HARDWOOD RECORD 



7if 



with oqual coufldence that if at any time within 

 the next five years lumber prices encourage these 

 48,000 mills and some others to cut to full ca- 

 pacity, the production temporarily will go be- 

 yond "50.000,000,000 feet in a single year. The 

 "president has absolved the lumber manufac- 

 turers from being in a trust, and because there 

 is no control of this immense sawing capacity, 

 the lumber industry will constantly be on the 

 verge of overproduction so long as large bodies 

 of accessible virgin timber remain. This is one 

 factor against high prices for lumber of which 

 we are certain. 



Another factor that has not been given the 

 consideration that it will soon compel Is the use 

 of substitutes for lumber. The United States 

 Forest Service has made some study of the sub- 

 ject and at the request of this association the 

 'following advance information is supplied : 



The lumber dealers of the ten at present more 

 or less treeless middle western states from Ohio 

 to North Dakota were canvassed to ascertain 

 how much, as shown by their records, substitutes 

 have displaced lumber within the past three 

 years. The information was sought from this 

 source because the dealers handle both lumber 

 and all of its common substitutes. The inquiry 

 brought 1.200 replies, which show that in this 

 great consuming region substitutes already have 

 filled 16 per cent of the demand for shingles, 

 nearly 14 per cent of the demand for fencing, 

 over per cent of that for pickets, 6 per cent of 

 the demand for flooring, over 5 per cent of that 

 tor common lumber and dimension, 4 per cent of 

 the demand for siding, 3 per cent of that for 

 lath, more than 2 per cent of the demand for 

 sheathing, and over o..'5 per cent of that for 

 fence posts. While, with the exception of fenc- 



GEO. E. FOSTER, MELLEX, TREASURER. 



ing. shingles and pickets, these relative decreases 

 in the demand for the different kinds of lumber 

 are not large, they are most significant. The 

 reports show without question that the use of 

 substitutes for wooden structural material is 

 making steady and general progress, both on the 

 farms and in the cities. Even more significant 

 is the fact that the use of these substitutes has 

 gone the farthest in the oldest and richest com- 

 munities. They are much more largely used in 

 Ohio, for instance, than in the Dakotas. Nearly 

 all of them, with the exception of the poorer 

 grades of prepared roofing and occasional other 

 items, are giving good satisfaction and it is the 

 general opinion of the lumber dealer that their use 

 will rapidly increase. The lumber manufacturer 

 who builds a steel and concrete sawmill, the pulp 

 manufacturer and the tannic acid manufacturer 

 who build immense plants entirely of reinforced 

 concrete, can throw no stones at the farmer who 

 erects a cement-block house, roofed with slate 

 or cement shingles, and who makes his barn floors 

 and feed troughs of concrete. 



The highest grades of all kinds of lumber meet 

 little competition, either among themselves or 

 from other commodities. Their prices may rea- 

 sonably be expected to advance materially within 

 the next few years. On the other hand, the 

 common and low-grades of all woods compete 

 with one another most vigorously. Moreover, 

 substitutes already are displacing them and the 

 competition of substitutes will grow fiercer with 

 time. The supply of cement-making materials Is 

 widely distributed and practically inexhaustible. 

 Our iron ore deposits will outlast our virgin for- 

 ests. Our clay beds will be with us forever. 

 .Tust as an example of increased competition of 

 lumber with Itself may be cited the fact that 



this year cargoes of Douglas fir from Oregon 

 will be trans-shipped across the isthmus of Pan- 

 ama and laid down at New Orleans, Philadel- 

 phia or New York on a 40-cent rate. 



The evidence is conclusive that the lumber 

 manufacturer who plans his operations upon the 

 supposition that he will get rich through a gen- 

 eral rise in the prices of all grades of lumber is 

 making a sad miscalculation. The most success- 

 ful lumber operation of the future will be the 

 one which, after instituting all the most modern 

 economics in logging and manufacturing, allows 

 the least waste, makes the most diversified prod- 

 uct, and so far as possible, puts the product into 

 the hands of the user. Only in fragmentary 

 fashion, here and there, has scientific forest 

 utilization been tried in the United States. The 

 general reply of the lumberman when criticised 

 upon his waste is that he is as saving as condi- 

 tions make profitable, a statement which, while 

 sincere, is not necessarily true as regards future 

 possibilities. 



The northern hardwood operator Is still pay- 

 ing the penalty of his white pine days. He cut 

 pine and nothing but pine as long as he could, 

 tlien he turned to hardwood, which he cut into 

 a tew standard thicknesses and sold log run as 

 the quickest and easiest way to get it out of his 

 yard, and this practice still dominates the Wis- 

 consin and Michigan hardwood trade. The trend 

 of the times along all manufacturing lines calls 

 for specialization. In lumbering it means the 

 woriving up of timber in such fashion as to get 

 the utmost possible advantage of its good quali- 

 ties whether the piece be large or small, and for 

 the making of stocks especially adapted to the 

 needs of the user. Your secretary is pretty 

 green, so he is willing to hazard the prophec.v 

 that there are possibilities in our Wisconsin and 

 Michigan ash, birch, basswood and maple that 

 some bright manufacturer is going to make 

 monev out of. while his neighbor continues to 

 sell log run and kick at the market. Our big- 

 gest manufacturer has .iust torn down his burner 

 and will make a profit of his waste hereafter, 

 while another wide awake manufacturer of pine, 

 hemlock and hardwood has a good trade in spe- 

 cial hardwood stock. These worthy members of 

 the association are keeping up with the times. 



Were our birch as high priced as mahogany. 

 it would be as fashionable. Why should not we 

 proceed to get the price? Wisconsin leads in 

 birch production, it should lead in putting birch 

 finish and furnitm-e into thousands of homes, 

 stores and offices where it is now unknown. The 

 cypress manufacturers are paying 10 cents a 

 thousand feet upon a year's cut to advertise 

 cypress in the popular magazines, and to keep 

 advocates of it on the road. The Douglas fir and 

 the yellow pine manufacturers are planning to 

 raise" fCSO.OOO to $40,000 each to advertise their 

 product. Can not we play the same game? 

 Even our despised hemlock, which Is as good a 

 structural timber as is ordinarily needed, will 

 wear as well in a paving Ijlock as Douglas fir. 

 but the public does not know it. 



Moreover, there are possibilities yet undreamed 

 of in all kinds of timber. They are waiting for 

 scientific development and utilization. This op- 

 portunity was partially recognized by the Uni- 

 versity (if Wisconsin and the United States For- 

 est Si?rvice when they co-operated to establish 

 at Madison the most complete laboratory In the 

 world in which to study the properties and uses 

 of wood. In the Wausau laboratory the Forest 

 Service will soon show the Wisconsin pulp manu- 

 facturer how to make ground wood from hem- 

 lock and relieve him from the necessity of im- 

 porting high-priced Canadian spruce. The pulp 

 manufacturers and this association have con- 

 tributed liberally for these undertakings. 



Whv should we not go a step farther and ask 

 the state to provide a school of forest utilization 

 at the university, where men can be technically 

 trained in the manufacture of forest products? 

 The laboratory studies, investigates, invents and 

 discovers. Tlie school teaches men how to apply 

 scientific principles to the problems of produc- 

 tion Wisconsin has no need for a school in 

 which to train foresters : there are plenty of 

 such schools alreadv in existence, from the At- 

 lantic to the Pacific. They should be strength- 

 ened and made more eflacient. not weakened, 

 through the multiplication of small schools. But 

 there is no college or university In Wisconsin or 

 in any other state to which we can send a man 

 for thorough instruction in the manufacture of 

 forest products. The forestry schools teach us 

 how to grow timber. Is it any less important 

 that we should be taught how to utilize It? It 

 is likely that the present session of the legisla- 

 ture will be asked to establish a forest school at 

 the university. Should we not grasp the oppor- 

 tunitv before" it is too late to secure instead the 

 school that Is bv far the most needed, a school of 

 forest utilization? Would it not be well for us to 

 have our legislative committee present this view 

 to the governor, the legislature and the unl- 

 ver.sity. and for us to ask other state organiza- 

 tions 'to .loin us in our efforts to make the most 

 of our timber resources? 



A. E. Owen, chairman of the Committee 

 on Grades and Information, then presented 

 an exhaustive report of the accomplishments 



of his committee during the last year, which, 

 so far as it pertains to h.ardwoods. is ap- 

 pended. 



Report of Committee on Grades 



At its meeting yesterday your committee de- 

 cided it would make no recommendations as to 

 values. It concluded that the weekly sales re- 

 port furnished by your secretary's ofiice gives 

 more pertinent information than we could pos- 

 sibly offer at this time. That last year's busi- 

 ness was not satisfactory is now a matter of 

 history. A consideration of the present and 

 probable future conditions will, I believe, be of 

 more interest. 



Our information Indicates that stocks in the 

 hands of yards and other consumers are as a 

 rule below normal and that large crops and 

 higli prices have increased the purchasing power 

 of our farmers ; labor is well employed and at In- 

 creasing wages : general business and the move- 

 ment of merchandise has been large in voIum& 

 during the year just closed and should, we think, 

 continue so. Late reports indicate easier money 

 and the bond market is in a more satisfactory 

 condition, ensuring our large business Interests 

 a better supply of capital under more favorable 

 terms. 



The railroads have been busy, as indicated by 

 the reports of gross earnings, and undoubtedly 

 they will be forced by necessity to increase their 

 purchases in order to maintain their roadbeds, 

 rolling stock and other properties. 



That more interest has been taken in our 

 products in the last two weeks than for some 

 time is evidenced by the fact that inquiries are 



T. A. GREEN, ONTONAGON, DIRECTOR. 



more numecous and orders are being hooked mor& 

 freely. While prices are low, they seem to be- 

 firmer, with a tendency toward advance on some- 

 items. This is partlcniarly true as to hemlock. 



Upper grades of hardwoods are only in mod- 

 erate supply. Demand for them Is good. It Is 

 entirely safe to sav that this condition will con- 

 tinue and that prices on these grades will ad- 

 vance from year to year. Lower grades are in 

 good supply "and prices correspondingly weak. 



The satisfactory disposition of the low end or 

 stocks still conti'nues to be a serious problem, 

 it is unfortunate not only for the lumberman 

 but for timber owners and conservationists that 

 present conditions prohibit the manufacture and 

 marketing of large quantities of really usable 

 material which we are now compelled to leave In 

 the woods or to send to the burner, through our 

 inability to market it at figures that will return 

 the cost of production. By putting in logs of 

 better qualitv we certainly could reduce the 

 amount of this class of lumber. This probably 

 would be as satisfactory a way as any of Im- 

 proving this condition, and we probably would 

 receive as much for what we did put in as we 

 now get It is unfortunate that the interior 

 mills are compelled to market their stock In 

 competition with that delivered to some of our 

 large consuming and distributing centers by 

 water at a very advantageous water rate. The 

 interior mills might more satisfactorily market 

 certain classes of stock after the close and be- 

 fore the opening of navigation. We should all 

 realize that stock shipped on low water rates 

 makes prices for that received by rail on much 

 higher carrying charges. , v* k., „<► 



Before leaving this subject. It might be or 



