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floMwoM Recol 



Published In the InleresI of the American Hardwood Forests, the Producis thereof, and Logging, Saw 

 Mill and Wood-Working Machinery, on the lOlh and 25lh of each Month, by 



THE HARDWOOD COMPANY 



Henry H. Gibson, Editor and Manager 

 Edwin W. Meeker"! 

 Hu Maxwell J 



^Associate Editors 



Entire Seventh Floor Ellsworth Building 

 537 So. Dearborn Street. CHICAGO 

 Telephones: Harrison 8086-8087-8088 



LIBRA! 



NEW vc 



««>tanic 



Vol. XXXVII 



CHICAGO, FEBRUARY 25, 1914 



No. 9 



:;.v:;K;tc;i<i)io ^i;y^iyi;!o.^:L;iv!;:.aiii>^;TOi!a^ 



Review and Outlook 



General Market Conditions 



WHILE THE T1;AI)K Ii\ TUK MIDDLE WEST aud iu the 

 East are not distinctly or closely allied, still the middle- 

 western sections watch conditions as they develop in the East 

 pretty closely, and are right now experiencing some uneasiness on 

 account of the slackening of trade in the eastern sections. This 

 ■condition is reported from practically all of the larger eastern 

 markets, and while it is a condition which is an actual fact, the 

 circumstances should not tend to create any undue pessimism or 

 to disrupt the market in any way. It is firmly a fact that there is 

 no reason for breaking in prices or for any kind of a feeling of 

 uneasiness, as there is every reason for a distinctly hopeful out- 

 look, even though conditions have not materialized as yet this 

 year as it was expected they would develop. It is rather difficult 

 to lay one's fingers on the actual reason for the holding back in 

 the call for lumber stocks, and the repeatedly expressed anticipa- 

 tion of an early opening up seems to be entirely justified and 

 justifiable. 



As is the impression in the individual sections, looking at the 

 matter purely from a general basis, the untoward weather con- 

 ■ditions which have prevailed all over the country for several 

 weeks past have been a very serious retardent in the development 

 ■of the lumber market; also the fact that the Interstate Commerce 

 ■Commission has not been able to hand down a decision regarding 

 the five per cent increase in freight rates has had something to 

 do with the situation. These two circumstances taken together 

 should easily account for the fact that business continues to drag 

 tiomewhat, and should be an explanation which should be entirely 

 satisfactory to the lumber trade in so far as eliminating any 

 ■doubt as to the future development of the business is concerned. 



Of course, it is a fact that since the first of the year predictions 

 have been everywhere forthcoming that there would be an early 

 and entirely satisfactory awakening in demand. It is also a fact 

 that these predictions have not entirely materialized, although it is 

 further true that in some sections the most favorable reports arc 

 emanating as to business that has actually transpired and is now 

 being done. Still on the whole business has not opened up as it 

 was anticipated it would, which is no reason, however, to believe 

 that the next few weeks will not see a decided awakening in 

 the demand for all kinds of lumber products. 



The two most important consuming factors, the railroads and 

 the building trades, are being retarded primarily by the condi- 

 tions before noted. The first of these, that is, poor weather, will 

 shortly be removed, and judging from reports of building permits 

 issued in almost all of the large cities, there will be a great activity 



in this line. As to the railroads, it seems almost certain that they 

 will secure their five per cent increase. In fact, they have been 

 getting into line on orders for rolling stock and motive power 

 quite actively, seemingly in the belief that their requests will be 

 granted. It is anticipated that while they will not get actively 

 into the market until the actual decision is handed down, there 

 will be some little tendency to loosen up, which tendency has al- 

 ready been noted. 



Of course, with increased activity in the building trades, there 

 will be an increased call from the factory trades to take care of 

 furnishings for such structures as are erected. Thus the situation 

 seems to have a decidedly favorable outlook. 



It is true that the export situation is not what it should be. 

 Conditions abroad are evidently continuing on a much more unsat- 

 isfactory basis, generally speaking, than they are in this country. 

 As to the lumber business, there is a really congested market 

 abroad, with a very considerable quantity of consignment 

 shipments which are not tending to improve the situation at all, 

 but are having their direct effect in the matter of continuing to 

 hold prices down to the minimum. It is surely to be regretted that 

 such shipments continue to be made on as broad a basis as they are, 

 considering the facts that are so apparent. 



Regarding the relative standing of the various woods, nothing 

 of note has transpired to change their respective positions. Oak 

 is somewhat off in some markets, but it is probably true that such 

 a condition is more the result of offerings on the part of concerns 

 heavily stocked in this class of lumber who desire to turn over 

 some ready money. In the main large oak stocks are firmly held. 



The box manufacturers in all sections are contributing more than 

 their share to the demand for all kinds of low-grade stocks, which 

 has apparently cleaned out low grades in certain items. Sap gum 

 is strong, as are cottonwood, poplar and other box lumber. Red 

 gum does not show any material strengthening, but it is a notable 

 fact that it has not shown any further weakening. No definite 

 change can be seen in the more minor species. 



It is probably a fact that northern woods are a little stronger 

 than southern woods at this time, although there has been some 

 little tendency to offer stocks at below prevailing prices. In view 

 of the poor jirospects for the supply of northern woods for the 

 coming spring, however, this tendency seems altogether unwar- 

 ranted and inexcusable. 



Putting the situatiou conservatively, there is certainly no rea- 

 son to believe that the immediate future of the hardwood business 

 will be unfavorable. In fact, there is every logical reason to be- 

 lieve that the developments in the immediate future will be decid- 

 edly to the adv.intage of hardwood operators in all sections. 



