HARDWOOD RECORD 



21 



"true southern hospitality" will prevail at the Kentucky metropolis 

 during this convention. 



Both the Monon and Pennsylvania companies are after the privi- 

 lege of carrying the delegates from Chicago, the North and North- 

 east to the meeting, and both will give exceptional service. The 

 Monon has arranged to give the visitors a special train of Pullmans 

 leaving the Polk street Station at 9 p. m. on the evening of June 8. 



Unique Belt Line Project 



A matter of no little interest to the lumber trade of Chicago is 

 s proposed consolidation of the sundry belt lines now being operated 

 by independent companies and by railroads in the Chicago district. 

 Railroad interests of this city are considering the organization of a 

 $100,000,000 corporation for the purpose of consolidating under one 

 ownership and management all the belt railroads, and all the so- 

 ealled industrial railroads in and about Chicago. , 



The plan is epitomized in the following paragraphs: 



To secure the transfer of freight cars between railroads and to 

 and from Industries on terminal lines by the most direct routes, 

 with the greatest facility and at the least possible expense. 



The equalization of the cost of such transfers, so that all parties 

 to the operating agreement can have freight cars delivered to every 

 other railroad and to every Industry on the terminal lines at the 

 same cost per car. 



To reduce to a minimum the cost of track elevation by selecting 

 for elevation such tracks within the city limits as are essential for 

 the efficient operation of the terminal company and discontinuing 

 the operation of any tracks which are not so essential and the 

 elevation of which Is demanded by the city. 



The material reduction in the amount of switching now required 

 to be done by the different railroad companies on their own tracks 

 in Chicago, by doing as much of the work as possible in the 

 "hump" yards of the terminal company and delivering the cars to 

 each company in full trains. 



To accomplish all these results without requiring the expenditure 

 of any capital funds by any stockholding company, except to the 

 extent of the par amount of the stock to be subscribed by each 

 company, which will not, it is thought, exceed $100,000. 



This is an accomplishment that should be of no inconsiderable 

 ▼alue to every hardwood shipper and receiver in the Chicago district, 

 and it is hoped that the plan may be effectively carried out. 



Prevailing Hardwood Prices 



E. S. Kellogg, secretarj- of the Northern Hemlock & Hardwood 

 Manufacturers' Association, with headquarters at Wausau, Wis., 

 under date of May 17, reports recent range of values on hardwoods, 

 compiled from actual transaction, as follows: 



No. 2 Common and better ash, $24.63 ; ; No. 3 Common, $9.50. 



No. 2 Common and better basswood, $25.50; Firsts and Seconds, 

 *39; No. 1 Common, $29; No. 2 Common, $15.75; No. 3 Common, 

 $12.17. 



No. 2 Common and better birch, $21.07; Firsts and Seconds, $35; 

 No. 1 Common, $19.25; No. 2 Common, $11; No. 3 Common, $8.14. 



No. 2 Common and better butternut, $23. 



No. 2 Common and better rock elm, 1", $24; 1%", $23.75; 1%", 

 (23.75; 2", $32.50; No. 1 Common, $25; No. 3 Common, $12. 



No. 2 Common and better soft elm, $19.25; No. 3 Common, $10.33. 



No. 2 Common and better maple, $15.75; No. 3 Common, $6.50. 



No. 2 Common and better red oak, $31.25; firsts and seconds, $62; 

 No. 3 Common, $9. 



No. 3 Common white oak, $8.50. 



Fight Proposed Rate Advance 



Three hundred of the largest shippers of the country, representing 

 upwards of 150 trade associations and similar botlies, met on May 

 17 and 18 at the Auditorium Hotel, Chicago, to lay out a plan for 

 soncerted action in opposition to the much-heralded advance in freight 

 rates in territory between the Mississippi river and the Atlantic 

 :oast, north of the Ohio. The meeting was full of heated discussion, 

 ind will very likely result in drastic action in the near future. 



The first intimation that there would be an increase came in the 

 form of a notice from the Trunk Lines Association, announcing an 

 idvance to go into effect June 1, and similar notices soon issued from 

 he offices of adjacent lines, effective September 1. 



It is proposed by the railroads to advance the regular sixth class 

 freight rate eight per cent higher than rates which now prevail, and 

 on the first three classes the advance will .be as much as twenty per 

 cent, the addition on other commodities being in proportion. This 

 means that the railroads will realize a total additional revenue of 

 over $100,000,000, which must come from the pockets of the various 

 manufacturers and shippers. 



The railroads have attempted to maintain that the ^dvance was 

 justified by the increased cost of operation, stating that the increase 

 in the cost of labor was more than sufficient to make up for the 

 advance in freight rates. Tlis contention was vigorously assailed by 

 various speakers on the convention floor, who produced figures to 

 show that the railroads now have a smaller outlay for aU classes of 

 supplies than they had three years ago, and that the actual records 

 of the various roads show, instead of a decrease from month to 

 month in the net earnings, a very substantial increase. In view of 

 these facts there seems to be no justification for the threatened action. 



In order to expedite the business before the meeting, the first 

 action taken was to appoint a committee on resolutions, which com- 

 mittee, after brief adjournment, submitted the following: 



Resolved, That this convention demands that the carriers in official 

 classification territory suspend the proposed advance in class and 

 commodity rates and submit the question to the Interstate Commerce 

 Commission for arbitration to determine from the facts whether any 

 general advance in rates is reasonable or necessary ; and be it further 



Resolved, That pending and during such arbitration we oppose the 

 general advance in rates as proposed by the lines in said territory, 

 and be it further 



Resolved, That a committee of fifteen be appointed by the chair to 

 carry into effect this plan of arbitration. Failing in such conciliatory 

 methods, said committee is empowered to take such action as will, 

 in its judgment, prevent the proposed general advance in freight rates. 

 In order to meet the expenses of the campaign the members voted 

 that a fund of $50,000 be raised by levying a tax approximating forty 

 cents per capita on the membership of all commercial bodies doing 

 business in the territory affected. To get action along the desired 

 lines in as expeditious a manner as possible, the chair appointed a 

 committee of seventeen to carry on the actual campaign. 



Following the appointment of the committee there was an 

 exhaustive discussion of the last paragraph of the resolutions, which 

 clearly brought out the intended meaning. The shippers have 

 expressed their intention, in the event of the railroads not suspending 

 the advance until their action is passed upon by the Interstate Com- 

 merce Commission, to make use of the injunction power in every 

 federal court holding jurisdiction over any part of the territory in 

 question, and thus hold up the action of the railroads. This will 

 mean that the shippers must produce a large sum for bonds, but they 

 unanimously declared their determiuation to stand together and to 

 meet any expenses that would necessarily have to be levied. 



During the discussion one of the members made the startling state- 

 ment that at one time or another every man present at the meeting 

 had accepted rebates from one or another of the various railroads. 

 He frankly confessed to have enjoyed such assistance himself, stat- 

 ing that the sum he had received was of large proportion, the exact 

 amount of which he could not recall. The point the speaker wished 

 to make was that now, since the granting of rebates has been declared 

 unlawful, he was anxious to ascertain where the increased revenue 

 which the railroads must necessarily enjoy is to be found, and why 

 this additional source of profit should not materially assist in keeping 

 down the general freight charges. 



In looking back it will be remembered that two years ago upon the 

 railro.id's threatened advance of ten per cent in general rates a 

 meeting in Chicago similar to the meeting of last week, backed by 

 public sentiment, successfully fought the efforts of the road. It 

 seems probable that the action of the meeting, in this instance, will 

 result in even more effectually checking the high-handed methods 

 engaged in by the common carriers, the more so because of the 

 awakened public sentiment against the lawless methods now being 

 used by the various large corporations. 



