The Washington herald., 1907-04-26
TRAILLUMBER TRUST
Investigators BeingSentIntO
the Timber Districts.
PRICES INDICATE COMBINE
Sensational Advance OF Building
Material I'm 1906 Disclosed by First
Stages of the Inquiries--COmmis-
siOner smiths Experience as a
Trust Prober-MaBy Complaints.

With view first to securing adequate
data on the business and secondly to
prosecuting the lumber trust, IL it is
found that punitive action will lie. the
government has reached the vital stage Of
an investigation Of the lumber industry
that is national in its scope.
A preliminary Investigation of prices
has been conciuded In Washington, and
the Bureau Of Corporations is now send
ing agents to all the principal t'mbering
districts 10 secure facts in the field
New England, the Northwest. the far
West, the South, and Southwest are 10 be
included in the inquiry The study Of
prices as now made shows startling and
uniform advances in the cost Of practical
iy all lumber IN the last ten years, and
especially the remarkable jump in 1906 4
mere glance at the quotations indicates
clearly that more than natural shnnkage
Of supply IS the cause OF the increase. It
is furthermore well known TO the lumber
trade that the wholesale lumber business
is now controlled by a few centralized or
associated interests. representatives Of
which meet monthly and TX prices.
smith Has Had Experience.
Under resolutions passed by the last
Congress- Herbert Knox Smith, who sue
ceeded James L. GARFIELD as commissioner
Of corporations. has set out 10 establish
the fact Of trust control by indisputable
evidence. He is applying TIE same drag
net used against the beef trust and the
Standard OH Company. In each of these
former instances criminal and civil pros
eeution by the Department Of Justice fol-
lowed The work IN the lumber matter
is now entirely in the hands Of Commits
sioner Smith The attention Of the De
partmeut Of Justice has been called T.
the lumber situation and the department
urged 20 prosecute. But il was learned at
the department yesterday that steps viii
not be taken In that quarter until the
Bureau Of Corporations shall have sifted
the facts
Commissioner Smith as assistant COM
missioner, was associated with Mr. Car
field when be was directing the probe into
the affairs of the Standard OF and the
beef trust He finds the task OF investi-
eating the lumber industry fraught with
ualcs difficulties than was the case even
with the oil business. This is true for
TWO principal reasons. First, prices Of
any commodity depend upon the quantity
Of supply. and il is extremely difficult 10
hgJTe upon the "stumpage' or the avail
able supply OF standing timber remaining
in the country. Secondly, the lumber in
dustTy is much more scattered than the
oil business, with more factors 10 con-
slider and wider range in inquiry TO be
made.
Has Put Homes Out of Reach.
Complaints of the exacHons Of the Ium-
Der trust. IL that be possible. have been
more numerous and more bitter than
those against the Standard and the beef
trust. During the career Of the Standard
the price Of Oh TO the consumer on the
whole has ranged downward. AS the
lumber industry has become centralized
and dominated by the pool that now
fixes prices TO the retailer the price Of
lumber has shot up TO the point at which
il has become harder and harder. and
often impossible. for the man Of moderate
means 10 own or build his own house or
place Of business.
A principal point which Commissioner
Smith Will seek to clear up will be the
sensational advance Of lumber IN 1896 A
complete explanation OF this advance, it
is believed viii demonstrate the fact
OF trust control IN violation Of the Shey-
man antitrust law In 1906 the price OF
hemlock advanced 81 per thousand feet.
oak, white plain. s. per thousand feet
oak. duartered, S per thousand feet
white pine, So per thousand feet; yeiloW
pine 81 per thousand feet and poplar
s. per thousand feet In the last ten
years the average price of maple has in
creased Il per cent; oak, IS per cent;
quartered oak. - per cent: yellow pine
6 per cent; poplar. 20 per cent; spruce.
"a per cent. and hemlOck, Sc per cent.