Current Literature 603 



The conclusions reached by the Bureau of Corporations as to 

 the activities of lumber trade associations will hardly meet with 

 the approval of those who are thoroughly conversant with the 

 forest problems of the country and who are interested in the 

 preservation and wise use of our forest resources. 



The statement is made that the activities of associations in fixing 

 prices and restricting output have profited the lumbermen at the 

 expense of the consiraier. Those familiar with limiber prices 

 during the past few years know that the profits seciired by lumber- 

 men have been meager and that in some cases stumpage has been 

 liquidated at a loss. Persons conversant with the general economic 

 situation in the industry deplore the general range of low prices 

 secured by lumbermen since close utilization fluctuates with the 

 market value of the sawed products of the tree — low prices tend 

 toward greater waste in the woods, while high prices mean the 

 reverse. 



It is a well-known fact, illustrated by the low market demand 

 now existing due to money stringency and unsettled business 

 conditions, that supply and demand are the chief factors governing 

 values in lumber, and that any artificial standard can not be 

 maintained for long unless the visible supply of lumber can be 

 strictly regulated by some powerful organization. In the curtail- 

 ment policy of individual members of the associations the Bureau 

 of Corporations believes it detects the exercise of this strong hand. 

 This assimiption is undoubtedly not warranted, since curtailment 

 is a personal matter with each manufacturer, who closes his plant 

 during a period of low prices, provided he can afford to do so. 

 There are operators, who, because of the actual need of cash to 

 meet current obligations, must continue to operate even under the 

 necessity of liquidating their raw material at a positive loss, since 

 money cannot be borrowed readily from banks, and creditors are 

 often unceasing in their demands for settlement. There are other 

 factors which affect the policy of ctirtailment and greatly narrow 

 the limits within which it is feasible. Many operators feel a 

 moral obligation towards their workmen and rather than throw 

 them out of employment and disrupt the labor organization, the 

 plant is kept running. Overhead charges are only reduced to a 

 limited extent by closing the plant, hence only a small reduction 

 in expense is effected. 



It is ordinarily assimied that an association or organization to 



