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Cot>yright, The Hardwood Company. 1919 



Published in the Interest of the American Hardwood Forests, the Products thereof, and Logging, Saw 

 Mill and Woodworking Machinery, on the 10th and 2Sth of each Month, by 



THE HARDWOOD COMPANY 



Edgar H. Defebaugh, President 

 Edwin W. Meeker, Managing Editor 

 Hu Maxwell, Technical Editor 



Seventh Floor Ellsworth Building 

 537 So. Dearborn St., CHICAGO 

 Telephones: Harrison 8086-8087 



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Vol. XLVII 



CHICAGO, MAY 25, 1919 



No. 3 



Review and Outlook 



General Market Conditions 



THE GENERAL MARKET SITUATION has uot cliauged ma- 

 terially (luring the past two weeks except for the better. 

 Seemingly the buying trade has been fairly well convinced that it 

 is useless to wait reduced prices. The sincere advice of everyone 

 who is posted on actual stock and shipping conditions in the hard- 

 wood manufacturing fields, is that buyers are spiting themselves 

 in waiting and if they wish to avoid not only higher prices but 

 actual difticulty in getting what they need, they must place their 

 orders soon. 



Some buyers exhibited considerable wisdom by placing contracts 

 for future shipments a month or two ago. That these buyers were 

 wiser than the lumbermen from whom they bought is evidenced 

 by the chagrin shown by a number of these lumbermen over the 

 fact that on some of the items they could now realize anywhere 

 from one to three or four dollars more than the price for which 

 they have contracted to sell it. The conclusion is obvious and 

 absolutely unavoidable, namely, that while hardwood stocks are 

 exceedingly good property now, the}- will be far better property 

 during the ne.xt month or six weeks and will command jirices 

 accordingly. 



Every element is combining to this end and the situation is being 

 recognized by state and government agents who have been investi- 

 gating price conditions. Taking Illinois as au example, the state 

 spent a good many thousands of dollars for a thorough investiga- 

 tion of building materials in general and reached several very in- 

 teresting conclusions among which was one exonerating lumber- 

 men from any charge of profiteering, and another a recommenda- 

 tion that buyers could not expect price reductions, and therefore 

 were not justified in holding up construction any further. 



As a matter of fact the situation has worked round to a point 

 where anyone wishing to build is anxious to get started as soon 

 as possible so as to avoid having to pay more for his structure. 

 A few weeks ago many builders were convinced that by waiting a 

 short time they would be able to buy at lower prices, but the 

 whole economic situation is against any such expectation materializ- 

 iug. One need go no further than the consideration of labor cost 

 to arrive at a fair conclusion on this point. Labor is still going 

 up and promises to continue going up. Labor constitutes about 

 sixty per cent of the cost of most raw material. Therefore, where 

 is there any possible chance of raw materials going down? 



It is interesting to note the tendency of the new Congress to 

 bear down on luxury taxes and there appears to be hope that the 

 policy on which the Congress is starting will work round to a point 



where o'.her taxes will be lessened. Congress is showing evidence 

 of a desire to bring as much monej' into the Federal treasury as 

 possible through means of import tariffs, and it is reasonable to 

 suppose that if this is done it will be just good policy to 

 relieve the strain of direct taxation by as much as is realized 

 through import taxes, otherwise and politically known as "tariffs." 

 It is hardly necessary to say that the average business man would 

 much prefer to see his taxes distributed over imports than coming 

 out of his business profits to the exorbitant extent now exacted. 

 If there is any rea.souable hope that the present excessive tax on 

 business may be ameliorated in a way, business will show a satisfy- 

 ing reaction whereas as the matter now stands many business and in- 

 dustrial transactions are definiteh' postponed because of the grasp- 

 ing eft'ect of the excess profit tax which has a peculiar way of 

 insinuating itself into many business enterprises where realization 

 on sales of business and property is not in any way designed as a jirofit 

 making proposition. 



An instance is related of a proposal received by a large clothing 

 establishment a short time ago for the sale of its business at an 

 exceedingly large figure. The owner absolutely declined to con- 

 sider any such transaction as had he done so the tax under the 

 excess profit law would have taken away so much of his return 

 that in reality he would have sold his business for about one-third 

 of its A-alue. Thus the law tends to hold up business of this 

 character and to menace development in many ways. Any legisla- 

 tion looking toward relief from this condition without jeopardizing 

 the national revenue will be an excellent thing for business and 

 the countrj' at large. 



It is really needless to review the conditions in the many hard- 

 wood consuming fields as anyone interested is so thoroughly 

 familiar with the increasing activity that further description of 

 the consistent improvement in all lines is hardly necessary. The 

 main point noticeable during the past few weeks is a still further 

 strengthening of building developments, which bring it nearer and 

 nearer to a stable and normal level based on the straight question 

 of supply and demand. 



Prediction in Practical Drykilning 



MIGHT NOT LARGE SAWMILLS carry the kiln-drying of 

 lumber farther than they do, and profit by so doing? Lumber 

 is now passed through kilns to make it shipping dry, for the pur- 

 pose, principally, of lessening its weight and reducing freight 

 charges on shipments. The process when carried out by the 

 shipper seldom aims to make the lumber dry enough for shop use. 



