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HARDWOOD RECORD 



W. A. GILCHRIST, MEMPHIS, TENN., FIRST 

 VICE PRESIDENT. 



the United States, and I greet you here with 

 particular satisfaction since, until lately, the 

 opinion seems to have been prevalent that the 

 efforts of our work were primarily devoted to 

 the interests of the lumber industry located 

 larther north and east. While it is true that 

 our organization was conceived in a territory 

 with no, or little, contact with this section of 

 the country, our recognized policy and the 

 effective work which we have accomplished in 

 other parts of the country gradually have gained 

 for us universal recognition, and w'e count today 

 among our staunchest members some of the mos"t 

 successful lumber manufacturers of the southern 

 Mississippi valley who, in the beginning of our 

 existence, were indifferent to our work. 



Wt have occasion to look back Willi much 

 satisfaction on the commercial results of 1906. 

 It probably touched the highest mark yet at- 

 tained in point of individual and national pros- 

 perity. The products of the soil, of the mines 

 and of the factories were in their aggregate 

 never before equalled. I do not believe there 

 can be found a single important item which was 

 not in strong demand at good prices. The pro- 

 duction of iron ore, copper, of the precious 

 metals and of coal were limited only by lack 

 of labor supply and adequate facilitiex'for" trans 

 portation. 



Dun's Index of Commodity Prices shows that 

 the average during the year was the highest of 

 any within ten years past, and to find their 

 equal we would have to go back before the 



resumpti £ specie payments. The high prices 



of commodities were counterbalanced by in- 

 creased wages which in turn stipulated con- 

 sumption. The lumber industry, and our own 

 branch of that industry, shared in the general 

 conditions. Each month showed an increase in 

 demand and prices and while stumpage increased 

 in value and prices for machinery, supplies and 

 labor were higher than ever before, the value 

 of our manufactured product has approximately 

 kept pace, thus securing to us at least a normal 

 profit on the volume of business done. 



The improvement iu the hardwood " market 

 affected all woods alike, but the results varied 

 according to the supply. More oak and less 

 poplar was turned out of the mills than during 

 the previous year, the deficiency in poplar stim- 

 ulating the demand for its competitors. The 

 production of chestnut, Cottonwood and gum 

 was increased. In all hardwood lines, however. 

 prices were lirm. The development of certain 

 comparatively new lines of industry has had 

 its effecl upon ours. The remarkable activity 

 in the wagon and carriage industries, and the 

 wonderful increase in the automobile output, 

 together with some other industries requiring 

 wide lumber, had a marled effect upon that class 

 of material. But it is difficult to single out any 

 particular items to which special credit can be 

 given. 



In former years timber resources were consid- 

 ered valuable only if located within easy access 

 of consuming markets, and if susceptible of easy 

 and inexpensive logging. Today quite different 

 conditions obtain. The well located timber has 

 been largely consumed, and the majority of 

 manufacturers are operating in localities far 

 removed from points of consumption, and pre- 

 senting difficulties in logging which formerly 

 would have been considered insurmountable. 

 i eater efforts and more scientific methods have 

 to be exerted In all branches of our business 

 tu keep abreast of the times and stay in line 



with competition. Apparent changes in the 

 ( limatic conditions in the hardwood timber belt 

 Itnvi created additional hardships for those en- 

 gaged in our line of business, and the occurrences 

 during the last few months in various parts of 

 the country bear out this statement. 



Floods in some parts of our producing terri- 

 tory, excessive rains in others have created 

 adverse conditions which all of us know only too 

 well, and which have made themselves felt in 

 ihe various departments of our business. 



The government is well aware of conditions 

 prevailing throughout the lumber industry and 

 is endeavoring to render assistance by placing 



at our disposal 1 1 Iiservations, researches and 



experiments of a trained corps of foresters, leav- 

 ing it to the judgment of the individual to apply 

 the remedies suggested, if in his opinion they 

 will result to his benefit under his particular cir- 

 cumstances. 



If depletion in forest supplies continues in 

 the same ratio in which it has been experienced 

 during the last decades, one may readily foretell 

 that at no far distant date the scientific sug- 

 gestions today offered by the Forestry Depart- 

 ment of the United States will necessarily find 

 greater recognition and more practical applica- 

 tion in the future than is the case today. 



The rapidly decreasing supply of some of the 

 better known species of our hardwoods made the 

 use of other kinds, which may be regarded as 

 substitutes as it were, during late years a 

 necessity, and by this means new avenues have 

 been opened to our industry which might have 

 ■ aii-'il disastrous competition in some quarters, 

 had it not been for the fact that the entire haul 



JOHN II. IIIMMELBERGER. MOREHOUSE, 

 MO., SECOND VICE PRESIDENT. 



wood industry has been confronted with steadily 

 increasing difficulties in transforming its raw 

 material into marketable product. 



Applied forestry offers a means to prolong the 

 life of our stumpage. increase the product of 

 every acre of our lands, reducing the waste, 

 either by teaching more modern and approved 

 methods in the handling of timber or educating 

 the consumers in the uses of woods once neg- 

 lected and which are gradually coming into the 

 market as substitutes. 



Systematic and scientific drainage of the 

 great basins of the Mississippi valley, which 

 include a large percentage of our hardwood pro- 

 ducing sections, is now being suggested in a 

 number of states, both for the purpose of in- 

 creasing the value of the soil for agricultural 

 purposes and also with the object in view of 

 creating conditions under which logging can be 

 ■ ' ■ r i • 1 1 1 ■ i ,-, I for a longer period during the year 

 and at less expense than heretofore. Wherever 

 such drainage is being advocated or legislation 

 is being suggested to improve existing conditions 

 which retard the development of the country, 

 the progressive lumber manufacturer should lend 

 willing and active support to a movement which 

 will result in benefit to the country in which he 

 lives and will enable him to operate his business 

 with less friction and better final results. Then' 

 is but one step from drainage to improvement of 

 waterways, and not infrequently these two sub- 

 jects are worked harmoniously in conjunction 

 where the particular conditions make such meth- 

 ods practicable. 



The overburdened traffic of our great railroads 

 has made improvement of existing waterways 

 and creation of new ones an important topic of 

 late. Some of the foremost railroad men and 



engineers in the country, notably James J. Hill 

 and Theodore P. Shouts, admit that the only 

 solution of the present difficulty lies in supplying 

 waterways for the transportation of the heavier 

 bulk commodities which are tributary to them. 

 The railroads are in development many years 

 behind the country at large. Relieved of the 

 burden which could and should be transferred to 

 waterways, they would be better able to handle 

 the remaining traffic, which, being ordinarily of 

 a higher average class, would result in better 

 profit to them. All kinds of freight are delayed 

 in transportation because of the extent to which 

 the railroads are burdened by the excess tonnage 

 of bulk commodities. Fortunately, the produc- 

 tion of those commodities is to a considerable 

 extent in localities where they can be taken care 

 of by means of natural or artificial waterways. 

 It seems to me that it is a shortsighted policy 

 which would object to improvements now greatly 

 needed and which will be increasingly demanded 

 as years go on on the ground of cost. I do not 

 know that a 14-foot waterway from the lakes 

 to the gulf- is practicable from an engineering 

 standpoint, but I do know that an eight or nine 

 foot channel extending all along the main tribu- 

 taries of the Mississippi, including the Ohio and 

 Missouri rivers, would furnish highways for a 

 commodity such as ours which would afford 

 cheaper transportation and. strange as it may 

 seem, more rapid movement during the season 

 of navigation. I can speak positively in this 

 matter because it has been thoroughly worked 

 out and demonstrated abroad. In my native 

 country. Germany, the waterways, consisting of 

 improved rivers and canals, are to large sec- 

 tions of that country what the Great Lakes of 

 this country are to the states adjacent to them. 

 The waterways carry the bulk freight, thus leav- 

 ing the railroads to care for lighter, miscellane- 

 ous business and the traffic of higher classifica- 

 tion. When you are told that the average 

 freight rates of German railroads are higher 

 than this country you should remember that it 

 is, in part at least, because the railroads there 

 are largely relieved of the carriage of such 

 commodities as lumber, coal and grain, which 

 in the United States is in the main responsible 

 for the low ton per mile charge of which we 

 are so proud. 



In connection with the conditions which have 

 been prevailing in railroad traffic of late, it 

 might be well to mention that remedies to 

 relieve the situation have been sought in various 

 directions. Early in January a reciprocal de- 

 murrage convention was held in Chicago, and 

 your organization was represented by delegates 

 from different parts of its field. This convention 

 in which lumber interests were so dominantly 

 represented made arrangements to urge the en- 

 actment of a national law to govern the move- 

 ment of carload commodities and to promote 

 more satisfactory car service. The executive 

 committee from this convention visited Wash- 

 ington, and on January 16 and 17 held confer- 

 ence with President Roosevelt and the Interstate 

 Commerce Commission, with the result that the 

 commission w-as instructed to prepare recommen- 

 tlations for a law covering the subject which 

 will be sent to congress accompanied by a special 

 message from the president. 



At the same time the officials of leading rail- 

 roads have been formulating a car service organ- 

 ization which has for its main purpose the or- 

 ganization of a car clearing house or pool. It 

 is hoped, therefore, that such wise legislation 



LEWIS DOSTER, CHICAGO-. 

 SECRETARY. 



