A NATIONAL PLAN FOR AMERICAN FORESTRY 1361 



in a few instances, the full run of the forest is sorted under an inte- 

 grated scheme of operation according to its suitability for the sawmill, 

 dimension plant, veneer mill, and distillation plant; or, in other forest 

 types, for the pulp mill, sawmill, box factory, and specialty plants. 



In certain operations in the southern pine region, integration of 

 sawmills, pulp mills, and veneer and plywood plants has been accom- 

 plished. Large holdings that are being developed primarily for pulp- 

 wood contain saw timber or medium-sized trees that will grow to saw 

 timber size before the stands are cut for pulping. The plans call for 

 cutting the high-quality logs into timber products to defray a large 

 part^of the cost of stumpage, instead of pulping all material indis- 

 criminately. In Sweden the close integration of lumber and pulp 

 industries results in close and flexible utilization in accord with market 

 conditions, a diversification of product, and maximum value from the 

 raw material. Basically such developments are sound and, other 

 things being equal, are the way to minimum costs. 



Integration is not necessarily confined to large plants and heavy 

 capital investments. Partial integration already exists in the small- 

 scale operations of sawmill, turning plant, and novelty factory in New 

 England ^and of tie mill, flooring plant, and spoke and handle factory 

 in the Middle West. For the most satisfactory functioning, however, 

 we must look to adequately financed and fairly large units. 



It has been through integration of sawmill and pulpmill operation 

 that the greatest advances have been made thus far. It is between 

 these units that great progress in the immediate future may be looked 

 for in the virgin forests of the West and in the second-growth forests 

 of the South, although there are limits as to the part that the lulp mill 

 can play. There are good grounds for anticipating also a much wider 

 integration, on a smaller investment basis, between plywood manu- 

 facture and lumber production in regions where virgin timber is still 

 readily available and between pulpwood, naval stores, and timber 

 products in the Southeast. 



It is not to be assumed, of course, that all production from the forest 

 will be on an integrated, diversified basis. Lumbering on a small 

 scale lends itself to individual effort, particularly in regions where the 

 timber supply is scattered, and account must be taken of the fact that 

 small independent operations will always play a part in the ultization 

 and marketing situation. Integration in this country has not pro- 

 gressed to the point where it is more than an indication of the part 

 that it must play if large-scale markets for forest products are to be 

 maintained. The way to the realization of its benefits must be kept 

 open through continuing research and organizing and management 

 effort. 



PRODUCTION FROM SMALL TIMBER HOLDINGS 



Portable sawmills share responsibility to a greater degree than 

 large ones for putting out substandard products which undermine 

 confidence in lumber. By stressing cheapness, small mills have 

 played strongly into the hands of those elements in the building trade 

 that have engaged in speculative building and shoddy construction. 

 So unskillfully has the product been marketed that it has constantly 

 disturbed the equilibrium of the entire price structure. A large 

 proportion of the remaining saw timber, particularly in the eastern 

 half of the country, is in farm woodlands for much of which the small 

 sawmill is the strongest bidder in sight. 



