Arizona republican., 1895-04-10
CHEAP LUMBER.
Prices Lower in Phoenix Than
Ever Before.
DeMund Bros. Claim Lot of Credit
Their Coming Has Caused
Sharp Competition.


Builders and contractors were startled
Yesterday by a circular announcement
quoting big cuts in the price OF lum Der.
The circulars were mailed to nearly
every business house in town.
The cut amounts to about 25 per cent
less than the lowest prices which have
prevailed here for a numb Der of years.
A representative of THE REPUBLICAN,,
deslrous OF knowing something of the
facts which lead up TO this condition of
affairs, called at the yard of DeMund
Bros, the new lumber firm on Madison
and Fourth avenue. All was lively at
the new yard; three or four teams were
in line waiting their turn. Mr., Charles
DeMund was busy with large con-
tractor making estimates OF material
required in handsome residence soon
to be erected fo1 a prominent pro-
fessional gentleman.
''There seems to be-" remarked the
reporter" quite q stir i'll lumber circles
today. Have you heard of 2"
EYES," responded Mr.. DeMund. eve
received a circular this morning in
which considerable cut is made in
lum Der and building material"
what are you going to do about it !?
Will you meet the cut ?" was asked.
"We certainly WILL" responded Mr..
DeMund. "We have not invested our
money here, built these large sheds and
started this business to be frozen out at
the first sign of competition,
"How does it happen that your COM
petitors are suddenly able to quote
prices lower than have always pre-
vailed? Has there been big drop in
freight rates ?" was asked.
''No, sir; there has been no drop in
freight rates. The lumber dealers Of
Phoenix are no better able to make
these reductions than they were year
ago. The invoice price Of lum Der at the
mills in northern Arizona is greater
than what the same can be bought for
in northern California. 1t costs a little
less to get the Arizona lumber to Phe-
nix over the new north and south road,
and the difference is such as to make
the price at which the stock can be laid
down in Phoenix about the same as be-
fore. Were it not for the appearance of
DeMund Bros. on the scene here in
Phoenix these reductions of which you
speak never would have been made and
common pine stock would be selling to-
day from $3.50 to $1,000 a thousand
higher than it can now be bought"
GLOW Is that" inquired the reporter,
81 thought ii was the other fellows VINO
were making the cut and that you are
simply meeting it as you must"
81 will tell you how it it," said Mr..
DeMund. ga few months ago in Los
Angeles when we we thinking of start
ing this business in Phoenix, | met a
gentleman who controls one of the
largest lum Der concerns OF this city.
That he has an interest in the firm
which is making the present cut is IN
dicated by the presence as manager OF
his former bookkeeper. This gentle
man advised US strongly not to engage
in the lumbe business in Phoenix as
there was no field for it, there being
already several established firms. We
did not follow his advice but thought
there was room in growing town like
Phoenix for one more live concern. We
came here as you see and started this
UuSluScS W. COu InSHCtu Wy SSiiHS
lum Der at prices which allowed US what
We considered fair profit but which
were really considerably less than had
prevailed We were soon approached
by representatives of other firms and
urged to enter into a com bination to
keep the prices up to where they had
always been. Alter some discussion we
agreed to charge a schedule price for
certain kinds of lumber which were
most in demand. There were a few
things which we could afford to sell
much cheaper than any OF our com.
. pelitors. The consequence was that the
bulk of the lumber trade at once
rushed to our yards and our competitors
suffered an immense falling off in their
business. Our stock was satisfactory.
Our trea OF our customers must
have been equally so, for they kept
coming and coming again and are
coming yet. We have never made sc
large per cent profit, as our eompeti-
tors have been selling lum Der for years
81 the old prices. but we have made a
little money, have established our bust
ness and are rapidly gaining the conf.
dence of the people We can lay
lumber down here in Phoenix as cheaply
as any one in the business, if not more
go, and will meet any and all cuts that
may be made, at the same time claim
ing, as | have said, the credit of being