EASTERN EUROPEAN SOFTWOODS

Latvia, Poland, Estonia, and Lithuania are the principal countries in eastern Europe, or the Baltic region, shipping softwoods to the United Kingdom. They have the advantage of having their ports open practically all the year round so that, except for special items, their best business is done during the winter months when stock from the more northern ports is not available.

Pine (redwood) and spruce (whitewood) in similar specifications (the largest sizes being 3 by 9 and 11 inches with a few 4 inches) to those from the north European countries are the main species imported, but their quality, on the whole, is not as good. Of these countries, Latvia and Poland are the most important, followed by Estonia and Lithuania, the quantity imported from the last named being of insufficient importance to justify its segregation in British trade statistics, but is included in the total for "All other countries." Practically all of the lumber is imported rough sawn with the exception of a very small amount of dressed stock from Latvia. Government of that country, in order to encourage its manufacture, has set a lower export duty upon dressed stock and box shooks than applies to rough-sawn lumber. With the exception, however, of box shooks, this action has produced little result as far as the British imports are concerned.

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The following table shows imports of softwood into the United Kingdom from eastern European countries in 1925:

Generally speaking, eastern European pine is unsuitable for remanufacturing but is comparable to the inferior Finnish and south Swedish stocks and, like them, is used for ordinary building purposes. All lumber is grade marked on the ends and the prices obtainable in this market are considerably influenced by them.

LATVIA

Riga, Libau, and Windau are the principal lumber-loading ports of Latvia, the former predominating. The Latvian lumber industry specializes in the manufacture of what are known as "wagon bottoms" for the British railroad freight-car building trade. These wagon bottoms are 22 by 7 inches, 7 or 72 feet long, and may be of pine or spruce. Practically the entire requirements of this market are obtained from Latvia. It also specializes in lumber cut to size for the sides and ends of British railroad freight cars, the principal sizes being 22 and 3 by 7, 8, and 9 inches, with a few 11 inches, all 14 to 17 feet long. Recently Latvia has been paying more attention to the manufacture of box shooks, the export duty being much less upon them than on rough lumber.

Specific short-length cutting.—Another unusual feature of the Latvian lumber industry is that ends 5 to 9 feet long are specially manufactured from logs cut to length for that purpose and are not merely accumulations from longer lengths that have been trimmed for grading purposes. Large quantities of these ends are imported into the United Kingdom for box-making purposes and for paving blocks; the latter, however, being of pine only, spruce being unsuitable.

The United Kingdom is easily the most important market for Latvian lumber, over 50 per cent of the total exports in 1925 going to that country. Sales have been greatly helped during the past few years because the lumber can be bought not only in special widths but also in particular lengths of each width, which is a great advantage to the British lumber importer.

Qualities and specifications.-Two qualities are imported by this market "unsorted" (first, second, and best of thirds) and "third and fourths" (consisting of the worst of the thirds and all fourths). The usual north European specifications are cut of deals, battens, scantlings, and boards. The lengths, however, on the whole, run slightly shorter than shipments from those countries.

Prices.-Prices for Latvian softwood lumber are usually quoted separately on each item but, during the spring of 1927, the market for an average specification of deals and battens was approximately £14 10s. per standard for "unsorted" quality pine and £15 for spruce, c. i. f. London or good east coast United Kingdom port, with 5s. to 7s. 6d. per standard additional for good west coast port. In third and fourth quality no difference is made between pine and spruce and they are usually sold mixed, the market being around £13 c. i. f. London or good east coast port, with the usual addition to cover the extra ocean freight rate to the west coast. Occasionally, however, a shipper will sell spruce only when he gets an increase in the price to cover sorting charges, and a bit more.

POLAND (INCLUDING FREE PORT OF DANZIG)

Practically all Polish sawmills are in the eastern interior of the country and lumber must be transported to Danzig by rail for export. This railroad service is often uncertain so that it is difficult to tell with certainty just when cars will reach port after leaving the interior mill. It is, therefore, customary for exporters to wait until their stocks are moving to the port and then sell for delivery as near as possible to the estimated date of their arrival at Danzig. These exporters are not in a position to store their lumber at Danzig for indefinite periods as heavy charges accrue and it is necessary for them to be shipped as soon as possible after arrival to avoid these charges.

Very little business is done with Poland on a f. o. b. basis as, owing to the difficulty and expense of storing at Danzig, exporters prefer to do their own chartering rather than hold stocks to suit buyers' convenience. When f. o. b. contracts are made, however, shippers frequently insist that, if shipment is delayed beyond a certain date, a fixed amount of rent per month shall be paid to cover the storage costs.

Since 1921, the first year for which statistics are available for Poland as an independent country, imports of lumber from it into the United Kingdom have made rapid progress. The reasons for this are various,

an important one being the development of "mill-run" quality which entails the minimum of sorting and consequently enables exporters to accept prices with which shippers in the north European countries could not compete in the British market.

Imports of softwood lumber into the United Kingdom from Poland, for the years indicated, are shown in the following table:

Qualities and specifications. Both pine and spruce lumber is imported from Poland in "unsorted" (first, second, and third), "mill-run," and "third and fourth" qualities, stock from the Vilna district being considered the best. It will be noted that the "unsorted" does not contain any fourths, differing in this respect from Sweden and Finland. Of these qualities "mill-run" is much favored in the United Kingdom on account of its cheapness, and the development of it has been a considerable factor in increasing the sale of Polish lumber. "Mill-run" includes the full run of the log as it falls from the saw with fifths and sixths out, so that a minimum amount of sorting and little storage space is required. There is naturally a considerable variation in the "mill-run" quality of the different manufacturers, but these are well known to the British importers and prices paid in accordance therewith. The policy of Polish lumber exporters of selling special as well as random lengths has also helped its sale in the United Kingdom. Specifications are similar to those from the north European and Baltic countries, the largest sizes cut being 3 by 9 and 11 inches, with small quantities of 4 by 9 and 11 inches, are imported although the lengths run longer on an

average.

Polish pine on the whole is coarse-grained, hard, and has numerous large knots, making it unsuitable for remanufacturing, while the spruce is short grained and splits rather easily. Neither of them stores well, deteriorating rapidly in the British climate. Both are used largely for house building and in the box and case making industries, while considerable quantities of pine are used for the manufacture of paving blocks.

Prices. The low price at which it can be bought, also the policy of selling special (for which they obtain an additional 10s. to 20s. per standard) as well as random lengths, has helped the sale of Polish softwood lumber in the British market.

Most of the Polish softwood is sold on a price basis, importers being willing to put up with irregularities such as uncertainty of delivery, on account of the low price of the lumber in question, as compared with similar stock from other countries.

Prices for Polish pine and spruce, like the Latvian, are quoted separately on each item but no difference is made between pine and

spruce. For a fair specification of deals and battens in either species, the market during the spring of 1927 in "unsorted" quality was approximately £14 5s. per standard, c. i. f. London or good east coast port, with the usual additions or deductions for other sizes. Stock from the Vilna district, being better than the general average of Polish shipments, brought around 10s. per standard more. At the same time, "mill-run" quality was quoted about £13 10s., and "third and fourth" quality £12 15s., all c. i. f. London or good east coast port, with the addition of 5s. to 7s. 6d. per standard for delivery to the west coast to cover higher ocean freight rate. "Third and fourth" qualities are sometimes sold "mixed," but more often in spruce only or pine only.

ESTONIA

Spruce and pine lumber from Estonia is considered of better texture and manufacture than stock from the more southerly Baltic countries. It is imported in the same grades and specifications as the Latvian and used for similar purposes. The principal loading ports are Reval and Pernau. Like Latvian, the Estonian softwood lumber industry specializes in the manufacture of sizes and lengths used by the British freight-car building trade.

British imports of softwoods from Estonia have shown a progressive increase since 1921, when they amounted to only 20,716 loads valued at £120,182, and in 1925 they had risen to 136,217 loads valued at £580,084.

LITHUANIA

Owing to differences between Poland and Lithuania in 1920, terminating in the seizure of Vilna and closure of the River Niemen for floating logs from that region, exports of lumber from the latter country to the United Kingdom were practically brought to a standstill and in 1925 amounted to only 3,830 loads valued at £19,527.

Logs from the Vilna district, in the meantime, were diverted to the River Vistula and exported as lumber through Danzig. The floating of logs to Memel, the principal center of the Lithuanian lumber trade, had not been resumed and, until it is, it is improbable that exports to the United Kingdom will show any material increase.

CENTRAL EUROPEAN SOFTWOODS

Rumania, Czechoslovakia, and Yugoslavia are the most important central European countries shipping softwoods to the United Kingdom. While, however, imports from Rumania have been shown in British official statistics for many years the other two countries mentioned, only having been created sovereign States by the treaty of Versailles, did not appear until 1921.

Generally speaking, lumber from central Europe is inferior to the northern and eastern European varieties, but the low price at which it is sold has been an important factor in furthering its sale.

Imports are mostly in the form of rough lumber with a little square sawn timber, few sawmills being equipped with planing facilities in those countries from which it is obtained. The stock as a rule is square edged, bright, and well manufactured, the Swedish type of gang saw being universally used, and altogether presents an excellent appearance. The wood, however, is brittle, splits easily,

and does not store well, deteriorating rapidly if exposed to the weather, and for that reason must pass into consumption as soon as possible after arrival before it is affected by the damp climate characteristic of the British Isles. A few years ago considerable trouble arose through the arrival of many shipments from Czechoslovakia and Rumania showing a large percentage of brown streak which, while scarcely noticeable when the stock was dry, became very pronounced if it got wet. According to one of the foremost British agents handling lumber from these countries this was caused through overfelling, so that large quantities of logs lay in the woods for months before being sawn into lumber and much dissatisfaction was caused among buyers on this account. Whether this is the correct explanation or not is immaterial, but the fact remains that it was considered a very serious defect and became the basis of many heavy claims. This trouble, however, has now been largely eliminated, and lumber showing brown streak is shipped only in the "inferior” or fourth quality to-day.

The bulk of the British imports are of spruce or whitewood, only a small quantity of pine or redwood, as it is called, being received from Czechoslovakia and Yugoslavia, while Rumania furnishes spruce only. Shipments are generally in "unsorted" (first, second, and third) quality. Occasional sales of "inferior" or fourth are made, but this is always shipped under a separate mark and on a separate bill of lading.

The following table shows British imports of central European softwood lumber during 1925:

The principal use of central European spruce is for house construction of the cheaper type where cost is a prime consideration. Large quantities are also used by the box and case making industries. The pine is not suitable for millwork but is mostly remanufactured into flooring and shelving in local planing mills.

There is little difference in value between the lumber shipped from any of these countries, its price depending to a large extent on the demand and the quantity available for export. Unlike the north European lumber market, prices are not made from a "base" with additions and deductions for the various sizes, but the price varies according to the market, also the specification buyers require.

RUMANIA

Imports of softwood lumber from Rumania steadily diminished before the Great War, and by 1913, according to British official statistics, had ceased altogether, none whatever being received during that year. The war naturally cut off all exports, but a start was made again in 1921, and by 1925 imports had reached a total of 119,619 loads valued at £495,267.