i''jm^m^mmmm^M3mmm3^mm!Mi)^^^^ 



flfflwolRocoM 



Copyright, The Habdwood Company, 1918 



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

 Mill and Woodworking Machinery, on the 10th iind 25th of each Month, by 



THE HARDWOOD COMPANY 



Edgar H. Defebaugh, President 

 Edwin W. Meeker, Managing Editor 

 Hu Maxwell. Technical Editor- 



Entire Seventh Floor Ellsworth Building 

 537 So. Dearborn Street, CHICAGO 

 Telephones: Harrison 8086-8087-8088 



Vol. XLII 



CHICAGO, OCTOBER 25, 1916 



No. 1 



'\ TO!>5gaTOi»STOit?^ ^'Jt^'.'il^^^ti^^ 



Review and Outlook 



General Market Conditions 



THE BIG QUESTION in the minds of both sellers and buyers of 

 hardwood lumber today is the probable development of the ear 

 shortage. It is a disputed question whether or not the present situa- 

 tion win become even more severe. The shortage, which had not de- 

 veloped to a really acute point in the North up to a few weeks ago, 

 has assumed proportions there almost as serious as in the South. In 

 some parts of the southern territory there has been an absolute neces- 

 sity for closing down sawmOling operations on account of the impos- 

 sibility of getting logs. In shipping out it is doubtful if there are 

 more than forty per cent of the needed number of cars available. 



At the same time manufacturers in the two sections are having 

 continued trouble on the labor question — the northern operators pri- 

 marily, because there is so much work in adjacent industries, and the 

 southern millmen because there has been a pronounced exodus of negro 

 help from southern states. This situation alone would not assume 

 especially significant proportions, but as it comes at a time when the 

 mills had generally established a poUcy of reduced cut, the impossi- 

 bility of manufacturing the quantities of lumber desired is becoming 

 a more and more serious condition both with the producers and with 

 those who buy. 



There is not much new to be said about the market situation, that 

 is, the degree of receptiveness of the buyers. It is not possible to de- 

 termine definitely whether the continued tendency of values to 

 strengthen is due more to increased call or to lessened supply. Of course 

 each condition is having its effect on the values and prospects of 

 values of hardwood items. As to the actual demand, it seems that it 

 has not progressed so much in the last two or three weeks as it did 

 prior to then. Not that it has shown any tendency to break, but 

 with the imminent approach of election, the natural feeling of caution 

 is making itself felt. However, the total absence of anything that 

 would indicate a general slackening due to this cause is a fair indica- 

 tion of the probable outcome of the voting next month. Many sug- 

 gest that the situation has not shown so encouraging an advance re- 

 cently as it did. This statement should be qualified as it is certainly 

 a fact that the average factory is handling about all it can and that 

 the average consumption is being consistently maintained. 



The tendency to proceed more cautiously seems to prevail in the 

 East much more than it does in the middlewestern consuming sections. 

 The East does not seem to have entirely forgotten old traditions, but 

 the comparative insignificance of the effect of the election on busi- 

 ness marks a strong swing from the old precedents that were usually 

 re-established every four years. 



The factories are doing a lot of buying. This is true with, prob- 



ably, a few exceptions. Besides this the continued boost in the build- 

 ing industry is responsible for a caU of very good proportions. Then 

 there is the added impetus due to indirect business resulting also 

 from this situation. 



The feature which is giving a general note of encouragement is the 

 gradual resumption of the use of wood in car construction. As yet 

 this has been confined mainly to freight cars and of course the greatest 

 efforts are concentrated now on the production of as much added carry- 

 ing capacity as possible. But eventually this certainly will lead back 

 to the passenger cars as the present situation of the steel market 

 gives the car people just the excuse they want for getting away 

 from the unsatisfactory all-steel type, and back to the combination 

 steel-and-wood car. Scarcely aweek goes by without news of a big 

 order contemplated or placed by one or the other of the big railroad 

 systems, and whereas up to a short time ago these orders were mainly 

 for such construction as lay in the field of wood and wood alone, 

 orders for various types of lumber for cars are becoming more 

 prevalent. 



Speaking of oak in this connection, it is quite likely that the return 

 of this market will have a most beneficial effect on the whole oak 

 situation. Oak, by the way, seems to bo looking up very nicely of late, 

 although its progress is gradual and can hardly be called uniform. 

 However, the consensus of opinion as a whole predicts a more lively 

 call for the various kinds of oak lumber and an improvement in its 

 price. 



Gum, if it doesn't watch out, will soon be getting itself in the 

 list of precious woods. A great expansion in caU for this southern 

 product coupled with the extreme difficulty of moving and shipping 

 is changing the price situation for the better almost from day 

 to day. Gum is stiU the sensational leader of the southern woods, and 

 there is nothing now that indicates that there will be anything but 

 continued progress. 



Its northern competitor — birch — is keeping up with gum 's march in 

 a commendable manner. The same unsatisfactory stock condition 

 exists in this wood as is felt in the South, and mill prices have shown 

 a continued tendency to stiffen. At the same time a greater diversity 

 of uses is being developed and vpith broadened markets and a more or 

 less attenuated supply, birch has attained the position of being better 

 property than for a long time back. 



With these two woods must be mentioned the two other of our 

 native woods, which fit into so many of the same purposes, namely, 

 walnut and oak. As to oak, the situation has already been described 

 and it becomes more and more apparent that this wood, as have all 

 others, must depend for increased uses upon making its utilization 

 more diversified, thus creating a broader possibility of marketing. 



