THE WAR AND TIIU LUMBER INDUSTRY 129 



wood were placed, and these bureaus then distributed the orders to the 

 individual mills which could best handle the business. 



Among the first of these bureaus were the Southern Pine Emergency 

 Bureau, which was organized in May, 1917; the North Carolina Pine 

 Emergency Bureau, organized in ]May, 1917; the Georgia - Florida 

 Yellow Pine Emergency Bureau, organized in June, 1917; the Douglas 

 Fir Emergency Bureau, later termed the Fir Production Board, organ- 

 ized October, 191 7, followed by other bureaus representing hardwoods, 

 hemlock, eastern spruce, wholesale interests, etc. In June, 191 7, the 

 Lumber Committee, unofficially, began the allocation of Government 

 orders through existing bureaus to the extent that it advised the various 

 Government departments as to the proportion of a given order of lum- 

 ber which should be allotted to a given region. 



The Lumber Committee of the Council of National Defense con- 

 tinued to function until September, 191 7. when the work was trans- 

 ferred to the newly created Lumber Section of the War Industries 

 Board, under a Director of Lumber. The Lumber Section was given 

 added powers over those possessed by the Lumber Committee by an 

 order of the President, and will continue to function up to January i, 

 1919, although it has not been allocating new business for some weeks. 



One of the important phases of work which the Lumber Section 

 undertook, under authority given to it by the President, was the fixing 

 of a maximum price on lumber for certain species which were of 

 greatest importance in the military program, among them being south- 

 ern yellow pine. North Carolina pine, hemlock. Douglas fir, eastern 

 spruce, and western spruce. The object of the price-fixing on lumber 

 was the stabilization of lumber prices which would ensure sufficient pro- 

 duction to meet the needs of the United States and her Allies. 



The bases for price-fixing were provided by the Federal Trade Com- 

 mission, which investigated costs of production in the different pro- 

 ducing regions and which established a cost basis of production, to 

 which was added a reasonable profit to the operator. The costs of 

 production used in fixing prices were set at a point which would enable 

 efficient manufacturers to operate at a reasonable profit. That the 

 prices which were fixed for the various species were just and adequate 

 is shown by the fact that the industry prospered, in spite of adverse 

 industrial conditions. 



The signing of the armistice removed to a very large extent the need 

 for Government price control, and, on consultation with the various 

 groups of lumbermen interested, it was agreed between the Lumber 

 Section of the War Industries Board and the parties interested that 



