Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-02-15
STANDING TIMBER MONOPOLY
Larger Part Of Available Supply Con-
trOlled by Few Interests.
HOLDINGS LARGELY SPECULATIVE
Owners of BiHEest Tracts GettinE
Enormously Rtch without CuttIng
Tree--Herbert X. Smiths
Report on the situation.

REPORT on tme slAuAAAoma
WASHINGTON. d. c.. Feb. 1s.-Concen-
tration Of the standing timber in a few
hands, vast speculative holdings far in
advance Of any use thereof" and an enor-
nous increase in the value "of this dimin-
ishing natural resources. with great profits
to its owners and incidentally an equally
sinister land monopoly and 'clossly con-
neoted railroad dOminauon-these are the
findings reported to the president by Her
bert Knox Smith, commissioner Of corpora
tions, in the first installment of his long
awaited report on the lumber industry of
the United States. The report was made
public today by the president sending II 10
congress. The report is effectively sum-
married. In the commissioner letter of
submittal His conclusion, in a forecast Of
the future, partakes OF the sensational.
There are many great combinations In
other industries" says the commissioner,
whose formation is complete. In the lum-
Der Industry, on the other hand, the bureau
now finds In the making a combination
caused, fundamentally, by a long standing
public policy. The concentration already
existing is sufficiently impressive In
the last twenty years concentration has
progressed so that 1876 holders many in
terTelated, have practically one half Of the
privately owned timber in the investigated
area (Which contains 50 per cent Of the
whole). This formidable process certainly
involves grave future possibilities OF i'm
pregnable monOpolistic conditions whose
fsr-reaching consequences It is difficult to
| anticipate fully or to overestimate."
The commissioner reserves for later re-
port the subject OF combinations in the
manufacture Of sale Of lumber las distin-
guished from ownership OF standing tim
ber).
Following is substantially the full text OF
the letter, summarizing the report:
Text of the Report.
The foremost facts shown are:
"U-The concentration Of a dominating
control OF our standing timber in a COM
paratively few enormous holdings, steadily
tending toward a central control of the
lumber industry.
"e2)-Vast speculative purchases and hold
ing Of timber land far in advance Of any
use thereof
'(O-An enormous increase in the value
of this diminishing natural resource, with
great profits to its owners. This value, by
the nature of standing timber, the holder
neither created nor substantially enhanced.
These are tho underlying facts OF ire
mendous significance to the public welfare.
They are primarily the results Of our public
land policy, long continued. The laws that
represent that policy are still largely opera
tive. The past history and present status
of our standing timber drove home upon
us the imperative necessity of revising our
public policy for the future management
of all our remaining natural resources.
only forty years ago at least three
fourths of the timber now standing was
Qt Is estimated) public-owned. Now about
four-fifths Of 1t is privately owned. The
great bulk Of It passed from government 10
private hands through Ca) enormous rail-
road, canal and wagon road grants by the
federal government: 90 direct government
sales in unlimited quantities at S125 an
acre; Co certain public land laws, great
tracts being assembled in spite of the legal
requirement for small holdings.
Laws Inadequate.
Such laws were wholly inappropriate
to forest regions but, though vigorously
condemned by several public representa-
} tives, they are still largely in force. in
theory they we're intended to distribute the
land in small tracts for freeholders; in fact,
they actually furthered timber concentra-
ton in vast holdings.
''rhe 1902 largest holders Of timber now
own ss,579,OOO acres Of land as compared
with a vastly wider distribution OF public
lands in nontimbered agricultural sections
During this interval and chiefly the lat
ter half thereof. the value OF standing tim
Der has increased tenfold, twentyfold and
even fftyfold. according to local condi-
lions. The present annual growth is only
about 1 per cent of the annual cut. Re-
placement by new growth is slow
What did the government get for the
timber? OF the southern timber. sold for
! S1.a an acre, much is now worth $50 an
acre. Large amounts of douglas fir in
western Washington and Oregon, which
the government gave away or sold at $3.50
an acre, now range from 800 to 500 per
acre.
THE great Redwood bed in California
was allenated on similar terms and Il Is
now worth hundreds of dollars an acre
! Practically none of the great forests in the
public land states was sold by the govern
ment for more than $3.50 an acre. The
great increase OF value gives grave impor-
lance to the concentration Of ownership.
Whatever power over prices may arise
from combinations in manufacture and dis
! tribution (as distinguished from timber
! oWhinsJ such power Is magnificent and
/ transltory compared to the control Of the
standing timber itself OF a dominating part
] thereof.
Fifty-Five Years supply.
There Is now left in continental United
States about 400 OO0OOO,OOO board feet OF
privately owned standing timber, Of which
L74TO0OooOoOO In the investigation covered
in great detail by the bureau. This district
includes the northwest, the southern pine
region, the Lake states and contains 50 per
cent Of all the private timber in the
country.
In addition there are about 5s9. 900 900 900
feet in the national forests and about 90. .
900, 0000o0 feet on other non private lands
Thus the total amount OF standing timber
in continental United States Is about $500 .
OO0Oo0Ooo board feet. The present annual
drain upon the supply OF saw timber is
NaN.a n N = HlIE