Vagabond Editorials

By Jack Dionne

Here's one for the book. "How is business?" I asked a doleful looking lumber friend of mine. "Dull," he answered, "as dull as a day in heaven." Of course, he'd nevm been there. He'd simply read the orthodox descriptio4s.

Every now and then, and here and there, you hear of a competitive s,ituation where some of the bunch get tired of the tactics employed by others in the same gang, get mad, and start out by the famous price-cutting route to "give them a ride." How often have you heard one side say: "We'll cut prices until tbose price cutters get sick'of it." But it never works out, some way or other, with any sort of satisfaction. Time and experience has proven that you can't solve situations that way.

isn't in the cards.

I heard two lumbermen talking that ve'ry subject one day. One of them said: "I'm going to put my prices down so low that these price cutters can't meet them and live, and I'm going to keep them there until I teach those birds a lesson." And the other, who had been places and done things, laconically remarked: "You won't live that long." ***

We see all about us in California today added proof of the well known and experience taught fact that people do not buy or build when materials are low. Any building merchant in any branch of the industry can tell prospective builders today that lumber and all the other building materials can be bought for less money today than, ever before, that they can be bought for far less than their value, that there is every reason why they should increase in price, and that it would not be at all surprising if most of these materials were valued from 50 to 100 per cent higher a year from now than they are now. And that sales talk will avail not at all. * )r ,<

But wait until conditions begin bulging upward. All of a sudden materials begin climbing the hill. Everv day they go higher. And THEN, and not till then, does the building urge seem to come. People rush in to buy and build on a rising market. They always have. They always will. The fact that they can get materials today for far less than their actual value-for far less than those materials have any right to be sold for-makes n9t the least difference. It should, but itdoesn't.

One stout reason why Northwestern lumber keeps pouring into California regardless of local needs, is the great volume of export stock that has been shoved back into other water markets by the tariff against American lumber that Japan put into effect last year. The Northwest used to ship 500,000,000 feet a year to Japan, and that business steadily increased. The tariff cut off about 400,000,000 feet of that desirable business, and it has to go somewhere else. And, since that business was mostly supplied by the same tidewater mills that supply California, it made pressure to the South a little greater.*

It is understood that Jap business men have secured control of much lumber and timber production in Russia, and the tariff was secured by them to give their. Russian stock a monopoly in Japan. They succeeded. So the tidewater mills of the Pacific Northwest took a terrific thrust below the belt from Russian lumber in that direction.

But that was not the only thrust they are getting from this same source. For the past two years Russia has been invading New York territory with softwood lumber coming across the Atlantic from Baltic ports. This competition has already brought consternation to American lumber producers, and is the chief basis for the proposed lumber tarifr. And, of course, the lumber and timber the Pacific Northwest mills have been shipping around to the New York territory by water, is feeling keenly the competition of this Russian lumber. So Russia is shooting these same mills from two directions.

Russian lumber is sold dirt cheap in New York. And it is splendid manufactured lumber, sawn carefully and exactly to measure. And the timber is Baltic Spruce and Pine, good looking wood. Gi course, Russia can sell it cheap. They sto'le the timber from its ourners, and manufacture the lumber at starvation wages. Most of the cost of the lumber in New York is ocean*freight.

California produced lurnber has felt no direct effects from these two Russian developments that have so hurt the Northwestern mills. Lumber products of this state enjoyed no Japanese export business at any time, nor have they met the Russian competition on the Atlantic Coast as yet. Something for the Redwood and California Pine folks to be grateful for, at any rate.

Here's a thought. Ninety per cent of the lumber that California buys and brings in from other parts of the world is unseasoned. And about 100 per cent of all the lumber that California manufactures and ships out to supply other parts of tlre world is thoroughly seasoned. We ship it dry, but buy and use it green. Funny, isn't it?

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