The star-progress. (Opelousas, La.) 1917-1921, 1920-12-01
STOCKS
INCREASING WHILE
PRICES START DOWN
War Time Values Can Not
Be Maintained at
Present
LARGE QUANTITY
is NOW ON HAND
Numerous Pine Mills Closing
Down for Want of
Demand

New Orleans, La, Nov. 20-In his
statement to the senate committee on
reconstruction at it's hearing here to-
day, ]. E. Rhodes, secretary manager
of the Southern Pine association OF the
that the average production of the
mills which are members of the asso-
citation is now about 100000 feet per
week, as cmopared with $4,000 feet
at this time a year ago. In addition
to this curtailment, large number Of
small local mills have discontinued
operations. In spite Of the reduced
output, production is still in excess
of orders and shipments. There has
never been a time since the association
was organized that demand for lum-
Der has been as light. Since last
March, prices have declined from 80
to so per cent, depending upon the
grade, and are now generally below
the average cost of production.
'The producing capacity of the
Southern Pine mills is enormous, more
than sufficient to take care of any de-
mand which is likely to develop" said
Mr.. Rhodes.
Mr.. Rhodes statement in full fol-
lows:
"The subject assigned to me is ''the
supply of lumber, from which l as
sumo that it is desired by those who
prepared the program Of topics for
your consideration at this hearing that
should give you some information
concerning the quantity of lumber
now available for building purposes.
All Lumber Necessary
at is hardly necessary to take more
Of your time than to say that manu-
facturers of yellow pine in the south
efn states can furnish all the lum-
Der necessary to meet any demand
that is likely to develop for the con-
struction of homes and industrial
buildings in this country. The produc-
ing capacity Of the southern pine mills
is enormous and has never been utiliz-
ed to the utmost, even to supply the
demand of the government for lumber
for war needs. We have a record of
more than $500 saw mills located in
the southern pine producing territory,
from Virginia to Texas, extending
across the gulf states. The great ma
jority of these are, of course, small
Mills only four hundred mills rep
resenting about so per cent of the
product. The production of southern
pine lumber in 1918 was 1O,845, 900 900
feet, according to the figures of the
forest service. Last year it was about
the same.
Enormous Stock on Hand
I'm November, 1916, $50 mills which
are subscribers to the Southern Pine
association, reported a total stock on
hand OF 1,449, 729,S22 feet, the larg-
est which had been reported in sew
eral years. In April, 1917, the United
States entered the war, and from that
date until November, 1918, when the
armistice was signed, the various de-
partments of the government took ap-
proximately three and one-quarter bill
lion feet for the building of canton
ments army camps, etc.
"The total amount Of lumber re-
ported held by 1876 mills November 1,
1919, was 983,246,614 feet. The small
est stocks Of lumber reported by these
mills was in September, 1919 when
they had on hand a total of $685.
696, or a little more than one-half as
much as they had in November of
1916.
Amount on Hand Increases
There has been a gradual increase
in the amount of lumber on hand since
last fall, so that the total stock of the
mills reporting to the association now
amounts to 1855, 286,S51 feet. There
has been an increae in the total stock
reported by the association of 421.-
9S9,737 feet, or 1922 per cent over the
amount reported held by the same
mills November 1, 1919. Compared
with stocks of previous years, this is
a slight increase over normal.
Demand Dropping
LESS southern pine lumber is now
being manufactured than at any time
for many years, due to the marked de-
cline in demand since last March.
Nearly if not all of the small local
mills have closed down, and many of
the larger ones and many of the lat
ter are also running on reduced time. /
Because sales have declined to less
than half normal demand stocks are
accommodating, and those mills still
operating are confronted with the
problem Of disseminating operations I
altogether and allowing their crews
to become scattered and disorganized, |
Or piling up lumber at cost which
they believe is greater than they will
be likely to sell the stock for in the
future. Lumber is now be-
ing sold for something less than aver
age cost of production.