The Washington herald., 1909-05-23
Must Restrict Production or
90 Into Bankruptcy.
DAILY REPORTS PROVE FACT
Southern Lumberman Points Out
Reasons why Operations Are Con-
Remedy Is Shutting on Supply.
This WOuld Conserve Timber.


Of the Southern Lumberman. # the South
hopes 20 hold it's pre-eminence as the
lumber producing region Of the nation
In recent issue Of that paper the editor
writes as follows upon the subject:
Every mill man who is e member Of
the yellow pine association has beent re-
ceiving for the past twenty days a daily
report OF the cut and shipment Of about
135 OF the association mills he knows
what the situation is he has it put
before him every morning IN figures that
can be taken IN at a glance Probably
the reports as yet cover less than one
fifth Of the mills cutting yellow pine.
but they are from the larger mills. and
are sufficient to show the present drift
and the Inevitable consequences
Whether the manufacturer VINO gets
these reports viii realize the situation.
and viii govern himself accordingly. and
thereby save himself while contributing
70 save the general situation remains 70
be seen. Il VIII be seen IN the next few
weeks. The present excess Of production
Of yellow pine must stop. Il Il IS not
stopped voluntarily It viii be stopped in
voluntarfly-through involuntary bank
ruptcy of many concerns.
There is 10 use trying to veil the real
facts or IN speaking guarded words in
gentle whispers. The production Of yellow
pine lumber must be dirninished-heavily
diminished There has never been time
IN The history OF the business when i'm
mediate and decisive acton was so imper-
alive.
Up TO the Operator.
Il Is up 20 the individual NIL operator
He has to choose. II strong financially
he has 10 consider. only what viii be his
greater loss. TO shut down and lose his
organization Of crew and business. but
save his timber; or 70 run and swallow
his loss (of which the stUmpage viii be
only a part). but be ready for quick
action when the turn comes. Il Il a
question q the mans temperament and
his ideas Of the future, as 70 Nhen the
turn VIII come.
Every man wiz prefer 70 run az a loss
for certain time rather than disrupt
his organization, II reasonably assured Of
the briefneSs OF the interval Is there
any assurance ahead or the bTiefness
of the term during which yellow
pine lumber VIII be manufactured
at an absolute loss. II the present pro-
duction IS continued With the expert
ence of the past eighteen months OF the
extreme slOwnsss with which all business
has expanded since the panic, is there
the slightest hope that there viii be an
increase II yellow pine consumption more
than q pTOportiOnate Of what has oc-
CURED?
The answer must be an emphatic no 20
both questols. There IS not the remotest
hope that consumption can ove-take the
progressive excess OF production as
shown BY these daily reports at any tine
within the period when lumber cut now
VIII be rotten on the sticks
Lower Prices VIII Not Help.
Does any man believe that a further
fall OF price VIII stinuiats a single sale
that would not otherwise be made? AL
expeseaoe shows exactly the contrary Is
the case. Every quotation sent out at a
further cut is another step toward max
Ing a bad matter worse. and the quota
ton sent out BY a mill cutting S00oc feet
per day IS Just as hurtful as that from
a concern cutting I50.o0O feet per day It
IS the figures that hurt. The amount OF
lumber involved IS not thought OF. Every
such quotation marks a downward step
and its effect practically reaches over
the whole field Of consumption
These are the considerations that should
impel every operator 10 act and 10 act
quickly IN the cJrtailment OF his output
We have spoken only Of those consid-
erations that present themselves 10 the
operator who Is financially strong, and
can continue 20 operate II he thinks II is
good business 70 operate. To the other,
the operator who owes heavy debts.
there IS one other consideration Il Is
the creditor What is his status and
best INTEREST," Suppose the question TO
be put clearly Up 70 him Whose secur-
ity Is being depleted2 Whose prospect
OF ultimate repayment n full with inter
est IS being Jeopardized?
The situation OF the MIL in debt Is
Identical with that Of the mill ont OF
debt, only more impelling n the matter
Of cuTtRilment Il is not given 20 many
men TO figure on the inside Of such
CCiDSSaA GGszAS a. nave Dctl Several Q1
those put forward In recslt years II the
yellow pine business. but as the big caa
be judged in the little. and
as part Is q sample Of the whole, II
may be said that the creditor can usually
see his true interest more quickly THAI
Il csl be pointed out TO hin, and that
though in some cases thsCe may DO
grssping men. or grasping banks. which
think they see opportunity n the distress
OF others, as a general proposition Il may
be put down that the man who holds the
debt Is the one most afraid OF the wreck
ahead.
II the men who now complain that
they cannot shut down because Of interest
charges and sinking fund requirements
would manifest the same Napoleonic
ability IN Dealing with their finance min
listers as t1ey exhibited when their NAM |
moth ope atoms were formulated there !
should be 10 diflcilty in arriving at an |
agreement on the obvious and sensible |
basis that the interests Of both viii be |
subserved BY leaving the timber IN the /
C1oo:oE Qo~roso iii