Conditions in The California Pine Industry

By Mr. C. rStowell'Smith, White and Sugar ,Pine Secretary-Manager, California Manufacturers Association

The California White and Sugar Pine industry confidently faces the coming year with every evidence of sustained demand for its diversified products at profitable prices.

For the past several years there has been.a gradually increasing production in the newer soft pine regions to take up the slack caused by a reduction in the old. This will undoubtedly continue until an equilibrium of supply and demand is reached for these particular woods. In some localities there has been a tendency to develop new lumber supplies at a faster rate than seems justified in view of the sustained production of older regions. This situatio:r will eventually correct itself and is now being met to some extent through reduction of cut in the North Pacific Coast States.

In California and Southern Oregon, the woods produced are somewhat of a specialty nature and therefore do not respond so readily to the demand or lack of demand for general lumber supp,lies. To be sure all lumber products are affected in some degree and price tendencies in this region bear some relation to lumber prices elsewhere. Ifowever, the fact that certain woods have apparently been produced in the greater volume than immediate demand justifies, does not necessarily affect the situation in this territory.

Due to exceptional,ly favorable weather conditioni the local pine industry was able to open its logging camps early this spring and no serious physical interruptions to production have since occurred.. This means that a considerable volume of 'lumber wilt be available to take advantage of most favorable drying conditions during the summer

The mills can make a normal cut and close down operations early in the fall before the weather conditions make drying difficult. The industry generally figures on a certain production and already plans are being made to close early at the seasona'l mills. Some mills that operat€ practically throughout the year are reducing production now so that the total cut from the entire industry will probably fall short of the amount that should reasonably be expect-ed in an expanding industry. In addition, some of the smaller mills, not being strongly financed have been closed through economic conditions which do not affect the larger ones.

Production in the pins region of California has shown a steady increase since 1921. In .Southern Oregon there was an increase up to 1923, a considerable reduction in 1924, and a partial-recovery in 1925. Taking the whole territory together, there had been a constant -increase with the eicep- tion ol 1924.

Stock conditions, as compared to production have shown the following tendencies: In the early summer of. 1924 there was a little over half a million ieet of lumber uncovered by orders. Due to decreased cut in 1924 and less volume available the stocks for sale in 1925 were reduced by a.hundred million feet. ln 1925 the cut was increased over 200,000,000 feet and a corresponding increase has continued into 1926. In s,pite of thii greaier production, the unsold stocks on hard in the early summer oi 1926 were less than 500,0C,000 feet.

In view of the more or less hand-to-mouth purchasing of lumber which always accompanies periods of uncertain market conditions, this showing reflects great credit on the sales forces of the pine mills. Undoubtelly the aggressive national advertising of the pine group has materia'lly helped as is shown by the constant expansion of sales in remote markets. Another contributing factor is the successfrrl maintenance of lumber standards, ably assisted by the Association ins,pection force.

New cus,tomers are constantly being added to the old and the public is learning that any "Cal" Pine product is right or will be made righl. This giowing confidence means growing sales and accounts in part for the early 1926 srrmm_er shipments which exceeded the previous year by nearly sa%.

San Francisco Lumber Receipts in 1925

The San Francisco Chamber of Com,merce keeps an accurate record of the lumber received into that port, both by rail and water, and the figures they furnish for the year L925 arc very interesting, probably totaling more than the average lumberman would suppose.

Washington and Oregon shipped into San Francisco that year by water, 750,000,000 feet of all species.

The Redwood mills of Northern California shipped into the city by the water route a total of 143,830,000 feet.

Thcre came into San Francisco by rail that year a total of 156,851,0fi) feet. This includes everything in the shape of lumber, from all directiorns, and of all species, including hardwood lumber from the east. :

The total is 1,051,021,000 feet of lumber that came intd San Francisco in 1925 by rail and water.