The evening herald. (Klamath Falls, Or.) 1906-1942, 1921-11-16
LUMbERMEN |
DEMAND RATE
REDUCTIONS


to be one OF the most important
brought before the Interstate Com
merce Commission since the gen
erai freight rate increase Of 1920,
II was authorized at a meeting OF
the governing Board Of the Associa.
tion In Portland on Friday. p
In this suit the West Coast lum-
ber industry will not only seek
reasonable rates. but will also ask
the Interstate Commerce Commits.
sion to authorize sinplified tar
Ifs in the place OF the present
complicated tariff structure involv.
ing $1,000 rates 10 all markets
reached by rail-. r
The complaint cites that the con-
tinued existence Of the lumber In
dustry OF the North Pacific large
ly depends on the ability Of the In
dustry to market It's products free
ly: and alleges that a substantial
reduction In present rates is ne
cessary TO permit substantial
movement Of lumber by rail.
The complaint further alleges
that many OF the rates on lum-
Der and other forest products from
the North Pacific coast. In effect
prior to August 26, 1920, were un-
Just and unreasonable, and that
such rate discrimination was ag-
gravated by the percentage In
creases of August 2S, 1920.
Referring to the five voluminous
tariffs involving more than fifteen
thousand rates on which West
Coast lumber and other forest pro-
ducts are now sold. the complaint
alleges that this arrangement is
unreasonably prolix and unneces-
sarily complex. imposing burdens
alike upon the shippers and the
consignees. in ascertaining the
rates legally applicable to their
shipments. and It further says that
II is in public interest that such
rates be consolidated and published
in direct, plain. simple form.
Speaking Of the suit, an officer
OF the association said: .
This action should not be con-
strued as hostile move on the
part OF the West Coast lumber In
dustry against transcontinental
roads. The industry has had very
keen appreciation OF the recent diff
ficult problems Of railroad manage
ment, and the industry's policy has
been and is one, OF cooperation
rather than antagonism.
shippers OF West Coast forest
products have tried out the in
creased rates now for more than a
year. with the result that the in
dustry finds itself losing markets
and the railroads losing revenue.
After carefully analyzing the situ-
alton the governing board of the
West Coast Lumbermen's associa-
tion was convinced that lower rates
would have tendency toward
earning more revenue for the rail-
roads, at the same time giving the
East access to an abundant supply
of lumber with which to meet its
housing situation, and above all
other considerations, 1t is hoped
that lower freight rates will per-
nit the steady employment of the
100, 900 Pacific Northwest lumber
industry workers. Unemployment
In the industry at the present time
is about 3S per cent and seems to
be Increasing.
"Under the present rates the
freight on a carload Of 2x4's, or
carload of boards, shipped be-
yond Butte. Pocatello, or Salt Lake
City, costs more than the lumber
sells for at the mill. The farther
East the shipment goes the great
or the excess of the freight bill
over commodity value, until at New
York the freight bill Is two and
one-half times the value of the
lumber {. o. b. mill.
"A study of the readjustment
process indicates that the price OF
practically every commodity has
been reduced heavily. Freight rates
which are such large factor In
our Industrial fabric. have not been
readtusted, but remain, at the high
est level in history. Manifestly.
there can be no return to normal
business conditions until the price
of transportation bears q proper
relation to commodity values. The
business of this country has been
deveioped and wide distribution