l'.U5. 



CHARLES S. KEITH, KANSAS CITY, MO. 



R. H. IJOWXMAK, NEW OKLKAXS, LA. 



E. B. I-IAZEX, PORTLAND. OKE 



't''aMiB:mi!;it>si>st!>w' 



^Lumhermen lAeet Trade Commission ^ 



The Fedenil Trade Commission made one of the first stops iii its 

 initial tour of tlie country at Cliicago Monday and Tuesday of this 

 week, July 19-20, beginning its sessions with an examination of the 

 cases presented by various important lumbering intere.sts from all 

 sections of the eountry. T)ie lumbermen had previously made very 

 careful preparation of the points whieli they wished to emphasize 

 before the commission, with the idea of effecting a more practical 

 understanding of the diiBculties which confront the lumbering in- 

 terests and the barriers which now exist, through natural conditions 

 and impractical legislation, to thwart an effort to put the imbistry 

 on a paying basis. 



The commission was composed of Joseph E. Davies of Wisconsin, 

 chairman; Kdward H. Hurley of Illinois, vice-chairman: William J. 

 Harris, Georgia: Will H. Parry, Washington; George Rublee, New 

 York and Xew Hampshire. 



E. H. Downman, New Orleans, president of the National Lumber 

 Manufacturers' Association, acted as oflacial spokesman for the lum- 

 bering interests. Mr. Downman, in his introductory summary of the 

 general condition which confronts the whole industry, reviewed the 

 important facts which have become familiar to the initiated during 

 the various discussions which have taken place the last few years. 

 These facts show that the industry ranks third in size in the United 

 States, and as having <lirectly dependent upon it 3,500,001) people. 

 In a general way the industry has not made any profit since 1907. 

 The railroads have not been normally in the market since that date, 

 while today the purchase from this source is not over fifty per cent 

 of normal. 



The export business, ordinarily consuming ten per cent of the 

 production of lumber, has practically ceased on account of the war, 

 while building operations were seriously retarded by development in 

 the summer of 1914. 



Mr. Downman presented the following statement, based on figures 

 from Dun and Bradstreet, showing failures in the lumber business 

 for the past five years up to 1915: 



y,'(ir. Firms. Liabilities. 



U)]0 427 $14,806,274 



1911 416 16,000,205 



1912 421 12,971,002 



191,"$ 505 19,460,891 



1914 484 22,517,908 



— IS— 



-Mr. Downman, while deploring the suffering directly felt by the 

 lumber trade, also deplored the tremendous waste naturally resulting 

 from abnormally low prices for the finished product. He said, "With 

 us waste results from fear of the law: in Europe waste is made im- 

 possible by law." 



I'LHI-OSE OF TAHIBEKMEX 



Ml. iJowumau summed up the purpose of the lumbermen in pre- 

 senting their case in the following: 



The suggestions to be made to this honorable body by these business 

 men will in no way encroach on the anti-trust laws of our nation. It 

 is not our purpose to urge a course of action that runs counter to the 

 line spirit of Justice that illuminates the Interpretation by our courts of 

 these laws. The rule of reason Is the very essence of the thought we 

 seek to present. At the base of all laws Is to be found the purpose of 

 conserving' public welfare. This Is the ultimate view of our courts In 

 analyzing the purpose of our anti-trust laws. We as business men, al- 

 though wishing to benefit our own interests, seek by the suggestions to 

 be made to this commission to so order our affairs that self-interest will 

 not obscure public welfare. 



Mr. Downman, in commenting on the effect of depressed prices on 

 manufacturing methods, proved that fully thirty per cent of the cut 

 is permitted to stay in the woods l)ccause it is financially impossible 

 to take it out. Quoting an autliority, he said we must recognize the 

 actual value of timber now, or pay an excessive price for it in the 

 future, and we have carried destruction so far that we shall probably 

 have to do both. 



Mr. Downman closed his introductory report with reference to the 

 1909 census, showing the number of plants engaged in the manufac- 

 ture of lumber, tending to indicate the importance of the industry. 



He then called upon Charles S. Keith, president of the Southern 

 Pine Association. 



Mr. Keith Tells of Southern Pine Woes 

 In res|)onse to the call of President Downuiun, Charles S. Keith 

 l>resented a statement full of many interesting and valuable facts 

 ;ind data, and accompanied by an exhibit of a convincing cliaracter 

 showing the absolute necessity for more favorable conditions under 

 which to operate the Southern pine industry. Briefly he said: 



The Lumb<T history for the past elslit years has been discourat'lng. 

 In fact, during this time with the exc.ption of the last half of 1011' 

 and the first half of 1913 conditions have been unsatisfactory. Today 

 the lumber manufacturing business is practically ruinous, and h;is been 



