The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1910-02-01
MAYBE THERE'S A COMBINE,
SUGGESTS CHAIRMAN LOVE
Il There's a "klgger IN The
WoodpAs' Present Inquiry
VIII Smoke Him Out

iudl thH ihlilntF HhuulirluFRTS Dl
Oklahoma are making tremendous
plolits, despite their claim that they
can MOI give inc consumer the bene-
III Of the reduced tariff on that com
mudlty because of the cost OF manu-
featuring the Oklahoma product Is
much greater than lii other states, is
shown by the testimony before the
corporation commission In the rate
hearing now IN progress.
~ D. Walton Of Guthrie, OF the
p. r, Walton Lumber company,
which operates large saw mill at
Hugo, besides a chain OF retail yards
throughout the state, admitted upon
cross-examlnatton that the Hugo mill
property during the three years and
a half 1t has been in operation has
netted 70 the company s56,500 ON an
investment Of $4,000. or this amount
only Sll,500 has been declared MS q
dividend, which was done on Janu-
ary ! last, making Is per cent divi-s
dend. The other $4,000 Ii still held
AS undivided profits.
The company before putting aside
this money as profit has deducted
from the net earnings each year IL
per cent OF the Investment cost for
depreciation OF machinery AID 81 per
thousand feet Of lumber cnt for
stumpage.
Mr. Walton also admitted that al
though under the theory the saw mill
machinery would be worthless at the
end OF seven years, 1t was still ap-
parently In good condition.
No Competition, Says Love.
Chairman Love Of the commission
stated that the present hearing would
be thorough and that the commits
sion would go to the bottom Of the
Inquiry to ascertain II there really
was a combine among the lumber In
terests OF the country. intimating
strongly that he believed that there
would be but SIS difference In a
$1,000 bill Of lumber In Oklahoma to-
day even If all the lumber companies
In the country bid upon the onder.
he declared that ii the Oklahoma
manufacturers make such profits as
disclosed IN the evidence, the outside
concerns were certainly making even
greater profits, since they admitted
that II cost them less TO produce the
product than In Oklahoma.
Consumer Gets Direct Benefits.
Chairman Love brought out upon
cross-cxamluatlcn Of Mr. Walton that
even though ,he lumber company
so.l 81 per cent of It's total olitrut to
lts own yards at The market value and
did Hol give them The benefit OF the
reduced freight rate, that tho con
sumers ccclyed nm Indirect benefit
fFuin The commissi0n'sNord pf from
80 cents ie 81 per thousand feet by
rrason 0f che outside lumber inter.
esis reducing the price OF lumber
hat much under the rate charged
when the former freight tariff was In
effect, in order 10 compete with the
lumber mills Of the state that had no
Yards aud which give the consumers
q partial benefit Of the new rate. Mr..
Walton estimated on the total bus
mess done by his company since tho
/ orders became effective. March 2,
( 1898, that the consumer had been
+ benefited In the sum OF approximately
I Sii.d00 Other mill owners testified
+ HAT unher The commissions new
rate directly and indirectly the con-
Mimers had been saved from $4,000
t 10 $4,000. according to the output
/ or The mill Four mills estimated an
average saving OF s50.00V 10 the con-
sumers Of The state since the order
T has heen In effect.
Love Orders More Witnesses Sum-
moned.
OF tho pnmerons lumbermen rep
resenting Oklahoma and outside
companies that were ON the witness
stand yesterday and today none knew
anything definite as to wnat they
sold their lumber for and how much
profit they made per thousand feet,
cr hcR much profit the retailers
made. although they were eager to
+ testify ss To What II cost TO produce
: tae lumber - Charmar,gLpsp sFnfd
thar the commission ii9latl bave' tha
facts In the case and issued suhpoe-
naes for salesmen OF various compa-
MES operating In and outside Of Ok
lahoma, the bookkeepers of the vari-
ous mills operating In the state and
various other lumber employees TO ap-
pear before the commission and tes-
/ tify He also ordered the account
ants OF the various big lumber pro-
dnclng companies 10 produce state-
ments showing cost Of production,
i both now and before the new rates
/ went into effect,
! Alieae Arkansas Lumber Is Barred.