Alpena weekly argus. [volume] (Alpena, Mich.) 1871-1893, 1874-11-18


great loss to all classes of lumber
men. Any combination that coul
t be formed to reduce manufacture
; would surely fail, for lack of unan
unity, and would, in the end, pre-
duce the evil it was intended I
, prevent. But the desired resul
may be produced 10y informing
manufacturers of the proposed
supply at the principal lumber dis
tricts, and thus appeal to thei
better judgement, as well as thei
financial interest and cause a vol
untary reduction from plans already
made, for hauling logs during thu
approaching winter.
The average annual receipts o.
pine lumber at the port of Chicago
for the three years last past, ex'
ceeds 1,000,00O,000 feet, and O
this vast amount, more than hal
is received and paid for when land
ed, by lumber dealers, who own nc
saw mills. In other words, the
yard interest pays annually, in
cash, on delivery, here to mill
owners who have no docks in Chi
caeo, the sum of six millions OF
dollars for lumber, and an addition
al sum Of two millions of dollars
for shingles, lath, and other lumber
products. The mills that saw lum-
Der for the Exchange market,
for sale afloat, depends wholly on
the yard dealers to furnish funds
to operate their mills in summer,
and repay advances received from
commission firms during winter.
The course pursued by these
mill owners during the present
season of 1874, would, in almost
any branch of trade, have brought
ruin to the parties who furnished
the working capital, and owing to
their large manufacture, have caus-
ed declining market during the
entire season, and an average de-
probation of 10 per cent. in the
value of stocks in pile.
If, during 1875, an amount of
lumber exceeding 900,000,000 feet
S consigned to this market, yard
prices will decline below SO for
common lumber at retail, and a
discount in the value
# all stocks of lumber here must
'e the result, and 1876 will find the
Iumher of yard dealers reduced
as they must seek other
ields of investment for their capt.
al, as their predecessors did in
S5S.
The shrinkage of value by over
PRODUCTION, will, if continued,
rive many yard dealers from
rade but the same cause is re-
'ponsible for a greater evil, that
lids fair to reduce the number Of
Mill owners also, during 1876. Pre-
;ious to 1865, credits were seldom
lslked on lumber at wholesale, and
returns were expected inside thirty
lays for yard sales. Now, an aver
age of more than sixty days time
On yard business, if any profit is
realized. This is the natural re-
suit of forcing sales on a market
overstocked, and one that
mill owners are wholly responsible
for, and if continued, yard dealers
will claim, and be enabled TO COM
pei, q credit on all cargo lumber
sold afoat in Chicago.
So great is the desire of manu-
facturers at Lake Huron ports to
dispose of the present surplus,
that lumbermen with good credit
can to-day purchase any amount
of cargo lumber of them, on nine
ty days credit, and in some in
stances, at four months, and with
out interest.
From present indications
change from cash to credit for
cargoes in this market is expected
hereafter, as, with the exception
of the Chicago lumber exchange
sales, lumber is usually sold on
credit at Wholesale. This change
effected, no combination of mill
owners will be required to limit the
supply hereafter.
For the following good reasons,
all prudent mill owners will reduce
rather than increase, their business,
until the surplus lumber now in
market is much reduced
First, That during the season of
1874, no profit has been realized
and from excessive manufacture
the markets of the country are
now largely overstocked, with no
proenact of n ,,or,nanapt adyooo.