42 



HARDWOOD RECORD 



October 10, 1919 



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An Open Letter Seeking Co-operation 



The following open letter and accompanying charts have been addressed 

 by W. M. Ritter of the W. M. Ritter Lumber Company, Columbus, Ohio, to 

 the trade at large. Mr. Ritter's observations are worthy the earnest con- 

 sideration of all. He says : 



Federal governmental agencies have recently commenced a searching 

 investigation of the "high cost of living," and to determine in what quar- 

 ters and to what extent "profiteering" is practiced, to stabilize prices of 

 commodities and restore the industrial and social fabric of the nation to 

 normal conditions. It is highly important that the abnormal economic 

 and industrial conditions brought about by the war be most thoroughly 

 scrutinized by the government. If then by legislation or other govern- 

 mental action the return to normal conditions can be facilitated, such 

 action should be taken as promptly as possible. 



The problems before the country now, in this period of readjustment, 

 reconstruction and threatened social and economic disturbances, if not 

 wisely dealt with, may prove as difficult as and possibly more dangerous 

 than those which confronted it during the war. The problems of the war 

 time were met by the men of the country in a magnificent spirit of 

 patriotism which to the same degree should still direct and control their 

 actions in the present situation ; and I am satisfied the hardwood manu- 

 facturers will feel the impulse to co-operate with the government in its 

 efforts. To do otherwise would show a lack of patriotic devotion to their 

 country and their fellowmen. 



To urge this upon my fellow producers in the hardwood industry is 

 the object of this communication, and I feel that I may with propriety do 

 this because of my intense interest in the subject and also because of my 

 active connection with the industrial board of the Department of Com- 

 merce during the early part of this year, for it was the principal object 

 of that board to counteract the danger lurking in the high, inflated prices, 

 whether of material or service, brought about by the war, and the present 

 activity of the government has the same end in view. I insisted then 

 that the lumber industry of the country should fully co-operate with the 

 industrial board in its efforts, and now I am equally emphatic that the 

 hardwood manufacturers of the country should willingly assist the govern- 

 ment in the accomplishment of its program in its present campaign, not 

 only because of the obligations of patriotism, as suggested above, but also 

 because, when considered from a selfish standpoint, such a course will 

 prove to be best and most profitable in the long run to the industry. 



In the first place, the hardwood manufacturers should be mo.st willing to 

 furnish the government with full and accurate information of the exact 

 conditions existing in their industry at the present time, and in so far as 

 possible explain the causes that have brought about those conditions. In 

 this connection, it may not be out of place for me to briefly state what has 

 occurred in the hardwood industry during the w-ar and since. 



The facts in respect to the lumber industry, particularly the production 

 and the prices received by manufacturers of lumber as compared with 

 prices received by producers of other basic materials, have been very 

 generally misunderstood. 



Statistics gathered by the government and used hy the Industrial Board 

 of the Hepartment of Commerce show that the increase during the war 

 in the market price of forest products over pre-war prices was much less 

 than the increase in the price of any other of the basic commodities. 



An interesting chart, prepared from these statistics for the use of the 

 industrial board and which we are able to present by permission of the 

 Secretary of Commerce, is appen<led hereto. It is comparative, and shows 

 the Increase in price of various commodities which took place during the 

 war. Starting with a pre-war basis of price and ending with a period 

 approximately at the time of the signing of the armistice, a comparison of 

 increase in prices is shown by the height of the perpendicular lines. The 

 commodities shown in this chart cover building materials of various kinds, 

 fuels. fCMid and cotton products, and it can be seen at a glance that hard- 

 woods show less increase during the period' than any other basic com- 

 modity. 



The data shown in black represents that prepared and used by the 

 government, as aforesaid. Certain additional data on the section marked 

 "hardwoods" is shown thereon shaded. Everything on this section printed 

 in black is government statistics ; that shaded shows price movement of 

 W. M. Ritter Lumber Company products since the armistice. 



The figures on the left of this "hardwood" section opposite the different 

 varieties of wood indicate the percentage of each kind of lumber produced 

 by the W. M. Ritter Lumljer Company. 



The shaded lines show the point to which the W. M. Ritter Lumber Com- 

 pany's prices have advanced since the armistice, taking the chart data as 

 the "basis for computation. 



The reason for taking the experience of the W. M. Ritter Lumber Com- 

 pany in showing the movement of prices since the armistice is because 

 no government data for this period is available ; and in view of the fact 

 that this company operates in four different states of the hardwood belt, 

 I think it is fair to assume that its experience fairly represents the move- 

 ment of manufacturers' prices in the hardwood industry generally. 



The interesting facts shown by this chart with reference to the move- 

 ment of prices during the war are that, while — 



Per Cent Per Cent 



Pig Iron increased 138 Sand and gravel 103 



Wire rods 115 Building stone 100 



Hollow "tile 100 



Building material (other than 



lumber) up to 165 



The average increase of hard- 

 wood lumber, was only 47 



Structural steel 135 



Tin plate 125 



Wire nails 119 



Common brick 105 



Window glass 103 



Building hardw-are 1S9 



It further appears from this data that the average increase of all hard- 

 woods up to the present time, over the pre-war period, is only 7291.. which 

 is still well under the increase which took place during the period of the 

 war in the case of any other structural materials. At the same time it 

 should be borne in mind that the increase in the cost of producing hard- 

 wood lumber during the period was approximately as great as the increase 

 in the cost of producing other structural materials, wages of the W. M. 

 Ritter Lumlier Company having increased, on August 1, 1919, 107';;> over 

 those of August 1, 1914. 



The fact that the price of lumber did not increase in the same ratio with 

 other commodities shows that the war did not create a demand for lumber 

 relatively so great as for these other commodities. 



Notwithstanding the unfavoralile situation during the war of the hard- 

 wood lumber industry in comparison with other industries and the fact 

 that the prices of it's products have never reached a parity with other 

 basic commodities, yet lumber generally and indiscriminately, by the unin- 

 formed, has been frequently mentioned as one of the commodities in which 

 "profiteering" is practiced. 



The worcl "profiteering," while somewhat difficult of exact definition, is 

 a word which is much abused these days. It is used loosely and with a 

 variety of meanings in the public press but is generally, I believe, under- 



