July 25, 1915. 



CIIAHLES T. MITCHELL, 

 PRESIDENT. 



C. A. BIGELOW. 

 MEMBER MARKET CONDITION COMMITTEE. 



J. C. KNOX, 

 SECRETARY. 



' \;roiK^a;)5t::;iJj>;;^;iOim^i4m:;sTO» b^^ 



Tlie annual meeting of the Michigan Hardwood Manufacturers' 

 Association was held, contrary to usual custom, at Mackinac Island 

 at the Grand Hotel on Saturday, July 17, with a full attendance. As 

 this was the annual meeting the ofiBcers were elected for the coming 

 year. 



The enrollment of new meniber&was the first regular form of busi- 

 ness. The new: members who -were added were the Harbor Springs 

 Lumber Company, Harbor Springs, Mich.; Consolidated Lumber Com- 

 pany, Manistique, Mich.; Richardson & Avery Co., Raco, Mich.; 

 Hunter & Love Lumber Company. Newberry, Midi.; Michigan Forest 

 Products Company, Muskegon, Mich. ; South Shore Cedar Company. 

 DoUarville, Mich. 



Secretary J. C. Knox read his usual meaty report. Commenting on 

 the limiber cut, he said there were three fewer linns reporting than a 

 year ago ; and making a comparison of the production of the firms 

 reporting in July, 1914, and not in July, 1915, and those in 1915 

 -who did not report in 1914, there is a difference of about 1,500,000 

 feet in hardwoods and 10,500,000 feet of hemlock, more for 1914 

 than for 1915. 



The assessment on hardwoods shipped October 1, 1913, to October 

 1, 1914, netted $6,238.01. The treasurer's report shows a balance on 

 Tiand July 10 of $2,552.85 in the general fund and $2,950.36 in the 

 forest fire fund. 



Regarding the Forest Fire Department, Secretary Knox said that 

 just at the beginning of the patrol season former Chief Warden 

 Hickok resigned to accept service elsewhere. The forest fire com- 

 mittee and President Mitchell held a meeting at Gaylord soon after 

 and selected J. Lee Morford to fill this position until the eml of the 

 present season. 



The only regular committee report was that of the market condi- 

 tions committee, whic»h showed a slight tendency toward better con- 

 ditions. The report follows: 



Your Committee on market conditions submits tlic following report : 



A careful study o£ stocks on hand as of July 1, 1915, shows that in 

 spite of actual heavy curtailment, they are steadily on the increase on 

 almost all items. The hardwoods, No. 2 common and better, show a 

 slight decrease from last year, but the amount of unsold stock is greater. 

 We presume, however, that the stocks actually on hand are the truest 

 indication, for many of the stocks that were sold at this time last year 

 are still in the manufacturers' hands, which is only another demonstra- 

 tion of the fact that the proper method for the manufacturer to pursue 

 is to sell only for immediate shipment. He logs his own timber, cuts 

 ■his own lumber, pays his own taxes, as well as part of the farmers' ; 

 why not do his own speculating? 



At our last several meetings, we have been pointing out all the bright 

 spots we could Ijnd or imagine we could see and trying to think that 

 better conditions were just ahead of us, and at last they are "just around 

 the corner." .\s to just when we will turn the corner, one man's guess is 

 as good as another's, but. according to the law of averages, this time 

 cannot be far ahead. Reports of .sales indicate that a very fair business 

 has been done in the hardwoods. No. 2 common and better, by the rail 

 shippers and at profitable and almost satisfactory prices. In fact, 

 advances over our recommended prices have been secured by several of our 

 members, particularly on the grade of F. A. S. and the best judgment of 

 your committee is that F. A. S. are very firm in value and that reason- 

 able advances may be easily secured. rhis should, in a short while, 

 stimulate the sale of No. 1 common and bring about a much more satis- 

 factory condition. 



There is no denying the fact, however, that the lake cargo business 

 has been, to say the least, very dull. Little stock has moved and prices 

 have been cut in a number of instances. Most of this can be accounted 

 for, however, by conditions in Chicago. Chicago normally uses five per 

 cent of all the lumber manufactured in the United States and is the 

 market for fully seventy-five per cent of the stock manufactured by the 

 lake shippers belonging to our association, and on account of the 

 carijenters' strilse, has practically been cut off the market all year. This 

 strike has jnst been settled; building will be speedily resumed: yards as 

 a rule are carrying light stoclis and lumber will no doubt be wanted and 

 at once. The settlement of this strike alone should solve all the difficul- 

 ties the lake shippers have had to contend with and provide the oppor- 

 tunity for disposing of all surplus stocks. When the lumber begins to 

 move there will be little quibbling over price. The Chicago consumption 

 was away below normal ; it should be above normal from now on to the 

 close of navigation, and if it is, instead of there being too much lumber, 

 there will hardly be enough.. In the opinion of your committee, members 

 should not be too hasty in closing contracts. If the expected demand 

 develops, prices will advance rapidly. Already there are shortages in 

 certain grades and varieties. Within the past week numerous inquiries 

 are out for stocks for September delivery, and there is already a noticeable 

 disposition on the part of several of the yards to stock up on the basis 

 of some of the low prices that have been offered by some of our members. 

 There are yet four and one-half months of lake navigation loft in 1015 

 and a great deal of stock can be moved in that time, and it is only a 

 question of a little nerve on our part to see that it moves at a price 

 that pays us a profit Instead of a loss. 



We bav? played a waiting game now for eighteen months. We have 

 faithfully curtailed production all wo possibly could. As a rule, a large 

 percentage of our membership have had the nerve to pile up their stocks 

 and sell only at right and proper prices,' and have not stampeded on 

 account of a few sales at ruinous prices. Having pursued these policies 

 for the past eighteen months, we feel that they are not going to weaken 

 now with business right in sight. If the trade is going to want our 

 lumber at all, it will be willing to pay the prices as recommended in our 

 last report, for they are just and reasonable, not excessive in the least, 

 and it is the earnest hope of the committee that each member adhere 

 firmly to the list on all items, fully believing that these prices can be 

 realized, aud within a short while. Please bear in mind that there is 



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