January 25. 1917 



The midwinter meeting of tlie Michigan Hardwood Manufac- 

 turers' Association convened at Hotel Statler, Detroit, January 23, 

 with more than two-thirds of the members present when the 

 president W. C. Hull called the meeting to order. 



The secretary's report which included the treasurer's report 

 also, was approved. The secretary stated that lumber has been 

 last of the great building commodities to advance in value and 

 probably it has not yet fully come to its own. Its advance has 

 ranged only from one-third to one-si.iith as much as that of cement, 

 "brick, and steel. 



Secretary's Report 

 The monthly reports of shipments and production from October, 

 November, and December show a reduction in net stocks of hard- 

 woods, No. 2 common and better, 50 per cent; No. 3 common, 28 

 per cent, and hemlock reduction almost 50 per cent. 



The cash on hand January 10, 1917, was $3,210.98 in the general 

 fund, and $574.48 in the forest fire fund. The hardwood assessment 

 netted $6,813.37. 



There has been a movement on foot to make some changes in 

 the grading rules, and adding a grade of "selects." Joint con- 

 ferences were held with members of the Northern Hemlock and 

 Hardwood Manufacturers' Association, and the secretary's report 

 stated that the matter would come before the meeting for action. 

 Little improvement in the car shortage was reported. 

 The minimum car weight of 50,000 pounds for lumber, as sug- 

 gested by Examiner Esch of the Interstate Commerce Commission, 

 was considered impracticable by both shippers and carriers, and 

 action indorsing that stand was taken at a meeting of the transpor- 

 tation committee of the National Lumber Manufacturers' Associ- 

 ation in Chicago, January 17. 



The passage of the Webb bill having been endorsed by the Mich- 

 igan association, the secretary wired Chairman Newlands, and 

 Senators Smith and Townsend, urging the passage of the bill in its 

 original form. The Michigan senators pledged their support to 

 the bill. 



The National Lumber Manufacturers' Association has done much 

 to forward and protect the lumber interests in the United States 

 and its president, E. H. Downman, recently called a meeting of the 

 allied associations of the National for a conference, looking toward 

 a larger and broader work than has heretofore been done. This 

 meeting was to have been held in Chicago January 15-17, but owing 

 to lack of time for some of the western associations the meeting 

 was postponed until a later date. 



Other Committee Keports 

 The employers' liability committee advised no change in the law. 

 Chief Warden J. L. Lee Morford's report of the forest fire com- 

 mittee, set forth that it was the desire of the Forest Fire Protective 

 Department of the association to continue the patrol work during 

 1917. 



The Grading Eules Committee, by its chairman, W. L. Saunders, 

 showed that the Michigan Hardwood Manufacturers' Association 

 stood practically as it was shown to stand in previous reports. 



George H. Chapman, chairman of the Bureau of Grades of the 

 Northern Hemlock and Hardwood Association, discussed the 

 changes with members, after which they were approved for pre- 

 sentation to the National Hardwood Lumber Association at its 

 mee*^ing next June. 



A short talk on the subject was given by Frank F. Fish, secretary 

 of the National. 



Market Conditions 

 The report of the market conditions committee was read by its 

 chairman, Charles E. Abbott, as follows: 



A study of the stock report reveals several very interesting features, 

 some of which we will endeavor to point out. 



Hakdwoods 

 Total stock on hand is 7,857 M feet less than one year ago, and 29,491 M 

 feet less than two years ago. Total unsold stock is 39 per cent, or 



44,993 M feet, less than one year ago, and 50 per cent, or 71,5SU JI feet 

 less than two years ago. 



Stock on hand is 71 per cent sold. Stock sold but not shipped is 2G 

 per cent greater than one year ago, no doubt due to the serious shortage 

 of cars and other transportation difficulties during the past months. 



Ninety per cent of the stock on hand and 97 per cent of the unsold stock 

 is for rail shipment. 



Stock on hand compared with one year ago is as follows : 



Decrease — Increase 



No. 2 Common No. 3 No. 2 Common No. 3 

 , . & Better Common & Better Common 



Ash ... S6 256 



Basswood 2,371 1,045 .... - 



g?ech 4,188 .... 963 



girch 4,123 .... .... 3,298 



Rock Elm 662 349 



^oft Elm 3,346 656 



Maple 2,748 5,888 



Total 14,690 4,228 6,144 4,917 



Decrease — 8,546 In No. 2 Common & Better. 

 Increase — 689 in No. 3 Common. 



The October, November and December production of hardwoods was 

 60,108 M feet, while the shipment was 91,583 M feet, and the production 

 of hemlock was 43,326 M feet and shipment was 47,204 M feet for the same 

 period. 



No. 3 common hardwoods, though they show an increase in stock, it is 

 less than 1 per cent, while the unsold stock is 16,010 M feet, or 28 per cent, 

 less than one year ago. 



The movement of this grade has been exceedingly good during the past 

 sixty to ninety days and there is no question but what all the dry No. 3 

 common stock will have been cleaned up at very satisfactory prices by the 

 time our present winter's cut comes into shipping condition. 



All the No. 2 common & better woods, excepting ash and maple, being 

 less in stock and less in unsold stock, speak for themselves, they are 

 certainly in a very healthy condition. Ash is not far out of line and the 

 less than one-half million feet of unsold stock will, no doubt, take care 

 of itself within the next ninety days. 



No. 2 common & better maple, while there is 5,888 M feet more stock 

 on hand, the amount of unsold is 4,380 M feet less, or a condition equal 

 to 10,268 M feet better than one year ago. Following the situation still 

 further, we find the production of No. 2 common and better maple was 

 50,777 M feet greater in 1916 than in 1915, yet the present stock is only 

 3,140 M feet greater than one year ago, or a condition better by 47,637 

 M feet. 



Our esthnated production for 1916 was 440,631 M feet and our actual 

 production was 415,554 M feet, which, in view of the labor situation ap- 

 proaches our anticipation more closely than we had ho'ped for during the 

 mid-season. Our estimated production for 1917 is 422,799 M feet and 

 unless the present labor situation should materially change, of which 

 there is no indication, it is hardly to be expected that our estimated cut 

 will be exceeded, hence we will have for 1917 approximately the same 

 amount of stock to dispose of as we did in the past year. 



Hemlock 

 Hemlock stocks on January 1, 1915, were 178,081 M feet, with 153,178 

 M feet unsold. 



On January 1, 1916, there was 160,591 M feet, with 118,396 M feet 

 unsold. 



On January 1, 1017, there was 100,175 M feet, with 60,947 M feet un- 

 sold, or in other words, hemlock stocks were 60,416 M feet, or 37 per cent, 

 less than one year ago and 77,906 M feet, or 43 per cent, less than two 

 years ago. 



The unsold stock is 57,449 M feet, or 48 per cent, less than one year 

 ago. and 92,231 M feet, or 60 per cent less than two years ago. 



Our production for 1914 was 290,000 M feet ; for 1915, 234,000 M feet, 

 and for 191&, 204,000 M feet, while our estimated production for 1917 

 is 232,000 M feet. 



With the above facts and figures before us there is absolutely no ques- 

 tion but what the hemlock situation is in a flourishing condition, consider- 

 ing the amount of stock and unsold stock on hand, coupled with the infor- 

 mation we have as to there being not more than a normal production, the 

 present year should be a banner one. 



Lath 

 Lath stocks are 6,167 M, or 50 per cent, less than one year ago, and 

 10,926 M, or 64 per cent, less than two years ago ; and as to unsold stock 

 7,812 M, or 71 per cent, less than one year ago, and 12,667 M, or 80 per 

 cent, less than two years ago. With only 6,224 M on hand, and 3,145 M 

 to sell and an estimated production of about 15,000 M less than normal 

 for the coming year, this article is iu a fine position. 



Having covered stock conditions, we wish to call your attention to the 

 selling prices of our product. 



We are not receiving for our lumber as much as we should. At this time 

 we must all know what our additional costs of production have been for 

 1916. and we certainly know the addition to the selling price of our prod- 

 uct has nowhere near covered the additional cost of production. How 

 many commodities are there offered for sale today upon which the selling 



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