Philippine J[n/,ogon!

Bv W. G. Scrim, Los Angeles United States Representativq Findlay-Millar Timber Co., Manila, P. l. President, Philippine Mahogany Association lnc.

The past twelve months have been rather hard ones for the Philippine lumber industry. We believe, however, it has suffered less than other lumber operations for the reason that shortly after business started to decline a concerted effort was made by the mills to curtail production. Some mills closd down altogether for several months and practically all of the others went on a short day basis. Then again, three large mills destroyed by fire, caused a further reduction in production. The larger mills as a rule have their export cut contracted for for some considerable time ahead, so that by the time these contracts were completed there was no great quantity of export stock on hand.

For a time, the Manila and Japanese markets slumped off and as these two markets took care of the low grade production, the mills found themselves being loaded up with low grade stock which was not suitable to ship to foreign- markets such as the United States and Europe. Both the Manila and Japanese markets started to pick up shortIy after the first of the year, however, so that we find, at the present time, they are able to take care of the current production of low grade. About the same time, the European and South African trade took on a firmer tone and the mills found this outlet absorbing a very considerable amount of their high grade production, so that along with what was moving to the United States and Canada, it kept export stocks down to the minimum.

While the amount of F.A.S. Grade moving to the United States is, perhaps, less than 50 per cent of normal, the amount of No. I and 2 Common being sold is very satisfactory. One reason and, perhaps, thi principal one, for the large consumption of No. I and 2 Common Philippine being used here in the face of ridiculously low prices quoted for domestic hardwoods is the quantity of cliar cuttings in Philippine as compared grade for grade with other woods. Furthermore, the public has become so familiar with Philippine Mahogany that they demand it more and more. It is interesting to travel up and down the Pacific Coast States and note the quantity of this wood being used for trim arid furnishings in the construction of new buildings. I believe that if a survey were made the use of Philippine Mahogany would be found to exceed B0 per cent of all wood so used. I am also sure that a survey of all woodworking plants would show not less than 9O per cent of them using Philippine Mahogany.

The branch of the Fisher Body Company at Seattle is now using Philippine in the construction of auto and truck bodies and if it proves successful, which we feel sure it will, it will mean another tremendous outlet for this wood.

The now famous "case" of nomenclature of Philippine Mahogany which has been before the Federal Trade Com- mission for the past five years has not yet been passed upon by this body but the decision should be handed down shortly. The interference of the Federal Trade Commission in this commercial practice, while it has had no efiect on the Pacific Coast trade in the wood, has unquestionably been the means of its more general use in the eastern United States. A favorable decision would, therefore, without question, increase the consumption in that territory to a considerable degree. At the present time it is the most popular wood for boat construction on the Atlantic seaboard and Great Lakes district which, as everybody knows, is quite an item of commerce in itself.

The Canadian trade is now becoming more familiar with Philippine Mahogany and, I believe, there has been more of this lumber shipped into Canada during the past six months than in any previous twelve months. The Canadian trade, however, is not taking any of the Common grade at present, confining its purchases to F.A.S. and F.A.S. Needle Wormy.

Prices, of course, are low, but this is naturally to be expected under present conditions and we believe that the prices we are getting for Philippine are in line with prices of other commodities. With the exception of a few isolated cases of extreme price-cutting, the present market is firm and. buyers are not pressing for lower prices. It is our opinion that if prices were to further deCline pressure would be b_rought on the producers to further curtlil their operations but we see no reason for and do not expect additional reductions.

Two new mills are being erected'in the Islands, each of them having a considerable capacity, and it is expected that these mills will be in operation by the time buliness picks up. It is also expected that when the present depression is over the mills in the Islands will have difficulty in keeping production up to the demand. At present there is every indication of an increase in demand and stocks in the local distributing yards are now below'what is normally carried. As there is very little surplus stock in the Islands we expect movements from there to be rather brisk, even if the quantities moving'are not as large as in normal times.

The future of the Philippine lumber busines looks very bright, indeed, and the manufacturers in the Islands have so organized themselves that production and marketing can be fairly well controlled in the interests of both the buyer and seller, both as to grading and prices. We feel that the purchasing public has d'emonstrated in no uncertain way that Philippine Mahogany is one wood where they get full value for their money and that "Philippine Mahogany Trim" really does "Make a House a Home."