Fageol and Moreland Consider Lumber Jam, Like Oil Chaos, Merging of Manufacturin$ Points Sherman Act Weakness and Sales Organization

Recent rumors to the effect that Fageol and Moreland have developed plans for a merger have been answergd by a statement- releised from both Mr. L. H. Bill, president, Fageol Motors Company of Oakland,,and Mr. W. L' Morelani, vice-president, the Moreland Motor Truck Company of Burbank. This statement follorvs:

"A plan of consolidation rvill be presented to the board of directors of both companies the early part of January at which time the values and benefits of merging will be given definite consideration.

- "It is evident that the Pacific Coast and inter-mountain states will be the center of activity in a new era of transportation development during these prosperous-years that wilt follo* this present period. It is believed that the future destiny of business in the entire Pacific area' which includes great undeveloped markets abroad, offers even greater bpportunities for a strongly organized western manufacturer of transportation equiprnent.

"There is a definite need and rvidespread demand for a line of motor trucks aud busses built in the rvest by an organization with interests concentrated in the Pacific area. 'Western owners and operators rvant transportation equipment designed, engineered and built to meet their special requirements.

'-Plans are no\\' being made to take the necessary steps to build a manufacturing and sales organization to take advantage of the opportunities of this new period. Consideration is being given to the benefits of merging these trvo outstanding coast truck and bus builders into one stronger manufacturing and sales organization."

(Editorial in San Francisco Chronicle)

The state of the lumber industry, about which the government at Washington is exercised, is like that of the oil industry, only worse, probably. It is a chaos of disorganized production, uncontrolled competition, unprofitable to everyone and the devil take the hindmost.

Like the oil men, the lumber men know well enough what is the matter with their business and know what ought to be done to cure the trouble but, again like the oil men, the anti-trust'laws won't let them. Like the oil industry the lumber industry needs 'controlled production to stop waste and stabilize the market.

This cannot be done without agreements. Just let the lumber men try to make such agreements ! The Sherman act and the various state anti-trust acts hang heavy over their heads.

The government is sympathetic, just as it is and has been with the efiorts of the oil men to pull out of their slough of overproduction and disorganized marketing, but the antitrust laws tie Washington's hands' The action needed to put economic order in the lumber industry as well ,as .in lhe oil industry may be highly benevolent, good for the industry and for the country, but the Sherman act makes no distinction between benevolent agreements and wicked agreements.

This is the trouble with the Sherman act and its- progeny of state anti-trust laws. Its framers, intent on protecting free competition, did not foresee the economic changes which have now brought about a state where uncontrolled competition means merely demoralization to some kinds of induitries. Their vision did not take in a time when useful combinations would need to be promoted as well as vicious combinations repressed.

The Sherman act needs to be reframed in the light of the ronditions of the present.

J Con$ratulations

Vn^l Bowe, Los Angeles, Southern California representative of the National Lumber Manufacturers Association, has been wearing a big smile and passing out the cigars to his friends during the past ten days, the occasion being the arrival of a baby girl, Virginia Katherine Bowe, on December 20, at the St. Vincent's Hospital, Los Angeles' He reports,that Mrs. Bowe and the new arrival are doing nicely.

We manufacture and sell-Split Redwood, Ties, Postr, Shaker, Grape Stakes