20 



HARDWOOD RECORD 



Aiiril 10, 1019 



More tlinn a million dollars worth ot furniture is imported aunually 

 by the west coast countries of South America— Chile, Peru, Ecuador, and 

 Bolivia — and there is to be in increase as soon as normal conditions are 

 restored. A report by the Bureau of Foreign and Domestic Commerce 

 states that a great many of the inhabitants have accumulated money dur- 

 ing the war and that they will buy high-grade, very ornate furniture as 

 soon as they can get it. 



Unfortunately, only medium-iniced and cheap furniture has been imported 

 from the United States In the past, all of the high-grade product coming 

 from Europe. This has created the impression that American furniture 

 is inferior, and it is urged that steps be taken to improve this impression 

 as quickly as possible. The high-grade market is well worth trying for, 

 as the wealthy people pay very high prices for what they want. It is not 

 unusual for newly married couples to put off buying furniture until they 

 get to Europe on their honeymoon, when they go in for the best to be had. 



Chile is the best market for furniture on the west coast, and the styles 

 demanded range from the simplest patterns to highly ornate Louis XVI 

 designs, which are most admired. The best grades ot Louis XVI furniture 

 sell for $1500 to $2000 per suite. Marble tops are insisted upon for 

 many pieces. 



Stabilizing Prices 



The question of stabilizing the prices of lumber and other impor- 

 tant commodities seems to be very much up in the air just now. The 

 announcement following conferences in Washington between the 

 Industrial Board of the Department of Commerce and representa- 

 tives of the lumber industry that the lumber situation presented 

 unusual complexities and the reported decision of the Southern Pine 

 Association at its New Orleans meeting to have nothing to do with 

 a price fixing agreement, have been followed more recently by a 

 split among government officials concerned in the Industrial Board 

 plan and purchasing departments of the government establishment. 



The railroad administration head, Walker D. Hines, has let it be 

 known that it will not be bound by the reduced steel prices agreed 

 upon between the board and representatives of the steel industry. 

 Conferences between the board and heads of other departments, 

 including cabinet members, have gotten nowhere except an impasse 

 represented by the statement of Secretary of the Treasury Glass 

 that the price stabilization plan has gone back to the board for 

 reconsideration, and a statement by Chairman Peek of the board 

 that the point to be reconsidered was that of prices for railroad 

 steel, which was later repudiated by Glass, who reiterated that the 

 price plan was to be reconsidered. 



Then the navy announced that it must buy on competitive bids. 



President Wilson is understood to have been appealed to to order 

 all government purchasing departments to observe the prices pro- 

 posed to be stabilized by agreement between the Industrial Board 

 and the various industries, but so far as known the president has 

 not been heard from. It is reported that his policy will be to keep 

 hands off. 



Nevertheless Chairman Peek of the Industrial Board seems opti- 

 mistic. He says that the door is not yet closed on the possibility 

 of an agreement. He is negotiating still with the Eailroad Admin- 

 istration. 



With regard to the Southern Pine section, Mr. Peek says that the 

 industry has never been invited to enter into a price agreement, 

 but has been invited to cooperate with the Industrial Board in an 

 effort to stabilize prices by getting industry voluntarily to make 

 prices as low as present cost and labor conditions will justify. At 

 the same time Mr. Peek made public a letter from J. E. Rhodes, 

 secretary, manager of the association, transmitting a resolution in 

 which the association endorsed the general purpose of the plan 

 involved in the creation of the Industrial Board. 



It is the view of a lumberman who has been in touch with the 

 Industrial Board that the situation will work itself out in satisfac- 

 tory manner. In regard to differences between the board and other 

 government people, the view was expressed that critics of the board 

 were afraid there will be infringement of the anti-trust laws if 

 the board's policy is carried out. They do not want pronouncements 

 regarding prices to go out as though agreed upon between the indus- 

 trj' and the government, for the direct guidance of the public or 

 as indirectly fixing prices for the government. However, it is said 

 to be perfectly agreeable to the critics that the board make recom- 

 mendations and give advice to the purchasing departments as to 

 the prices which they would be justified in paying. If the public 



draws its own conclusions from the government price, then well 

 and good. 



One question seems to be, whether prices shall continue to be 

 announced as a basis for public purchases or only as the basis on 

 which the government will do its buying. Some officials object to 

 the first course as verging on illegal price fixing, while the view of 

 many lumbermen is that the board's plan might be considered viola- 

 tive of the anti-trust law. 



Not Wholly Hopeful 



Most of the lumbermen who have been concerned iu conferences 

 with the Industrial Board have left Washington. So far as known 

 here, however, they do not seem to favor the board plan. L. C. 

 Boyle, counsel for the industry, has gone to Kansas City, where 

 he is reported to be ill. Before leaving Washington, liowever, he 

 was pessimistic over the situation. He had been enthusiastic at 

 first for the board's scheme, because he felt sure that lumber prices 

 could not be reduced and business done at a profit, and therefore 

 thought that the board would approve the present price schedule, 

 but after conferring with the board he became convinced that its 

 sole thought apparently was to reduce prices, regardless of facts 

 about costs, etc. 



J. H. Kirby, president of the National Lumber Manufacturers' 

 Association, also had been strong for the board plan as he orig- 

 inally understood it, but later declared the association would throw 

 out any member who sought to agree upon price fixing. Following 

 the conferences between the board and lumber industry representa- 

 tives about two weeks ago when no agreement was reached because 

 only fragments of the industry were represented, the further confer- 

 ence then expected never materialized, although Auditor Eickey of 

 the Southern Pine Association did discuss cost data with individual 

 representatives of the board. 



Charles A. Bowen, secretary of the National Retail Lumbermen's 

 Association, declares his belief that the lumbermen will never again 

 meet the Industrial Board. The latter 's plan is all off, he says. 

 The lumbermen have stated their case and shown that prices can 't 

 be lowered, while the board is said to have demanded reductions. 

 Personally Mr. Bowen is satisfied with the situation, as he has 

 contended that building will be revived and sales increase if present 

 prices are maintained, provided the public once gets used to the 

 idea that there will be no change. He states that certain of the 

 Industrial Board people sought to bring about a $2 reduction in 

 lumber prices, but that representatives of the industry refused to 

 consider this. 



Canvassing the Situation 



At this conference the whole situation was canvassed and all of 

 the details brought out. The lumber manufacturers submitted the 

 fact that they were not in a position to make any offer, but felt 

 that the board should make suggestions. This the board refused 

 to do, saying that it was not a committee with any mandatory 

 powers, but was there to help the industry in any way to stabilize 

 prices with the thought and hope of stimulating a revival of com- 

 mercial business. 



It cited the fact that the steel industry had met it and volun- 

 tarily reduced prices in order to help bring this about, and the 

 lumber industry should follow the steps of the steel industry and 

 make some reductions in present prices for the same reason. The 

 lumber manufacturers pointed out that the steel industry was in a 

 different position; that steel prices had soared to a, very high figure 

 during the war and had already begun a decline before the hearing 

 of the Industrial Board; also that that industry was in a position 

 to reduce prices because of the conditions which surrounded the 

 business and without materially affecting the investment or a rea- 

 sonable profit, and also that there were so few of them that they 

 could unite through a national association or general agreement 

 which would practically bind the whole industry. On the other hand 

 they pointed out that there were something like 35,000 manufac- 

 turers of lumber in the United States, only a small number of which 

 are in any associations at all; that there was no association which 

 could speak for the lumber industry as a whole, and that those 

 present had no authority to bind the industry in anything, nor even 



