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X^ Meeting of Chicago Association 





Editor's Note 



Tbe lumber trade Is not so much concerned with the present condition o£ business, for present activity is too 

 appnrent to leave •room for doubt. On the other hand, however, lumbermen seem to be seel^ing inforuKitlon as 

 to the future trend of the lumber business, both in the immediate future and during the next few years. The 



following article contains an unusually able speech 

 authoritative and complete manner. 



by J. E. lUiodes, in which the question is analyzed in an 



The monthly meeting of the Lumbermen's Association of Chi- 

 cago, held at the Hotel La Salle on Tuesday, February 25, was 

 productive of unusually profitable information and discussions. 

 The meeting was preceded by the usual pleasing luncheon. 



Immediately following the gastronomic feats, the newly-elected 

 president, Murdock MacLeod, opened the business session, out- 

 lining in a general way the plans having to do with the regular 

 meetings of the association for the coming year. With the excep- 

 tion of the summer months, the year will be marked by a meeting 

 every thirty days in conjunction with a luncheon or supper. 



Mr. MacLeod suggested that there are a multitude of subjects 

 which can be profitably brought up at such sessions, and that it 

 is his aim at future meetings to have a discussion of market con- 

 ditions and general business conditions having a bearing on the 

 lumber business. 



President MacLeod then introduced J. E. Rhodes, secretary of the 

 National Lumber Manufacturers' Association. 



Mr. Rhodes first said that Chicago is recognized as the largest 

 lumber market in the world, and further that he fully appreciates 

 the conditions Tvliich have made possible the transferral of his 

 personal interests to Chicago. He outlined the purposes and 

 personnel of the National association, showing that it is designed 

 only for the consideration and treatment of problems of national 

 interest, and that it does not consider in its scope. the consideration 

 of the smaller questi'ons and details of the various branches of the 

 lumber business. He told of the varied and extensive interests 

 making up the membership of the-National association as embodied 

 in the various allied associations belonging to it. 



Mr. Rhodes referred to the maintenance of a credit rating depart- 

 ment by the association as one of its most important features, 

 and said that in the near future the Blue Book, published by the 

 National Manufacturers' Credit Corporation, a subsidiary to the 

 National Lumber Manufacturers' Association, will open a branch 

 office in Chicago. 



Referring to the long anticipated forest products exposition, 

 the speaker said that it has been decided that the possibility of 

 the early inauguration of a general lumber advertising campaign 

 is precluded b.y tlie lack of available funds, but stated further that 

 in place of inaugurating such a campaign, active steps are being 

 taken to put into concrete shape plans for the proposed lumber 

 products exposition. He said that the first exhibition will be 

 made in Chicago next fall. 



Referring to the scope of the National association's efforts, Mr. 

 Rhodes said that his organization is lending every aid possible to 

 the general move fur the jiurpose of removing the national tariff 

 question from politics, and in favor of creating a permanent tariff 

 commission to adjust tariff questions and rates in a logical and 

 businesslike manner, independently of political conditions. 



Another national question to which the association is lending 

 its strong support is monetary reform; the revision of the present 

 Sherman anti-trust law is also being advocated. The speaker said 

 that if these three questions can be carried to a conclusion in 

 keeping with the desires of the important business element of the 

 country, the possibility of financial panics will be eliminated, and 

 the only hard times will come from crop failures, wars and similar 

 national catastrophes beyond the control of mankind. 



The speaker then proceeded to a discussion of general market 

 conditions. He said that with a membership of 1,400 large saw- 

 mills cutting 13,000,000 feet of lumber annually, there can be no 

 room for doubt as to the absolute groundlessness of the suggestion 

 that there is a lumber trust maintained by large lumber operators, 

 who are members of the association. He furtlu^r said that the 



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government's census report shows that there are 36,000 large mills 

 operating in the United States, which cut a total in 1910 of 36,- 

 000,000,000 feet of lumber. The idea of such a multitude of indi- 

 vidual concerns being controlled by any concentrated interest is 

 too absurd to be worthy of consideration. 



In speaking of Pacific coast conditions, Mr. Rhodes said that this 

 section of the lumber industry suffered heavily following the 

 panic of 1907. Its products were sold below cost in many cases, 

 and a multitude of firms failed. Business there has attained a 

 satisfactory status only within the last six months. According 

 to the speaker there is every reason for believing that this condi- 

 tion will be maintained for at least six months to come. The hard 

 winter in the logging districts of Washington affected a very 

 decided shortage in fir logs, and in consequence of this, in addi- 

 tion to the healthy demand, prices have been steadily advancing 

 for some time. 



The speaker 's analysis of the effect of the Panama Canal on the 

 general lumber business was particularly able. He maintained that 

 no direct effect will be felt for at least five years, arguing that in 

 order to ship lumber through the canal from the Pacific coast 

 points to the eastern markets it is absolutely essential that boats 

 carrying as large a load as 5,000,000 feet, and capable of being 

 loaded and unloaded in two days be built. The present boats being 

 used are generally speaking much smaller than this, and prac- 

 tically without exception require as much as three weeks for 

 loading and unloading. It would hence be manifestly necessary 

 to have return cargo in order to operate these craft at a profit. 



Under present conditions there is no cargo that could be taken 

 liack with the exception of coal, and inasmuch as the Pacific coast 

 sections are producing considerable quantities of coal, any effort 

 to ship these would hardly be successful. Another serious draw- 

 back would be inadequate wharfage to receive large shipments of 

 Pacific coast stuff at eastern ports. 



Mr. Rhodes qualified his remarks with the statement that what 

 he had said applied to Pacific coast lumber, but that Pacific coast 

 timber would, as in the past, be extensively used in eastern points. 

 Mr. Rhodes said there is anticipated on the coast an advance on 

 stumpage within the next year, which would result in a decided 

 advance in Pacific coast lumber products. Any increase on these 

 liroducts would result in proportionate increases on all lumber 

 products. 



The speaker next analyzed conditions in the yellow pine field, 

 stating that the apex of yellow pine production was reached in 

 1909, when the yellow pine cut was more than one-half of the total 

 cut of the country. Conditions in yellow pine have a direct effect 

 on conditions of all classes of lumber marketing. He said that 

 in addition to the naturally forced reduced cut, the marvelous 

 development of the South calls for an increasing amount of lumber 

 for local consumption. He made the interesting observation that 

 the state of Texas now consumes more lumber than it produces. 



In analyzing the yellow pine values, the speaker said that the 

 average price of yellow pine at the mills is at present from $17.50 

 to .$19.50, and that it is anticipated there will be a rise in values 

 from, one to two dollars in the not far distant future. 



Mr. Rhodes said that in 1911 twenty-eight yellow pine mills 

 began operating, and that they cut during that year 156,000,000 

 feet of lumber, but he said that during the same period, ninety- 

 seven yellow pine mills cut out their timber entirely, which mills 

 had manufactured during that year 500,000,000 feet. Two hundred 

 and fift}' large yellow pine mills cut seven per cent more in 1912 

 than in 1911, but they shipped ten per cent more. 



In speaking of northern pine, the speaker said fhat in 1011 the 



