JSovember 23, 1920 



HARDWOOD RECORD 



17 



Big Order Leads Export Revival 



The reporti'd booking of an order for oOjOOOjOOO feet of hardwood 

 lumber by a Memphis firm for shipment to Europe is the chief 

 topic of conversation wherever two or more lumbermen are gath- 

 ered together. There has been, and still is, a vast amount of 

 secrecy about this order. The firms booking it refuses to make 

 any stat<>n!ent in regard thereto and do not desire their identity 

 disclosed. It is, therefore, very difficult to confirm the report or to 

 secure any definite information in regard thereto. 



It may be stated, however, on the basis of the best information 

 obtainable, that German bankers in New York are financing the 

 transaction with the proceeds of the sale of German securities still 

 available in the United States, and that 100 cars, amounting to 

 approximately 1,500,000 feet, will be shipped in the near future. 

 When, if at all, the remaining 97 per cent of the quantity of lum- 

 ber said to be involved in the order will be shipped is conditional 

 on how the first 100 ears turn out and on how the various interests 

 connected with the transaction fare on this initial shipment. It 

 would, therefore, seem that the order is a conditional one, and it is 

 generally conceded that some time must elapse before additional 

 shipments are made after first lot of lumber has gone forward. 

 Three firms are supposed to fill the order or such portions thereof 

 as actually materialize. 



It is stated in some quarters that there is more involved in the 

 order, or that its potentialities are greater, than is suggested by 

 the frank skepticism of the majority of the trade regarding it. 

 That there is a vast amount of skepticism regarding the order, so 

 far as its actuality or its potentiality is concerned, is true. The 

 majority of Memphis lumbermen insist that there is very little in it, 

 but there are several members of the trade who declare that there is 

 a great deal more in the order, so far as its genuineness and 

 authenticity is concerned, than is credited by the skeptics. It would 

 therefore seem that the future must disclose what there is in the 

 transaction. 



It is knoTvn that a representative of the German syndicate which is 

 to receive the lumber is now at sea en route to this country, to person- 

 lUy handle the details of the shipment of the remainder of the 50,000,- 

 000 feet with the Memphis holders of the contract. The order is for 

 No. 2 common and better oak and No. 1 common and better red gum. 



In the meantime, announcement of this order, without any quali- 

 fication whatever, by the Commercial Appeal has intensified rather 

 than lessened the problems of hardwood lumber manufacturers in 

 this part of the country. The Commercial Appeal circulates through- 

 out the southern hardwood producing area, and every millman 

 and every owner of timber has accepted the order as genuine and 

 has used it as a reason to protest against any further cut in the 

 price of either logs or lumber. 



Other Export Bookings 



Announcement of the booking of this order has tended to con- 

 centrate the attention of the trade on the export situation and, 

 whatever may be involved therein, the fact remains that the export 

 market is showing decided signs of revival, and that considerable 

 quantities of hardwood lumber are being booked for shipment over- 

 seas. R. L. Jurden of the Penrod-Jurden Company, who returned 

 November 19 from Philadelphia, New York and other eastern 

 centers, reports that his firm has booked 30 car loads of gum for 

 immediate shipment to Havre, France, and that practically one- 

 half of this quantity is now moving to the port for loading. The 

 Panola Lumber & Manufacturing Company has recently booked, 

 according to C. M. Kellogg, an order for 400,000 feet to be shipped 

 to the United Kingdom. This is to consist of plain oak. The 

 Tallahatchie Lumber Company, according to W. H. Dick, vice presi- 

 dent, has accepted an order for 265,000 feet of tupelo and cypress, 

 which is to go forward at once. In fact, he says that part of this 

 lumber is now moving. He further informed the correspondent of 



Hahdwood Becord that, if the necessary stock can be secured, the 

 quantity involved may reach 1,000,000 feet or more. Mr. Dick, 

 however, declined to say to what foreign port this lumber is moving 

 or will move. Another Memphis firm has secured an order for 

 100,000 feet of ash from England, while the Belgrade Lumber Com- 

 pany has recently secured orders for 85 cars of hardwood lumber, 

 part of which will go for export. Other transactions are understood 

 to have been made, but these are all that can be confirmed at 

 this time. 



Mr. Jurden said today that there is a very large export busi- 

 ness in southern hardwoods pending, and that he looks for a dis- 

 tinct revival of foreign business in the immediate future. He has 

 other business in negotiation in addition to the 30 cars his firm is 

 now shipping to Havre, and he says there is notable activity on the 

 part of lumber interests at Philadelphia, Baltimore, New York and 

 other eastern ports. Other prominent members of the trade here 

 are in the East now, including John W. McClure of the Bellgrade 

 Lumber Company, and William Pritchard of the Panola Lumber & 

 Manufacturing Company and the Pritchard & Wheeler Lumber Com- 

 pany. J. H. Towushend, president of the American Overseas For- 

 warding Company, too, has been in New York within the past ten 

 days in connection with pending export business. This agency is 

 handling a considerable percentage of the forwarding, booking and 

 insuring of cargoes of hardwood lumber and other commodities 

 going to Europe, and maintains an extensive quotation service on 

 ocean freight rates. It may be noted, in this connection, that Mr. 

 Townshend reports the booking of more business for export in hard- 

 wood lumber than at any time since the company was organized 

 in the summer of 1919. This is accepted by the trade here as strik- 

 ing evidence of the revival of overseas business. It may also be 

 noted that a.nother prominent lumberman, who does not care to have 

 his name used, is authority for the statement that more business 

 has been booked for overseas markets during the past two or three 

 weeks than during any sixty-day period within the entire year. 



Overseas Beat Domestic Prices 



While it is difticult to secure positive or specific information 

 regarding prices on export shipments, it can be stated authorita- 

 tively tliat these are materially higher than those offered by 

 domestic interests. One of the firms which is now making ship 

 ments to Europe is authority for the statement that it is receiving 

 approximately $25 per thousand more for lumber being sent to 

 Europe than it is offered for lumber by domestic buyers. The firm 

 securing the 50,000,000 foot "order" is quoted as saying that 

 (Continued on page 22) 



(Continued from page 15) 

 ment of by-products and other steps to bring about the most effec- 

 tive use of the nation's forest resources. 



4. Provision for a study of forest taxation, to assi^ states in 

 devising tax laws which will encourage the conservation and 

 growing of timber. Also of methods of insuring against forest 

 losses by fire. 



5. Provision for more rapid replanting of the vast areas of 

 denuded lands within the national forests. 



6. Appropriation of $10,000,000 a year for the purchase of lands, 

 which should be added 'to the national forest system, whether or 

 not on the head-waters of navigable streams, as such purchases are 

 now limited. 



7. Authorizing acquisition of similar lands by exchanges of 

 lands or timber when clearly in the public interest. 



8. Authorizing the addition to national forests of lands, now 

 in other' forms of government ownership, but found chiefly suitable 

 for permanent forest production. 



