48 



HARDWOOD RECORD 



February 



1921 



that, with the exception of a few firms whii-h have continued opera- 

 tions "regardless," there is nit the slightest disposition to put idle 

 machinery to work except in cases where logs must be converted 

 into lumber to prevent total loss of the timber involved. And the 

 majority of those who have timber which must be worked up are 

 regretting seriously that they are placed in this position. "We are 

 running our plant every day," said the head of one of the big 

 manufacturing firms in New South Memphis, "but conditions do 

 not justify the production of hardwood lumber and further increase 

 of present holdings, and I would not turn a wheel if I were not 

 forced to do so." This statement sums up the attitude of those 

 firms which have been caught with logs and which cannot, without 

 incurring an even greater loss, refuse to convert these logs into 

 lumber. 



The question naturally arises, what will these firms which are 

 now forced to operate do when they have salvaged their logs and 

 are no longer under the necessity of running their mills? The 

 answer is quite as simple as the question is natural. "We are 

 going to close down the very minute we get through cutting up our 

 logs, unless the market, in the meantime, shows material improve- 

 ment both as to demand and as to prices," declared one of the 

 larger operators here, and the same answer has been made to the 

 same question by a number of the more important producers of 

 southern hardwoods. Indeed, some of them go so far as to predict 

 that, without radical improvement in the general situation and in 

 lumber itself, there will be smaller production of southern hard- 

 woods 60 days hence than there has been at any time since the 

 jiresent depression manifested itself within the industry. 

 Production Conditions Bad 



As to immediate production: Prospects are not at all encourag- 

 ing. The South is now covered with a blanket of snow and sleet, 

 so far as the hardwood producing territory is concerned, and it is 

 practically impossible to make headway with logging or manufac- 

 turing operations. Just prior to the appearance of sleet and snow 

 there were extremely heavy rains over tlie greater part of the lower 

 Mississippi Valley. Flood conditions are beginning to make their 

 appearance in Tennessee, Mississippi, Alabama, Arkansas and 

 other southern hardwood producing States, and the time for spring 

 overflows is close at hand. To make a long story short, those firms 

 which are voluntarily operating their plants are encountering sub- 

 stantial difficulties in the way of weather, both in the woods and 

 at their mills, while those who are attempting to convert, in self- 

 defense, their present log supplies into lumber, are not escaping 

 the difficulties confronting the first-named group. If conditions, 

 marketwise, were normal, there would be a howl from one end of 

 the lower Mississippi Valley to the other about the serious curtail- 

 ment of hardwood output forced by present weather conditions. 

 Now, with the market so lifeless, both as to demand and as to 

 prices, scarcely a word is heard regarding operating conditions or 

 the results obtained from such operations as are being attempted. 



Stocks of hardwood lumber arc quite full. This is conceded. 

 Although only a small percentage of plants have been running dur- 

 ing the past three or four months, they have produced, in the 

 opinion of members of the trade here, quite as much lumber as 

 they themselves, together with all the closed plants, have shipped 

 during the same period. Stated differently, heavy curtailment of 

 output has not appreciably affected stocks of hardwood lumber for 

 the reason that shipments during the curtailment period have been 

 so light. Here is the way one lumberman sized up the situation: 

 ' ' We have not shipped more than fifteen per cent of normal during 

 the past three months. We have as good outlets as any of our 

 competitors. Granting that curtailment of hardwood output has 

 been eighty-five per cent during the past two months, it is easy 

 enough to see that, if those who are shut down are not shipping 

 more than fifteen per cent of normal, the firms producing fifteen 

 per cent of normal are keeping the stock account pretty evenly 

 balanced." 



Market Is Being Met 



While there are more inquiries, and while there is rather more 

 business passing, there is a greater disposition on the part of some 



of the larger manufacturers to "meet the market" than there was 

 eveu a month ago, and it is believed by the majority of tlie trade 

 that this attitude is responsible in a large measure for tlie fact that 

 the tone is so poor. Those unwilling to sell at ^^rices which others 

 are willing to accept can do nothing except fold their hands and 

 wait until there is a large enough demand to re-establish the mar- 

 ket on a somewhat stabilized basis. It was pointed out some time 

 ago that a large percentage of the "distressed" lumber on the mar- 

 ket has been absorbed and that "forced li(|uidation" was prac- 

 tically at an end. It is quite apparent, however, that somebody 

 is willing to meet the present low market, and, whether tliis repre- 

 sents distressed lumber, forced liquidation, sheer cussedness or any 

 other contingency, the result is just exactly the same. As long as. 

 somebody is willing to meet the market the fellow who is not dis- 

 posed to do so has not the slightest chance of defending himself and 

 is placed in position where the best he can do is "watch and wait." 

 This is perhaps responsible for the rather wistfully expressed 

 desire of one of the larger producers here to "fall asleep today 

 and wake up a year or so from now" in order that he might escape 

 the "chafing against conditions" which is inevitable in the jirescnt 

 situation. 



Conference rates to the United Kingdom from snutlirrn ports, 

 have been reduced again, this time to a basis of "'i cents per 

 hundredweight for heavy hardwoods and to 90 cents for light hard- 

 woods. A short time ago, conference rates were reduced to 50 

 cents to the French and Atlantic range. Meantime traniii steamers 

 are available out of New Orleans for United Kingdom ports at 

 60 to 65 cents per hundred pounds. There are very few "takers" 

 of tramp steamship room, and, with business so small on the V)asis 

 of tramp steamer rates, some exporters here emphasize that it is 

 perhaps rather futile to anticipate appreciable movement of lum- 

 ber to Europe at the conference rates, which, while lower than here- 

 tofore, still carry a large premium over the farmer. Some export 

 business is being done, but it is extremely light and the majority 

 of exporters believe that something more than reduction in ocean 

 freight rates is necessary to insure better business with Eurojje. 

 They hold that there must be a marked change f(>r the lietter in 

 fundamental industrial and financial conditions in the countries 

 of Enrope. Some are looking forward hopefully to the conference 

 at London between the allies and representatives of the German 

 government, to the possibility that the debt of England, France 

 and other allied countries may be funded into long-term obliga- 

 tions, and to other factors in the making for improving conditions 

 abroad. It is generally conceded, however, that, until something 

 is really accomplished in the direction of fundamental improxe- 

 ment, export business in southern hardwoods is likely to continue 

 small. 



Chicagoans Want to Utilize Cheap Lumber 



The low price of Uiiiib.er as compared to otlier Imilding mate- 

 rials may result in the construction of thousands of frame houses 

 in Chicago within the next few months. Bealiziug that present 

 lumber values offer an unusual opportunity for the Chicagoan of 

 moderate means to build a home, and thus escape the inordinate 

 greed of the typical Chicago landlord, the union carpenters have 

 started a movement to have fire restrictions suspended in certain 

 specified areas of the city so that frame structures may be erected. 

 The areas specified are prairie and other sections, west and south, 

 in which there is a great deal of vacant property at comparatively 

 low prices. 



At the request of the carpenters one of the aldermen in the 

 Chicago City Council introduced a motion on Feb. 18 providing 

 that the building committee of the council and the building com- 

 missioner select areas now within the fire limits, in which fire 

 restrictions may be suspended, so that the homeless may take 

 advantage of the falling price of lumber to build cottages. 



This motion carried. Mayor Thompson, who was attending the 

 session of the council, said iiY reference to the motion: "I have 

 ueen told that the price of lumber has been reduced 50 per cent by 

 one concern." 



