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Editor's Note 



Tin.' foJIowing is an address delivered by W. B. liurlie, vice-president and jjeneral manager of tlie Lamb-Fish Ijum- 

 lier Company. Cliarle&ton. Miss., at tbe conteronee of lumbermi'n and railroad officials, held at the Hotel (iayoso, Mem- 

 libis, Tenn.. April 7. 



Tenn 



In the earlier flays of the harrlwood himljer industry, when timber- 

 land was abundant and relatively cheap, lumbering was largely a 

 business of speculation in stumpage and the rise in the value of tim- 

 ber often made up the bulk of the profits. Under such conditions 

 not so much attention was paid to the distribution of the manufac- 

 tured product. At that time timber was located close to the main 

 lines of the railroads and rivers, and could be logged and manufac 

 tured at a low cost. Meanwhile the sup{)ly of available timber has 

 become greatly reduced, and that remaining is now a considerable 

 distance from the milling points, necessitating a higher freight rate 

 on the raw material, or the construction of logging railroads at addi- 

 tional ex]jense. The business of handling has also become large and 

 coni])licated, ami the costs of labor, supplies and other factors have 

 gone up rapidly. The result is that, deprived of the support of cheap 

 stumpage and cheap transportation on raw materials, the lumber com- 

 panies have been obliged, during the last few years, to operate on a 

 narrow margin of profit. To secure any i)rofit at all is now more 

 and more plainly a matter of management, of manufacture and esjie- 

 cially of distribution, including selling and transportation. 



I will treat on only the question of manufacture as relating to 

 costs and production of gum lumber. The Interstate Commerce Com- 

 mission has, in several recent decisions, not seen fit to give considera- 

 tion to industrial conditions as a factor in determining what was a 

 reasonable rate. I believe the carriers will look at this from a differ- 

 ent angle, and for that reason these charts have been prepared. 



We have lieard a good deal about the increased uses of red gum, 

 and ]irobably many who read about red gum being used in a big 

 hotel for interior finish, think that the entire product of the red gum 

 log, or a large i)roportion from it, is used for this purpose. The 

 wood that is used for interior finish or for furniture or cabinet wood 

 is the clear heartwood, or what is known in the lumber trade as 

 fas red gum. Only a small percentage of this grade is obtained from 

 the choicest trees. 



Government Estimate of Standing Timber in the Three States 

 The government estimate of standing gum timber in the three 

 southern states of Arkansas, Louisiana and Mississippi is 28,000,000,- 

 000 feet, or enough to make in round figures 1,860,000 cars of lumber; 

 but under present conditions of market and freight rates we can man- 

 ufacture only 22 per cent of this timber and realize cost of production. 

 Chart No. One 

 With reference to Chart No. 1 it will be noteil that on an average 

 acre of southern hardwood timberland are to be found 19 trees, con- 

 taining 5,100 feet, all of which is merchantable, except possibly 405 

 feet. This chart shows number of trees and of each size ordinarily 

 found, of which one tree is in excess of 36 inches in diameter; the only 

 one that can be utilized under present conditions. The others must 

 be left standing or destroyed in the event the land is put under cul- 

 tivation. Three of these trees, ranging from 20 to 25 inches, will 

 ]»roduce 2,008 feet of lumber. I have shown here the exact size. 

 This timljer would be considered, in any other hardwood section, as 

 exceptionally fine and we would place a good value on it if it con- 

 sisted of oak, elm. hickory or any other hardwood. The third group 

 consists of sizes ranging from 16 to 19 inches. There are to be found 

 six trees. These trees wiU ordinarily produce 1,554 feet of lumber. 

 The fourth group contains nine trees, which vary from 12 to 15 

 inclies. In the northern hardwoods, maple, beech and other woods 

 of this size are considered merchantable and many operators cut 

 nothing larger. With us, we can never hope to remove this small 

 timber from our forests, but we do believe that freight rates should 

 be ail.iusted so as to enable us to utilize all trees over 16 inches. 

 Chart No. Two 

 By referring to Chart No. 2, at the top is a cross sectional view 

 rei)roduced from an actual log, showing the manner in which it is 

 cut; grades produced, which are represented by different colors, 

 shown in key underneath. You will note from logs 26 inches and up 

 in diameter we obtain only 20 per cent fas red gum, and 9 per cent box 



CHART SHOWING NUMBER OF GUH TREES OF DIFFERENT SIZES ON ONE ACRE HARDWOOD LAND IN SOUTHERN STATES. 



AUTHORITY: BUREAU OF FORESTRY BULLETIN No.58. 



FEET PER/ICRE 



1133 



COST OF MANUFACTURE REALIZED ON THIS SIZE. 



2008 



/S54 



THIS SIZE NOW DESTROYED 



COULD SI MAMUFAUURtD WITH REDUCTIOK 



OF 3 CENTS in FREIGHT. 



^ 



THIS SIZE NOW DESTROYED 

 COULD BE NAHUFACTURED WTH REDUCTIOH 

 OF 5 CENTS IN FREIGHT. 



THIS SI2C now DESTROYED 



cmsifwimcn/m ww reductwh 



OF 7 CERTS IN FREIGHT. 



CHART No. 1. 



—26- 



