March 25, 1919 



HARDWOOD RECORD 



19 



Important Announcements from Washington 



By H. C. Hallam 



Tlie problem of the price of lumber is the subject of important 

 conferences in Washington these clays. On March 19, a number of 

 lumbermen, representing all branches of the trade, assembled at the 

 tSlioreham hotel at the request of President Kirby of the National 

 Lumber Manufacturers ' Association, who himself acted at the sug- 

 gestion of the Industrial Board of the Department of Commerce, 

 which ^W. M. Bitter, the well known hardwood lumberman, is 

 credited with having originated and of which he is a member. 



M. W. Stark and F. R. Gadd were present representing certain 

 hardwood interests. Others attending the conference besides Mr. 

 Kirby included members of the war service committees that repre- 

 sented the industry during the period of hostilities; Dr. Wilson 

 Compton, secretary of the National Lumber Manufacturers' As- 

 sociation; C. H. Bowen, secretary of the National Eetail Lumber 

 Dealers' Association; George Ward; Mr. Chestnut, a Philadelphia 

 yellow pine man; Gen. L. C. Boyle, counsel for lumber interests; 

 J. W. Ma3'hew of Mr. Hitter's ofiice, and others. 



Leaders in the conference were strong for the Ritter plan for 

 the government and the industry to get together in an effort to 

 stabilize the price of lumber. Later conferences were scheduled 

 between representatives of the industry and the Industrial Board. 



Mr. Stark had at the conference data showing costs in the hard- 

 wood lumber business. Other lumbermen had interesting informa- 

 tion. Some of this will be presented to the government for con- 

 sideration by its board. 



Prominent lumbermen say that the average cost of producing 

 lumber is around $30 per 1,000 feet and that the price cannot be 

 materially reduced until costs are reduced. There is no intention 

 to bring about a wholesale reduction in wages, it was said, as it is 

 realized that the cost of living is high and that the prosperity of 

 the country depends upon well paid labor. On the other hand, the 

 lumbermen, themselves want to make a living. 



If they can make a showing to the government, through the In- 

 dustrial Board, that lumber costs are high and that prices cannot 

 be substantially reduced, and if the board would make announce- 

 ment to that effect it is felt that the result would be beneficial to 

 the trade, which might expect increased consumption under such 

 circumstances. An increase of building operations would be hoped 

 for and expected, especially if the Industrial Board should indicate 

 that prices of steel, hardware and some other building materials are 

 excessive. 



The feeling among lumbermen is not unanimous. Some retailers 

 say they do not think that prices can be reduced or that buying 

 and building is interfered with by high prices. They say further 

 that if the government will keep hands off and if agitation of the 

 subject is stopped, things will quickly adjust themselves. Some of 

 the lumbermen attending the conferences even said that lumber 

 prices will advance. 



Discussing Prices 



It was made clear by conferees that there is no intention on the 

 part of the government to fix prices. There is said to be no power 

 to do this and no desire to do it. The idea is to consider the situa- 

 tion and dispose of it if possible along co-operative lines for the 

 mutual benefit of the government, the lumber industry, and the 

 country as a whole. It was stated that prices of steel have entered 

 upon a downward tendency. However, it was predicted that any 

 change in lumber prices will be up instead of down, and reasons 

 for that prediction were offered as follows: 



Low stocks held by retail yards throughout the United States. 



Curtailed production of mills during the last few years. 



Recent restricted building operations. 



Possible increase in foreign trade. 



Decreased ocean freights; these having already been reduced (5(i% per 

 cent. 



Decrea.sed supply of available timber and its distance from markets. 



Large amount of capital and uninvested money which may be made 

 available for investment builders under proper financial direction. 



Conscious effort on the part of wealthy operators to maintain a price 

 level that will enable them to secure an equitable profit. 



Announced policy of the West Coast Lumbermen's Association and other 

 large lumber associations of maintaining wages at their present level as 

 long as the high cost of commoditie.s continues. 



Unfilled orders actually held by mills. 



Small probability of decrease in western freight rates which will en- 

 able western woods to compete extensively with wood from other sections. 



Lack of intelligent reforestation by the government. 



Lumber for the erection of school buildings will cost about five 

 cents per capita per year. 



Results of Conferences 



After an all-day conference March 22 between the Industrial 

 Board of the Department of Commerce and a committee represent- 

 ing the lumber industry, no conclusions were arrived at and no 

 definite action taken. The conference adjourned at six o'clock 

 with the intention of resuming Monday. There was a general dis- 

 cussion of the situation as regards the cost of production, 

 prices, etc. 



It was suggested that tlie government should find lumber prices 

 are reasonable and should say so publicly. However, the board did 

 not feel itself in a position to take such action in the absence of 

 complete information. It is understood that the lumbermen did 

 not indicate any willingness to reduce prices, although certain 

 persons in close touch with the board expressed the belief that 

 there would be some reductions brought about. 



W. M. Bitter, hardwood lumberman member of the board, is 

 absent from Washington. He feels that owing to his interest in 

 the business, he did not want to be present while it was being 

 handled, or to appear to influence the decision. Chairman Peek 

 of the board was also out of town. S. P. Bush acted as chairman 

 of the board. J. H. Kirby, president of the National Lumber 

 Manufacturers' Association and chairman of the committee of 

 representative lumbermen, led in the presentation of the case of ^ 

 the industry. 



The industrial board found the problem one of unusual com- 

 plexity, owing to the large number of operating units, the very 

 large area over which they are scattered, the lack of organization 

 and other peculiar conditions, not to mention the very nature of 

 the problem. 



This was indicated in a statement by Mr. Bush, which was given 

 out by official authority of the board, as follows: 



At a conference held today between the Industrial Board of the De- 

 partment of Commerce and certain representatives of the lumber industry, 

 S. P. Bush, who acted as chairman in the absence of George N. Peek, 

 stated that in view of the fact that there was not at the conference a 

 representation that was authorized to speak for more than fragments of 

 the lumber industry, and in view of the complexity nf the problem pre- 

 sented otherwise, sufficient data was not available which could be used 

 as a basis for any action by the board. Representatives of the industry 

 present submitted certain data concerning their present costs and selling 

 l^rices to which the board will give consideration, but it is desired that 

 some satisfactory basis fair to all may he found upon which to consider 

 prices as a whole. 



After the conference the lumbermen held a private meeting at 

 which the situation was gone over again, with a view to meeting 

 the board Monday. 



"Prices and costs are the same in the lumber industry," said 

 Mr. Kirby. "There is no profit. Under the circumstances prices 



