Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1911-08-03
RECIPROCITY And LUMBER
How the Agreement Affects oue
Great Industry
BonrGs in the EouSh, Telaxrsph Poles
ana Stavcs Arc on Free List mud
There Arc Greet RedWcGOos
ON other Products.

A Washington special to the ottawa
Journal says: Tho proposed legislation
pursuant to the reciprocity agreement
with Canada puts rough lumber on the
free list The present law taxes it sl?5
n thousand fec;; the Dingley law taxed
It ST. ON paned lumber, however, the
proposed law retains charges ranging
from soc a thousand for lumber planed
on one side to $50 for lumber planned
and finished on four sides. All these
rates, except possibly the soc for lum-
her pIaned on one side. exceed the whole
cost Of planning. For lumber planed on
four sides. the duty may be two or three
times the whole cost of pla ming
SHINGLES AND POLES.
Shingles were taxed 30c thousand by
the Dngley act. and were raised to soc
by the present law. Tho proposed law
would reduce them to 3Oc. the Dingey
rate Lsth paid 2ic thousand under
the Dingley act; they pay 2Nc at present
the proposed law puts them at 10c.
Telegraph poles. pickets and slaves pay
10 per cent. at present The proposed
Law puts them on the free list
While the present law reduced the
Dingiey rates sawed lumber, the
change in the quantity imported was not
great Imports OF sawed lumber were
1,0os 9oS;ooo feet in 1906. 759 1e7,0O in 1905,
and $50. 269. 900 in 1910 The latter quantity
is about per cent. OF the quantity sawed
In the United States.
OWNER OF TIE TIMBER.
II is argued that the reslduum from the
price receivedj for lumber after deductins
the cost Of logging. manufacture and
distribution, together with the usual
competitive business profit 70 the saw
mill and distributor, goes to the owner
of the standing timber For example:
Take any given tract Of timber, cut IT
and saw IT. A certain amount must he
spent in Telling the trees and bringing
the logs to mill; certain amount in
converting the logs into lumber. and
marketing It; certain amount will be
reckoned az profit on the capital used in
these processes. Substract these sums
from what the lumber sells for and the
remainder is what the standing timber
has brought. II may bring 81 a thousand
feet, or IS or sl5: and all these values are
actually being realized to-day. according
to the location ana quality of the timber.
Now assume that the selling value Of
the sawed humber be raised nc a thousa nj
by a tariff duty. II still costs no more
to fell the trees, TO bring the logs TO mill
or to saw them. The expenses are no
more than before. and the receipts are
boc a thousand m re. Therefore this in
crease is gotten for the standing timber.
a general advance In the value Of stand
ing timber therefore follows.
Thus it will he seen that any increase
due to tariff protection goes to what
may be called the residuarv legatee the
timber owner, and simply serves to
protect an unearned Increment in a
natural resource for the benefit OF those
who have obtained possession of this re-
source. That the value OF standing tim
Der is nearly all an unearned Increment
is obvious from the fact that standing
timber grew in a state Of nature aal
without the aid OF human effort
INCREASE IN PINE VALUES.
The increase in value e this RESOURCE
since It's acquisition by private holders Is
shown in the report Of the commissioner
of corporations on the lumber industry.
where Il is stated that OF the southern
yellow pine sold by the government for
sl.e5 an acre, much ia now worth sGl
per acre. Large amounts of Douglass
fir In western WASHINGTON and OREGON.
which the government gave away, or sold
for s.. % an acre. now range from slCO
to 500 Fer acre. Practically mono of the
great forests In the pulls land states
WAS sold by the government for more
than $3.50 en acre.
The foregoing argument 10 empaas.e.n
by the fac. that the great buJk of thi
natural resource Is owosd BY few
ho6sr1. For example. three grsat lrlA.
ers the Southern Pacisc coonpsny. the
Northern Pacific RsilIyey cosapaSy ADD
the Weyerhaeu-G Tpaber company, aas
IL Per cent of .he tinibcr in tSe srs>
investigated BY tho comm. SIS oner, whici,
ares contains 50 per cent 81 tho priva.aly
ovnsd timber in the United sts,es Ninety
holdsrs Rave ~ per cent. and 1852 hold
ers have 60 per cont These figures thrsw
pracfhsl light On the Gscs<.on - "a
whn azo the reciptsnts of the b.-nAfae. OF
iunloaV duties