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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (March 13, 1908)
4 THE .MORrXG OREGOXTAX. FRIDAY, MARCH 13. 1908. Y HEW LUMBER RATES ARE WRONG Wimbish's Able Argu ment to Gommission. EFFECT ON LUMBER INDUSTRY Public Interest Demands Res toration of Old Rates. DESTROY LUMBER PROFIT Advance, He Trclare, Means Death Interests by Driving Them From Markets Roads Made Big Profit on Old Schedule. WHV l.NCREASK IX RATB3 IS NOT RII.HT rtrlmemal to public interest by closing down mill. Drive Pacific Coast fir and spruce out of Plains markets. Roads earn handsome profits on ol rates. Advance ?s result of suppression of competition. Not Justified by increased cost of operation. Carriers may not demand mare than a fair compensation for service rendered. Advance will more than absorb profits of lumber manufacturers. Create appalling forest waste in cutting only high-grade timber. orkgonmix Sews bureau, wash- iriRton, Murcli 6. If thp IntrrstatR Com merce Commission ilecldos the Pacific Cuaat lumber rate case in favor of the lumbermen and against the railroads, con siderable credit for the victory will be due W. A. Wimbish, of Atlanta. Ga., leading counsel for the Washington lum bermen. In his closing argument before Hie Commission. Mr. Wimbish made a forceful presentation of the lumbermen attack on the proposed advance, and wove together the evidence In a way to strengthen their contention that there is no justification for Increasing the rate on lumber shipped from the Pacific Coast to the Missouri River territory and points liast. Mr. Wimbish, in opening, stated that tile reasonableness of a rate depends upon three considerations: Whether the public interest is promoted or prejudiced by the rate. This is paramount. Sec ond, whether the customers can afTord to pay the rate, and third, whether the rate Is more or less than sufficient to enable the carrier to earn a reasonable com pensation for the service performed. Ho declared that the increase in the lumber rate could be assailed on all three grounds. First, because it is detrimental to the public Interest In that it lias closed down most of the Pacific Coast mills, throwing thousands of men out of em ployment and making many of them pub lic charges. Also because the Increase, if enforced, would drive Pacific Coast fir and spruce out of the markets of the (iron! plains region, leaving that sec tion at the mercy of the Southern pine producers, who would then have a mo nopoly and he able arbitrarily to raise their own price. Second, he argued, the rate was unjust because purchasers in the Great Plains states could not afford to buy Pacific Coast lumber at a price eiual to the recent market price, plus the lo cents increase. Old Rates Profitable. i?o to increase the price of Pacific Coast fir and spruce would compel purchasers in this competitive territory to turn to Southern pine, which is considered of substantially the same value as lumber from the West. Mr. Wimbish contended. In the third place, that the railroads against which suit was brought, are all earning handsome profits, both on lumber and other traffic, and therefore are not Justitied In boosting the lumber rate at this time. If they were operating at a loss, lie said, they should Increase all rates, and not single out lumber, which is a low-grade freight, carried at rela tively low cost at comparatively no rLsk. It might be true that lumber does not yield as great a profit as higher gTades of freight, but he contended that Ir. all fairness to the lumbermen andi to the purchasers of lumber, the railroads should not require this commodity to pay an unreasonable portion of the ex pense of operation. Mr. Wimbish qtioted from James J. Hill to show that the old rate on lum ber, when established, was not expected to be a minimum rate: indeed. Mr. Hill had led the Northwestern lumbermen to believe that as time went on and traffic increased with the growth of the North west, that the lumber rate would be re duced on this presumption, and with this assurance, the lumber industry had steadily expanded. Moreover, he argued that when a rate has been long in force and a large and Important traffic ha moved under It. the rate is presumed to be reasonable, and if the railroads seek to Increase such a rate, they must justify the advance. Moreover, he contended that when a carrier has prospered under a general schedule of rates, as have the Hill and Harrtman Unas, particular rates on a commodity constituting a large part of the tonnage, which rates have been long maintained, arc presumed to be re munerative. Continuing his argument. Mr. Wimbish said it was to be fairly presumed that the old lumber rate, having been con tinuously in existence since 1583, was suf ficient fairly to compensate the railroads for the service performed. Long ac quiescence In this uniform rate is cogent evidence that it is reasonable. Railroad Contentions Denied. - Mr. Wimbish then took up the con tentions of the railroad companies, deny ing in turn that the old rate was es tablished to aid and encourage an infant industry; that it was abnormally low with regard to lumber rates in other parts of the country; that lumber does not bear its fair share of the burden of transportation, and also denying that the increase In operating expenses Justifies a raise in the lumber rate, either because the traffic can bear It. or because of the empty-car haul westward. The rates fixed in 1SS3. said Mr. Wimbish. were established as the re sult of wholesome competition. Rates so established are presumed to be rea sonable. The advance on November 1, li07. was the result of a suppression of competition, and must therefore be presumed to be unreasonable. The in crease was made uniformly by all the Hill and Harrtman roads, and was an -bounced simultaneously. It cannot be doubted, said Mr. Wimbieh, that the advance was the outcome of concert of action and previous understanding between the companies. Yet any un derstanding' or combination, the ten dencv of which Is to restrain competi- tion beteween carriers, is unlawful. and justifies the presumption that such advances are unreasonable. The presumption that the former rate were reasonable necessarily im plies that they afforded fair compensa tion for the service performed. To overcome this presumption, the carriers must show the cost of the service; this they havjp failed to do. and. in the na ture of things, cannot do. The rates on lumber, he said, are not too low, but are. perhaps, relatively too high, when compared with other traffic mov ing from the Coast to transcontinental destinations. x North Bank Reduces Cost. The increased cost of operation of the railroads does not justify the ad j vance in the lumber rate, said Mr. t Wimbish. The congestion of traffic which prevailed last year and which contributed to the cost of operation, has been relieved by the building' of the North Bank Road, which will en able the Hill lines more freely and economically to handle their tonnage to and from the Coast. Moreover, the increased cost in the production of lum ber has kcpt.paee with that in the cost of transportation, and it would be no "more fair to compel the lumber manu facturers to pay the increased rate by reducing the wages of their laborers than it would be to compel the rail roads to make a reduction In the rate and compel them to take this reduction out of the wages of their train crews. At some length. Mr. Wimbish ex plained why the lumber manufacturers cannot bear the advance. Lumber and TIIK PlllNCK AM) PRIXCESS r ; I ililfllltil llfiplpS j I mmm -'m fmMi W-pM'!4M I t . 1 f $ t t KAISER WII,Hf2L.M IS OHDKK TO IIHI..P jR Kt'O VC1L.1 ATIOV OF GERMANY AND GREAT BRITAIN. shingle mills in the Northwest have generally closed down for want of orders. The rail business is almost completely paralyzed. Northwestern lumbermen are not only deprived of their more remote markets, but their entire, product is thrown on the local market, thereby causing demoraliza tion of prices and business. It Is doubt leas true that the railroads are also suffering because of the general de pression, but at such a time they should lower their rates, thereby en couraging larger tonnage for their own benefit, and to revive a languishing In dustry for the benefit of the public. During the past several years, just prior to the advance, both lumbermen and railroads were prosperous, but the evidence shows that the carriers were the more prosperous. While, in excep tional c-asefl and under especially favor able conditions, some manufacturers of lumber have accumulated considerable fortunes, yet the net earnings from tha industry as a whole have been nothing like so great as those of the Hill and Harriman roads. Blow to the Industry. This period of prosperity, however, so far as the lumber manufacturers are concerned, has passed away, he added. Even if the lumber industry was highly prosperous, this would af ford no justification for an increase in rates, which have been shown to be reasonably high and compensatory. That the carrier may not demand more than a fair compensation for the serv ice rendered. Is a thoroughly estab lished principle of law. As a matter of fact, said Mr. Wim bish. the amount of the increase will more than absorb the profits of the lumber manufacturers. This advance In rates represents a tax of $2.75 per thousand feet on lumber, while the evi dence shows that even the most pros perous lumber manufacturers have not realized and cannot realize any such profit on their product. To permit the advance would, therefore, not only de stroy the profits of the business, but would license the railway companies to extort from the manufacturer the workman, and the logger, a large share of their gross earnings, if, indeed, the business could survive any such condi tions. It Is clear that the advance will shut Pacific Coast flr and spruce, and other species of lumber, out of the large prairie region. Pacific Coast lumber, under the higher rate, could no longer compete In St. Louis. Chicago and De troit. Not only would this occasion great loss to the Pacific Coast manu facturers, but it would deprive the pub lic in those -markets of the competition to which it is entitled. The gravest result that will ' follow this advance will be the appalling for est waste rendered necessary to obtain the high grades of lumber that might bear the advance to Kastern markets. Some mills might continue to operate, even at a loss, depending for their maintenance on this high-grade lumber, but long continuance of such a waste ful cutting of the forests would work great ruin for generations to conic. NEW MISSION TO INDIANS Wealthy Matrons Back Work Among Native II aces. RENO. Nev.. March li A group of millionaires wives, consisting of Mrs. Bayard Cutting. Mrs. W. H. Vanderbilt. Mrs. W. J. Sloan. Mrs. Potter Palmer, Mrs. W. K. Vanderbilt. Mrs. H. M. Clay Twombley and Mrs. George Gould, have organized a society for missionary work among the Indians, under the direction of Sybil Carter. Part of the work is to be done in Nevada, This afternoon Miss Jessie Hemenway, representing the society, arrived here from New York, to start the work of teaching the Italian method of making lace and Roman cut work among the In dian workwomen of the Walker River reservation. She says the education of the native races along these lines has been very successful so far. especially among the Moquis of California. BnwsHs. As ammiJments to the Cohro b'H do not provide for suppressing the native labor tux Radical and Socialists will oppose the Conso annexation treaty. Eya glasses $1.09 at Metsger GULLS REBATES BY ANOTHER NAME Luce Admits Southern Pacific Offense and Attempts Defense. BIG SHIPPERS GET FAVORS lleduced Hates Knable San Fran cisco Firms to Kill Ixcal Compe tition in I.ns Angeles Secret Grain Kate Fools Farmers. SAX FRANCISCO. March "Rebat ing is a term used for refunding below a legal rate. W'c are not in that business. We have done no rebating on state or interstate business. We are vouchering between a class rate and a legitimate commodity rate." This was the statement made today by G. TV. Luce, general freight agent of the Southern Pacific Railroad, during the OK HAI-ES, WHO WILM, VISI'I Investigation of the State Railroad Com mission into the charges of rate discrimi nation against that company, which was resumed this morning. Mr.- Luce was on the stand all day and was in turn inter rogated by Attorney-General V. S. "Webb. O. K. Cushing, attorney for the Califor nia Traffic Association, and Peter F. Dunne, representing the railroad com pany. . It was established that the Pacific Hardware & Steel Company and. Baker & Hamilton, of this city, had been granted a half rate to Los Angeles to fill orders from branch houses in compe tition with Los Angeles firms. Mr. Luce said that any other firm having branches In that city would have been given the same rate. Encourage Crushing of Hock. Asked by Mr. Webb why the E. B. & I. Stone Company had been granted a rate on the basis of H cent per ton per mile on crushed rock from the stations of Sather and Thomassen to all points on the Pacific system, Mr. Luce said it was done to encourage the industry and with the understanding that the firm ship ;yo.000 tons during the year, or 1000 tons a day. The general freight agent, how ever, would not say that refunds were made on shipments of less than 1000 tons a day, explaining that during 1005, when this rate was in effect, the railroad was often short of equipment and could not furnish the necessary cars. Mr. Luce then explained that the Southern Pacific was "not in the rebate business, but. vouchering between a class rate and a legitimate commodity rate." It developed that Simon Newman, a grain-buyer and owner of warehouses along the San Joaquin River, had been given a special rate from points along the river to San Francisco. Port Costa and Sacramento approximately 8 per cent lower than the regular tariff rates, which. Mr. Luce explained, had been done to meet water transportation competition. He admitted, however, that no one else at those points enjoyed the special rate given to Mr. Newman. 'Don't you believe In encouraging the farmer?" asked Mr. Webb. "Yea. sir; we do that all along our lines," answered Mr. Luce. Newman the Only Shipper. The Attorney-General then endeavored to establish the fact that the enjoyment of the special rate gave Mr. Newman a decided advantage over alt other buyers and shippers from those points and that the farmers, believing the price of wheat to be based upon the published tariffs, were being injured just that much. The freight agent explained that, so far as he knew, Mr. Newman was the only buyer and shipper from those points and that any other shipper would have been given the same low rate to prevent him from shipping by water. The hearing will be resumed tomorrow morning. Effort to Make Vmatilla Dry. PRNDLETON, Or., March 12. (Special.) At a meeting of the local-option work ers in this city today, it was decided to give the people of Umatilla County a chance to vote upon the proposition of local option for the entire county at the coming election. At the meeting there were representatives from practically every precinct In the county, and it was the unanimous sentiment that local op tion would carry, although the proposi tion was defeated last year by S00 votes. Petitions were drawn up and have al ready been sent out for circulation. A plan of campaign was agreed upon, and will be waged unceasingly from now on until after the election. AT THE HOTELS. Oregon Hotel. John Olin. Seattle: George B. Baker and wife. Dayton. Ohio: D. M. Drunheller, Spokane: F. W. Ware, Sacra mento; B. G. Mallender. San Francisco: W. j W. Collins and wife. Mason City; Adam Myrtle Creek: B Gusgunne and wife. D. Weiss. A. E. Eberhart. Claremont. Or.; Ben 11 Greenhood. New York; T. F. Guinea. Chi caco; H. F. Coats. Aberdeen; S. M. Ander son. Seattle; H. K. Fly. New York; Mrs. Jesle Bailey. Mrs. M. J." Stevenson. Mr lavah Stevenson. Eau Claire. Wis.; F. P. Keller. Utica, N. Y.; B. W. Sinclair. San Franci."co; J. E. Verdln and wife. M. A. CoiiRer. S. P. Conrer. Grant Pass: J. I. Ritchie. Seattle; E. M. 1'oombs. Denver; P. O. sjyoeb. Chicago; Ray W. Number. H. H. Plummer. Akron. Ohio; E. B. Par Fona. Philadelphia; H. W. Dickerson. Minne apolis; Mr. and Mrs. Todd, Golrivllle. Nev.; .1. C. Walker. Minneapolis; Walter W. WW-i-n. Fred O. Hut chin, Xewbera. Or.; W. O. Webdltr. Seattle . M. V. UlanrlUe. Cincln- 0FEICES . IN MERCHANTS TRUST BUILDING Sixth and Washington Best Location in City Modern Equipment Throughout FOR ROOMS APPLY TO MERCHANTS SAVINGS 8 TRUST COMPANY 247 WASHINGTON ST. nati. Ohio; John T. Albert. Portland: Harry Kruper. Butte. Mont.; TV. F. Zwick. William .1. Porter. Seattle; A. E. Eberhart. Walla Walla: E. H. Van Gelder. Seattle; T. Thorp, Ohio; R. McKinley. Seattle; t G. Baldwin. New York; F. C. Wilecx. Aherdeen; W. . f'usliman, Seattle; O. A. Straubel. Gren Bay; I). Mayh-rcer. McMinnvilie; Dr. t Wo.t. Walla Walla; E. A. Frontman. Den ver; A. C. Burroughs. H. I... Buck. J. F. Mortimer. Hotchiss. Colo.; C. M. Bennett. Everett. Imperial. E. A.Rhoten. Salem; K. W. T.ee. Hopprer: B. T. Byrns. Morrow; Ernest Robson. Uderton. Ont. : G. W. West, lwip ton: I-. S. Nelwn. Grants Pas: N. G. Willis, city: Cailc Abraham. A. Andrews and wife, Salem; J. Burrows. Duluth; H. !U Nuttinjc, Columbia City; S. S. Strain. Kelso: C. W. Bales nd wife, Kelao: J. A. Hawnston, II waco; Mrs. T. Vogt. E. Vofft. The Dalles; G. H. Racoulatt. Bridal Veil; 'W. W. Fer rell and wife. Ken ell. Idaho; C. A. Schranek. York. Nev.: W. Fleischman. Mitr rime: C. A. Nichols. Nampa. Idaho: Charles T. Earlv. Hood River; William McHardy, Dallas: William Hilton. Pendleton: G. H. Hurd. Tacoma; H. 1.. Dresser and wife. Du luth: W. O. Blazer. L.yle; H. J. Harlss, The Dalles; W. U Hamilton. Niel White. W. L. Cobb, Roseburg; Walter Belyew. Eugene; Joe Mason. Jr.. lone: George B. Ward, Grants Pass: W. J. Hills. Seattle; Mrs. J. Albert Jawelle. Gardiner; J. P. Thompson, Minneapolis ; J L.. Smiley. Blain; T. W. Llewallen, Adams. The Perkins A. F. Morlan, Roseburg; J. W. Hobbs, Eugene; E. JohiiEon, Mrs. Derby and child. Yacolt; R. Young, F. Cox, G. W. Dole. Camas; A. Rossi, Beaverton ; J. A. Acteson, Hoqutam; E. C. BushneM and wife, Elain: P. B. Gallagher. Milwaukee : X. W. Jacobson. Patterson; J. S. Jensen and wife. The Dalles; Mrs. W. M. Dunlap. Condon ; Mrs. V. Nelson. Newberg; Mrs. E. Lynn. Perry dale: Miss Leone Williams, Dallas; Misa C. Anderson, Hood River; J. A. Elder, Forest Grove: J. B. Miller, Seattle; A. L. Clarke, city ; R. A. Jayne. Springfield; Mr. and, Mr. E. mogtk, uskosii; Mrs. j. a. mc Curdy and child. Duluth; t' Shechan, Boise; S. J. Pritchard. S. H. Savage. Ta coma: J. Hettdington. a.n Aneelmo; C. Madison, Seattle; R. M. La. Follette. G. W. Hooper. U. S. G. S-: W. W. Wooster and wife, Spokane; R. N. Strand and family, Astoria: N. G. Willis, city: I S. Nelson, Grants Pass; J. Buncus, Duluth : S. E. SILVERFIELD'S SPECIAL SALES DAY Extraordinary Specials SUIT SPECIAL Facts About These Suits These suits are worth in the regular way $30.00 and up. There are no two alike and every one are advance Spring styles, Season '08. FRI DAY ONLY for $23. 75 New Spring Millinery at $S.OO Our showing of new Spring Millinery, in Street and Dress Hats, all the desirable shapes and colors, at this popular price, is an inducement for buying your hat for early wear. Unusual CCCi AA values at this low price of POUU Of Interest to Trappers Sell your Furs to the Manufacturer direct. We pay the highest cash prices for your Raw Furs. Send for our new Raw Fur Price-List. FREE on request. EXCLUSIVE OUTFITTERS FOR WOMEN AND CHILDREN S MiE TIME You'll most appreciate the Spring suit you buy JL here is after you've worn it long enough to learn its good qualities. Here is one of many Hart Schaffner & Marx Varsity models. It keeps its original shape, retains the style that makes you like it at first and sets ofTyour figure by a lasting good fit. We've lots of other styles, it's just a question of which suits you. am Barnett, White SaJmon: J. R. Hawkins, Ilwaco: J. Huber, Cazadero; E. Sterns, J. E. Lane, city; J. B. Wade. C. E. Brady, Chicago; J. A. Ireton, Boise; Mr. J. E. McDonnell. Anaconda; O. M. Brandt, Fasston: L. R. McGee and wife, Caldwell; C. K. Andrews and wife. The Dalles: E. L. Rlschar, Spokane; W. C De Lano, Boise. St. Charle. F. Olson. H. Iverson. Et na; J. K. Hill, Tacoma; O. Brorsen. San Francisco: J. S. Ryan. Toledo; C. H. Moel ler. Camas; H. R. Wren, Tacoma: J. Mor row, Aberdeen ; G. Gait her. Astoria; J. G. Stuart. Mabel; .1. D. Roberts, city; G. W. Metralf. Sullivan: A. J. Smith, Ma-Cgie; C. Lane. Mist ; G. Brewster. Vancouver; A. G. Harting. Gobel; J. H. Clark. H. Finney, Martins Bluff: H. W. Rawley. D. A. Cat rav. Eagle Creek; G. Hanes. A. E. Ke.11 wdrthv. Hood River; A. Byers, Vancouver; J. Johnson, Scappooosc; W. H. Young. Ore- for Today Buy THIS IS THE PRICE FOR FRIDAY VALUES $30 and Up 23J5 ILVERFIELD' FOURTH AND MORRISON STREETS Copyright 1908 '1 Rosenblatt S Go CORNER THIRD 8 MORRISON STREETS gon City: Captain Wood, city; H. R. Par I sons, wife and child. M. R. H. Nye. Repub 1 lie; J. Knott arid wife. Walla Walla; E. H- Flagg. St. Helens: Mrs. M. C. Keliey. Co quille; Inez Jenkins. Brandon; E. J. Bryam. Albany ; H . Hedges and wife. Bend ; G. P. Gait her. Astoria; M. Trafford. San Fran cisco; E. Mitchell. Astoria: H. Smith. C. C. Bishop and wife, Seattle: A. Heman and wife. Rainier: Mrs. Wood, city; Mrs. C. Moore., regon City; Mrs. F. McCutcheon. Beaverton; G. H. Graham. Marshland; S. L. Butler, city; O. Love. Mist; C. H. Leon ard and wife. Heppner; A. Arms. Banks; Mrs. F. M. Roman. W. Roman. Salem; G. W. Metcalf. Pullman; L. Forest. Albany; I. M. Forrester. Eagle Creek : J. Roberts. Denver; H. A. Knight. McCIoud; H. J. D. Prjes and wife. Vancouver; J. D. Ovan, Kelso; Eli Mills. Beaverton J. H. Shipley. M. S. Hellyer. G. Elliott, D. Link. McMlno- for Your Little Girl at a Great Saving. We offer for today only about fifty Misses' Spring Coats in plain colors, reds, blues and grays, and fancy mixtures; ages from 6 to 14 Q2 years; values $6.50 to $9.00, for only. PJ70 Buy Your Children's Needs in Muslin Un dergarments at a Saving of One-Half We place on sale today a manufacturer's sample line of high-grade TJndermuslins for Children, con sisting of Drawers, Corset Covers, Petticoats and Gowns; ages 5 to 17 years, ONE-HALF REGULAR PRICE. Take advantage of this unusual offer. 75c Ladies Hose Supporters Extra Special 1 9c A fortunate purchase of a large quantity of Klein ert's high-grade Hose Supporters, in all colors, both plain and fancy, prices ranging from 35c to 75c, which we are able to offer at the ridicu- " Qf lously low price of A J71 Remodeling and Repairing of Fur Garments at Great Reductions The new styles for 1908 and 1909 in Fur Jackets, Boas, Ties and Stoles are here. Bring in your Fur Garments and have them altered into the new styles. Great reduction on all Fur Garments. teit'tyfe 1 via by Hart Schaffner & Marx vllle; R. Craft. Estacada; J. Hill. Tacoma; Mrs. H. R. Porter. Raymond; T. F. Gannon, city; J. White. Salem: S. H. Howe, Eugene; J. J. O'Neill, P. O'Neill A. J. Earl. Seattle; G. W. Cox. Coquille; H. Gray, Carson; Oscar South maid. Sheridan: Andrew Wood. Sher idan: H. Harvey. C. T. DU1, city; J. W. Ste vens and son. Boston; Roy Beale and wife, Pendleton; E. Hudson. Newberg; C. A. Da vidson. Maggie; R. C. Brown. Seaside; .1. Harnle. Coes Point; James McCann, As toria : Mrs. Jette, Champoeg; J. West, H. Mmlth. Banks. The Lenox J. Doty and wife, Carlton: M. X. Long. Kugene; R. N. Strand and family Astoria; S. N. Kilgore. Chicago; M. Hen- land; E. E. Hawkins, G. V. Heftinge moux iiy ; vv . 1 . w arson, ynvvaa ite : Jones. Buffalo: N. G. Franklin. New York. a new Spring Coat LARGEST AND LEADING FUR MANUFAC TURERS OF THE WEST