 such items in their trade papers, that they not only become well posted 

 but gain considerable knowledge that will be a direct benefit to them. 

 The committee desires to call attention of the members to the great good 

 which is being accomplished by the lumbermen through the medium of 

 the lumber press, and considerable credit is due the various journals 

 for the interest and attention they are giving to traffic matters of the 

 day. 



Considering matters generally, one of the most important developments 

 affecting the railways this year is the question •of the disparity between 

 the enormous growth of freight tonuage over the facilities of the rail- 

 roads to handle such lncrea.se. "It is estimated by competent railroad 

 statisticians that it will require in the next five years, to maintain 

 railroad facilities equal to the enormous traffic of the country, the 

 immense sum of $8,500,000,0(10, of which $3,300,000,000 would be for 

 additions, increase in taxes anil return on new securities, and $."i,000,- 

 000,000 for the maintenance of the plant, and even this aggregate does 

 not include various items making a still larger total. The question of 

 obtaining the $8,300,000,000 necessary to make railroad facilities equal 

 -to the expanding traffic of the country during the next five years 

 Therefore constitutes the most important problem now confronting busi- 

 ness men." 



In connection with this matter, the following is a resolution adopted 

 on April 4, 1912, by Chamber of Commerce of the state of New York. 

 We would suggest that this association endorse these resolutions : 



Whereas. Traffic has increased so rapidly and railway facilities so 

 slowly since 1907 that a small further enlargement of tonnage would 

 produce a net car shortage and seriously handicap shippers; and 



Whereas, The Hadley Railroad Securities Commission, authorized by 

 Congress, and composed of impartial experts ftf the highest standing, de- 

 clares that "the necessary development of railroad facilities is now en- 

 dangered by the reluctance of Investors to purchase new issues of railroad 

 securities in the amounts required." and the amounts issued since 1007 

 have been totally inadequate to supply the facilities needed ; therefore 

 be it 



RcsoUcd. That the Chamber of Commerce of the state of New York, 

 in the interest of shippers and of the well being of the country as a 

 whole, urge upon the Interstate Ccmunerce Commission and all state rail- 

 way commissions the importance, for the' future, of so carefully weighing 

 and considering the effect to be produced upon the railways in the making 

 of any necessary readiustments ftf freight rates, that the same may be 

 accomplished without further curtailing the total revi'nue of the railways, 

 upon which their borrowing credit depends, bearing in mind, as stated 

 by the Railroad Securities Commission, that "a reasouabb' return is one 

 which under honest accounting and responsible managenii-nt will attract 

 the amount of investors' money needed for the development of our 

 railroad facilities," and also bearing in mind that the development and 

 prosperity of the railroads mean development and prosperity of the 

 country. 



Resolved. That copies of this resolution be sent to (he senators and 

 representatives in Congress from this slate, to members of state railway 

 commissions, and to the members of the lulerslate Commiu-ce I'oinmlsslou. 

 with the request that they give it careful consideration. 



In so far as the members of the association are concerned, the com- 



