The Washington times., 1911-05-20
/ LUMBER INDUSTRY
AT BAR OF JUSTICE.
Suit Filed in New York Is Believed to Be Only Begin
nng Interesting Revelations Being Expected When
Inquiry Is Instituted in Northwest
By JUDsoN c. wELLIvER.

Next only TO agriculture and the rail-
roads in the volume Of capital invested.
the huge lumber and timber industry
of the country now stands at the bar of
the Federal courts, waiting for judicial
determination whether its methods i'm
pose unreasonable" restraints on inter-
state trade.
The Government has fled suit at
New York against a group Of lumber
dealers associations In the Eastern
States. These include the Eastern
States Retail Lumber Dealers Associa-
ton. New York corporation. the CEN
trail body Of the nine other defendant
organizations; Richard S. White, of
New York; William C. MacBride, OF
Philadelphia, and Louis A. Mansfield. of
New Haven, its officers; and its direc-
tors. including William T. Galliher, Of
Washington, D. c.. and the following
subsidiary organizations and their Of
ficers and directors:
The New York Lumber Trade Associ-
alton, the Building Material Mems As
ISOLATION Of Westchester County New
York;, the Lumber Dealers Association
OF Connecticut, the Massachusetts, Re-
tail Lumber Dealers Association, the
Lumber Dealers Association of Rhode
Island, and the Retail Lumber Dealers
Association of Baltimore, together with
the officers and directors of the fol-
lowing volunteer associations: The New
Jersey Lumbermen's Protective Associ-
alton. Retail Lumbermen's Association
Of Philadelphia. and the Lumber Ex-
change of the District Of Columbia.
1t is stated that this action is likely
TO prove only the beginning. All over
the country extends a great system of
like organizations. There are associa-
tions of wholesalers, of retailers, of
manufacturers; white pine associations,
cypress associations. and a powerful
Social organizations are maintained
for the purpose, 1t is alleged, of bringing
the members together with apparently
Innocent purpose. but really for the
the conduct Of business and determining
price bases.
The defendants in this action consti-
tute only small proportion of the or
ganizations throughout the country that
are believed by the Government to be
involved in conspiracies in restraint Of
lumber trade. There are half score or
more of great associations which in
clude groups of States within their op-
erations. Above these stand the great
them are hundreds of local organiza-
uons. These range all the way, II Is
stated, from an organization Of the re-
tail lumbermen In a city ward, for the
purpose of dividing the trade and fixing
prices, up to city, county, district. and
State associations for the like purpose.
National Association.
Methods by which prices are main
tanned have been investigated In the ut
most detail, both by the Department of
Justice and the Bureau of Corporations.
One feature of the inquiry has touched
upon the relations of the National Lum-
Der Manufacturers Association to the
various organizations of dealers which
are alleged to exist largely for the con-
troll of prices. The headquarters Of the
National Lumber Manufacturers Asso-
citation is at st. Louis, George K. Smith
being its secretary. This organization
makes each week compilation of
prices, gathered from dealers all over
the country, showing, or purporting to
show, the prices at which they have
been selling lumber during the week
covered by the report.
Some misgivings have been aroused
as to whether in fact this circular is
merely a report on prices charged in the
nouncement of a price basis which is
intended to be followed in the future.
If the latter, it is of great importance
as suggesting the location Of that most
elusive phenomenon in connection with
the lumber trade, the central price-mak-
ing intelligence.
II is pointed out that there is a vast
and essential difference between the
Lumber trust and the Standard Oil or
Sugar trust. There is no centralized,
corporate ownership Of the lumber busi-
ness. The tendency to centralized own
ership of standing timber has been
marked. and its results very important
in late years. Put nothing like great
holding concern, such as
Standard Oil. has ever invaded the lure-
Der business.
Thus, If there is anv central price
organ. it represents simple
A corporation is not a con.
spiracy, because 1t takes two to conspire.
There are plenty Of diverse interests in
lumber to conspire; and the Government
is going to prove that they do conspire,
If II can.
When these cases get out TO the
Northwest, where combination of the
lumber industry began, it will lead to
cdifying inquiries into the Ancient Order
of Hoo Itoos. This is a famous social
limited in membership to