22 



HARDWOOD RECORD 



September 2o, l'J21 



Memphis Market Improves Tone 



The Mi'iiipliis liardwood inarkt't is sliowiiifj a Ijottcr tone ami the 

 outlook is eonsidcrcil much hriglitcr liy iiieiiihers of tlic trailo. Tliis 

 view is based primarily on the fact that export Ijusiacss is expand- 

 ing at a very gratifying rate and on the additional fact that 

 inciuiries from domestic sources arc on a much broader scale. 



The American Overseas Forwarding Company reports having 

 booked 50 cars of lumber for ex])ort in a single day last week, 

 while its bookings for the entire week in the southern field 

 amounted to 2,000,000 feet or more. Its bookings for the week 

 preceding amounted to 1,000,000 feet, with the result that the gain 

 of the former over the latter amounted to 100 per cent. This is the 

 most remarkable gain shown for any single week for more than 

 three years, and is accepted as indicating that foreign consumers 

 are displaying far more interest in southern hardwoods. Some of 

 the older exporters here are fighting shy of foreign business because 

 of credit extensions desired, and because of prices offered, but it is 

 apparent that southern manufacturers are, in a number of instances, 

 taking advantage of foreign outlets for some of their holdings. 

 The Southern Hardwood Traffic Association announces that impor- 

 tant reductions in ocean rates to United Kingdom ports have 

 occurred during the past few days, and that these have stimulated 

 overseas business. The American Overseas Forwarding Company 

 reports that southern hardwoods are being distributed in practically 

 all the leading European countries. 



It is quite apparent that domestic consumers of hardwood lum- 

 ber are delaying purchases in volume pending the outcome of the 

 efforts now being made by the Southern Hardwood Traffic Associa- 

 tion to secure substantial reductions in rates on hardwood lumber 

 and forest products. As a general rule, they are buying from hand- 

 to-mouth, but salesmen from Memphis and the Memphis territory 

 who have recently returned from consuming centers are unanimous 

 in the verdict that stocks are very much depleted and that there 

 must be a decided slowing down in activity at consuming plants or 

 a marked increase in the quantity of lumber bought within the 

 next few weeks, whether rates are lowered or not. Already fur- 

 niture manufacturers are beginning to place orders on a somewhat 

 larger scale and at somewhat better prices, while box manufacturers 

 are taking more low grade lumber than for a very long while. 

 Building trade interests, too, are buying in a somewhat larger way, 

 and, under the leadership of manufacturers of flooring, are consum- 

 ing considerable quantities of plain oak, gum and other southern 

 hardwoods. Inquiries are reported as broadening, and some mem- 

 bers of the trade say tliere has been more activity during the past 

 ten days than during any similar period since the depression of last 

 year manifested itself. 



In the meantime, there lias been practically no increase in manu- 

 facturing or logging operations. J. W. Dickson, president of the 

 Valley Log Loading Company, is authority for the following highly 

 rignificant statement: 



"We are operating one log loading machine on the Yazoo & 



Mississippi Valley lines of th<' Illinois Central as compared with 

 four under normal conditions. We are ojierating this machine only 

 about 40 jier cent of the time. We arc loading only 200 cars of 

 logs per month, compared with normal loading at this time of about 

 2,000 cars per month, and practically no new logs are coming out 

 for loading. ' ' 



This firiri loads a very large percentage of the logs handled by 

 mills lociilnl on lines of the railway in question, and it is quite 

 clear, from the extent of log movement and from the failure of logs 

 to come out more freely for loading, that numufacturing operations 

 in the valley territory cannot be other than extremely small. The 

 best authorities here place current production at approximately 

 20 to 25 per cent of normal, with logging operations, which must 

 be the measure of manufacturing for the next few months, almost 

 at a complete standstill. 



Manufacturers here and elsewhere in this territory who are keep- 

 ing their plants idle and who are leaving their trees standing in 

 the woods are taking this course because they insist that there is 

 no profit in converting their timber into lumber under present cost 

 of transportation of logs to their mills and of lumber to consuming 

 destinations. S. M. Nickej', president of the Southern Hardwood 

 Traffic Association and an official of the Green River Lumber Com- 

 pany and Nickey Brothers, Inc., takes his stand on the following 

 high ground: 



"We are not going to start up any of our machinery or put any 

 crews in the woods until rates on logs to the mills have been sub- 

 stantially lowered and tliose on lumber moving to consuming desti- 

 nations have received similar treatment, whether this lowering of 

 rates takes j>Iace within the next few days or whether it is delayed 

 for a period of ten years, for the reason that there is not the 

 slightest chance of making a profit under present transportation 

 costs." 



Other members of the trade, judging from their actions, take a 

 similar view of the situation. The time of year is at hand when 

 reserve log supplies for the winter and spring months should be 

 in process of preparation, but scarcely a move is being made in 

 that direction by the vast majority of the trade, and the view is 

 steadily gaining ground that consuming interests who have had 

 everything their way during the past few months in the matter of 

 prices may find themselves in the not-distant future seeking lumber 

 which does not exist. Stocks are admittedly large, so far as the 

 lower grades are concerned, but it is emphasized that holdings of 

 No. 1 common and better are already very much broken and that 

 little is being accomplished in the direction of replenishment. It 

 is further emphasized that present stocks of the grades in question 

 are only relatively large at best, and that they would quickly dis- 

 appear with the development of anything like normal demand, such 

 as indicated by those who have visited consuming centers and who 

 have seen how great the activity of plants is as compared with the 

 stocks of lumber on hand for their needs. 



{ContinueA from page 20) 



Now this is not because they disapprove the announced purpose 

 of the campaign. If a dealer is actually selling furniture under 

 misrepresentation — and it is known that some do so — the manu- 

 facturers are anxious, indeed, that somebody should bring that 

 dealer to time. His action hurts the entire furniture industry. 

 One big manufacturer of cheap furniture, nationally advertised and 

 well known, has always adopted the policy that any time he catches 

 a dealer misrepresenting his goods or charging an unwarranted 

 price for it he will never sell that dealer another penny's worth. 



That is tlie general custom among furniture manufacturers of re- 

 pute, but the c:impaign which Mr. Hawke has launched is looked 

 upon as an ill-advised campaign which hurts the entire industry by 

 raising in the minds of the consumers the suspicion that they are 

 getting plated ware when they believe they are buying sterling. 

 But it so happens in the furniture industry that "plated" and 

 "veneered" are synonymous, but that the "plated" furniture is 

 better in appearance and stronger and more expensive in some in- 

 stances than the sterling, so that to create the suspicion that 



