THE CALIFOR].IIA '**;Ll-'*i*" W T BTACK LUMBE R ME RCHANT Advertieing Mcncger {:*.3'":,:*;k'*k rt#ff"riiri""

LOS ANGELES, CAL., OCTOBER 15. 1939 Advertieing Rcrter on Applicotion

How Lumber Looks

Operations of the lumber industry held a fast pace in the week ended September 30, the Naiional Lumberl Manufacturers Association lrqports, with orders and shipments passing levels reached in the like 1938 and 1937 weeks and approaching the levels of the like week in I9D. Productio_n exceeded a year ago and nearly reached 1937.

_ Lumber orders reported for the week ended September 23 bV a2l softwood mills totaled 349,599,000 feet; shipments were 248,750,000 feet; and production was 234,131,000 feet. Reports from 101 hardwood mills for the same week gave new business as 18,056,000 feet; shipments 13,437,000 feet; and production 9,330,000 feet.

_ Seattle, .Wash., October 9.-The weekly average of West !^o1st lumber production in September (4 weeksi was 132,584.000 feet, or 67.3 per cent of the weekly average for 1926- W9, the industry's years of highest capacity- realization. Orders averaged 168,111,000 feet ; shipments, 144,762,000 feet. Weekly averages for August were: production, 133,818,000 feeti orders] 154,331,001 feet; shipments, 155,130,000 feet.

First 39 weeks of 1939, cumulative production, 4,732,839,000 feet; same period, 1938, 3,777,988,000 feet; 1937,5,181,240,000 feet.

Orders for 39 weeks of. 7939 break down as follows: rail, 2,170,959,000 feet; domestic cargo, 1,968,879,000 feet; export, 313,404,000 feet; local, 756,304]060'feet.

The industry's unfilled order file stood at 569,584,000 feet at the end of September; gross stocks, at 843,000,000 feet.

The effect of the European war on West Coast lumber trade is a secondary influence in its September improvement, West Coast Lumbermen's Association studies indiiate. Previous issues of "Monthly Lumber Facts" show a gradual but strong summer upswing, with the industry holding a good position at the first of September. Retail yard inventories remained low during the period. In all markets for West Coast lumber, there was general unwillingness to purchase for other than immediate sight demand. Railroad and industrial buying drifted on a low level. Export business showed some increase, u'ith orders derived from the British defense program exceeding the capacity of Canadian mills, and West 9oast receiving the overflow. The fall farm trade was prom- ising. The sustained rate of U. S. home building indicated that this main outlet for West Coast lumber would stay open for a considerable period.

This picture has not been greatly changed by the European w?r. On the positive side of war efiects, the program of railroad improvement and car building will evidently draw upon lumber for the next several months. Rising crop prices heighten the promise of farm building. A rulh of retail yards to build up stocks fortified the normal September rise in orders. Industrial buying has been stimulated.

On the negative side, war risks and uncertainties are a' cloud on what lies beyond the current climb. At present, shipping is restricted and rates from the West Coast to England increased from 60 to 100 shillings per thousand feet. Prepayment is required in U. S. dollars. With Baltic lumber supply shut off, the British government has begun to allocate ships for North Pacific lumber trade. But the future of West Coast exports to England and that of Canadian exports to the U. S. are yet unpredictable.

The West Coast lumber industry is not gambling on the uncertainties of war and is not charting its course by war-boom prospects. In maintaining its market position, the industry is relying on the everyday factors of its steady improvement throughout the summer and early fall of this year.

The Western Pine Association for the week ended September 30, 116 mills reporting, gave orders as 101,459,000 feet; shipments 88,569,000 feet; and production 83,979,000 feet. Orders were 20.8 per cent above production and 14.5 per cent above shipments. Shipments were 5.4 per cent above production. Orders on hand at the end of the week totaled 340,104,000 feet.

The Southern Pine Association for the week ended September 30, 119 mills reporting, gave orders as 44,168,000 feet; shipments 42.928,000 feet; and production 29,748,000 feet. Orders were 48.47 per cent above production and,2.89 per cent above shipments. Shipments were 44.31 per cent above production. Orders on hand at the end of the week totaled 120,215,000 feet.

Demand for Redwood in the last 45 days has been exceptionally brisk, particularly in the East and Middle West. There have been price advances in the East on certain items and one slight advance in the West, but not comparable to advances in other species.

Lumber receipts at Los Angeles harbor for the month of September were 96,883,000 feet, more than 5,000,000 feet over September, 1938.

The two-day tie-up of 10 coastwise lumber steamers at Los Angeles Harbor ended October 11 when union firemen returned to work. No strike was called, the individual members quitting their jobs because their agreement with the employers which expired September 30 had not been renewed. Negotiations between the firemen and the employers were resumed in San Francisco on October 11. Firemen crews left the coastwise lumber fleet at Los Angeles Harbor only.