HARDWOOD RECORD 



23 



of the finished article must be high enough to cover the cost of 

 transportation in both directions. 



A casual consideration of the question would seem to indicate 

 that this basis of industrial effort is not economically sound. There 

 is a constant hue and cry of high prices and high cost of living, 

 and in the popular mind the tariff is the only contributing factor 

 to this condition. Here, however, seems to be a very pertinent 

 reason for excessive cost of one important commodity in a large 

 and growing territory. It is not contended that New Orleans alone 

 would offer a sufficient local market to take care of the entire 

 output of such factories, but it stands to reason that a New, 

 Orleans manufacturer could turn out furniture and ship to various 

 points in the South at much less cost than is required in shipping 

 the lumber to northern points and reshipping finished articles even 

 as far as the cities midway between the gulf and the lakes. It 

 may be that this policy of operation is based upon economic laws 

 which are too obscure and complex to be comprehended by the 

 layman, but it hardly seems reasonable to suppose this to be a 

 fact. It is of course easily understood that climatic conditions in 

 the South where people spend a great deal of their time out of 

 <ioors, result in more lax attention to the finer details of house 

 furnishing, but with the remarkable development of the southern 

 states a higher standard of living is everywhere apparent and 

 manufacturers of the finer grades of house furnishings and finish 

 should feel this condition favorably and it seems that the logical 

 way of meeting it would be to get right down into the country 

 with their plants. 



Continued Complaints 



Complaints continue to reach H.\edwood Eecord stating that a 

 certain element of the hardwood fraternity is still indulging in the 

 practice of shipping salted grades that bear little comparison to the 

 qualities of lumber sold. A large number of these complaints are 

 referred back to the chief associations, with the result that sellers 

 are usually mulcted for their irregular practices. Nowadays the 

 wise buyer is getting rather particular from whom he makes 

 purchases, and is demanding in grade about what he contracts for 

 on the order slip — still price buyers are in evidence, which helps 

 along the irregular transactions. 



Advanced Tax System 



The common methods of taxing timber lands are pretty generally 

 recognized as militating seriously against the perpetuation of the 

 timber supply. The usual method is to tax the full value of the 

 land and timber annually, thus making prohibitive any general 

 attempt to work timber holdings on a conservative basis. A great 

 deal of agitation has been maintained by various societies and in- 

 dividuals interested in securing a reasonable basis of taxation. A 

 notable case is seen in the state of Pennsylvania. The Pennsylvania 

 Forestry Association is the sponsor for all work of a conservative 

 nature as applied to the forests in that state. It has taken an 

 active and broad interest in local problems of forestry, and in 

 many instances has suggested and carried through plans of a 

 practical and beneficial nature. 



The question of adequate taxation has demanded the attention of 

 this body for some time, and as a result of serious thought a bill 

 was recently drafted at its annual meeting, which it is confidently 

 hoped will be passed by the Pennsylvania legislature at its next 

 session. The plan is to create what is known as an auxiliary forest 

 reserve. It will be optional with timber land owners whether or 

 not they care to come under this heading, but if they do they 

 secure the benefit of a substantial reduction in tax assessment. It 

 is provided in the act that a tax not exceeding one dollar per 

 acre be levied on timber holdings coming under this classification 

 as long as they remain subject to it. On the other hand, the timber 

 owners embracing this opportunity are compelled to reciprocate 

 by maintaining their timber lands on a basis in keeping with 

 suggestions made by the forestry association. Examinations are 

 made from time to time, and if any owner embracing the act is 

 found to be dilatory in his management, he is dropped and is forced 



to pay his regular taxes, and in addition to pay the difference 

 between the special tax and the assessment which would have been 

 levied during the various years when he had the benefit of the 

 act. The bill also provides for a conservative cutting at such 

 time as the timber appears to be ready to cut. Examination is 

 made by expert foresters who outline a plan of exploitation with a 

 view of obtaining the best silviculture and economical results. 



Arbitration in Business 



The question of arbitration as applied to disputes arising between 

 business houses has commanded the attention of the business world 

 to a varying degree for sometime. Arbitration as a method of 

 settling disagreements has probably been brought to the immediate 

 attention of the public through the international policy. It has, 

 however, also come into pretty general use in large trade centers, 

 New York City particularly being conspicuous in its employment 

 of this method of settlement. The Chamber of Commerce of New 

 York, through its recently established arbitration committee, is a 

 moving spirit in this work in the Metropolis, and has already 

 achieved distinct and praiseworthy results. The policy has saved 

 disputants a large amount of time, money and effort, and has main- 

 tained for various houses the continued patronage of customers, 

 who, had litigation been resorted to in the settlement of disputes, 

 would probably have withdrawn their business. 



The method of the New York committee of arbitration is to ask 

 for a fee, which is purposely restricted to that of a referee. 

 Private hearings are provided, and it has been demonstrated that 

 disputes, which would be protracted for months and even years 

 in the courts, may be settled within a few hours. The astonishing 

 amount of time thus saved, and money reserved for the benefits of 

 the concerns in dispute, are easily apparent. Voluntary arbitration 

 becomes legal and binding. 



An incident is on record wherein two of the largest merchants 

 of New York selected an arbitrator and submitted their papers. 

 Before the action could come to an issue the disputants settled 

 their points of differences themselves. A disagreeable incident was 

 thus overcome quickly and at practically no expense. 



It is estimated that the time and money sunk in litigation 

 exceed that lost through failures and bad debts. Legal processes 

 serve not only to tie up capital which might otherwise be liquid 

 and useful, but further clog the machinery of business generally 

 and militate against a harmonious co-operative spirit among busi- 

 ness men. 



Socialism and Wages 



An editorial writer in the Saturday Evening Post comments 

 with a delicate show of irony on the question of the relation be- 

 tween socialism and a wage scale. It seems that a prominent 

 socialistic publication recently observed that "two thousand dollars 

 a year and six working hours a day is what socialism offers in 

 return for your vote." In commenting upon this statement the 

 Post writer avers that the amount is really not too much, citing as 

 a necessity for this quadrupling of wage scale, that the price of 

 gasoline is constantly rising and that automobile tires are subject 

 to frequent and annoying punctures. It maintains, however, that 

 to attain this scale a vast reconstruction will be necessary. Ac- 

 cording to the editorial the yearly output of manufactories is 

 worth $20,-500,000,000. Of this raw materials consumed cost $12,- 

 000,000,000 and other expenses approximate $2,000,000,000. This 

 would leave then a total amount available for wages of $6,500,- 

 000,000. To divide this among all the individuals interested and 

 to insure the annual $2,000 wage demanded would mean that twice 

 this amount would have to be realized from sales to cover the 

 additional expense. 



The editorial concludes in a more serious vein that the real 

 question is not concerned with collective bargaining or elimination 

 of capitalists and landlords, for, it contends, if the total share of 

 landlords and capitalists went to wage earners, the average pay 

 envelope would be only $16 a week. The real problem for con- 

 sideration should be the elimination of waste, increased eflSciency 

 and means to make industries create more wealth to be divided. 



