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

 Mill and Wood- Working Machinery, on the 10th and 25lh of each Month, by 



THE HARDWOOD COMPANY 



Edgar H. Defebaugh, President 

 Edwin W. Meeker, Managing Editor 

 Hu Maxwell. Technical Editor 



Entire Seventh Floor Ellsworth BuildinS 

 537 So. Dearborn Street, CHICAGO 

 Telephones: Harrison 8086-8087-8088 



I- IB 



Vol. XXXIX 



CHICAGO, DECEMBER 10, 1914 



No. 4 



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Review and Outlook 



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General Market Conditions 



By FAR THE MOST IMPORTANT DEVELOPMENT as affecting 

 the country 's lumber trade, and in fact trade in almost all classes 

 of raw material, is specific evidence that the raUroads are taking 

 •down their "not interested" signs and are actually placing orders 

 for quantities of raw material that amount to a very considerable 

 item in the aggregate. It hardly seems possible that they are actually 

 making plans for increasing their general expenditures for actual 

 equipment, but nevertheless they are planning repair work on a 

 large scale and are demanding considerable lumber for this purpose. 



Were the evidence not available through the orders being placed 

 with limibermen, conditions would be seen by noting the actiyity in 

 the freight yards in some of the large cities where in many cases 

 long strings of freight cars are laid up on the tracks with gangs 

 of men busy making the necessary repairs, which do not require the 

 cars being taken to the shops. It is only reasonable to suppose that 

 this condition is general and that it includes much more extensive 

 repair work than can be seen without a thorough investigation. 



Fortunately this demand for railroad material includes a variety 

 of lines of stock for repair work of different kinds, not only on 

 cars but in other railroad property. The result will be pleasing to 

 all classes of lumbermen as different characters of stock come from 

 •different parts of the country. 



Another Very pleasing development in this period is the almost 

 universal effort being made by hardwood buyers for woodworking 

 establishments to contract for 1915 requirements. In fact there has 

 been a very strong effort in this direction, and only one deduction is 

 possible, namely, that they foresee marked increases in prices during 

 the coming year and are endeavoring to fortify themselves against 

 paying more money for their stocks. As a matter of fact lumbermen 

 are receiving these offers with little enthusiasm as they in them- 

 selves constitute the best reason in the world why they should not 

 make contracts. 



The export situation is not changed to any extent, there being a 

 considerable aggregate volume of business going abroad. This vol- 

 ume, however, is not being increased to any extent. If the risk of 

 confiscation by the warring nations is not sufficient excuse for non- 

 shipment, the prohibitive freight rates should in themselves consti- 

 tute a definite check on foreign shipments. 



However, in spite of these and all other retardant factors, lumber 

 is being moved in very fair quantities. There is some report from 

 the South that heavy timbers are being resawed into boards for box 

 lumber. This report comes mainly from the yellow pine mill section 

 and is probably the result of the continued activity in the box 



business and lack of sufficient demand for heavy timbers. It is a 

 regrettable condition when this long, clear stock is sacrificed in this 

 way. 



Actual buying conditions are about the same as they have been 

 for several weeks past with probably a little more alertness on the 

 buyers' part, and with a spotty strengthening in values. There is 

 no likelihood that any marked change will be felt for the remainder 

 of 1914, but all lumbermen will be wise in making jilans for gradually 

 augmented call for lumber when 1915 has gotten fairly well started. 



One condition will affect at least two of our native woods favor- 

 ably, this being the difficulty in securing sufficient quantities of 

 mahogany logs from abroad. The risk on ocean shipments is pre- 

 venting the securing of sufficient quantities of mahogany logs at 

 English mahogany centers to supply the American and English de- 

 mand. At the same time the call for mahogany veneers and lumber 

 keeps up with fair activity in this country, and good prices are being 

 realized almost universally without exception. If this condition 

 keeps up, with the increased difficulty of securing logs from the origi- 

 nal shipping points, it will be necessary to fill in certain lines with 

 acceptable substitutes, especially in the medium grades of furniture. 

 For this purpose birch and gum are recognized as being pre-eminent, 

 and the mahogany situation cannot but affect these two woods 

 favorably. 



Regarding the general business outlook, the Department of Com- 

 merce has issued some highly gratifying statements that show a 

 tremendous increase in balance of trade in favor of this country 

 for November. In fact the figures aie distinctly more favorable than 

 for November, 1913. This does not necessarily mean that our actual 

 exports are greater this year, which, of course, is not true. How- 

 ever, we must realize that we are keeping a great deal of money at 

 home through the checking of our tourists' invasion of Europe, which 

 naturally results in our taking abroad a good many millions of 

 dollars in actual money. The balance is very likely as favorable 

 as it appears, because our imports are reduced to the vanishing point 

 and because of the suggestion above. 



Hjvrdwood Record endeavors to be truthful in its analysis of the 

 situation as affecting its readers. It believes the sources of informa- 

 tion from which its digest is prepared to be thoroughly reliable, and 

 is extremely pleased with the opportunity of presenting such an 

 optimistic summary of probable developments and hopes that this 

 opinion will conform to the ideas of at least the majority of its 

 readers. 



Hardwood Record most earnestly urges hardwood and veneer con- 

 suming factories to make arrangements for the purchase of as much 



