Copyright. The Hardwood Company, i 9-' i 

 Published in the Interest of the American Hardwood Forests, the Products thereof, and Logging, Saw 

 Mill and Woodworking Machinery, on the 10th and ZSth of each Month, by 



THE HARDWOOD COMPANY 



Edwin W. Meeker, Vice Pres. and Editor 

 H. F. Ake, Secretary-Treasurer 



Seventh Floor Ellsworth Building 

 537 So. Dearborn St., CHICAGO 

 Telephone : Harrison -8087 



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Vol. L 



CHICAGO, MARCH 25, 1921 



No. 11 



U ' JU'it.Jf. 



Review and Outlook 



SOTANICaI. 



General Market Conditions 



ON ACCOUNT of the extremely spotty condition that still 

 holds, it is probably wise to refrain from expressing too 

 definite views one way or the other as to the tendency of the pres- 

 ent markets. Apparently the somewhat increasing business as 

 reported in the last issue has again eased off, although improved 

 sales have still been recorded from a sufScient number of direc- 

 tions to give proof of their validity. Hakdwood Record still 

 maintains that the discernible improvement noted in recent issues 

 will continue to hold its own, showing eventually a gradual im- 

 provement. 



One point that must be borne in mind is that it is unwise to 

 make a blanket definition as to improvement or further slackening 

 in business, for what might hold in one line might not hold in 

 another. For instance, certain types of products are utilized in 

 the direction where the prevailing product is more or less in the 

 nature of a luxury, possibly of high price. Here it must be ex- 

 pected that slowness of activity will prevail longer than in other 

 fields, where the product is of the more essential character. In 

 general, though, furniture sales are developing with a rather 

 disappointing slowness. But the shipping out of a certain measure 

 of product continues, and in view of the absolute absence of buy- 

 ing in recent months, stocks of lumber are gradually being worn 

 away with gradual replacement here and there. Furthermore, wise 

 buyers who are financially able are showing their wisdom through 

 stocking up at present figures, it being obvious that prices on 

 hardwoods can not possibly go lower, as they are now in many items 

 considerably below actual cost. In fact, the log run product in 

 most woods is today netting the producer a considerable loss. This 

 is not a guess, but a statement borne out by facts based on actual 

 cost figures of responsible and reputable producers. 



The stagnation in the business and unwillingness to cut up non- 

 replaceable timber .to be sold at a loss, is bearing more and more 

 heavily on production. It is true, especially in the South, that 

 virtually 100 per cent of the lumber now being produced is the 

 result purely of the accumulation of logs which must be cut up to 

 prevent total loss. Therefore, without some substantial improve- 

 ment in the near future it may be anticipated that even what is 

 remaining of producing capacity will be s^iut off as soon as this 

 accumulation is used up. 



Hardwood Record counsels again that hardwood stocks are 

 excellent property today for those who are financially in position 

 to take them on, and anticipates that present evidences of grad- 



ually returning business will eventually show up in their true 

 light as bona fide and of real significance. 



A Broadminded View is Demanded 



WHILE DESIRING TO PRESERVE the amicable spirit of the 

 conference on the downward revision of rates on hardwoods, 

 held between representatives of the Southern Hardwood Traffic As- 

 sociation and the railroads serving the southern hardwood territory, 

 it is impossible to ignore the implication of shortsightedness which 

 the carriers have incurred through their failure to recognize the 

 imperative wisdom of the hardwood manufacturers ' demand. It is 

 not difficult to understand that the carriers involved should view with 

 timidity the prospect of letting go just now any portion of their 

 revenues. But if they could summon the courage to accept the prob- 

 lem in its larger aspect they would gain and not lose revenue. There 

 is no question that the present rates on hardwood lumber are having 

 a great deal to do with the almost total lack of movement of lower 

 grades, aside from the enormous effect of the general economic 

 depression. It is apparent that while the general depression pre- 

 vents the movement of all hardwoods in anything like the volume 

 that obtained prior to June or July, 1920, the general stagnation of 

 lower grade hardwoods would not be, were it not for the prohibitive 

 barrier of freight rates. Reduce these rates to reasonable levels and 

 the movement of the lower grades will undoubtedly be quickened. 

 If they are maintained, recovery of this movement wiU be painfully 

 slow, if not altogether impossible. 



The carriers should recognize that not only are the hardwoods 

 suffering from the burden of the increased rates granted under Ex 

 Parte No. 74, but that they are also impeded by an accumulation of 

 inequitable advances, advances which in some instances have more 

 than doubled freight costs since 1914. In other words, the advances 

 under Ex Parte No. 74 constituted the straw which at last broke the 

 camel's back. The percentage advances authorized under this act 

 should never have been applied to hardwoods, in fact, to forest 

 products. The contention made by J. H. Townshend, secretary- 

 manager of the Southern Hardwood Traffic Association, that forest 

 products, a low grade commodity having long haul and paying rela- 

 tively high transportation charges, could not bear the same increase 

 as placed upon the general classes of traffic and continue to move 

 should have been sustained. Since this contention was made the 

 country has passed into an era of severe depression, which has com- 

 plicated the situation, but has not altered the facts of the case. 



However, the foregoing is more or less a post-mortem examina- 



