RESULTS OF OUR FOREST POLICY 365 



fixing of price, would be as easily determined for lumber as for almost 

 any product. 



A thorough and exhaustive criticism of government regulation of 

 prices would lead beyond the scope of this book; but it will be appro- 

 priate to point out some of the difficulties in the way of such a scheme. 

 In the first place, there would be the difficulty of securing a commis- 

 sion of well-trained men, the difficulty of avoiding too great a repre- 

 sentation of politicians, such as cheapened the quality of the work 

 done by the Federal Trade Commission. In the second place, and 

 most important, there would be the difficulties connected with the 

 determination of prices, and the first question would be as to the basis 

 upon which prices should be established. A number of items would 

 have to be considered — cost of labor, logging and milling equip- 

 ment, original cost, interest charge and depreciation, fire protection 

 and taxes. Perhaps the most important item, and the most difficult 

 to work out, would be the value of the standing timber. It is difficult 

 to find any satisfactory basis for the determination of lumber prices 

 without taking into consideration the value of the standing timber, 

 and yet that involves a suggestion of a logical absurdity, a circle of 

 reasoning — to fix a price schedule on the basis of the present value 

 of standing timber, when the value of the standing timber is dependent 

 on the prices fixed. In the case of joint products, special complica- 

 tions would arise. For instance, the yellow pine forests of the South 

 produce turpentine and lumber. Hemlock is valuable for its bark as 

 well as for its wood. How should the price of the lumber be determined 

 with relation to the other products .f* Some mills produce different 

 kinds of products — lumber of many kinds and grades, shingles or 

 lath, and perhaps excelsior. How much of the fixed charges and how 

 much of the operating expense should be attributed to each product.'' 



It might sometimes be difficult to adjust the price of different 

 kinds of woods so as to do justice to each section of the country. As 

 long as there is competition between different sections of the country, 

 this is regulated, but if once this competition were eliminated, it might 

 be very difficult to find a satisfactory basis for the determination of 

 relative values in the various markets of the country. 



It is possible that price regulation by a commission might result 

 in an increasingly rapid destruction of our remaining forest resources. 



