OTT 



ftSMiloMRocoM 



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

 Mill and Wood-Working Machinery, on the 10th and 25th of each Month, by 



THE HARDWOOD COMPANY 



Henry H. Gibson, Editor and Manager 

 Edwin W. Meeker\^ 

 Hu Maxwell J 



>-Associale Editors 



Entire Seventh Floor Ellsworth Building 

 537 So. Dearborn Street, CHICAGO 

 Telephones: Harrison 8086-8087-8088 



Vol. XXXVI 



CHICAGO, MAY 10, 1913 



NEW Y( 

 No. 2 eOTANk 



T TO^;l5;;J6ra5 W^Ha^^|'t'TO ^l'J'.^^Jtw^-^ i'^^^*^ 



General Market Conditions 



THE HARDWOOD MAEKET throughout the couutry has not been 

 nuirkiMl liy any particularly prominent features during the past 

 two \\epks. The condition causing most comment is the fact that 

 \vhile there has been some recession in actual demand in most markets, 

 this recession has not in any instance been accompanied by even an 

 indication of demoralization of prices. It is true that the rapid, and 

 ill iiiauv cases not altogether to be desired, advance in hardwood quo- 

 tations has been somewhat checked, but still there has been a gradual 

 upward trend. In no case of any importance, however, is an actual 

 recession noted. 



Tlie unusual strength of the situation fundamentally is illustrated 

 strikingly in the Chicago market, which has been the recipient of a 

 vast amount of transit stock shipped out hurriedly on account of the 

 high waters in the South. While a great deal of this stock has ar- 

 rived, there is still some coming and probably some unsold, and while 

 it has affected the actual call for hardwoods to some extent, it has not 

 resulted in a noticeable falling off of hardwood values. 



There is still without question an excessive disparity between sup- 

 jily and demand favorable to the producers of hardwood lumber. A 

 large manufacturing concern producing southern stock, which usually 

 carries from 12,000,000 to 14,000,000 feet, reports that it now has 

 only 2,000,000 feet of lumber on its mill yards, and that it has more 

 orders than it could possibly take care of. This, of course, is only 

 one instance, but it is typical. 



The feature which probably has more to do with the maintenance 

 of prices than anything else is the fact that sellers of hardwood lum- 

 ber realize that there is no probability of mills being able to actually 

 meet the demand for some little time. Reports from northern mills 

 are unauimous in the opinion that the shortage of dry stock at most 

 points is almost unprecedented. 



In the territory in the South affected by the floods — Arkansas, 

 Louisiana and Mississippi — a great many of the mills have been down 

 for from five weeks to two months, and the Arkansas mills are only 

 now resuming operations. Mills farther south, of course, operated up 

 to a later date than the Arkansas mills, as they got the crest of the 

 flood a week .or two after their more northerly competitors. They also 

 have been feeling the situation very acutely for the past week or two, 

 and in a great many cases have been forced to discontinue operations 

 temporarily either because their plants were flooded or because they 

 could not maintain woods operations, or in some eases because 

 it was necessary to utilize the mill crews to fight the floods on the 

 levees. 



Probably the worst feature of the situation is seen in connection 

 with the yards in the territory devastated by the floods in the Middle 



West. In most cases these yards have signified their intention of dis- 

 posing of the entire amount of their flooded stock before getting in 

 any new lumber. This has to some extent kept them out of the 

 market for a while, but they are pretty well straightened out at this 

 date and are showing a more active interest in offerings. 



The manufacturing trade is unusually active for this season of the 

 year, and any disposition on its part to hold off purchases is attributa- 

 ble to seasonable causes in addition to their indisposition to purchase 

 large orders at present quotations. There has, however, been some 

 tendency toward larger buying, which would indicate that they find 

 the call for their product so active that they are forced to keep larger 

 stocks in their yards than they have maintained for some time. 



The favorable feature of the whole situation is the excellent 

 weather which has prevailed for the most part throughout all of the 

 middle western states, north and south. This has stimulated building 

 activity very remarkably, and it has unquestionably resulted in a 

 more favorable call for stocks in various woods going into house con- 

 struction and finish. Favorable weather conditions have also helped 

 the logging and milling situation very materially, enabling hardwood 

 manufacturers to get the most possible benefit out of prevailing high 

 prices. 



On the whole, while it is relatively easier to buy stock, l.ioth on the 

 part of the wholesale consumer and the lumber w^holesaler, neither of 

 these factors is purchasing stock with prices more favorable to them- 

 selves than they have been for some little time. 



Favorable Showing of Wooden Box Interests 



THE TESTIMONY submitted by wooden box manufacturers and 

 allied interests, heard at the second hearing of the now famous 

 Pridham case at Chicago last week and part of this, was concluded on 

 Tuesday of this w-eek, and on the whole the prospects for an 

 adjustment favorable to wooden box manufacturers and hence to 

 lumbermen is anticipated. Realizing the strength of the fiber box 

 people's fight and their favorable position, they being on the de- 

 fensive, those interested in the wooden box have made every effort to 

 secure the strongest testimony and to present the most convincing 

 arguments possible. Their efforts were unquestionably crowned with 

 decided success. 



It was suggested by those competent to judge that Mr. Pridham 

 will perhaps win his case, but that it will really have no bearing on the 

 ultimate adjustment of the tariff on shipments in fiber and wooden 

 boxes. It will be remembered that Mr. Pridham is suing for an equal 

 rate on east bound shipments from Los Angeles on goods shipped in 

 fiber and wooden boxes, he basing his claim on the fact that west 

 bound shipments take equal rates. The ease will probably be decided 

 on this point according to attorneys connected-, but it is maintained, 



