Lumber Consumption to Top Twenty-Six Billion Feet for 1939

Washington, November 17 _Torut lumber consumption in 1939 will be more than 26 billion feet or about 18 per cent above last year's consumption, according to the 34th quarterly report of the Lumber Survey Committee to the Department of Commerce, released today. This compares with a consumption ol 22.5 billion feet in 1938.

According to the Committee, the outbreak of War and its psychological effect created a spectacular spurt in mid-September causing lumber consumption in the third quarter to exceed former estimates. Lumber production, however, maintained an active and comparatively even pace during the last three months, and will probably exceed 25.5 billion feet-l8 per cent above the 1938 figure.

Lumber exports in July and August were the highest since 1937, due to anticipated early'curtailment of shipping facilities. September showed some decline but it u'ill be necessary to await October and perhaps November trade

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(Continued from page 17) being installed to effectively and economically heat four-and five-room apartments. figures before reaching definite conclusions as to the effect of the War upon September exports. Major lumber exports are in temporary stalemate due to shipping and procurement uncertainties.

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"Railroad purchases of equipment and materials, inclu<ling lumber and timber products, have increased abruptly", says the report. "Orders at the lumber mills for items for new equipment, maintenance of way improvement, and especially for repairs, have shown marked increase. This reflects a general policy of the railroads.

"Residential building in the third quarter continued to show gains over a similar period of 1938", the report continued. September was the largest month in residential floor space contracts since 1929. Home building is likely to continue at the present relatively high rate, except for seasonal changes in some regions. If home building declines, the cause will probably be a prospect of rapidly increasing building costs rather than any War situation now discernible."

The Committee found that current stocks were broken and that mills have refused new business in considerable volume. It warns that ill-assortment of stocks threatens to become a chronic condition in some regions and recommends that the industry further explore the causes and the possible remedies of long-continued unbalanced and illa.ssorted lumber inventories.

The Lumber Survey Committee consists of Thomas S. Holden, Vice-President, F. W. Dodge Corporation, New York City; M. W. Stark, Economist, Columbus, Ohio; Calvin Fentress, Chairman, Baker Fentress & Co., Chicago, Illinois; and Wilson Compton, Secretary and l\{anager, National Lumber Manufacturers Association, Washington, D. C., Chairman. Phillips A. Hayward, Chief, Forest Products Division, Department of Commerce, is Secretarl' e1 the Committee.