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The Red Gum Situation 



Editor's Note 



The following iciiicr 

 the meetinK of gum mam 

 iiccomplishuipnts of this i 

 Sumner's talk point out 



l.lac- at M 

 111 ilctail In 

 lis why red 



The -writer regrets that conditions over which he has no control 

 have not permitted him to attend tlie meeting of the red gum 

 manufacturers in Memphis on October IS. 



As no doubt all the manufacturers know, tlie writer has been a 

 strong advocate and booster of red gum ever since it was put on 

 the marlcet, and, of course, any discussion to help along the sale 

 of same is naturally of interest to liim. The questions that are set 

 forth in the call for the meeting, under date of October 11, are of 

 special interest. 



The first — why has the market eased off? 



In the following, bear in mind, that the writer speaks only of 

 the conditions tliat e.xist in the eastern .states. The consumers are 

 principally the trim manufacturers, the furniture manufacturers 

 and the piano manufacturers. The trim trade is at a standstill. 

 This statement can be confirmed by anyone who knows the condi- 

 tions, or has traveled through either New York state or Pennsyl- 

 vania, and is especially marked in New York City. The furniture 

 manufacturers are fairly busy, but inasmuch as they have no 

 prospects ahead of two months or so, they cannot be induced, except 

 at especially low prices, to invest in any lumber. The piano manu- 

 facturers seem to be working full time, but they, too, will not buy 

 ahead of their requirements, so that it resolves itself down to the 

 fact that red gum is in pretty much the same condition as other 

 hardwoods, although there are one or two other conditions that 

 probably make it the slowest mover today. 



The basis of these conditions go back to the last flood. When 

 the first report of the flood at Dayton was heard a great deal of 

 stock, as all of you gentlemen know, and principally the red gum 

 in the lowlands section, was immediately put on wheels and shipped 

 without orders to the various consuming sections. The consuming 

 manufacturers at that time had really a large stock on hand and 

 while they were not interested in buying in large amounts they 

 took in some of the stock and, of course, the balance of it was 

 stored. In the summertime they started to use the first of this 

 consignment of stock, and at just that time the other manufac- 

 turers of red gum were again offering stock for sale. In the early 

 fall busines fell off and there was no volume of busines to speak of. 

 As a consequence, manufacturers began to offer their stock at lower 

 prices. With this drop in the market and with no special pressing 

 need the buyers grew conservative and decided they would hot 

 invest until they knew exactly what conditions were. 



Today an enormous volume of red gum is being offered by the 

 manufacturers. There is a much greater volume being offered than 

 is really on hand, for the reason that one stock sheet received in a 

 big center by say ten wholesalers is copied and sent out broadcast 

 by each of them. As a consequence there is ten times the actual 

 amount offered from one mill and a buyer in one city will get at least 

 five stock sheets. Now this, coupled with the stock sheets and 

 offers that are coming in from the mills direct, as well as from 

 wholesalers in other cities, gives a buyer the impression that guni 

 isn't selling at all, and that he can get it at his own figure later on. 

 You will no doubt be surprised to know that firsts and seconds red 

 gum is being sold as low as $37.00 on a Philadelphia rate of freight 

 by Louisiana mills, and by ear shipments. Even at this price, some 

 consuming manufacturers are buying in only limited quantities, 

 believing that there is to be a still further decrease in prices. 

 Now, you ask the question, "What is the remedy?" 

 No amount of advertising or any other sales work will under 

 these conditions be of any use; money would be only wasted while 

 these conditions exist. 



The underlying conditions are as follows: 



People are not buying luxuries in the face of the present times 

 and are buying only actual necessities. This affects the piano ami 



—20— 



umner of tlw Siimupr Liimhor Company, New York <:itv, at 

 mphis. Tenn.. on Saturday, October 18. The purpose" and 

 another part of this Issue of Hardwood Record. Mr. 

 gum is in the position it occupies today. 



the furniture industries. Real estate at this time is a drug on the 

 market for the reason that it is a slow asset, and at this time 

 money is not plentiful. This affects the trim trade. Then, too, the 

 investment market today offers on the best securities a six to 

 seven and one-half per cent return on the money invested, and 

 offers as well the chance of making a good deal of money in buying 

 at the present-day prices which, as you all know, ;ire very low 

 in comparison to what they have been. There is no question but 

 that in the adjustment of conditions the feeling of confidence that 

 will grow when legislative matters have been settled, will 

 strengthen gradually. The investment market will go up and from 

 the profits realized thereby the public will again have money to 

 put into real estate and into the luxuries which in turn will affect 

 the real estate business, the trim business, the furniture business 

 and the piano business, which industries, as you know,- constitute 

 the bulk of the consumers of red gum. 



While there is no question but that underlying conditions are 

 absolutely sound, at the same time there is not the feeling of con- 

 fidence today that there will be in the spring, by which time the 

 effects of the tariff, currency bill and other legislative factors will 

 have been felt. 



Lumbering in London 



The largest city in the world would naturally be the last place 

 to look for logging operations, including the felling, conversion, and 

 selling of trees; yet a recent issue of the Timber News, published in 

 London, gives some interesting facts on the subject of timber-cutting 

 in that great metropolis. 



In the first place, the city includes about 118 square miles, and it is 

 not solidly built up. Vacant lots and squares contain venerable trees, 

 some of them centuries old. As building operations are extended it 

 becomes necessary to clear this land, and the trees are sold to opera- 

 tors who cut and remove them. Rather large quantities of logs are 

 occasionally secured in this way. Oak predominates, but a recent 

 sale included trees of Lebanon cedar planted centuries before. 



It might be supposed that very high prices would be paid for 

 timber in the heart of London, particularly when trees are sound and 

 of large size; but such prices are not realized. A lot of seventy oak 

 trees "of hard, clear timber," sold for about fifty dollars, board 

 measure, per thousand; and the Lebanon cedars, one of which meas- 

 ured over 1.000 feet, brought only $18 a thousand. There was a 

 reason for the low prices. Timber buyers are strongly prejudiced 

 against city trees, because experience has shown that such trunks 

 are liable to contain all the way from a pound to a keg of nails, 

 spikes, and bolts that have been driven in for various purposes dur- 

 ing the last few centuries; and sometimes little good lumber can 

 be cut from trees which have an outside appearance of being perfect. 



Correction in Article on Eucalyptus 



In Hardwood Record of September 2.5, 1913, page 24, in Mr. 

 Tiemann's article on eucalyptus, a typographical error occurred in 

 the sentence: "The rate of growth of manna gum at the Santa 

 Monica experiment station is at best hardly two-thirds that of blue 

 gum, although it is reported to exceed the latter in the Hawaiian 

 Islands." In this sentence, "manna gum" should read "red ma- 

 hogany." There has been some discussion in California as to the 

 relative merits of the two species in question, and the sentence, as 

 originally printed, might lead to a misunderstanding. 



Knowledge is power only when you can use it — without use it is 

 more like dead timber — likely to decay. 



