Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-01-11
GOVERNMENT PROBE
OFLUMBERBUS|NESS
EXTENDS To SOUTH
Special Attention Given to
YeeIIow Pine Industry in
Investigation of Building
Costs

WASHINGTON, Jan. 10.-A gener-
al Investigation of the lumber indus
try, and more particularly of the
yellow pine industry in the south, is
being conducted by the department
of justice to determine whether there
have been violations Of Sherman anti
trust act, it became known today aft
or the federal trade commission had
transmitted to congress a copy of a
report on the activities of organiza-
lions of lumber manufacturers, which
it has prepared at the request OF
the department Of justice. The in
formation was sent to the senate and
house on the assumption by the COM
mission that it might be useful to
the senate committee on housing and
reconstruction, which has been tnves-
tigating building costs and other mat
tiers.
Frank K. Nebeker, assistant to the
attorney general, said today that the
departments inquiry into the lumber
Industry was not directly connected
with the Lockwood building investf-
cation in New York and he indicated
that it had been in progress for
some time.
Numerous extracts from CORE
spondence, said to have passed be-
tween officials of regional organiza-
tions, are given in the report to sup
port the commissions charge that
Issuance of price lists from time to
time was an established practice"
Price Advances Reported
It is set forth in the report that
four days before the expiration on
December IS, 1918, Of the maximum
prices on lumber fixed by the war
industries board, the Southern Pine
association met at ST. Louis. The day
after the meeting, according to the
report, a representative of the Ed
ward Hines Lumber company, of
Chicago, wrote Mr.. Hines in part as
follows:
"All those in attendance reported
that their stocks were 60 to 70 per
cent under normal, and all expected
to advance their prices on the 23rd,
that is to say, the advances run
va
the exception of timber"
While no reference to price dis
cussions was contained in the Of
ficial minutes of this meeting, the
commissions report says an examina-
ton of the files of "some prominent
manufacturers" revealed a transcript
describing the meeting, attached to
nh
bearing the printed signature OF the
secretary of the meeting.
Table of Profits
Contained in the report is a table
showing average realization, aver
age costs and average margin per
1000 feet of the Kansas City group
Of southern pine manufacturers for
the years. 1915 to 1919. inclusive,
and average price and margin for
May, 1920, as compared with average
costs for the first three months or
1920" This table shows that in 1913
the realization was S1.09 below cost,
that in 1916 it was s1.9S above; in
1917, s6.42 above; 1918, S6.41 above;
1919, 1894 above, and in May, 1921,
62635 above.
Chairman Thompson, in his letter
, Of transmittal, says the documents
submitted merely are informative,
and should not be regarded as COM
pretending all the information with
the commission"
It is set out that the lumber man
ufacturers in the approximately ten
different lumber sections of the
country have organized regional as
sociations, which have formed the
National Lumber Manufacturers as
sociation with headquarters at Chi