The Minneapolis journal., 1901-08-16
COAST LUMBERMEN
ARE TURNED DOWN
President Hill Declines to Grant Their Request
for Lower Rates, Permitting Invasion
of White Pine Territory.
Community of Interest Helps to Head Off the
Raid Planned by the Lumbermen of
the Pacific Coast,

James ]. Hill, president of the Great
Northern, has refused to grant the request
of the Pacific coast lumbermen for lower
rates for their product.
Manufacturers of white pine lumber
were just as sanguine that the Pacific
coast lumbermen would not obtain the re-
duction in rates to the Missouri river,
the Mississippi river, and Chicago, for
which they asked, as the west coast lum
bermen were of securing it.
While the west coast men talk Of going
after the eastern trade on a reduced rate
to Chicago, the Minneapolis and all other
white pine manufacturers say that the
main object Of the west coast men is to
cut into the trade of the Dakotas, Nebras-
ka Kansas, Iowa, Missouri and Oklahoma.
Those states are now the choice territory
for all of the manufacturers west of Chi
cagO. The trade of the next ten years in
those states will be tremendous. They
constitute the largest battle ground of the
| lumber barons of the west On most
grades Of lumber the contest for business
!
for which trade Minneapolis is the center,
and the yellow pine of the south. Two
years ago the west coast manufacturers
succeeded in crowding their firing line
into Colorado. They Immediately fol-
lowed with demands for further conces-
sions to carry them into the trade now
being largely supplied by the mills of the
| Mississippi valley. Their request for re-
duction of rates was not granted They
have persisted and as related in yester-
days dispatch to T he Journal, have
renewed their efforts to induce President
Hill of the Great Northern to grant the
concession. But Mr.. Hill has promptly
declined to do so.
The present rate on fir lumber, the big
lumber product Of the coast, to the Mis-
souri, river and lower Mississippi river
points is so cents per hundred pounds. 1t
is the same. to Chicago. To Minneapolis
and upper Mississippi river points the
rate is 40 cents. This rate also applies to
points in Minnesota on the transcontinen-
tai lines west of the Minnesota Transfer.
The west coast men ask for 50 cent rate
to Mississippi river points and a 40 cent
rate to Chicago.
"The Community and Lumber.
This demand for lower rates is one in
which several of the large railroad sys-
TENS of the west are vitally interested.
1t is one point where the community of
| interest may come into play The situa-
T.
manufacturers feel that it fortifes their
future influence in the market mentioned,
comprising many of the southwestern
states 1t is also well understood that
the railroads generally have taken firm
| stand to protect the white pine men until
the production in the white pine country
is materially curtailed by the exhaustion
of supplies. Any movement on the part Of
the Great Northern and Northern Pacific
to reduce rates would in all probability be
followed by a cut in rates by other roads
not interested in the west coast traffic.
The Morgan-Hill system, comprising the
Great Northern, Northern Pacific and the
Burlington, is naturally much interested
in west coast lumber. This timber is
largely located in Washington, Oregon
and Idaho. The two transcontinental
lines would secure long haul in bringing
the lumber east, and the Burlington by
its connection with the Northern Pacific
at Billings, Mont, would realize a good
revenue on the haul from the west as well
as being the system largely used by the
other two lines in distribution in the
southwest.
To the south the Hartman system and
the Gould system are interested in the
distribution of yellow pine from the for
ests of Texas, Louisiana, Mississippi and
Arkansas.
The. Milwaukee distributes a large
amount of white pine from this market
and through its connections gets a good
business out of yellow pine The same
may also be said Of the Burlington,
which is to be one of the big distributing
agents when west coast lumber finally
works into the southwest
Hot Competition Feared.
1t is argued by traffic men that a rate
allowing the entrance of west coast lum-
ber into these states would increase the
competition to such an extent that gen.
eral reduction of rates from all points
would follow and the final result would
be reduction in revenue all around. The
yellow pine roads are jealous Of their
business, the white pine roads are equal
ly so, and If community Of interest
amounts to anything, it will dictate the
preservation of the present rate situation
as far as the coast is concerned.
Again all of the roads are guarding
their sources Of revenue for the future
Yellow pine production is on the increase
and the visible timber supply is large.
1t will asst for years. The Gould and
the Hartman systems will hang to the
present rates on yellow pine as long as
they can. They can insist that there is
no good reason for allowing the west
coast men to enter this market until the
white and yellow pine manufacturers can
Inc longer supply the demand-which will