Lumb ermen Urge Interstate Comm erce Commission to Reduce Rates on Basic Commodities

Washington, May 15.-A dozen representatives of the lumber industry told the Interstate Commerce Commission in the general raihvay rate revision hearings, that thel' favored general reductions as rvell as spe,cific reductions in lumber rates.

Speaking for the National Lumber Manufacturers Association, the regional associations of lumber manufacturers, the National Retail Lumber Dealers Association, and the National-American Wholesale Lumber Association, Wilson Compton, I\{anager of the National Lumber Manufacturers Association submitted extensive information on rvhich is based an appeal for general reductions in the rates on commodities, especially basic commodities; including a reduction of lumber rates which rvill restore them substantially to the levels of 1915 to 1918.

Mr. Compton contended that present rail rates on lurnber are not only higher than traffic r.vill bear, but that the gravity of that situation was aggravated by the lorv rvater transportation rates, which divert traffic from the railrvals and create a ruinous competitive condition between mills accessible to water and the great number of land-lockecl mills. The latter have to meet tl-re prices of the former regardless of ,costs of production, which means abandonment of competitive markets of billions of feet of lumber or operation at a loss.

While lumber prices are now approximately at the level of 1913 transportation costs are more than 5O per cent higher, Mr. Compton said. Present operations are at about 20 per'cent of normal capacity, and more than 60 per cent of the lumber mills are closed. The lumber industry generally has been liquidated to a point not only of obliteration of profits and even of realization from the 'conversion of timber and plants, but also of the gradual and remorseless destruction of its remaining working capital and credit; ancl in many sections of an extreme irnpoverishment of its r'vage scales as the only alternative to complete stoppage of employment. An industry in this condition should not be expected to contribute further to the subsidization of the railway operations. The railroads have been subjected to reduction of revenue by the forced reduction of lumber traffic. In 1923 forest products were 9 per 'cent of all raihvar' freight traffic; now they are but 4 per cent.

In conclusion Mr. ComPton said:

Reduced Rates and Business Recovery

' "M"y we make clear the fact that the lumber industry, however much it is interested in the reduction of lumber freight rates, is much more interested that there shall be also such substantial reductions in the rates applying on other commodities as may be expected to restore the movement of traffic generally. Reduction in lumber rates would, of course, make it easier for the shippers to ship. But it would not help the buyers to buy. What is needed is the opportunity for a general restoration of industrial and com- mer,cial activity, and thus in general purchasing power. This, in our contention, will not be secured without a substantial general reduction in freight rates on basic commodities in reasonable conformity to the changed generat price levels.

"If that is done we expect a substantial improvement in the lumber and forest products industries and in volume of lumber movement from two directions: first, through reduced costs of delivery of products from producer to con, sumer; second, through gradually increased consumer purchasing power.

"Therefore, the lumber industry of the United States as represented by the organizations whose spokesmen now appear before you, asks for a substantial general reduction in freight rates; and specifi,cally as to lumber that the rates be reduced in the same manner as during the past fifteen years they have been increased; that the level of lumber rates be established substantially upon the basis prevailing prior to Jtne 24, 1918; and that r,vhat is done be done promptly.,'

This testimony rvas the subject of extensive cross-examination by rnembers of the Commission and by counsel for tbe railroad companies.

Lumber's Advocates

Other spokesmen for the lumber industry appearing before the Commission were: W. B. Greeley, Secretary, West Coast Lumbermen's Association, Seattle; D. T. Mason, Secretary, Western Pine Association, Portland, Ore.; H. A. Gillis, Western Pine Association; Harry T. Kendall, Weverhaeuser Sales Company, St. Paul, Minn.; A. Larsson, California Redrvood Association, San Francisco; C. C. Sheppard, Southern Pine Association, New Orleans and Southern Cypress Manufacturers Association, Ja,cksonville ; A. L. Osborn, Northern Hemlock & Hardwood Mfrs. Association. Oshkosh, Wis.; R. D. Grubbs,,Lumber Traffic Association, Cincinnati, Ohio; Spencer Baldrvin, President. National Retail Lumber Dealers Association; C. A. New, Associated Cooperage Industries of America & Southern Hdtv. Traffi,c Association; F. P. Dooley, Southern Hard*.ood Traffic Association; E. A. Powell, Associated Cooperage Industries of America.

Mill Will Resume Oper.tions

The Durango Lumber Company, El Salto, Durango, Mexico, rvhose sawmill and box factory were destroyed by fire on April 9 will continue the production of crossties and heavy timber, and other operations will be resumed as soon as the necessary equipment is pur,chased and installed, according to a recent announ,cement. While it is expected that a new box factory will be built, it is understood that the large sawmill rvill not be replaced and for the present the company will operate two or more of their smaller lumber operations.