The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-12-17
HILL DEFENDS
LUMBER RATES
Great Northern Railway Mag
nate Before the Interstate
Commerce Commission.
COST EXCEEDS REVENUE
RAISE WAS MADE AFTER CARE
Full COMPUTATION.

Washington, Dec. 16.-James J. Hill.
chairman of the board of directors of
the Great Northern railroad. was the
principal witness today in the hearing
before the interstate commerce COM
mission of the complaints of the Wash
ington and Oregon lumber associations
against the railway lines on lumber
and forest products. MIR. Hill said that
his attention was attracted to the situa-
ton last summer and on Investigation
he found that the cost to his road Of
handling the lumber traffic from the
northwest vas far greater than the rev.
enue gained from it. The difficulty was,
in his judgment. that the cars had TO
he hauled by the railroads from eastern
points to Oregon and Washington prac-
iically empty. The haul of substan
tally 1900 miles cost the lines about
$3.50, while the revenue, per car, from
the northwest to the points of destina-
ton of the lumber products was about
5000. This produced - loss Of $50 per
car.
Situation Was Serious.
This situation was so serious. from
the viewpoint of the railroad lines, that
il was necessary to take some action
TO increase the rates on lumber and
lumber products not with any idea of
prohibiting the traffic i'm lumber from
the northwest, but merely with the
idea of protecting the interests OF the
railway lines. From his point Of view.
il manifestly was impossible for the
carriers to haul the lumber traffic from
the northwest to points of destination
in the east al the former rates and to
obtain a fair and equitable rate on lum-
her was the only reason the railroads
had for making an advance in their tar
ifs.
A rumor became current today that a
compromise between the lumber ship
pers of the northwest and the rail-
way lines was likely to be effected, by
which the complaints of the lumbermen
would be withdrawn and the pending
cases settled without reference to the
interstate commerce commission. 1t is
said by parties to both sides of the
present controversy that the rumOr has
no foundation in fact.
Increased Expenses.
Mr.. Hill was recalled TO the stand
at the afternoon session of the COM
mission and subjected to a rigid cross
examination by attorneys for the COM
claimants. He testified that the ex-
penses of maintenance and operation of
the Great Northern have increased dur
ing the past year largely on account of
increased wages which the company
was obliged TO pay its employees. This
fact, he said. figured I'm the consideras
ton of the rates on lumber shipments
and constituted one of the reasons why
the advance had been made at this
time.
Questioned as 10 the relations exist
ing between the Great Northern and
the Northern Pacific, Mr.. Hill said that
they were not so close as they formerly
we're: in fact. the roads were. getting
farther and farther apart. He said,
however, that he was a stakeholder in
both companies, and later on explained
that considerable part of the stock of
the Burlington road was owned by the
Great Northern and Northern Pacific.
Mr.. Hill explained that the matter of
rates on his line was left largely to
the traffic men, and he was familiar
with them only in a general way. He
was unable, therefore. to go into minute
details respecting the rates.
Mr.. Hill gave a brief history Of the
operation of the Great Northern and
said that it was simply the desire of
those who controlled the road to make
such rates as would be compensatory.
He reiterated his statement that 1.-THE
rates in force prior to Nov. ! last, on
lumber from the Pacific northwest to
the Missouri transfer We're not COM
pensatory, and that, and that only, was
the reason for the advance"