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' "nl'.\ '■i;:llt. TUK IIa1!I)\V<M)!» Cii.MI'AN "1 , 11(17 



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

 Mill and Woodworking Machinery, on the lOlh 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, JANUARY 25, 1917 



No. 7 



^ roroaaTOi^^wota^ t^Jiai^it^si^Jii^Jit^^ 



Review and Outlook 



General Market Conditions 



Up TO A COI^PLE OF YEARS AGO an opinion which expressed 

 a feeling of optimism in hardwood circles was, of necessity, 

 based on a i;athcr vague foundation. With absolute lack of unity 

 prevailing in lumber circles, with no co-ordination of purpose or 

 co-operation in effort an opinion tending to express a condition or 

 to define a sentiment in lumber circles was based on a theoretical 

 exposition of wliat the trade thought. Such an analysis in those 

 days was the result of expressions of individuals and was not based 

 on unalterable facts and figures. 



Today the trade has passed through a jieriod of transition; it has 

 become f^pecializod and has created for its use and for its better- 

 ment means whereby intelligent and comprehensive survey of the 

 markets and possibilities for developing the markets for this or 

 that hardwood, in fact for all of them separately, are available. 

 So today a market analysis which says that strength exists in manu- 

 facturing circles means not that this or that individual has 

 expressed that opinion but that continuous recording of facts and 

 figures presents a definite condition as existing in the industry 

 as a whole. 



"So looking at the situation as it is thus presented in the records 

 of the northern and of the southern assoeiatious, each specializing 

 in its own wood, 1917 is beginning under most auspicious circum- 

 stances. By the time this issue of H.^rdwood Record goes to press 

 the various specialized organizations in the hardwood field will 

 have either held their conventions or have completed statistical 

 preparations. In no case is there revealed a condition that suggests 

 the remotest possibility of weakening in hardwood values due to 

 over-accumulation of unsold stocks, or to lack of confidence in the 

 immediate future. Quite the reverse, in fact, is true in every case. 



The southern situation as revealed in the gatherings at Memphis 

 last week was spread before the southern hardwood producers 

 in a sketch that accomplished three things: It showed to the 

 southern operators that stock conditions in dry unsold hardwoods 

 at the mills could not be stronger; it revealed to those manufac- 

 turers in undeniable form that they have not been getting for their 

 lumber up to now enough to enable them to pay even modest 

 dividends; it led to a certain and unified determination to quote 

 only on a basis that would insure returns commensurate with 

 vastly increased operating costs and to stand behind those quota- 

 tions in every instance. 



The northern situation at the time of going to press is not so 

 definitely revealed except insofari as it is indicated by advance 

 information on market analyses. However, the definite statements 



are made in those summaries of conditions, that former recommen- 

 dations must be bettered in order to cover advanced operating 

 costs; that prices have not been in keeping with the rapid upward 

 movement that has been manifest in every item of manufacturing 

 expense. 



That the bigger buyers have either already become fully con- 

 vincd that it is unreasonable and futile to erpect' anything but 

 even stronger hardwood values, or, that they are partially convinced 

 and determined to find out definitely for themselves, is proven 

 by the considerable number who have made southern bu3'ing Mps 

 during this month. Some have come back with the admission that 

 the situation can not be taken out of the producers' hands and 

 that the prospect is for continued strength in hardwood prices. 



There still exists, though, a very considerable number of buyers 

 who have not allowed themselves to see things as they actually 

 are, who still insist that they will be able to buy their lumber 

 much cheaper very shortly. Most men who take this attitude are 

 undoubtedly influenced by the fact that the hardwood handlers are 

 of course still sending out their salesmen. Each buyer is visited 

 just so often by the representative of the companies who usually 

 solicit his trade. Therefore he concludes that there is all kinds 

 of lumber for sale. If he could only talk face to face with the 

 men who have the stock on hand, that is what stock is ready for 

 shipment, if he could only see, the letters which go out almost 

 every day and hear the conversations which take place almost- 

 every day, in which definite statement is made that the seller is 

 not really anxious to solicit new business but bids merely because 

 he appreciates the business that the customer has given in the 

 past, and is anxious to do everything he can to take care of him 

 in the future, he would be compelled to see the situation in a 

 different light. 



This report is not intended to bull the market. It is merely a 

 statement of conditions in the hardwood territories just as those 

 conditions exist and as they can be ascertained by anybody who 

 will take the trouble to find out. It is rather a warning to buyers 

 that the liardwood situation is growing stronger day by day in 

 almost every wood and in almost every grade that goes into 

 ordinary use. It is written with the full knowledge that there are 

 .still sawmills which are not interested in. the co-operative move- 

 ments which liave lent such a large measure of strength to the 

 hardwood situation! But it is definitely a fact that the situation 

 as a whole is controlled by those firms which are interested in 

 those co-oper;itive efforts, and that control is what is going to 

 make the markets. The woodworker who has not the courage to 

 buy now will need more highly developed courage to buy in the 

 future. 



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