26b 



HARDWOOD RECORD 



include interest on bonds, taxes on timberlands or depreciation of 

 plant. If these items were taken into consideration the cost would 

 be increased from two to three dollars per thousand feet. 



It will be noted from the lines showing range of prices that at no 

 time during the past five years, except during a short period during 

 the latter part of 1912 and early part of IDLS, has there been a rea- 

 sonable margin of profit in the manufacture of hardwood lumber. It 

 was not a natural trade condition that brought about the prices pre- 

 vailing during the high periods. Overflows and heavy rains during 

 the spring of 1912 and 1913 curtailed supply by reason of inability 

 to do logging. Immense quantities were damaged by the floods, and 

 this combination brought about a shortage in supply, creating a 

 slightly higher market, although demands increased to no material 

 extent. With usual production prices during these periods, I am 

 satisfied would have been more nearly on a level with thofe of 1911 or 

 1914. 



Prices were on a decline iluring the spring of 1911, but everyone 



was hopeful for a resiunption of business and mills were operated 

 at their capacity. "When the war came on the export trade was shut 

 off, and domestic prices declined rapidly. The majority of the mills 

 closed down during the latter part of 1914. Eealizing that it would 

 be impossible to secure a supply of logs during tlie winter months, 

 logs were put in during the dry season last fall, anticipating the 

 European situation would clear up, and hoping that export trade 

 would be re-establislied. It was necessary to manufacture this tim- 

 ber during the winter months, but as fast as the logs are being cut 

 up, mills are again closing down, and when the present supply is 

 exhausted, they will close down for good ; or, until the rate situa- 

 tion is adjusted or the domestic market advances and demands in- 

 crease more than we have any reason to hope for from the present 

 outlook. All of the larger mills have lieavy stocks on their yards. 



CHOSS SECTION OF LOG 2C" AND Ul 

 SEE TABLE BELOW. 



CKOSS SKCTIO.V OF LOG 20" TO 25" IN DIAMBTEK. 

 SEE TABLE BELOW. 



PRODUCT OF GUM LOGS 



26 INCHES AND UP IN DIAMETER 



cm 



GRADE 



FAS RED 



N"! COM 

 BOX BOARDS 

 FAS SAP 

 NnCOM ■• 



r o B 

 CHICAGO 



N°^COM 

 N''3 



PERCENT 



20-.- 30.00 



10- 21.00 



9- 17.50 



38 •. 2 1.00 



7 •.■ I 7.50 



9-.. 15.50 



7 •■ I 2.50 



100 • 



LESS FREIGHT 3300-'t'-M9' 



VALUE FOB. MILL PER M 



COST •• 



PROFIT • .05 



VALUE 



600 

 2.10 

 2.47 

 7.98 

 1.22 

 1.40 

 .87 



PRODUCT OF GUM LOGS 



20to25inches diameter 



GRADE 



FAS RED 

 N°ICOM 



BOX BOARDS 

 FAS SAP 

 N"! COM •• 

 N"2 •• •■ 

 N°3 • • 



PERCENT 



5 

 15- 



6-.- 

 38 

 15- 



II 

 10- 



CHICAGO 



30.00 

 21.00 

 17.50 

 21 00 

 17 50 

 1550 

 12,50 



100. 

 LESS FREIGHT 3300- - IS^" 

 VALUE F.O.B MILL PER M 

 COST 

 LOSS 



VALUE 



1 SO 

 3 05 



I 65 

 7 98 



2 62 

 I 70 

 I 2 5 



19 75 



627 



13.48 



15.72 



224 



("IIAUT No. 2. 



'Twenty-two per c-.nt, or 1.133 feet o£ gum liiiibir pir acre o£ this .size 

 is now mnnufactuicd on which actual cost can be realized under existing 

 freight rates ; 3,9(17 feet per acre of smiiller size Is destro.ved. 



Feet Cms I''relKli1 



Arltansas 2.5.5.5,300.000 170.301) $17.030,immiiiii 



Louisiana 2,002.000.000 1.33,500 13,350,000.(1(1 



Mississippi 1,705,000,000 113,700 11,370,000.00 



6,262,300,000 



417,500 



$41,750,000.00 



CIlAliT N<i. .:. 



Sixty-IW" iH-r cent, or 3,141 feet, ot gum tiintiel" piT acre lliis size and 

 largei- could I)e inaniifaetiired witli reduction of .3 cents in frelglit rates, 

 and but 1 ,;).5!l feet per acre would be destroyed. 



l-'iM-i Cars Freigbt 



.\rkans;is 7.201 ,::iiii. (KM) ISD.iiio .<(;4().S0,s..-|Ciii.iiii 



l.onislana ."..1142. null. ilOd .•;7(>. 1)011 31 ,<J()ll.lllJli.lHi 



.Mississippi 4..SII.5,OOII,()iiO 320,300 27,225,.'".0O.i)0 



17.048.300,000 1,176,400 f 09,994,000.00 



Additional Ucvemie for Itailioads $58,244,000.00 



