24 



HARDWOOD RECORD 



.July 111. li)21 



Memphis Is Quiet After Good June 



iC'tnt iinii il jiiiiii ixiii- -I) 



demand from overseas eyen yot. However, it is expected that 

 settlement of the coal strike in the United Kingdom will stimulate 

 demand from that country though it is problematical when liusi- 

 ne.ss in that direction will begin again. 



June was a very poor moiitli from a manufacturing standpoint, 

 for the reason that the vast majority of producers of hardwood 

 lumber contented themselves with completing the sawing of logs 

 brought over from the previous season, with talcing care of con- 

 tract timber or with doing absolutely nothing. There has per- 

 haps never been a month at any season of the year when produc- 

 tion was so extensively curtailed. This very limited output taken 

 in conjunction with the largest sales of the year, has resulted in 

 a substantial reduction of stocks. This loss is relatively heavier 

 in the case of firsts and seconds than in any other grade. The 

 next heaviest loss has been in Xos. 1 and 2 common, with No. 1 

 common easily leading. Inroads on the extremely low grades have 

 been comparatively small for the reason that sales and shipments 

 have been so light. From the standpoint of the producer, the 

 stock situation is considerably better than at any time this year, 

 but it is quite apparent, from the inactivity in both logging and 

 manufacturing ojierations, that there must be still further improve- 

 ment in the relations between supply and demand before there 

 will be general resumption of either logging or manufacturing. 



The tendency is still toward slight improvement in prices. The 

 higher grades, because of their relative scarcity, are firm and have 

 moved up somewhat further during the past thirty days. There 

 has likewise been a little improvement in No. 1 common. The 

 lower grades, however, have shown comparatively little price varia- 

 tion though some members of the trade sav the tone is better. 



Members of the trade in Memphis are confident that there will 

 be a better demand by Aug. 1. They generally anticipate that July 

 will be quiet but they believe that furniture manufacturers will 

 substantially increase their purchases after this month, particularly 

 if the furniture shows now under way result in as large sales as 

 now suggested. The notable activity in building ojierations all over 

 the United States is believed to furnish the basis for continued buy- 

 ing oil the part of manufacturers of flooring, sash, doors and interior 

 trim while limited stocks in the hands of other consumers, as well 

 as at distributing points, imply the necessity of constant rei)lenish- 

 ment if there is any activity whatever on the part of users. 



The lack of activity in the woods is receiving increasing atten- 

 tion at the hands of the trade. It is pointed out that the vast major- 

 ity of those who own their timber are leaving it severely alone for 

 the time being. It is likewise emphasized that those who do not own 

 mills and who must depend on the open market for their outlet 

 are doing very little for the reason that they are finding little or 

 no encouragement from their usual customers. Attention is being 

 called to the fact that there are virtually no logs being offered for 

 shipment on the Mississippi and its tributaries. It is likewise being 

 stressed that logging forces have been dispersed and that the}' are 

 completely disorganized, with the result that quite a time will be 

 required to get them together again for effective work. It is sug- 

 gested, in some quarters, that, unless logging forces are gotten 

 together and work is started in the woods pretty soon, the quantity 

 of timber available for fall and winter use will be dangerously 

 small. Manufacturing operations, when resumed, will be dependent 

 largely on log supplies, and, viewed from this angle, it is conceded 

 by the majority that there is nothing very promising or encourag- 

 ing in the outlook for hardwood production. 



Fight for Rate Cut Will Continue 



"The hardwood lumber industry is determined to make every 

 possible effort to secure readjustment of freight rates on hardwood 

 lumber and forest products because it realizes that, if rates are not 

 soon lowered, the present adjustment w'ill be fastened indefinitely 

 upon shippers of hardwood lumber and forest products." 



This statement was made by S. M. Nickey, president of the 

 Southern Hardwood Traffic Association, following receipt 

 of advices from the executive officials of the principal railroads 

 that they could not lower freight rates as requested by the asso- 

 ciation during the recent conferences at Washington. 



It may be stated, in this connection, that the association has no 

 idea whatever of abandoning the fight for lower rates. It believes 

 that jjresent freight rates are largely responsible for the failure of 

 lumber to move to market more freely, and it is planning to con- 

 tinue its efforts to secure what it considers reasonable rates. It is 



stated that, if the move about to be made does not bring some 

 relief, the association will file informal complaint with the Inter- 

 state Commerce Commission in the effort to secure lower rates on 

 lumber moving from producing points to consuming destinations 

 and on logs moving from the woods to milling centers. 



The association is on record as favoring complete elimination of 

 the advances made last August, ranging from 25 to 40 per cent, so 

 far as hardwood lumber and forest products are concerned. 



Eefusal of the railroads to lower rates on hardwood lumber and 

 forest products after the conference at Washington June 2 marks 

 the second turndown W'hich the lumber industry has received at the 

 hands of the executives of the principal railroads. The first fol- 

 lowed the conference at Memphis held early in March, when the 

 railroads made it clear, through their representatives, that they 

 are suffering much more severely than those engaged in the hard- 

 wood lumber industrv. 



Lumber Trade Customs 



Substitution of Transit Cars for Direct Mill Shipments 

 'J'HK F.VC'l'.s : .\ wliolesiili'v, who Is also a retailer, purchased a cir of 

 fir lumber for shipment to his Ohio address. The order was placed with 

 a wholesaler In Miunesota and speeifled "Direct Jlill Shipment Only" so 

 that privili'ge of recuuslgnmeut on through rates yvould accrue to Iniyer. 

 The seller later undertook to till the order by diverting a car which had 



• As estaiUahed hy the A.rbttratiO)i Department of the American Whole- 

 sale Lumber Asaociaticn, Chicago. 



previously been ordered reconsigned to a New York City customer with 

 whom some misunderstanding developed. Invoice was sent to the buyer 

 without any B/L or advice as to how the car was being bandied, thus 

 leading him to believe same was a direct mill shipment according to his 

 order. Upon receipt of invoice the buyer got in touch with the railroads 

 in an effort to locate the shipment and divert same to a customer in North 

 Carolina, -ifter tracing same for 45 days he discovered that the car had 

 gone to New York City and immediately wired the seller suggesting that 

 the latter either forward the shipment to North Carolina, at seller's loss 

 on through rate, or make other disposition. The seller undertook to for- 

 ward the shipment as suggested, but failed after trying for a month to 

 do so, due to congestion in the New York terminals. Thereupon seller 

 diverted another car of identical loading, which he had in transit, to 

 buyer's Ohio address. Meanwhile, however, buyer had notifitvl seller that 

 he could wait no longer and not to undertake to substitute another ship- 



