Evening star. [volume] (Washington, D.C.) 1854-1972, 1941-03-13

tive effort comes to the surface. 1t
turns out that this industry actual
" advised the Government as far
back as last September on how to
handle the lumber problem, but its
advice was ignored. Now, however,
the Government has belatedly de-
cided to avail itself of the advice OF
the industry and the situation COM
planned of has been eliminated.
What has happened in lumber
may happen in other industries.
Because the threatened order OF a
priority" in a commodity may
coincide with a rise in price, it is
essential that the public know how
the lack of foresight of Government
officials themselves sometimes brings
on sudden demands for product
and sends the price sky high when
a bit of careful planning and CO.
operation with the industry in ques-
ton would save the situation for
all concerned.
Letter Outlined Plan.
This correspondent has just come
into possession of a letter dated
September Is, 1910, signed by Will
son Compton of the National Lum-
Der Manufacturers Association here,
and addressed to the quartermaSter
general of the Army. 1t outlines a
comprehensive plan for avoiding
price fluctuations in connection with
the unusual demand for lumber for
Army camps and it suggests an or
derby system of deliveries and
method of centralized buying to-
eether with a gradual accumulation
of a reserve or stock pile" This
same letter gives a detailed scheme
to avoid bottlenecks and the evil
effects of decentralized buying by
various Government agencies requlr-
ing lumber. The letter said:
There need be and should be
no profteering in national defense
and in the lumber and timber prod
ucts industries, and, if you find it
practicable to follow the general
policy of procurement suggested,
there will be none" But the War
Department did not follow that pro-
cedure. The lumber controversy
reached a climax in January when
defense officials severely criticized
the lumbermen in public for letting
the situation get out of hand. The
newspapers printed headlines re-
flecting on the lumber industry. The
lumbermen took 1t on the chin and
said nothing. Now has come an
acceptance finally of the advice they
gave last September. 1t comes in the
form of an official announcement
from the War Department which
adopts the very plan the lumber
industry had suggested in Septem-
Der, 1910. Says the War Depart
ment:
"An important step to stabilize
humber prices at a fair level through
acquisition by the Army of an ex-
tensive lumber stock pile was an
nounced by Donald M. Nelson, d.
rector, Division of Purchases, ONCE
of Production Management. His an
nouncement followed meetings of
Southern and West Coast lumber
manufacturers with the Construc-
ton Division of the Quartermaster
Corps. The plan is Endorsed by the
Division of Purchases and the Price
Sterilization Division of the Ma
tional Defense Advisory Commits
sion, whose representative attended
the meetings.
THE stock pile will be built up
with the cooperation of lumber
manufacturers, who have agreed to
make and carry the necessary stock
until the Army calls for it. Prices
were established by competitive bid
ding, and the lumber will be in
voiced and paid for at the time of
shipment.
Stock Pile Is Cushion"
THE Army will continue to buy
lumber in the usual way for current
needs, both under the existing con-
struction program and under any
new ones which may be started.
The stock pile will be drawn on
whenever there are unexpected de-
mands for immediate deliveries;
thus the Army will not have to come
into the market suddenly with large
rush orders, and will not have to
face a possible shortage"
This should have a steadying
effect on the market. Mr.. Nelson
pointed out, and will benefit lumber