A :N-ATIOlNrAL LUMBER AND FOREST POLICY. 9 



clear that for a final solution there must be a far-reaching program 

 that will enable the Federal Government, the States, communities, 

 and the industrial forces to unite in a common effort. 



Such a program should be comprehensive enough actualty to ac- 

 complish the objectives sought by the public and essential to the 

 permanent well-being of the industry. Many efforts have been made 

 to find a solution for some industrial features or some public features 

 of the forest and lumber problems, and have failed because they left 

 out of account some outstanding question that must be solved at the 

 same time. Let me illustrate : 



REMEDIES HITHERTO PROPOSED INADEQUATE. 



It has been suggested that the problem of periodic overproduction 

 could be met by modifying the Sherman'Act in a way to permit agree- 

 ments to curtail production when justified by industrial conditions. 

 You will recall that this was proposed when the Clayton Act was 

 under discussion; and in 1916 the proposal was put forward very 

 specifically in a referendum from the United States Chamber of Com- 

 merce. It is out of place here to discuss in detail this proposal. 

 There are, however, two defects that are pertinent to the present 

 discussion. 



This suggestion was offered to the country as a conservation meas- 

 ure. You will recall the language of the referendum, that "there 

 should be remedial legislation to permit cooperative agreements 

 under Federal supervision in those industries which involve primary 

 natural resources, on condition that the agreements in fact tend to 

 conserve the resources, to lessen accidents, and to promote the public 

 interest.'' The report of the Chamber indicates that the question of 

 handling the forests — that is, forest protection and forest produc- 

 tion — is not a part of the plan. This means that the only conserva- 

 tion so far as lumber is concerned would be the saving of a measure 

 of waste made possible through the more stable and advantageous 

 trade conditions. The vital object of the public to secure a continu- 

 ance of the forests is wholly left out of account. 



A second serious defect is that it would not, in my opinion, be really 

 effective in bringing about a condition of permanent stability. The 

 forces that tend to throw an excess of lumber on the market are too 

 strong. Lumbermen often say themselves that a lumber combination 

 could not really exist because sooner or later some one Avould be un- 

 able to stand the pressure, and the usual break of market would 

 occur. This is doubtless true, and applies also to such an arrange- 

 ment as that contemplated in the proposed change of the Sherman 

 Act. 



