THE EUROPEAN WAR AND TIIK LUMBER TRADE 



low grade product either in the state in increasing carrying charges. Tux< and 



which it is produced or in neighboring the cost of fire protection have increased 



states on a low r freight rate, hence the yearly, and in order to prevent th' 



elimination of the farmer as a consumer charges and also interest on the invest- 



is of vital consequence. ments from compounding and auto- 



Another strong element mitigating matically doubling the cost of the raw 

 against the Southern lumbermen is the product every nine or ten years, stump- 

 fact that the naval stores crop, valued age owners have increased their mill 

 at nearly thirty million dollars, has not capacity to a point which now exceeds 

 been successfully marketed. The bulk the present market requirements. The 

 of the naval stores products are sold in over supply of lumber has led to such 

 Europe, and the elimination of the keen competition, during the present 

 greater part of the demand from this business depression, that lumber prices 

 region has caused financial loss not only f.o.b. mill are now so low that the best 

 to operators but to thosuands of em- grades are selling for about $22 per 

 ployees who were discharged at an thousand board feet; an excellent qual- 

 earlier date than has been the custom, ity of building lumber for about $8 per 



Competition from sawmills in British thousand feet; and low grade lumber 



Columbia, and over-production in local for $3.50 per thousand feet. The aver- 



mills, with the resulting unloading on age price per thousand feet, f.o.b. mill 



the market of large quantities of him- for all grades marketed has not aver- 



ber are among the chief factors which aged, during the present year, more than 



have wrought havoc with the lumber $11, a drop of several dollars over the 



industry in the Northwest. average mill value of two or three years 



The removal of the tariff on forest ago. 



products has been a severe blow to The lumber-consuming population 



lumbermen on the Coast, since it has within a given radius of the western 



opened our western markets to Canada manufacturing centers is much less 



an especially unfortunate circum- than for an equal radius in the other 



stance at this particular time. The in- lumber-producing centers of the United 



dustrial depression prevailing for the States. The high freight rate into the 



past year in Canada has greatly reduced most desirable consuming centers, name- 



the local demand for lumber and ly, the great prairie region of the Middle 



shingles, and, in order to keep their West, combined with the very low 



mills running, Canadian lumbermen price at which lumber is now sold, due 



have made a strong effort to dispose of to unrestrained competition, has prac- 



their products in the United States. tically made it impossible to conduct 



Some idea of the extent of our trade the business so as to yield even a small 

 in Canadian lumber may be gained by profit. It will take more than a revival 

 an examination of our imports previous of good business conditions to patch up 

 to and following the removal of the the badly demoralized industry in this 

 tariff. Canada, chiefly British Colum- section, and some means must be found 

 bia, sold in this country, during the to increase the efficiency of the market- 

 first six months of the present year, m g methods and curb the ruinous corn- 

 nearly 170 million shingles more than petition which now threatens to sap the 

 she sold to us during the entire year of ^f e o f ^e industry. 

 1913. This was an increase of 217 The money stringency which has pre- 

 per cent. The lumber imports _ from vailed in th - g COU ntry" during the last 

 western Canada, are still more striking three months hag been reflectcd most 

 those for the first si:: months of 1914 kedly in the amount of btdldin 

 exceeding the total for the entire, vear of , 

 1913 bv 246 per cent whlch has been done ' re P orts tor the 



The 'western lumber manufacturers, month of September showing a decrease 



as a whole, are facing serious financial of from 



difficulties due to their heavy invest- previous month, 



ments in stumpage and the rapidly decreased banking resources 



