The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1907-11-01
Lumbermen Win First Skirmish
In Rate War Battle.
RATE HELD IN ABEYANCE
Arbitrarily Advance Tariffs on Lumber
Shipments Causing Hardship to Mills
Dependent on Moving Their Product
by Rail--Long Legal Battle Expected,

skirmish between the lumhermen OF the
Northwest and the railroads the former
have won, At special session OF court
last night in Seattle, Federal Judge Z.
H. Hartford granted the prayer OF the
Pacific Coast Lumber Manufacturers
Association, ordering bond from the
association OF Ss5o.O00, Judge Wolver'
ton was present at the hearing, and on
arriving in Portland this morning inn
mediately granted the injunction which
had been asked on similar grounds BY
the Oregon & Washington Lumber
Manufacturers Association. The two
associations. while striving to obtain
the same object, had each filed petition
for an injunction and each has been sue.
cessful.
Lumber concerns not party to the
suits in Oregon and Washington are be-
ing advised to authorize their lawyers
to file suits in Intervention as soon as
possible, otherwise the railroads will not
be punished ii they enforce the proposed
rate on firms not party to the suit.
The result OF these injunctions is that
the proposed new rate, which the lum.
bermen declare exorbitant and ruinous
to their Eastern trade is held in abey.
ance until the Interstate Commerce
Commission has acted on it. Should the
Interstate Commerce Commission decide
that the railroad had the right to ad.
vance the rate. the bond will be used to
indemnify the railroads.
Railroads affected by the injunctions
! are the O. r. & n. Co, the Oregon Short
Line, the Northern Pacific. the Great
Northern. the Union Pacific and the Chi.
cago. Burlington & Quincy.
According to the argument OF the lum-
bermen, railroad is public concern.
run by private agents. within fixed linn
its. and subject to Government control
| to certain extent. Therefore, the Fed.
sral Courts were asked for restraining
orders against the enforcement OF the
proposed new rate, although the railroad
attorneys contended that the Federal
courts had no jurisdiction in the matter.
The railroads arbitrarily advanced
their rates to such an extent that the
lumber industry of Oregon and Wash
ington was seriously threatened. The
rate is practically prohibitive, since it
makes the cost of lumber in the Eastern
markets OF the coast concerns so ex.
cessiye that the Eastern buyers declare
! they cannot take it in preference to
| Southern lumber. Hundreds Of letters
| from Eastern customers are produced to
prove that ii the rate takes effect the
customers cannot deal with the coast
manufacturers. Thus the new rate not
only checks the trade of Oregon and
Washington, but deprives it Of enjoying
one Of its best markets.
Lumbermen contend that when lumber
mills are started along a railroad on
which the mills are dependent for trans
portation of output and these mills are
started ON the belief that rate Of long
standing will not be changed, or at
least ii changed, the rate will be lower
instead OF high, such mills are entitled
to consideration and have q right to be
heard before rate can be altered.
Further say the lumbermen, when such
conditions exist, as outlined, the arbi-
trary advance Of rates not only ruins
the industry, but forces many mills to
close and throw thousands of men out
Of work.
To prevent railroads from changing
rates at their own sweet will, the lum-
bermen wish an amendment to the In.
terstate Commerce law, which provides
that no rate can be altered without the
industry affected having hearing and
that the rate can only be enforced after
obtaining the approval Of the Interstate
Commerce Commission.
In obtaining the restraining orders
from the two Federal courts, the lumber
men have scored a telling blow on the
railroads. This now prevents the rail.
roads from collecting the intended ad-
vance rate until the Interstate Com
merce Commission has acted. If the
commission decides that the railroads
cannot make the advanced rate the lum-
Der associations will receive back their
money; but if the commission decides
in favor of the railroads, the latter will
receive the bond, Or such portion of it
as will cover what they would have re.
ceived from November /. today, until
the termination Of the case. The rail
roads expect decision in their favor
and also expect to do a big business,
evidently, since their lawyers asked that
the bond be 100000 instead of one
fourth of that sum.
How long the case will hang fire no
one can tell. The yellow pine" case,
which involved an advance in rate of
cents, consumed three years before 1t
was settled. With this precedent in