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May 10, 1917 



Michigan Conditions Strong 



Exceptionally strong stock and price conditions were revealed in the 

 semi-annual meeting of the Michigan Hardwood Manufacturers ' Asso- 

 ciation held at the Hotel Statler, Detroit, April 26. The market re- 

 port, which' features these meetings, revealed astonishingly broken 

 stocks with a very significant decrease in the amount of unsold stock 

 on hand as compared to last year. Constantly climbing prices and the 

 outlook for uninterrupted strength in the whole hardwood situation 

 were proclaimed with unanimous voice. 



Michigan went on record as being strongly in accord with the grad- 

 ing rules recommendations for changes which would come up before the 

 convention of the National Hardwood Lumber Association in June. 

 It is certain that the voice of Michigan will be heard in all of its force 

 at the coming national gathering. 



After the roll call and dispensing with the reading of the minutes 

 of the previous meeting, Secretary Knox read an interesting review of 

 national and local developments as they affect lumbermen and help 

 to make lumber history. Secretary Knox said in speaking of general 

 business that there is hardly a branch of industrial or commercial life 

 in which the outlook for even better conditions than exist now is not 

 prominent. The report touched on various routine features of asso- 

 ciation work, and in referring to hardwood grading rules emphasized 

 the importance of attending the meeting of the National Hardwood 

 Lumber Association and recording all possible votes in favor of the 

 projiosed changes. It recommended serious examination of the claimed 

 justifications for the general advance of fifteen per cent in freight 

 rates which is now proposed by the big carriers of the country. 



The treasurer's report read by the secretary revealed a good finan- 

 cial condition. 



President W. C. Hull was told in answer to his request for reports 

 from the railroad and legislative committees that those bodies had no 

 formal reports to make. 



J. L. Morford, chief fire warden of the Forest Fire Protective De- 

 partment, gave a brief report in the absence of Chairman Lunden of 

 the forest fire committee. He said that this department will have 

 seven wardens in active service this year, each of them having had 

 from one to five years' experience. There was a conference on May 1 

 in which the program was outlined and the men started work on May 

 2. There will be considerable federal and state co-operation this year, 

 which will mean that extra warden service wiU be available and that 

 the protective work will be very much facilitated by the prestige 

 which this state and federal service offers. He said that everything is 

 promising for a season of greater usefulness. 



E. H. Rayburn, chairman of the employers' liability committee, said 

 that on account of helpful legislation which was secured to a consider- 

 able extent through the good offices of Senator Morford the association 

 members are safe from that standpoint for another two years. A vote 

 of thanks was extended to the senator by the association members. 



W. L. Saunders, chairman of the grading rules committee, said that 

 complete recommendations as to ehaaiges in grades to be asked for 

 northern manufacturers have been completed. He said that the com- 

 mittee has worked well and that the work has been done well, that the 

 committee of the National Hardwood Lumber Association met the 

 northern manufacturers more than half way and that it is now right 

 up to the membership of the Michigan association to back up its com- 

 mittee to the extreme limit of its voting power. He said that if the 

 Michigan members really want what they have been asking for they 

 must attend the Chicago meeting and without exception cast their 

 affirmative vote when the question of changes is up. He maintained 

 that tl'.cy will go through if supported but that they will not go through 

 if lukewarm support is extended by those who are most closely inter- 

 ested. On motion the committee was given a vote of appreciation for 

 its work, and the proposed changes were accepted and full support 

 pledged. It was decided that the next meeting will be held at Chicago 

 at the time the national meeting takes place and will be held jointly 

 with the gathering of the Northern Hemlock & Hardwood Manufac- 

 turers' Association. 



Suitable resolutions were read and adopted expressing the very keen 



—18— 



regret and sense of loss experienced by association members on ac- 

 count of the death of the late Walter D. Young, of Bay City. 



C. E. Abbott, chairman of the market conditions committee, pre- 

 sented the following report : 



Report of Committee on Market Conditions 



Our meeting was held -Vpril 25 at tbe Sherman hotel, ("hioago, where we 

 were in conference with the bureau of statistics and educational informa- 

 tion of the Northern Hemlock and Hardwood Manufacturers' Association. 



Since our general meeting in January your committee has held two 

 special meetings, reports of same having been mailed to all members. At 

 the special meetings \ve have not had the benefit of stock reports ; hence, 

 have only been able to estimate stock conditions and give you a report of 

 the existing market values based upon reports of sales and upon the infor- 

 mation which uur various committee members have had at band. It is to 

 be regretted your committee's function is only that of reporting as to values 

 on the day of Us nieeting. Many sales have been made based upon the 

 committee's report, which on today's market are not pleasing to the eye 

 when we look oyer our order books. 



We wish to emphasize that the committee's reports as to values are 

 what we find the values to be on the day of our meeting. Our members 

 should follow the market as closely as possible and not confine their asking 

 prices to what the committee reported the market to be today or last week. 

 All commodities are advancing in price from day to day and our members 

 must bear in mind that lumber is a commodity which is advancing in price 

 and no one can hope to get the market price unless he asks it. 



Stock Conditions 

 hardwoods 

 The total hardwood stock is 47,000;000 feet less on hand than one year 

 ago and 48,250.000 feet less of unsold stock than one year ago. 



No. 2 common and better hardwoods, compared with one year ago, show 

 as follows : 



Less on More on 

 hand. hand. Less unsold, 



M ft. M ft. M ft. 



Ash 245 . . 33 



Basswood 1.442 . . 1,84G 



Beech 5,907 . . 5,737 



Birch .- 2,900 . . 807 



Rock elm 70 569 



Soft elm 4,302 .. 3,083 



Maple 20.40S . . 15,675 



35,204 70 27,750 Not less unsold 



:!5,134 Net less on hand 

 No. ."J common hardwoods, compared with one year ago, show as follows : 



Less on More on Less More 



band, hand, unsold, unsold, 



M ft. M ft. -M ft. .M ft. 



.\sh 188 20:i 



Basswood 1,744 .... 2.(141 .... 



Beech 242 1,088 



Birch 2.022 86T 



Rock elm 195 46 



Soft elm 52 194 



.Maple 12,450 17,041 



14,382 2,511 21,573 1,107 



11,871 Net less on hand 20,406 Net less unsold 



With this condition confronting us, one of the features to consider Is, 

 how far will our present stock go toward supplying the demand. 



The 1917 estimated production of 363,411,000 feet reported April 1 by 

 49 members is 21.215,000 feet less than the same 49 members reported 

 January 1, and is 16,195,000 feet less than the same 40 members actually 

 produced in 1910. 



Shipments of No. 3 common and better hardwoods for the past six months 

 have exceeded the production for the same period by over 10,000,000 feet. 

 What would have been {he condition bad we been able to secure all the 

 cars we required to load out our orders? 



The past six months' production of hardwoods was approximately 75 

 per cent of the present stock on hand. 



No. 3 common birch appears to be the only item out of line, but when 

 we consider the small increase in this item and note the steady decrease In 

 quantity of No. 3 common maple, there can be but one result — the birch 

 will be wanted and at good prices, to the manufacturer who is willing to 

 sit quiet for a short time. 



HEMLOCK 



Hemlock stock on hand is 27,020,000 feet less than one year ago. and 

 there is 19,200,000 feet less unsold stock than one year ago. The produc- 

 tion for the six months past has been only about seven million feet In 

 excess of shipments, and tbe production for this period was approximately 

 80 per cent of tbe present stock on hand. 



The 1917 estimated production of 195,945,000 feet reported April 1 by 

 48 members is 6,230,000 feet less than the same 48 members reported Janu- 

 ary 1. This estimate Is about 15,000.000 feet more than the same firms 

 reporting produced in 1916. 



