THE HARDWOOD RECORD. 



13 



profitable expeiieuce of the past— were 

 made, to discontinue insuring at the ex- 

 piration of tiR-ir present policies. 



The liardwood di'alers of this city have 

 always contended that the insurance 

 premiums paid by tliem liave been a source 

 of clear protit to the insurance companies; 

 that, uulilie almost any other kind of in- 

 surable property, hardwood lumber yards 

 are not susceptible to damage from tiro 

 originadug on the premises; that sparks 

 and fire brands from an exposing tire 

 would not of themselves ignite a stock 

 of hardwood lumber, and that, in fact, it 

 would require the hottest kind of an ex- 

 posing fire, amounting almost to a con- 

 flagration, to even partially destroy a 

 hardwood lumber yard. 



In order to substantiate thei"e conten- 

 tions, this Exchange has secured data 

 from all the hardwood yards in Chicago, 

 covering a period of twenty-flve years. 

 This information shows that while the 

 dealers have paid out approximately $20,- 



000 annually— or a total of $500,000 for 

 the entire period mentioned — in insurance 

 premiums, the actual losses sustained dur- 

 ing that period do not aggregate to exceed 

 $tt,0OO, and the circumstances surrounding 

 each of the fires simply prove the sound- 

 ness of our contention, viz.; In 1SS7 

 George E. White & Co. sustained a loss 

 of $250, due to the total destruction of 

 a woodworking establishment located in 

 the very heart of their West Lake street 

 yard, and this' in face of the fact that their 

 lumber was piled close to the factory on 

 three sides. Several years ago, F. R. 

 Crane & Co., whose yard was then lo- 

 cated on North Branch street and Cherry 

 avenue, sustained a loss of $500 due to a 

 fire which desti'oyed the Pacific elevators, 

 located next to their yard. In the fall 

 of 1901 the Columbia Hardwood Lumber 

 Company sustained a loss of about $5,000 

 (or not over 20 per cent of the value of 

 their ytock), and the loss was due to a 

 fire which totally destroyed the plant of 

 the Marine Iron Works, which immediately 

 adjoined the yard. More than this, the 

 big pine lumber fire of lS9-t was checked 

 at the west end of the E. Sondheimer 

 hardwood lumber yard, and, although tlie 

 fire was hot enough to destroy a number 

 of cars— loaded with pine lumber— which 

 were on the railroad switch only fifteen 

 feet from the Sondheimer yard, no dam- 

 age was done this yard. 



In view of these circumstances the 

 Hardwood Exchange feels justified in ask- 

 ing that your organization give the sub- 

 ject of providing a new gichedule for hai'd- 

 wood lumber yards, early and favorable 

 consideration. We contend that not only 

 the present rates but those existing prior 

 to the increase of January 16 are too high 

 both as respects hardwood yards located" 

 in the Twenty-second street district and 

 yards in other parts of the city, and be- 

 lieve that a scliedule of rates baj"ed on the 

 experience of this particular class will 

 enable and warrant all hardwood lumber 

 dealers in this eit.v carrying a full line 

 of insurance, thereby increasing the reve- 

 nue of the insurance companies. 



As secretary of the Hardwood Exchange 



1 have been instructed to communicate 

 these facts to you and reijuest that you 

 have the matter taken up for early con- 

 sideration by the proper committee or 

 officials'. Should you consider that any 

 further information is necessary we are 

 ready and willing to furnish it. and if 

 deemed advisable would be pleased to 

 have a committee from this Exchange 

 take tlie matter up with your committee 

 in person. 



Very truly yours, 



H. M. XIXOX, Secretary. 



In addition to this presentation of facts, 

 Mr. R. T. Witbeck, representing tlie Ex- 

 change, visited the manager of the Uuder- 

 writei-s' Association and made an oral 

 argument covering all the points'. 



As to the success of all this effort it 

 can best be shown by quoting in substance 

 the new schedule as adopted by the Un- 

 derwriters' Association on the 23d inst. 

 This schedule provides a bas'ls rate of 

 $1.50 in the South Branch lumber district, 

 $1 inside the old city limits and outside 

 of the above district, and $1.25 in the 

 suburbs. This amounts to a reduction of 

 $2.50 per $1,000 all along the line, and for 

 the first time a distinction is made between 

 the hardwood and pine yaixis located in 

 the South Branch lumber district. 



All of the hardwood yards in Chicago 

 v\-ill now be rerated and within a s'hort 

 time the firms will be apprised of the new 

 rates. 



INVESTMENTS IN DELTA LANDS. 



The great fortunes made iu the white 

 pine business were not made in the mak- 

 ing or handling of lumber, as a rule, but 

 in investments made in white pine stump- 

 age. The same is tme of the fortunes 

 being made to-day in the cypress, yellow 

 pine, and Pacific Coast lumber trade. The 

 money is made in the timber. It is the 

 man who owns the timber who is master 

 of the situation. He may permit the saw 

 mill man to make a saw bill of a few 

 dollars a thousand feet, and allow the 

 dealer a small percentage of profit for his' 

 services, but the balance is his. The pos- 

 session of the timber is the main thing; 

 the lumbering operations are merely in- 

 cidental. 



It Is a well-known fact that but few 

 large fortunes have been made in the 

 hardwood trade as compared with the 

 fortunes that have been made in other 

 branches of the lumber business'. This 

 condition is due almost entirely to the 

 fact that it is the nature of hardwoods 

 generally to grow "thin on the ground," as 

 the farmers say, thereby making the 

 speculative buying and holding of large 

 quantities of hardwood timber so difficult 

 as to be practically unprofitable. This has 

 been especially ti'ue of the South. In 

 Michigan and Wisconsin, where hard- 

 woods grow more closely, some hand- 

 some fortunes have been and are being 

 made in hardwood timber holding. In 

 the South we have yet to learn of any 

 respectable profits having been made from 

 hardwood timberlands. 



We are convinced, however, that south- 

 ern hardwood timljer lands are, at the 

 present prices, exceedingly good inves't- 

 ments. Those lands in the Delta country 

 are the most fertile lands in the world and 

 worth much more with the timber cut 

 away than when it is standing. Such 

 lands may be purchased for $S or $10 an 

 acre, with the timber on, and while there 

 is not much profit in removing the tim- 

 ber, the land, as soon as' it is cleared. 



rents retidily for $5 cr more per acre. 

 Laud throughout Illinois which rents for 

 $5 is worth $100 an acre. Cultivated Delta 

 land will not sell for such an amount to- 

 day, but the time is rapidly approaching 

 when it will, and as an investment it is 

 worth that much at present. 



At the present price at which that land 

 may be purchased it is the best investment 

 of which we have any knowledge. The 

 timber on the land will pay for putting 

 it into a s'tate of cultivation and yield in- 

 terest on the money while the work is be- 

 ing done. As soon as the land is in culti- 

 vation it yields a return of from 40 to 50 

 per cent a year upon the capital invested, 

 besides which it is steadily and rapidly in- 

 creasing in value. Very large immediate 

 returns are not possible, but as a perma- 

 nent and reliable investment Delta hard- 

 wood timberlands are as desirable as any- 

 thing on the market It is our belief that 

 $100,000 judiciously invested in that sec- 

 tion, will, besides yielding a handsome in- 

 come in the meantime, grow into a million 

 dollars within twenty yeai-s. That is a 

 conservative statement, and will be ap- 

 proved by almost any man familiar with 

 the situation. 



That land is being taken up with con- 

 siderable rapidity, but there is still abund- 

 ant chance for investment. There is 

 scarcely a day but some such opportunity 

 is presented at this office, but as a rule 

 lumbermen have no spare capital. All 

 they have they are using in their business. 

 The only portion of the proposition which 

 appeals to them is the timber. If the 

 timber may be readily and rapidly turned 

 into lumber, and they may get an "even 

 break" on the land aftei'n'ard, they will in- 

 vest; but not otherwise. 



Many good things are offered and are 

 going a-begging for the reason that the 

 lands, because of being too great a dis- 

 tance from a railroad, promise no imme- 

 diate returns. 



Such investments are not for lumbermen 

 but for capitalists, and it seem? a shame 

 that capitalists do not pay attention to 

 them. 



When a man calls upon us with a tim- 

 ber proposition we endeavor to ascertain, 

 first, whether he is looking for a lumlier- 

 man or capitalist. If his holdings are 

 adjacent to a railroad on a reasonaI)le 

 freight rate it is not difficult, as a rule, to 

 refer him to a purchaser. If his' land be 

 distant from the transportation lines, how- 

 ever, and in that coimtry a very few miles 

 render it "distant," ho cannot, as a rule, 

 interest a lumberman in the proposition. 



As a rule to interest a capitalist in Chi- 

 cago the deal must be a large one; some- 

 thing that will employ a large block of 

 capital. Consequently there are a large 

 number of small tracts, ranging from 1.0()0 

 to 10,000 acres, which, being back from 

 the lines' of transportation, are practieall.v 

 unsalable. It looks like a shame, for they 

 could be boi:ght at a very low price, and 

 in the course of a few years would make 

 someone a lot of money. ' 



