Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-07-18
DENIES PROF|TEER|NG
IN A|RPLANE SPRUCE.
Captain McGrath Retutes
Charge U. S. Paid Exorbitant, !,
Prices for Lumber
ONLY BEST USED, HE SAYS

Denial of charges that exorbitant
prices were paid by the government
for spruce lumber and that only
small percentage was available for air.,
plane use. is made today by Captain
r.. j. McGrath, Oak Lane. a certified
public accountant. with offices in the
Colonial Trust Building.
Captain McGrath. in his connection
with the United States air service.
spent several months in the lumber
camps of the Northwest investigating
accounts and was in position to know
exactly what prices were paid as well
as the quality of the wood furnished
ana the conditions attending its cutting
and preparation for use.
1T is untrue said CAPTAIN Nc.
Grath, that the government paid $3.50
a thousand feet for spruce lumber. only
. per cent of which was available for
airplane use, when private lumber men
were selling the same grade for SITS
q thousand feet
Accounts Compiled
nder my direction the cost ac-
counts of the spruce production divi-
sion of the signal corps, which later
became the United States Spruce Pro-
durt1on Corporation, were complied.
Instead of $3.50 thousand feet be-
ing the average cost of airplane lum-
Der TO June 30. 1918. from the be-
ginning of operations the cost approx
mated $3.50. Afterward it grew less.
This $3.50 includes S120 for amortiza
ton Of special facilities. which had to
be constructed and which. it was pro-
posed by amortization, to repay in ten
or eleven months
I'm addition must be deducted the
side cut lumber unsuited for airplane
purposes, which we estimated at SIS a
thousand feet
The $500 criticized cost was an al
located billing price for the very best
lumber. and was so fixed to reflect the
value of that grade over lumber that
could be used for airplane purposes
but did not have to be such perfect ma
tcrial.
1T cost as much as to get out Grade
a. commercial lumber, because the gov
ernmcnt demanded straight grain. free
- As to the allegation that only ) per
cent of the lumber purchased was avail
able for government work, this must
apply to spruce production purchased
from private concerns before the gov
crnment began producing the lumber il.
self.
Economy in Long Run
The lumber at the Vancouver cut-
ting plant ran 40 to 90 por cent ac.
ceptablc. This was real economy in
the long run. The government went into
the proposition of cutting and prepar-
ing its own airplane timber, because
private lumber concerns wouldn't
touch much of the business. They
could not supply the demand and the
difficult conditions attending the work
of Telling and transporting the stock
were too much for them. The country
from which the spruce is gathered IL
wild, the roads are bad and rains are
frequent. i have seen horses laboring
in mud up to their bellies hauling the
timber to the mills.
The government did selective log
ging 1t went into tract. spotted
the others standing. ..
consequently it got the pick Of the
mate ialS where commercial concerns in
the same business would clear an entire
tract.
''Criticsm that is being made that
concerns outside of lumbermen were en-
gagged by the government appear to
me to be ilfounded. 1t might apply
as well to Mr.. Schwab. who had never
built ship. or Mr.. Lyon. who had
never built an airpane. In the press of
war necessity such men as were avail
able were selected.
Changes in policy we're due to
changes of necessities. The Allies de-
manded more airplane lumber. When
conditions were explained to the al
lied governments as to costs they were
satisfied
My statements to the War Depart
ment showing costs up to June 30, Tuly
l. and August 81. 1918. with average
.osts thereafter will verify these state
ments. and l think, will answer all
criticism