WORK OF THE GOVERNMENT IN FOREST PRODUCTS 407 



principles requires the assistance and 

 cooperation of all those interested in 

 them in a practical way. 



There has been a most gratifying co- 

 operation with the Forest Service by 

 the different railroads, lumber com- 

 panies, paper companies, woodworking 

 concerns, and trade associations. I wish 

 to take this occasion to express the ap- 

 preciation of the Forest Service for this 

 cooperation and assistance. 



From the standpoint of conservation, 

 the work of the government in forest 

 products is of great importance. When 

 one examines the losses in the utiliza- 

 tion of wood products, one finds that 

 these begin in the woods. Many species 

 are not cut at all ; often the trees left 

 uncut deteriorate rapidly, or are blown 

 over, or are injured in logging; fre- 

 quently long tops containing a large 

 amount of low-grade lumber are left in 

 the woods ; and many logs only partially 

 defective remain on the ground. The 

 cause of this seeming waste is the con- 

 dition of the market. The lumberman 

 seeks to take out only what he can dis- 

 pose of at a profit. It is to his own in- 

 terest to take out of the woods just as 

 much as he can possibly utilize, because 

 every increase in amount of marketable 

 material removed reduces the cost of 

 production and increases profits. The 

 amount of waste in the woods is there- 

 fore definitely governed by market con- 

 ditions. In exactly the same way it is 

 the condition of the market which 

 causes a great loss in the manufacture 

 of lumber. Close utilization follows 

 good markets. 



It is the market, also, which most 

 powerfully influences the problem of 

 forest production. The better the 

 market, the greater is the value of the 

 timber; an improved market means a 

 correspondingly increased inducement 

 to protect the forests from fire ; there 

 is an increased value of immature and 

 young growth ; and a correspondingly 

 greater justification for investments in 

 holding and protecting cut-over lands 

 for the production of new stands of 

 timber. 



The work of the Forest Service in 

 products will have a direct influence in 

 the long run on market conditions. The 



development of new uses of wood will 

 bring into the market species and 

 grades not before merchantable. The 

 uses of wood for by-products will re- 

 duce waste and enable the lumberman 

 to use material now frequently left in 

 the woods or wasted at the mill. The 

 extension of the use of treated timber 

 will enable the marketing of the less 

 valuable species for uses now requiring 

 the most valuable. There will thus be 

 a constant tendency to extend the mar- 

 ket and to decrease the loss in utiliza- 

 tion all along the line from the stump 

 to the manufactured product. 



There are, however, other factors in- 

 fluencing the market which will not be 

 directly touched by the investigations 

 at the laboratory. These factors must 

 not be overlooked in the consideration 

 of the relation of the market for forest 

 products to conservation. Problems 

 connected with the methods of logging 

 and manufacture of lumber, grades and 

 sizes of lumber, rates for low-grade 

 lumber, the car-stake question, etc., con- 

 cern conservation. In some of these 

 problems, the Forest Service can be of 

 assistance through its work of products. 



One of the most serious problems, 

 however, in the whole realm of forest 

 conservation is that of over-production 

 of lumber. In some sections of the 

 country more lumber is being manufac- 

 tured than is needed. There is, in con- 

 sequence, a poor market for the lower 

 grades and a great deal of waste in the 

 w^oods and at the mill. From the 

 standpoint of conservation, the condi- 

 tion would not be so serious if the for- 

 ests were being replaced after cutting. 

 But the conditions which lead to waste 

 in utilization prevent, also, the practice 

 of forestry. There is, then, a double 

 loss — waste of the present resources 

 and prevention of the production of 

 new resources. 



I doubt if this situation can be met 

 at once or by the application of any one 

 remedy. It is clear to my mind, how- 

 ever, that in this case, as in other con- 

 servation problems, there must be some 

 present public investment for the fu- 

 ture welfare of the country. This in- 

 vestment will take two forms : First, an 

 increased price of products which must 



