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HARDWOOD RECORD 



August 23, 191U 



Partunately by perseverance and actual accomplishment of 

 usable results the attitude of the lumbermen and others interested 

 was changed and even before the war there was a noticeable lessening 

 of the indifference with which the laboratory v.-ork was viewed. But 

 with; the war came ^ the real opportunity and this country had hardly 

 declared for battle before the Madison institution was swamped with 

 tests, investigations, research work and analysis, all vital to the fabri- 

 cation of war supplies and instruments of war with the double purpose 

 of speed and economy of production and perfection of material. 



It is entirely safe to say that the laboratory was one of the really 

 big reasons why eo much real progress was made in so short a time. 

 The war also brought ample finances because practical men under- 

 standing the problems and conditions in the industry were in charge 

 of the government's procurement and utilization of forest products. 

 They knew the value of the laboratory and forced the necessary ap- 

 propriations for increased force and equipment. Puny politics and 

 official red tape were not quite so potent as under peace conditions 

 and the laboratory was able to make progress in building up an 

 organization and equipment and demonstrating the vital need and 

 economic value of its work that justified the laboratory corps and its 

 friends outside in optimistic hopes for the future of the institution. 

 The end of the Big War showed how vain those hopes were. In spite 

 of the fact that practically every accomplishment of the laboratory on 

 war work has an even greater importance to peace time industry; in 

 spite of the necessity under the developing commercial war for every 

 possible research agency and scientific assistance procurable by Amer- 

 ican industries; in spite of the fact that scientific research is the one 

 initial and indispensable agency toward sensible and real conservation 

 of forest products; entirely ignoring the modest size of the necessary 

 appropriation and the fact that it would not be an expense but a real 

 investm&nt returnahle many times over in lasting benefits to the 

 forest products industries in general, those responsible for such things 

 liave, apparently without considering the matter seriously, lopped off 

 the appropriation to a degree necessitating reducing the laboratory 

 force by One hundred men. 



The action is discouraging and to speak frankly is a disgusting 

 example' of the short-sighted official policy which American industries 

 must work against. In all other countries of the first class the gov- 

 ernments have apparently learned something from the war. They 

 apparently realize that in the present commercial war failure would be 

 just as tragic as it would have been in the war of arms ana govern- 

 ment co-operation and aid is just as indispensable now as then. But 

 our government says that the laboratory is simply getting back to a 

 peace basis and so it stifles the development of an institution abso- 

 lutely necessary to the proper progress of our second largest industry. 

 The failure of the laboratory appropriation has deeper significance 

 than its effect on that institution. It is a mark of the shameful lack 

 of appreciation of the necessity for advanced and exhaustive re- 

 search in support of all our industries to the end tliat they may not be 

 stifled by the oflicially supported industries of other countries. 



A Law that Will Work 



/-> EESE THAT LAY GOLDEN EGGS can be killed, at least figura- 

 VJ tively speaking, and one sure way of doing the killing in busi- 

 ness matters is to put prices too high. A mighty pointed example 

 of how possible that is was seen in the letter postage which some 

 time ago was raised to three cents in the hope that it would increase 

 the revenue. It seems not to have been announced officially that the 

 plan failed, but unofficially it has been said that three-cent postage 

 produced less revenue than two-cent. Fewer letters were mailed, 

 because the price was too high. An increase of fifty per cent in 

 tlie postage rate not only failed to yield fifty per cent more revenue, 

 but it produced actually less revenue and at the same time hurt 

 business by putting obstacles in the way. The three-cent rate was 

 ended and the two-cent rate restored. 



This natural law is just as potent in other directions. Prices 

 may be put so high that people wiU not pay them unless obliged 

 to, and the majority of people can make deep cuts in their pur- 

 chases if they make up their minds that they are being gouged. A 



man can be compelled to pay his taxes, but he cannot be compelled 

 to pay an exorbitant price for a shoe shine — he can do that himself 

 or go without. A town in England still has two-cent street car fare 

 and is not running behind, and the simj^le explanation is given: 

 "There is more money in 100 passengers at one penny than in 

 twenty at three pence." A natural law comes into action when 

 prices go too high, and a drop must come when buyers rebel against 

 profiteering. The natural law is much more effective than any act 

 of congress or legislature, because it cannot be evaded. When a 

 farmer refuses to pay a hired man five dollars a day to dig potatoes, 

 because it is cheaper to leave the potatoes undug, the natural law 

 has come into force, and the same law will become effective when- 

 ever people refuse to pay unreasonable prices, and are able and 

 willing to do without the commodity rather than pay too much. 

 This is the law which will finally bring things to a conservative and 

 reasonable basis; but it calls for some self-denial; a lot of common 

 sense; a fair appreciation of justice, and perhaps a good deal of 

 righteous indignation and stubbornness. 



Bids on Railroad Steel 



DIRECTOR HINES of the railroad administration has inquired 

 of the steel companies the price at which they will furnish 

 100,000 tons of steel rails. The news item which makes the 

 announcement calls it an inquiry rather than a call for a bid. It 

 may be remembered that some time ago the railroad director 

 stirred up much criticism by declaring that the offers by steel 

 makers were so high that the purchase of rails would not be con- 

 sidered, or words to that effect. The present feeler may be thrown 

 out to ascertain whether the manufacturers of steel are disposed to 

 recede from their former position as to price. At any rate, there 

 is considerable difference between an inquiry as to price and the 

 actual purchase of 100,000 tons of rails. The director may intend 

 to buy, and he may not. 



If the rails weigh eighty pounds per yard, the quantity men- 

 tioned would be enough to lay about 700 miles of track. However, 

 the whole lot would be needed in making repairs in existing lines 

 without any new building. There would be enough to replace one 

 rail in 320 of track already in use. That would help, but it would 

 not be enough to justify much hope or excitement on the subject 

 of railroad building. 



Rather Risky Business 



A TRADE REPORT has been forwarded to this government from 

 Stockholm, Sweden, by Norman L. Anderson, American trade 

 commissioner, giving details of a vast lumber operation to be car- 

 ried out in northern Russia by a Norwegian-American syndicate, 

 which has made a deal with the Bolshevik government of Russia. 

 The deal involves the building of 2000 miles of railroad across 

 Russia from the White Sea to the frontier of Siberia, and the 

 lumbering of 22,000,000 acres of timber, of which 5,500,000 acres 

 are for the exclusive use of the syndicate during a period of eighty 

 years. Other large lumber concessions run for a period of forty- 

 eight years, and provision is made whereby the syndicate may 

 acquire additional timber. The syndicate is not to be taxed, but 

 in lieu of taxes it is to pay the Russian government twenty-five per 

 cent of the net profit. 



A good many details are not fully covered in the brief report 

 available; but a pretty serious point to consider is that the lumber- 

 men are dealing with the same Bolsheviks who have confiscated 

 practically all private property in Russia; destroyed mills, 

 machinery, and equipment; declared that all property belongs to 

 the government; besides demonstrating by word and deed that they 

 believe in destruction but not in construction, and respect no indi- 

 vidual rights. 



In view of that showing, it would seem somewhat risky to invest 

 much money at this time in Russian railroads or timber. Property 

 rights are worth nothing there now. and any promises or contracts 

 made by the rapscallions who are ruling and ruining Russia could 

 not possibly have value. 



