24 



HARDWOOD RECORD 



October 25. 1921 



Michigan Hardwood Producers Meet 



Gathering of Association at Grand Rapids Develops Fact of Improved Conditions 

 in that Group of the Industry; Wilson Compton Addresses Meeting 



J. C. Knox, Secretary for Fourteen Years 



Under the happy auspices of prices that 

 have turned the corner of depression and are 

 rising, and with nearly every firm in the 

 membership represented, the Michigan 

 Hardwood Manufacturers' Association held 

 its fall meeting in the Pantlind Hotel at 

 Grand Rapids, Mich., on October 20. 



The spirit of the meeting was decidedly 

 optimistic and confident. E. M. Holland of 

 the Curtis-Holland Lumber Company, chair- 

 man of the Market Conditions ' Committee, 

 said that the production of northern hard- 

 wood and hemlock lumbers had been reduced 

 65 per cent and that no increase in this per- 

 centage could be expected before January 1. 

 Buyers, therefore, will have to cover all their 

 demands for these woods, between now and 

 that date, out of the present stocks. He 

 reported an advance in tlie prices of mer- 

 chantable hemlock and also of hardwood 

 culls. The latter advance, he said, was from 

 $8 to $19 per thousand, this depending on 

 the mill and its accessibility to the market 

 in which stock was sold. 



Mr. Holland read from Babson 's latest 

 report on lumber conditions, to show that the lumber price read- 

 justment is culminating, that prices at the mills are "low enough," 

 and in a great many instances below the cost of production; and 

 that the lumber market is in a stronger condition now than it has 

 been for many months. Production, he quoted Mr. Babson as say- 

 ing, has been lower in 1921 than during any other like period in 

 the "modern history of the lumber industry, and production is 

 decreasing still. 



The potential demand for lumber is now the greatest ever known, 

 Babson said further, but the situation hinges largely on transporta- 

 tion. Rates on lumber, he said, must come down, for while at 

 present mill prices on lumber are attractive, the disproportionately 

 high freight rates make it almost prohibitive in such markets as 

 New York, and artificially depress demand everywhere. 



Babson advised, in conclusion, that consumers of lumber should 

 begin to buy now for 1922 account, whenever rates will permit of 

 this being done. In situations where the freight rates are too 

 exorbitant to permit such purchases, preparations should be made 

 to buy immediately rates are reduced sufficiently to permit this. 

 While Mr. Holland's report was in its total effect very optimistic, 

 he did regret the fact that southern woods have been replacing 

 northern woods in the adjacent markets to an "alarming degree." 

 He said also that northern prices had been permitted to fall lower 

 than southern prices had been obliged to go, and that southern pro- 

 ducers have liquidated their stocks in the northern markets, and 

 they have the dollars while the northern operators have the stock. 

 He said his committee believed in keeping in close touch with the 

 movements of competitive woods. 



Reports Favorable Conditions 



Statements made in tlie quarterly report of J. C. Knox, secretary 

 of the association, shed further light on the improved condition of 

 the Michigan hardwood lumber industry. These statements were 

 as follows: 



October 1 we sent out a questionnaire in regard to average mill, yard 

 and woods wages and found that o£ the thirty-six mills reporting twenty- 

 two were down in mills and woods. Nine were running about normal 

 and five were operating in woods or in the mill. This condition will 



account for the decreased production tor the 

 month of September, which, no doubt, will lie 

 repeated in October and may follow through 

 the year. 



Stocks ; In comparing our report today with 

 that of one year ago there are some features that 

 are encouraging. While the total stocks sold and 

 unsold are considerably larger, yet the volume has 

 been decreasing since July, 1921, and when you 

 compare the report of today with that of Septem- 

 ber you will find that the net stocks on hand have* 

 (leiTcased nearly 13,000,000 feet in hardwoods 

 and 0,000.000 feet in hemlock in thirty days. 



The recent sales indicate a larger amount of 

 both hardwood and hemlock to move than for a 

 considerable period. 



Our report comparing production vs. shipments 

 for the first nine months of 1920 and 1921 show 

 a reduction in the production of 27 per cent, and 

 in the shipments 4G per cent, and we are looking 

 fiirwanl to the time when the balance will be on 

 tin; other side of the leilger. 



BaHroad Freight Rates 



Secretary Knox also had an interesting 

 statement to make relative to the railroad 

 rate situation. He said: 



There is no question but what you are paying 

 a large premium in the transportation of your 

 lumber to the consuming markets, as weil as on 

 every commodity that you use. There are rumors afloat that the railroads 

 themselves would make a voluntar.v reduction in their freight charges, but 

 "we're from Missouri" and will have to be shown that this is tlieir 

 intention. 



Michigan freight rates are on an abnormally high basis (higher than 

 almost any state in the Union) and something must be done to reduce them. 

 We have endeavored to obtain a reduced rate on lumber from all Mich- 

 igan points to Pacific Coast ternnnals somewhat in line with the rates 

 charged in the opposite direction. We attended hearings before the state 

 comndttee of the Transcontinental Freight Bureau for this purpose, but 

 as yet have not bei'n advised that it is their intention of making anj' 

 reduction in tlieir westlioinni rates. The railroads themselves are having 

 their troubles and are threatened with a strike Octolier 30 on account of 

 reduction in the wages of their employes, and while during a strike both 

 the railroads and the employes suffer, yet they bring additional suffering 

 to the great .\merican public. We are trusting that the strike may be 

 averted and railroad rates, wages and all concerned be brought back 

 to normal. 



President Barden Presides 



Tlie meeting was presided over by F. O. Bard<'n of Boyne City, 

 Mich., who carried it along with a fine poise and vigor. In the 

 absence of C. A. Bigelow, chairman of the grading rules committee, 

 who is now in Europe, President Barden had something to say con- 

 cerning the grade of selects. He deplored the fact that some of 

 the members of the association pay attention to this grade, while 

 other.s do not. "This grade adds value to the product of our logs," 

 he said, "and inasmuch as it is provided for in our rules, I should 

 like to see the members hew closer to the line of the rules and use 

 this grade. ' ' 



The principal speaker of the day was Wilson Compton, secretary- 

 manager of the National Lumber Manufacturers' Association, who, 

 coming fresh from contact with those affairs in Washington, 

 brought a most interesting report of Federal forestry and taxation 

 legislation and the rehearing of the American Hardwood Manu- 

 facturers' Association Open Competition plan case before tlie 

 Supreme Court of the United States. 



As regards forestry legislation, Mr. Compton gave the meeting 

 the latest information on the Capper and Snell bills, contrasting 

 the former as "confiscation" with the latter as "co-operation." 

 {Continued on page 27) 



