18 



HARDWOOD RECORD 



September 25, 1922 



under assured delivery, partieularl}' if there is liable to develop 

 any urgent demand for full yard stock at consuming points, it will 

 certainly be the part of wisdom to make such purchases. 



Aside from this, the main point of focus of most industrial 

 executives, there is no other alarming cloud on the horizon. In 

 fact, in the matter of sales and, apparently, demand the situation 

 might truly be termed good. It is at present a not uncommon thing 

 to see southern hardwood shippers booking ten times as many 

 orders as cars in which to ship them. To illustrate, during the past 

 thirty days one Memphis shipper of good repute booked orders for 

 slightly over one hundred cars of hardwoods, and during the same 

 period received at his shipping but seven cars in which to load this 

 lumber for outbound movement. Orders, according to most accounts, 

 are almost plentiful, and while a multitude of disturbing factors 

 has caused considerable fluctuation in prices, both up and down, the 

 general tendency seems to be toward some strengthening. As a 

 whole the hardwood trade is not complaining over anything but 

 its shipments of lumber. Unless demand is of sufficient magnitude 

 and shipments so restricted that buyers bid against one ano her for 

 such cars as do go through, it is not likely that there will be any 

 "runaway market." While this undesirable result is hardly likely 

 to materialize, it may be expected that hardwoods will go througli 

 winter and spring on a comparatively strong basis of prices, reflect- 

 ing as the months go by a greater tendency towards stabilization 

 with less spread between grades. 



Why the Illinois Central Is Efficient 



A PHYSICIAN attempting to diagnose the condition of a patient 

 inquires as to the symptoms. This method may be applied to a 

 raib-oad as well as to a human system. It so happens that this dis- 

 course has to do with a symptom manifested by a railroad system — 

 the Illinois Central — by which we may explain why this system, 

 during the present period of car shortage and rail congestion in 

 the Southern hardwood territory, is maintaining a quality of service 

 and efficiency remarkable in contrast with the virtual breakdown 

 of the service of otlier railroads operating in that territory. 



The following is, we believe, the sign and symbol of the Illinois 

 Central's superior efficiency: Recently there was placed in the 

 shops of the company at Memphis a new and complicated machine. 

 It happened that a young man, little more than a boy, was put to 

 operating this machine. In spite of the complexity of its opera- 

 tion this young fellow soon learned to handle the machine with 

 remarkable skill and speed. His success with the machine attracted 

 the attention of his foreman, who in turn called it to the attention 

 of "Col." Egan, superintendent of the Southern Division. When 

 a short time after that Mr. Markham, president of the company, 

 happened to be in Memphis, Col. Egan told him about this boy. 

 President Markham 's interest was immediately excited and he 

 asked to be taken out to the shops to meet the young mechanic 

 The division superintendent and the president of the road repaired 

 to the shops, where they watched the prodigy go through his paces. 



Mr. Markliam was pleased and took the trouble to shake hands with 

 the young mechanic and tell him so. Subsequent to this visit the 

 shopmen went out on strike and this boy with them, but he was 

 out only a day or two before he returned to his machine. Very 

 much surprised at this his foreman wanted to know why he had 

 come back. The youth explained that he couldn't quit an organiza- 

 tion whose president, a busy man of large affairs, could take the 

 time to visit and commend one of the humble mechanics in his 

 organization. 



This incident is evidence that the highest ofScials of the Illinois 

 Central system maintain an intimate and close contact with their 

 vast organization and that no detail of it is too small to warrant 

 their interest. It no doubt is symptomatic of a policy which enables 

 the Illinois Central to surpass many of its competitors in the 

 quality of the service it is able to render under the most trying 

 circumstances. It is hardly necessary to further develop the moral 

 of this tale. 



The Question of a Runaway Market 



FROM A KECENT NATIONWIDE SURVEY of conditions iu 

 the lumber industry, made liy the National Lumber Manufac- 

 turers' Association, the conclusion is drawn that there is no stronj 

 probability of a runaway market in the near future. Letters 

 received in this connection from spokesmen of the jirineipal lumber 

 producing groups, expressed the opposition of the manufacturers to 

 ballooning prices and as well their intention to do all, in the way 

 of increased production, that can be done to forestall such an 

 eventuality. However, this is as far as the manufacturers or any 

 one else could go under any circumstances, because runaway mar- 

 kets are not subject to human control. The runaway market of 

 1920 and 1921 was the result of a combination of circumstances that 

 could not have been prevented; that is, first, the World War and 

 America's part in it, reducing the output and accumulation of lum- 

 ber and commodities made of wood, then the sudden and tremendous 

 revival of demand, an era of exceptionally high wages and excep- 

 tional earnings, together with weather, transportation and other 

 conditions which conduced to lowered production of lumber. Be- 

 cause these same circumstances, in like or similar degree, are not 

 likely to be duplicated, we are not likely to have a runa ,vay lumber 

 market during the next year. But as demand develops and shortage 

 of lumber occurs "there is nothing we can do to prevent buyers 

 from bidding for lumber," as the Northern Hemlock & Hardwood 

 Manufacturers' Association said, and we will see prices mount in 

 direct proportion to the spread between supph- and demand. But 

 conditions throughout the country are more normal than they were 

 during the two years directly after the armistice, and while it 

 seems certain that the lumber market is going to enjoy an advanc- 

 ing tendency for some time to come, no such abnormal situation as 

 that of 1920-1921 can develop. That great primary cause of the 

 1920-1921 inflation, the World War, we hope will never again be 

 duplicated. 



Table of Contents 



REVIEW AND OUTLOOK: 



General Market Conditions 17-18 



Why the Illinois Central Is Efficient 18 



The Question of a Runaway Market 18 



SPECIAL ARTICLES: 



Observations on Hardwood Selling 19 & 49-SO 



Southern Hardwoods Caught in Reul Jam 20 



Institute Is Making Progress 22 



Getting the Facts First. 23-24 



McCIure Answers Durgin's Letter 26 & 50 



North Adopts New Log Grading Rules 35 



Veneer and Panel Rate Suit Won 36 



NEWS FROM THE NATIONAL CAPITAL: 



Miscellaneous 21 



CLUBS AND ASSOCIATIONS: 



Institute Is Making Progress 22 



National Opens Inspection to Consumers 28 



Institute Holds Regional Meeting 28 



Rotary Cut Box Lumber Club Joins Institute 38 



Manufacturers Issue Folder on Real Walnut Furniture 38 



Miscellaneous 30 & 32 



HARDWOOD N EWS NOTES 52-55 



HARDWOOD MARKET 55-57 



CLASSIFIED ADVERTISEMENTS 60-62 



HARDWOODS FOR SALE 62-64 



ADVERTISERS* DIRECTORY 59 



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