Western Lumbermen File "Freedom for Lumber" Freight Proposol wirh U.S. Rqilroqds, Soying, "We Must Compele or Die"

More than 200 lumber mills, including 89 from Oregon, have joined together in an appeal to the Interstate Commerce Commission and western railroads for relief from discriminatory regulations which have hampered U.S. sawmills' ability to compete in the nationwide lumber market.

The Western Lumber Marketing Association is asking the railroads to grant western lumber shippers five days free of demurrage charges in which to sell their east-bound lumber, in an application for tariff changes filed with Thomas H. Maguire, chairman of the Western Traffic fusociation in Chicago, which will come before the WTA's executive committee in Washington, D.C. on October 2.

"This action", states James J. Heneghan, Seattle, WLMA president, "is one of the internal measures the administration and railroads can effect to aid our industry without getting involved in international negotiations or maritime problems, which would be of immediate meaning{rd assistance to the northwest lumber industry.

"We have worked hard to devise a solution to one of our industry's prime probIems,o' Heneghan says. toWest-east rail costs for lumber shipments have been steadily mounting, ever since the 15-day free hold was abolished in the United States two years ago. A successive series of further restrictions has now brought small mills to the point where they may collapse without relief-not being able to afford huge inventories at plant-site, midwest or eastern warehouse facilities, or nation-wide sales and merchandising stafis of their own.

'oWestern mills must have help soon, from the railroads a fact constantly ignored in all of the current demand for quotas on Canadian lumber and Jones Act revision.

"We have devised a workable solution to this major problem. We have prepared the answer to our industry's dilemma. Now it's up to every lumberman to ask Mr. Maguire and his committee to accept our proposal."

The WLMA petition calls specifically for rail shippers to receive the same privileges accorded to water cargo shippers: the right to hold east-bound cars for five days without charge (excluding holidays and week-ends) ata pre-determined point chosen by the railroad involved, near the Missouri or Mississippi rivers. Further, WLMA asks that a set charge of $3.00 per day be levied for the following seven calendar days if a car must be delayed in transit longer than one week to insure its sale in the east. After the total l4-day hold period had elapsed, regular punitive demurrage charges would apply.

Heneghan notes that right now railroads are extending a five-day free hold service to cargo shipments at ports of entry. oolf water shippers who carry no more than l5/o oI all western forest produsts to eastern markets, are treated so fairly, why not rail shippers? Our members and the mills who support us ship more than 150,000 cars east per year, by rail, and our industry in total ships more than 85/o of the west's forest products east by rail, not water," Heneghan adds.

'oRailroads grant far greater shipping latitude to other commodities than to lumber. Yet isn't lumber the west's major commodity? If soo why is it being discriminated against?"

Unless liberalized rail privileges are granted soon, the WLMA executive points out, oowestern-cut lumber may not be able to hold its own for long against southern pine, incoming Canadian lumber, and other competitive non-wood building materials.

'oSince abolition of the lS-day free hold in June, 1960, WLMA fought for one diversion without charge, losing that fight but succeeding in reducing the applicable charge from $18.75 to $7.72 per ear. But on August 5 of this year, the railroads instituted another discriminatory tariff penalizing any legitimate change in stop-over -even changes brought about by strike, plant destruction, or other wholly unpredictable causes."

IVLMA's petition to Maguire points out that western lumber wholesalers sell 60. 63/o oL all lumber shipped trans-continent. ally, and that it takes a median four to five days for a western car to reach a mid' western diversion point enroute to its final market. By the time the car hits a diversion point, the wholesaler must have sold it or he begins to incur costly demurrage charges. On the contrary, competitive Canadian lumber-even uithout the lS-day free hold (which Canada's railroads also abolished this summer)-has a built'in and, cut-lree dday factor of 6 to 14 deys in reaching eastern markets.

The resulto WLMA points out, is that demurrage charges have made U.S'-pro' duced lumber more costly in the east, net' ting the small western sawmill less and less, while Canadian lumber is gradually taking over the U.S. rail market.

NRTDA Show (Continueil lrom Page I0)

and handling demonstration, Componentsin-Action will be informative to anyone either in components or planning to be.

"No dealer should miss this feature, and it will be more than worthwhile to bring foremen and other stafi personnel to see, hear and experience it."

Back in 1912 when Joseph R. Jahraus founded the Laguna Beach Lumber Co., Inc., right in the center of town. there were 11 families living in the beach com' munity. Today, 50 years later, more than 10,000 permanent residents call this beautiful resort their home and during the sum' mer months the population explosion is terrific. It is estimated vacationers swell the permanent population by at least l0 times. So from May until October this art center of southern California has a population near the hundred thousand mark.

This is good {or every type of business, according to N{r. Jahraus, and lumber is no exceftion. When Joe tired of t.he real estate business with his father 50 years ago he decided to do something about the erowth o{ his town and that is how he became the verl' first retail lumber dealer in the beach area. For the next 16 years, until 1928. the Lasuna Beach Lumber Com-