Ootobrr 



1920 



HARDWOOD RECORD 



19 



Why Lumber Values Must Recover 



An address calculated to give the buyer of lumber a more sym- 

 pathetic understanding of the lumber industry was delivered by 

 Edward Hines, president of the Edward Hines Lumber Company of 

 Chicago, before the fifth annual convention of the National Asso- 

 ciation of Purchasing Agents at the Congress Hotel in Chicago on 

 October 12. Mr. Hines gave a brief history of the development of 

 the lumber industry in this country from the crude efforts of the 

 Pilgrim Fathers to the great modern operations of today. He 

 visualized the growing scarcity of timber, the tremendous increase 

 in production and delivery costs, and the remarkably augmented 

 demand. He concluded with a survey of the huge requirements in 

 lumber which may be expected from the buildiiig, railroad, farming 

 and other industries during the next few years, demonstrating why 

 lumber values are certain to recover from the present slump and 

 why they must reach and maintain a substantial level in the future. 

 The method in which Mr. Hines developed his theme gave the pur- 

 chasing agents much material for thought. In part the address is 

 as follows: 



The lumber iuilustr.v actl lumbermen have been repeatedly luisuuder- 

 stood and often criticLsed for the devastation of our forests. It is quite 

 true that eveiy time a tree is cut down it reduces the supply of timber In 

 the United States by the amount of feet boartl measure in the tree 

 destroyed. Every one, it would seem, must realize this, and would also 

 understand that the lumbermen would never go to the trouble of cutting 

 down the forest vniless the industries and general requirements for lumber 

 demanded and needed the product of the trees — lumber for their progress 

 and sustenance. 



It would also seem as though every one ought to realize that if we are 

 to have land, which is better adapted to agriculture so used that to make 

 the land productive the forest must first bo removed. Yet for a genera- 

 tion, for some unaccountable reason, the lumbermen in many localities 

 have been held up to public scrutiny as an enemy to development because 

 they cut the forests down and made the saw logs into the lumber which 

 has always been so much needed throughout the years of our industrial 

 and social development. In the earlier history of the great states of 

 New Yorl?, Pennsylvania, Ohio and Indiana the beautiful walnut and oak 

 timber was destroyed to make way for the farmer that he might till the 

 soil and secure his living. These splendid cabinet woods in after years 

 occupied an important niche in the commerce of our inclu.stry and today 

 are among the choicest and highest priced woods in the world. 



I am not defending needless waste of timber nor inefficiency wherever 

 it may have existed. On the contrary, through a misconception of facts 

 the lay mintl has not fully comprehended our situation or has failed to 

 give proper and deferential consideration to our problems. It is mani- 

 festly unfair to omit to give credit for the faithful performance of the 

 work that is essential to a public need simply because our natural resources 

 ma.v have been depleted in the process of sen-ing such needs. 



The present moderately high prices of lumber are doing more than any 

 single factor to eliminate waste. WTien lumber was selling for a great 

 deal less than it now brings in the markets, and many times for less than 

 it was intrinsically worth, which covered largely the interval from the 

 earliest beginnings of the industry down to the year 1919, the operator 

 could only afford to bring the best logs of the tree from the forest to be 

 manufactured into lumber. The other less valuable logs of the tree were 

 left to rot and waste. Now that prices are fairly remunerative, the land 

 can be cleared down to the smaller top logs that may include logs as small 

 as four inches in diameter at the smallest end. 



So keenly concerned has the manufacturer of lumber become in the 

 conservation of his timber that today comparatively little refuse is burned 

 or destroyed, sizes down to a piece one by one twelve inches in length 

 being utilized. 



Fair Prices Benefit All 



This closer utilization of the waste material is the greatest measure of 

 conservation ever put into effect, and it is the direct result of the fact 

 that the public is now paying the lumber manufacturer somewhere nearly 

 the actual worth of his product. This benefits both lumberman and the 

 public. The lumberman, because he gets what he is entitled to, a fair 

 return on his investment. The public because the full utilization will 

 increase the life of the forests. As to prices, it might as well be realized 

 that while there has been a drop in the prices in some grades of lumber 

 this situation is but temporary. The general higher average price of 

 lumber must remain more nearly up to the present price levels. Every- 

 thing which the lumberman uses in his business in the way of supplies, 

 materials, etc., to say nothing of all labor costs, have risen in price more 

 rapidly than lumber. 



The lumber industry has been censured in some instances both orally 



and through the medium of various periodicals for a seeming lack of 

 interest in the proposition of reforesting devastated and cutover lands. 

 The contributing causes for any apparent indifference on the part of the 

 manufacturer of lumber in this really Important matter may first be 

 attributed to a lack of cooperation on the part of the states and com- 

 munities interested in helping, first, to relieve the tax cost of carrying 

 timber and to eliminate them entirely, and secondly, to bear their portion 

 of the burden of the cost of reforesting the land and patrolling the young 

 timber to prevent disaster from the elements. There is no question but 

 that something substantial should be done looking toward the scientific 

 management of reforesting many of the cutover lands in Michigan, Wis- 

 consin, Minnesota and in many of the southern states as well. Until such 

 time, however, as there is complete coiiperation between the Federal gov- 

 ernment and the state and community governments with the owner along 

 scientific hues the undertaking cannot be successfully carried on. Today 

 the tax on timber is continuous and runs for the entire stand of timber, 

 where the tax on farm products is assessed when the crop is marketed, 

 thus enabling the farmer to realize on his crops more quickly, and to pay 

 his taxes out of each year's crop, generally after realizing on same ; whereas 

 the timber owner can only realize a small proportion of his greater outlay 

 for taxes each year, he harvesting his crop only once as compared to the 

 farmer year upon year. Hence you can appreciate that timber can be 

 held only a reasonable period, as the interest, taxes and carrying charges 

 on the timber accumulate rapidly and to such an extent as would entirely 

 consume all profit. The great state of New York is the only common- 

 wealth In the Union that has seen fit to look at the proposition of refor- 

 estation along sane and advanced lines. A measure has been provided 

 through legislative action whereby lands used for reforestation are exempt 

 from taxes, which naturally has encouraged reforestry. There is no ques- 

 tion but that in the future in those states where the timber has been cut 

 will evince the same interest that now is shown In the Empire state, and 

 a great deal of the land I have referred to will be reforested. You can 

 readily understand why the various states having waste land not adapted 

 for agricultural purposes should seriously consider granting such con- 

 sideration and ottering such Inducements in the way of financial aid and 

 exemption from taxes as will encourage individuals and institutions now 

 holding these lands to engage in the undertaking of reforesting them. 

 To demonstrate that lumbermen are not causing needless waste In the 

 manufacture of lumber you as business men can easily appreciate that no 

 executive today at a time where elflciency counts for so much is not keenly 

 alert to .save everything that can be marketed, and naturally the better 

 the prices secured for his products the greater the inducement to conserve 

 and save wherever he can. This has been specially demonstrated in the 

 method of manufacturing ; during the early period, when we used a cir- 

 cular saw, it took out fully a one-quarter inch saw-kerf, but this has been 

 practically replaced by the modern hand-saw, which takes but an eighth of 

 an inch, and this, in itself, makes a wonderful saving in the way of pro- 

 ducing more feet of lumber from the log. Practically nothing now goes 

 to the sawmill burner in the North ; everything is being utilized, inch and 

 thicker, three inches and wider, one toot and longer, in box lumber and 

 for other purposes ; and everything in 1x1 inch, 18 inches and longer for 

 other various purposes, such as curtain rolls, mop handles and so forth. 

 This saving will be followed in the south and west as values advance and 

 warrant doing so. 



(Continued from page 18) 

 which can not even be "junked" are an indication that the owner 

 has not gone behind the scenes, but has allowed these figures to 

 convince him of the advisability of using tractors. 



"Pigs is pigs," but there are tractors and tractors, and the matter 

 of purchasing such is a great deal more importapt than is usually 

 considered. The various models, varieties, types-'and makes offered 

 on the market seem to indicate a policy-' further and further from 

 standardization. The famous "57 Varieties" does not seem to be 

 confined entirely to "pickles, "but can also now be applied to 

 tractors. 



Every tractor has its use and every model, type and make has its 

 own particdlar line of duty, therefore, it behooves every sawmill 

 owner to carefully analyze his requirement, and the work which he 

 intends to do, then apply the mechanical possibilities of each differ- 

 ent make of tractors offered him. 



The next article, entitled "Choosing the Right Tractor," will 

 cover this subject and will appear in the next issue. Its pur- 

 pose will be to assist all who are interested in securing the 

 a'igiit unit; the one most apjilicablo to the work intended. 



