The Republican journal. [volume] (Belfast, Me.) 1829-current, 1914-07-30
Lumber Industry Investigation.

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WASHINGTON, July q, 1914. The plans
now being perfected for the forest serv-
ice part of the inquiry to be made joint
ly by the departments of commerce and
agriculture into timber and lumber-trade
conditions in the United States provide
for covering entirely new ground.
Lumbermen are now admittedly con-
Quoting their operations with a large
percent of waste, said to be largely due
to market conditions which make close
utilization Improbable. There is no
general agreement as to the actual caus-
es of existing conditions and the respon-
slbility for the present undoubted evils.
With rapidly diminishing supplies Of tim
Der to draw upon, wasteful numbering
has come to be recognized as matter
of serious public concern and an inquiry
to discover the causes and seek for pos
sible remedies is regarded by forest
service officials as an urgent need. 1t is
believed that the lumber industry itself
recognizes the need and will welcome an
inquiry conducted along constructive
lines.
Private capital invested in timberlands,
mills, logging railroads, and other forms
of equipment reach an enormous aggre-
gate and the u nber industry, which-W9
poys 739, 900 persons and has an annual
output valued at 1-6 billion dollars, is the
third largest in the country. In seeking
to realize conditions which will safeguard
the public against wasteful methods of
timber exploitation, possible timber mo-
nopoly, and other Objectionable prac-
tees, while insuring healthy conditions
and fair treatment for the lumber trade,
an understanding of the basic facts is
Indispensable These facts, however,
tirety. 1t is the purpose of the Forest
Service to obtain and interpret them i'm
partially. in cooperation with the other
bureaus assigned to the stndy.
Lumbermen complain that the carry
ing charges created by interest on long
term investments, taxes. and cost of fire
protection where such protection is given
them to operate even where lum-
Der prices will not repay them the costs
involved. The necessity of operatin5
under these conditions is advanced as the
cause of waste; since the mar
ket is most easily glutted with lumber of
the poorer grades, which must then be
left manufactured. On the other hand,
the public complains that the cost of
lumber is so high. Overcompetition may
result in destruction of timber resources
with no commensurate advantage to the
but with the certainty of un-
necessarily high prices later. Yet re-
striction of competition on the part of
with view to greater prof
its for themselves through higher prices
is both contrary to law and highly OBJ .
jectlonable from the standpoint of public
policy. Thus highly complex situation
exists. An attempt to adjust the pres
ent conflict of interests on basis far !
both to the public and to the lumber in
lustry demands full knowledge of all the
facts
Lines of inquiry provided for by the
plans of the forest service include the /
present lumber output and demand, the |
conditions known to the trade as over
the effects upon production |
and market prices of speculation In tim
Der and of carrying charges, producing
and distributing costs, including freight
and the charges levied upon the product
by wholesalers and retailers, and the
amount of waste under present methods
of exploitation. Special attention will
be given to means of utilizing low grades
of lumber and by-products.
1t is recognized that the national for
ests are becoming an increasingly i'm
portant factor in the timber market
through the offerings of government
stumpage, and this aspect of the sltua-
ton will receive careful analysis. Inc
question of future supplies and the need
for the general practice of forestry to
provide them is another important part
of the field to be covered.
From the outset the data gathered by
the bureau of domestic and foreign COM
merce of the department of commerce
will be correatedwith those in possession
of 1he forest service and the bureau of
corporations, to the end that complete
and exhaustive study may be assured.
Importations of timber products from
foreign countries and the possible extern
sion of foreign markets for our own TIM
her arc recoonized az factors which must
be thoroughly considered.