SOME ECONOMIC FACTORS 183 



these prices have never been based on the cost of growing timber, as are 

 the prices of manufactured articles, upon the cost of production, but 

 have been fixed by competition based simply on the cost of manufacture. 

 While the price of lumber is to-day much higher than it was fifteen or 

 twenty years ago, we must realize that a considerable part of this 

 increase is due to the higher cost of labor, and the increased transporta- 

 tion charges, due to the inaccessible position of much of the timber now 

 being cut. While the stumpage price has also advanced, it has not yet 

 any relationship to the actual cost of growing, but only to the scarcity 

 of, and demand for, the particular kind of timber. Only in the case of 

 a few species, which are in particular demand, and which also happen to 

 be rapid growing, are the prices sufficient as yet to cover the cost of 

 growing. Under this heading may be included such species as the white 

 pine, white ash, basswood and chestnut. On account of the serious dis- 

 ease of the latter it can not at present be advised for growing. Other 

 species, which are almost equally in demand, and which sell for nearly 

 as much, can not be grown for their present sale prices because of their 

 slow rate of growth. As examples of these may be mentioned the hem- 

 lock, cedar, birch and maple. The first of these can probably be dis- 

 pensed with, because its place can well be taken by more rapid growing 

 species ; but such species as cedar, birch and maple, which have peculiar 

 qualities of their own, must, if they are to be perpetuated, eventually 

 demand higher prices than the more rapid growing species, in order to 

 compensate the raisers for the greater length of time required. Other- 

 wise, the introduction of some substitute will be essential. Between 

 these two classes is a group of trees whose growth is such that under 

 favorable circumstances they may be profitably raised, but which, under 

 conditions prevailing in many remote sections, can not be grown at a 

 profit. The spruce, balsam, red oak, hickory and poplar may be men- 

 tioned in this class. 



As the prices for slow-growing timbers must be relatively higher than 

 for rapid-growing species, if they are to persist, so the prices for trees 

 yielding the better grades and wider boards of a species must be con- 

 siderably higher than for small,-poorly developed trees. For some time 

 we have had grading rules formed by various lumber manufacturers' 

 associations for the grading of manufactured lumber, the different grades 

 selling for different prices. This has not generally affected the prices 

 paid for round logs or standing timber. In some localities, where there 

 is a growing competition between wood-working industries for particular 

 kinds of timber, there have been developed, of late, local grading rules 

 for round logs. By these rules, which are similar to those which obtain 

 in European countries, highest prices per unit of volume are paid for 

 large logs free from defects, and the lowest prices for small defective 

 logs with several gradations between. While the prices paid for these 



