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The IIakdwodu Comi-a.nv, 1 



Publl.htd in ll.c I 

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I iipv n^n t, lilt li Aivt*« ui^u vyUAirA.^i, ii'ii-^ 

 Inlrrcsl of the American Hardwood Foresis, llie Producis iKcreof, and Logging. Sa 

 ill and WoodworLing Machinery, on the lOlh and 25lh of each Month, by 



THE HARDWOOD COMPANY 



Edgar H. Defebaugh. President 

 Edwin W. Meeker. Managing Editor 

 I lu Maxwell. Technical Editor' 



Seventh Floor ElUworlh Building 



537 So. Dearborn Street, CHICAGO 



Telephones: Harrison 8086-8087-8088 



CHICAGO, SEPTEMBER 10, 1918 



No. 10 



w;;o7.;i;:v'i:;>!g.v'>tmyi*i/iv^>itiM*it!>K?>im!>^ 



Review and Outlook 



General Market Conditions 



INDICATIONS OF THE FIRST PREPAKATIONS for a counter 

 1 offensive by the hardwood operators arc eoiiiing up here and 

 there. The price-breaking "shoek troops" of the small and unin- 

 formed operators seem to have worked off their momentum to an 

 encouraging extent, and lumber jirice movements now seem to be 

 seeking a state of equilibrium which undoubtedly will presage a 

 return to former steady advances. It is true that prices are still 

 showing somewhat off in cases here and there, but with insecurely 

 lield stocks pretty well cleaned away, and with the up-to-date 

 ■ iporators receiving more and more convincing information as to 

 tlie true value of their products, the reaction is bound to materialize 

 shortly. 



It is surely fortunate for the manufacturing fraternity that is 

 organized now as it never was before, from the standpoint of the 

 local, regional and national associations. This organization covers 

 not merely a man-to-man service but in most cases a carefully com- 

 piled statistical service that gives a careful and accurate analysis 

 of stocks, prices, cutting conditions and other matters essential to 

 proper judgment on cutting and selling policies. The man who 

 will carefully keep in touch with this information can not go far 

 wrong, and it is more apparent from week to week that that per- 

 centage of the hardwood manufacturing trade which, by virtue of 

 its predominating percentage of total cut and of its business 

 methods, controls the situation, is figuring on a concrete basis in 

 shaping its sales policies. 



As an indication of what this important association foundation 

 can do for the lumber trade, the information brougHt out at a 

 recent meeting of the Open Price Plan of the Hardwood Manu- 

 facturers' Association is striking. Tlwough comparisons of indi- 

 vidual records and compiled statistics members in the southwestern 

 territory arrived at the definite conclusion that production in that 

 territory was only sixty per cent of normal, and that the bulk of 

 orders was coming from the government and from war industries. 

 Here is surely a strong combination of circumstances. With the 

 bulk of production from this territory going in such directions 

 there is created a sort of a trade gyroscope — an absolute stabilizer 

 which will bring trade back to a sound economic perpendicular 

 with only slight influence to make it lean in one direction or another 

 because of markets in lines outside of government or war work. 

 For the markets in this direction are assured and are not hounded 

 with uncertainties of labor and production as are the purely com- 

 mercial lines. 



Were the condition outlined at the above mentioned meeting an 



id not 



it might not be 

 iitional. 



it it is typical . 



It is true that there is a good deal of lumber in the South at^ 

 I)resent, but the fact that foundations are full cannot be considered 

 as a point by itself, and without qualification. There arc various 

 and sound reasons why lumber has piled up and such reasons have 

 been recited in numerous cases and in numerous forms during the 

 past few months. If any manufacturer is not thoroughly alive to 

 the reasons "why" he has kept himself sadly out of touch with 

 conditions. 



There is another point which is getting more and more attention 

 in trade circles. It has to do with the increased earning power of 

 the laboring element, and the fact that regardless of any question 

 of patriotism the human nature side of the laboring class, which 

 now holds more ready money than ever before, is going to assert 

 itself. In other words, the impetus towayd thrift is going further 

 than to make it possible for the laboring class to buy bonds and 

 stamps and will result in accumulations wherewith some of the 

 luxuries not being taken by the middle classes will be called for in 

 increasing quantities. There have been various analyses appearing 

 in ])ublic print during the last few months attempting to show the 

 attitude of the laboring class toward life under present conditions. 

 The laboring clement is distinctly inclined to take advantage of 

 the opportunities for getting some of the good things of life, and 

 surely cannot be blamed for this attitude. This means that they 

 are going to buy more in the way of foods and material things that 

 they and their families can enjoy, and in fact the inclination will 

 probably resolve itself into a national policy which will recognize 

 this as desirable and as one means of keeping labor satisfied. 



The report as above noted that war work and government orders 

 predominate in the hardwood market is showing more and more cer- 

 tainly to be true all over the country, and the greater this prepon- 

 derance becomes the more assured is the hardwood situation in all 

 directions. Surely no one can doubt for a moment that war work 

 and government business is demanding a greater and greater share 

 of production and manufacturing power in all lines. 



Beware of the Car Shortage 



TlIK I'lHST COMPLAINTS are already coming in that cars 

 will not be so plentiful in the near future as in the past. 

 Critics of the administration who are opposed to government rail 

 control might think they will find a basis for argument in what 

 will probably be the most serious shortage for commercial lines 

 ever experienced. The facts, however, will probably show that 



