The Seattle Mill Owners’ Secret Cartel
How local timber barons in 1886 fixed prices and controlled production to squeeze profits from the West Coast lumber trade.
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.
A gentleman down from Tacoma last night shared information about the combination among the mill owners of the coast, which was entered into in San Francisco last week and will go into effect the 1st of January. It is more comprehensive than previous ones, and seems to be somewhat on the plan now in vogue among railroads which form pools. The mill men agree among themselves as to the hours of work, the output allowed each mill, and other details. In San Francisco, the yards supplied by the different mills are continued in operation, but the proceeds of sales go into the hands of an agent of the combination and are divided among the several members pro rata, according to the amount of lumber sent into San Francisco during a certain period. This is expected to prevent any company from cutting rates, or in other ways violating the rules of the combination. It is intended to raise the price of rough lumber one dollar per thousand, and probably other lumber and building material pro rata. This combination does not extend to orders from foreign countries.
“It is more comprehensive than previous ones, and seems to be somewhat on the plan now in vogue among railroads which form pools.”
In 1886, Seattle’s timber titans were already experimenting with 'pooling' and price-fixing to insulate themselves from market competition. Today's headlines about corporate consolidation and its impact on the cost of living show that the tension between localized civic needs and industry-wide cartels remains a defining feature of the Pacific Northwest economy.
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