16 



HARDWOOD RECORD 



July 10. 1921 



ning production on standard items. They quite naturally uill not 

 be eneouraKod to a normal volume of output if the liuyers insist 

 upon the continuance of a close-buying policy. ' 



As stabilized and minimum prices and an insured, evenly bal- 

 anced sui)iily of hardwood lumber are essential to the well being 

 of the wood-using industries, any policy which will militate against 

 those requirements is naturally to the disadvantage of the buyers. 

 But regardless of such considerations the relative position of 

 supply and demand will govern in this as any other considerations. 

 The man who has booked a substantial volume of business requir- 

 ing hardwood lumber in its production is not going to insist upon 

 frequent purchases of small j)arcels if he at all susjiects that there 

 may be difficulty in getting a sufficient volume of his raw material. 



In the meantime, tliough, this policy will likely prevail, as the 

 bulk of the furniture orders are placed on the same basis, and 

 until the volume of road business is determined, when the fur- 

 niture salesmen go out following the markets, the manufacturer 

 will not be much more certain of his future than he is at present. 

 Today, though, he is content to view with satisfaction the develop- 

 ment of the future markets, believing that they indicate the 

 gradual but none the less certain return of normal times. 



Haedwood Eecoud believes that no other one influence will so 

 strongly affect business in general as a settlement of the Govern- 

 ment's account with the railroads, described more fully elsewhere 

 in this editorial section. 



Hope Seen In Rail Settlements 



THE DAILY PRESS OF JULY 8 contained an interesting item 

 which for some reason was hidden away in an obscure posi- 

 tion when its potential importance entitled it to the utmost promi- 

 nence. Many remedies have been suggested for present business 

 ills, but it is doubtful if, with one exception, any other one thing 

 would contribute more towards revival. When it is realized that 

 tli|e railroads of the country normally purchase 35 per cent of the 

 product of private industry, it is immediately apparent that the 

 revival of the railroads would be a sufficiently large factor to 

 spread its helpful influence over the entire industrial fabric. 



Various stories have, been going around of late to the effect that 

 strenuous efforts are being made to bring about final settlement 

 between the Government and the railroads. In the item referred 

 to. Secretary of the Treasury Mellon is quoted as being hopeful 

 that these negotiations will come to a head within the next few 

 days. Secretary Mellon intimated further that arrangements will 

 probably be made for funding a portion of the amount owed to the 

 Government by the railroads, in exchange for which it will be 

 necessary for the Government to pay to the railroads approxi- 

 mately $500,000,000. 



This payment will be spread over a jieriod of possibly six months 

 and, as Secretary Mellon, Secretary of Commerce Hoover and other 

 memiiers of the cabinet are desirous of expediting the settlement, 

 there is great hope that emergency action may be taken without 



waiting for the burdensome processes ordinarily necessary. In 

 commenting on his endeavor to have this work accomplished. Sec- 

 retary Hoover declared that the tremendous importance of pros- 

 perity of the railroads is manifest in that the railroads are 

 employers of fully 20 per cent of the country's labor. 



Hardwood lumbermen will be interested in knowing that one 

 of the men whose influence and force have been extremely effective 

 in bringing about these negotiations is within their own field of 

 activity. W. M. Eitter, president of the W. M. Hitter Lumber 

 Company, Columbus, O., has spent most of the past two months 

 in Washington a.'isisting in bringing the matter to a head and has 

 developed a forceful compilation of data clearly indicating that 

 the need for emergency action in this case is just as strong as 

 was the need for the severance of red tape during the war crisis. 

 Mr. Ritter recently issued a memorandum bearing on the absolute 

 necessity for settlement of the Government railroad relations. 

 This work should have the support of every business man in the 

 country, as there unfortunately is no one thing or combination 

 of several things which could possibly have even approximately 

 the beneficial influence which would surely result from this adjust- 

 ment. In his memorandum Mr. Ritter emphasizes the depressed 

 condition of business in general, referring to the shinking tonnage 

 of the railroads, the very low ebb of production and employment 

 and the imminence of chaos. 



Then referring specifically to the railroads, Mr. Ritter instances 

 many specific items which give a clear picture of the deplorable 

 condition in which the railroads find themselves. Among other 

 things he calls attention to are the fact that one system has had 

 between $60,000,000 and $75,000,000 of audited vouchers which it 

 is unable to pay, and that for the entire country such debts would 

 probably run to several hundred million dollars, the amount the 

 Government is obligated to pay as the return for the guarantee 

 period is unpaid. This debt the Government admittedly owes, and 

 it represents sums the railroads need desperately. The railroads 

 in turn need to buy and want to buy and will buy if they are 

 supplied with the fuilds. The railroads, according to Mr. Ritter, 

 are the natural and logical buyers to start business, as they nor- 

 mally are the heaviest purchasers of any one group. Therefore, 

 an immediate and liberal settlement and liquidation of the Gov- 

 ernment's obligations should be effected. 



Assurance has already been given by the railroad executives 

 that these funds will be used for the proper purpose. In addition 

 Mr. Ritter suggests the arrangement of satisfactory' credit terms 

 to finance railroad purchases beyond the amount of settlement. 



That the immediate payment of $500,000,000 admittedly due the 

 railroads will have a far-reaching influence is shown in the fact 

 that careful calculations indicate it would result in immediately 

 clearing transactions aggregating over $5,000,000,000. Through 

 this action more production will be required, hence more labor 

 employed and idleness reduced. Further, as volume of production 

 mounts, cost per unit will be reduced and prosperity gradually 

 returned. 



Table of Contents 



REVIEW AND OUTLOOK: 



General Market Conditions 15-16 



Hope Seen in Rail SettJements 16 



SPECIAL ARTICLES: 



Interests of Hardwood Producer and Consumers 17-18 



Taxes Interest Michigan Operators 18 & 20 



Central Control of Saw Mil! Lubrication 19-20 



Buyers Mean Business in Grand Rapids 22-23 



Buyers Buy in Chicago Furniture Market 23 



Possibilities in National Advertising 35 



Controlling Moisture in Lumber and Veneers 36-44 



POWER LOGGING AND LUMBER HANDLING: 



Concerning Maintenance Costs 26 



Miscellaneous 26 



NEWS FROM THE NATIONAL CAPITAL: 



Miscellaneous 21 



CLUBS AND ASSOCIATIONS: 



Miscellaneous 28*29 



HARDWOOD NEWS 31-34 & 55 



HARDWOOD MARKET 55-58 



CLASSIFIED ADVERTISEMENTS 6«-62 



HARDWOODS FOR SALE 62-64 & 65-67 



ADVERTISERS' DIRECTORY 59 



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