x6 



HARDWOOD RECORD 



The Mahogany and Cedar Trade, 



The mahogany, cedar and foreign hard- 

 wood trade, that is, the importation of 

 woods not native to the United States, al- 

 though directly associated with and really a 

 part of the lumber industry, is nevertheless 

 a business by itself, and it is one that is 

 fraught with many difiiculties not met with 

 in the conduct of lumber operations in gen- 

 eral. It requires a knowledge of the state 

 of the markets of destination in order that 

 the producer in the foreign fields may be 

 guided in production and shipment by the 

 actual conditions which will confront his 

 shipment on arrival at consuming points. It 

 has been the lack of such information, as 

 well as the crude methods of handling and 

 shipping, which has perhaps done more than 

 anything else to retard the development of 

 this industry along lines commensurate with 

 the growing demand for mahogany and 



cedar. As an evidence of the foregoing, the 

 ISTew York market has for a considerable 

 period been short of Cuban cedar, with a 

 brisk demand current, due in the main to 

 the enormous overproduction during the 

 period immediately following the Spanish- 

 American war, when, because of the glitter- 

 ing possibilities told of, there was so great 

 an influx of new and inexperienced interests 

 in the Cuban timber fields that the United 

 States and foreign markets were glutted 

 with receipts, the business was demoralized, 

 and any possible profits eaten by heavy 

 storage charges. On the other hand, with 

 an understanding of the situation, produc- 

 tion would have been curtailed and ship- 

 ments withheld, awaiting revival of demand, 

 thereby effecting a considerable saving, as 

 the expense of storing at supply sources is 

 practically nil compared with that at des- 



tination. As in all such eases, the reaction 

 which followed was felt to the utter ex- 

 treme in both Cuban and Mexican cedar, 

 and from the high-water mark of receipts 

 in 1903 the arrivals of 1904 and 1905 were 

 successively less, notwithstanding a steadily 

 increasing demand in the United States and 

 foreign markets during those two years. 

 Thus it will be seen that, had the activity 

 succeeding the late war been governed by a 

 proper knowledge of actual consuming con- 

 ditions, the New York market on January 

 1, 1906, would not have been absolutely 

 bare of Cuban cedar in first hands, (mean- 

 ing receipts, unsold) as was the case, and in 

 fact is still the case. The following statis- 

 tics for Cuba and nearby competitors are 

 given in this connection, the figures readily 

 supporting contentions noted above: 



1892. 1893. 1894. 



15,742 21,882 7,818 



1892. 1893. 1894. 



5,460 4,921 4,099 



1892. 1893. 1894. 



31,075 47,681 12,051 



1892. 1893. 1894. 



76,828 80,078 106,545 



Summary of Arrivals for Past Fourteen Years at New York. 



(Given in number of logs — not feet.) 



MEXICAN MAHOGANY. 



Happily, however, this overproduction and 

 the consequent low ebb of trade has been of 

 value in that it awakened the substantial in- 

 terests engaged in the business to the neces- 

 sity of a more careful observation of market 

 conditions which, coupled with closer com- 

 munication between seller and buyer, has 

 tended to thwart any recurrence of such a 

 state of affairs, and with a proper arrange- 

 ment for intelligent market advices from 

 the various consuming centers the producing 

 end of this business can be carried on to- 

 day with fewer difficulties and far more 

 opportunities of profit than ever before. 



Now, as to the general needs of the Amer" 

 iean and foreign markets, present and pros- 

 pective, as regards an increased supply of 

 mahogany, cedar, etc., it need only be cited 

 that there is a constantly expanding mar- 

 ket for these woods as native hardwoods, 

 through enormous consumption, are so stead- 

 ily advancing in price that mahogany and 

 cedar are available at no great increase in 

 cost, and are therefore entering rapidly into 

 lines of manufacture where a few years ago 

 the wide difference in price in comparison 

 with other woods made their use prohibitive. 

 And not only this, but indications point to 

 advancing values as the demand increases. 

 Hence, the time seems propitious for in- 

 creased production conducted in the right 

 way, and as Cuban products in mahogany 



and cedar are in favor both here and abroad, 

 the close relations and rapidly improving 

 methods of transportation from the island 

 make the future possibilities of profit in 

 Cuban timber development seem bright. 



It may be said, by way of comparison 

 with the Mexican product, that Cuban ma- 

 hogany runs somewhat smaller than Mexi- 

 can but is much harder, and while the lat- 

 ter is adaptable for such use as furniture, 

 etc., the Cuban wood is in demand for car 

 finish and similar lines where strength and 

 beauty combined are essential. The Cuban 

 production of both woods is much greater 

 than that of Mexico or any other field, but 

 in consuming markets competition of other 

 species has but little effect upon its sale. 



Another important feature of the general 

 mahogany traffic is the fact that the New 

 York market is the best in the world for 

 fancy, or more correctly, figured wood, and 

 yet, under the present methods of conduct- 

 ing the business, practically all the finest 

 figured wood reaches New York via Liver- 

 pool and the English markets, being sent 

 there in the log and resold for New York. 

 Eecently a fancy log sold as high as $3.50 

 per foot in Liverpool for shipment to New 

 York. Certainly such roundabout methods 

 seem to call for new blood in the producing 

 trade, which will encourage the shipment 

 of figured wood direct to our home markets. 



It is true that finely figured logs are rather 

 scarce, but the fact just mentioned is but 

 one of many which might be cited as ex- 

 plaining the future possibilities of the 

 Cuban field if intelligently handled. The 

 African product is all handled through the 

 English markets as a natural sequence of 

 their geographical location, but the direct 

 shipment to this country of the most desir- 

 able logs should receive more attention, and, 

 in fact, has of late, there being at present 

 two cargoes of African wood now unload- 

 ing at New York which came direct. 



Reverting again to cedar, the foregoing 

 table of figures shows a steady falling off 

 in the receipt of Mexican cedar, which is 

 but another argument in favor of the pos- 

 sibility of profit in the further development 

 of Cuba's resources. Then again, the fig- 

 ures given below show that the total re- 

 ceipts of Cuban mahogany for the past year 

 exceeded 1904 by 2,000 logs, and yet on 

 January 1, 1906, the stock in first hands 

 was the smallest for some time. 



Viewed from the standpoint of consump- 

 tion the products of Cuba, while greatly ex- 

 ceeding all others in volume, are active sell- 

 ers and seldom a drug on the market. 



The following is a comparative table of 

 total receipts from all sources for the past 

 five years, to May 1, 1906: 



