HARDWOOD RECORD 



29 



Mr. Scott: I move that report be au-cepted 

 and the committee discharged. 



The motion was seconded and carried. 



Mr. Gates: I want people to tall< and not 

 sit here and say nothing. If we can't have 

 confidence in each other and stand together 

 in these times we might as well not have any 

 association. We ought to find out about these 

 market conditions. Mr. Peters' report from 

 his standpoint and as far as it goes, is very 

 good, but how much are we going to carry 

 away with us? We ought to find out some- 

 thing about general trade. 



Mr. Scott: I move that we start at one 

 end of this room and go clear around and get 

 an expression from each one present, limit- 

 ing them to three-minute talks or less. 



This motion was seconded and carried, and 

 much interesting discussion on prices and 

 market conditions followed, which was parti- 

 cipated in frankly and honestly by all called 

 upon, and in which Messrs. Alexander, 

 Maltby, Fellabaum, McCrillis. Arnett, Gates, 

 Ward, Kelly, McLaughlin, Stevely, Sperry, 

 Gregory, Welch. Charlesworth, Sebree, Een- 

 kenberger, Jones, Scott and others partici- 

 pated. The discussion brought out strongly 

 the fact that prices are demoralized: that 

 many manufacturers are actually selling their 

 goods below- cost for the mere purpose of 

 keeping busy; that grades are more or less 

 "juggled;" and that business in the handle 

 trade, as with every other industry in the 

 country, is unusually light. 



It was decided that blank cards should be 

 passed to each manufacturer present, and 

 that upon each card, unsigned, he should 

 write two figures, one showing his average 

 cost of a hickory handle f. o. b. factory — the 

 other showing his average selling price f. o, b. 

 factory — the secretary to collect these and 

 read them, with averages. 



On motion the meeting adjourned to con- 

 vene for the second session at 2 p. m. 

 AFTERNOON SESSION. 



At the opening of the meeting, the secretary 

 read the cost and selling price averages, which 

 he had compiled from the anonymous reports 

 collected before luncheon. Out of the sixteen 

 reports turned in, he found a minimum cost 

 of 75 cents; a maximum of $1.30; an average 

 of $1.00. 



Mr. Clendinen: Of course costs under some 

 conditions are much less than under others, 

 but again one person is apt to figure too high 

 — another too low. These reports distinctly 

 show in their difference that these matters 

 should be thoroughly thrashed out. Evi- 

 dently these discrepancies are due to miscal- 

 culation, for all were apparently sincere in 

 making their report. 



Cost System. 



Much discussion of cost and methods of ar- 

 riving at correct figures followed. iSIr. Scott 

 reported that his Committee on Cost Sys- 

 tems, consisting of Messrs. McCulIough, Pet- 

 ers and Hartwell, had sent in no report on 

 account of the absence of the chairman. 



Mr. Clendinen; This work ought to be at- 

 tended to from the fact that suggestions 

 would doubtless cover items many of us have 

 overlooked. 



Mr. Gates: Cost is governed by quality 

 that is produced. A man can produce Xo. 1, 

 No. 2 and No. 3 cheaper than Extra or Ex- 

 celsior, and in some localities the cost of 

 production varies. I think any one who can 

 keep cost under a dollar a dozen is doing 

 mighty well. I would like to know how many 

 are taking into consideration shrinkage and 

 loss of handles. The figures presented are 

 certainly misleading. I don't believe that the 

 average net profit last year was as much as 

 ten cents a dozen. That has been the trouble 

 with handle manufacturers all the time. That 

 Is the reason there have been so many fail- 

 ures. They don't count all the costs in their 



production. The handle business is the most 

 deceitful in the world. Any man can sit down 

 and figure out a profit, but when you come 

 at the end of several years to balance up your 

 accounts and take out the loss from wormy 

 handles, crooked handles, etc., you will nearly 

 always figure out a loss. 



Mr. Maltby: I never invoiced on average 

 cost, but on what my stock was worth the 

 day it was invoiced. I got into the handle 

 business by being shown just some such 

 "average" costs and profits as this! [Laugh- 

 ter.] Certain carloads of stock at certain 

 times may cost more than others, and I be- 

 lieve in invoicing each individual car for 

 what that car is worth — not on any so-called 

 averages. I for one, can't see how you can 

 tell what you have on that basis. 



Important Report of Grading Committee. 



The Grading Committee, of which C. H. 

 Jones was chairman, and F. W. Peters and 

 C. H. Amos the other members — presented a 

 report concerning a set of new grading rules 

 which was made the subject of considerable 

 discussion. It was finally decided that the 

 secretary should supply each member of the 

 association with a copy of the proposed rules 

 for the careful consideration of members at 

 next meeting. It was urged that they give 

 these proposed rules a thorough going-over, 

 and that each jot down any and all points 

 which they would like changed, any inquiries 

 as to their interpretation, and any ideas which 

 might occur to them, bringing their notes to 

 the next meeting and submitting them for 

 general consideration and action by the asso- 

 ciation, 



Mr. Crawford: I might say that the ques- 

 tion of grades was quite a difBcult one tor 

 us to settle a few years ago. We realized we 

 had too many and we decided to come down 

 to three grades. We have now Second 

 Growth, No. 1 and No. 2. We used to have 

 a grade we called "Extra." but we found we 

 had great difficulty to get enough to class as 

 "Extra," so cut it out and made three grades 

 four years ago in our Canadian association. It 

 has worked out very -satisfactorily. Our 

 second growth admits of a little red at the 

 top and also at the eye end. Our No. 1 is a 

 part red and part white handle. No. 2 is all 

 red. No, 3 we do not care to sell. We feel 

 it is better perhaps to burn them than to 

 force them on the market. I quite agree with 

 Mr. Clendinen in regard to lowering grades. 

 It is absolutely essential in the interests of 

 the business. It is not necessary to point 

 out that the quality of timber you can now- 

 secure is not equal to what you could a few 

 years ago, so it is essential to cut down grades 

 and keep up prices. We feel that handles have 

 been sold on this market at really too low a 

 price. We feel that the price at which you 

 have been selling handles in Canada was not 

 high enough— that you could get better prices 

 in that market. I am quite sure that if you 

 will agree to cut down your grading to three 

 grades, two years from today you will say 

 that it was the proper thing to do and de- 

 cidedly in the interest of the business. 



A Special Committee. 



Mr. Leland: I move that a committee be 

 appointed to report at the next meeting on 

 the three-grade proposition — and I would like 

 to be a member of that committee. 



Mr. Maltby: I would amend that by saying 

 that such a proposition also be submitted to 

 the members before the next meeting. The 

 motion was seconded and carried as amended, 

 and Messrs. Leland, Arnett and Maltby were 

 appointed. 



Employment of Inspector. 



G. Sherman, chairman of the Committee on 

 Employment, reported that nothing has as 

 vet been done toward engaging a practical 

 handle man to travel among the factories 

 for educational purposes. He stated that he 

 thought such action would be a little imma- 



ture at this time, and on motion duly sec- 

 onded it was decided to establish a new set 

 of grading rules before employing a man for 

 educational purposes. 



The Grading and Employment Committees 

 were therefore continued. 



Charles D. Gates presented the following 

 resolution: 



"On account of the growing scarcity of 

 hickory timber, the probable advance in 

 freight rates, and no dimunition in the cost 

 of handle production, therefore be it 



"Resolved, That it is the sense of this as- 

 sociation that the present values are as low 

 as handles can be produced at a living profit; 

 and it is the further sense of the associa- 

 tion that prices ought not be made below 

 these quotations. Be it further 



"Resolved, That the production of mem- 

 bers of this association ought to be reduced to 

 the actual necessities of the market, and that 

 members should pursue this policy." 



C. W. Sperry, chairman of the Committee 

 on Resolutions, offered the follow-ing: 



"Resolved, That the Handle Manufacturers' 

 -Association of America tender its sincere 

 thanks for the roval reception and entertain- 

 ment given it by the I. F. Force Handle Com- 

 panv and the Turner, Day & Woolworth 

 Handle Company at its meeting at Louisville, 

 Mav 20; and be it further 



"Resolved, That the association also ten- 

 ders its thanks and appreciation of the honor 

 shown us bv our Canadian brothers in com- 

 ing so far to attend our meeting; and that 

 w-e extend to them a hearty invitation to be 

 present at all future gatherings." 



The above resolutions were unanimously 

 adopted. _ 



Address of Lewis Doster. 



Mr. Crawford responded on behalf of the 

 Canadian visitors, after which Lewis Doster, 

 secretary of the Hardwood Manufacturers' 

 Association, addressed the convention on "The 

 Value of Association Work," substantially as 

 f oUow-s : 



Mr. Doster: Mr. President and Gentlemen, 

 I appreciate the honor of appearing before 

 you today, and inasmuch as I have already 

 gone very fully into my line of work at one 

 of the previous meetings, I shall merely touch 

 upon a few points which have occurred to me 

 in listening to your remarks today. I have 

 been very much interested in your discussion 

 and the problems which have developed here 

 as they have in our own organization. We 

 have been organized since 1902, and I have 

 had the honor of working out the details of 

 organization from the tiny nucleus of half a 

 dozen members to our present membership 

 of more than three hundred, extending from 

 East to West and North to South. What we 

 have found to be of most advantage is sys- 

 tematic interchange between members of ac- 

 curate information. 



You are working on the right track today 

 it the matters proposed can be promulgated. 

 In the first place I know something about 

 hickory, and I know the condition you will 

 be up against in future in your work with a 

 wood for which there is no substitute. The 

 vehicle manufacturers recognized this and 

 have organized an association of their own. I 

 represent our association on their advisory 

 board. Furthermore in the discussion as to 

 whether red tipped handles should be used, I 

 must call your attention to the fact that the 

 hickory organization has been working hand 

 in hand with the United States government 

 in making tests, etc. They have proved that 

 a great deal of red is absolutely as strong and 

 good as white and it is now being used in 

 the vehicle trade, where heretofore rules were 

 put down to use only white. The time was 

 when a man could go into the forest and pick 

 out a tree here and there, but gentlemen, you 

 can't do that now. Tou are all taking out all 

 the trees and not picking out a few here and 

 there. Timber is getting scarcer and scarcer. 

 Our organization is working with the gov- 

 ernment and using every effort to prolong 

 the life of the forest and produce more per 

 acre than heretofore by all kinds of economy. 



Another gentleman brought out the ques- 



