BRADIEY BRAND HARDl-vOODS

Scientific kiln dryiog prcserves within our productr nature'l rturdy and beautiful qurlitiet' whih

Modern machinety and skilled human effort iuctifier our slogan

TRY

OAK FLOORING

GUM FLOORTNG

WHITE OAK TRIM

RED GUM TRIM

CASING BASE

OAK WAGON STOCK

BEECH FLOORING

GREEN

US FOR AROMATIQUE CEDA,R LINING

RED OAK TRIM

SAP GUM TRIM

MOULDINGS

GUM FURMTURE STOCK

Furniture Stock in Sets CUT TO SIZE Ready to ^Assemble

Flat Surfaces Hardwood Trim Sa,nded

TACOMA BRAND Sandcd Finirh Doorr Mldsr.

WARREN

C().

ARKANSAS ARKANSAS

C. M. Clark, Representative [.os Angeles

(Continued from page 40) is unfortunately true, and it is tamentable that we do not seem to be equal to the task of checking this form of economic waste. Most other industries. however. are using a raw material that is replac6able annually instead of once in a century.

One of our leading authorities on the lumber and timber situation said the other dav: "A nation confronted by an impending shoitage of standing timber has been -delused with a flood of lumber which it could not qlsorb except from the bargain counter. The lumber manufacturers have let the lumber auctioneer set the pace, have aided and abetted him with shipments of transit cars and cargoes on consignment. They have peacefully labored to beat down the produc- tion costs by a half a dollar, and to increase the volume for the auctioneer to dispose of." As I.have just shown, this condition-involves f,?eatly increased waste, both in the process oI logging and of manufacturing.

More than a passing notice shoutd be given the second stage of the lumber movement, mainly the distribution. From a conservation standpoint this is far from ideal. Lumber for the most part is produced at a great distance from the point of consump- tion. It goes into many highly competitive markets, and into a great variety of uses with which the average manufacturer is not in touch. There are very {ew lumber manufacturing corporations whose output is large enough to warrant the expense of maintaining a selling force sufficiently large to cover all the markets in which they seek an outlet for their products. A large and increasing part of our lumber outpui goes into the hands of the wholesaler, -or of the com_ mission man; thence to the retailer. and -lEnce to the consumer. This course is universally followed by the thousands of small portable mills to which I have referred. and whose output constitutes such a considerable percentage of our total production.

The distance that separates the producer and the retailer, together with the intervention of the wholesaler, prevents that intimate knowledge of each other's problems (many of which are mutual) which is necessary to a really intelligent, cqnservative handlini of the output of the tree. The retailer of today is- required to carry in stock a large numbei of species of lum_ber, and many sizes and grades of each species. The recently greatl,r increased efficiency of railway trans-poitatioir has permitted him to materially reduce his investment in inventory, but it has in no w_ay.enabled him to reduce the multiplicity _of .sizes and species that he must be pre- )/ed to instanlly supply. 'It is easy to understand therefore why the retailer lacks enthusiasm when it is proposed to add odd widths and lengths in all species and grades.

The next and last factor in the cycle is the consumer. There has been and is considerable waste in this process, but there was a tegitimate reason for much of it. Lumtibr, as you all know, is ngt a homogenous product as it cor4es from the log, but comprrises a large numbtr of grades, some of which are best suited for one purpose, and some for 'another. The consumer naturallv cannot have knowtedge of the_ ggades, sizis and species, and must therefore rely upon the specifications written by his technical advisors, the architect and the engineer. MEMBERS OF THESE PROFESSIONS THEN ARE, TO ALL INTENTS AND -E].IRPOSES. THE CONSUMERS, AND -?HEY HAVE A MUCH MORE INTIMATE RELATION TO TRUE CONSERVATION THAN THEY HAVE EVER

Until very recently, however, these professions have been handicapped for the reason that there have been no general lumber specifications through which they could assure their clients the quality and size of lumber best suited for their specific purposes. Within the past two years, however, the lumber industry, through the leadership of the Department of Commerce, and with the very helpful coop€ra- tion of the Department of Agriculture, has been endeavoring to standardize the sizes and grade names of lumber. This is a vast undertaking, but we are well on the way. When it is an accomplished fact, and lumbir is generally grade marked, as is now proposed and now practiced in some quarters, it will be within the power of the architect and the engineer to prevent any substitution or any mistake by' specifying that their grades and sizes shall be furnished according to the rules of American Lumber Standards.

Reviewing then the present conditions we find lack of utilization due to the inertia of old trade practices originating bef6re anyone seriously suggested timber conserva- tion. We find it due to poor merchandising methods on the part of both producer and distributor, caused by the distance from markets, the great number of producing units, and in no small degree by previous lack of standards in grades and sizes. And lastly, we 6nd that the greatest waste is the direct result of overproduction.

The industry is earnestly engaged, as I have before stated in the correction of these first two evils, and it is equally earnestty engaged in aggravating the last one. The output in 1924 was considerably greater than in 1919, when the whole world was crying for more shelter.

Committees composed of lumber producers, wholesalers and retailers are working with engineers and architects on measures to eliminate waste all along the line, and also to protect the consumer in what he buys. The lumber standardization movement. to which I have referred. is the foundation of this program. Progress in this matter is as rapid as could reasonably be expected.

It is when we approach the third cause of wsate, namely, overproduction, that we are up against a real problem. Perhaps the 6rst question to ask is, what is the urge that' impels men to sacrifice property which they cannot replace, in the face of almost certain loss, or at least with no promise of a fair profit? The Fir lumber manufacturers of the Northwest cut more lumber in 1924 than in any previous year, and closed with a loss of over four millions of dollars.

The hazard of forest 6re is often an important factor but the answer lies more in the peculiar conditions I have outlined as surrounding the manufacture of lumber. It is chiefly the urge of the increasingly heavy annual property tax, pyramiding year after year.

I have recent information from owners that two large saw mill plants now under construction are being built solely through the necessity of more rapid realization to meet, and to sooner escape the increasing taxation. These men all admit that there is too much production, but hope to squeeze through by reason of the high quality of timber, and better manufacturing and marketing practices. The states and the localities in which these mills are being built are doubtless greatly pleased over these projects. A glance at some portions of the Lake States will clearly demonstrate that the local interest is best served by prolonging the life of the virgin forest. It will be a long time before a second crop of timber is harvested.

Generally speaking, the industrialist pays but one annual tax on his raw matefial which he forthwith converts and markets. I can think of no other product which goes to the consumer taden with such a succession of taxes as does lumber. The Honor- able Frank O. Lowden, speaking as Chairman of the American Forest Vy'eek Committee, said: "Taxation relief is the heart and soul of the forest question." This statement applies with as much force to the conservative utilization of our remaining forests as it does to any program for the redtoration of these forests through private initiative. Has not the time arrived for the Federal and State governments to approach this matter from the standpoint of the general welfare of all the people? Is it notlime to find some substitute for the present form of timber taxation, and permit our stock of stand- ing timber to be drawn upon only as the neg-ds of the people demand? Any pubtic policy based on the assumption thaa this problem can be solved without the solution oi the forest tax problem is simply leading the country up a. blind alley. So long ai rncreasrng annual ad valorem taxes are pyramided upon standing timber, as distinguished from taxes levied when and as the timber is cut, just so long will the timbei be cut, not to meet the ascertained needs of commerce, but to escape a burden that becomes almost intolerable. Cutting timber to meet the reasonable needs of consumption is economy; cutting it to avoid confiscation of capital values is waste; but it is a waste due in this case not nearly so much to the voluntary act of the timber owrfer as to an unwise method of taxation. This question must be faced squarely if we are to have real conservation, and real reforestation practiced in the woods and not on paper. The Clarke-McNary law opened the way for progress toward a solution of the forest fire problem. The mere existence of this law, however, is of no avail. The states and the nation must come whole heartedly under its provisions backed by sufficient appropria- tions to do their proper share, as the timber owners are and have been doing.

The complexities of our industrial and commercial life are developing many problems that indicate clearly the neceisity of much closer affiliation and cooperation between the Federal and State governm€nts, and between the State governments themselves. The multiplicity, and the over-lap- ping of death taxes, both Federal and State, is a prominent case in point.

The urgent need today is for a unified, comprehensive, and consistent public policy toward our natural resources. Such a policy must represent both the Federal government and the States, and should be formulated in accord- and in cooperation with the best thougtrl of the indristries engaged in their utilization. These industries should not bc prevented or hampered by unsound interpretation or by unwise application of thc laws governing business organizations. The trouble today is that in the application of these laws to an industry, the investigation is usually made by men of no knowledge of the general conditions which may makc monopoly in that industry an utter impossi- bility. A single letter might and does induce a chase after the shadow, to the utter neglect of the substance. Woutd it not be better for governmental agencies endowed with inquisitorial powers, to employ ag€nts each with basic general knowledge of a leading industry and assign such agents so equipped to each in{ustry? The government would have more reliable information, and industry would be assured a square deal. The ohiect of all so-called Anti-trust laws is to protect the public from the imposition of monopolies, and to secure the economies of competition; but it is just as important that any waste of competition be avoided as that the economies be enjoyed. The public is at all times protected by both State and Federal statutes that can and

(Continued on page 44)

These