22 



HARDWOOD RECORD 



At times there has been a fair profit in the manufacture of hemlock 

 lumber in this region. This profit has been secured quite largely 

 through local demand, which has consumed considerable quantities. 



During the present year with the very low price that ha.s prevailed 

 for yellow pine, which has thoroughly invaded the hemlock sales 

 territory, it has come about that hemlock producers in the mountain 

 regions have been unable to secure a new dollar for an old one in 

 the nianufacture of this lumber, and beyond this have lost any 

 possible value that hemlock stumpage possesses. Scarcely a manu- 

 facturer of this wood in the district named claims to be making a 

 dollar out of it, and in quite a number of cases hemlock production 

 has been suspended. 



In the hardwood and hemlock region contiguous to Asheville, 

 hemlock stumpage owners are now turning their attention to trans- 

 forming their hemlock timber into wood for the production of pulp 

 and fiber for paper making, following the trend of the spruce 

 manufacturers who market their small spruce in this form. To be 

 sure hemlock fiber wood is not as valuable or does not command 

 nearly as high a price as spruce, but this seems to be about the 

 only salvation there is for utilizing the remaining stand' of hemlock 

 in the mountain region. 



Hemlock is a peculiar wood from the fact that the intermingled 

 hardwoods can not be cut out without killing its growth, and if 

 any utility is to be made of the stumpage it has to be cut at the 

 same time the hardwoods are. 



It is understood that recent deals made with the fiber companies 

 show the hemlock owners about seventy-five cents a thousand stump- 

 age, which naturally looks pretty thin for any considerable resultant 

 profit. 



The Price of Hardwood Stumpage 



The price placed upon hard- 

 wood stumpage is constantly 

 growing. Timber properties that 

 went begging a few years ago at 

 three to ten dollars an acre are 

 now eagerly snapped up at twice 

 and three times this sum. It 

 goes without argument that the 

 choicest and most valuable hard- 

 wood stumpage in the United 

 States is now in the hands of 

 actual operators. Many manu- 

 facturers are pretty well cut out 

 and are earnestly seeking new in- 

 vestments to perpetuate their business. The remaining timber areas 

 are constantly being cruised to find if the stumpage at the price 

 asked can be converted into lumber at a profit. 



While considerable areas of good hardwood timber is still standing 

 in this country, it is so located that the operating expense is so 

 high as to almost preclude the possibility of getting any profit out 

 of investments at the present base of stumpage cost. 



There was a time when mountain and swamp operations could be 

 carried on and lumber be produced at eight to ten dollars a thousand 

 feet. Today the cost has run up to twelve and sixteen dollars a 

 thousand feet and in some cases even higher. When on top of this 

 operating cost, two to five dollars a thousand stumpage is added, 

 there is little left for manufacturing profit. 



Stumpage values have never declined. They keep constfantly 

 growing higher and higher, but in the minds of many leading 

 operators today it is thought that timber values must decline before 

 there is any safety in making additional purchases with a view of 

 immediate operations. As a matter of fact many of the current 

 purchases of hardwoods are made for investment and not for 

 operation, buyers feeling that eventually stumpage will increase to 

 a point to show a profit, which is not possible at the present value 

 obtainable from lumber. 



This awakening to the situation is militating against a largp 

 number of transactions in hardwood timbcrlands at the present time. 



It is not likely that there will be very many important timber land 

 sales consummated in the immediate future unless the lumber market 

 should show a material accretion in strength. Liunber manufacturing 

 cost never will be any lower, and is increasing day by day. Stumpage 

 values are firm and high. Lumber values, save for the small and 

 better end of the product, are low. 



Here is the situation in a nutshell : Average lumber values are 

 too low or Etumpage values are too high. 



Meeting Executive Board Hardwood 

 Manufacturers Association 



An important meeting of the executive board of the Hardwood 

 Manufacturers' Association of the United States was held at this 

 organization's general offices, Cincinnati, on Saturday, October 29. 

 Most of the members of the board were present. 



Much detail work, including matters of inspection and oflSce 

 system, was gone over and approved. 



The secretary reported that since the last meeting of the board 

 fifty-three new members had been admitted to membership, of which 

 forty-two are manufacturers, six wholesalers and five consumers. 



After consideration of the tally book put out by the Haedwood 

 Record, Chicago, known as the Gibson Tally Book, on motion it was 

 decided that the association should heartDy endorse the book and 

 recommend the use of it by all lumbermen. 



The president was authorized to appoint delegates to the next, 

 meeting of the American Lumber Trades Congress. 



The board recommended that support by all members of the 

 association be given the National Classification Committee carrying 

 on a campaign in favor of the wooden box interests. 



It was decided that the next annual meeting of the association 

 should be held at the Sinton Hotel, Cincinnati, on Tuesday and 



Wednesday, January 31 and Feb- 



THE CRUX OF THE MATTER 



The trouble with the lumber business 

 lies in the fact that too many are trying 

 to get all out of it they can for them- 

 selves; and too few are willing to do 

 anything for the trade as a whole. 



ruary 1, 1911. The president was 

 authorized to appoint an enter- 

 tainment committee composed of 

 Cincinnati lumbermen to take 

 charge of the entertainment, with 

 instructions to make the same as 

 simple as possible. 



A replica of the badge em- 

 ployed at the last convention, 

 with some slight deviation in the 

 matter of attachment, was en- 

 dorsed for the official badge of 



_^^ the next meeting. 



Considerable discussion was en- 

 tered into regarding the program of the meeting, which will be 

 altogether in the line of practical and pertinent subjects pertaining 

 to the hardwood industry. 



President Carrier recommended that all members who maintain 

 a traffic department should attend the traffic meeting at New Orleans 

 on November 17. 



The secretary was instructed to attend the semi-annual meeting 

 of the Southern Cypress Manufacturers' Association at New Orleans, 

 November 16. 



The board recommended the adoption of the suggestion of the 

 National Lumber Manufacturers' Association to appoint as agent for 

 individuals having business before the Interstate Commerce Commis- 

 sion A. F. Tennile, 35 Bliss building, Washington, D. C, and that 

 a notice of such appointment be sent to the Interstate Commerce 

 Commission. 



Lumber Freight Rates 



Ever since the 1907 depression in business, the railroads, with 

 and vrithout authority, have been writing new and advanced rates 

 into their lumber tariffs, and of late repeated hearings have been 

 held before the Interstate Commerce Commission in which the railroad 

 people have made an attempt to justify their demand for increased 

 charges for the transportation of forest products. 



