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WHAT IS WRONG WITH
THE LUMBER BUSINESS?
(From Tho Nation's Business.)
The lumber industry ranks first, in
the number of employees engaged, ol
the manufacturing industries of the
United States. More than $1,000,
000,000 is invested exclusively in
American sawmill plants (of which
there are some 4 8,000) and their ac
cessories. This does not include the
standing timber, or raw material,
which is generally purchased in suf
ficient quantitieo to insure the runn
ing of the plant for fifteen or twenty
years, that is, if the expenditure ol
building the plant is to bo justified.
These bring the figures up to two and
a quarter billions. This $2,250,000,
000 luvested in the lumber business,
involves the employment of 695,000
men, upon whom approximately
3,475,000 people depend.
Far from being a local industry,
lumbering is spread over an enor
mous extont. It is a leading business
in twenty-five states and the chief in
dustry in some fifteen. Under nor
mal conditions it is the largest pur
chaser of farm products. It furnish
es the largest number of freight cars
of any Industry and is second only to
coal, in the actual tonnage given to
the railroads. Eighty per cent of the
gross price of lumber delivered to anj
ono of the great consuming districts
of tho United States goes to labor,
farm products and transportation.
Lumber, it has been estimated, fur
nishes freight aggregating more than
$200,000,000 annually, the largest
amount of freight in dollars and cents
of any commodity carried. When,
thoreforo, there is any large reduc
tion in shipments of lumber, the ef
fect is felt throughout the entire
country very quickly.
That the lumber business is in a
bad way and needs the earnest con
sideration of all those who care for
the condition of American business,
was brought during the recent hear
ings by the Federal Trade Commis
sion for representatives of the lum
ber industry. The hearings were
held during July and August at Chi
cago, Detroit, Spokane, Tacouia, San
Francisco, Los Angeles and Denver.
They were attended by not only the
entire commission but by members of
the Bureaus of Forestry and Market
ing, representing the Department of
Agriculture, and in Chicago by mem
bers of the Bureau of Foreign and
Domestic Commerce, representing the
Department of Commerce.
The condition of the lumber busi
ness, according to President U. If.
Downnian of the National Lumber
Manufacturers' association, "has
becu for the past eight years, ono of
progressive demoralisation. Practi
cally little or no profit has been made
during that period." When tho pres
ent waste of forest resources has boon
considered, there is an actual loss in
the business not only of profit but of
tho original material.
According to Mr. Downman, this
situation is due to "over production'
and uncontrolled competitive condl-j
tlous." The Federal Trade Commis
sion was informed that, not since
1907, has tho railroad industry, one
of the largest consumers of lumber in
the United States "been in the mar
ket normally." There is only fifty
,)or cent of normal consumption by
he railroads. Owing to the war in
Europe the export business, which
usually consumes ten per cent of
lumber production has practically
ceased. Moreover, owing to tho gen
erally depressed financial conditions
during the summer of 1914, build
ing operations throughout the coun
try practically ceased.
"Today the lumber business ts in a
practically ruinous condition." So
Charles S. Keith, presiednt of the
Southern Pine association, nnd one of
the Directors of the National Cham
ber of Commerce, told the commis
sion. The yellow pine Industry Is a
dominant factor in the lumber indu?
Lry of the United States, producing,
as it does, practically forty per cent
of all the lumber in the country. Its
condition, therefore, is representa
tive of the whole. ,
Here, In particular, we see the re
sults of production -and uncontrolled
competitive conditions. During the
calendar years 1912, 1913 and 1914,
the commission was told, the produc
tion of yellow pine lumber has ex
ceeded the consumption by 3.21 per
cent. This results in the accumula
tion of a large excess over normal
stocks of lumber. As a consequence
the price of lumber has fallen until
there has been a reduction In valuer
in yellow pine of 35.75 per cent.
These figures are applicable, It Is
maintained, to the entire Industry.
The direct loss to the yellow pine
manufacturers of the United States
because of forest waste, is estimated
at more than $26,800,000. In addi
tion to this direct loss, labor (basing
figures on the production cost in
1913), loses in wages during these
three years more than $96,000,000.
The transportation companies lose
almost $114,000,000; the lumber
i n i pin' i mm n i n ns in
liiilll
m I mmiiiiniivmiiiiii
ilill!lilllllllilliliilllilllllll,iiil!lil!liy!ifii!ull!
SAX FHAXC1SCO
! ' "I i
!llUuWIIHilUiailll
HONOLULU
"Taps" will Soon le Sounded at the Jewel City.
ExiHMition Round Trip Rates Kxpire Xov. 30. New low one-way
fares to San Francisoo in eftert: $8-); $12.50; $15.00;
$17.50 and $20.00.
SS. "GREAT XORTHKUX" MS. "NORTHERN PACIFIC"
Sailings Xov. 9, 1 1, 10, 20, 23, 27.
le Luxe Trips Between
SAX FRANCISCO, LOS AXGELKS (SAX PEDRO)
and
HILO AXI) HONOLULU, HAWAII
With Stopover at Hilo to See Famous Living Volcano, Kiluuoa,
by Iuy and by Night.
S3. "GREAT NORTHERN"
From San Francisco, Friday, Nov. 2, 4:00 I. M.
From Ios Angeles (San Pedro) Nov. 27, 4:00 P. M.
I-ator Sailings Dec. 10, Jan. 5, Jan. 25, Feb. 14.
Two Daily Limited Trains via the famous water-level North Rank
grade to SHkane, St. I'aul, Chicago and St. Louis.
J. O. DIVENS, Agcnt.S. P. A S. Ry.,
Honlton, Ore.
SAX FRANCISCO,
083-057-005 Murket St.,
C. E. STOXE G. T. M.,
G. X. P. 8. S. Co.
J1 n?A-J
rm raw
A
iSNOWFLAKE SODAS
in the new Family Package
crisp and delicious Snowflake Sodas now
come packed in a sanitary tin cake and
cracker box.
Keep your Snowflake fresh and crisp. Acta as a
useful kitchen help.
At your dealer's. Per box 50c
also in 10c and 25c packages and in bulk
, ' Look for this nam oa every package '
PACIFIC COAST BISCUIT CO.
PORTLAND, OREGON
men lose slightly more than $16,000,
000 (an additional loss to labor)
which they would have had for hand
ling the lumber at the yards. The
loss of labor In the matter of con
struction which would havo been re
corded had this lumber beon utilised,
Is set by tho yellow plno manufactu
rers lit $65,000,000. Finally, the
loss to the manufacturer of tho lum
ber because of forest waste In the
treo totals more than $S9,000,0(tO.
The total economic waste, taking Into
account all of thoao Items, the com
mission was Informed, is $50SJ)00,
000 and over "besides all other ele
ments coming into wusle through
uncontrolled competition and the
effect upon other products and olher
commodities." Put tho other way,
and more graphically, "any uctlou
taken to save the manufacturer the
$S9,000,000 In loss of timber would
mean tho saving to tho people of
$419,000,000 through other aven
ues." The testimony before the Federal
Trade Commission was to the effect
that the remedy lay not in tho ro-J
straining of trade or tho llxlug of
prices, but in "producing by agree-'
ment only as much lumber as tho
market will assimilate under and by
the supervision of tho commission."
For tho uiOBt part, the lumbermen
wero unable to offer uny detlnlto rem
edies for the illness thay complained
of. They put the reuponulbiUiy on
the commission. The business might
get somo help, Mr. Toole bollevoil, il
allowed to curtail production and
meet market demands and to organ
i20 selling agencies under government
supervision.
Summing up tho "suggested helps"
such as the lumbermen themselvei
:nade, Mr. Edward Illnes put the sug
gestions thus: (1) Some means ol
.securing a minimum selling price not
less than the cost of production; (2)
Establishing a real Amciicuu mer
chant marine to compote with ton
nage under foreign (lags; (3) Some
consideration of Cunadian competi
tion; ( 4 ) Withholding government
stum pa go from the murket as much
ts possible; (5 )Co -operative exploi
tation and soiling of lumber at home
and abroad through sales com pun leu
:Dt
DOLLAR Rsy
OF SPECIAL INTEREST.
There Is one paragraph in tho tax
i?.w that is of special Interest at the
present time, the school district, cit
ind county budgets aro now IicIiir
nado up and considered. It was no
Joubt placed In tho law by conn
special interest to reduce r.pccinl and
itlicr levies, and put a stop to exces
sive levies. Tho paragraph we refei
10 reads:
"For each year after 19 1G all such
.ax rates shall be so limited as not to
.evy a greater amount of revenue
Jian tho larger 'amount levied in
ither of tho two yeara preceding
plus 6 per cent."
This lu in direct opposition to the
Jrcgon system and tho sovereign
.ulo of the people which we havo
: card r,o much about la this state.
This clause of the law may in come
nntr.nces bo a good thing, but it mils.
vlSo bo remembered thr.t In mtiklnp
'ower levies It is going to bo c hard
matter to ralso them when somothlui
lrgent In needed. For instance, tak;
.ho road levy of Tillamook county
should the county court by a ponnj
aIru and pound foolish policy, cu.
down tho levy for two yearn, it cur
readily bo. seen how it would hnndl
:?.p road work and the development
if the county. No matter how ur
jjontly needed and demanded by th(
people, this clau:;e la a club over thel:
'lendB. Every levying body should be
onrcful not to fall into tho trap that
Is set for them, for this Is whr.t this
;lauBe is for. Tillamook Headlight
FREE-TRADE RECORD.
Republicans in tho campaign oi
1916 will have no lack of Issues, nt.
shortage of political ammunition, noi
will they be backward in using the
latter and pressing for a popular vcr
diet upon the first.
The failure of tho Democrats to
pass a tariff bill protecting the Inter
ests of the farmers, the planters, the
manufacturers and tho worklngman
of the United States is admitted by
their own leaders, and they cannot
deny that aftor all the years in which
the Democratic party pledged itself
to a tariff for revenue, in 1913, Vhon
it came Into power, It repudiated that
pledge and passed, a tariff bill which
affords no protection and yet which
does not yield a revonub oil melon t for
the nation's uses."
It sacrificed the sugar cane growers
of the south and the sugar beet grow
ers of tho west, benefited the Sugar
Trust monopoly, which controlled the
foreign raw, sugar markets, and the
people of the United Staton, aftor ull
tho Democratic campaign bosh about
giving them lowor ougar, have been
paying for months, and are now pay
ing, higher prices for all the sugar
they consumo than whon Mr. Wilson
ontered the White House as presl
dent.
This the record upon tariff made
by tho Democratic party, nnd not ono
of the members can truthfully deny
tho abovo statement of facts. Co
lumbus (O.) Saturday Monitor.
In Preferred Stock
Groceries, etc.
5 can:i "Preferred Stock" Large WhitcAsparagus
5 cans "Preferred Stock" White Asparagus Tip.i
5 cans "Preferred Stock" Red Salmon.
9 cans "Preferred Stock" Shrimp.
9 can;; "Preferred Stock" Minced Clanu.
7 cans "Preferred Stock" Sliced Pineapple.
13 cans "Preferred Stock" Baked Beans.
6 cans "Preferred Stock" Peaches.
2-lb. roll Butter and 1 lb. Snpcrba Coffee.
" Above values up to $1.50
Special Dollar Day only
Dcn't te afraid to lay in a supply; you will nev
er buy for less.
Peterson's Cash Store
rrrnirniiriiitiiiitiittii)iittmmiiritmmii:imrTiimimiiiit!inni((itiwifiiirnnrin(n
nereis the Answerfin 3
vebstei& i
New International
The Merriam v.tnsnn 1
Every day In your tiJk ami rrmllnf, at
liouie, on thcalri-1-tri.r. hi lliunllirtt, klmp
auU m-IkxiI you liki ly qucMiun II.imii.lii
!.".f..0 ",me """ wnr,l. A fricr.cl bW:
but nuikp nmrtiir Imnli-n?" Von k
Uielnratiunnf .ocAfrfrJnoortlKTrotiiin
cmtion of Jujul.u. v h it in ukilt naif
Tlil New Crmtion mw.-ri all Uinl of
quctlon In Lniiriiiigr.lintory.liii-Taiilir,
Kii tion, Farriim V. or!.. Trnilm, Aru and
oi-ii-ui-cs, wim nnai autnorlli.
4OO.000 Words.
OOO Illustration.
Coat $400,000
2700 Paga.
! The only dlt tlonrvwllh
; the acwiftf'hfalpaffr. t-hnr-
: ai'teriH-u u AMrulto of
Gcniuii."
Mia Paper tdHlMR
! On thin, opnqtt,, atrrma,
' India paper. What a untin-
i fur-lion to own tlicJMtrWan
: Webster In a fotin ao lliflit
and ao ronvriiii tit to um: I
; One half tho tin. kn s and
wcightof lu-ulur tuition.
i Regular Edition:
On atrong (mole mner. Wt,
i UH IIm. biauUMxux
I ainchc.
i wtlUfortpMhMafMM,
antlon tola
pnbuc&UaB
and rl rt
IMII Ml
or pockrt
.
etc.
MERR1AM
CO,
; Sprlnif laid. Mat;
uimiiiuiiiiiiiiiiiiiuuuiliiiiiiiiiii!
mm
il
rjSlllfij
a-JfTTt . aVv ' S'- TJlw!iLM:iUI
4o.
ANXOVNCKMKNT
lliu followliiK prices f. o. h. Detroit, otToctlva Aug
2, 1815:
I'nnl KiiiialMiut ,.$.t(Hi.nfl
lonl Tmirlnir. fur 4HMM.
I i.ril Town far 0-MMH) ,
No Kpncdomott'r Includod In tlila ycar'g
fiiiilini'mt, othorwlHO earn fully ouulpperi.
Thnro can ho no aaauranoa Rtvon aKuliiat an advanro
In thi'Ho prlrPH at any time. We Kimrantoo, how
ever, that tlmro will he no reduction In tlioae prleoa
prior to Aug. 1, 1918.
Anyone can understand and operate a Ford
car. Extremely simple, yet absolutely scicn
vific in every detail. No need of a skilled me
chanic to keep your Ford running. Each own
tr looks after it himself. Doctors, farmers,
I'unincss men, men in every walk of life, enjoy
l'crd service and economy, for a Ford costs, on
the average, but two cents a mile to operate
and maintain.
IMHOI'KNIfKXT AI'TO (l.U.(JK, HU llrloiw, Ore.
See Our Advertisers For
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