Octolior 10, 1915. 



It needs only a glance at tlm reports coming from points in Mis- 

 sissippi and Arkansas to show that hardwood lumber is being pro- 

 duced on an increasing scale as compared with even a short time 

 ago. Mills which have been out of commission from three to twelve 

 months are resuming operations, while some of those which have 

 been running steadily are now increasing, or have recently increased, 

 their hours. There are a few mills which are still closed down and 

 there are some which are working on limited schedules, but the sum 

 total of lumber now being produced is substantially heavier through- 

 out the entire Memphis territory than even a month ago. This is 

 admitted by hardwood lumber manufacturers themselves and is also 

 borne out by known developments. 



It may also be noted that, coincident with this gain in manufactur- 

 ing operation, there is also decidedly more activity in getting out 

 timber. Logging during the period from August 1, 1014, to approxi- 

 mately the same date this year, was conducted on an exceedingly 

 restricted scale because of the limited outlets for lumber and be- 

 cause of the unprofitable prices obtainable therefor. For several 

 months after the war began, practically no logs were got out and 

 old stocks were almost, if not quite, exhausted. When business be- 

 gan to improve slowly owners of stumpage cut logs as they were 

 needed but, r.ith rare exceptions, they did not attempt to stock up. 

 This policy was followed until the beginning of the summer when 

 heavy orders were received from Europe and when domestic busi- 

 ness began to expand. Since that time logging has been a little 

 more free and now it is more nearly normal than at any other time 

 since the war began. Convincing evidence of this is found in the 

 statement of an official of the Valley Log Loading Company that this 

 firm is now loading twice as much lumber for Memphis and other 

 milling points as it did a month ago. It loaded 375 cars in August 

 and approximately 750 in September. October promises to sliow 

 a substantial gain over the past month, since, as already suggested, 

 logging operations are being conducted on an increasing scale. 



There are two fundamental causes of this renewed activity in 

 logging operations: First, the better demand for southern hard- 

 woods in domestic channels and, second, the decided reduction in 

 lumber stocks throughout the hardwood region of which Memphis 

 is the logical center. It is conceded, in a spirit of frank apprecia- 

 tion, that both distributors and consumers of lumber throughout the 

 ^ountry are buying more freely now than for a long while and 

 that the aggregate business, while below the period preceding the 

 war, is slowly approaching normal. Good crops, abundance of money, 

 high prices for cotton and all cereals, which must necessarily in- 

 crease the purchasing power of all ultimate consumers of lumber 

 and lumber products, are given as the principal factors contributing 

 to the larger demand which is expected to show still further expan- 

 sion this fall and winter. Meantime, increasing shipments of lumber 

 have impaired holdings at many points so that stocks are consider- 

 ably broken, particularly in some of the items which have been in 

 active request from England and her allies. The large hardwood 

 manufacturing companies still have pretty full stocks because, in their 

 case, production has kept pace with shipments. But the small mills, 

 ■which before the war produced a considerable percentage of hard- 

 wood lumber manufactured in the South, have found it impossible 

 to finance their operations, with the result that stocks outside those 

 in the hands of the stronger firms are almost nil, and certainly neg- 

 ligible. The head of a wholesale firm at Memphis said recently 

 that he was forced to do one of two things: Either finance the 

 operations of small mills and take their entire cut or go in the open 

 market, buy logs and have these sawed at custom mills. He asserted 

 that the wholesaler who depends on being able to buy lumber in 

 the interior with a view to reselling it at a profit is practically out of 

 business because of the absence of stock in the hands of smaller 

 mills which have heretofore contributed most of the lumber on which 

 wholesalers have worked. He pointed out that the stronger com- 

 panies which had stock were able to dispose of it in the open 

 market to as good advantage as the wholesaler and that they were 



unwilling, or at least found it unnecessary, to sell at prices that 

 would allow the wholesaler a profit on his operations. Thus, while 

 stocks in the hands of the larger interests may be quite full, this 

 lumber is not pressing for sale and the bargain hunter in the lumber 

 field is consequently finding his area of successful operations much 

 restricted. 



Perhaps the most discouraging phase of the present situation, 

 from the standpoint of both the manufacturer and wholesaler, is the 

 irregularity of the flow of orders. Large inquiries, followed b)' good 

 bookings, come every now and then. But these periods give way 

 in turn to others during which inquiries are small and bookings are 

 correspondingly reduced. This has been characteristic of the southern 

 hardwood lumber industry for some time, but some encouragement 

 is extracted from the fact that these periods of activity are coming 

 a little closer together and that those of comparative dullness are 

 getting further anil further apart. 



Just now there is a good demand for hickory from manufacturers 

 of automobile and other vehicle wheels. Ash is going abroad in 

 large enough quantities to absorb offerings at reasonably good prices. 

 Plain red oak sells readily in the higher grades but plain red in 

 Xo. 1 common is reported slow. Plain white moves fairly well. 

 There is a good call for both red and white quartered oak in the 

 higher grades but the lower are generally slow. There is a good 

 demand for sap gum in both the higher and lower grades while low 

 grade Cottonwood is moving freely into the plants of box shook 

 manufacturers. Inquiry for red gum is increasing as more of this 

 is going into the manufacture of furniture and cabinet articles and 

 as there is increasing demand for interior trim made of this mate- 

 rial. Cottonwood in the higher grades is rather slow while cypress is 

 without special feature. Prices are in some instances slightly better 

 than a short time ago. Meanwhile the tone of the whole market 

 shows imjirovement in response to the larger demand and to the 

 somewhat broken condition of stocks. 



Protest Against Dock Toll 



A strong protest has been made by the National Lumber Export- 

 ers' Association against the proposed imposition, by the Board of 

 Dock Commissioners of New Orleans, of certain toll charges on lum- 

 ber and other commodities passing over the public wharves there. The 

 protest was acted upon at a meeting of a special committee held Sep- 

 tember 27. The special committee included Elliott Lang of E. J. 

 Darnell, Inc., Memphis, Tenn., chairman; P. B. Robertson, Anderson- 

 Tully Company, Memphis, and George Land, Lamb-Fish Lumber 

 Company, Charleston, Miss. Secretary J. McD. Price of Baltimore 

 sent out the resolution to the members of the association and to the 

 dock commissioners of New Orleans. 



The proposed toll amounts to five cents per ton of 2,000 pounds on 

 all cargo passing over the New Orleans docks, effective October 15, 

 1915; and bills of lading shall not be issued until the tolls have 

 been paid. This is a heavy charge on lumber and may amount to ten 

 cents a thousand feet. The result will probably be that export lumber 

 shipments will be diverted from New Orleans, since other ports do 

 not collect this special toll. 



Some of the box factory folks who didn't bu.y more lumber 

 sooner are probably now wishing they had — and some day soon the 

 furniture trade may be wishing the same thing. 



One of the compensations that come from carrying hardwood 

 lumber on the millyard till it is thoroughly dry is a reduction in 

 the freight cost. 



One trouble with good hardwood inspectors is the same trouble 

 we have with male stenographers, and that is when they become 

 really good at their calling they are often worth more for some- 

 thing else. 



