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fliMwoM RocoM 



Published in the Intrrrst of (he American Hardwood Forests, the Producis thereof, and Lo( 

 Mill and Wood-Working Machinery, on ihe lOlh and 23lh of each Month, by 



THE HARDWOOD COMPANY 



Henry H. Gibson. Editor and Manager 

 Edwin W. Meelcer"! ^ 



;lng, Saw 



Hu Maxwell 



^Associate Editors 



Entire Seventh Floor Ellsworth Building 

 537 So. Dearborn Street. CHICAGO 

 Telephones: Harrison 8086-8087-8088 



Vol. XXXVII 



CHICAGO, MARCH 10, 1914 



No. 10 



^^^^^^^^^^^^^o^^^ro^ro^^^^^^^^^^S^^^^^^^^^^^5^™^^^2^^^^^^^^^^^^^^^^^3' 



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Review and Outlook 



General Market Conditions 



Two FACTOKS HAVE SERIOUSLY MILITATED against favor- 

 iil)le developments in connection with the lumber business in gen- 

 eral. One is the continued hesitancy of the railroads on account of 

 the postponement of the requested five per cent increase, and the other 

 is the horrible weather conditions which have prevailed all over the 

 country for several weeks past. This inclement weather has been felt 

 hv Inisincss in general and naturally the lumber business has been 

 ..ih' of the most serious sufferers. Factories have been shut down, 

 Imilding construction suspended, shipments tied up and the general 

 trade has been pretty much demoralized. In fact, considering the 

 peculiar winter which we have passed through, and its persistent fol- 

 lowing along into the spring months, it is no wonder that the lumber 

 trade has not been as brisk as had been expected. 



The business situation in general is maintaining about the same 

 status that has been in evidence for some little time. There is 

 gradually developing a strengthening of confidence in all lines, with, 

 however, continued tightness in the money situation. The result has 

 been slow collections. In fact, one big concern in Chicago says that 

 up to a couple of weeks ago bankers have been compelling it to pay 

 seven per cent, and have only come down to a more favorable level 

 within that period. The railroads have also been mighty slow pay. 

 This, of course, has had its own effect on business conditions, but as 

 suggested, the most serious factors have been the continued absence 

 of the railroads from the buying field, and the very serious weather 

 conditions. 



As to the fust of these factors there is very little hope for any 

 material change for some months to come. The discussion as it has 

 developed at Washington has brought out factors which make it uncer- 

 tain which way the Interstate Commerce Commission's decision wUl 

 go, and it is a <'ertain thing that the railroads will not become active 

 buyers until the question is decided one way or the other. Therefore, 

 it remains to be seen whether they have been basing their claims on 

 false statements or not. 



As to the second factor. It is reasonable to suppose that a more 

 favorable condition as to weather will make itself felt within a short 

 time. The result of this wUl be an opening up of building construc- 

 tion, resumption of normal transportation conditions, further activity 

 on the part of the factory trade, and a generally more favorable tone 

 in tho business situation. The lumber business of course is one of 

 the first to feel the results of bad weather, and such effect upon that 

 business is probably more serious than in any other line. 



There is very little change so far noted in the export situation, 

 although reports from abroad indicate that on account of curtailment 

 in shipments of late, in some cases this, curtailment having affected 



LIBRARY 



f,B>V YORI 



BOTANICA 



UaRUEH 



s<'vi'nty-five per cent of the noniial shipments, the stocks generally 

 abroad are being somewhat cut ilown. This, of course, does not hold 

 good in all cases, but is jjrobably true on a general basis. The promise 

 is that on account of this curtailment the situation will shortly im- 

 prove, and normal shipments, with a fair level of prices, will prevail. 



In the Liverpool market there is a continued over-plus of stocks 

 on hand, and the consignment shipments are continually in evidence 

 with their usual serious results, but on the whole a more favorable 

 indication can be expected from abroad within a reasonable period. 



Up to a short time ago northern operators in hardwoods had prac- 

 tically given up hopes of getting out any kind of a normal production 

 this year on account of absolute absence of possible logging con- 

 ditions. In fact, it was predicted that in some cases the production 

 would be cut down to twenty-five per cent of normal. However, dur- 

 ing the last month-and-a-half the condition has very materially 

 changed, and with excellent logging conditions, a very fair quantity 

 of logs has been gotten in. Wood crews have been sent back into the 

 woods and all operations are being pushed to the utmost, and the 

 result will be that while stocks will be considerably below normal, 

 there will be a good quantity of northern hardwoods gotten out. As 

 a proof of the fact that the situation as regards northern hardwoods 

 will be strong this year, many of the northern mill owners have 

 already sold out their entire cuts. 



With the rather less desirable condition prevailing in connection 

 with the southern hardwoods, this northern situation can be viewed 

 with satisfaction. The conditions will probably dovetail into each 

 other with the favorable result to the hardwood trade in general. 



Reports from the Memphis territory indicate that logging con- 

 ilitions are excellent for the most i)art there, and that there will be a 

 good run in mills around Memi)his and the Delta territory. However, 

 there lias been no report of any great over plus of southern stocks as 

 yet, or at least there is no indication that there is any over-plus, 

 which will have a tendency to result in the general breaking of the 

 market. Of course, this does not mean that there has not been price- 

 cutting, but these have as a general thing resulted from accumula- 

 tions on the part of concerns who were desirous of turning over their 

 stocks quickly, being in need of immediate funds. These cases, how- 

 ever, are isolated, but have had their effect upon the average market. 

 As a general thing, large stocks continue to be held by strong con- 

 cerns who continue to refuse offers below what they think the items 

 are worth. 



There has been a very apparent increase in the inquiry all over the 

 country for all items of hardwoods. This does not mean that actual 

 buying his increased, but indicates that the buyers have come to 

 realize that there is a probability of prices going up materially in 

 the near future, and they are using this means of feeling out the 



