August 'Jo. 191'J 



HARDWOOD RECORD 



19 



An Appeal to Lumber Manufacturers 



By L. C. Boyle, Counsel for National Lumber Manufacturers Association 



The industry has been fully ailvised that Commissioner Roper has 

 created a forest industries section within the Bureau of Internal 

 Revenue. From information sent out by the National Lumber Manu- 

 facturers ' Association every operator should now understand that 

 tliis section was established to develop the facts essential to equitable 

 ailniinistration of the tax laws. 



In aid of this wise and constructive effort tlie commissioner invitea 

 tlie fullest co-operation from labor manufacturers. In harmony with 

 tliis latter [diase of the plan, conferences have been held and an 

 agreed questionnaiic workdl out. In the near future the cjuestionnaire 

 will be tlistributed. Following tliis and after sufficient time has 

 elapsed for the industry to consider the feasibility of the plan and the 

 availability of the data called for. Major Mason, who is in charge of 

 the program for tlie bureau, personally will visit the various produc- 

 ing regions and hold group conferences with the operators. At these 

 meetings some representative of the National will be present and 

 participate in the discussion. It is Major JIason 's thought that as a 

 result of open and candid discussion all doubtful and obscure lioints 

 touching the need of the facts to be developed can be cleared up. 



As to the wisdom of the basic purpose of the whole program there 

 can be little if any doubt. As applied to this industry, such inequali- 

 ties as appear in the law itself arc due, primarily, to lack of intimate 

 understanding by Congress of vital industrial facts. Fortuuiitely, and 

 as the result of the effort put forth by the National, the law does give 

 the commissioner certain equity jurisdiction in administering its 

 ]irovisions, whereby equality of the tax burden may be secured. But, 

 unless the bureau is fully and accurately advised as to the facts the 

 commissioner will be hampered in his desire to administer the law 

 wisely and justly. It is the purpose of the questionnaire, supple- 

 mented by oj^en discussion, to develop this essential information. 



The government agency concerned has not only invited industrial 

 co-operation in securing a correct appraisal of the facts, but indeed 

 has so ordered the program that the industry itself, through the Na- 

 tional organization, is recognized as a part of the official machinery 

 for assembling and analyzing the data to be gathered. 



Will this great and vital industry rise to its opportunity and earn- 

 estly strive to aid the government in this helpful effort? 



Utterly aside from the fine and generous impulse that inspired this 

 truly constructive movement, .self-interest should spur the industry to 

 do all Lu its jjower to assist in the assembling and co-ordinating of 

 the called-for data. Properly understood, the whole enterprise is 

 grounded in our industrial welfare, Public as well as government 

 has been inadequately advised touching this industry's unique eco- 

 nomic status. Our raw material is a one-crop product ; modern opera- 

 tions require an initial ten to twenty year supply of timber invest- 

 ment ; the trees are continually exposed to the destructive influences 

 of fire, flood and disease; lumber from timber bought yesterday at 

 the current market price is competitive with lumber from trees pur- 

 chased years back at lower market levels ; although each lumber re- 

 gion represents economic phases peculiar to itself, the manufactured 

 product from each region competes for the same general markets, due 

 to the national character of the industry — the wide flung and scattered 

 regions of production — market control is impossible ; as the years 

 ] ass the growth of population makes for an increased lumber de- 

 mand and this in face of a vanishing raw material supply. Each j'ear 

 the industry is ever farther removed from the centers of greatest 

 consumption. 



Thus the story runs. These are but certain of the high lights of the 

 industry. The scope of this statement will not permit a more detailed 

 review of its uitferentiated characteristics. Opportunity is now of- 

 fered to project in bas-relief obscure yet controlling economic condi- 

 tions. This is to be accomplished not by ex-parti effort. On the 



contrary, we are urged to sit at the council table. In the past we 

 have complained justly that laws are enacted by Congress and rul- 

 ings made by bureaus and departments, controlling our industrial 

 affairs, without opportunity on the part of the industry to be heard in 

 advance. Here is a departure. In place of the arbitrary method gov- 

 ernment itself asks for sympathetic and whole hearted co-operation 

 from the industry. 



Major Mason is in direct charge of the work on the government 's 

 side of the table. During the conferences already had opportunity was 

 offered to ajipraise the quality of the man. It is the unanimous verdict 

 of those who sat in conference with him for ten days, that Major Mason 

 has a very practical as well as scientific grasp of lumber manufacture 

 and its timber investment. He has the rare gift of an open mind; is 

 patient, industrious and has courage. That which he believes to be 

 right, he will do. 



The Bureau of Lumber Economics of the National association is in 

 direct charge of the work on behalf of the industry. K. B. Goodman 

 is chairman of the bureau and brings to this important task the 

 scholarly attainments of a student of the problem involved, in addi- 

 tion, a broad and comprehensive grasp of conditions due to years 

 of experience as a practical operator. 



Wilson Compton, secretary-manager of the National, recognized 

 from the inception of the plan that the program is rich with oppor- 

 tunity. In co-operation with Mr. Goodman he is putting in play his 

 logical and well-ordered methods. No detail will be overlooked. Chair- 

 man Goodman has secured the services of E. T. Allen of Portland, 

 Ore., as a special assistant and expert adviser. Mr. Allen is now in 

 Washington conferring with Major Mason. It is my humble judg- 

 ment that E. T. Allen, for scientific grasp, supplemented by wealth 

 of common sense, is possessed of the ranking intellect within the four 

 corners of the industry. He enjoys the complete confidence of gov- 

 ernmental agencies in Washington. From now on until the work is 

 finished Mr. Allen will give to this effort all his time. 



In this brief word, I have tried to review the plan, the machinery 

 and the personnel of this important venture. Mason, Goodman, 

 Compton, Allen — honest, forceful, understanding men. They will go 

 far in this constructive service IF — there is that word again! If, 

 what ? 



If the industry itself toes the mark and whole hcartedly co operates 

 ill furnishing the information ! 



Many may not see the need of all the varied data called for. To 

 such it may be suggested that all phases of the questionnaire were 

 carefully canvassed at the conferences. Nothing is asked for but what 

 .has bearing on this tax problem. As stated, meetings will be held in 

 every producing region. If those who have doubts touching the need 

 of the effort essential to securing the facts will attend these con- 

 ferences, opportunity will be given for the utmost freedom of dis- 

 cussion. In the multitude of counsel there is much wisdom. Let us 

 boost, not knock I 



In seeking absolute facts, Major Mason is in reality helping the 

 industry as well as the Government. Since this industry, as such, has 

 in the past been more concerned in production than in accurate ap- 

 praisal of its economic status, many difficulties may be encountered. 

 Nevertheless, the work must be done. The manner of its doing Is 

 up to the industry itself. Remember this : A record will be made 

 that will be the key of control, not for the present alone, but for 

 the life of all present operations. If indifference touches our atti- 

 tude, then the weak links in the chain will dominate the ultimate 

 equation. We live in an hour of industrial revolution. The very 

 principle of private property rights is in the balance. Study of the 

 questionnaire will aid the lumberman to understand his own relation 

 to these matters. The Revenue Bureau, by establishing true and 



