Seek to Regain Lumber Export Markets

Washington, June 10-A bill calculated to revive the lumber export trade that in 1938 sagged to its lowest point in forty years, has just been introduced in the Senate by Senators Holman and McNary of Oregon. A similar bill is under consideration by members of the House Committee on Merchant Marine.

The Holman-McNary bill proposes to provide competitive shipping rates and adequate shipping services to lumber and manufactured timber products exported from the United States by putting into practice the policy of shipping aids to lumber export defined by Congress in Section 2ll (h) of the Merchant Marine Act of 1936. The bill would authorize and direct the Maritime Commission to grant subsidies to shipping operators to provide, or the Commission to prescribe, export rates as low as those of principal foreign competitors to the same common or comparably distant markets abroad; o.r for the same purpose to lease vessels and allocate space, or to operate vessels.

The advantage of foreign competitors in the export trade, in shippin$ alone, from subsidized rates or subsidized cargo or both, usually ranges between $tr and $2 per thousand feet. In addition there are foreign import discriminations against American lumber. The ,principal discriminations are the British levy, to/o C.I.F. on most American lumber, but no levy on Empire lumber, and the Australian-New Zealand additional duty on American lum- ber of one pound or $3.75 at present per thousand feet.

The effect of these discriminations and shipping subsidies on our lumber exports may be observed when it is shown that American export of lumber rose from l,OO4,000,000 board feet in 1899 to over 3,000,000,000 board feet in 198-D, and then, following the wave of foreign preferential tariffs, foreign import discriminations and subsidies, and with the Oriental situation, the exports dropped to 947,453,m board feet last year.

In 1928 softwood lumber was 85/o of the United States export and hardwood l5/o, and the nearly world-wide export of softwood sawn goods by Europe and North America found the American share N/o. By 1937 the American portion had dropped. to 9/o, although European export in that year was less by nearly one-sixth than l9%.

Last year our reduced lumber export was only 727/2% of softwoods and even the greatly decreased supplies of European soft saw-timber in export areas, which brought European export down more than one-third below 1928, failed to aid the United States, our share in exports of the sawn softwoods from Europe and North America being bat 8/o.

The Holman-McNary bill is a practical step toward securing, for American lumber exporters, shipping services and ship'ping rates no less favorable than those available to their principal foreign competitors. The bill should have widespread industry support.