flflPiwoM MM 



Copyright, The Haudwood Company, 1916 



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

 Mill and Woodworlting Machinery, on the 10th and 25th of each Month, by 



THE HARDWOOD COMPANY 



Edgar H. Defebaugh, President 

 Edwin W. Meeker, Managing Editor 

 Hu Maxwell, Technical Editor 



Entire Seventh Floor Ellsworth Building 

 537 So. Dearborn Street, CHICAGO 

 Telephones: Harrison 8086-8087-8088 



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'.OTAP 

 UAKI 



Vol. XLI 



CHICAGO, JANUARY 25, 1916 



No. 7 



' H :^Mt:;^a5wa^wTO^ro3tii>i^v^^^ 



Review and Outlook 



General Market Conditions 



DATA AND REPRESENTATIVE OPINIONS based on close ob- 

 servation of fundamental conditions, which were brought out last 

 week at the various hardwood association meetings occurring in rep- 

 resentative sections, give an exceptionally reliable basis on which to 

 build an opinion of the present and prospect for hardwoods. Meet- 

 ings occurring in Memphis, representing the hardwood section of the 

 Mississippi valley; in Cincinnati, representing mainly hardwood man- 

 ufacturers from all over the hardwood territory east of the Mi.ssis- 

 sippi, in Indiana representing a very substantial output "^f high- 

 grade hardwoods, and Michigan giving the tone of conditions in 

 northern stocks, were all well attended and were marked by thorough 

 discussions of what is now taking place in the hardwood lumber 

 business. 



The national furniture exhibits at Chicago "and Grand Rapids are 

 at this date drawing to a close and have progressed to a sufficient 

 degree to make possible accurate judgment based on evidence pre- 

 sented there. In addition there are other aids in formulating definite 

 ideas, such for instance as closely tabulated statistics and analyses of 

 general business. Hence in shaping this report it probably is neces- 

 sary only to present the facts as they have been set forth and let 

 those interested draw their own conclusions. 



As to the meetings, it was clearly and definitely established that 

 there will be an unusual amount of enforced curtailment in the Mem- 

 phis territory, which in this case includes all of the hardwood oper- 

 ating sections to the south, southwest and west of Memphis, due to 

 physical impossibility to get out anywhere near a sufGeient supply of 

 logs. Exceptionally unfavorable logging conditions have maintained 

 a burden in this direction for several weeks, which has already had a 

 decidedly deterring effect on the production of hardwood stocks in 

 that whole section. There are a few operations in the district in 

 question which are not influenced by adverse logging conditions but 

 the difSculty will be accelerated rather than mitigated from now on 

 for a considerable period. In fact, it is confidently claimed by some 

 of the closest students of affairs around Memphis that the next few 

 months will see the production of gum curtailed by at least fifty per 

 cent as compared to the proper production to meet the developing 

 demand. 



The note of warning sounded at the gum meeting was undoubtedly 

 designed more as a warning against future over-activity than against 

 any unreasonable production in the next five or six months. There is 

 no possibility, with the log situation in such shape as now prevails, that 

 there will be sufficient stocks to fill aU requirements in the next fix 

 to eight months. Even when the log input has become sufficient and 



there is an actual plenty of green stocks, there will be a further 

 period before these stocks are ready to be shipped, and it can be 

 confidently expected that unless adequate provisions for careful and 

 thorough drying by mechanical means are provided, there will be 

 no shortening of this period because gum operators are fully cogni- 

 zant of the absolute necessity for treating their material in the proper 

 manner to conserve its essentially good qualities. 



They will not be willing to jeopardize the rapidly improving opinion 

 of gum or the chance for cleaning up a little immediate money on 

 quick shipments. This fact was clearly brought out in the gathering 

 of gum manufacturers at Memphis on the fifteenth. 



What is said of gum in this section is equally true of oak, as to 

 present and future supply. Stocks at present in both of these woods 

 are badly broken, in fact, it is practically impossible to get any 

 quantity of certain items. As a result of the decreased supply and 

 the rapidly growing demand, there has been a continually strength- 

 ening market, which even now has brought both red and sap gum to 

 a very favorable point, some stocks having advanced $5 or $6. Indeed 

 there are reports of advances on certain sales that have gone up as 

 much as $10 to $12, but these are exceptional eases. 



The oak situation is governed by different factors as its produc- 

 tion is divided between the Mississippi valley section and those sec- 

 tions east of the Mississippi, embracing Indiana, eastern Tennessee 

 and Kentucky and the other mountain territory in that part of the 

 country. As above stated, the southwestern oak is badly affected 

 as to supply by the high water and the stocks already broken will 

 not be replenished for a good many months. The oak lumber 

 from the other sections has Ijeen moving out in good shape and stocks 

 are not what they should be. Some of those territories also are 

 affected by poor logging conditions and this will have a deterring ef- 

 fect on the accumulating of sufficient stock. It will be a good many 

 months before there will be well-balanced stock piles of oak, consid- 

 ering the supply in its entirety, and with a much more favorable 

 outlook for demand, there is nothing ahead within the range of vision 

 that shows any unfavorable appearance. 



In the northern woods the situation has been substantially improved 

 by remarkable sales in the last couple of months. The data prepared 

 by Michigan manufacturers is typical enough of all northern hard- 

 woods to warrant their being taken as a close indication of what 

 may be expected. These figures will be found in full in connection 

 with the Michigan meeting as will figures from the other organiza- 

 tions in connection with reports of the various other association 

 meetings. The vital point of the Michigan report is the remarkable 

 reduction of stock on hand unsold at the date of this meeting as 

 compared with the last meeting, there being 25 per cent reduction. 



