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Published in the Interest of the American Hardwood Forests, the Products thereof, and Logging, Saw 

 Mill and Wood- Working Machinery, on the 1 0th and 25th of each Month, by 



THE HARDWOOD COMPANY 



Edgar H. Defebaugh, President 

 Edwin W. Meeker, Managing Editor 

 Hu Maxwell, Technical Editor 



Entire Seventh Floor Ellsworth Building 

 537 So. Dearborn Street. CHICAGO 

 Telephones: Harrison 8086-8087-8088 



New r 



•WTANI 



Vol. XXXVIII CHICAGO. JULY 10, 1914 No, 6 



Review and Outlook 



General Market Conditions 



WHILE IT CANXOT BE SAID THAT OPTIMISM is rainpaiit 

 in the ranks of the lumber trade right now, the continued 

 rumors of a slight looking up in inquiries and sales are too insistent 

 to be overlooked. These rumors are too spotty t6 give the impres- 

 sion of a general uplift in' the lumber situation, and are probably 

 more truly an indication presaging favorable developments later 

 than they are proof that business right now is actually improving 

 noticeably. 



The most encouraging thing which shows in reports from various 

 parts of the country during the last couple of weeks has to do 

 with the building records in a great many of the bigger cities. 

 A satisfactory number of cities and large towns scattered mainly 

 east of the Mississippi river have records for the month of June 

 which not only compare favorably with the preceding month but 

 show to distinct advantage as compared with June of a year ago, 

 at which time building was fairly active. Even the city of 

 Chicago, which has been very hard hit during the last six or 

 eight months by unfavorable developments in its building trade, 

 reports conditions in that line to be all that can be expected, 

 lu fact, reports for Chicago are well in advance of figures for 

 June of 1913. 



The importance of this condition is entirely apparent, but its 

 effect upon the lumber business directly should not be looked 

 forward to at too early a date. These figures merely cover permits 

 for building which will be started in the two or three months 

 following June and the active call for building materials, rough 

 lumber and other articles will probably not result immediately. 

 However, one direct result has been a more active inquiry on the 

 part of the yard trade, which is making more definite efforts to 

 get in touch with the situation, although it has not as yet shown 

 a disposition to open up generously with orders. 



Two other factors are showing up in relief against a more or 

 less somber situation, one being the effect of the unusual crops on 

 the lumber business directly, and the other the time-honored sub- 

 ject of the freight rate increase. Of these two the most tangible, 

 as far as its effect upon lumber is concerned, is the former. In 

 fact, the only consuming factories using hardwoods which are an- 

 nouncing themselves as busy are the wagon manufacturers, a great 

 many of whom have within the last two or three weeks put on 

 full shifts of men resuming full time operation. This is directly 

 the result of the excellent crop reports and the necessity for addi- 

 tional means for moving grain and taking care of other farm work. 



Too much stress is probably laid on the possible effect of the 

 settlement of the rate controversy as a decision favorable to the 



railroads would probably not result in so active an opening of 

 purchases as is generally anticipated. There is no question that 

 the railroads are going to continue in business whether they get 

 this increase or not, and there is equally little room for doubt 

 that continuing in business they will within a reasonable time be 

 purchasing large quantities of supplies of all kinds as they are 

 practically down to nothing. As a matter of fact the retrench- 

 ment policy is probably not due so much to the rate controversy 

 as it is to the generally unfavorable condition of shipments which 

 have unquestionably fallen off tremendously in the last year or so. 



Thus, while the commission's decision favorable to the railroads 

 will, if it materializes, hasten the return of that important con- 

 suming element to the purchasing field, it is not the all-powerful 

 factor which it is given credit for being. In fact, with such a 

 favorable decision it is rather doubtful if the railroads will be 

 actively purchasing until business conditions are in a more favor- 

 able light. Nevertheless Hardwood Record favors the granting 

 of all privileges that can be granted with fairness to all parties 

 concerned because of the favorable moral effect it will have on 

 business, and the fact that it will put the railroads in a position 

 where they will have to purchase in order to bear out the truth 

 of their contentions. 



There seems to be a prospect of a fairly early settlement of 

 legislative questions at Washington along lines, which, if Presi- 

 dent Wilson's policy of conferring with business men means any- 

 thing, will meet with at least the partial approval of the business 

 interests. The present so-called psychological condition is the 

 result so directly of the uncertainty of legislative development 

 that the settlement of the big questions now before Congress, no 

 matter how they are settled, if settlement is speedy, will go a 

 long way toward nullifying this psychological influence. 



Inasmuch as full developments in none of these big questions 

 can be anticipated before the fall months, it is doubtful if the 

 business situation will begin to resume the right proportions until 

 that time. However, Hardwood Record reiterates its belief in a 

 healthy development in industrial and commercial enterprises at 

 that time, and believes that its assumption is based on logically 

 favorable conditions. 



None of the various reports on changes in movements of different 

 kinds of hardwoods can be pronounced general. Among these de- 

 velopments have been more favorable calls for the better grades of 

 gum. Some of the poplar producing sections seem to feel that better 

 grades of poplar are getting back into more active request and are 

 viewing this development quite hopefully. The increased lines of 

 black walnut furniture shown at the expositions are sufficient proof 

 of the development in demand for walnut. 



