ing and more difficult physical logging conditions. 
Both manufacturing and distribution costs must 
be kept at a minimum if lumber from this region 
is to continue to compete successfully in eastern 
and foreign markets. 
Data from the Census of Manufactures indicate 
that in 1929 the forest industries of the region paid 
in salaries and wages approximately $125,000,000 
and produced goods valued at more than $350,000,- 
000. For the same year the value of sawlogs, pulp- 
wood, fuel wood, shingle bolts, poles and piling, 
fence posts, and other timber products was between 
$150,000,000 and $175,000,000. During 1929 
lumber production was at a peak, wages and prices 
were high. Since then lumber production, wages, 
and prices have declined greatly. In 1935 lumber 
production was but half that of 1929. However, 
the relative importance of the forest industries in 
the economic life of this region has changed but 
little, as other industries have followed parallel 
courses. 
Integration 
The forest industries throughout the country are 
not integrated vertically to nearly so great an ex- 
tent as some other large industries. In the Douglas- 
fir region, in particular, there is little complete 
6 industries. 
vertical integration '® in the forest 
Many of the large lumber manufacturers own 
standing timber and do their own logging, and 
some of the larger companies own and operate 
steamship lines. Some lumber manufacturers pro- 
duce sash and doors, box shook, and shingles, but a 
large percentage of the output of these items in this 
region is produced by independent establishments. 
Many of the lumber manufacturers here sell 
lumber at retail from their plants, but only a few 
of the larger mills are interested to any great extent 
in retail lumber companies. Several of the large 
companies own or control retail line yards in the 
Middle West. Many of the Douglas-fir manufac- 
turers are affiliated with lumber-manufacturing 
interests in the Lake States and the South; hori- 
zontal integration of this sort is quite common. 
16 By ‘complete vertical integration”’ is meant performance 
by the same concern of all processes of manufacture and 
distribution, from harvesting of the raw material to dis- 
tribution to 
facture of byproducts. 
the ultimate consumer, including manu- 
The pulp industry is dominated by companies 
The 
largest wood-pulp manufacturer and its affiliated 
not affliated with lumber manufacturers. 
companies own standing timber, and fill some of 
their requirements for raw material by logging 
their own timber. ‘This group is also affiliated 
with companies that manufacture and distribute 
many kinds of paper products. A large percentage 
of the wood-pulp manufacturers make paper. 
The plywood and veneer industry is quite inde- 
pendent of other forest industries, and very few 
of the plywood and veneer manufacturers have 
any direct connection with timber owners and 
lumber manufacturers. 
Investments 
The total investment in the forest industries of 
this region at the present time probably exceeds a 
billion dollars. Of this amount about half is rep- 
resented by privately owned standing timber and 
the remainder by logging equipment, manufactur- 
ing plants, and working capital. The total invest- 
ment in logging facilities is estimated at approxi- 
mately $85,000,000, and that in lumber-manufac- 
turing plants at $140,000,000 to $150,000,000. Not 
included are common-carrier -railroads, steamship 
lines, and other shipping facilities that depend 
mainly on the forest industries for their traffic. The 
private investment in standing timber and _ the 
logging and lumber-manufacturing industries is 
roughly $100 per 1,000 board feet of lumber cut 
annually. ‘The investment in forest industries, 
including raw material, is approximately $4 per 
1,000 feet of privately owned standing timber. 
Labor 
Labor is probably the most important single cost 
element in the forest industries. It is estimated by 
the West Coast Lumbermen’s Association (24) that 
in 1935 nearly half the return received by the 
Douglas-fir lumber manufacturer from the sale of 
his product went for labor. The association states 
that on an average two 8-hour man-days are re- 
quired to produce 1,000 board feet of lumber and 
that in 1935 wages per 1,000 feet averaged $8.89. 
The 40-hour week is established in the lumber 
industry in this region. Hourly wages in the log- 
ging and lumber industries averaged in 1936 about 
