The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1907-11-15
LUMBERMEN OBJECT
File Complaint Against Western
and Northwestern Roads.
ALLEGATIONS or IMPORTANCE
Involve Charges of Unfair Dscrimina-
tion, Illegal Concert of Action as to
Rates and Suppression of competi-
tion to Practically All Points.

Washington, Nov. 14--Allegations
of serious Importance were made in
a complaint filed with the interstate
commerce commission They involve
charges OF unfair discrimination, ille-
gal concert of action as to rates and
suppression of competition against
practically all of the important North
western railroad companies. The
complaint was filed by the Oregon and
Washington Lumber Manufacturers
association and several other North
Pacific lumber organizations against
the Union Pacific Railroad company
and other Western and Northwestern
lines. 1t is asserted by the complain
ants that the defendants, by concur
renee and concert OF action absolute.
ly fix and maintain rates on all for
est products from points of origin in
the Pacific Northwest to points OF
destination in the Eastern states. 1t
is alleged that the Great Northern
Railway company and the Northern
Pacific Railway company dominate
and control defendant, the Chicago,
Burlington and Quincy Railroad com
pany, through the ownership of its
capital stock that the defendant
Union Pacific Railroad company dom.
mates and controls the defendants,
the Oregon Railroad and Navigation
company, the Oregon Short Line
Railroad company, and the Southern
Pacific Railroad company by virtue of
the ownership of the majority of the
capital stock of said companies and
by other devices and arrangements,
SO that there is no competition be
tween these lines; that the Southern
Pacific company dominates and con-
trolls defendants, the Oregon and Cali
fornia Railroad company and the
Corvallis and Eastern company
through ownership of the majority of
the capital stock or by lease or 9TH
erwise"
Concert of Action Charged.
1t is asserted that the defendants
act in concert as to rates through
the transcontinental freight bureau;
that they have made an advance from
to 10 cents per hundred pounds, eff.
fectiye Nov !, on all forest products;
that the rates are excessive and extor.
tionate, prohibitive and discriminate
ry, and that il exacted from the com
plainants the lumber industry of the
Northwest will be seriously injured, il
not absolutely destroyed. The com
plainants aver that they have 100000,
0e0 capital invested in their indus
tries, that they employ 10000 people,
that their annual payroll aggregates
S20,000000 and that they pay in
freight $12,000,000 annually for 10000
carloads of forest products.
1t further is asserted by the com.
plainants that the capital stock of
each of the defendant companies
grossly exceeds, as basis Of rates,
| the actual value of the construction
and equipment of the lines and that
the value of all their property devoted
to public use and the bond indebted
ness of each of the defendants gross
ly exceeds fair value of the property
of the defendants and that it is un-
just and unreasonable to impose the
proposed increase in rates as an adj
ditional burden on shippers TO pay
dividends ON excessive stock and bond
issues
The commission is asked to adjust
the rates on a fair and equitable basis
and in full light of the fair value OF
the property of the transportation
companies