The Lumber Trust Comes to Seattle
Seattle lumber firms move to form the Central Lumber Company of California, pooling sales to squeeze out British Columbia competition.
The story, cleaned up
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The lumber trade in this city is interesting. Negotiations have been in progress for some time looking to a combination of the lumber firms, and a committee has been appointed, a plan outlined and formulated. Even a new company has been organized to make the combination operative.
The lumber men believe that trade with the East has been carried on for a year at a loss of $100,000, and that many concerns have been forced to sell cheaply to have work performed in British Columbia rather than in this city. The feeling is that there is little prospect for even small profits in the foreign market. Under the plan, the combination is to take the trade and handle it carefully until there is a reasonable profit, with no undue haste.
The following firms were represented at the conference: Preston McKinnon, Wale & Pepe Talbot, Harbor Commercial Co., the Pacific Lumber Co., Hanson Co., and the Wood-stade-Thayer Lumber Co. After an informal discussion a committee of three was appointed to report a plan of action. This committee urged that all the interested companies unite in the creation of what is to be known as the Central Lumber Company, of California. It urged that all consignments be made to this company, which would then appoint its selling agents. In that way all sales would come under the direct supervision of the combination. Every ten days there was to be a division of the profits upon a basis fair to all the companies. The plan seemed to meet with approval and it was hoped that it would go into operation today. Certain delays have occurred, however, and it is difficult to tell when the combination will be formed.
“The lumber men believe that trade with the East has been carried on for a year at a loss of $100,000.”
The consolidation of Northwest timber interests in 1902 foreshadowed a century of corporate concentration in the region's signature industry. Then as now, small operators feared being squeezed by a combination that controlled prices and markets.
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