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Lessons From the War 



One of the benefits wliifli tlio war may bring to the himber busi- 

 ness is a realization on the part of consumers that it will not do to 

 attempt to make the lumbermen carry the entire burden when it comes 

 to the matter of material. For several j'ears there has been a distinct 

 tendency to reduce stocks, to get down to as low an investment in lum- 

 ber as possible, and in some instances this plan has been followed 

 to such an extent as to make a very unsafe condition. The war, which 

 has stimulated the demand for certain thicknesses of hardwoods, espe- 

 cially 2-inch and thicker, has demonstrated to manufacturers using 

 this material that it is not always easy to go out into the market and 

 pick uj) just what is wanted at a moment's notice. It is showing that 

 it is still necessary for the consumer who wants what he wants when he 

 wants it to keep a stock on hand. This is especially true of those 

 who prefer air-drying, or who must have material that has been 

 fairly well seasoned before it is placed in the kiln. 



The Use of Sheds 



It is a mistake for the lumber manufacturer to leave his material 

 on sticks indefinitely, as some concerns have the habit of doing. If 

 a pile of lumber has been thoroughly dried in the air, allowing it to 

 remain any longer is starting the process of deterioration, which is 

 going on to some e.xtent all the time but will be intensified by extend- 

 ing the period. The proper system, in the opinion of many, is to 

 bulk the lumber under sheds, where it will be jirotected from the 

 weather, and will keep the condition which has been arrived at by the 

 curing process. 



Now and then one .sees a mill-yard where the lumberman has allowed 

 certain stacks to get black with age without taking the stock down. 

 Just because there was no demand for that particular material, he 

 allowed it to stand just as it was. The ultimate result of such a 

 course is that the lumber will have deteriorated in grade and every 

 other respect to such an extent that when it is finally sold, the amount 

 realized will not nearly cover the cost of manufacture and handling. 



The Troubles of Hickory 



A lot of hardwood men used to think that hickory was one of the 

 best money-makers on the list, but the opinion is growing that it is a 

 very unsatisfactory wood to handle. While it is true that the upper 

 grades are often salable at good prices, the manufacturer or whole- 

 saler is likely to be misled into thinking that he is sure to make money 

 if he can move his stock. The trouble is that the low grade material 

 is a very slow seller, and the necessity of carrying it for years, some- 

 times, means that the i)rofit on the upper grades has to be unusually 

 large to insure as good as an even break. 



The best plan for the conqern with hickory timber to manufacture 

 woulil seem to be putting a small mill right in the timber and cutting 

 out blanks for spoke and handle manufacture. These can be sold at 

 a profit, while the proposition of making money out of the lumber is 

 a much more difficult one. 



Thick Stock and Labor 



One of the difficulties which the lumberman meets with in connec- 

 tion with handling thick lumber is that of labor. It is very hard on 

 yard employes to move, say, 3-inch oak, and wears out the men to 

 such a degree that their usefulness is sometimes very seriously 

 reduced. In fact, a good many hardwood men make the rule that 

 when thick stock is being handled, if the conditions are such that 

 rapid work is required, two shifts are employed, giving each lot of 

 men a chance to rest. 



' ' That is one of the several objections against handling much thick 

 lumber," said a successful hardwood man recently. "It simply kills 

 your men, and takes so much steam out of them that they are good 

 for nothing for some time to come. The very fact that the boards 

 are so heavy means that the stock is seldom piled exactly right, and 

 it is the excejition to see a stack of thick lumber which has been put 

 up as well as one of thinner material. Considering the opportunity 

 which thick lumber has to check and crack, it is a mighty uncertain 

 and distasteful proposition to mo. ' ' 



—36— 



A veteran hardwood man who has handled a lot of thick lujuber in 

 his time emphasizes the point of having the stacks face the south, 

 so as to get as much sunshine as possible, and also putting the boards 

 close together. 



Supply and Demand 



Although prices are governed by sujiply anil <lemand, there are a 

 number of considerations which enter into every ease and qualify it 

 to some extent. 



For instance, the supply may get so small tliat this very fact will 

 reduce the demand. That is true of cherry, for example. There 

 isn't enough of it to make a market, as it were, and the result 

 is that the demand for cherry is hardly sufficient to absorb even that 

 which is available. On the other hand, the demand may be so strong 

 that the price, following it, rises too high, resulting in a falling oflF 

 of demand which, in spite of a possible reduction in output, knocks 

 the bottom out of the market, with a big slump in prices. That 

 happened to wide poplar a few years ago. 



Supj)ly and demand should not determine prices absolutely, but 

 only the range within which prices should move. The basis price 

 should be determined by the intrinsic value of the material and the 

 cost of manufacture. This does not always happen, however, for the 

 hardwood trade has been witnessing sales of lumber for less than 

 it cost to make it. Intrinsic value does not always determine price, 

 either, for, as one hardwood man pointed out recently, ash is intrin- 

 sically a better wood than red oak, and the supply is smaller, and yet 

 the price of ash is no greater than that of plain red oak. 



Teaching the Public 



The ])ublic is learning gradually. 



The writer recently attended a meeting of an advertising club, 

 which had been waging a campaign against untruthful advertising, 

 especially on the part of retailers. One of the "stunts" introduced 

 as a means of bringing home the facts of the situation was the mono- 

 logue of a black-face artist who related her experiences in purchasing 

 goods of various kinds. She was assisted by the toastmaster, who 

 questioned her at intervals. 



She told of buying ' ' American quartered oak ' ' furniture at 

 extremely low prices, and though questioned as to whether ' ' American 

 quartered oak" was real quartered oak, she clung to the belief that 

 she had been getting the genuine. The audience, which was composed 

 of business men from all lines, of course caught on to the fact 

 which was being emphasized, that certain dealers and manufacturers 

 are faking quartered oak through the medium of the prefix. 



Little things of this sort show which way the wind is blowing, and 

 gradually help to dissipate the vapors of ignorance which enable the 

 faker to put over his imitation. 



Get Down to Bed Rock Now 



' ' Now is a good time for lumbermen to get down to bed-rock, ' ' said 

 a hardwood manufacturer of considerable prominence. "In making 

 up my inventory the first of the year, I cut jirices to the bone. I did 

 not attempt to deceive myself, nor did I fail to make due allowances 

 for depreciation, bad accounts and other things which we are some- 

 times inclined to overlook, especially when conditions are not par- 

 ticularly favorable, and we would like to give ourselves a little more 

 margin to go on. My idea is that as long as the situation is not good, 

 it is an excellent time to clean house from cellar to garret, and to 

 squeeze out all the possible water. Then, when conditions do improve, 

 we will be in a position to take advantage of the change, and to make 

 some real money, without having to carry the handicap of a lot of 

 inflated values. ' ' 



Special attention is , being given the problem of pooling arrange- 

 ments with regard to foreign lumber trade by the Forest Service. 

 Recent utterances of the President calling attention to the desirability 

 of such arrangements have given great impetus to the activities of 

 friends of this system. The Forest Service already has made some 

 investigation along this line. The work will be concluded as quickly 

 as possible. 



