Fergus County Democrat., 1911-02-21
Commissioner of Corporations Smith
Makes Report on Lumber In
dustry Of United States.
1875 MEN HOLD ONE.HALf
Control Of Timber Cause of High
Price Of Lumber-Land Policy
of Government Very Bad.

ton of the standing timber in very
few hands, vast speculative holdings
"far in advance Of any use thereof"
and an enormous increase in the |
value "of this diminishing natural re-
source with great profits to its OWL
ers" and incidentally IAN equally
sinister land monopoly" and a closely
connected railroad domination-these
are the findings reported to the presl-
dent by Herbert Knox Smith, COM
missioner of corporations, in the first
installment of his long awaited report
on the lumber industry in the United
States.
The report was made public today
by the president, who sent it to con-
gresS.
The report is effectively sum-
married. in the commissioners letter
of submittal. His conclusion, in
forecast OF the future, partakes of the
sensational
"There are many great combina-
tions in other industries says the
commission, whose formation is
complete. In the lumber industry, on
in the making, combination caused
fundamentally by long standing
public policy. The concentration al
ready existing is sufficiently impress
sive
''In the last forty years concentra-
ton has SO far proceeded that 1875
holders, many interrelated, have
practically one-half OF the privately
owned timber in the investigated area
(Which contains 80 per cent. OF the
timber Of the whole.) This formid-
able process certainly involves grave
future possibilities OF impregnable
monopolistic conditions, whose far
reaching consequences it is difhcul,
to anticipate fully Or to over-esti-
mate"
The commission reserves for {
later report the subject Of combina
tions in the manufacture Or sale O.
lumber Gas distinguished from owner
ship of standing ti1nber.)
Following is substantially the full
text of the letter summarizing tn,
report:
"The foremost facts are:
81, The concentration of domi
mating control of Our standing tim
Der in a comparatively few enormou
holdings, steadily tending toward
central control Of the lumber bust
ness
"2. Vast speculative purchase AM
holding of timber land far in advanc
of any use thereof.
80 An enormous increase in tn
value Of this diminishing natural re
source, with great profits to its own
ers. This value, by the very natur
of standing timber, the holder did nc
create.
"These are the underlying facts c
tremendous significance to the publ
welfare They are primarily the re
suits of our public land policy lon
continued. The laws that represer
that policy are still largely operativ,
The past history and present statu
of standing timber drive home upo
us the imperative necessity of revis
ing our public policy for the futur
management Of all our remaining M
tural resources.
"Only 40 years ago at least three
fourths of the timber now standin
was Git is estimated), publicly owne,
Now about four-ffths Of it is pr
vately owned
"The great bulk OF it has passe
from government to private hant
through (a) enormous railroad, can
and wagon roads granted by the fet
eral government; (b) direct govern
ment sales in unlimited quantities
$l.25 an acre; (c) certain public lar
laws, great tracts being assembled
spite of the legal requirements Il
small holdings.
"Such laws were wholly inappr,
pirate to forest regions; but thoue
vigorously condemned in several pul
lie reports, they are still largely
force. In theory they were intendt
to distribute the public lands in sma
tracts as homes for free holders,