Douglas Fir in California

By Walter C. Ball, J. R. Hanify Co., San F'rancisco

_ Douglas Fir has played just as important part in the California lumber trade during 1925 ai this wood has en- joyed for many years; i.e. insofar as volume is concerned (both in_relation to mill cut and total lumber consumption in this State). The total shipments of Fir to Califbrnia have decreased only slightly from the volume of the first six months of 1924.

Notwithstanding the above facts, prices are today lower than during January of this year but slightly higher than during lune, 1924. There has been very little range between the high and low prices for the past year, yet 6n the whole, they were far below a satisfaitory- level- from the manufacturers' standpoint.

Mills in various sections have, at times, been favored with a greater volume of orders than other sections because of' tonnage arrangements for Atlantic Coast and foreign trade, thus causing enforced curtailments on the part.of less favored mills. These curtailments have been more or less spasmodic but nevertheless of considerable importance to the industry as a whole (apparently being the factor which held prices from falling to the extreme low levels of last year ).

The total lumber tonnage laid up at one time during the last year has varied between fifty-six vessels of a lotal capacity of approximately 60,000,000 feet per trip to about twenty-one vessels capacity of approximately 18,000,000 ft. At present about twenty-seven vessels are tied up at San Francisco. '

Buyers in any given territory are necessarily interested in the relation of production and orders but more vitally concerned with the supply available in their own market, hence the surplus of tonnage has been a very large factoi in-providing a slight over-supply of Fir in the"markets taking yllet delivery. This suiplus has made buying for future delivery unnec-essary except to a small degree" and held prices at unsatisfactory levels.

The Atlantic Coast has taken a large volume of the pro- duction of the northern mills but piices for shipmeni to that market have fluctuated in sympathy with California prices, while in times past, California has been compelled to pay prices more in keeping with the Atlantic trade.' This reversal has tended to lower prices in seneral.

With the volume sold in o[her mark"ets not sufficient to :.ause .a deciding balance in favor of orders over produc_ tion, the immediate future does not point toward any relief for the producer .although only a slight increase in'orders would improve conditions froni the mill to retailer not onlv in California but in other markets where they are eniovinl a fair consumption. A firm or rising market il*ays redecti on the entire trade.

Mills will close down as usual over July 4th and some for a longer period (using the time to mak6 repairs). Tust how much curtailment will result we will leirn litei al_ though it-a-ppears that we may expect a larger curtailment than usual because of lack of incentive to resime operations.

It is presuming too much to forecast the future ,bui believe it safe to say that prices are not. far from thg lbwest level we-.can expect until there is a change in the entire cost of living. We must continue to meCt conditions as they exist knowing that the industry is sound and will return to a profitable basis through eionomic laws.