The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-02-15
SEES TIMBER MONOPOLY NEAR
SMITH REPORTS ON (ONCEN-
TRA7ION or U\ERSVIP.

& Commissioner OF Corporations Finds
Nearly Az the Privately Ow ned stand.
Ing Trees I'm the Hands OF Few, and
Most OF Them Related In Business.
WASHINGTON. Feb. 14.-Herbert Knox
Smith, Commissioner OF Corporations
has made a partial report upon his in
yestigation of the lumber industry in
this country The report, which covers
only the natural supply end of the lum-
ber business. was forwarded by the presi-
dent to Congress to-day. The Commits
sioner finds huge monopoly in the very
act of making. Here are his own words:
In the lumber industry the bureau finds
now in the making a combination caused
fundamentally by a long standing public
policy. The concentration already exist
ing is auflciently impressive. Still more
impressive are the possibilities for the
| future.
In the last forty years concentration
has so proceeded that l05 holders. many
interrelated. now have practically one
half Of the privately owned timber in the
| Investigation area, which contains 80 per
cent. OF the whole property. THIS formid-
! able process Of concentration in timber
and in land certainly involves grave future
DOsSIDllltleS OF lUlDTtHudDio hohopoiiSsiN
conditions, whose far reaching conse-
auences to society 1t is now dif,cult to
anticipate fully or to overestimate.
Commissioner Smiths report on the
lumber industry was made in response
to joint resolution Of Congress asking
him to ascertain the cause of the high
price Of lumber and especially IL there
was any humber trust or combination.
The Commissioner gives these three
opinions as result OF his investiga-
ton:
/. The concentration OF the dominating
| control OF our standing timber In COM
paratively few enormous holdings steadily
tending toward a central control OF the
| lumber industry.
2. Vast speculative purchase and hold
ing OF timber land far in advance OF any
use thereof.
g. An enormous increase in the value
Of this diminishing natural resource. with
great profits to its owners. This value by
the very nature Of standing timber the
holder neither created nor substantially
enhances.
The Commissioner says that forty
years ago three -fourths Of the timber now
standing was publicly owned. Now about
four -fifths Of 1t Is privately owned The
great bulk Of it passed into private hands
through railroad. canal and wagon road
grants, through direct Government sales
at SIPS an acre. and through certain
assembling OF great tracts in spite Of the
legal requirements for only small hold.
ings. -,
standing timber has increased tenfold
twentyfold and even fiftyfold. depend
;no ,,nop tho local conditiona Some
examples Of advances are from IS to SS(
an acre, from 81 to $40 an acre. from 81
Ia, $50 an acre. from 81 to $40 an acre
and from 81 to $3.50 an acre.
Mr.. Smith declares that three vast
holdings alone. those OF the Southerp
Pacific Company. the Weyerhaeuser Tim
ber Company and the Northern Pacific
Railway Company. including their sub
sidiary companies, together have 2ss. 900,
OOO. 600 feet. or nearly II per cent. Of ou
, privately owned timber.
The Commissioner says that five-elev
enths of the country's privately owned
standing timber is in the Paciio North
west. California. Oregon, Washington
Idaho and Montana. One-half Of thi
is now owned BY thirty.seven holders
The Southern Pacific Company's hold
. ing is the greatest in the United States
: II has iO5 900 900, 600 feet; the second larg
, est holder. the Weyerhaeuser Company
u with % 600 .0OO. .OOO feet. lhis does not In
d clude timber interests Of the Weyer
q haeuser family and close associates
= The Northern Pacific Railway Compan
Q has 81, ,OOO. 600 600 feet.
g These three holdings" the Commits
sioner adds. have enough standing tim
It ber to build an ordinary five or six room
It frame house for each Of the 10 900 900 fami
o lies in the United States in 1900. Tn
t holdings Of the two railroad companie
II are Government grants and 10 per cent
of the Weyerhaeuser Timber Company
holdings was bought from the Northern
Pacific grant.
In the Southern pine region. the Com
a missioner SAYS. there Ia 634 .OOO, 900 600 fee
OF privately owned timber. but the con
centration is MUCH less marked than i
Is the Pacific Northwest, although there |
d high concentration In the more valuabl
a species. such as the long leaf yellow pin
and cypress.
i Such concentration says the Con
e missioner. in standing timber, II pei
,s mitted to continue and increase. make
- probably q final central control OF tn
;, whole lumber industry
The Commissioner declares that tn