Pine Bluff daily graphic., 1916-07-09
LUMbERMEN ASK FEDERAL HELP
 FOR INDUSTRY
Pine Manufacturers Saw Competition Should Be
 Regulated.

Washington, July S.-Thc appeal of the national lumber manufacturers to the federal trade commission for as sistance in cooperative methods to conserve the nations future supply, as presented in brief by L. C. Boyle of Kansas City, counsel for the Ma tional Lumber Manufacturers assoca- ton, makes special ana lysis of the conditions in the South, in referring to the field of operation of the North ern Hemlock and Hardwood Manufac- turers' association, which operates chiefly in the forests of those states
 MT Boyle then declares that the lumber industry has no hostility to- ward the Sherman antitrust law, but does believe that it's interpretation should be such that such great indus tries as the lumber business may be permitted to progress with the CO., operation of the units in the industry as long as much cooperation does not constitute restraint of trade. Co., operation under government regua- tion to prevent abuses of destructive competition is asked, and he then analysed the situation in the country. to show the need of active co-opera- tion, for the protection of the nation S forests against destruction by unregu- lated competition.
 Southern Pine Conditions.
 In reference to Southern pine con ditions the brief says:
 Living prices under present con ditions cannot longer persist, and this in spite of the most efficient organiza- tion ever enjoyed by yellow pine inter- eStS.
 "Figures show that during the months of December, January and February, the stocks of lumber of the Southern Pine association mills in creased 190,O99,946 feet, and report shows that the stocks of lumber for the month of March increased 5S,412,- 464 feet, making the total increase in stocks during these four months 24S,- 512,41O feet. This increase in stocks has absorbed all the rduction in stocks of lumber that occurred last year.
 "The result of this accumulation of stocks is causing a softening or weak ening of the yellow pine market. "The lumber business is not reason ably profitable on the basis of prices which hay existed since the first of December, 1915, and we are again con fronted with the proposition of accu- cess of consumption, which will prob ably result in lowering of values. Facing Reduction in Values.
 "The situation in the South, coupled with that on the Pacific coast, would condition, or are rapidly approaching | fho ,,,,1occ ,e- done in order to keep the supply and serious reduction in present values, reasonable basis.
 that 3.21 per cent over-production, values 35 3-4 per cent, and this in spite of the fact that a reasonable re- turn had not been received on invest cline started
 Assuming a ten-year life of twen- ty-eight typical companies the data 708,200 feet. This, based on stump amounts to $114,924 ,53S.9O, and this, l CASluSiSC O1 SCOCho O1 lulilUcI, IllcI = chandise, logs and accounts receivable.
 At 6 per cent per annum return on this investment should net $6,859,- 471.93. In four years, if these com- panies had earned per cent on their investment, their net earnings would have equalled $27,437,88772. As against this, we actually have $174,- 404.62.
 Que to instability, the natural result of unrestrained competition under given conditions, there has been an annual waste of yellow pine equal to 4,155, 500 feet. In money value, $26,857, ,355.25. In three and one half years, the waste equal one years consumption of the wood. Students of the problem may differ as to the ex- tent of the loss, but all agree that an unnecessary and wicked waste results. 1 .J.1