otfae Emplofes - of tiie
A community is - prosperous in propor
tion as its payroll-producing interests pros- -per.
,
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In Oregon and Washington lumber p.ays: ;
approximately 60 per cent of aU wages. It ': -employs
more than one hundred thousand
people. ' i;
Employes:! ifcg Liniinoiibsr L2in
. : see to .lie Abie c : : ; .
.- : (StatementNo:,l-SepUmW19,1920)V; ; V'-
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The production of Southern Pine, is twice
siderable portion of "tlje Eastern part of the
United States, j :
For; 'many years to come, thei production
of Southern Pine will be billions of feet ah
nually in , excess-of Douglas Fir. . V vr
The Southern ; Pine; bdf isf far- from 'ex-.
hausted;'
Payrolls cannot be financed unless prod
ucts are sold. Products cannot be sold un
less markets are available.
A serious situation now confronts the
Pacific Northwest lumber industry. It
necessarily will reflect in the economic
welfare and development of every city or
smaller community from California to and
beyond the British Columbia line.
. 1 he twoyoods are sold in:the -same mar
7 Kets east of Denver; and neither the Firj hor
: ( thelSoutiierPihe industry can exist if "Her
nied access to markets such as Chicago and
other; principal lumber-consuming centers.
-Before tHe recent. advance the Northwest
iiGoast rate to Chicago, which is tlie' largest
lumber consuming market in the .world,
I. was 60c per.hundred pounds; yellow pine
h - rate Avas 31 l-2d An increase of 33 1-3 per
rcent has been added to both rates, thus m-
HlcreasingTTHE FIR RATE 20c as compared
. WITH INCREASE FOR SOUTHERN PINE
OF 101.2c-
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No extended statement as to the neceS-;
sity of safeguarding the present or future ;
development and growth of the Pacific;
Northwest lumber industry seemrneces-
sary. . i :
, As to logging, manufacturing and all
processes necessary to, the placing of the
manufactured product on thccars, the two
wobds may be . considered : to be : substan
tially on the same basis.
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The problem most serious at this time is !
the. INCREASE IN FREIGHT RATES da t-
ing from August 26th.
In this statement, and in subsequent
statements, the lumber industry will deal .
with this freight rate problem, but not witli
intent to criticise agencies of transportation, :
governmental bodies which fix rates, or
competing lumber producers. f
The industry will attempt to portray con
ditions as they exist forecasting slightly
as to the future and in any event furnish-
ing the public an accurate basis from which 1
to reach conclusions as to what the lumber
industry needs and must have to exist; as
well as enabling the public to realize1 the
consequences of failure on the part of all.
interested to bring about better industrial
and marketing conditions. , ; ;
The principal product of Pacific North--west
lumbering is Douglas Fir
Its y principal" competitor is Southern .
Pine.
Far the greatest cost in the production .
6f lumber is labor. The South has a lower
wagq, scale andm ten to twelvehbur sarid-c
;f r&; ddy as against a high wage scale" and
an eight-hour standard day for Oregon and
Washington. ; "
Before the percentage' increase, fir was - V
.'fighting for its sjjkre of the business in Chil :)
: , cago for instanceunder ' a freight rate -Handicap
amounting to $6.81 per M. of lum- V
ber. The present increase adds $2.27 per ;
'M. to that disadvantage making- total of
$9.08 per M., whicH FIR WILL HAVE TO
ABSORB IN ORDER TO MEET SOUTH-
: ERNvPINE COMPETITION at. that point. -
:;i:V,"Ur;;th freight rafes fir; jri com-;
. petition is asked io'
absdrbrr
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t AndFir isfapproximately twice as fair as
Southern pine, from the large consuming
lumber markets. - . . . ";.""-.
At ' , ; , Per M Fet
Minneapolis . J V4. , , ; $ . 3.76 . .
Des Moines .. .t. 9.60
St, Louis v :rl'"! ':'!' -1168 -
Kftnsas Cityv .:.j. l.i.i.i.) 8.37-
Per Averase
Car. . ,
$94.00
240.00
-292.00
209.25
That fact should be remembered I as'ljbasA i
the : West ;Cast's distance from -necessary.'
maricets of transportation;';
tKefeltorttiat have been tHe West Coast milli;
;Operatpr!s great obstacle in the past
The recent increase - in freight rates' has, i
in effect; removed West Coast mills still far- y
:.ther from the necessary Eastern markets; ;
and this primary problem-rtrdnsportation
. and ; the cost thereof-rhas , now become
greatly emphasized.- -:
l; Indianapolis J,. . . ,t.v. , M 12.46 : :; 3110
... vUctroit ; . ; . ..f;;.:. . ;M.;.,,; ll;zs t
v ' PitUburp . ; ; 12.12 f 303.00
; New York .V. .,: ; . . 13.11 V 327.75
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llTfiese: afe heavy consuming points of
bom fir and pine lumber, 1
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; v Th approximately ; twa hundred thou-.
J ; : sand cars '.'of Northwest forest products
'shipped iahnually, have heretofore paid, a
; freight bm ;ofv Fi
: . - DOLLARS. If the present increases stand,
Vv there will V be added freight . charges of
; FIFTEEN MILLION DOLLARS, PROVID-"ED-the
same amount of lumber is shipped.
' This provisoes all important to the rail
roads as well as to the shippers. . If we may
" be allowed to make a forecast, :will state
that at the present freight rates lumber will
V
V For years Wjesf Coast manufacturers have :
struggled to; overcome this distance-from-f
.market handicap,, without; much : Vuecess '
'.v until . the war created ,ah opportunity for '
; wider distribution of West Coast lumber: '
and caused thg West, Coast woods' to :be ; -( ntrmovelin Ae same quantities that it has .
: "come. well. and. favorably known in Vcbri--7 -yin past : ' r., ,V:?
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