The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-01-21
PINE MEN MEET
TO FORM GIANT
EXPORT COMPANY
European Reconstruction
Makes Demand for Billion
Of Feet and BoIShevikiSm
Destroys Their Chance to
Compete With u. S.

compete WIN U. ).
More than 40 members of the South
ern Pine association, representing vast
pine lumber interests throughout the
Southern pine belt, are earnestly con-
sidering the question of the formation
of an export selling combination Tues
day at called meeting at the Hotel
Chisca.
The formation Iof the export COM
pany was urged by Charles S. Keith,
OF Kansas City, Mo, president of the
organization and also chairman of the
committee appointed by the pine men
to investigate the advisablity of CO.
operative development and expansion of
markets for Southern pine and timber
products. 1t was proposed by MIR. Keith
in comprehensive report on his in
vestigations that the association take
advantage of the provisions of the
Well -Pomecene law to combine their
resources in broad way to engage in
foreign trade for the purpose of de-
veloping world trade and of creating
an expanding foreign demand for their
product"
1t was suggested by NJ Keith that
the combination formed by the pine
men not only undertakes to export
lumber products and sell them abroad,
but that they also enter into the busi-
ness of importing foreign products in
order to make it easier for foreign buy
ers TO buy American lumber and lum-
ber products and to secure return car
goes for bottoms exporting American
lumber. thus reducing the cost of ex-
port transportation.
The pine men were thoroughly en-
lightened upon the subject of export
selling by Allen Walker. of the Guar
anty Trust company, of New York, one
of the worlds experts on International
trade, who is now engaged especially
In the formation of American combina-
tions for foreign trade. Mr.. Walker
the advantage of forming one large
export unit, rather than one or two
small units, as no small unit engaged
in exporting has ever been successful
in developing a worldwide trade"
The ocst is too great, and the Ameri-'
can exporter can not hope to meet the
competition of Europeans, of British
French, German and other business men
abroad in the worlds markets, in small
units, he said, for they are in foreign
trade eo4tSbihes aud have been for years.
Mr., Walker declared that the Webb
Pomerene bill gives the American busi-
ness man the first chance he has ever
had to compete on equal terms with
the business men of other countries in
foreign markets"
The great opportunity that Southern
pine men have for the expectation Of
their products was shown by n. G..
Brown, Of the U. S. department of COM
merce,. who has just returned from a
several years tour of European Coun-
tries investigating lumber markets. He
spoke particularly of the Mediterran-
can area and Italy In the former field
and Italy, particularly, he said the de-
mand for lumber had greatly increased
while Austria and the Baltic provinces
Of Russia, which have heretofore sup
pned the bulk of the timber exported
nave virtually nothing to offer, leaving
almost clear field to American lum-
Der exporters in a market of greatly
augmented demand, Italy's normal de-
mand is OO0,000.0 900 board feet of lum-
ber. Mr.. Brown said, but 5000. 900, 900
to 5000, 100000 board feet will be the
annual demand of Italy for the next
few years The Mediterranean coun-
tries, which use a great deal Of lum-
ber and produce little will need 6,00O,-
100000 to 10,000,000,000 board feet an
nually., The possibilities of these fields
are only limited by the bottoms to shin
the timber, he said
There are no lumber stocks mme-
dlately available in Austria, Mr. Brown
explained. This is due to the depletion
Of the Galician stocks by successive
Russian invasions, the present chaotic
political situation, and the difficulty Of
getting labor. The same causes were
mentloned as virtually eliminating the
Baltlc forests of Russia as competition
for American forests products Vast
areas Of the Baltic forests of pine and
spruce, were destroyed during the war,
| and with the reign of Boshevism con-
dltions have become to disturbed indus
trially that 1t will be five years before
the. Baltic forests may again become a
| factor.
Mr.. Walker stated that the Guaranty
trust company and other great Ameri-
can financial institutions have antici-
exporters in the era Of foreign trade ex-
pansion on which is to follow the far
| and established branches throughout
the, world These branch banks, he
said, will enable the American ex-
porter to get the information he needs
as to the credit of the foreign buyer
and to secure the proper financing of
| his foreign trade. The American busi-
ness man will have his own financial
Institutions backing him just as the
Nsn Ths chle ahe GHfman denR has he he said aid
American exporters, is no longer a mat
ter of technique, the questions of credits
and forms, but the only difficulty now
in the way of success is to get the
American MANUFACTURER to throw
aside his provincialism. to forget petty
jealousies and little rivalries and join
with his fellows against the world as
the British manufacturer has, Ex-
port business is organized and devel-
| oped in Great Britain, he said upon
the idea that the British products are
to be sold in foreign markets against
the products of the world. American
| organizations must rise above sef-in-
| terest. and on the basis of American
pride and enthusiasm, make American
products supreme in foreign markets. :"
In this connection he predicted that
| though the pine men might form one
or two or a half dozen export, selling
units, within short time they would
not only be together in one big COM
bine, but they would be cooperating
with all the other lumber interests
such as the hardwood interests.
The tendency of the foreign buyer,
1 he said, Is to buy through one account,
and the more comprehensive an export
selling combination is the better can 1t
cater to this tendency of the European
buyer He spoke also of the tendency
in France and other European countries
undergoing reconstruction to buy col
| lectively. and the answer to this COL
lective buying must be collective SELL
ing. he said.
| Mr.. Walker reassured his audience
upon the matter of bottoms for export.
He said he felt certain that as soon as
the question Of ships and food has
been solved. all the American bottoms
l-1 l. q