Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-12-12

WASHINGTON, Dec. 11.-Rate cases
involving larger financial interests than
any ever heretofore brought to the at
tention OF the Interstate Commerce COM
mission now are being heard by the COM
mission. While only four complaints are
included directly in the present hearing
several others are dependent on the find
ings in the pending cases
The history OF the cases heretofore has
been written. In brief, It is that the rail-
road lines OF the west and northwest de-
termined several months ago to advance
their rates on manufactured lumber from
northwest Pacific points-Oregon, Wash
ington and Montana-to the east ann
south The rates proposed were made ef-
fective on November l of this year. In
the regular way these rates were filed
with the Interstate Commerce commission.
They showed an increase Of from to 10
cents hundred pounds on lumber shipped
from northwest Pacific points to eastern
points and a much larger increase from
oregon and Washington points to San
Francisco bay points. These proposed
rates the shippers declared to be unjust
unreasonable, discriminatory and prohibi-
tive They asserted that IL the advance
in rates was put into effect they would
have to go out of business. In fact II
was Acknowledged In the hearing today
that the lumber mills OF oregon AMI
Washington had been compelled to close
down because they were unable to ship
their products on account Of the advance
IN freight rates,
Long List OF P1aintiRs.
The cases now being heard are those OF
the Oregon and Washington Lumber Man
ufacturers' association and others against
the Union Pacific Railroad company and
Tr4rra 1,ar
factnrers' association and others against
the Northern Pacific Railway company
and Others; the Western Oregon Lumber
Manufacturers association against the
southern Pacific Railroad company and
others, and the Southwest washington
Lumber Manufacturers association and
others against the Northern Pacific Rnil-
way company and Others.
Eaoh one Of the complainauts alleges an
unfeasonabIe advance in rates on forest
products from the northwest Pacific states
20 various other points In the United
states, and the defendants in each case
include the most important lines of rail-
way in the west and Northwest.
Conspiracy a. Charged.
II was stated in the opening of the hear
Ing that the complainants would prove that
the so-calied I'm lines and Hartman lines
had entered into a combination, or con-
spiraey, to advance the rates on lumber
products through the medium of the trans
continental freight bureau and that the
rates were made without any reference to
oomp0titive or to financial conditions The
former rates In force were declared TO De
fairly compensatory to the railroads. while
the new rates were declared to be the re-
suit OF an unlawful conspiracy in re-
da 10
OF extorting from the lumber men OF the
north Pacific states a large percentage OF
their profits The advance in rates was
asserted TO be abnormal and it was said
thuy were put into effect for the purpose
OF depressing the price pf lumber.
Many Mills Are Closed.
The effect OF the advance in rates It Is
stated, has been practically to paralyze
the humber industry of the Pacific north
west. IN which hundreds OF thousands OF
people are interested and in which tens
OF millions OF dollars OF capital are in
volved 1t was pointed out that the lum-
Der Industry in both Washington and
Oregon was built upon assurance that the
railroads would maintain an equitable rate
on lumber products. Many OF the mills had
been compelled to shut down, but others
were running at a loss, merely because
it was cheaper to do so than to close
entireiy It was pointed out however that
% per cent OF the mills IN the Great Harbor
district were closed down, because they
could not do business at the advance in
freight rates.
On the other hand, It was contended By
the defendants that the rates proposed
were reasonable; that the rates heretofore
in force were abnormally low; and that
the railroads were not justified IN continu-
ing set OF rates that is not compensatory.