Interior Decordtiqte Panels with PLYWOOD andVENEERS

P,lNn Srogtora\&NEER in OAK

Qrartctd white Hain whitc WatnutBIRCH

Philippine-Llalngnny rvreH&erw a.

White ?dnr

RED GUM

Au&ndFMd !)nrehctedORE G ON PINE

Once the splendor of aBaronial dining room, or the richness of wood,wain, scotted living rooms was a luxury. Now, with plywoods, beautifully patterned in grain, and perfectly matched, there is found a rcal economy to-all who build for permanent beauty.

Also

Setd for Price List

T"lifornia

gSS-g6Z sourrr ALAMEDA sTREET

Tclcphonc TRinitl cr57

' Mail,ingAddrcrr.'P. O. Box95, Arcade Station

I.oS ANGELES.CAUFORNIA

(Continued from Page '16) timber, which was on their books at $2.60, showing a net loss of $1.37, or $1,760,450 for these eight months. We know this situation can be changed by proper financing, by provision of proper facilities, by complete study of markets, and by proper organization of the industry to sell and distribute its own product. The lumber industry in the past has made its principal profits through appreciation in timber values. We hope the time will come when it will make some manufacturing profits, as well as profits through appreciation. Appreciation in timber is not an accident, It is the result of the operation of the law of supply and demand.

There is a direct relation between timber depletion and timber values. There are no authoritative figures on the standing timber in the United States as of 1909-this because each earlier estimate had been made on the then merchantable timber. Other timber became merchantable subsequently. Therefore, it was necessary for us to take the best authorities' present estimates, and add the production by years to 1909, to arrive at the total amount of standing timber as of that time. We found through this process that the total arnount of standing timber in the South in 1909 was 382,779 million feet, and in 1926, 156 billion feet. In other words, in the South there has been a 6A7o depletion in that period. From these figures we found that for each one per cent of depletion, values of the remaining stand actualiy increased 20c per thousand feet. We weighted the value of standing timber each year, with the values of such years as disclosed by such authorities as James D. Lacey & Company of Chicago and Lemieux Brothers of New Orleans, and assumed that all timber was worth the yearly value of mer.chantable timber. We recognize the method was not altogether correct, because each subsequent year has seen timber come into production that was previously not considered merchantable timber, but for the purpose of developing the ttrpught it was proper to use these figures. Through this process we'have found that the present stand of timber in the South, being 4ffo of the original stand in 1909, has a value 53Vo greater than the total stand in 1909. In the same manner we found that the total standing, privately owned, timber in Oregon and Washington, and all the stand in British Columbia, in 1909 was 430,851 million feet, and that as of the first of 1926 the total stand v{as 299 billion feet. Weightiqg this standing timber for each year on the values reported for such year, we have found that the value of the 1926 stand was 68Vo more than that of the original stand in 1909, notwithstanding a depletion ol 3A.2/o of the original stand. Again, we must recognize the fact that all of the timber in the West in these years was not of equal value, but again for our purposes the 6nal result is the same. The point I want to bring out is, notwithstanding the bad current showing of the industry, there are great possibilities from the economic viewpoint in the future, by reason of depletion and its effect upon the remaining timber values. T'his makes it a sound proposition, not only from the point of view of future possibilities, but also the possibilities of financing. It is easy to forecast the approximate future value of timber, predicated on past experience. This prediction will work out substantially. All other sections of virgin timber of the United States have been retarded in value by the development ol new tinbered areas. This will not occur so far as fir is concerned. because it is the last stand of virgin timber remaining in America, This economic condition will prevail whether the consolidation is effected or not, but it will be crystallized earlier if such a consolil dation is effected than if the industry continues along its present lines of business policy. While those engaged in the industry may recognize the necessity of changing rnethods to meet changed conditions in the business, they find themselves individually unable, for financial and other reasons, to make erffective such changes. Consequently they will continue their present methods, hoping that some day they will be in position to correct thorn. As a result losses will continue, timber will be liquidated without its proper return to those engaged in the industry, and without benefit to the Northwest. Therefore, the consolidation could do many things that the individuals in the industry apparently are unable to do, and it could do it now instead of some time in the far distant future. Before stating what the consolidation coutd do in the way of accomplishing the desired ends for the betterment of the industry and helping the Pacific Northwest, I wish to pause for a mornent on one point, and that is, I want to say there never was any other regional timbered area of the United States that enjoyed the same opportunities of distribution of its product as the Northwest Pacific Coast. The Northwest has access to every port in the world; by reason of the quality of its timber it can overcome any freight difterential that now exists, and market its product profitably in every state in the Union, whether it is a lumber producing section or otherwise.

In order that we may have a summary of the situation from a disinterested source, I desire to quote the conclusions of the National City Company's report on what a rnerger could do:

"What a carefully put together, financially strong, well managed large combination of Douglas Fir producers might be expected to do:

(Continued on Page 52)

The Origtnal Plast lc, Sraterproot Portland Genent Beeaure of unrlvated rtrength, plartlctty ind water' proofnGssr Monotlth has been chocen tor unuiu.l typcr of constructlon - lncludtng ltghthorseq rce walll, olt retcryolrc, brtdgeq rwfunrnlng 1roo|r and publtc nonu' rnent$ The rane quatltles tnakc lt unequaled tor honeq hotelr, churcher, cchoole, ltbrartet-anJ tytrc of butldlng

DTANUFACTUNTTD FBOM BASTC PATTNTE Wdte for boohlet