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Copyright, The Hardwood Company, 1916 

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

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



THE HARDWOOD COMPANY 



Kdgar 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 



LI«I»A.TI 



NEW \ 



Vol. XLI 



CHICAGO, MARCH 25, 1916 



No. 11 



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Review and Outlook 



B 



General Market Conditions 



Y FAR THK MOST SERIOUS FEATURE of the general situa- 

 tion is the impossibility of securing transportation facilities when 

 needed, due to the ever-increasing shortage of cars. Nothing that 

 would indicate marked hope for an alleviation of the condition in the 

 near future is in prospect, although efforts are erystalizing that will 

 call into cooperation a great many forces which will endeavor to 

 remedy the condition now existing. The scarcity of cars with the 

 extreme diflieulty of securing stocks at the mills means that the whole- 

 saler faces rather serious conditions. Of course the first condition is 

 an alterable one and will undoubtedly be corrected much sooner than 

 the latter. 



As to the prospect.i for normal mill stock that will allow proper 

 selection and profitable purchases by the wholesalers, nothing definite 

 has presented itself in the last couple of weeks. In many hardwood 

 producing centers consuming buyers are already out canvassing the 

 field thoroughly, not only to make purchases, but to get a first-hand 

 idea of actual conditions. There can be but one tesult from their 

 inspection, namely, that they will be firmly convinced of the impos- 

 sibility of prices more favorable to the consumer in the near future, 

 and the probable result will be an increasing call for stocks at present 

 prices. 



The easing-off of values which was predicted a couple of months 

 ago by certain consumers has not materialized in any direction. On 

 the other hand, the rise has continued and it is apparent that there 

 could be no other possible course with conditions as they have existed. 



The dry atmospheric conditions and high winds have done wonders 

 in drying up the woods in the South, but logging roads and the main 

 lines used in the transportation of logs to the mills were so far disor- 

 ganized that a good deal of work must be done yet before they are 

 in good shape. 



Plans are being perfected for day and night shifts, that is, plans 

 are being worked up which will be put into effect as soon as enough 

 logs can -be kept constantly coming to the mills. Quite a number of 

 the southern operators, who were down on account of flood conditions 

 at the mills or in the woods, or both, have i-esumed operations, but not 

 all on regular time as yet. The majority of those who were compelled 

 to cease operations are still shut down, but it is quite likely that the 

 next few weeks will see most of them going in good shape. 



In the meantime most of the available dry hardwoods of the South 

 have been shipped out on a rising market. Considering that territory 

 as a whole it can be assumed that the lumber which will be shipped 

 in the future will be practically new stock, cut since the mills resumed 

 operations following the high water. This means that a large per- 



centage of the hardwood lumber in the Memphis territory will not be 

 available for shipment for a month or two at least. 



The mills further east have concentrated on their manufacture with 

 the increasing demand and decreasing ability on the part of those 

 mills farther west to do their share to take care of the growing call, 

 They have, however, in the meantime been able to cover most of their 

 stock with orders and it is not at all likely that they have acquired 

 enough accumulation to have a material effect toward balancing supply 

 with demand. 



One uncertain feature exists as far as the southern manufacturing 

 is concerned, namely, the problematical effect of the ever-growing 

 number of small mills which are resuming operations, some of which 

 have been shut down for three or four years. The list of such manu- 

 facturing units is lengthening constantly, and there is no question 

 but that the aggregate production will in the end have some bearing 

 on the market situation. But it hardly seems possible, with the evi- 

 dence now available, that this added production will fill the discrepancy 

 between production and consumption. At least, there is not the 

 remotest chance that it will overbalance production or that it will 

 actually have a detrimental effect upon prices. If this development 

 had materialized at the time when buyers were well-stocked and when 

 the larger manufacturing institutions had fair quantities of lumber 

 on hand, there might be a different tale to tell, but with the almost 

 unprecedented shortage in all lines, the small mill production is a 

 favorable rather than an unfavorable condition. 



It is probable that there will be considerable logging done in the 

 North during the summer months, due to the continued strengthening 

 of the market, and the fact that unfavorable logging conditions 

 hampered the input of logs during the w inter. Naturally with a strong 

 going market and good values, the northern operators are not going to 

 pass up profits by leaving production below the point which they 

 might reach by a little additional effort. The added cost of logging, 

 due to extremely poor conditions during the winter months and the 

 probable necessity for summer logging, will be a stimulus tending 

 to upholding fair prices in northern stock. At present it is all moving 

 out in good shape. The summer cutting will spread out production and 

 not lump stocks on the yards all at once, thereby maintaining a 

 healthier tone at shipping points. That is, manufacturers will not 

 load up so much on their stocks in the beginning, but will have an 

 opportunity of turning it over gradually as they produce, thus obviat- 

 ing the necessity in some quarters of sacrificing good material. 



The reports from furniture factories are more or less conflicting. 

 Some of the big sections seem to show a state of disinterestedness 

 in hardwood purchases. The cause for this is difficult to arrive at 



