THE CHINESE WOOD-OIL TEEE. 5 



18 inches in diameter and are stirred over a fire until parched. The 

 seeds are then ground into a fine meal, which is heated or steamed 

 before it is put in the press, supposedly for the purpose of assisting in 

 the extraction of the oil. 



POSSIBILITIES OF THE WOOD-OIL INDUSTRY. 



In starting an oriental industry in America the most important 

 factor to be considered is the amount of hand labor involved. There 

 does not appear to be much involved in this industry, as the gathering 

 and husking of the fruits seem to be the only hand work required. 



The freight haul from China to America is a water haul practically 

 all of the way, but instead of its acting as a tariff wall to protect the 

 grower in this country it apparently acts as a handicap, at least at 

 the beginning of such an industry. According to recent freight 

 rates a grower in Montgomery, Ala., routing his product to Mobile 

 by rail and thence by water to New York, would have to pay 86 cents 

 per 100 pounds, whereas his Chinese competitor at Hankow pays 

 only 61.5 cents per 100 pounds to ship around the world to New 

 York. However, it is not to be expected that these rates would be 

 maintained in case the supply of oil became an important article of 

 commerce. There enters into this discussion, however, the factor of 

 a home supply of the material, and undoubtedly this is very desirable. 



The American farmer has the advantage over the Chinaman of 

 cheap, accessible lands and team labor. Since the hand labor 

 involved in a well-planned orchard is not great, it would seem to be 

 entirely possible by the systematizing of such an industry on large 

 plantations to produce this wood oil more cheaply than it is now 

 produced by the wayside plantings in China, which must be very 

 wasteful of human labor. This labor factor in China is now becom- 

 ing an important one, as the cost of labor is rapidly rising. It seems 

 reasonable, therefore, to suppose that the American extensive method 

 of handling such a tree crop would in time overtake and outstrip the 

 back-yard and wayside methods of the Chinese. 



The prospects are that there will be a continual and growing demand 

 for wood oil. Five million gallons were imported from China last 

 year. The growing use of soy-bean oil, it is reported, will tend to 

 increase rather than decrease the consumption of wood oil, as soy- 

 bean oil dries too slowly and requires an addition of wood oil to help 

 it dry. The home demand in China is likely to increase and the 

 opinion of importers seems to be that the American-grown oil could 

 capture the market. If it does, 40,000 acres of trees would be required 

 to supply the present demand. 



There now remains to be considered the very important question 

 whether the American-grown trees will produce as good a product as 



|Cir. 1081 



