The San Francisco call., 1896-02-04
Denial of the Existence of the
Combine by a Few Deal.
erS Here.
IT WILL CONTROL THE TRADE.
Even the Redwood Lumbermen of This
State May Enter the Recently
Formed Compact.

The combination of Pacific Coast lum-
bermen into the Central Lumber Com
panv of California" reported to have been
formed at Port Townsend February l, if it
is as stated, is the result of deliberations
going on among dealers for some time.
The dispatch from Puget Sound alleges
that the great trust represents a combined
capital of $70,000000, and includes in its
memb bership every lumber mill and all the
wholesale and retail dealers and ship
owners on the coast; and that the first
move of the combine will be an advance in
price of 50 per thousand.
1t was also stated in the dispatch that
prominent lumbermen of the north say
they have been steadily losing money for
several years through competition with
each other. and that the combination is
for the purpose of regulating prices and
stopping ruinous competition. They
claim that the Port Townsend announce
ment it premature, but acknowledge that
all arrangements have been com pleted and
that the news of the com bination will be
made public soon.
Queries among lumber dealers in this
City elicit both confirmation and denial
but general agreement prevails upon the
fact that prices have been going to ruin.
The larger firms contradict the statement
of a combine, even going in some cases so
far as to deny that any conditions exist cali
ing for such a com bination. However, others
freely acknowledge that they have been
losing money IN lum ber, and efforts ha ye
been made to esta blish trust that would
control all the details of the trade, regu-
lating the output from each locality and
the proportlonate amount of lumber each
carrier shall transport to market. The
estimated output Of the Pacific Coast for
n j
posed advance OF 81 per 1000 feet will In
crease the profits of the miIl-owners tor
the coming year over 81 100000.
A meeting was held yesterday afternoon
in the office OF Edward NJ. Herrick, presi-
dent of the Pacific Pine Lum Der Com pany,
by number of prominent iumher-dealers
in this City. No details of the discussion
could be learned, and to all questions re-
garding the existence of the combine en-
phatlc denials were returned.
+. +. Finley. redwood lumber man at
10 California street, said in an interview
that combine OF the pine lumber men of
Puget Sound and British Columbia would
not affect the redwood business of this
State.
"But the same conditions prevail in both
classes OF Ium ber,n said he, '.and for some
time the output of the lum Der mills have
been greatly In excess OF. tn demand. All
lumber sawed here must be consumed on
this coast with the exception of little sent
south.
''Of course, 1 do not know what the pine
men intend to do, but some kind of com
bination is needed to regulate the lumber
business. The depression III the trade
began with the collapse of the Southern
California boom when people stopped
building wooden houses. During that
period verybody in the north who had a
few acres of trees went to numbering and
the usual trouble and ruin ensued
Don't call 1t trust No trust can
live in the lumber trade. The peculiar
conditions that govern the'business would
break it down if an attempt were made to
push prices above a reasonable limit
understand II is only a com bine TO regulate
the output and price so that mill men can
work without loss. Efforts have been
made among the redwood people to form
such company and for like object, and
l believe this coin bine of the pine lumber
men will be followed by others''
S. a. Harmon of the Harmon Lumber
Company, 43 Market street, said that he
did not believe that the lumber combine
was vet complete, but efforts were being
made for that object.
Lumber men have come to the conclu-
sion, /" SAID he, "that something must be
done TO put life in the business Lumber
is being sold for actual cost and absolutely
nothing is being made in that commod
ity."
Fl. D. Peete, publisher of a lumber
journal at 10 California street, said that
more failures had been recorded in the
lumber business the last year than in any
other period, and that the trade was at
stagnation.
A builder and contractor who is thor
oughly acquainted with the lumber trade.
but does not wish his name published.
stated yesterday that the dispatch re-
Iating to the lumber trust was correct in
every particular
THAT com bine has really been in exist
ence for some time" said he, ''because
about a month ago wholesale lumber
prices were lifted through the efforts. of
the combination. Pine lumber went up
about20 per cent and redwood about so.
OF course the big companies here deny the
existence OF the trust; they deny the exist
ence OF conditions making combine a
necessity. But trust exists and future
prices viii show If. With about $50, 600 600
represented capital the Central Lumber
Company of California will dominate the
lumber business on this coast in the fu-
ture.'