Lumber

By H. M. COCHRAN, of the Union Lumber Co. Address delivered before the District Purchasing Agents Conference San Francisco

H. M. Cochran

Having been requested by your Association to deliver at this meeting an address on the lumber industry, I 'rvould like to deliver this in such form as will be of general interest to you as Purchasing Agents.

As those of you present are familiar with the species and kinds of wood which are nsed in the various industries which you represent, I will not take up your time by going into the description of the various species, etc.

Rank of the Lumber Industry Among Great Industrial Groups

Based upon the number of rvage earners and also upon wages paid, the lumber industry group, including lumber and its remanufacturers, stands third in the list of the great industrial groups.

Taking into consideration the capital invested, the lumber group is fifth in the list.

Lumber Consumed in the United States

The amount of lumber consumed in the United States and exported, reached the peak of 46,000,000,000 feet in the year 1906. Since then there has been a gradual decline. In 1922 the consumption and exportation were estimated at 35,000,000,000 feet. That rvould be a shrinkage, as I'ou rvill note of 11,000,000,000 feet in the consumption of lumber used.

The States producing the largest amount of lumber are:

Production of

Segregating this into regions to give you an idea of the location of production, the lumber production by regions in percentages of total United States production is:

Rocky Nlountain States

Makingatotalof ... ....1n%

Of this grouping Washington and Oregon produced 26 per cent of the total United States lumber production for the year 1920.

Lumber Exports.

The exportation of lumber is nearly a constant figure. It does not vary much from two billion feet per annum. It rvas slightly in ixcess of that amount one or irvo years and for a lJng period of time has been in excess of one billion feet.

In the year 7922, the United States exported 1,532.000,000 feet of lumber, rvhich rvas about 4.4 per cent of the production of the country.

In the year 1913,, 2,550,000,000 feet was exported, or 5.8 per cent of the production. This u'as the peak of exporta- tion. The exports have not exceeded this amorrnt since the year 1913.

Per Capita Consumption of Lumber in the United States

Sometimes a per capita consumption of lumber is considered and rve grasp that more readily than rve do lillions of feet, rvhich are rather large amounts.

In the year 1909, the per capita consumption of lumber in the United States amounted to 485 feet; in the year 1920, the per capita use of lumber in the United States rvas 313 feet.

Consumption of Lumber and Distribution of Same for Railroad, Industrial, Agricultural and Other Uses

Consumption of lumber and distribution of same for railroad, industrial, agricultural and other uses, will orobably and export of the year rxJ7, 46,000,000,000 feet, and deduct the export 2,000,0m,000 feet, it would leave for home consumption 44.000,000.000 feet. Deducting 5,000,000,000 feet for use as cross' ties and an equal quantity for other railroad uses, including the use for box,cars., fences, buildings, bridge .ll'ork, etc., making a total of 10,000,000,000 feet.

Would leave for use in industrial, agricultural and home building work 34,000,000.000 feet.

Since the years 1906 and 1907, there has been a gradual reduction in the consumption of lumber in the United States; in 1920, the consumption being 33,800,000,000 feet, exports deductible.

If we deduct from this 33,800,000,000 feet, for export l,550,000,000 feet, it would leave 32,250,000,000 feet. Deduct from this for railroad work 10,000,000,000 feet, rvould leave for other general :uses 22,250,000,000 feet, as against 34,000.000.000 feet in 1907.

- (The use of lumber in railroad work is nearly a constant figure as is also the amount exported nearly a constant figure.)

The housing problem at this time is not only serious in this country, but it is also a serious problem todav in every civilized country in the rvorld. The balance of the world has more need of lumber at this time than it has had for many years. Russia is practically out of commission as an export -country. Prior to the World War Russia exported about 50 per cent of the rvorld's imports of lumber; i large amount of this going into Europe and other countries thlt we have never been very successful in exporting to from this country.

Increased Demand for Exportation of Lumber to Japan

The Japanese market is'undoubtedly of interest to the lumber industry and it also would affect the policv of the Purchasing Agents. The Japanese market has been importing from the llnited States about 40,000,000 feet per rnonth, or a total of less than 500,000,000 feet per annum-.

Their additional requirements, due to the earthquake and fire may be in excess of 100,0@,000 feet per month or l,-

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200,000,000 feet per annum, or a total requirement in excess of 1,700,000,000 feet per annum.

These emergency requirements have been variottsly estimatecl at from one billion to three and three-quarters billion fe6t of lumber for replacement work. Preliminary estimates take a very 'lvide range and until they get more data as to the amount of rebuilding, and make up their program tor the same. there rvill be considerable variance in these estimates.

Japan has been in the custom of ordering large sizes of salvn lumber, and also logs and flitches, these being remanufactured in Japan for general use; the remanufacture taking place either in a central location, or in some cases on the job where the lumber is used.

An effort rvill be made to induce the Japanese bttvers to order a larger variety of sizes so as to enable us to ship them a larger range of our production, thereby increasing their facilities for building more rapidly.

Expoits of lumber to Japan will be afiected by the facilities of acquiring tonnage for the movement of this volume of lumber, and also by the port facilities of Japan to handle this increased volume of lumber, in addition to the regular volume of business lvhich they will be called upon to take care of.

In considering their facilities for taking care of this volume of lumber, we might take into consideration, as a matter of comparison, the port of Los Angeles, which is and has been for'a long period, the largest lumber port in the world. This port, for more than a generation. has been increasing its facilities for receiving and shipping lumber. Yet, at some periods last year when they were receiving approximately 100,000,000 feet of lumber per month, it rvas almost impossible to keep the dock space clear and forward the lumber from the dock as rapidly as requiied. During this year, the amount of lumber handled at this port has been increased to an amount in excess of 100,000,000 feet per month, and this volume is being well taken care of, but only by using every fpcility they have to the utmost. In taking into consideration these facilities, we should remember that it has taken years to build them up to the state of efficiency which they have at this time.

Consldering the port facilities of Japan, and the damage rvhich has been done in Japan, it would seem that it might tax their capacity to handle an aclditional 100,000.000 feet of lumber per month, in addition to the present volume, rvhich they are importing, and in addition to the regular volume of business. If they are able to consume, and il we are able to furnish them an additional amount of 1,200,000,000 feet of lumber per annum, it would require about 3 per cent of our total lumber production, based on the year 1922, to take care of the increased demand.

The latest advice regarding exports of lumber to Japan is that the amounts shipped for the balance of the current year u'ill not be largely in excess of the amount which has been shipped earlier in the year, which, for the last six months' period average about 40,000,000 feet per month.

I arn ach'ised that recently tr'vo cargoes of lumber have been shipped from this Coast to Japan, amounting to aborrt 5,000,000 feet board measure-these shipments being largely in smaller sizes suitable for small buildings, and. to a certain extent, for temporary construction.

Total Stand of Saw Timber in the United States

The question has often been asked as to the amount of stancling timber in the United States.

The total volume of stancling sau' timber in the Unitecl States has been estimated at approximately 2,214 billion feet. This does not include a large percentage of standing timber,'ivhich, while not classed as saw timber, is, however, suitable for prrlp rvood, for cord u'ood and for other uses.

In the year 7920, r,r'ith the single exception of Nerv York, all of the 12 States showing an increase of production were west of the Great Plains.

Stand of Saw Timber in the Pacific Coast States

Many of you present are probably interested in the stand of timber on this Coast and as to the percentage which it represents compared with the balance of the timber in the country at large.

The stand of saw timber in the State of Oregon is estimated at 493,700,000,000 feet. This is saw timber that I am speaking about, gentlemen, not of the total stand.

Washington has 334,000,000.000 feet.

California has 313,331,000,000 feet.

Or a total of 1,141,000,000,000 feet, which is practically one-half of the stand of saw timber in the United States.

Commodity Values

In considering commodity values at this period, the decreasing power of the dollar should be kept in mind. Probably the comparison of the change in price of one commodity rvith other commodities is of value in arriving at the relative change in value of that particular commodity.

I note in the Banker's Economic Service, dated Februar-r' 6, 1923, a comparison of prices of certain commoclities as of the date of Januaiy, 1923, compared with the average price of those commodities for the fir'e-year period preceding the war. These commodities have advancecl over pre'rvar prices as follows: llemlock 73% Pine . ..12sqo Oak ..135Vo Cenrent ......122%

Brick . .219%

For a long time in this country there r.r'ill be lumber for all reasonable needs. The increase of lumber prices over pre-war time prices is in line rvith, and no more than, the increase in the price of other basic building materials such as brick, concrete, pig iron, cement, etc. Wheat and co-rn and some .other agricultural products are, for the time, on a lolver'price basis than lumber, but for quite a period during the lr'ar they rvere on a higher basis.

Conservation of Lumber

There is a yast amount of natural reforestation. especially on the West Coast and in the Southern Pine Regions, and great efforts are being made by lttmber operators'and forestry officials to keep fires out o{ the cut-over lands as it is recognized that fire is the greatest enemy of reforestation. There is a start being made to assist nature in reforestation by the planting of trees. Ilxperience in some of the European countries shorvs that this artificial reforestation is practical in some regions. In regions in this country r,vhere the conditions are favorable it probably rvill be practicecl more and more by private parties.

At Madison, Wisconsin, there is a rvonderful institution maintained by the United States Forestry Service-the United States Forestry Products I-aboratory. Its aim is to educate consumers in the proper utilization of the products of our forests, and to this end it is conducting experiments in all of the various lvoods and trying to spread the information obtained from such experiments.

At Berkeley, the Forestry Department of the State University is doing similar work and is also collecting information about, and cotrducting experiments in, reforestation.

I understand the State Universities of Washington and C)regon have similar departments.

The rvork of such jnstitutions is of inestimable value and tosether with cooperation with operators in the Drevention of fires in timbered areas. is the practical aid that Government can give to the great problems of reforestation and tlre full utilization of our present forests.

Gentlemen, I thank you.

Lumber Craft Goes on Rocks at Coos Bay

The steanrer C. A. Smith, loaclecl rvith 1,500,000 feet of lumber, struck on the sultmerged rocks of the North Jetty at the entrance of Coos Bay on the morning of December 16, and was a total loss. Nine of the crerv rvere lost when a life boat capsizecl as it rvas lteing lolvered into the water. One man, the first mate on the tug Oregon, ,rvas also lost.

W. H. (Bill) Woods, of the Coos Bay Lumber Co., San Francisco, rvho was at the companv's mill on a business trip at the time of the lvreck, and who was also a member of the rescue crew that brought in the last sevenl men who were on the rvrecked ship, stated that on the day of the wreck, several attempts rvere made to rescue the abandoned crew but because of the roughness of the sea nothing could' be done to effect a rescue. The last seven men rvho were rescued u'ere brought in on December 17, the day following the wreck, after spending the night on the wrecked ship. Willairn Derrrman. Chairman of the Board of Directors of the Coos Ray Lumber Co., rvas also a rneml;er of the resct/e crelv that brouglrt in the last boat of abandoned seamen.

Henry Kavelage On Northwest Trip

Henry F. Kavelage, sales manager of the rail department, of the Trower Lumber Co., San Francisco, is in the Northwest on a business trip. IIe spent Christmas Day rvith his family in Portland. I-Ie rvill return to California after the first of the Nerv Year.

FRANK O'CONNOR ELECTED PRESIDENT OF DOUGLAS FIR CLUB

At the last meeting of the Douglas Fir Club of San Francisco, the follor.ving officers rvere elected to serve during the year 1924; Frank O'Connor, Donovan Lumber Co., President; J. Walter Kelly, Chas. R. McCormick & Co., VicePresident; and Frank Paramino. Paramino Lumber Co., Secretary. The directors rvho rvere elected to serve during the ensuing year are: Walter Sutton, Pope & Talbot; George Weir. Coos Bay Lumber Co.; Frank Troler, Trower Lumber Co.; Frank O'Connor, Donovan Lumber Co.; Frank Paramino, Paramino Lumber Co.; James Hall, Chas. K. Spaulding Logging Co.; and A. B. Johnson, A. B. Johnson Lumber Co.

GEORGE C. BURNETT A BAY DISTRICT VISITOR

George C. Burnett, prot.ninent San Joaquin Valley lumberman, accompanied by Mrs. Rttrnett, s1>ent the Christmas holidays as tl-re guest of Mrs. Rurnett's sister, Mrs. White of Berkeiey. While in the llay District, Mr. Burnett spent some time calling on the San Francisco trade.

Postlethwaite Leaves Slade Lumber Company

Mr. Russell Postlethu'aite, for the past six months, city salesman for the Slade Lumber Company, in the Los Angeles territory, has resigned from that position, and has gone to Portland, to enter another position, not in the lurnber business.

uIANTED

Outside salesman to call on contractors and home builders. IVIust be experienced lumberman and salesman. Good salary to one who can deliver the goods.

Montgomery Lumber Co., Culver City.

REDWOOD RAILS DI.IG TJP AT SACRAMENTO

SACRAMEN:I'O, Dec. 22.-Workmen excavating for a sewer along Seventh street uncovered the rails of a horsecar line that operated along I street in 1861, under the second street railway franchise granted in Sacramento. The rails rl'ere of 4x6 incl-r redwood, rl'ith a steel band along the top and one side, ancl rvere well preserved. Workmep struck the rails about eight feet belorv the surface of Seventh street which was filled in after the flood of 1860-61.

E. T. FORD RETURNS FROM SOUTH AMERICAN TRIP

E. T. Ford, manager of W. R. Grace & Co., San Francisco, together rvith I\{rs. Ford, returned from their trip to South America just prior to Christmas Day, so as to spend the holidays with their boys in San Francisco. Mr. and Mrs. F'ord returnecl on the Kroonland, taking passage on the boat at Panama. They l-rave been arvay from California since October l.

Pete Noonan A Bay City Visitor

Pete Noonan, of the West Valle)' Lumber Co., Woodland, spent Christmas Day in San Francisco. While in the Bay District, Pete spent a ferv days calling on the trade.