602 Forestry Quarterly 



Congress certainly did not contemplate the disorganization of 

 large industries which in a great measure are attempting to live 

 up to the laws as ordinarily interpreted, and whose continuance 

 in a prosperous condition are essential to the welfare of the Nation. 

 Constructive investigation, not destructive, was without question 

 the intent of those responsible for the establishment of the Bureau 

 of Corporations. 



The report deals mainly with the activities of various lumber 

 manufacturers' associations, which are charged with openly 

 attempting to control output and prices during the earlier years 

 of their existence, and later attempting to violate the provisions 

 of the Sherman Act by subterfuge. It is admitted that the first 

 charge is more or less true, but the public should not lose sight of 

 the fact that such actions were not then looked upon unfavorably 

 by the general public. In the southern yellow pine trade espe- 

 cially, uniformity of action on the part of manufacturers appeared 

 imperative, since the competition of southern yellow pine with 

 .white pine and other woods was exceedingly keen in northern 

 markets; yellow pine mill men did not have their sales methods 

 as well organized as their competitors ; and yellow pine was a wood 

 not in especially strong favor in the Northern markets because its 

 qualities were not well known to the consumer. All of these 

 things and others tended to very low prices and ruinous competi- 

 tion among manufacturers throughout the South and it was only 

 by organization that they could protect their own interests and 

 secure even a low price for their product. 



The charge of evasion of the Sherman Act by men in the yellow 

 pine industry would be difficult to prove and is believed to be 

 unjust in the extreme. It is inconceivable that public-spirited 

 and high-minded men of national repute, many of whom come 

 under this broad charge, should be knowingly guilty of an act of 

 this character, not alone because of the legal consequences involved, 

 but also because of the moral issues at stake. It is scarcely con- 

 ceivable that lumber maniifacturers would have willingly and 

 gladly opened all their records to the Bureau of Corporations, and 

 aided in every possible way the investigation by this Bureau, had 

 they knowingly been guilty of any violation of the Sherman Act. 

 It is possible that innocent technical violation may have occurred, 

 since even the advice of the best legal talent of the country has 

 been conflicting as to what may be done legally under the provisions 

 of this Act. 



