The Washington herald., 1907-01-19
Senate Passes Kittredge ResO-
luton for Investigation.
IS GIGANTIC, PITILESS COMBINE
South Dakota senator Pours n Flood
of Light on Operations of Lumber
Magnates, Whose Organization
Controls Prices All Over the COun-
neutrality-suspicious. Crushed.

terday, called up his resolution directing
| the Secretary Of Commerce and Labor to
investigate the lumber trust In the North
west. Mr. KittTedge read a circular-letter
to prove that a trust existed Prices had
been advanced and discrimination prae-
ticed. The resolution was passed
The only change made in the resolution
from the form in which it was first pre-
sented was the striking out, at the sug-
gestion Of Mr.. Kittredge, Of the paragraph
authorizing the Secretary of Commerce
and Labor to send for witnesses and pa
pers, administer oaths, and take testi-
mOny. Mr. Kittredge decided that the
act creating the office of Secretary Of
Commerce and Labor carried this au-
thority
The conduct Of the investigation will de-
volve upon Oscar Straus the new Secre-
tary, and will be his first experience IN
MISUNDERSTANDING since he assumed Of
fee. Senator Kittredge is certain that
the Investigation will disclose a perfect
trust operating in restraint Of trade and
in violation Of law.
THE lumber trust is the king Of combi-
nations in restraint Of trade said Mr..
Kittredge. addressing the Senate yester-
day in support Of his resolution. IN its
far-reaching effects there is none to com
pare with IT, The consumer not only
bears the burden Of its aggressive policy
of advancing prices, but also Of the profits
Of intervening agencies. For him there
IS no escape from the avarice of this
monopoly. He needs no argument 10 con-
vince him that the government. 10 which
he contributes his support and renders
true allegiance. is derellct in its duty un-
less it employs all the resources at its
command to relieve him Of these oppres-
sions. The people demand this as a right
and not as a favor
Printed Prize. Lists.
Il have IN my possession uniform price
lists ostensibly emanating from many diff
ferent localities, bat which are in fact
printed from the same type, turned out
by the same press. and issued from a
common center. A further comparison Of
these lists with each other discloses the
fact that prices are identicaIly the same
whether In Minnesota or Arkansas. Hi
nOis or Texas, Indiana or Missouri.
Louisiana or Ohio. or In any other por-
tiOns OF the country 1t matters not
whether these price lists are issued by the
Northwestern Lumbermen's Association,
Of Minnesota. or the Trinity River Lumber
Company, Of Texas. The prices quoted
by each and every one Of these companies
are identical in every particular The
evidence is but a sample Of what / have
collected by personal effort during the
past two years.
THAT the profits Of this gigantic COM
binaticn are exorbitant beyond all rea-
son is easily demonstrated. Data which
I have obtained show that it costs $40 10
manufacture the lumber at the mills. and
It yields to the trust profit OF at least
2G0 per cent. According 10 the last cen
sus OF the United States. the value OF
timber products in 1900 was 500, 10000.
Methods of the Combination.
'The methods by which this trust has
obtained control of the lumber business
Of this country are no longer necessarily
a secret. The evidence developed shows
the whole country is subdivided into ter
ritories. each OF which)is dominated by
an association maintaining a mere shadow
Of independence and in complete control
Of such territory, subject 10 the direc-
ton of the trust. The retail dealers are
not permitted to compete with each other
either in the same town or within the
allotted territory. and the minimum price
which the retailer may charge is fixed
by the association. If such retailer vio-
lates any Of the directions Of the asso-
citation he is first subjected to a system
of heavy fines and penalties and il such
violations are repeated the offender is
then blacklisted and finally eliminated
from doing business, Such is the discI-
pline TO which all retail dealers are sub
jected by the association to maintain the
supremacy OF the trust
"Oftentimes the retail dealers in a To-
cality are united in an associat ton, or
combination. TO maintain prices higher
than the minimum fixed by the trust. and
they are always restricted TO the terri
tory prescribed by the dominant trust.
As notice 20 the trade. the trust issues
from time TO time a Directory Of Regu-
lar Retail Lumber Dealers authorized
70 engage in business within a prescribed
territory.
But the retail dealers are not alone
in the clutches Of the trust The whole
saler is subject TO its domination as well.
If he sells TO an unauthorized dealer he
is subject to boycott and other penalties.
The mill men are also subject TO like
domination and like discipline although
they have an association of their own,
subject 10 the parent association, which
fixes prices. prescribes territory within
which each member may operate and be-
yond which none can ship or solicit busi-
ness, and are subject to penalties for vio-
lations OF their agreements. Prior TO this
organization there was competition. Since
il became effective there is none.
independent Concerns Crushed.
The association has an agreement with
the trust by which the small mills are
handicapped and eliminated from business
as speedily as possible.
The irregular dealer may be success
full in purchasing the original stock of
lumber and thus tie up his capital Then
his troubles begin. The invisible and ALL
powerful hand begins to work his destruc-
tion. He finds 1t impossible TO purchase
lumber which he has contracted 10 sell.
All sorts of subterfuges are adopted 70
deceive and harass him. His orders with
the wholesalers are not at first rejected
outright, but resort to dilatory practices
is made to work his ruin. The trust re-
duces retail prices without regard to cost,
and renders it impossible for the inde-
pendent dealer long to continue the etrug-
gle. He is either financially ruined or
sUrrenders to the trust
From information which I have OBJ
tained I am convinced that the lumber
trust has been in successful operation
without interruption for more than twenty
years, during which period il has been
operating with ever-incTeasing bOldness.
Had the existence of the trust been
known to the trainers OF the tariff act
Of either 1880 or 1897 it is not probable
that it would have been thoughtnecessary
to foster the lumber industry by a protec-
tive duty
Aid for jamaica