340 UNITED STATES FOREST POLICY 



Lumber Manufacturers' Association, held at Centralia, Washington, 

 March 8, 1905, same to be maintained in all territory, with the excep- 

 tion of 50 cents per thousand discount to yard lines. The above agree- 

 ment to become void unless signed by 80 per cent of manufacturers 

 and wholesale jobbers. 



"Name of firm 



"Address " 



POOLS IN THE LUMBER INDUSTRY 



Pools have not been common among lumbermen, yet there has been 

 at least one example of this form of cooperation, among the manu- 

 facturers of Douglas fir. Under the provisions of the "export agree- 

 ment" of 1902, the lumber interests were divided into four districts — 

 Puget Sound, Columbia River, Oregon and Washington coast, and 

 British Columbia. The capacity of each mill capable of doing export 

 business was determined by a committee, and to each mill was allotted 

 a percentage of the total export trade. On all export shipments an 

 assessment of $3 per thousand feet was collected by the trustees who 

 managed the pool ; and any mill shipping over its allotted percentage 

 was assessed an extra $3 per thousand feet on such excess. A mill 

 shipping less than its allotment was required to pay $3 per thousand 

 feet on its entire allotted percentage; but it might sell its right to 

 another mill. Dividends were declared monthly and semi-annually, 50 

 per cent of the receipts from shipments being divided among the 

 shippers monthly, while semi-annually, after deducting expenses, the 

 remainder was divided among all members. This pool referred only to 

 the export trade, although some of its promoters enthusiastically 

 claimed that it had an important influence on domestic prices. 



OPEN PRICE ASSOCIATIONS 



A few of the lumbermen's associations are what may be termed 

 "open price" associations, and this type of organization is being 

 pushed. The theory of this type of association is that each manufac- 

 turer should fix his own selling prices as he sees fit and change them 

 when he desires ; but he should fix his prices intelligently, that is, he 

 should have the fullest and most accurate knowledge of market con- 

 ditions. The underlying theory is that instability and disorganization 



