1358 A NATIONAL PLAN FOR AMERICAN FORESTRY 



increased forest supply. This increase is of a form and character of 

 immediate rather than potential value. It is cumulative without 

 additional expense. A saving made today is repeated tomorrow and 

 perpetually thereafter. A board foot saved by improved utilization 

 becomes a board foot saved annually, thus augmenting our waning 

 timber supply, while also lowering production costs. 



In the light of these objectives, the retention and enlargement of 

 forest consumption and markets is a problem of industrial efficiency 

 in production and distribution, of scientific and technical advance in 

 the improvement of forest products, and of general attitude and policy 

 reflecting public interest and support for the economic success of 

 forestry. The specific lines of action that are proposed here will be 

 taken up in that order. 



INDUSTRIAL ORGANIZATION AND PRACTICE 



Low production costs and a high degree of satisfaction to the con- 

 sumer call for important changes in organization and practices with 

 respect to forest holdings. In the face of a rapidly shrinking supply 

 of standing timber, the wood-producing and wood-using industries 

 from New England to California are confronted chronically with 

 flooding of markets and a profitless and demoralized price structure. 

 The results are seen in wasteful cutting and conversion of timber 

 stands, in sacrifices of quality strongly reactive upon the reputation 

 of the product, in hurried liquidation of present properties, and in 

 short-sighted disregard of regrowth. Examination as to the actual 

 prevalence and seriousness of such conditions is important, but the 

 facts are already sufficiently known and acutely enough felt to justify 

 study of remedial measures. Lumber is the principal commodity 

 from the forest and presents the most aggravated marketing problems. 

 Consequently major attention at this point will be devoted to that 

 product, although many of the requirements with respect to lumber 

 apply with equal force to other forest products. 



TRANSPORTATION 



Forest products are at a distinct disadvantage in the struggle for 

 lowered costs because of the heavy transportation factor. Lumber 

 carries a railroad freight cost averaging $283 for every $1,000 value, 

 compared with $263 for cement, $198 for common brick, $79 for iron 

 and steel, and $58 for wall board. In the decade 1914-1924 the aver- 

 age length of haul from mill to place of use increased from 360 miles to 

 725 as the nearer sources of supply approached exhaustion. 



Improvement in transportation costs lies along three lines: (1) 

 Adjustments in freight rates, (2) elimination of unnecessary cross- 

 hauling, and (3) putting into maximum production those forest areas 

 closest to centers of use. 



The principal action thus far to cope with transportation costs has 

 been that taken by the forest industries in securing more favorable 

 rates from the railroads and in utilizing the water route via the 

 Panama Canal. Kailroad rates are, of course, subject to further 

 change. Existing freight rates for commodities in general are the 

 resultant of slow adjustments over long periods of years as between 

 competing industries, sections, and public carriers. Lumber tariffs 

 have probably not reached the same degree of stability that exists in 



