ONE-THIRD OF OUR LUMBER WASTED 



877 



occurring, not only of profits, but an unavoidable, 

 but nevertheless shameful, waste of forest resources. 

 In some instances it will be demonstrated that the 

 assets being converted into lumber are being sold 

 on a basis which yields the owner nothing. This 

 situation is due, more than any other thing, to over- 

 production and uncontrolled competitive conditions. 

 "The price of lumber has gotten so low that a very 

 large portion of the tree cannot be profitably manu- 

 factured. As a result of this condition 30 per cent 

 of the cut is permitted to stay in the woods to waste. 

 Based on the production in the United States for 

 1909, practically fifteen billion feet of timber is 

 wasted annually, which in a period of a trifle over 

 three years, is one year's total consumption of 

 lumber." 



The public has a very definite interest in the situation, 

 an interest which deserves most serious attention, an 

 interest appreciated by the lumbermen, and the guarding 

 of which is one of the prime objects of the American 

 Forestry Association. Of this interest, President 

 Downman said to the commission : 



"It is not alone our own business interests that 

 are being sacrificed on the altar of unlimited and 

 uncontrolled production of timber products, but, 

 indeed, the broader interest of the public itself is 

 involved. The wicked and needless waste of a 

 prime, natural necessity would be impossible in any 

 other civilized country in the world. With us waste 

 results from fear of law ; in Europe waste is made 

 impossible by law. 



"The suggestions to be made to this honorable body 

 by these business men will in no way encroach on 

 the anti-trust laws of our nation. It is not our pur- 

 pose to urge a course of action that runs counter to 

 the fine spirit of justice that illuminates the inter- 

 pretation by our courts of these laws. The Rule of 

 Reason is the very essence of the thought we seek 

 to present. At the base of all laws is to be found 

 the purpose of conserving public welfare. This is 

 the ultimate view of our courts in analyzing the 

 purpose of our anti-trust laws. We, as business 

 men, although wishing to benefit our own interests, 

 seek by the suggestions to be made to this commis- 

 sion to so order our affairs that self-interest will not 

 obscure public welfare." 



Of the causes that contributed largely to the depres- 

 sion in the lumber business, Mr. Downman said: 



"The railroad industry, one of the largest con- 

 sumers of lumber in the United States, has not 

 been in the market normally since 1907, and we esti- 

 mate that their consumption today does not exceed 

 more than 50 per cent of normal consumiJtion. 



"The export business, which consumes 10 per cent 

 of the production of lumber, has practically ceased 

 on account of the war. In the summer of 1914 

 building operations stopped by reason of financial 

 conditions. 



"AH of these causes, coupled with uncontrolled 

 output, contribute to produce the demoralizing con- 



ditions that have for a long period existed and still 

 exist. Prices have gone to pieces, wage scales have 

 been universally reduced, and bankruptcy has over- 

 taken a large number of individuals engaged in the 

 industry. 



"To this statement there is appended a compilation 

 of data taken from Dun and Bradstreet covering a 

 period of five years. This data gives a vivid and 

 tragic picture of the financial ruin that has over- 

 taken a large number of the lumber manufacturing 

 interests and the impending threat to all such 

 interests." 



The data referred to shows that in the last five years 

 3,253 lumber firms, the liabilities of which amounted to 

 $85,756,280, have become bankrupt. 



In conclusion Mr. Downman made the following 

 appeal, after which further evidence, in detail, was 

 presented to the commission by other leading lumbermen : 



"We earnestly urge the commission to make the 

 fullest possible investigation of our trade condi- 

 tions and this for the reason that we feel that if 

 this body becomes thoroughly conversant with the 

 industrial and economic situation as today exists in 

 the lumber manufacturing business, you will, not 

 only permit some plan for relief, but of your own 

 initiative, urge such a course." 



It has been variously estimated that the timber supply 

 of the United States, at the present rate of cutting and 

 present extent of re-growth, will be exhausted in from 

 fifty to a hundred or hundred and fifty years. With a 

 knowledge of all that forested land means to the health, 

 wealth and prosperity of a country, how vitally import- 

 ant it is to overcome a condition that permits 30 per cent 

 of the timber cut to be wasted. How much it will mean 

 to future generations if industrial and economic reforms 

 which will prevent most of this waste are adopted. 

 It is ixjssible by wise regulation of output and proper 

 adjustment of prices to provide for the utilization of 

 much of the timber which is now wasted. Such utiliza- 

 tion would add scores of years to the life of the forests. 



Nor is this all that is necessary. The forests should 

 be perpetuated. Their ultimate elimination in one hun- 

 dred years or in one thousand years will lead to just 

 such conditions as today exist in China, from whence, at 

 this writing, news dispatches announce the loss of 150,- 

 000 lives on account of unprecedented floods. Had 

 China's forests not been destroyed, such floods would 

 not be possible. In a lesser degree, but at the same time 

 strikingly impressive, is the report of flood losses in Ohio 

 aggregating $1,000,000. It is the loss of forest cover 

 which in great measure results in flood conditions. 



With all there is at stake both as it concerns business 

 conditions and conservation of the forests, the decision 

 of the Federal Trade Commission will be awaited with 

 eagerness and anxiety. 



