Evening star., 1928-06-20
LUMBER INDUSTRY
STATUS IS SOUND
Present-Day Policy Is to In
sure Future Supply of Tim
ber in u. S.
BY J. c. ROYLE.
Special Dispatch to The Star.

1peGidi 0lSpatCil 10 Inc oJdE.
NEW YORK, June 20.-The lumber
industry has seldom been in so favor
able a statistical position as 1t is at
present. This has been brought about
unquestionably by the adequate bal
ancing of supply and demand, which
has made all the difference between
profitable industry and non-profltable
one, and this lesson is being taken
strongly to heart by executives in other
lines.
A review Of the situation, according
to Wilson Compton, secretary and man
ager of the National Lumber Manu-
facturers' Association, shows that the
favorable balance between lumber sup
ply and demand has been the result OF
developments extending over several
months. Statistics on lumber are Woe
fully weak and the formal statements
issued by the manufacturers themselves
and the Department of Commerce ex-
tend to only about 40 per cent OF the
firms engaged in the industry, repre-
senting about IS per cent of the total
lumber production.
Demand Exceeds Output.
In spite of this fact, however. the
figures as compiled to date, as the end
of the first half year approaches, indl-
cate that the lumber industry as
whole, including hard woods and soft
woods, reported new business for the
first six months that exceeded produc-
ton by at least 10 per cent. The I'M
uroyement was more striking in the
soft woods than in the hardwood. More
over, the aggregate production OF so1t
wood lumber, at least in the early
months of the year, was l per cent
greater than average production for
the previous three years. Production mas
dropped off in the last few months
somewhat, but the figures serve to show
that consumption and requirements
have been stimulated and production
has been held well within bounds.
Moreover, new business booked TINS
year has exceeded even shipments oy
from 3 to 5 per cent according 10 tne
grade of lumber. This pre-suppoSes
condition in which the stocks on manu-
are being reduced. and there Is notn-
ING to indicate a drop in the sustained
high level of lumber consumption due
to the activity in the building industry
Hand to Mouth Buying.
The lumber industry has recognized
at last the fact that so-called hand-to-
mouth buying has come TO stay, ana
that forward buying for months IN ao-
vance is a thing of the past. Inc IN
dustrv has adjusted itself TO the new
nolicy and has saved in producing ana
marketing costs in consequence. NiI.
Compton declared today that men III
the trade had reconized that productlon,
inteili0entIv controlled and adapted to
the change in current demand, coulo
make short-range buying mucn more
of a blessing than a curse. +. =.
n is extraordinary that While II Is
known that the larger mills OF !ne
country have shipped far more 4ui1peI
this wear than last, car loadings inoIcate
a reduction in the number OF cars snlp-
rea of annroylnlately per cent. ms
is accounted for by the heavier ana
more scientific loadings Of cars ana py
the fact that less lumber Is being pro
duced and shipped by the smaller mills;
which do not operate continuously ana
from which no reliable statistics are
Obtainablc.
Larger Units Trend.
There Is no question that the lum--
her industry is working its way toward
larger nnits. the ownership of larger
timber lands and the operation OF
larger mills.
.sThere has never been time in re-
cent wears" said Mr. Compton, when
the control of lumber supply was SO
largely in the hands of manufacturers
having substantial financial invest
ments in timber. as distinguished from
the saw mills having relatively small
investments and engaged In the man
ufacture of lumber as a seasonal or
secondary operation. There has not
been for many years such widely ol-
versified outlets for finished lumber,
both at home and for export"
It is a notable fact that present-day
numbering operations are being con-
Quoted almost entirely on a selective
plan which will assure the main-
tenance Of the productivity of the for
est cutover For example. the United
States Forest Service has recently ac-
cepted a bid from the Edward Hines
Associated Lumber interests of Chicago
for numbering 800 900, 900 feet of COM
mercial timber in northwest Oregon.
This timber will be taken out within
20 years. and during that time the
growth of the trees allowed TO remain
will offset this cutting,