New-York tribune., 1919-04-20

Many lumber men who attended the
annual meeting of the American Lum-
Der Congress and the National Lumber
Manufacturers Association conVen-
tion in Chicago last week were Of the
opinion that the price Of lumber is go
ing still higher. The legislative com
mission investigating prices OF mate
rials was in Chicago during the ses-
sion OF these organizations. Before
the commission the lumber men said
that conditions caused by the the
great demand for lumber needed abroad
and the increase in wages-were the
principal factors for an Increase in
stead of decrease in the cost OF lum-
ber this summer.
Charles II. Keith. of Kansas City,
Mo, chairman of the associations com
mittee ON Federal relations, said he be
licVed the advance in price would be
one-third over present prices before
the end of the fall season,
"Ihe cost Of production has mounted
2l7 per cont" Mr. Keith sad; 'morc-
over, we face the loss OF l03 900 600, 600
feet accumulated in Europe curing the
Hungary used TO furnish 30 per cent Of
the worlds supply, and Russia wall be
out OF the market for al least four
years, Production in the United
Statca likewise has fallen to 20 per
cent of tho prc-war output. The reason
~ sn insufficient government price and
the taking of the most efficient en-
ploycs into national service
Operated Mills at Loss
Mr.. Keith told the Legislative com
mission that III April. 1910 the aver
age cost Of producing Southern pine
| lumber was Sl51S a thousand feet
while the cost in January, 1919, had in
creased to $25.S5. Last January the
commodity was sold by the manufact
urers at a loss, the witness said, while
the present profit was a trifle over s.
a thousand feet. He presented q sur
vey Of the cost of production at ninety
six Southern mills, which he sale
should earn a profit of 50 a Thousand
feet in order to bring fair return or
the actual capital invested.
Wage Increase Produces Ineffciency
He told of one Texas mill where Tho
increased wages granted had aggre
gated IS per cent in two years. De
spite this large increase in wage
!
before the war. Increase in wages anC
inefliciency of labor, he said, had in
creased the labor cost in production a
this mill 217 per cent
although the lumber mills in the
South are paying their workmen un
usually high wages our experience ha:
shown that the standard of living ha:
not increased and labor is much les.
efficient than formerly said Mr.. Keith
at seems to be peculiar trait of hu
man nature that the more money {
That rule, believe, applies TO al
classes of men, Office employees, super
intendents and laborcrs alike.
"lf man is earning just enough t
keep him he will work steadily. but il
he can earn enough for his wants II
| two days a week the tendency is fol
him TO lay off The rest of the time
This is rather an unfortunate de
duction to draw" remarked Chairman
John Daley. 1--WE have been undei
the impression that higher wages /,
labor brought higher degree Of ef
ficiency."
"I am drawing my conclusion from
actual experience OF lumber mills
based on figures taken from the books
and therefore there is no theory il
what ! say replied MIR. Keith.
Reasons for Higher Prices
Roger T.. Simmons, who was sent t.
Russia in 1917 as member Of
United States government commission
to study the lumber situation IN tn
war dcVasted countries. and who va
taken prisoner BY the Bolshcvik gov
ernment and at one time sentenced t
be shot, told the commission that tn
world was facing lumber famine.
MHricns of luna herv he said. "ar