est conduct of the lumber industry. But in that particular 

 they want the industry to do its own regulating without 

 the intervention of governmental authority which inevitably 

 drifts into bureaucracy, paternalism and the undermining 

 of the ideals and opportunity of individual enterprise. 



When a great industry deliberately commits itself to a 

 constructive program of self-government, it is undertaking 

 the one thing which will effectually bury public agitation 

 and clamor for governmental regulation. That situation and 

 that opportunity now confront the lumber industry. Such 

 popular dissatisfaction as there has been with the lumber 

 industry has risen largely out of four types of more or less 

 misguided political or economic belief: 



First, that the industry has been "profiteering" 

 whatever that means. 



Second, that lumber manufacture is inefficient and 

 is deliberately wasteful of natural resources. Ridicu- 

 lous, but wide-spread. 



Third, that natural resources really ought never to 

 have become private property but should have been 

 held for all the people. Sentimentally attractive per- 

 haps~'but economically impossible. 



Fourth, that the costs of sawing boards from trees 

 are excessive; that the methods of distribution are 

 loose, inefficient and cost too much; and that the con- 

 sumer is the victim, is often imposed upon and is left 

 to "hold the sack." Probably a half truth. 



1. The "profiteering" charge is based upon extraordi- 

 narily high prices that have occasionally prevailed for brief 

 periods. The occasional "peak" prices have incensed the buy- 

 ers and have developed a false standard for adjudging the 

 profitableness of the industry. These short periods of ab- 

 normal profit are followed by much longer periods of no- 

 profit or of loss. Both buyer and seller will benefit if this 

 "see-saw" of lumber prices can be eliminated or at least re- 

 duced. 



2. During the last few years requests have been made, 

 even from within the lumber trade itself, that the Govern- 

 ment establish the lumber grading rules and itself conduct 



47 



