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for the training of foresters was opened in 1859.
But owing to a lack of pupils it had to be closed
from 1866 to 1874. Moreover, many mistakes were
made in practical matters, the most important being
that the foresters' districts were made so large that
no single man could adequately control them. A
period of discouragement and stagnation set in, but
the steady increase of the timber export led to
further attempts at scientific management, which
have been far more successful, and to-day the admin-
istration of the forests seems much more satisfac-
tory. The farmers know the value of their trees
and exact a good price for them, and, though small
proprietors are not and cannot be expected to be
versed on forestry, the larger companies spend
money in improving their forests by draining, thin-
ning out the trees and replanting. Even to-day,
however, there is reason to fear that in some of
the privately owned forests the trees are still cut
down with a recklessness, a disregard for the fu-
ture, that calls for severe condemnation. Thus the
export of props and pit-props has lately been un-
usually large and has involved in places a deplorable
destruction of young trees that brings with it no
commensurate gain. It is also worth pointing out,
in view of the great growth of the timber export,
that the dimensions of the trees that come to the



FINLAND'S WORLD-INDUSTRY 223

saw-mills are gradually diminishing. In 1889 an
average of 33.9 trees went to a standard of sawn
goods; in 1896 it reached 40, and although since
then it has fallen in some years, in 1911 it was
as high as 46. This does not, however, necessarily
mean that the forests are badly looked after, be-
cause as the tree grows fastest till it reaches a diam-
eter of, say, 7 or 8 inches, and then increases in
thickness very much more slowly, the best results
economically are obtained by cutting the trees be-
fore the period of slow growth sets in.

The forest land of Finland is divided into Crown
and private forests. The former have existed for
many centuries, since the State in early times
claimed for itself a right to all waste lands. In 1908
the Crown forests covered nearly 13 million hec-
tares, about a third of the total area of Finland,
over 11 million hectares being situated in the vast
province of Uleiborg. But only about 5% million
hectares are real forest land where the trees grow
thickly, most of the remaining 7% millions being
marshy land, where vegetation is comparatively thin.

The private forests amount to nearly 10 million
hectares of good forest land and nearly 2 million
hectares of marsh land.

The process by which the logs are got down from
the forests to the mills is one of great interest. As
soon as the snow falls in the autumn the felling of
the trees begins. The life of the woodcutters is any-
thing but an easy one. They leave their homes for
weeks at a time and settle in the forest so as to be
near their work. If possible they live with some



224 FINLAND AND THE FINNS

of the peasants, but it often happens, especially in
the thinly populated north, that they have to rig
up shelters for themselves. One even hears of men
sleeping out round a fire, turning first one side
towards the heat and then the other. They cut down
the trees, rough-hew them with axes, peel off the
bark, pile them on sledges and take them to the near-
est waterway, where they are stacked either on the
banks or on the frozen water. When the spring
comes they are floated to the sea. Down the rivers
it is for the most part easy work, for the stream
carries them slowly along, and the only difficulty is
that they sometimes get stuck in narrow or rocky
places, where the current is powerful or there are
rapids. Men are usually stationed at such spots to
disentangle the logs with long forks. It is a diffi-
cult and dangerous work and often leads to loss of
life. If a very serious stoppage occurs, recourse
must sometimes be had to explosives. When the
logs emerge from the rivers into the great lakes,
artificial traction is of course necessary. The logs
are collected in large numbers, and, by means of a
girdle of trees chained to each other, are formed
into huge rafts. Sometimes the girdle breaks, and
then a most terrible confusion arises, which it takes
days to set straight. The passage of these rafts is
necessarily a very slow one, and the men who are
in charge of them build a hut on board and settle
down comfortably for the summer. There is quite
a little harvest of songs expressive of the life of
the raftsmen. They are not very popular char-
acters in the country-side, however, having the rep-



FINLAND'S WORLD-INDUSTRY 225

utation of being extremely rough and quarrelsome.
The old method by which they got their raft to move
was very primitive. They rowed out as far as pos-
sible with an anchor attached to a line, dropped an-
chor, returned to the raft and wound up the line
on a capstan until the raft was pulled along as far
as the anchor, upon which the process was repeated
over and over again indefinitely. Nowadays tugs
do the work more and more. When the lakes issue
in rivers the raft is of course dissolved and the logs
are once more borne along by the current. In places
where the stream is used to supply power, canals
are constructed for the passage of the logs. Even
with the use of tugs on the lakes it often takes one
or two summers for the logs to make the entire voy-
age from the place where they are originally floated
to the saw-mills.

In 1910 the saw-mills numbered 531, not count-
ing a considerable number which worked only to
supply the needs of the owner or the commune.
Most of them are small, the number of saws which
turn out more than 10,000 cubic metres a year not
much exceeding 100, but these latter include some
very large mills. Most of the larger mills lie at or
near the mouths of the principal rivers, the Kym-
mene, the Kumo, the Vuoksi, and, in the far north,
the Kemi and the Torne. For this reason Kotka,
at the mouth of the Kymmene, and Bjorneborg, at
the mouth of the Kumo, have become important
places for the timber export. In East Finland, Vi-
borg holds a similar position, chiefly because it lies
close to the mouth of the Saima canal. Among the



226 FINLAND AND THE FINNS

persons and firms which own the large saw-mills
may be mentioned Ahlstrom & Co., Hackmann & Co.,
Rosenlew & Co., August Eklof, Gutzeit & Co., Sal-
vesen & Co., the Halla Company, the Finland Wood
Company, Ltd. The latter is a British firm, and the
three preceding it belong to Norwegians.

It is noteworthy that, in spite of Finland's wealth
in water power, almost as many mills are driven by
steam as by water. This is especially the case with
the larger mills, practically all those which turn out
more than 20,000 cubic metres per annum using
steam. The reason is that their position has been
determined by other considerations than the accessi-
bility of water power, and that such power is not
essential in saw-mills because sufficient fuel is ob-
tainable from the waste products of the mill.

The growth of the industry has been most rapid,
the average value having risen from 37 millions of
marks in 1886-90 to 143 millions in 1906-10. Of the
timber exported in 1911, 2,235,000 cubic metres was
unsawn, 277,000 cubic metres partially sawn and
3,120,000 cubic metres sawn and partially worked up.
Of the unsawn timber the greater quantity consisted
of props or pit-props, while of that worked up,
1,478,000 cubic metres consisted of boards, 857,000
cubic metres of battens and 403,000 cubic metres of
planks.

The raw-material of the saw-mills is derived from
the fir and pine forests. There is, however, an im-
portant industry which utilizes the birch, namely the
bobbin industry. The conditions for carrying it on
profitably do not exist in many countries. A very



FINLAND'S WORLD-INDUSTRY 227

large amount of wood is required, as there is a
wastage of over 90 per cent. Consequently it is
only profitable to make bobbins in a large town or
near mills worked by steam, where the waste can
be consumed as fuel. Moreover, there are transport
difficulties that do not exist in the case of the saw-
mills. For birch logs cannot be floated down like fir
and pine logs, but must be piled on barges and
brought down by tugs. Consequently such facilities
as Finland offers for water transport are of the
utmost value, and the bobbin industry flourishes ac-
cordingly. There are now thirteen factories, in-
cluding six large ones, two of which belong to the
Tornator Company, two to the Kaukas Company,
while two more at Kuopio were bought in 1912 by
Messrs. Coats, of Paisley.

Great as are Finland's natural advantages as re-
gards saw-mills, they are still greater as regards
paper-mills. The water power, which is often dis-
pensed with in the former, is of the very highest
importance for the latter. While paper-mill own-
ers have the greater need for water power, they also,
by reason of the different conditions of transport,
have a greater liberty to place their mills where
they can get it. In 1910 the mills were using 77,200
effective horse-power, and since then the amount has
been increased. Three-quarters of it was used in the
pulp factories, most of the rest in the paper fac-
tories, about 3,000 horse-power going to the cellu-
lose factories. Electrical power is also used and its
employment will certainly increase. In 1910 there
were 110 electric generators in use.



rs FINLAND AND THE FINNS

Most of the Finnish paper-mills are named after
the rapids by which they are situated and from
which they derive their power, and end in -koski,
the Finnish for waterfall. The largest firm is the
Kymmene Company, with a capital of 14% millions
of marks. It consists of three factories lying close
to each other on the Kymmene Eiver. The Tor-
nator Company is the second largest. Among other
important firms are Valkiakoski in South Tavast-
land and Leppakoski in East Finland.

The growth of the paper industry has been ex-
tremely rapid, as the following figures as to the
value of the output show :

1885 ... ... ... ... 9 millions of marks

1895 , 16 " "

1905 41 " "

1912 93 " "

As the paper industry exists principally for pur-
poses of export, it is interesting to note certain
changes in respect of the countries which take the
production. Cellulose up to 1904 went almost ex-
clusively to Russia, but in 1911 Russia took only
about one-fourteenth of the total export. Ground
wood pulp also used to go almost entirely to Russia,
but in 1911 Russia took little more than a quarter
of the export. All along, Russia has taken most of
the paper export, but the amount sent to other coun-
tries has increased from 3.2 per cent in 1909 to 21.8
per cent in 1911. After Russia, Great Britain is
the best market for Finnish paper goods, and in
1911 imported 87,500 tons of ground wood pulp, eel-



FINLAND'S WORLD-INDUSTRY 229

lulose, paste-board and paper. Nearly 20,000 tons
consisted of paper, three-quarters of it being brown
paper.

The extraordinary development of the paper in-
dustry is having an important effect on the saw-
mill owners. Saw-mills pay less and less, especially
in cases where the owners have no land of their
own from which to draw their supply of timber.
For, owing to the successful development of paper
manufacturing, the value of forest land is rising
rapidly. Both paper- and saw-mill owners find it
impossible to get their raw material on the old easy
terms, when farmers would give them ten-year con-
tracts for felling the timber on their land. The
farmers realize the state of the market and will only
contract for two or three years at a time. Conse-
quently the mill-owners are tumbling over each other
in their eagerness to buy up forests while the price
is still low compared to what it will undoubtedly be
one or two decades hence. But even now the price
is usually too high to make saw-mills a profitable
undertaking except for those who already own their
land, and there is little room for doubt that a silent
revolution will take place, and that, wherever pos-
sible, saw-mill owners will turn their energies to
paper making. There is far more money to be made
in this way. A standard of sawn goods brings in
some 7 or 8, while the same quantity of wood
turned into rough paper brings in from 30 to 50.
Moreover, recent experience shows that the export
of the more expensive products of the industry is
increasing at a far greater rate than that of the



230 FINLAND AND THE FINNS

coarser products another strong reason for be-
lieving that the future belongs to the paper-mill. It
is, however, impossible for paper-mills to replace
saw-mills all over the country, for the simple rea-
son that it is only the fir that can be used in mak-
ing paper, pine-wood being unsuited to the purpose.
But it has been estimated that if all the white wood
now exported as raw material for paper making in
other countries and as planks, battens and boards
were converted into paper, the paper export could
be increased fourfold or fivefold without cutting
down any more trees than is done at present.

In spite of the very advantageous conditions in
Finland, many paper-mills are not doing well. The
reason is that they started on wrong lines and find
it difficult to recover. The chemical process by
which paper is made out of wood was only invented
some thirty years ago, and the early paper-mills
were largely experimental. They had to feel their
way and made many mistakes. The mills had to be
rebuilt, the installations were wrong, too many dif-
ferent kinds of goods were made in the same mill,
and so on. Now, however, those who start paper-
mills have the benefit of past experience to guide
them. They know what to do, and their only need
is the capital with which to do it.



A



CHAPTER XIII

OTHER INDUSTRIES

"FINNISH WEEK" which was held in the
autumn of 1913 showed that a very large num-
ber of goods of different kinds are produced in Fin-
land. But while Finnish timber and paper are mak-
ing their way to all parts of the globe, most of the
other industries work mainly for the home market,
and do not seem capable at present of very much
development.

An exception to this remark is the stone indus-
try. This is, like timber and paper, a natural indus-
try for Finland, which is particularly rich in stone.
The soil rests on a foundation of granite, and this
has to a large extent come to the surface and con-
stitutes a considerable portion of the area of Fin-
land. It is the most important of the varieties of
stone found in the country. There is an annual ex-
port worth from 100,000 to 200,000 marks to Aber-
deen, but by far the greatest export is to Eussia.
This is only natural, as Eussia is so near to Fin-
land and is herself poor in stone. The "rapakivi"
granite from the east of Finland has been much

231



232 FINLAND AND THE FINNS

used in St. Isaac's and the Kazan Cathedral at
Petersburg, while the red granite from south-west
Finland is used for the monuments of Alexander II
at Moscow and of Alexander III at Moscow and
Petersburg. The export to Russia ought to increase
considerably with the growth of Eussian towns. The
chief thing that hampers the development of the
industry is the difficulty and expense of transport.

While Finland's wealth in timber and granite and
water power has long been realized, it is still an
open question whether or not she contains mineral
wealth. From the oldest times iron has been worked
in Finland, and one of the leading personages in the
"Kalevala" is Ilmarinen, the smith. Yet the coun-
try seems poor in iron, and the iron worked was
obtained not from mines, but from the beds of lakes
and bogs. Several attempts to discover iron mines
really worth working have been made from the sev-
enteenth century up to to-day, but without suc-
cess. Under the circumstances the manufacture of
iron goods is not likely to take place on a great scale,
more especially since considerable orders that used
to come from the Eussian State have, since 1906,
been cancelled, owing to political reasons. Never-
theless, iron is an important industry in Finland,
employing over 10,000 persons, and the modern me-
chanical workshops are excellently managed.

In the eighteen-seventies gold was discovered in
the north of Finland, in the bed of the Ivalojoki,
which flows into the Arctic Ocean. Gold-washing
has since then regularly taken place, but the results
have been inconsiderable. Altogether, people had



OTHER INDUSTRIES 233

better receive with caution reports of wealthy gold
mines in Finland.

The prospects with regard to copper seem more
hopeful. It is possible that an old mine at Orijarvi,
which has lately been reopened with modern plant,
may yield good returns, though the present manage-
ment of it has not succeeded in winning the confi-
dence of the Finns. Moreover, at Outokumpu, in
the province of Kuopio, some rich veins of copper
have been discovered.

Another industry that deserves special notice is
the manufacture of textiles. For this Finland pos-
sesses no natural advantages, but she has achieved
considerable results, especially in the last twenty
years, during which the value of the production has
risen from about 20 to about 70 millions of marks.
The chief seat of the industry is Tammerfors, ad-
vantageously situated between two lakes and en-
joying the title of Finland's Manchester. From
1856 to 1906 Tammerfors enjoyed important privi-
leges, by which its manufacturers were allowed to
import their raw material duty-free, even if it had
been partly improved. The largest factory is that
of Finlayson & Co., named after the Scotchman who
founded it in 1820. There are important factories
also at Forssa, Vasa, Abo and Bjorneborg. The
annual import of textiles is worth about 25 millions
of marks, of which Germany sends ten millions, Rus-
sia seven, and Great Britain five. The export is not
a large one and goes almost entirely to Russia.

A fair quantity of linen goods is exported to Rus-
sia, though limited to 50,000 poods, or 820 tons, a



234 FINLAND AND THE FINNS

year, which is allowed to enter under the preferen-
tial duty agreement. The same quantity of cotton
goods is also allowed under the same preferential
duty agreement, and is consequently exported to
Russia annually.

Finally, mention must be made of the dairy in-
dustry, which has of recent decades become impor-
tant, over 200,000 casks of butter of 1 cwt. each
being exported annually. By far the greatest
amount is sent to the United Kingdom. Cheese is
also made, most of it going to Petersburg.

The general growth of Finnish industries may be
seen from the following figures :

The imports per inhabitant were worth 23 marks in 1856

" 141 1911

The exports per inhabitant were worth 8 1856

" " " 101 1911

Thq number of industrial workers rose from 36,700 in 1885
to 102,900 in 1911.

Finnish industries are highly protected and are
likely to remain so. Even on paper the duty is a
very heavy one, and it is infinitely cheaper to buy
most sorts of paper in Great Britain than in Fin-
land, as the manufacturers here take advantage of
the tariff to keep their prices high.

The only large tariff question affecting the coun-
try to-day is whether or not Russia will abolish the
tariff wall separating her from Finland. Many pol-
iticians in Russia are desirous of doing so, as being
part of their policy of russianizing Finland. Rus-
sian manufacturers, on the other hand, are strongly
against it and have protested against the scheme



OTHER INDUSTRIES 235

both individually and through their Chambers of
Commerce. They believe that they stand to lose
heavily by it, as while there is a substantial duty
on Finnish goods going into Russia, practically all
Russian goods coming into Finland are free of duty.
Hitherto, the manufacturers ' protests have been suc-
cessful, but it is by no means impossible that the pol-
iticians will gain the day. The effect on Finland
of the removal of the tariff wall would vary in the
different industries. Thus, the textiles would suffer,
because in Finland there is now no duty on raw
cotton and in Russia there is a heavy one. More-
over, the cotton industry is highly developed in Rus-
sia. Paper, on the other hand, would probably bene-
fit considerably, as the Russian market would be
open to it duty-free, while at present the duty on
Finnish paper is very heavy. Indeed, the probable
effect of the change would be the shutting up of the
Russian paper-mills. Taking it on the whole, it is
unlikely that the removal of the tariff wall would
hurt Finnish trade, seeing that the huge Russian
market would be opened to Finland. As business
men there is no reason to think that the Finns are
inferior to Russians, and the Finnish working men,
even if they should prove less clever and quick than
the best Russians, are on the whole steadier, more
orderly, and more sober. Moreover, in Russia reg-
ular work is constantly being interfered with by
Saints' days and other holidays, while in Finland
work proceeds with the regularity usual in other
European countries.
The great need of Finnish industry at the present



236 FINLAND AND THE FINNS

moment is more capital with which to exploit the
natural resources of the country. Seeing that the
rate of interest is high, there is an excellent open-
ing for the judicious investor. The banks allow 5
per cent on a deposit standing account, 3 per cent
on a current account, while the dividends obtainable
from many other investments considerably exceed 5
per cent. Curiously enough, so far Britishers and
Norwegians seem to be the only foreigners who have
invested money in Finnish industrial enterprises,
and they partly control the business by having one
or two men on the board of directors where the busi-
ness is not entirely managed by them.

Finland also offers a very fair market for the
British manufacturer, who, however, has been some-
what slow to realize its possibilities. At present
most of the foreign trade is with German firms,
which show most praiseworthy energy and send over
large numbers of agents and commercial travellers.
Nevertheless British goods are much preferred to
German, and in many of the shops German goods
are passed off as British for this reason. What
handicaps British articles is usually the higher
price. But this is sometimes a purely artificial dif-
ficulty, as British goods are often exported to Ger-
many and then re-exported to Finland instead of
being sent direct from England. The present time
is a favourable one for an effort on the part of
British firms to establish a direct connection with
Finland. For there is now a strong wave of inter-
est in everything English. The language is being
studied more than ever before in the schools and at



OTHER INDUSTRIES 237

the University. Finns travel in England and send
their daughters to be " finished " there, English
books are read, English fashions are copied, Eng-
lish games are played. A commercial rapproche-
ment is the natural concomitant of all this, and
young Finnish business men are beginning to study
English rather than German, so that the language
difficulty is likely to grow steadily less. British
firms, however, are slow to take their chance. They
should send energetic representatives who speak
German or Swedish and who will cultivate personal
relations with Finnish business men. One would like
to see a stores established in Helsingfors in which
all the goods were guaranteed of British make.
There might be an opening for such a stores in
other places also, for Finland is a country with an
industrial and commercial future and the towns are
growing rapidly.

It may be pointed out that the bankruptcy laws
in Finland protect foreign firms, which consequently
do not have to fear the dangers that beset them in
Russia.

Partly because industry itself is on a small scale
and of recent growth, industrial legislation is still
at a rather elementary stage. Although the making
of matches out of white phosphorous was prohibited
as early as 1865, it was not until 1889 that a more
comprehensive factory law was passed, which is still
in operation. This aimed chiefly at safeguarding
children. No child under twelve years of age could
be employed in a factory at all, and night-work was
forbidden for persons under eighteen.



238 FINLAND AND THE FINNS

The maximum number of working hours for chil-
dren under the age of fifteen is six and a half, that
for persons between fifteen and eighteen is twelve.


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