C. A. BIGELOW. BAY CITY, MICH., MEMBER 

 BOARD OF GOVERNORS. 



W. E. DBLAXEY, CINCINNATI. O., PRESl 



DENT HARDWOOD MANUFACTURERS' 



ASSOCIATION OF U. S. 



BRUCE ODELL. CUM.MER-DIGGINS COM- 

 PANY, CADILLAC, MICH. 



Reciprocitv With Cax.\da 



Perhaps it is better lo let bygones be bygones, but in view of the fact 

 that some members of atfiliated associations more or less seriously ob- 

 jected to the activities of the National in opposition to the Canadian 

 reciprocity bill, reference in this report should be made to it. 



Allow me to s[)eak frankly as to what I have learned as to the at- 

 titude of lumbermen in this matter. The majority believe that in the in- 

 terest of conservation there should be such a duty as we have at pres- 

 ent, which, bein;; a specific duty, is protective only upon the lower 

 grades ; and that national fair play would require, so long as we are 

 operating under our present financial system, that the very small duty 

 upon lumber should not be distributed and that this is true whether the 

 tariff be viewed either from a protective or revenue standpoint. Some 

 sections feel that their comparatively new or heavily burdened industry 

 needs some protection. On the other hand, there are some who are 

 opposed to any import duties whatsoever, even for revenue. There are 

 more who feel that the protection to lumber is so slight under the 

 present tariff that the benefit of its retention is hardly worth the cost 

 in time or money or any criticism that it might arouse. 



A very distinguished senator said to me only throe months ago : "I 

 think even you have, little idea of how intense the prejudice against the 

 lumber business is. Almost everybody here in lK)th ends of the Capital 

 knows that there Is no lumber trust, but public opinion has great weight 

 and I believe that if somebody were to get up in the House and offer 

 a resolution that all sawmills should be burned and all private timber 

 confiscated that it would pass with a whoop." 



This was a cartoon, i)ut It expressed a fact which a good many of our 

 people recognize when thej' say that it would be l)etter not to make 

 another fight for an import duty on lumber — that if lumber Is put upon 

 the free list, while many lumbermen will suffer In one way or another 

 the people, after all, will be the chief losers. 



FosEST Products Laboratory 



At Madison, ^^'is., the Forest Service has established and has had in 

 operation for nearly two years a laboratory for investigation of all 

 problems relating to forest products ; their characteristics, better utiliza- 

 tion, preservation, etc. 



Lumbermen expressed much interest in this institution when it was 

 being planned and when it was opened, but there their interest seemed 

 to cease. The director of the laboratory informs me that not for a 

 year has a single lumberman visited that institution, while every day 

 come to It men engaged In other lines concerned with forest products, as 

 paper and pulp. A standing committee of paper men visit regularly. It 

 is frequently inspected by visitors from abroad. Almost every foreign 

 country of Importance has sent its representatives to see what Uncle 

 Sam Is doing at this laboratory. 



The work it does will very largely be determined by the demands made 

 upon it, and it will be of direct value to the lumber business if lumber- 

 men call upon It for assistance and co-operate with it. Any of the 

 questions which are met with individually will be gladly taken up by 

 this institution if you will present them to it. 



Free Tolls on Panama Canal 



Regulations to govern the I'anama eanal are of great Interest to every 

 lumberman, but .-■speclallj to the producers of the Pacific coast and the 

 hardwood manufaelnrers of the Fast. As patriotic citizens we want the 

 canal to develop American resources, to build up American trade, and 

 especially to facilitate commerce between our Atlantic and Paeiflc coast. 



To open the canal free to our coastwise trade will require the amend- 

 ment of no law. will not Involve the tariff difliculty. and If it can be 

 done at all It can be done promptly. So far as it goes it will help. 



—so- 



Foreign advantage in the use of the canal lies in lower cost of con- 

 struction, maintenance and operation of vessels as compared with our 

 own. If the toll be set at $1 or $1.50 per ton. American register, we 

 will still, though coastwise trade be free, be at a disadvantage. But it 

 will help. Witheut such assistance the development of untouched re- 

 sources on the Pacific coast will go on more rapidly in British Columbia 

 and Mexico than in our own territory. And the manufacturers of Europe, 

 who compete with our own manufacturers, will have transportation ad- 

 vantages which in many cases will offset our import duties. Further- 

 more, this measure will tend to build up a merchant marine of the true 

 deep sea character, for a voyage between the Pacific and Atlantic ports 

 Is a long one and requires vessels of stability. 



It is sometimes argued that so far as lumber is concerned it would 

 be for the benefit of the Pacific lumbermen as against the manufacturers 

 in the East. I think it must he admitted that in all probability the 

 flr people will profit more from the canal than the yellow pine producers ; 

 but eastern woods will also profit. And then it should be remembered 

 that if our eastern associations are going to have this competition from 

 the Pacific coast, as they will have, they better compete with their 

 own p-^ople rather than foreigners. 



But It should be remembered that we are short of vessels, that when 

 the eanal is open there will not be the tonnage available greatly to in- 

 crease West coast shipments into the Gulf or Atlantic ports. The vessels 

 must be built and that will take time. 



At first, I think, you of the East and South will not feel the West 

 coast competition, for the above reason, and for the additional reason that 

 the first movement will be of lumber and timber for special purposes, and 

 which will not seriously affect the markets for eastern woods. And by the 

 time the west coast has the ships to take advantage of the canal, and the 

 manufacturers of the East have developed the full possibilities of a west- 

 bound trade in lumber through the canal, it will be wondered why there 

 should have been any hesitancy in the matter. 



Insurance op Standing Timber 



Some attention has been given to the possihilitj*, at least in special 

 cases, of insuring standing stumpage against loss by fire. 



Since standing timber has come to he the basis of bond issues It would 

 seem that insurance protection to such securities might properly be 

 offered and that the time will come when any timberman could insure 

 his holdings against fire loss as now the sawmill is protected. In con- 

 nection, we asked .Tames D. Lacey, whom you all realize as an authority 

 on timber land matters, to prepare a paper on this subject. He found it 

 impossible with his other engagements to glve.lt the necessary atten- 

 tion, but I will quote from a letter received from him. 



*'I gave this matter considerable attention two or three years ago, and 

 discussed the feasibility of it with several Insurance companies, but 

 could get no expression from them other than that it would be almost 

 impossible to Insure timber lands, owing to the difficulty, parllcularly. 

 of taking care of the fire hazard. Since that time, however, a great 

 deal has been done in the West in the way of organizing forest fire pro- 

 tective associations, both by the government, the state and by iudlvidiuils. 

 and it might not be as difficult today to interest insurance capital as it 

 was a few years ago in an enterprise of this kind. I still believe, 

 however, that It is going to take some time yet to bring about the 

 necessary education to establish timber Insurance on a basis that would 

 warrant the large timl)er owners in insuring their lands. The one 

 Instance in which it worked was through the English Lloyds, by Price 

 Brolhers & Co.. Ltd., of Quebec, who insured a certain ptutlon of their 

 standing timber for the further protection of a five million lx)ud Issue. 



