28 



HARDWOOD RECORD 



wood stocks iiif lower liy M pur cent at the 

 prosonl ilmc tlmn llu'y have been nt any lime 

 before. Yours truly, 



KiiLi.KV, Mai s & Co., 



.T. r. KoDzen. 



V'linviDK.vi'E, R'. I., Dec. 16. — Hdllor II.vudwood 

 Iii:riiiii>: Our Menipbis ofTiii- reports that pro- 

 duction througliout the Misslssl|)pl valley has 

 been very greatly reiUucrl. practically all of 

 the small mills and a larj,'e ped'entage of the 

 Inrae mills bein?; shut down linleflnltel.v. From 

 iiiir connections alon); the Ai<palaclilan range 

 wp learn that the small mills are out of coin- 

 mtssloD and most of the large luills are also 

 down. We find that tlie upi)er grades of poplar, 

 oak. and especially iiuartersawed white oak, 

 are scarce and higli. and we find that the low 

 grade chestnut and common plain oak are In- 

 clined to be weak. Tills Is only temporary, and 

 we are of the opinion that there has been two 

 or throe limes as much hardwood lumber con- 

 sumed In the last two months as has been man- 

 ufactured. We believe that with the easing up of 

 the money market after the first of the new year. 

 some of tlie large consumers will i)e very much 

 surprised when they send out for quotations. 

 There will, of course, be a few weak holders 

 that from time to time, for financial reasons, 

 will he obliged to release some of their stock, 

 but at the present time there are very few, if 

 any, that are cutting prices in this section on 

 desirable stock. Yours truly. 



L. II. Gage Lu.mbku Comi>a.\v, 

 N. II. Walcott, Vice-President. 



CuKVKi.AXi), Ohio, Dec. 10. — Editor Uardwood 

 Kkcobd: Replying to yours of the 12th inst., 

 wish to say that we agree with you that the 

 recent linancial Hurry is practically over and 

 we believe it will not be very long before the 

 iuinl)er business resumes its former activity, 

 but we must recognize the fact that the scarcity 

 of money recently curtailed the demand for the 

 commodities ivhicli are made from lumber, and 

 also made it necessary in a great many in- 

 stances for the factories which make those com- 

 modities to shut down for the time being, either 

 partially or altogether, so that when the finan- 

 cial trembles were over the factories found that 

 they liad a larger stock of lumber on band thau 

 they needed for their immediate wants, and 

 we believe these factories are determined to 

 dispose of their surplus before makiug any 

 further purchases, and we do not think that 

 any cut in i)Vices will induce these factories to 

 purchase an additional supply. Undoubtedly 

 the stocks on band will be consumed within 

 the ne.tt two or three weeks, and if those who 

 have lumber to sell will hold their stock until 

 that surplus is disposed of. they will be able 

 lo market it at much belter figures, and 

 by adopting this course the siuiation will bo 

 very materially improved. 



We recognize the difference belwoon tlie con- 

 ditions of tlie country today and those which 

 prevailed in JS!):{. We think that with the 

 abundant crops which are being sold at excellent 

 prices, conditions in a very short time will re- 

 sume their former prosperous sway. 



During the past few days we have seen letters 

 from two or three manufacturers wlio have re- 

 fused to ipiole prices under present conditions, 

 stating that they prefer to hold tlieir stocks 

 until after the first of January, believing llieir 

 stock is worth more money and that they will 

 have nil difficulty in getting their price at that 

 time. We believe that attitude, if carried 

 out by other manufacturers, would assure the 

 retailers and consumers that tliere would be no 

 further decline in prices, and would promote 

 purchases much sooner than would otherwise 

 be the case. Y'ours truly, 



The Robert II. Jexks Lumber CojirAxv. 



declined nil niiartoied red or while oak, hickory, 

 walnut and plain white oak. 



We are having orders for these items at 

 prices as lilgli as have obtained at any time 

 iluring ]!)07. of course we have not been de- 

 luged with orders, but we are getting them 

 I'very now and then and do not feel puzzled over 

 the situation, as we know that orders are only 

 being placed (o supply present demands. 



There seems to he a bear movement against 

 plain red oak, but this movement cannot pre- 

 vail for any con*iderable length of time on 

 account of the fact that stocks are no more 

 than normal : product Ion has been cut off fully 

 SO per ceni and stocks in consumers' liands 

 are being rapidly worked up, so that before live 

 months liave rolled around someone is going 

 to want plain red oak at better prices than are 

 now being offered. 



The banks are giadually resiiiiiing currency 

 payments and are beginning to take a little com- 

 mercial iiaper, and certainly by the middle of 

 .lanuary they will take all the good commercial 

 liapor that is offered, and this will, of course, 

 m.ake it easier to do business. There have been 

 very few failures and collections are good and 

 altogether, wliile we have tried very hard to do 

 so, we cannot convince ourselves that we are 

 in a bad h.x. Very truly yours. 



Love, Bovu & Co. 



Cadillac, Mich., Dec. 16. — Editor IIardwuou 

 Record: Replying to yours of the 12th, con- 

 {■orning the hardwood situation : 



Stocks here are materially below normal and 

 additions thereto are materially below the usual 

 by reason of delayed sleighing, and from the 

 fact that operators have decided upon lesser 

 output. Our information is. and we believe it 

 creditable, that there will be a reduction of 

 nearly if not quite 25 per cent in the output of 

 hardwood for the season of 1908. We cannot 

 Intelligently forecast the probable demand, our 

 information as to outside conditions being too 

 limited. We simply do not know what the 

 louiitry at large intends to do, save that from 

 reading of papers and other information that 

 readies us, there is an indication of restricted 

 use of lumber. 



Now, admitting that there will be a restricted 

 use, it will be met with a restricted supply. The 

 only thing that can, in our minds, bring about a 

 material reduction in the price of lumber will 

 be a collapse in general conditions. 



Erom a statistical standpoint of stocks on 

 hand, and from the standpoint of tiic cost of 

 lumber and manufacture, hardwood lumlier can- 

 not decline. Based on the prices tiiat have 

 prevailed during 1907 and on the cost of stump- 

 age and production, the manufacturing and sell- 

 ing of hardwood lumber rough has been a close 

 business. JIaple particularly has not yet come 

 to its own in the matter of price. Y'ours truly. 

 The Cadillac Handle Comi'Axv, 



A. W. Newark. 



Ci.NctxxATi. Ohio, Dec. 10. — Editor IIardwuud 

 Record: Rotorring to your favor of the 12tli, 

 will say that for our part we take rather an opti- 

 mistic view of the future hardwood business. Just 

 at this time business is quiet with us and we are 

 not jiiishing sales at all. At that we are get- 

 ting in a few orders from people who want 

 slock for immediate use, and who seem willing 

 to pay what stock is worth ; or, in other words, 

 we have not as yet found it necessary to change 

 our prices from those prevailing in the last 

 ninety days. 



The writer has Just returned from western 

 Xew York and southern Michigan, and feels 

 very niuoh encouraged as to future conditions. 

 Yours truly. 

 The I. M. Asher LuitBEu CiiMrAxv, 



I. M. Asher. Manager. 



say that-your information covers the ground in 

 so far as conditions appear to us. 



Tlie financial situation Is now good and will 

 continue to grow better. The volume of business 

 has decreased, which Is only to be expected at 

 Ibis season in hardwoods, but prices have been 

 invariably maintained. 



Dry stocks are scarce and well In hand, and 

 with the opening of the new year the expected 

 moderate demand will hold up present prices and 

 by March 1 the tendency will be upwards. 

 Yours truly, 



SiCIvLESTEEL LUMBER COMfAXV. 



rirr.sBURr.. Pa.. Dec. 10. — Editor Hardwood 

 Record: During the past thirty days only have 

 we noted a general slackening up in hard- 

 woods, and fully believe the present situation 

 is temporary in cliaracter. 



.\t the present time there is no large quantity 

 of stocks being held by the manufacturor, and. 

 as unquestionalily there will be a heavy buying 

 of these woods during the early siiring months, 

 market values will naturally stiffen up to a 

 considerable degree. 



A careful inventory of the stocks being car- 

 ried at the present lime by large users of hard- 

 woods will demonstrate the fact that heavy 

 buying will be neces.sary to replenish their de- 

 pleted stocks ; but while we do not look for a 

 record breaker during lOO,*;. we are satisfied there 

 will bo a very considerable amount of business 

 for all connected with the hardwood trade. 



We have a large number of contracts on oiiv 

 books, temporarily held up, which will assist in 

 swelling our iiusiness for 1908, as shipments 

 will be resumed after the first of the year. 

 Yours very truly, 



.VMElilCA.N IjUSIBER AND MPG. Co.Ml'AXi. 



Nashville. Texx., Dec. IG. — Editor Hardwood 

 Record : Replying to yours of the 12th, we 

 state as a positive fact that prices have not 



Detroit, Mich., Dec. 10. — Editor Hardwood 

 Record : Y'our letter of the 12th inst. received. 

 Relative to hardwood lumber conditions, will 



Memi'Iii.s. Texx., Dec. 14. — Editor IIardwiiod 

 Record: Replying to your favor of the ]2th 

 inst., asking tor our opinion on the Iiardwood 

 situation, will state that our ideas are very 

 mixed at this w-riting. We believe that if we 

 had not had a panic in 1907 there would have 

 boon a lotting-up in the demand for not only 

 hardwood lumber but all commodities during 

 IOCS, as presidential years always have shown 

 a contraction in all lines of business. The panic 

 will exa.ggerate the conservatism that usually 

 affects business during presidential years, and 

 we believe that the average business man will 

 bend every effort to paying up instead of con- 

 tracting fresh indebtedness. The panic has 

 stopped many enterprises, has lessened the out- 

 put of iron, steel, has temporarily stopped the 

 construction of now buildings, which necessarily 

 has thrown many men out of employment. 



Europe is suffering from hard times .-i ^ well as 

 our own country. (iermany is in very hard 

 straits and having a panic almost as severe as 

 the one that this country is now experiencing. 

 This is having its effect on Great Britain, the 

 Scandinavian countries and Russia, and we have 

 been informed that in the latter country money 

 is hard to secure at 10 per cent. If the hard- 

 wood lumber manufacturers would liavo a nor- 

 mal demand from Europe it would assist in get- 

 ting rid of the surplus that is now on hand and 

 lumber that would be manufactured during 1908, 

 but we do not believe there will be a healthy 

 demand from Europe the coming year. We 

 think the manufacturer of hardwood lumber, 

 especially tlie manufacturer who owns his own 

 stumpage, will do well to curtail his output the 

 coming year. Our prediction is that if the 

 I'uitod States has only normal crops in 1908 

 and the Republican candidate is elected, "we will 

 see the largest business and probably the highest 

 prices for hardwood lumber during 1900 the 

 trade has ever experienced. 



Erom our point of view, the only bright spot 

 Ibat we can discern at this writing is the fact 

 that fully 50 per cent of the hardwood mills are 

 close^. This curtailment of production will pre- 

 vent an oversupply of hardwood In the spring 



