East Oregonian : E.O. (Pendleton, OR) 1888-current, 1910-06-25
(stenographically reported by Abne

(Stenographically reported by Abner
Jones for the East Oregonian.)
If you were asked to lend money
to n man who had little actual assets
except a highly inflammable build
ing exposed to increasing fire risk;
and you knew he carried no insur-
ance on it, maintained no fire equip
ment, and even kept no watchman,
you would be pretty likely to hesitate.
No matter how good his business and
personal standing, there would be
too much danger that accident would
weaken or destroy his ability to meet
obligations.
To large extent Northwestern
banks are taking just this sort Of
risk without realizing IT, in transac-
tions behind which timber is the only
real estate. laundering is our most
important industry. Either directly
or indirectly, therefore, it involves a
large portion of bank loans, especially
on the west side of the mountains.
And back of the lumber industry.
every time, timber constitutes the real
resource upon which its solvency de-
pends. Destroy all our timber and
our lumber business is completely
wrecked, and with it numberless de-
pendent enterprises. Partial destruc-
ton has the same effect proportion
ally.
This is particularly true of the
lumberman himself as a customer,
although probably oftener than you
realize the business of other custo-
mers would be seriously affected by
injury to the lumber business of one
or moro concerns or localities. AL
though you seldom take timber as
actual security by means of mort
gage. you do furnish money to meet
pay rolls, build sawmills, or buy tim
Der land, when destruction Of timber
would certainly weaken the borrow
er's ability to meet his note. And as
n rule you make no investigation of
its safety.
Interest in this subject from a
banking standpoint was first shown
by eastern houses making a specially
OF timber land loans, who are more
and more insisting that borrowers
meet certain standards of insurance
In the form of fire preventive effort.
Recently it has begun to attract at
tention here at home and Mr.. Hart
man kindly invited me to discuss II
briefly here today.
In considering the fire hazard to
which timber is subject, we must re-
member that while protection is in
creasing. so is the possible source OF
fire. Every year sees more campers
in the woods more settlers clearing
land, more locomotives throwing
sparks, and more logging activity to
create dangerous slashings. All this
still more than counterbalances the
undoubted Improvement of public
sentiment on the fire question. Toe
few people realize that the great
menace is the abnormal year which
ia certain to come occasionally
when a combination OF wind and hot
weather will fan beyond control some
of the small, apparently innocent
fires bound to be smouldoring some.
where. We had such a year in 1902
when in a few days six billion feet Of
timber was consumed in Oregon ant
Washington. We will have another
sooner or later.
These things. with the rise of tim
ber values and consequent heavier
losses, have led to a great change
in the attitude of timber owners a!
class. One by one they have be-
gun to realize that to consider fir,
damage as the act Of God, to be reck
oned as a certain percentage of risl