Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-02-11

Experts of the forest service have
just completed. with the cooperation
of the federal
Investigation Into trade commission
Lumber Industry. an anu ,o ~. n and
domestic commerce. a thorough inves-
tigntion into tho lumber industry Of
the United States. The purpose of the
study, officials say, was to obtain the
facts necessary to an understanding of
the industry and tho further develop
ment of the public forest policy. The
opinion has been reached, through the
study, that the industry seems to have
boen built up beyond the needs of its
market. for at least third OF its saws
are idle 1t is carrying, at the present
time. an installed mill capacity of ap-
proximately III billion feet per annum.
as against an estimated cut in 1914 of
4o.5 billion.
1t Is the contention OF experts Of the
forest service that lumbermen have
frequently overcut their market. Less
than living prices and waste of raw
material therefore, are the result. the
rise in lumber prices, 1t was FOUND,
though very marked during the ten
different from that of most commodi-
ties; since, 1907 lumber has fallen be-
hind.
There IS no question, say the men
who carried on this investigation, as to
tho competitive character of lumber
production in the regions studied. This
is evidenced, they say, by marked nuo-
tuations in mill prices from year to
year and the recurring years, when
prices have been forced to points which
y l;N-{p
many manufacturers. Competition be-
tween individual mills was found to
extend even to plants in the same own :
ership. The overstocked lumber Yards
of 1914 and 1915 brought many strik-
ing illustrations. they say. of inter-
regional competition Competition tend
encies have increased in the distrtbu-
ton Of lumber during the last fifteen
years it is said. but competition in
distribution Is unquestionably less rig
orous. It was found, than in manufac-
ture.
It has been found that too great bur-
den of timberland Investments Is the
first cause of the present instability IN
capacity, poor financing and low ay-
erage efficiency in manufacture and
merchandising add to Its weakness.
The combined result is an Establishment
Of lumber production to the requirements
Officials of tho forest service say
that expansion in the manufacture of
forest products in regions of large
timber resources will depend upon the
growth of their own population and
Of their agriculture. shipbuilding and
other industries: upon building up
their foreign trade; upon replacing
other regions in supplying present
markets; upon developing new uses of
lumber and new or specialized forms
Of service to consumers, and upon the
use of timber for other products than
lumber.
The lumber industry has been sue
cessful in some cooperative enter
prises, particularly in number of
selling agencies, in the development of
manufacturers associations. and in re-
cent advertising and trade development
campaigns. In other words, it is be-
lieved that there are excellent posi-
bilities Of self-help within the indus
try itself.
In recommending helps the experts
say that better financing and account
ing Is perhaps the first step. Cost and
waste. they say. can be saved through
better equipment and technical meth
DDS and through more effective han
ding of labor. Merchandising has it's
opportunities. particularly, say the ex-
perts. In more direct distribution and
in making the manufacturer, in one
way or another, q factor in retailing
his own products. There is also prom
ise Of future economies through closer
use OF raw material for by-products.