Western Lumber Manufacturers Ask Reduction Into Central Freight Association Territory

Seattle, Wash., July 9.-That there is a barrier of freight rates blocking ofi the states of Michigan, Indiana and Ohio, from the free use of lurnber from the Pacific Coast, rvas the contention of Col. W. B. Greeley, secretary-manager of the West Coast I-umbermen's Association, as the first r.vitness before Commissioner Mohundro of the Interstate Commerce Commission at a hearing here today. A reduction of the freight rates from the -\\'est Coasi into C'entral Freight Association territory is being askecl for by the West Coast, and the Western Pine lumber: associations jointly and similar complaints of the California Redrvood and California White ancl Sugar Pine associations are to be heard during the same session of the commission. These reductions, if granted, rvould amount to from 8rl to l0 cents per 100 pounds or from $2.25 to $2.50 per thousand Ieet.

As evidence of the restriction to the free florv of West Coast lumber into the inclicatecl Central States Colonel Greeley offered a map in eviclence showing that but 27 per cent of the total softrvoocl consumption of Michigan, Indiana and Ohio was secured from the West Coast, rvhile in the North Atlantic states the percentage of West Coast woods consumed rvas 35 per cent and in the five central states west and north of the Indiana line-Illinois, I\fissouri, Iowa, Wisconsin and N{innesota-West Coast lumber totaled 40 per cent of the amount used. The large percentage along the North Atlantic coast rvas stated by Colonel Greeley*to be the result of r.t'ater shipments through the Panama Canal.

Speaking of the Central Freight Association district, Greeley said: l'The West Coast lumber industry needs market expansion in this important consrrming territory. Its products nolv move with relative freedom into the various groups of states indicatecl west of the Indiana-Illinois line. They also move freely lty rvater to the Atla.ntic Coast and by rail shipments therefrom into much of New England, New Jersey, eastern Nerv York, and eastern Pennsylvania, We believe that the existing freight rates which restrict this movement into the Central Freight Association territory, as demonstrated by the figures cited, discriminate againit western lumber manufactnrers and place an unrvarranted hardship upon their inrlustry.

"Furthermore, we believe that they are prejuclicial to consumers of softrvoocl lumlter in this territory in denying them the opportunity for normal competition in lumber sup- ply from different producing regions. We believe that lorver freight rates are required by the principle of competitive rate making and a broad economic conception o{ a rate structure that will enable commoclities to mbve freely from major proclucing regions to major consuming territories.

"At least 70 per cent of the output of West Coast sarvmills is of the common grades of boards, dimension and timbers, shippecl at rveights ranging from 2500 pouncls to 3.500 pounds to the thousand board-feet. In onlrr a limited portion of our rail territory it is possible to market the bulk of this class of material at prices returning its cost of prorluction.

"Broadly speaking, east of Minnesota and Iowa, the freight cost equals or exceeds the mill pric,es on the better grades of common, and in much of the territory west of this line -the freight cost equals or exceeds the mltt prices on the lorver grades of common. Existing freight r:ates into the Central States to a substantial degrle exclucle the mar- keting of our common lumber grades in that territorv and prevent the competitive merchandising of West Coasi lumber in relation to similar lumber produced in other manu- facturing districts."

The effect of these freight rate barriers, Greeley stated. u'as to prevent the West Coast lumber industry from mak(Continued on page 50.)

This view of a corner of thc Library in thc residencc of Mr. E. E. Paxton at Piedmont, California, emphasizes the natural graciousness of interiors done in Redwood. Likc thc historic "pine room" of C,olonial days they mellow with age and retain for all time a tnrly distinguished and homey aunosphcre. Architecnral Woodwork by Loop Lumber & Mill Company, Alameda, California. Architect, Clarence A. Tantau, San Francisco.