\(/estern Pine Asr'n lssues Statement on Lumber Indictment

Portland, Ore., Oct. S-Although the recent indictment of the Western Pine Association f,or alleged monopolistic practices is neither proof of violation nor indicative that judgment has bedn passed after full presentation of facts by both sides, it is, like any charge of violation of the law, a matter of serious ,concern to the accused organization. And, in view of the possibility of misinterpretation of the situation as it exists at the moment, the Association has thought it desirable to issue this statement.

The Western Pine Association, since its inception 30 years ago, has faithfully endeavored to comply with the laws of this nation. It is not a monopoly, in fact, it could not be in the face of competition r,vith the fir lumber of the Pa"cific Northrvest and the yellow pine of the South. Each of these woods is produced in greater volume than the Western Pines and used for most of the same purposes.

The manufacturers who are members of the Western Pine Association are not and have not been profiteers. The average price of their products in l9D was higher than it is today, notwithstanding the fact that in the meantime the rninimum wage has increased 2O per cent, the average wage has increased 15 per cent, and all other expenses o'f operation, especially taxes and public charges, have mounted rapidly.

During the past ten years there have been o,nly two years in which the average rvell-managed mill made a moderate profit. In at least half of the remaining years the losses were extremely heavy. Most manufacturers of lumber were compelled to strain their resources nearly to the breaking point to keep their mills in operation a.nd to afford maximum possible employment to men u'ho otherwise r,vould have been idle. The fact that they have survived and kept their place as an important factor in the industry of the United States is highly creditable to them. Had they shut down the effects upon many small communities would have bee,n extremely serious.

Only a few years ago, during the N R A, od which the I-umber Code was a part, lumber manufacturers were subjecte'd to compulsory regulation of production and the establishment of fixed minimum prices. They were taught that in the public interest they must curtail production and sell their lumber at or above cost.

Although all regulatory Code activities rvere definitely abandoned when the Code was suspended, manufacturers doubtless were left rvith a greater regard for the necessity of adequate information on the demand for their products, and an appreciation of the ruinous effects on both labor and industry of excessive accumulations of inventories. The Association has attempted to furnish adequate information to the industry in a perfectly legal manner, and is convinced that none of its activities has been against the interests of lumber buyers or the public generally.

Regardless of any accusations that have been made, the operators are proud of the excellent and constructive job they have done for their employees and their communities under difficult circumstances.

SAV.A.SPACE

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