The chronicle=news., 1914-07-25
LUMBER INDUSTRY INvESTIGA.
TON 70 BE ALONG NEW LINES

TON ~ BE ALONG NEW A&kS
Washington. July 25.-The Plans
now being perfected for the forest
.service part OF the inquiry to be
made Jointly by the departments OF
commerce ana agriculture into tim
Der and lumber trade conditions In
the United States, provide for cover
ing entirely new ground.
Lumbermen are now admittedly
conducting their operations with a
large percentage OF waste, said to
which make close utilization un-
profitable. There Is no general
agreement as to the actual causes OF
existing conditions and the respon-
sibiiitv for present undOubted evils.
With rapidly diminishing supplies OF
timber to draw upon, wasteful lum-
bering has come to be recognized as
matter of serious public concern.
and an inquiry to discover the causes
and seek for POSSIBLE remedies ia re-
garded 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 alng constructive lines.
Private capital invested in tim
berlands, mills. logging railroads.
and other forms OF equipment reach
an enormous aggregate and the lum-
per indsutry, which employs 739,OOo
persons and has an annual output
valued At one and One-sixteenth bill
lion 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
monopoly. and other Objectionable
practices while insuring healthy con-
ditions and fair treatment for the
lumber trade, an understanding OF
the basic facts is indispensable. These
racts. however, have never been as
certained in their entirety. 1t Is
the purpose OF the forest service to
obtain and interpret them Impair
TALLY, in cooperation with the other
bureaus assigned to the study.
Lumbermen complain that the
CARRYING charges created by interest
on long-term Investments, taxes, ana
cost of fire protection where such
protection IS given compel them to
orerate even where lumber prices
will not repay them the costs in
volved. The necessity OF operating
under these conditions is advanced
as the principal cause OF waste since
the market is most easily glutted
with .slumhar of the poorer grades.
which must tLen be left unmanufac-
tured. On thl other hand, the pubic
complains that the cost OF lumber Is
so high, Overcompetitton may re-
suit in destruction OF timber re-
sources with no commensurate ad-
vantage to the consumer but with
the certaintxyor unnecessarily high
(pricsA later. Yet restriction OF com
petssson on Nseseart OF lumbermen
with a view to greater profits for
themselves through higher prices Ia
roth contrary to law and highly OBJ
iectionabla from the standpoint OF
public policy. Thus highly com
rlex situation exists. Any attempt
to adjust the present conflict OF IN
terests on basis fair both to the
pubilc and to the lumber industry
demands full knowledge OF all the
facts.
Lines of inquiry provided for by
the plans OF the forest service m
clude the present lumber output an"
demand, the conditions known to the
trade as overproduotion, the effects
upon production and market prices
of speculation In timber and OF car
rying charges, producing ana distrib-
uting costs including freight anu
the charges levied upon the product
nv wholesalers and retailers, ana
the amount OF waste under present
methods CT exploitation. Special
attention will be given to means OF
utilizing low grades OF lumber and
by-products. .....
| II is recognized that the national
forests are becoming an increasingly
| important factor in the timber prod
uct market through the offerings OF
government stumpage, and TINS as
meet OF the situation Will receive
| careful analysis. The question o'
future supplies and the need for TIC
4 general practice of forestry TO pro
1 vide them is another important par'
4 of the field to be covered.
from the outset the data gathereo
by the bureau OF domestic and LOT
eign commerce OF the department o.
\ commerce will be correlated Witf
those in possession OF the forest serV
/ ice and the bureau OF corporations
4 to the end that complete ana ex
II ..,.+;yo ctduv NAV he assured. I'm