Lumber and Pulp Tariff Urged in Revenue Bill

Washington, April 2S.-Inclusion in the Revenue Bill of appreciably higher duties on lumber and duties on wood pulp imports was urged and opposed in arguments before the Senate Committee on Finance at hearings April 20 on the revenue measure now before Congress. An excise tax as high as $5 per thousand on dressed lumber was asked by Col. W. B. Greeley, secretary-manager of the West Coast Lumbermen's Association, who testified such an impost was essential to the salvation of the forest industries and their labor. Governor Hartley, of Washington, urged affirmative action by telegraph, emphasizing distressed conditions in the Northwest.

David J. Winton, Minneapolis, Minn., representing a number of lumber,companies having Canadian holdings, and P. C. Bloedel, Bloedel-Donovan Lumber Company, led the opposi'tion. Mr. Winton asserted that the additional tax was not needed in order to put American and Canadian producers on an equal footing. Mr. Bloedel, whose company has interests in Washington State and British C'olumbia, said present conditions were more likely the result of unstable rates and chaotic timber ownership factors than of lower production .costs and ,cheaper money in other countrtes.

Ficturing distressed ,conditions in the Northwest, Col. Greeley told the Committee "the sudden and rapid shrinkage in the ,consumption of lumber in the United States has for,ced upon the domestic industries a most drastic curtailment in production, closed down over half of its sawmills, and has thrown more than 60 per ,cent of its labor out of employment." Under these conditions, and with surplus lumber stocks given by the U. S. Timber Conservation Board as amounting to 4,000,000,000 board feet on December 31, 1931, the domestic market is chaotic; and at the same time foreign markets are being lost to Canadian and other producers, he said. The loss was ascribed to depr.eciated foreign currencies, the British Empire preferential tariff and many special tariffs adopted by foreign countries.

Col. Greeley made the point that in their present plight the forest industries are entitled to other industries, notably such natural resource industries as coal and oil. He asked specifically that the following import tax provisions be incorporated in the pending legislation:

"1. On rough lumber ofall softwood species, $3 per thousand b.f. measure.

"2. On dressed lumber (planed on one side or more) of all softw,ood species, $5 per thousand b.f. measure.

"3. On logs, poles and piling of all species, $1.50 per thousand feet log scale.

"4. On pulp wood of all species, $1 per standard cord of 128 feet.

"5. On mechanically ground wood pulp, one-fifth of one cent per pound, dry weight; chemical wood pulp, unbleached, one-third of one 'cent per pound, dry weight; chemical wood pulp, bleached, one-half of one cent per pound, dry weight.

"6. On ,cross arms, shingles, lath, handles, turnery and fence posts, 25 per cent ad valorem."

"While some reductions in the volume of imported forest produ'cts would follow the imposition of import taxes prgposed", Greeley said, "the revenue therefrom to the Federal Government would constitute a substantial item."

Contending against the tariff, Mr. Winton said the spruce supply in this country was not sufficient; and that, while the tariff would not achieve the ends intended it would unfairly result in higher prices for spruce to American consumers,

The American producer will not find an increased market as a result of this tax, Mr. Winton argued, but Canadian interests will find various foreign markets, competing against domestic producers, to offset the loss of American trade. He argued that spruce lumber and wood pulp muSt be treated alike; otherwise a great injustice will be done the Ameri,can owners of spru'ce lumber mills in Canada.

Others appearing in support of the tariff included H. B. Van Duzer of the fnman Poulsen Lumber Company, Portland, Oregon, who said that the unprecedented times of distress and labor idleness required an exceptional remedy'in the form of tariffs; Ossian Anderson, Everett, Washington, speaking for wood pulp, who said the tax would offstt the advantage gained by great Britain and Sweden in going off the gold standard; Ralph Shaffer, Tacoma, Washington, emphasizing the connection between lumber and wood pulp; R. M. Ingram, Aberdeen, Washington, who called attention to the keen competition with British Cotrumbia in the shingle trade, and William D. Welsh, repre: senting the American Legion, who urged the tariff as a means of relieving unemployment distress. From the Northeast Clarence C. Stetson, Bangor, Me.,'W. N. Wentworth, Old Town, Me., and Thomas Allen, of Boston, spoke in behalf of a tariff on wood pulp.

Among those opposing the tariff were H. P. Christian, general pur'chasing agent Robert Gair Company, New York pulp purchasers, (heading the Temporary Committee Opposing a Tariff on Wood Pulp) who said the wood pulp available from domestic sources was only one-third of the requirements of 'converting mills and that a tariff would work a hardship on such mills; and Elisha Hanson, Washington, D. C., American Newspaper Publishers Associatioq, who asserted the tax would drive the American manufacturer of newsprint out of business and seriously affect from 1,800 to Z,ffi daily newspapers and from z0f[{t- to 22,ffi0 weekly papers dependent upon su,ch domesti,c newsprint..

Will Manage Fay-Egan Sales

Announcement is made by R. W. Egan, president of the J. A. Fay & Egan Co., manufacturers of woodworlcing machinery, Cincinnati, Ohio, that F. T. Crane has been promoted to the position of sales manager. Mr. Crane is well known to the woodworking industry in the Chicago district where he was formerly district sales manager, previous to being called to the plant several years ago to take charge of the school and government sales division.

Mr. Crane has many years' experience in the woodworking industry, is thoroughly familiar with the requirements of the trade and has a wide acquaintance in the industry.