The record-union., 1893-10-20
TEE LUMBER TRADE.
Some Of the Results Of the Present
0ver-Production.
Why Prices arc Low and ATanufact-
urers are Running
Behind.
Especial Correspondence REcoRD-UNIoN.l

Gc0inGs
Especial Correspondence REcoRD-UNIoN.l
SAN FRANCIsco, Oct. I9.-It is a strange
and unfortunate circumstance in the
commerce OF California that those en-
gagged in the manufacture and sale of
lumber should have received less profit
from their capital and labor during the
past two or three years than almost any
other department of trade. Such, how
ever, is the common and accepted report
and to account for it, or to suggest
remedy, should receive the attention OF
all interested in the welfare Of one of the
greatest sources of wealth on this coast.
the development OF which is but in its in
fancy.
Diligent inquiry among the best in
formed men in the business for the cause
of this condition Of affairs brings always
the same -overproduction. This
has been the case more particularly for
the past three or four years, and may be
attributed to the brilliant prospect for
greatly increased demand which sprung
up in 1S87-8, but which has since very
materially lessened. Previous to 1857 the
larger operators in lumber looked only
for a local trade along our own coast, and
the principal sources Of supply were the
redwoyds and Puget Sound pine. Both
classes of lumber were found convenient
TO ocean carriage, and the mills kept their
production within reasonable bounds.
There came dull periods and stagnation,
but they seldom lasted long, and prices
were generally sustained where reasona-
BILE profit was received, and some very
handsome fortunes were amassed, both III
redwood and pine
Previous TO 1887 the annual production
of redwood was about 2j0, ,00O, COO feet, and
prices ranged from Si4 30 per 900 feet Tor
common to S23 for clear. There was no
very considerable foreign trade, and so
per cent. OF the product was sold on this
coast to the local trade. About this time
there came large and active demand
from Australia. Trial shipments were
also made to Atlantic ports, and the bet
ter grades found an appreclatlve market.
though the cost was high. Our redwood
forests also began 10 attract the attention
of Scotch-English capitalists, who Sc
cured very large tracts OF fine timber IN
Humboldt County at very low prices by
hiring parties to locate Government land;
and about the same time large lumber
operators and timber lana spectators OF
the Northwestern States began TO realize
that they could see the limit OF their own
supplies, and probably ten, or, at most,
fifteen years, would exhaust the re-
sources Of Michigan, Wisconsin and
Minnesota. Several Eastern parties
bought freely all over the Pacific Coast,
and not always with a judicious regard
to their true value. Ali these causes gave
sudden impetus both to manufactured
lumber and timber lands.
Previous TO this our mills were care
fully and economically managed, and
owners were satisfied with the moderate
capacity of their plants, out with these
new features looming up they We're all
disposed TO launch out and almost revo-
lutiOnize the business. The latest and
most improved machinery was intro
duced, new and larger mills erected and
the capacity generally doubled Our
redwood mills have now q capacity Of
400, 600, 600 feet annually. The increased
demand only lasted two Or three years.
During 1883, 1889 and 1890 there was an
active and satisfactory trade. Australia
bought very largely and from all points Of
Southern California the orders were so
heavy that 1t was difficult 10 secure trans
portation, and fleet OF steam schOoners Of
very large capacity was hurriedly built ex-
pressly for this trade. Prices advanced
materially, rough lumber bringing SIC 80
per 900 and clear SZ7 to S25 %, which
gave very handsome profit. NJ wonder
that every body was eager to engage in
the business or to secure timber lands.
1t was very unfortunate, but from no
want of foresight, that the shrewdest men
did not anticipate that this activity would
be Of short duration.
To advance the welfare and settlement
of Australia almost unlimited English
capital was sent there and the credit OF
the colonies. in the shape OF bonds, was
also given to a most burdensome extent.
The check to the brilliant and rapid
fa1
anticipated even by those living in our
community. But these two great sources
for almost unlimited demand for lumber
were suddenly cut off. 1t did not come
gradually but suddenly, and ut a time
when every arrangement had been made
TO supply it to its fullest extent.
For three years we have been reaping
the result; the output has been hard to
handle, and prices have gone even lower
than before any of these outlets were
open. Rough lumber at present is nomi-
nally Sl4 per 1000, and clear 81 per 1000,
but to effect large sales much lower
prices must be accepted: in fact to sell
Tor prompt cash is next to impossible.
and only very recently a sale of over
100000 feet of redwood lumber-the run
of the mill, including rough and clear
was sold at less than $40 per 1000 feet.
Much of the same condition of affairs
exist in pine lumber. The grand forests
O1 uSCb SOuuu are D6lHE QSuuu6u Win
no commensurate profit to any one. For
several years past the annual production
of that class oflumber has been l 400, ,000-
coo feet, besides laths and shingles. There
is a good export trade for the better
grades of Iumber,sas well as a large and
increasing Eastern demand, but San
Francisco is the dumping ground for
most of the common and rough lumber.
FULLY 80 per cent. of the production both
Of redwood and pine is of this common
class and is entirely beyond the require
ments of this market, so that the same
unsatisfactory condition of trade exists at
present for pine as has been noted in red
wood.
The sugar including yellow pine pro-
duction of California has perhaps been
more favored. especially where it has
been accessible to transportation. The
better grades command higher prices
than redwood or northern pine, and the
production is much less. The output of
1892 was given as A, 50O, coo feet, and prob
ably those returns included the cut of