HARDWOOD RECORD 



15 



told front aa opposed to this proceeding and are holding their stocks 

 for prices more commensurate with their value. As a matter of actual 

 fact, out of approximately 500 replies already received there are only 

 six which state that the concerns replying will not be in the market 

 for hardwood lumber during 1915 on account of their already having 

 contracted for requirements during that period. Of these six one 

 states that it is bought up for six months, while the rest are cov- 

 ered in their requirements for the entire year. 



In the main, the replies show continued interest in hardwood sup- 

 plies, which proves, in addition to the fact that there is Uttle con- 

 tracting being done, that the terms of present sales are for the most 

 part for short periods and that lumbermen are protecting themselves 

 against a rise in the market by not accepting orders for more than 

 thirty Vo sixty days' time. 



H.\RDW00D Eecokd purposes to analyze the entire matter when it is 

 completely at hand and will, as far as possible, endeavor to show 

 the trend of changes in requirements for the coming year. 



Wood Still an Important Car Material 



WHILE THERE HAS BEEN a tremendous amount of agitation 

 against the increased use of steel iu ear construction without 

 adequate proof that it is a superior material, there still seems to be a 

 vast opportunity for the use of wood for this purpose. As a matter 

 of fact, the decreased consumption of wood for car construction has 

 been much more marked in the construction of passenger cars than it 

 has in the construction of freight cars. 



The Bailway Eevicw of Chicago has summarized car sales during 

 191-t and the statistical records shown offer some very str ikin g and, 

 in the main, rather satisfactory evidence to the lumbermen that they 

 have not entirely lost out in this important field of consumption. 



In 1914 orders were placed for 83,168 freight cars and 2,112 pas- 

 senger ears. It is very disappointing to compare these figures with 

 the preceding year, as in 1913 the respective figures were 144,843 and 

 3,212. The decrease in 1913 over the preceding year, however, was 

 ■even more marked, 1912 having established a high mark for car orders. 

 The pertinent feature of the statistical record, however, is the 

 analysis showing the type of cars put into use during the past year. 

 Out of the total of 2,112 passenger cars 1,599 were of all steel con- 

 struction, 101 had wooden and steel bodies on steel underframes, 236 

 had steel underframes and wooden bodies and 176 were of all wood 

 ■construction. 



Tlie general impression has been that the construction of all 

 wooden passenger cars has practically ceased, but this would indicate 

 a, little more interest in this type of construction than formerl}'. 



Analysis of the freiglit car situation is even more gratifying, as it 

 shows that wood played an exceedingly important part in this feature 

 of car construction the past year. Out of the total of 83,168 freight 

 cars ordered during 1914 there were 1,158 cars of all wood construc- 

 tion. However, it is gratifying to note the large number of cars with 

 ■wooden bodies and steel frames which were ordered during 1914. 

 This is especially true in view of the fact that the main bulk of raw 

 material going into the construction of freight cars is used in the 

 body. In fact, 30,206 freight cars out of the total number ordered 

 had wooden bodies with steel underframes, giving ample grounds for a 

 more hopeful feeling for future car construction. Out of the total 

 number of freight cars ordered there were 15,515 cars with combina- 

 tion wood and steel bodies and steel underframes, and 2,953 cars 

 with wooden bodies and combination of wood and steel underframes. 

 Thus wood held a prominent place in the manufaetiu-e of 49,832 cars 

 out of the total 83,168. 



Tliese figures are more favorable than the figures for the past 

 year covering freight cars and might be taken as indicative of a 

 gradual return to more fair consideration of wood as a car con- 

 struction material. It is significant that wood is going mainly into 

 freight rather than into passenger cars as the popular and ill-advised 

 clamor for all steel construction would not affect this class of rolling 

 stock. Another significant feature of these statistics is that a great 

 many of the cabooses constructed for housing freight crews while on 

 the road were of wood, which would indicate that those men wlio 

 make the caboose their home seriously object to living in prison cells. 



Prosperity Inspired by Confidence 



pvUEING THE PAST TEN DAYS two of the largest hardwood 

 *-^ manufacturing organizations in the country, to be specific, the 

 Lamb-Fish Lumber Company, Charleston, Miss., which at that point 

 manufactures 40,000,000 feet of hardwoods per year, and the W. M. 

 Bitter Lumber Company of Columbus, O., which at its various mills 

 in different parts of the country manufactures some 200,000,000 

 feet of hardwoods annually, have decided to reopen their opera- 

 tions on a full scale and on a permanent basis. Their respective 

 decisions were made at meetings of directors held during this period, 

 and the orders have already gone iuto effect. Both of these institu- 

 tions have interested in their directorates men who not only are 

 thoroughly conversant and closely in touch with livmber condi- 

 tions, but whose broad business careers enable them to accurately 

 analyze the trend of business in the coimtry as a whole, and the 

 two decisions are most momentous for this reason. Both institu- 

 tions report that the directors were unanimous in their optimistic 

 feelings and that there was no opposition to the proposition to 

 reopen operations. 



The probable effect of this development is easily discernible. It 

 cannot be definitely said that other mills will follow suit, but there 

 is every reasonable assurance that this will be the result. Thus we 

 see the beginning of a great wave of optimism which will spread 

 through the hardwood manufacturing field. The leaders in any 

 business should realize the psychological effect which their actions 

 have upon those not so closely in touch with the big affairs of the 

 country. It is generally recognized that corporations of the magnitude 

 of these two concerns have in their organizations men who are recog- 

 nised as occupying prominent positions iu the business world. The 

 opinions of these men as reflected in the actions of the companies 

 they are connected with are generally speculated upon by others in 

 the same trades, who are not in such prominent positions. 



Probably the most important feature of this development will 

 be the effect this move will have upon the buyers. They wUl im- 

 questionably not only feel that it presages a period of higher 

 prices, which indicates the desirability of buying as quickly as pos- 

 sible, but they wiU be given increased confidence regarding their 

 own business as they can reasonably feel that men behind such 

 prominent enterprises are in position to know and see things which 

 they themselves are unable to get in touch with. 



Good Business for Yards to Buy Now 



J T IS A DIFFICULT undertaking to convince the consuming fac- 

 *■ tories that it would be wise to buy lumber now while prices are low, 

 as with them it simply means a question of putting their money into 

 stocks they might not want, in order to take advantage of lower price 

 conditions. With the hardwood yard trade, however, the proposition 

 is somewhat different. In that business it is simply a question of 

 buying right and selling right, that is, the stock that is bought has 

 to be sold. Profits from the raw material are not made indirectly 

 as in the woodworking business. Thus a different policy should pre- 

 vail, or at least consideration should be given to another feature of 

 the condition. 



For instance: We will say that a yard man bought stock before 

 prices reached the present lower level, at $30 with the expectation 

 of realizing his profit by selling for $35, this to include the carrying 

 charges in the meantime. Considering then that the slump came on 

 and that he was able to get only $30 for the stock this would mean 

 a direct money loss. There is only one way to make up this 

 loss, namely, to buy the same stock at the lower market price 

 in order to show a profit on his investment. That is, if he can go 

 out and buy this same lumber at $25 at the lower price prevailing 

 at the mill, it would mean that his original investment was protected 

 to the extent of the profit he originally counted upon. Thus it is not. 

 as in the case of the woodworking institution, simply a matter of 

 not wanting to put his money into stock, but of being almost com- 

 pelled to in order to protect his previous investment. 



On the face of it, at least, it would seem that the yard trade is 

 making a mistake in not taking advantage of present price conditions 

 which will unquestionably not last very much longer. 



