POSSIBLE REMEDIES FOR MONOPOLISTIC CONDITIONS 27 



is not to assume that the original price, or even any subsequent 

 price paid, is an accurate index to the value of the timber, for 

 it may have no significance whatever. For instance the $6.00 

 per acre paid in the great Weyerhaeuser purchase of 1900 has 

 no significance as to the present value of the land. In order 

 to get any idea of present values it might be necessary to in- 

 stitute an extensive and thorough cruise of all the timberlands 

 in the country. 



Unfortunately, however, it appears at this point that the 

 whole idea of considering present values in the fixing of a price 

 schedule involves a logical absurdity, a "vicious circle" in rea- 

 soning. How can any price be fixed on the basis of the present 

 value of standing timber, when the value of the standing tim- 

 ber is directly determined by the price fixed? The value of 

 standing timber depends upon the price at which it is antici- 

 pated, the lumber can finally be sold; and how can it serve as 

 the basis for determining the price at which it is to be sold? 

 How can timber values and lumber prices each be in turn cause 

 and effect? 



In the case of joint products special complications would 

 arise. For instance the yellow pine forests of the South pro- 

 duce turpentine and lumber. Hemlock is valuable for its bark 

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

 determined with relation to the other products? 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 expenses 

 shall be attributed to each product? 



It might sometimes be difficult to adjust the price of dif- 

 ferent 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 matter 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. 



Under the present regime, to a considerable extent competi- 

 tive, most lumber prices tend to fluctuate greatly, because of 

 the fact that the demand for lumber is extremely variable, 

 while the supply responds only tardily. Now it is clear that 



