The Western news. [volume] (Libby, Mont.) 1933-current, 1938-03-31
Libby Lumber
Faces Heavy
Competition
.
Freight Handicap and Higher
Wage Scale Curtail Markets
for Local Industry.
MORE STUDY OF
SUSTAINED YIELD

Conditions that are causing the
forest service and other interested
people to work for a sustained yield
from the forests of this district were
again thoroughly discussed at
meeting of the Libby, Commercial
club, at its monthly dinner in the
parlors of the Presbyterian church
Friday night.
President Klehm presided and
opened the discussion concerning
sustained yield plans President
Klehm, who is also forest super
visor, has an experts knowledge of
the subject. He had two large maps.
on the wall showing Lincoln county
and northern Idaho and Eastern
Washington. Mr.. Klehm pointed
out, on the maps, a dozen or more
towns where saWmills had cut out
the timber supply and moved out.
Starting at Eureka, he moved west
ward naming Warland, Troy, Bon
ners Ferry, Standpoint and many 9TH
er places where the lumber indus
try was thing of the past or would
be within the next three or four
years. A few mills are still operat-
ing west of here but their log sup
ply will last only three or four years
at the most, said Klehm. This same
thing will happen in the Libby dis
trict, said Mr.. Klehm, unless this
plan for perpetual supply of logs,
and therefore a continuing lumber
industry, is successfully worked out.
Private Timber Holdings Small
George Stoltz, in charge of tim
Der sales for the forest service, said
there was a huge amount of timber
adjacent to Libby but that rela-
lively small percentage of it could
be profitably used by any saWmill.
George Neils, logging superinten-
dent of the j. -Neils Lumber COM
pany, stated that the company's tim
Der holdings were only sufficient
for about four years operations II
the company is forced to rely solely
on its own timber supply.
An interesting picture as TO the
freight and wage competition the
Libby industry has to meet was set
forth by Walter Neils, general man.
ager of the j. Neils Lumber COM
pany. This information is of vital
interest to everyone in this district
as it shows the stiff competition the
local industry has to meet.
Competition Is Serious
Some of the hardest competition
Libby lumber has to face in the
Chicago and New York markets is
from the South, said MIR. Neils.
There is a huge difference in wages
paid, he said. In the South, SITS
per 10 hour day is paid common
labor; here the minimum wage is
Goo an hour for an eight hour day
But that is only part of the picture
he said. The freight handicap is
also a very heavy one. In some in
stances it is almost to | against
the local product. Here is table
giving comparative freight rates
per hundred weight from the South
and from Libby into the Chicago
and New York markets.
Chicago New Yorl
Hattiesburg, Miss. .40c Acc
Birmingham, Missile Ate
Shreveport, La41c Sic
Libby .....................72c SIC
Similar freight and wage competi
ton is faced from lumber original
ing in the Flagstaff Ariz., area
where low Mexican wage rates pre-
vail. The freight rate from Flag
staff to Chicago is sac, to NeS
York 80c. That compares to Lib
by's TIC and &c per cWt.
Against Lower Tariffs
MFR. Neils also spoke against til
policy of the present administratio
in reducing tariff rates on Canada
lumber coming into the Unite
States and said it would curtail pr
duction in the United States veI
materially. The freight rate fro
The Pas, Man, to Chicago is 45c
against the Libby rate of TIC. Cal
adian wage rates are also much b.
low the wages paid here, he sal
There the hour rate is about 81
compared to Coo here. Some tin
ago there was a marked reductit
in tariffs on Canadian lumber, NJ
Neils said, and any further redu
ton would be most serious.
j. +. Fennessy, sales manager
the local company, said competitive
from the South and Canadian mi
had closed the Chicago and Ne
York markets to the lower grad
of lumber from the Libby mill. TIL
the local mill has to dispose of
lower grades entirely within Nc
tana, he said.
A number of foremen from va
Gus departments of the local sa
mill were present at the Frid
night meeting, and one of the ch
objects of the meeting was to G
out further information concernl
the sustained yield program Il
is being worked out and the Vi
Importance it bears to the continl
prosperity of this district.