Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-01-10
REPORT MIXES
LUMBER MEN IN
PRICE SCANDAL
Federal Trade Commission
Charges Combine to Hold
Up Prices.
DATA SENT TO CONGRESS

WASHINGTON. Jan. 1O.-Lumber
manufacturers Of the country, through
ten regional associations. are able to
control production. stife competition
and so prevent price declines, the Fed
eral trade commission charged in a spe-
cial report today.
The report, with a mass Of seized cor
respOndence to support these charges.
was forwarded to Congress. The evil
dence also has been given to the Depart
ment If Justice 1t was announced.
Particular interest attached to the re-
port because the price of lumber has
been a large factor in the almost com
plete hating Of home building, which
has resulted in a housing shortage and
high rents.
At one period, the Southern Pine Asso-
cis lion, according to the report, pub
Ished a barometer chart of production
throughout the United States with mar
ginaI notes, one Of which reads:
Market acknowledgements produc-
tion.''
SCHEME ON
REVERSED SITUATION.
Had the current situation been re-
versed," wrote the commission, mar
ginal notes would have ueen applied as
follows: Market declining - decrease
production.
The report also contained a descrip-
ton Of an association Of retail lumber
dealers in Chicago, which, it said, parcels
out to each concern a certain share of
the entire retail lumber business Of
that city. This is called the Chicago
Retail Lumber Dealers Association.
When one concern sells more than its
share, It is obliged to pay into a general
fund i certain proportion OF it's profits,
the commission reported, and this is
divided among concerns which sold less
than their shares.
Again the report said that IN Kansas
City a group of lumber manufacturers In
1920 received a margin Of profit Of S26.3J
on a unit Of lumber which cost them
$3.50 to produce. In 1919 the margin OF
profit was only SS94; in 1915, S5.41, and
in 1916 s1.96. This data was obtained.
the commission said, from a. A. Davis.
statistician Of the Kansas City Ex-
change. n bureau maintained by the
Southern Pine Association.
TELEGRAM Is
SUBMITTED.
The commission submitted a telegram
sent from Washington Feb. Is. 1926 by
Edward Hines to Z. G. Griggs of Tacoma
wash
The telegram read in part:
General lumber prices today no higher
and ia many cases not so high as all
commodities that come in competition
with lumber or where used. Farming
community receiving higher prices for
their products relatively than lumber
selling for, and never more able fnan-
cialIy to BUY lumber. Rents in all large
cities have advanced 10 10 20 per cent
hence able to buy. Think would be
serious mistake to offer 10 reduce prices
hut am Of opinion it would show broad
guaged policy to stop further advance,
but not lower prices"
Practically all the lumber used in the
country COMES from ten principal regions
and in each region the biggest manufac-
turers and dealers are banded together
in local organization, the report said.
ORGANIZATIONS
ARE CONNECTED.
These organ ttions are in turn con-
nected through the National Lumber
Manufacturers Association.
The report quoted letters said to have
passed between officials of the various
associations. discussing prices, stocks on
hand. possibilities OF raising prices and
policies toward national legislation.
One Of the officials whose letters were
quoted was Charles Keith, president OF
the Southern Pine Association. The re-
port quoted a letter said TO have been
written by Keith, in which he set forth
a plan under which the Government
would he asked to authorize lumber
manufacturers to limit production as a
move to conserve the national lumber
resources
A letter said to have been written by
Edward Hines argued that "lf the price
Of yellow pine can be maintained, every
thing elSy can take care Of itself"