The Mason County journal. [volume] (Shelton, W.T.) 1886-1927, 1897-01-08
Central Lumber Trust Collapsed.

Seattle, Wn., Jan. 4.-The Central
Lumber company, of California, the
most stupendous trust ever organized
on the Pacific coast, is a thing of the
past. No such combine was ever eff
| fected for the control OF market in
this end of the world, and the inability
to maintain its organization is what
non-sympathizers with the scheme,
| prophesied at the time of its inception
The conditions of its agreement were
the stiffest ever promulgated and were
practical mortgage, bill of sale and
all around cinch on the operation OF
| the mills and the members of the trust
1t had hard row to hoe from the
start, but its plan was the best ever
cotton up on the Pacific coast, mas
much as it controlled every cargo
mill on the coast but three, and at
one time the outlook was rosy, indeed.
But, like any business proposition the
supply and demand keenness of COM
petition, mans cupidity and necessi-
ties and natural opposition had to be
considered and the rocks upon which
the Central Lumber company broke
were sharp. In the first place the
projectors confidently believed that
the demand in 1896 would exceed that
of 1895. That being the belief, they
were confident that price-cutting
would be impossible. But the demand
did not come up to expectations, the
proportion of supply and demand
being 4 to l instead of 3 to l, as
compared with eighteen months ago.
The anticipation of enhanced values
prior to the formation of the company,
furthermore, caused the pilling up of
great stocks of lumber in San Francis
co and other California distributing
points at lower prices, so that when
the new list became operative the
inevitable followed.
No one purchased lumber from the
mills, but everyone scrambled for the
small trade in sight in the endeavor
to get rid of the stock in the yaads.
| n al ol, hot -. l.,
and the members of the Central Lunl-
Der company and the breach was never
healed. The first struggle for SUI
premacy, due to small margins, large
stocks and small demand, took palce
in Los Angles and the Central Lumber
company came out second best. To-
day lumber is selling at barely cost in
San Francisco.
However, during this period the
millmen in Washington, Oregon and
British Columbia were simply specta-
tors. They could not understand why
orders were not coming in and why
their dividends were so small, At the
same time one mill in British Column
bia, four in Washington and four
more IN Oregon, not members of the
company, had started into the cargo
trade and were cutting the price from
% cents to $500 per 1000 feet and
were running overtime; while the
Central Lumber company's mills were
idle or running part time. This made
hard feelin IS toward the company, es-
pecially among the smaller millmen,
who were compelled to operate their
plants In order to meet obligations.
On top OF this came accusations that
the larger firms were securing all the
trade for themselves. Finally one
mill broke its agreement and others
followed suit in short order.
The Bell Lumber company of Ever
EFT was the first company to withdraw
from the combine. 1t shipped two
cargoes of lumber TO San Francisco in
defiance of the ruling of the trust.
Muttering have been heard from MEM
bers of the trust for the last two or
three months.