these prices have never been based on the cost of growing timber, as are the prices of manufactured articles, upon the cost of production, but have been fixed by competition based simply on the cost of manufacture. While the price of lumber is to-day much higher than it was fifteen or twenty years ago, we must realize that a considerable part of this increase is due to the higher cost of labor, and the increased transportation charges, due to the inaccessible position of much of the timber now being cut. While the stumpage price has also advanced, it has not yet any relationship to the actual cost of growing, but only to the scarcity of, and demand for, the particular kind of timber. Only in the case of a few species, which are in particular demand, and which also happen to be rapid growing, are the prices sufficient as yet to cover the cost of growing. Under this heading may be included such species as the white pine, white ash, basswood and chestnut. On account of the serious dis-ease of the latter it can not at present be advised for growing. Other species, which are almost equally in demand, and which sell for nearly as much, can not be grown for their present sale prices because of their slow rate of growth. As examples of these may be mentioned the hemlock, cedar, birch and maple. The first of these can probably be dispensed with, because its place can well be taken by more rapid growing species; but such species as cedar, birch and maple, which have peculiar qualities of their own, must, if they are to be perpetuated, eventually demand higher prices than the more rapid growing species, in order to compensate the raisers for the greater length of time required. Otherwise, the introduction of some substitute will be essential. Between these two classes is a group of trees whose growth is such that under favorable circumstances they may be profitably raised, but which, under conditions prevailing in many remote sections, can not be grown at a profit. The spruce, balsam, red oak, hickory and poplar may be mentioned in this class.
As the prices for slow-growing timbers must be relatively higher than for rapid-growing species, if they are to persist, so the prices for trees yielding the better grades and wider boards of a species must be considerably higher than for small, poorly developed trees. For some time we have had grading rules formed by various lumber manufacturers' associations for the grading of manufactured lumber, the different grades selling for different prices. This has not generally affected the prices paid for round logs or standing timber. In some localities, where there is a growing competition between wood-working industries for particular kinds of timber, there have been developed, of late, local grading rules for round logs. By these rules, which are similar to those which obtain in European countries, highest prices per unit of volume are paid for large logs free from defects, and the lowest prices for small defective logs with several gradations between. While the prices paid for these
