40 Miscellaneous Circular 39, U. S. Dept. of Agriculture 
When reporting the comparative eral and State laws and with the ad- 
tests which were made at the southern ministration of such laws fail to see 
plant, the Forest Products Laboratory that we are the only nation on earth 
set forth the following results: which refuses to recognize that there 
can be restraints of trade in the pub- 
F t of d 1 lic interest as well as opposed thereto. 
£2 gelif of asgiads The only exception in this connection 
Grade in this country are those exceptions 
Regular Internal fan which have been made to meet the de- 
kiln drying kiln drying mands of labor and agriculture, 
— oe No manufacturer of lumber who is 
Bandbetter...__.____ 18.1t0221 14.7t0 7.1 familiar with the wide range of pro- 
No. 1common..._..... 82.2t0354 6.6to 9.1 duction costs due to the density and 
No. 2 common...:.... 028.0 to 31.2004.7 to 11.3 quality of stand of timber, topog- 
— raphy of country, and proximity of 
! Includes 2.2 per cent degrade due to torn grain. timber to market would urge to-day 
. 7 the thought of either fixation of prices 
Even with the use of ordinary kilns, by agreement or by governmental ac- 
however, the degrades are consider- ion. On the other hand, while there 
ably less than those resulting from agp never be complete cooperation in 
air-drying. Of course, to secure the aoreements to control production to 
best results from any kiln, it is neces- prevent overproduction, much could be 
sary that the supervision of the work accomplished both by agreement and 
should be most intelligently done. By by education. Certainly no one is so 
“most intelligently done” is meant, unintelligent as to require the manu- 
under the supervision of a man quali- facturer of lumber to produce more 
fied both as to tenchnical knowledge of logs than his mill can manufacture 
drying lumber and practical knowl- into lumber, and why should any 
edge of lumber. equally intelligent person require that 
1t is our conclusion that there is no umber should be manufactured in 
foreman in any sawmill manufactur- quantities beyond the ability of the 
ing organization who is of greater im- markets to consume? Yet this policy 
portance to the company than the ig the result of such laws. 
dry-kiln foreman. Drying lumber is Overproduction of any product nat- 
no longer a “knife-and-splinter” wrally increases the urge and neces- 
problem, but one which should be of sity to sell the product manufactured ; 
scientific exactitude. such increased urge in selling natur- 
Before closing my remarks, I desire ally reduces values. } 
to emphasize one or two subjects In the manufacture of lumber, cer- 
touched upon by several of the speak- tain proportions of the tree harvested 
ers who have preceded me. The neces- through the lowering of values become 
sity for large expenditures in capital unsalable, creating thereby losses in 
investments in raw material and plant money greater than the loss of timber, 
facilities to secure production, result- and results in a direct timber waste. 
ing in carrying charges thereto, to- This loss could be stopped in periods 
gether with constantly increasing tax of depression or overproduction if we 
burdens, creates an urge of production could legally have had intelligent co- 
to provide funds to meet these re- operation in a rational control of lum- 
quirements. ber production. It is my opinion that 
The increased public demand for during the period of the last 25 years 
good roads and better school facilities, the average price for the total period 
together with the ready market for under such a control would not have 
tax-free securities, is constantly in- increased beyond the average price ob- 
creasing the tax rate, making it neces- tained, but would have resulted in an 
sary to secure capital conversion and increased life of the industry of nearly 
profit to meet these requirements. one decade. It would seem, therefore, 
The economic effect of unwise Fed- to me that the very first step in tim- 
eral and State trust laws and the un- ber conservation should be a correc- 
certainty resulting therefrom prevent tion of unwise and uneconomic laws 
intelligent cooperative effort to pre- which not only permit, but force, waste 
vent production in excess of the pub- through their operation. All students 
lic requirements. For some unknown of current economics are bound to 
reason those charged with the re- know that in many of their effects our 
sponsibility of the enactment of Fed- antitrust laws are archaic.