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Copyright, Thb Habowood Coupant, 1916 

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

 Mill and Woodworking Machinery, on the 10th and 25lh 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, NOVEMBER 10, 1916 No. 2 



General Market Conditions 



<pO FEEQUENT HAVE BEEN THE CHANGES and upsets in 

 hardwood markets during the past year that scarcely a month 

 goes by without one or two features of outstanding moment. The 

 newest development is the established fact that oalc is doing con- 

 siderably better than it was — it is not only being sold more readily, 

 but at better prices. Haedwood Record said in its last issue that 

 the renewed demand for wood in car construction would have a 

 most beneficial effect on the oalc market. This prophecy is being 

 borne out much more quickly than had been anticipated. Great 

 quantities of oak are going into car construction, which diverts 

 just that much manufacturing time from the production of the 

 usual thicknesses and sizes of boards. As a result shipping dry 

 oak in many sections is greatly depleted and stocks of some items 

 which ordinarily are commonplace are practically impossible to 

 secure. 



The inauguration of a national oak association is begun under 

 auspicious circumstances, but those who are appealed to with the 

 association idea should not comfort themselves with the thought 

 that present brightened prospects point to an end of all the troubles 

 of oak. Oak, as with practically all the other woods, each in its 

 turn, has been suffering from too much prosperity — things were too 

 easy. Competition which has been later developing was not formerly 

 present. Oak was king, and it was not considered that any force 

 or combination of forces could supplant it. There is still no reason 

 to be wildly excited over the position of oak lumber, but with the 

 various favorable circumstances working together, there is every 

 reason to believe that any changes in the oak situation, as long 

 ahead as anybody should attempt to prophesy, will be for the better. 



Improvement in other directions and bearing on other southern 

 woods as might come through normal channels because of further 

 increases in demand of southern hardwoods, is being offset con- 

 siderably as far as immediate profits are concerned by greater and 

 greater difficulty in shipments. Logging conditions have been very 

 good in most southern territories and many logs are piled up along 

 rights of ways with but a slim chance of moving them to the mills. 

 There are steadily continuing reports of mills shutting down on 

 account of the impossibility of getting sufficient logs. The same 

 conditions, naturally, effect a greater tendency to the piling up of 

 green lumber, but as most of this can be reckoned as sold, even 

 though orders for shipment may not actually be on the books, this 

 tendency is not necessarily toward the detriment of the trade at 

 large. The demand is there for the lumber, and it is reasonably 

 certain that it will continue for a sufficient length of time to take 

 care of these surplus accumulations when shipping facilities have 



again resumed a more normal phase. 



Increasing trouble on account of the car scarcity is reported 

 from the North, where also is an indication of, in some cases, serious 

 breaking up of stocks. An exceedingly favorable stock condition 

 is noted as compared to a year ago — in fact, as compared to a couple 

 of months ago. It is e.xpected, however, that the log input this 

 year will show somewhat of an increase over last year. Lumber- 

 men everywhere may well heed every word of caution on the ques- 

 tion of production in view of the rapidly mounting cost of manu- 

 facture. It is true that manufacturing plans can not be altered 

 over night in the lumber business to meet rapidly changing con- 

 ditions. But in a broader way provision should be made (and if the in- 

 industry is to enjoy any of the so-called present prosperity it must 

 so establish its plans) that i^ operating cost continues in excess of 

 operating revenue, losses will be minimized by restricted cut. If, 

 as reliable statements continue to suggest, it still costs more to 

 manufacture lumber than is realized on the average price, it is 

 manifestly better to reduce the cut as far as possible than to manu- 

 facture as much as possible in the hope that advancing values will 

 outrun advances in cost. 



There are other conditions than outside influences of purely 

 economic character which point to further rises in lumber prices. 

 These have to do with a growing recognition in the respective 

 groups of manufacturers of the absolute necessity for getting more 

 for lumber than present advances have accomplished. It can be 

 accepted as a fact that the forces tending toward more general 

 recognition of facts and conditions as they really are within the 

 industry itself, are going to just as strongly tend toward a rise in 

 values as the natural improvement in demand and general increase 

 in prosperity. 



Getting back to the northern woods, it is found by reckoning 

 of northern manufacturers that No. 2 and better, with one excep- 

 tion, has shown a marked decrease during the past year. In the 

 low grade there has been an increase in stocks on hand, but this 

 increase does not anywhere near conform to the amount on hand 

 unsold. This is only about one-third of the increase in the quan- 

 tity of lumber now at the mills in excess of the quantity a year 

 ago. Sales in northern hardwoods considerably exceed production 

 for the past year, and the general decrease in stocks was made in 

 spite of a ten per cent increase in production. 



The actual figures developing on the different hardwoods since 

 the last issue substantiate the opinions which were formerly based 

 only on general observation that lumber is a good bargain today 

 and is going to be a more expensive commodity in the very near 

 future. 



