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HARDWOOD RECORD 



January 25, I'JIS 



ordinary accumulation of snow now on tlic ground increases the 

 probability that the spring floods will be dcBtructive. 



It is beyond the power of man to prevent floods under existing 

 circumstances, but persons whose business interests are threatened can 

 take advantage of the brief period to prepare. Proper preparation 

 made in advance may prevent great loss. It is hardly necessary to 

 sound the warning, for the danger is fully apparent to all interested 

 parties and they have time to take necessary measures to protect their 

 property, though .the time may be short. February often brings 

 warm rains and general thaws, and March most certainly will bring 

 them. 



More Fact Than Facetious 



LXIMBKRMEN CAN MEASURE IN TERMS OF DOLLARS the 

 truth in a recent editorial in the American Builder, the pur- 

 port of which is that if lumber quantities vrere spoken of in 

 larger units tlian the board foot, the public at large would not be 

 deceived by scarehead reports of government needs for wood and 

 wood products. The editorial comments on the way the news- 

 papers thrilled and seared the public with figures on Uncle Sam's 

 lumber requirements for shipbuilding. 



"Six hundred million feet," it was scareheaded, would be 

 needed! And the newspaper paragrapher drew conclusions imme- 

 diately that hardly a stick would be left over for home building, 

 barn building, etc. "Six hundred million feet! Gee whiz! That's 

 certainly a lot of lumber!" 



"Well, so it is, but how much of our total lumber production 

 is it? Exactly one-and-one-half per cent." 



The editor of American Builder draws the conclusion that the 

 construction of necessary buildings is being prevented right now 

 because the public has been fed up on big figures which they do 

 not understand, and that prospective builders are being scared 

 away from building by extravagant statements of Uncle Sam's 

 drain upon our lumber resources. 



The editorial suggests that lumbermen and builders should get 

 together and devise a new unit of measure for bulk transactions 

 and rather facetiously suggests taking as the unit of lumber the 

 amount used in an average sized house. Thus government figures 

 of shipbuilding would read: 24,000 "houses" of lumber were 

 required for this purpose. 



The point he makes though is a very pertinent one, and brings 

 us back to the often discussed condition surrounding the relation 

 between lumber and the lay mind. People do not know lumber 

 and never will until the lumbermen tell them something about it. 

 Lumbermen are suffering every day from just such causes as this. 

 Lumbermen will continue to suffer until they have gotten over to 

 the public sympathy winning propaganda of a sincere and honest 

 nature not merely for the purpose of counteracting adverse influ- 

 ence of substitutes, but rather that the public may understand 

 lumber and thus of its own accord have more sympathy for it 

 and use more of it. 



Blow Aimed at Military Prussia 



IT IS NOT THE CUSTOM of the Chamber of Commerce of the 

 United States to take hasty and spasmodic action, for that organ- 

 ization contains five hundred thousand of the prominent business 

 men of this country. It acts slowly and with deliberation, and when 

 it acts, the action is backed by tremendous force. For that reason, 

 the referendum vote commenced on January 14 is significant. On 

 that day the chamber began taking the vote of its members on a 

 matter that bodes no good to the mOitary caste in Germany. If the 

 vote is in the affirmative, it will serve notice on the business men of 

 Germany that they cannot establish after -war trade relations with the 

 business interests in the United States represented by members of the 

 National Chamber of Commerce, unless Germany shall establish a 

 government responsible to the German people. That means, of course, 

 that so long as the present military caste in Germany, or any similar 

 caste, is in power, trade with America will be practically impossible. 

 This action has not been taken in a spirit of retaliation or revenge. 

 It is not for the purpose of punishing Germany for its past sins, but 

 the object is to prevent future sins of the same sort. It aims to over- 



throw the military rule that for forty years has gripped Germany, 

 and to establish in its place a government responsible to the German 

 people. It is expected to help do this by notifying the business 

 men of Germany that if they want to do business with us, they must 

 put in power a government that i.s not military. 



The reason assigned for this action is that Germany's foreign trade 

 enabled it to prepare for the present war, and that the military govern- 

 ment used the foreign trade for that purpose. Now, if the same 

 military power remains in control after the present war, it would 

 begin to make preparations for another war and would draw stores 

 and materials from us for that purpose. Therefore, it is proposed 

 that Germany shall provide a government that can be trusted, or do 

 without American products. 



It is believed that a measure like this, openly and honestly an- 

 nounced in advance, will have its effect in Germany. If the business 

 men there know that the professional soldier must no longer run their 

 government, or else trade with us is at an end, it wiU have its 

 influence in helping the Germans to rid themselves of their military 

 caste and to substitute a government representing the people. To 

 that extent it will help the Germans help themselves, and ultimately 

 they wUl be thankful for it, though at first, no doubt, the action of 

 the National Chamber will be roundly denounced by the kaiser 's 

 government as an interference with the internal affairs of Germany. 



The circulation of the National Chamber's decision in Germnay, if 

 the vote shall be afSrmative, as it doubtless wUl be, will have diffi- 

 culties to overcome. Of course, the German censors would not let 

 the news pass; but it would gradually filter in from neutral countries 

 and it would not take long for every business man in Germany to 

 hear of it. Possibly it was in anticipation of this action by the 

 National Chamber of Commerce that President Wilson said in his 

 statement of our war aims that it might become necessary, in certain 

 contingencies, to restrict Germany's trade with the United States 

 after the war. 



Collecting Excess Profits Taxes 



JN VIEW OF THE FACT that the collection of excess profits 



taxes in lump sums would often work a serious hardship upon 

 the industries affected, considerable support has developed for the 

 movement to have the government collect these taxes in instal- 

 ments. 



The profits shown on the books of a normal, growing company, 

 especially in the hardwood business, are seldom "cash money"; 

 in most instances they are due to appreciation in value of lumber 

 stocks; to the inventory values of timber, mills and other ma- 

 terials and accessories; and to accounts on the books — all good 

 and collectible, but not actually banked money. 



The concern which has had a good year, even a highly profitable 

 year, cannot immediately convert its numerous assets into cash. 

 Lumber is not always a liquid asset, even when the demand for 

 it is good, and sales are made readily at satisfactory prices, 

 because the railway's delays and the condition of the buyer must 

 be taken into account in converting the material into cash. 



To demand of a lumber company which is financing the opera- 

 tion of numerous mills and the purchase of large lots of lumber — 

 much of which, possibly, is to be used in war work of special 

 value to the government — that it pay its excess profits taxes im- 

 mediately, is to say that it must handicap itself severely in the 

 conduct of its business. It may even have to borrow the money 

 to pay the taxes on its book profits — profits which are certainly 

 there, but not in a form which makes the payment of taxes con- 

 venient. 



Inasmuch as the average lumberman must make full use of his 

 line of credit for the financing of his regular operations, paying 

 taxes with borrowed money is a method which does not commend 

 itself from all angles. It is possible that the necessities of the 

 government do not require the immediate collection of profits 

 taxes, and if this is the case, it is to be hoped, for the benefit 

 of business in general and the hardwood trade in particular, that 

 the divided payment plan may be given official approval. 



