.September 10. 1919 



HARDWOOD RECORD 



19 



Supply, Demand, Production, Transportation in South 



The principal factors in the hardwood situation throughout the 

 southern hardwood field at the moment are : Supply, demand, produc- 

 tion and transportation. These are so interwoven and so interdependent 

 that, because they cannot be properly treated separately, they are 

 herewitli presented in their relationship to one another. 



It is conceded by both manufacturers and distributers that there 

 is the greatest sliortage of dry hardwood lumber, without reference to 

 either species or grade, ever known in tlie history of the indus- 

 try at this time of the year, both intrinsically and relatively. This 

 view is confirmed by official sources that are in position to know whereof 

 they speak. It is admitted, however, that the point has about been 

 reached where the quantity of hardwood lumber being produced each 

 day is about equal to the daily shipments, with the result that the 

 tendency toward decrease in holdings has virtually been arrested. This 

 admission, however, is qualified, in every single instance, without 

 regard to its source, 'with the statement that, while stocks have ceased 

 to decrease, they are abnormally low and represent only a small per- 

 centage of average holdings for this time of the year. 



Demand from domestic sources is active enough to absorb all the 

 hardwood lumber that is available for delivery at the moment. Whole- 

 salers are credited with being the largest buyers. They are placing 

 orders freely and are increasing their holdings whenever and wherever 

 possible. Furniture interests are likewise taking lumber with consid- 

 erable freedom and rank next to wholesalers in the volume of their 

 purchases. Automobile manufacturers are in the market in a very sat- 

 isfactory manner. Agricultural implement makers are placing orders in 

 a rather large way and manufacturers of pianos and musical instru- 

 ments are good buyers. Manufacturers of flooring are finding their 

 business expanding at a very satisfactory rate, and they are, therefore, 

 increasing their purchases. Retail yards are good buyers and altogether 

 there is complaint of lack of business only from the railroads. The 

 latter are taking some stock, but they are not buying anything like 

 their normal requirements for the reason that very few cars are being 

 built and for the additional reason that maintenance and new building 

 are on a far smaller scale than is usual for this period. However, 

 even with the railroads largely out of the market, domestic demand is 

 extremely healtliy, and manufacturers and distributers are far more 

 concerned with the problem of supply than they are with that of finding 

 a market, at full prices, for what they are able to offer. 



Export demand, however, is not aggressive at the moment, and it is 

 admitted that there is comparatively little export business under way 

 in southern hardwoods. This condition, according to J. H. Townshend, 

 secretary-manager of the Southern Hardwood Traffic Asosciation and 

 president of the American Overseas Forwarding Company, is due 

 primarily to three factors: (1) Lack of dry stock in the sizes and 

 dimensions wanted; (2) presence of considerable quantities of con- 

 signed stock on the other side of the ocean; (3) unusually low exchange 

 rates which are imposing a'very severe penalty on foreign buyers of 

 hardwood lumber and other raw materials in the United States. There 

 is also considerable congestion at the docks at Liverpool and London, 

 as a result of inability to secure labor for prompt unloading of ships 

 and as a result of the shortage of transportation facilities for removing 

 cargoes after they have been transferred from the ships to the wharves. 

 But, whatever the cause, the fact remains that comparatively little ex- 

 port business is being put through and that the volume of exports is 

 strikingly small, as compared with expectations a short time ago. 



Production of hardwood lumber is expanding somewhat and would 

 expand much more rapidly if the railroads were able to fuj-nish cars 

 and motive power for prompt delivery of logs to the mills. There is 

 no shortage of logs. The quantity available for loading is not so 

 heavy as at this time last year. It is probably rather below the ever- 

 age for this particular season. But there has been marked progress 

 in getting out logs during the past few weeks and logs are now awaiting 

 transportation to the mills in volume. Logs are commanding high 

 prices and the high prices are resulting in increased activity on the 

 part of those who sell their timber in the open market. Those manu- 



facturing firms who control tlieir own timber supplies, too, are not 

 overlooking any opportunity of creating just as large surplus supplies 

 in the woods as they can safely create. But there is a big shortage of 

 flat cars and open top equipment for log loading. Taking the railroads 

 entering Memphis, it is estimated that there is a shortage of nearly 50 

 per cent in this class of equipment. This means that production is held 

 seriously in check at a time when the greatest incentive, in the way 

 of high prices, ever known exists. The Southern Hardwood Traffic 

 Association is handling the car shortage as vigorously as possible with 

 the regional directors of the United States Railroad Administration, 

 but it is frank to confess that results thus far secured have not been at 

 all satisfactory. Complaints were recently received by that organiza- 

 tion from shippers on the Missouri Pacific that they had no cars for 

 handling logs in or for loading outbound shipments of lumber and lum- 

 ber products. Within a recent period of four days this association 

 handled complaints of car shortage from eighty mills. The Yazoo & 

 Mississippi Valley line of the Illinois Central System appears to be 

 giving better service than any other railroad in this territory, so far 

 as the mUlmen are concerned. The Rock Island System ranks next. 

 Conditions are worse on the Frisco System than on any other road 

 entering Memphis. The Missouri Pacific System is furnishing very 

 few cars for log loading and the same is true of the Southern Railway, 

 the Louisville & Nashville and the Nashville, Chattanooga & St. Louis. 



The association also estimates that there is a shortage of 33 per cent 

 in box ears available for delivery of lumber and forest products to 

 destination. There are all sorts of movements of empties out of Mem- 

 phis. Nobody is able to find out where they are going or why. Secrecy 

 appears to be attending many of the operations of the U. S. Railroad 

 Administration and this applies with greater force to the movement of 

 empties than to any other phase of the situation. The fact remains, 

 however, tliat empties are being sent away from Memphis in volume 

 while shippers of practically every class are clamoring for cars to load, 

 and that shippers of hardwood lumber and forest products are having 

 their business materially curtailed, so far as deliveries are concerned. 

 This would not be so surprising if stocks were normal, and if the vol- 

 ume of business were up to the average for this time of the year. There 

 is such a shortage of stocks and of production, however, that lumber- 

 men often express wonder that such an acute car shortage should exist 

 at this time so far as their business is concerned. 



Railway officials are full of "advice" about loading and unloading 

 and about loading to capacity on the part of shippers, but they are 

 strangely silent about efficiency in moving both empty and loaded 

 cars after they are turned over to the railroads. The Southern Hard- 

 wood Traffic Association, in a statement issued here some days ago, 

 showed that one of the leading railway systems in this part of the 

 country is falling down 23 per cent in the matter of efficiency in the 

 handling of empties and loads whereas only 13 per cent delay can be 

 attributed directly to shippers. 



Car shortage is being more seriously talked today than even during 

 the war and lumber interests anticipate that, when the cotton crop be- 

 gins to move in volume, there will be even more serious troubles ahead 

 of the lumbermen from a transportation standpoint. Thus the situa- 

 tion promises to grow worse rather than to improve, and lumbermen 

 are doing everything in their power now, while there are a few cars 

 avaUable, to produce lumber as well as to send it on its way to desti- 

 nation. 



The ocean transportation situation appears to be vastly improved. 

 Rates are showing a declining tendency, so far as vessels operated by 

 regular transportation companies are concerned, as indicated by the 

 fact that rates on such vessels are coming closer to those charged 

 by the United States Shipping Board. In the meantime, it is announced 

 by the American Overseas Forwarding Company, with headquarters in 

 Memphis, that there will be an increase of twenty-nine sailings per 

 month between New Orleans and European ports, effective at once, 

 involving approximately sixty-five vessels, practically all of which 

 are of steel construction. 



