The Birmingham age-herald., 1915-09-30
FARM IMPLEMENTS ]. AND LUMBER NOT AFFECTED BY LOAN These Two Industries Can Get No Direct Benefit
 From the War LAYING PLANS FOR
 FUTURE BUSINESS Few Realize Enormous Capital h. vested in Lumber Industry
 in the United
 States
By HOLLAND

fcially affected. al least for long time. | through the successful negotiation of the loan to England and France Jointly. This is understood to be the view which | Is taken by some of the leaders in the nnancial district One of these indus tries will, it is presumed, find large de-
 mands upon 1t from foreign countries soon after the European war is ended. This is the industry occupied with the
 manufacture of farm implements. Not until the work of upbuilding begins in the countries which are now occupied With war will there be demand for 1arm implements Until the war began, this industry was increasing it's ex- port trade in such manner that it was possible to compare it relatively with the increase in the exports of iron and l steel commodities. But for the present it must depend entirely upon domestic demand, supplemented to some extent by exports to South America
 The other industry which is not likely to be affected in one way or another by any stimulus which the placing of | the loan with Great Britain and France I may exert upon other industries and furthermore. is not likely to be stimu- l lated greatly after the war closes. Is the lumber industry unless there are great changes established in it's busi- ness methods
 When James J. Hill was working out r-reachfng plans for profitable busi- ness for his railroads, one of the chief features was the transportation of lum- Der. In one of his addresses, delivered some 15 years ago, he intimated that he hOnpd n ha a o Ior movement of lumber from the north west eastward and then southerly by affiliated railroad lines. He expected to average transportation easterly and westerly largely by movement of lum- ber At that time, tine lumber industry was fiourishing, although it had been practically ended on the northern penin- sula of Michigan because the pine tim Der had been cut off. Whoever made ex- cursfons in the valley of the Connecti- cut river last spring must have noticed the movement of logs down the river to the sawmills. It was reported by ex- cellent authority a few days ago that some 30,000,000 feet of lumber foated down the Connecticut river last spring. The difference was great between the size and quality of those logs and the logs which some 15 or 20 years ago were fioated down the ricer. For the largest timber was in those earlier Ssti 5 Stiil dNdlldDle TOT tn6 lunlDefnldn. Now the timber is of much smaller size, but enough of it is fioated down the Connecticut river each year to make it certain that numbering still continues upon large scale in northern New Englond. That is true also of Maine.
 Some Is years ago. the late Charles Hebard, in association with the senior member of the firm of Smith & Wes- son, manufacturers of arms at Spring field, established a large timber indus try in northern Michigan. MT. Hebard was certain that the supply of the Michigan pine, unsurpassed in quality and size as it was, was sufficient to maintain his and other lumber iudus- tries for about 20 years. Ills forecast proved to be correct. but he always felt that 1t would have been the wiser part had there been agreement among lumber men to restrict the output each year. MT. Hebard, who was one of the regents of the Michigan State univer- sity, stated informally to his asso- ciates that intense competition and the lack of any agreement to restrict cut ting had resulted in practically de- yastating. within 20 years. the north ern peninsula of Michigan of its pine timber. MT. Hebard, year or two after he was compelled for lack of timber to give up his great plant, which was situated opposite the east
 
 fected plans for developing the cypress timber industry in the great swamps of southeastern Georgia. He died, how ever, before he was able to put the plans in operation.
 Reckless Competition
 Had the policy that MT. Hebard ad- vised been adopted throughout the en- tire lumber regions of the United States. the probability is that this in- dustry would not be demoralized as 1t now Is. It is all the more unfortunate that this condition should prevail In view of the fact that this industry em- ploys a larger number of workmen than any other manufacturing industry in the United States, or did before the demoralization began. The $1,000. .0OO,- 900 corporation occupied with the manufacturing of steel and iron com modities is overmatched so far as capi- tai is concerned by the lumber indus try Capital which in the aggregate is $2,2b0, 900. 900 is invested in this industry and in the past has given support to 100000 persons.
 When the business was flourishing 1t yielded $2oo.0o0,00o yearly to the railroads in payment for transporta- tion. For that reason. the railroads have been to q larger extent dependent upon this industry for income than upon any other single industry. The federal trade commission has recently received authoritative information that the demoralized condition is to be traced principally to overproduction and to uncontrolled trade conditions Apparently if there is to be any inn provenhent in this industry. one of the largest in the United States. 1t must be secured through some modification of the federal statutes, For it is very doubtful whether the law as it now stands upon the statute book would permit any agreement among the lum- Der producers by means of which they would pledge themselves to produce each year only certain amount of lumber. Possibly the federal trade com mission will be Justified in taking such action as will make agreements of this kind legal.
 The commission is now informed that if this great business is to be restored to normal conditions there must be some agreement whereby a minimum selling price of lumber can be fixed, and in the next place there must be permitted combination and co operation whereby lumber can be sold both in the domestic markets and abroad through sales companies This is in line with the Recommendation which the foreign trade council is now prepared to make md probably will bring to the attention of Congress that combination and cooperation be per- mitted among those who are engaged iu export trade, provided this be re- stricted to the export business. Prob ably in no other American industry has the waste been greater or even as