1362 A NATIONAL PLAN FOR AMERICAN FORESTRY 



Fortunately, there is now a strong trend toward improved quality 

 from the small mills, so far as accuracy of manufacture is concerned. 

 It is becoming recognized that small mills properly designed and 

 operated and cutting good timber can produce good lumber. In a 

 growing number of instances capable business men directly or in- 

 directly are managing the operation of groups of small mills. But it 

 is the existence of large numbers of both good mills and poor mills 

 that brings up for serious consideration the small mill as a factor in 

 future marketing developments. 



Small mills have always shown a marked sensitiveness to business 

 conditions. Their credit is generally limited, and, while they increase 

 rapidly and their added production tends to hold down prices on the 

 ascending side of the business cycle, on the descending side they 

 reach their credit limit quickly and drop out. On the assumption 

 that flexibility of quantity and stability of price are desirable, limited 

 credit may here seem to be beneficial. On the other hand, in strength- 

 ening the competitive drive in the lumber market, limited credit 

 appears as a detriment by forcing a glut of products on the market. 

 Measures for strengthening the credit of small sawmills have been dis- 

 cussed by the industry. It is important to realize, however, that 

 measures that do not also work to the benefit of the owner of the stand- 

 ing timber will merely foster the increase in output of the least 

 efficient mills. 



The key position in adjusting small-mill production to requirements 

 of orderly manufacture and marketing is held by concentration plants 

 buying rough lumber from these local units. In the case of softwoods, 

 practically all the lumber produced by portable mills is finally seasoned, 

 surfaced, graded, and put on the general market by concentration 

 plants. In hardwoods, which are commonly sold rough, the output is 

 but infrequently graded or marketed through comparable central 

 units. The nucleus around which improvements can be put into 

 effect are thus present in the one case but lacking in the other. The 

 small-dimension-stock plant appears as the most logical unit to take 

 the place among portable hardwood mills that the concentration 

 plant now holds with softwoods. Fundamentally, control must be 

 hinged upon demonstrating to the concentration units the advantages 

 to them of improved operating practices. 



A measure of the effectiveness of counsel, demonstration, and 

 education will be available from what the Southern Pine Asso- 

 ciation is now attempting among small-mill operations in its 

 territory. The program of this organization is more systematic and 

 extensive than any other thus far undertaken. The aim is to aid the 

 small mills in their weakest spots with higher standards of manu- 

 facture, seasoning, grading, and, particularly, marketing. Success in 

 this industrial program will indicate that similar measures can be 

 depended on for small mills in other producing regions; failure would 

 suggest that control must be worked out by more drastic measures. 



If the small mill continues to hold its present position, the best 

 markets for lumber cannot be protected in the future unless marked 

 improvements are put into effect. 



IMPROVEMENT OF PRODUCTION 



Much dissatisfaction with lumber is due to shortcomings that are 

 onder the control of the manufacturer and that technical research 



