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SAN DIEGO Branch office- gram for National F orests' which was submitted to the Congress by the Department (of Agriculture) about a, year and a half ago."

Declaring that the wood industries should take just as long steps as those of any other industry, Dr. I{arper emphasized that the required research is the task of all concerned. "Let me make it clear that we in the Forest Service look upon the job as a joint responsibility of agencies-private, state and university, a^nd federal."

He said, "I believe we would all agree that our research responsibilities go beyond National Forest considerations alone. Wood is a renewable natural resource and its production is mainly in private holdings, many of them quite small. These holdings need markets for the timber that is to be grown. Moreover, the production, processing and consumption of wood, taken all together, are essentially important activities to our nation's economy. They make use of a natural resource that will help keep this country strong.

"We should not, and do not now or expect in the future, to carry the entire research load. The load is better shared among private and public agencies," he stressed. "I believe that in the area of research on wood utilization, the I'orest Service can make its most valuable contribution by emphasizing basic research at our Forest Products Laboratory."

The speaker noted the fact that some of the state universities and other colleges are expanding their programs also, with special emphasis on basic wood research, along with graduate training of wood scientists and engineers. "Some even have housing research programs and include the fields of sociology, architectural eng'ineering, and the testing of new materials and methods. We hope that all such programs may continue to grow."

The wood industry, too, has a vital role in the research area, Dr. Harper said. "Future progress in developing new and better uses for wood, and in expanding markets for lumber and wood products, is likely to depend in large measure on industry research in product improvement and market development."

Congress Blamed for Swallowlng-up of Small Companles by Large Corporatlons

The blame for the disappearance of the small, family-owned business into the corporate structure of larger companies was laid at the door of the Congxess in a speech by Thomas J. McHugh, Boston lumber industry executive, bowing out after a one-year term as president of the National Lumber Manufacturers Association.

McHugh, chairman of the board of the Atlantic Lumber Company, addressed the association's annual meeting at the Shoreham hotel here. I{e said, "The disappearance of the entrepreneur, the man who has built America, tlre courageous self-reliant ambitious proprietor of his own business, rests squarely in the laps and on the consciences, f trust, of the Congress of the United States."

The speafter, who is observing his Golden Jubilee in the lumber industry, continued, "Some of these elected representatives, of both parties and in sufrcient quantity to constitute a majority and pass the laws, f might add, have fancied themselves as modern Robin Hoods, depriving citizens of the legitimate fruits of their efforts, legitimate savings and legitimate investments to curry favor with those vocal minorities arnong the electorate who seek security through Goverament gifts, grants and grabs rather than through personal work, personal thrift, personal prudence and personal responsibility based on personal pride."

McHugh offered an Election-Day challenge to the new Congtess which, he said, will be held responsible by history if it fails to allow industry sufrcient return on its investment and permit it to reinvest its returns, "thus providing new jobs for the thirteenmillion new people who will be entering the work force in the next ten years."

He cited tax laws as the motivating factor for small companies to sell their assets to the larger ones. "The present tax structure is destroying the incentive which has traditionally allowed the little fellow to sell his business and retire, or leave his business to his children. Ife sees the merit of selling his business to an integrated company where he can be guaranteed some security for a growth potential for his investment of a lifetime of thrift and energ'y. None of us can question his motives for survival and a fair return for his years of labor in providing jobs and securfty for others."

Noting a tendency on the part of "vote-conscious economic theorists to look upon the merger and the acquisition picture as an evil perpetrated by the larger companies upon the small," McHugh pointed out that "we have the paradox of the little fellow seeking to find a snug harbor by selling out to a fully integrated operator where he can continue to earn a fair return and protect his in-

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