No Freight Increase on M.iority of Lumber ltems

Washington, D. C., April l.-With but few exceptions, lumber, logs, shingles and other forest produ'cts were exempted from emergency in'creases in freight rates in a decision handed down by the Interstate Commerce Commission in the matter of the application of the railroads for increases averaging about 10/o, known as "Ex Parte 115."

Mexican pine and Canadian woods in general are included in the exemption. A1l other imported woods, however, together with butternut, cherry, dogwood, holly, ironwood, lancewood, Spanish'cedar, and walnut, whether domestic or imported, are not included in the exemption and will be subject to an authorization to the carriers to assess an emergency increase of. 7% of existing rates on all linehaul cdrload shipments, with a maximum of 4c per hundred pounds, up to the end of June, 1936.

, The Commission's opinion noted that "the decline in revenue freight tonnage of class I railroads since 1929 has been substantially greater in the case of most forest products than of all freight", and that "the unprecedented stagnation of building and,certain other wood-consuming operations during the depression accounted for a large part of the greater decline in tonnage of these articles."

The desire of the industrlr to cooperate with the FHA is noted. "Both the applicants and the lumber industry", says the opinion, "obviously would profit by revival of building operations, particularly residential construction. In July, 1934, the lumber industry, in co-operation with the Federal Housing Administration, reduced lumber prices a.pproximately 8 per cent with a view to stimulating the use of lumber and lumber articles." It is then noted that the proposed in,creased rates, especially on common lumber, "would tend to impede the movement of these commodities and result in less rather than greater revenues to applicants".

The opinion gives $22.43 as the average f.o.b. mill price per thousand feet of lumber for the entire country during the first six months of. 1934. Bureau of Census figures are quoted to show an average of $18.28 for 1933, $15.12 in 1932, and $18.56 in 1931, with the average price during the preceding eight years ranging f.rom $22.81in 1930 to $31.78 in L923. "At the present level of prices rail rates now represent a greater proportion of the mill or delivered prices than did such rates in their relation to mill or delivered pri'ces for a number of years prior to 1930." The opinion adds that "the proposed increased rates would increase that proportion". It is also pointed out that. "as the railroads are heavy consumers for forest products, increases in carrying charges for certain railroads will increase the operating costs of others."

The case for lumber was presented before the Commission by the National Lumber Manufacturers Association in cooperation with the regional associations.

R. C. Fulbright, J. V. Norman, and John C. White appeared as counsel for the lumbermen.