over the prices received in 1914, and average retail 

 prices in the Middle West showed increases ranging 

 i'rom 150 to 200 per cent. In the case of high quality 

 hardwoods and other specialized products, the aver- 

 age advance in eastern wholesale markets was from 

 200 to 250 per cent, and the demand at this advance 

 was still unsatisfied. 



The timber market has been more unstable than 

 ever before in our history. Many industries have 

 been unable to secure their supplies of timber at any 

 price. The output of certain entire industries has 

 been reduced as much as 50 per cent. Middlemen 

 and manufacturers of wooden commodities have been 

 able to pass on to the consumer and even augment 

 any price they might pay. Necessities have fared 

 worse than luxuries. The ramifications of lumber 

 shortages and high prices are limitless and have af- 

 fected seriously practically our entire population. 



Obviously these lumber prices bear no relation to 

 the cost of production and distribution. While the 

 costs of production in the lumber industry have at 

 least doubled as compared with 1916, lumber prices 

 iiace much more than doubled and have become 

 wholty disproportionate to operating costs. Exces- 

 sive profits have been made by the industry. The 

 division of these profits between manufacture and 

 distribution has varied in accordance with circum- 

 stances and the ability of the various elements in the 

 industry to dominate the situation. That prices have 

 been too high is recognized by the best thought in 

 the industry, and some manufacturers have sought 

 to stabilize the market. 



12 



