The Shingle Trust Collapses
A failed attempt to artificially inflate lumber prices leaves the industry in chaos.
The story, cleaned up
A cleaned-up reading of the newspaper page: spelling and layout repaired, one story lifted off a crowded page. It follows the original closely but it is not a transcription. The original page is below; read it if a detail matters.
The western Washington shingle trust succumbed to the inevitable and went to pieces late last week. An order had been issued closing down the 300 mills that were in the association, but it was not obeyed by the larger ones. The consequence is a demoralization in prices. The dissolution of the trust comes as a surprise to some, in view of the fact that it had been successful in getting the mills to close down twice before, in order that production might be curtailed. Others profess not to be surprised; as they knew that the action of eastern dealers in standing together in a determination not to buy while prices were maintained at the increased rate, would result in the smash up. It goes to show at any rate, that in all combination projects the buyer must be taken into consideration, also that high prices operate to decrease the demand.
“It goes to show at any rate, that in all combination projects the buyer must be taken into consideration.”
This 1900 report on the collapse of a shingle cartel highlights the perennial struggle between market monopolization and consumer pushback. Just as turn-of-the-century mills found that consumers wouldn't sustain inflated prices, contemporary housing and lumber markets remain highly sensitive to supply-side manipulation and the hard limit of what buyers are willing to pay.
From readers
No comments yet. If you know something about this story — a correction, a family memory, a source — it belongs here.