October 10. 1919 



HARDWOOD RECORD 



43 



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stood to consist in withliolding a commodity from the marlset for liiglier 

 prices. This result is brought about by hoarding, by accumulating the 

 tangible supply in the hands of a few, by restricting production, by agree- 

 ment on the part of producers iixing prices higher than the normal con- 

 ditions of supply and demand justify, — but whatever practice may be 

 employed the rei>ult is the same — the commodity becomes scarce on the 

 mariiet and the price increases ; the natural law of supply and demand 

 is for the time being inoperative, an abnormal condition being artificially 

 created. 



In none of these ways, nor any other way that I know of, has "profiteer- 

 ing" been practiced by the hardwood manufacturers. And I am confident 

 it can readily and effectively be shown that there has been no hoarding 

 of hardwood by the producer and that everything that could be sold and 

 shipped has been sold and shipped ; that there is no agreement, combina- 

 tion or concerted action of any kind among the hardwood manufacturers 

 for the purpose of restricting production or securing higher prices. 



As a matter of fact, the market for the high grades of hardwood lum- 

 ber has for the past few months advanced considerably. A few grades 

 have changed almost from day to day and always upward, but this has 

 been due entirely to the fact of the inadequate supply of these higher 

 grades of material and hysterical efforts of consumers to cover their 

 necessities. 



The scarcity of high grades and accumulation of low grades is easily 

 explained. During the war the consumption of lumber for other than war 

 purposes was almost nothing ; the demand for high grade lumber for war 

 purposes was abnormal. In the manufacture of lumber from trees, not 

 more than 50 7o of the product, at the very outside. Is high grade lumber. 

 The result of the abnormal demand for this was that the producers, when 

 the armistice was signed, had an accumulation of low grade lumber on 

 their yards and a shortage of the higher grades. When the construction 

 of buildings, the operation of factories producing furniture, etc., calling 

 for high grades of lumber, was resumed (which came much sooner after 

 the armistice than anyone expected) consumers found a wholly inadequate 

 supply of these grades ; this acute shortage resulted in exactly what could 

 be expected — a rapid increase in price — and the mills have not been able 

 as yet to catch up with the demand. This is a most unsatisfactory condi- 

 tion for the producer as well as the consumer ; for the consumer because 

 of the high prices he has to pay, and for the producer because he knows 

 that lack of uniformity tends to create an unstable condition in the mar- 

 ket. He knows it is affecting only a portion of his product. He knows 

 that it is spasmodic and unreal, and further and more Important than 

 anything else, he knows that If it lasts It will have two most disastrous 

 effects : 



(1) The Introduction of other materials to supplant his commodity, and 



(2) To retard construction and thereby tend to destroy the demand for 

 bis product. 



If it were possible within the law, the very best thing that could happen 

 for both the public and the industry would be for the manufacturers to 

 get together and agree upon prices which would be fair and Just to the 

 public and to the producers. This policy if it could be pursued by all 

 industries would do more than anything else to hasten the return to nor- 

 mal industrial conditions, and at the same time accomplish what the 

 federal agencies. In their campaign against the high cost of living, desire. 

 Such a course is, in all probability, not feasible. Nevertheless, this does 

 not excuse us from doing everything we can to co-operate with the gov- 

 ernment in accomplishing the results desired. 



While in any aspect of comparison of prices received for Its commodi- 

 ties, the lumber industry Is in an unfavorable situation compared with 

 other basic industrie-s, and while a short-sighted, selfish policy might urge 

 the wisdom of getting the highest prices obtainable, yet I am firmly con- 

 vinced that such a policy is not the wisest for the general good or for the 

 best Interests of the Industry. I am confident that fair prices and a stable 

 market are of the highest desirability. 



I am strongly of the opinion that the average price of hardwood prod- 

 ucts is as high at present as it should be permitted to go. No conditions 

 of cost of material or labor, should be permitted to come about making It 

 necessary to be higher ; and I trust that all other hardwood producers 

 will hold similar views, and that by preventing any further advances in 

 the price of this commodity, which has had the least advance of any of 

 the basic commodities, a valuable example will be set for producers in 

 other fields. 



The government is absolutely right in launching such a campaign, and 

 if it is conducted intelligently, honestly, without partisan design and with- 

 out disturbing economic laws any more than is absolutely necessary, it 

 will result in great good, not only to the consumers of our "basic commodi- 

 ties, but to the producers as well, because it will result in more speedily 

 bringing about a readjustment of economic conditions which were so fright- 

 fully thrown out of balance by the necessities of the war. 



Wood Examined by X-Ray 



Manufacturers of airplane propellers in England have announced that 

 the X-ray was found advantageous in detecting defects in material and that 

 accidents were prevented by that new kind of inspection. In one instance 

 the radiograph of a plank of silver spruce showed light and dark patches. 

 When the plank was split open extensive beetle borings were found. Faulty 

 or bad workmanship are easily discovered, and some of the photographs 

 revealed cases where serious results would probably have followed had 

 the material been u.sed in the construction of aeroplanes, in which the 

 highest perfection is required. 



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