HARDWOOD RECORD 



Occurrences at Washington Interesting to Lumbermen 



Lumber's Place in the 



: i,.rf li:is hfi'ii talk aliout tlio n"\ 'riiiiiint lixiii({ luinlwuud prices 



;in.l It was n'portoil at tlie War luilustrii's Uoar.l tlint Appniacliiaii 



liarilwDocU woulil be taken up sodii in tliLs eoniieftion. Private 



A. I.. Justus, of the aviation corps, a liinibcrmau of years' expc- 



. !• ia tin" Appalachian lumber liclil nail eastern lumber markets, 



lifcM taken on as assistant to Acting Director of Lumber 



li's Kilfjar, anil could advise about these matters. 



\li. Eiljiar recently conferred with committees representing the 

 ;. le manufacturers who have Kovernmcut contracts and 

 • liern hardwood lumbermen, who have had a controversy with 

 \eliicle people over the prices to be jiuid for vehicle stock for 

 ' rnment purposes. Both parties are understood to have in- 

 ited that they could get along without the other and that the 

 ijuMTument ne?d not bother itself about vehicle stock prices. Ac- 

 cordingly, plans to settle such prices have been dropped. 



It was thought for some da.vs that there had been an agreement 

 upon prices in Southern Pine Association territory to the gov- 

 ernment and the public, but a committee comprising J. H. Kirby, 

 R. A. Long and F. W. Stevens, advised by Frank Hagerman and 

 Judge L. C. Boyle of Kansas City, is in Washington to protest 

 against the yellow pine price list signed by the president and 

 officially promulgated, effective June l.T to September 15. 



Points in the protest, it is understood, are that there was no 

 agreement ou the said prices to the public on a $28 base; that there 

 is no law or government power to fi.\ such prices without agreement; 

 that under the official order much old business will have to be done 

 with the railroads at old prices; that the price increase was de- 

 layed beyond the time when the Federal Trade Commission found 

 that labor and other costs of production had inoreased over old 

 jirices: that the discount for cash provided for in the government 

 list and order would cause reduction in the selling price of lumber; 

 that the government may fix tlie wages and hours of labor under 

 the plan to standardize labor conditions, which would upset present 

 conditions pending future adjustment of prices possibly, etc. 



On the other hand, it is said that the government records are 

 clear that there was an agreement on the price list and order. 

 How the differences will work out remains to be seen. The protest- 

 ing committee is to see o£Scials of the War Industries Board. 



In connectiou with the price question, attention has been at- 

 tracted to a recent report by the Federal Trade Commission to the 

 Senate on alleged profiteering in the lumber industry. The report 

 is in part as follows: 



Iiifiirniatlon In the commission's pnssession does not Indicate any 

 excessive profits In tile lumber Indiistr.v on the West Coast, although it 

 is nmlcrstooil that producers of aeroplane spruce In that region have In 

 the past taken nilviintnge of allied governments. Information In the comnils- 

 slun's possession iloes Indicate unusually and unnecessaril}* large profits 

 on the part of the southern pine producers. Forty-eight southern pine 

 ciiaipnnlos producing 2,615.000,000 feet of lumlier. In 1917, made an 

 average profit on the net investment of 17 per cent. This is unusually 

 large for the industry, as is indicated by the fact that the average profit 

 In liilG was only 5.2 per cent. In 1917. 47 per cent of the footage of 

 the companies covered was produced at a profit of over 20 per cent. The 

 range of profits was from a small loss to over 121 per cent on the nev 

 Investmenr. 



The margin of profit per thousand board feet in 1917 was nearly double 

 that in previous years, the figure being $-4. S3, as compared with $2.11 

 in litlG. A fair margin per thousand feet In the past has been recog- 

 nl7.ed as being $3.00. 



Those figures for 1917 are the more notable for the reason that the 

 profits shown do not include any payments of Federal Income and exccsi 

 proflt.s taxes, but are the sums actually available for additions to surplut 

 or dividends. Information secured from the companies concerning theli 

 divlilenils and Income taxes supports the preceding statements. 



Lumbermen say that this showing is not worrying them, compared 

 to the huge profits made by the steel and other metal industries. 



In connection with the price coutroversy also, it developed that 

 the wholesale departments of some large pine mills were reported 

 to consider themselves not bound by the government price list. 



Prosecution of the War. 



The West Coast Lumbermen's Association is expected to open an ' 

 oflicc here to boom (ir lumber with the government and the allies. 

 R. B. Allen, secretary of the association, has been here for a 

 month or more engaged on this work. 



The commandeering of timbjr and lumber and empowering the 

 government to fix sizes to be cut are provided for in an amendment 

 to the army appropriation bill that jiassed the Senate recently. 



Col. Disque's embargo on lir silo stock has been lifted, but is 

 reported to be still in effect on lir cross arms, pipe stock and tank 

 stock. 



F. L. Sanford, here representing lumbermen, hears that Congress 

 will repeal the present income and corporation and profits tax 

 laws and enact in the new war revenue bill a comprehensive and 

 up-to-date system of legislation on the subject so as to lessen con- 

 fusion among business men and others. 



Another matter that is being taken up by lumbermen is that 

 of priority of fuel for lumber mills and logging railroads. It is 

 understood that a plan has been tentatively worked out for dealing 

 with the subject under a cooperative arrangement between the 

 industry, trade associations and the government. 



Organization of a single war service committee representing the 

 millwork industry, north and south, has been begun as a result of a 

 recent conference here attended by delegates from eight regions 

 into which the United States has been divided for the purpose of 

 organization. 



W. M. Ritter, well-known hardwood lumberman, has volunteered 

 to act as assistant to Mr. Otis, commissioner of finished products. 

 War Industries Board. 



T. J. Aycock has been made production director in the terri- 

 tory of the Georgia-Florida Emergency Bureau. 



Prices of railroad and car materials have been advanced by 

 government action and it is reported that it is planned to order all 

 such material required for repair purposes during this fiscal year 

 at one time. 



Hardwood flooring is being used in the housing work of the 

 government to some extent, especially in the permanent homes 

 for workers that are to be built in large numbers. Orders for 

 more than half a million feet of this material have been received 

 by the Northern Hardwood Emergency Bureau. 



That the war tax on freight bills, if it is to be retained in the 

 new revenue bill, should be applied on lumber and shingles im- 

 ported by rail, at least from the boundarj' line, is the wish of Rep- 

 resentative Hadley of Washington, who recently appeared before 

 the ways and means committee on the matter. 



The government departments have awarded contracts recently 

 to W. M. Ritter Lumber Company for white oak track; Roanoke 

 Spoke & Handle Company, Roanoke, Va., for tool handles, and 

 Haskelite Manufacturing Company, Grand Rapids, Mich., for veneer 

 panels to cost $188,924. 



Another $100,000,000 is being provided in appropriation bills 

 passed this month for housing war workers. 



The biggest wooden ships ever built, it is declared, will be those 

 of the modified Dougherty type, the plans and specifications of 

 which are being perfected by the shipping board. The work is 

 delayed by changes in the plans that will add 1,000 tons or more, 

 it is reported, to the deadweight tonnage of the Dougherty ship, 

 which was 4,700 tons. 



The Grant Smith Porter Company has won second pennant from 

 the shipping board for rapid and efficient work in wooden ship- 

 building during May. 



The department of agriculture has issued a bulletin on relative 

 resistance of various hardwoods to injection with creosote, based 

 ou tests made at the Madison laboratory. It has also issued a 

 bulletin on forestry and community development, which urges 

 establishment of the lumber industry on a permanent basis. 



