Polk County observer. (Monmouth, Polk County, Or.) 1888-1927, 1915-08-17
TOO MUCH SPECULATION
TRADE COMMISSIONERS CON-
DUCT INVESTIGATION.
Lumber Industry Blamed For Many
Business Troubles Found by
Government Inquiry.

ONtIpIOuucLlOU ana OVerSpeculdblOu
in the lumber business seems to be
the substance of business ills Of the
state, as found at the Federal Trade
commission hearing at Portland on
Thursday. The trade commission is
conducting Investigations with mer-
chants and manufacturers in the prin-
cipal cities of the nation, and at
tempts to prescribe remedies for the
troubles it finds. That the lumber
business is principally responsible for
the states commercial and financial
debility, and that the industry is on
a precarious footing, is the concensus
of opinion of those who were con-
cerned at the hearing, and the men
behind Oregon's s chief commercial re-
source are to blame. They have trif-
ed with credit, and have speculated in
lands beyond all reason This spec
ulation was aided while there was a
great demand for timber, according
to w. D. Wheelwright, president Of
the Pacific Export Lumber company,
but when the slump came in the mar
ket the lumberman was forced to lose
either by shutting down his mill, or
by running ON short time. The lum-
bermen are due for thorough regen-
Grafton; they are compelled to pro-
duce, whether or not there is a mar
ket, and our greatest need at this
time is merchant marine to open
new markets to take care of the pro-
duction since so many markets have
been closed by the war. Overproduc-
ton, said the speakers, was natural
result of the lack of a uniform sys-
TEN of accounting, without which
small mills cut prices and fail to
keep proper tab on their output.
In many lines the state is in good
condition." said A. L. Mills, presi-
dent of the First National bank of
Portland. Farmers have an enor-
nous wheat crop ON their hands, for
which they will receive at least IS
cents bushel Cayuse ponies that
formerly sold for $25, bring $125 at
war prices. Lambs that you can al
most cover with $5 bill are selling
for $3.50. All agricultural markets
are in fine shape. The one trouble is
with our one great industry-the lum-
ber business. Mills are running at a
loss. Something is wrong. You can
see how vitally this affects us when
1 tell you that from so to SO per
cent of our labor depends on the
lumber mills. Another big question
that stares us in the face is that of
securing ships for the expectation of
our record wheat crop. AS result
Of the opening of the federal reserve
banks the country is swamped with
money. There is no shortage Of capi-
tai. We had plenty to move crops
last year and are willing to let the
lumberman have capital. The only
sign the average mill man has to tell
him whether or not he is making
money in his year-end balance. He
must have a standardized system of
accounts, by which he can tell at a
glance how much it costs him to man
ufacture his lumber. This war has
affected us seriously in the lumber
business as regards freight and mar
kets. 1t has cut down the number of
ships and narrowed the demand. 1t
has also hurt exchanges"
The hearing at Portland lasted on
Iy one day. The members of the
trade commission who appeared at
the meeting were: Joseph E. Davies,
awyer of Wisconsin, chairman; Ed
ward N Hurley, manufacturer of Il
inois, vice chairman; William j.
Harris, Georgia banker; Will H. Par
y, banker, Washington state; George
2ublee, New Hampshire, lawyer.