20 



HARDWOOD RECORD 



years' developments in the lumber trade, giving market conditions 

 prevailing at different periods. The bulletin itself undoubtedly •will 

 be of interest and value in a comparative way, and if the Service 

 had not decided to make an announcement of the pending publication 

 of this bulletin, things would have been all right. But coming from 

 that source, under date of November 25, is a detailed notice contain- 

 ing excerpts from the bulletin but printing them in such a way that 

 the public is given to believe the conditions as quoted apply to pres- 

 ent markets. There is absolutely nothing to correct or to prevent 

 such a false impression. The notice has been sent out to the 

 Associated Press and has already been printed pretty widely. 



The bulletin says that production has outrun consumption until a 

 condition of over-supply has been reached which has prevailed for 

 four yeais. It further says that there exists an excess capacity of 

 production amounting in some of the timber states to one hundred 

 per cent; and further goes on to tell of the increase of substitutes for 

 wood, stating that they have brought the demand for lumber almost 

 to a standstill and promise to still further decrease demand in the 

 future. The writer of this particular passage says that prices for 

 middle and low-grade lumber have been practically at a standstill 

 since 1907 and cannot advance to any extent without opening the 

 door still wider to substitutes. It is certainly to be regretted that 

 this sentence alone was published, covering conditions of several 

 years ago. 



It is to be hoped that the bulletin itself from which can be gleaned 

 information which will correct false impression created by the an- 

 nouncement, will be given as wide publicity as the announcement 

 and that the service will do its part toward correcting the evil that 

 may have resulted. 



Taft Pleads for Export Trade 



President Taft in a notable message to Congress on December 3 

 clearly established his position regarding the development of this 

 country in its industrial relations with foreign nations. Some of Mr. 

 Taft 's mwst marked achievements have been along the lines of estab- 

 lishing relations with foreign countries, which will result in an un- 

 checked growth of this nation 's export business. The successful cul- 

 mination of his efforts in this line will undoubtedly be more fully 

 appreciated in after years and will certainly stand out as one of the 

 most notable achievements of any of the presidents. The President's 

 message in discussing many questions lays particular stress upon the 

 wisdom of the policy which has gained the title of "dollar di- 

 plomacy." Our distinguished President has advocated the possi- 

 bility of consummating amicable relations between civilized nations 

 by means of establishing firm commercial relations rather than through 

 the medium of bullets. 



Under the present administration marked steps in advance have 

 been taken in view of establishing more firmly American footing in 

 foreign commerce, but the message urges the necessity of presenting 

 a solid front in all questions involving the expansion of business, 

 contending tliat otherwise many markets will be usurped by foreign 

 commercial interests which naturally belong to the American trade. 



One of the features of the administration tending to place our 

 foreign commerce on a higher standard has been the raising of the 

 standard of the foreign corps. By putting this branch of the govern- 

 ment entirely under the merit system the highest character of eflB- 

 ciency and development in foreign commerce has been effected. 



The plea contained in the message, which undoubtedly will meet 

 with the unbiased approval of every true citizen, is the appeal to 

 Congress to raise the great foreign policy above the mere question of 

 partisanship. This is involved in his plea to stand firmly tfigether 

 in all commercial relations with foreign powers. If this ideal con- 

 dition can be accomplished, and if the government and commercial 

 business interests through the medium of the newly-organized Cham- 

 ber of Commerce of the United States can work together, the possi- 

 bility of future development in our now already important foreign 

 relations is unlimited. 



It is sincerely to be hoped that this policy will receive due con- 

 sideration from the coming administration, and that the principles 

 involved will be carried out to the interest of the country at large. 



Excessive Prices and Poor Business 



Lumbermen's a:ttention has been called continually to the folly of 

 attempting to maintain an excessively' high level of prices on hard- 

 woods. Experience has always proven that when such stock attains 

 value very materially greater than the market has been used to paying 

 for it without such rise being so gradual as to be scarcely perceptible, 

 a reaction will result. This is due to the fact that buyers are either 

 unwilling to buy any lumber on this basis and content themselves with 

 playing a waiting game and not making any purchases, or else they 

 seek out some substitute. It is a matter of history that the dull 

 condition in the poplar market which prevailed for some little time 

 recently was directly due to high prices on high-grade material. It 

 is a further matter of common knowledge that the unusual prices 

 which quartered oak was bringing three or four years ago resulted in 

 buyers giving up the purchase of this material for the time being. In 

 fact, the difference between the cost of quartered oak and mahogany 

 at the time of greatest value for the former wood was so small as to 

 turn the buyer's attention to mahogany. Mahogany on the other 

 hand now seems to be following the same course as quartered oak. 

 It is scarce and high, and with a knowledge of this fact comes the 

 generally increased firmness in the quartered oak market. 



The latest example, however, of the buyer 's willingness to sub- 

 stitute when prices are in his judgment excessive is seen in a report 

 of the German market emanating from a Hamburg firm of repute. 

 This company makes the statement that Cottonwood has reached such 

 a high level of price that its use is actually prevented to a large 

 extent. It further asserts that the local and cheap African woods 

 can be purchased to much better advantage to the buyer. This con- 

 dition, of course, is due in a large measure to the excessive rates on 

 ocean freightage, but another contributing factor undoubtedly is the 

 high prices asked by exporters and shippers generally for this stock. 

 The loss of a foreign market for an}' particular item of lumber is 

 more serious than is a shijiping market in this country. This is 

 naturally so because of the fact that the buyer and seller are more 

 intimately acquainted here than are the exporter and foreign importer. 

 The source of supply ind the market being in much closer proximity, 

 of course, than in foreign trade makes the matter of adjustment of 

 various shifting conditions much more propitious in this country than 

 in the export trade. It is to be hoped that this condition as suggested 

 by the German market for Cottonwood will not make itself manifest 

 in the sales of other woods. 



Reimbursed for Damages from Car Shortage 



As reported by a correspondent the coal industry has achieved a 

 notable victory in a suit instituted in Kentucky by a local coal mine 

 against the Illinois Central Kailroad for damages on account of the 

 failure of this road to supply sufficient cars to take care of the com- 

 pany's shipments. The reasonableness of damage claims on this 

 account has been advocated by shippers for some time, but in few 

 instances has the possibility of winning a decision seemed evident. 

 .\s a result shippers have been pretty generally discouraged from 

 making any attempt to recover damages. 



The point on which the case was contended was that while the road 

 had adequate facilities to move coal shipments during normal periods, 

 excessive shipments in the late fall and winter were entirely too great 

 for the rolling stock. Attorneys for the defendant maintain that the 

 question should be considered on the basis of the liormal demand for 

 cars, but the court ruled that inasmuch as the great demand for cars 

 during the fall and winter period is regular and is to be expected 

 every year b.y the roads, they must necessarily govern their supply of 

 rolling stock according to the demand at tliat time. 



The question came down to one of public interest, namely, that 

 while the roads can carry on business and show a profit without carry- 

 ing coal, it is absolutely impossible for the coal companies to continue 

 in existence, and it further would work a decided hardship on con- 

 sumers both industrial and private if the coal mines did not have 

 suitable transportation facilities. 



While the situation in the lumber business is not exactly analogous, 

 the lumber trade would undoubtedly have a case if it protested against 



