HARDWOOD RECORD 



positively, but at present I am in some doubt. 



It is to be assumed that each of us maintains 

 some system of costs ; systems that are doubtless 

 more or less thorough. Some of us perhaps have 

 schemes that may give us, at stated intervals, 

 approximately the varying costs under prevailing 

 conditions. I am inclined, however, to the opin- 

 ion that the majority of us base our figures of 

 cost on "previous experience," which is probably 

 a safe proposition under normal conditions, but 

 I believe will put us badly at sea under the ad- 

 verse conditions of running short time or half 

 time. 



Cost is made up, first, of the timber or other 

 raw material. 



Labor follows and is of two kinds, productive 

 and non-productive. 



Productive labor is such that can be timed or 

 measured to any operation. Non-productive labor 

 is such that cannot be timed or measured, and 

 includes managers, superintendents, foremen, en- 

 gineers, firemen, watchmen, sweepers, oilers, 

 truckers, etc. Non-productive labor, to some ex- 

 tent, may be charged to particular departments 

 or operations, but must largely be charged to the 

 factory as a whole and apportioned as best we 



Factory expense follows, included in which are 

 rents, taxes. Insurance, Interest or discount, fuel, 

 oil, light, freight, depreciation of property and 

 equipment and perishable tools, such as saws, 

 knives, axes, adzes, sand paper, files, emery 

 wheels, etc. 



General expense, including inspectors and pack- 

 ers, cartage, oflice salaries, office supplies and 

 postage, and finally. 



Selling expense, including salaries of salesmen, 

 traveling expenses, advertising and commissions. 



Now, assuming on the previous experience plan, 

 that for any previous period these items of ma- 

 terials, labor and expense of all kinds, which 

 enter into the cost of placing our goods upon the 

 market, have been carefully and correctly sub- 

 divided and apportioned, and that the correctness 

 of our estimates has been verified at stock taking 

 time — what is the effect upon our figures when 

 short hours of running come around? Hands 

 may be laid off ; that stoppage of expenditure 

 speaks for itself. But what about taxes. Insur- 

 ance, managers, superintendents, foremen, sales- 

 men and office help on full salaries — they still 

 cost 100 per cent in expense to your fifty per 

 cent or less of output. It is also a tact that 

 the same crew of hands engaged in the same 

 kind of work does not produce in five hours' labor 

 fifty per cent of the quantity they produce in 

 ten hours' labor. A well-meaning force of hands, 

 knowing that work is scarce and that it is prob- 

 able that sooner or later a complete shutdown 

 may occur, will not work with the same interest 

 and activity on short hours per day as they do 

 when there is plenty of work ahead and hours 

 are full. Another cause for increased propor- 

 tional cost is the inevitable fact that orders are 

 not as well balanced for all departments of work 

 when orders are scant, as when they are plenti- 

 ful, by which I mean that there is likely to be 

 more work in proportion in some departments 

 than others and that, therefore, some one or 

 more departments may be waiting on others, or 

 killing time at our expense. 



To sum up, in my opinion, the proportionate 

 cost of labor is largely increased by reason of 

 short hours. 



There is a point in everybody's factory (meas- 

 ured by output with relation to cost) where 

 profit-making starts. Where that point is in 

 each one's factory, I cannot say, but I am con- 

 vinced that while it may be possible in other 

 lines of manufacture to run half time and make 

 some profit, that It does not exist in this line of 

 business. Our profits for many years, and under 

 the best conditions, have been too little. Some 

 benefits have accrued through association during 

 the past two and one-halt years, but we are yet 

 too young as an association to have convinced 

 all of those engaged that their only salvation is 

 In association. The association, in my opinion. 

 Is the only remedy. 



Cutting of prices is not a remedy, but an ag- 

 gravation of the evil. I thoroughly believe that 

 this has been successfully demonstrated during 

 the past few months. In our club organizations, 

 where we have been getting together at short 

 intervals, we have learned that our experiences 

 were Identical, viz.. few orders and consequently 

 short time. The cutters of prices, If there are 

 any among us, have fared no better as to volume 

 than those who have maintained prices ; they 

 have made no more hours, they have had the 

 added cost, and the reduced selling price, and 

 are, therefore, in worse condition in my opinion 

 than if they had stood firm until the evil days 

 are past. 



We are going through troublous times and the 

 end Is not yet. It is not a case of the survival 

 of the fittest, unless the fittest is he who con- 

 serves his capital by pursuing the most careful 

 and cautious methods — one who does not rush 

 in and take any contract at any price, or sell 

 anyone, no matter what his financial and moral 

 responsibility may be, tor the sake of getting 

 his orders. Such an one may have as much when 

 business resumes as he had when It ceased : other- 

 wise, he will have less and much less, and may 

 work serious calamity to some of us. 



I do not know that I have presented any argu- 

 ments to you to substantiate my views. It is 

 perhaps the case that my views are more in the 

 way of assertion than argument ; but I hope that 

 I have presented some little food for thought. 



Mr. Anderson : We would like to bear some 

 expressions of opinion on the work that has been 

 done by the Executive Committee in employ- 

 ing an assistant secretary, and something about 

 the credit and collection department. 



Assistant Secretary's Work, 



-Mr. Young : As to what has been done since 

 my appointment as assistant secretary, I can 

 tell you in a very few words ; as to what wt 

 hope to accomplish. I roar that would take more 

 time than you are willing to devote to hearing 

 me. With regard to credit and collections, as 

 the proposition was outlined, the idea was not 

 to use mercantile agency methods exactly, or go 

 into their details, but to go after information 

 from members of the association that cannot be 

 obtained through the average agency, in the 

 way of personal observation and experience. 

 This experience bureau we will endeavor to make 

 just what the name implies. It will bring to 

 hand information peculiarly valuable to mem- 

 bers of this association manufacturing all kinds 

 of stock, because you all sell to about the same 

 houses, and the experience of a rotary-cut man 

 with any one of these buyers will guide a quar- 

 tered oak or a panel man, and from it the latter 

 may be able to learn what he may expect when 

 he deals with them. Each member ought to 

 compile a list of all buyers on his book for the 

 past several years, classifying them according 

 to the manner in which they are treated in re- 

 gard to inspection, payments, unjust claims or 

 demands, etc. It depends on members of tht 

 association whether or not this service will be 

 valuable. Of course, you understand the in- 

 formation will be confidential with me. It is a 

 trust which you repose in me to that extent. 

 and I want every one to cooperate. As to col- 

 lections, I have done little as yet, but have had 

 results. 



Mr. Anderson ; I am sure we don't need to 

 .state that we all have confidence in Mr. Young, 

 and I think the association as a whole Is in 

 favor of the work as authorized by the Execu- 

 tive Committee. To save time, I would like to 

 ask that any member who has any objection to 

 offer, or suggestion as to a desirable change in 

 the plans oiitlim-d for this information bureau, 

 shall talk to us about it at this time. Is there 

 any one who is not in hearty cooperation with 

 this movement? 



Various members expressed themselves as emi- 

 nently satisfied with the handling of affairs and 

 recommended placing accounts in Mr. Young's 



different 



several that 



hands for collection, trying out the plan until 

 the next meeting. 



Mr. Kline : I move that action of the Execu- 

 tive Committee in the matter of the employment 

 of Mr. Young and In the establishment of the 

 credit and inspection experience bureau be here- 

 by confirmed. 



The motion was duly seconded and carried. 



President Anderson read a number of letters 

 from members regretting their inability to be 

 present, and then called for several other papers 

 which had 'oeen prepared for the occasion. 



Mr. Williamson's Paper. 



B. W. Lord read a paper by D. W. William- 

 son of Baltimore, who was unable to be present, 

 on "Is the Price of Veneer High Enough as 

 Compared with Lumber Values?" 



The principal difficulty you will encounter 

 when you undertake to compare the value ot 

 veneer "with the value of lumber will be to es- 

 tablish a basis of comparative cost. We mean 

 the production of veneer is so radi- 

 all its (lelails that a compari- 

 ith the cost of lumber is almost 

 or quite futile. To be sure, they are both pro- 

 duced from the same Uiud of trees, but the 

 differences between them begin at the stump, 

 selected logs, and only one of 

 lid be accepted by the sawmill 

 would do for veneers. Therefore the sawmill 

 can work up everything in the forest except the 

 roots, while the veneer mill must leave 50 per 

 cent of the forest or utilize it in some other way. 

 for this reason a discussion of the question 

 proposed resolves itself into a resume of the dif- 

 ferences between the method n( prndiietion of 

 veneer on the one hand ainl tin- nn'ih.id of pro- 

 duction of lumber on the uih. r. I'.n ii must be 

 understood in the outset liiai Ih.- . niii]t:u"ative 

 cost of veneer and luniliei' must !»• ronsidered 

 primarily and the selling price as a resultant. 



Now. the sawmill goes to the timber. Usually 

 the timber is first procured and the sawmill lo- 

 cated where the logs can be most economically 

 mobilized. 



There is no necessity for securing orders In 

 advanqe of operation — the products are stand- 

 ard. There is little cfitting to specifications ; the 

 grading is done after the lumber is cut and 

 ready to be prepared for the market. Every log 

 is cut into lumber as it comes to the mill. The 

 results are that the timber used by a sawmill is 

 procured at lowest possible cost — there is no 

 selection and no freight — while the processes of 

 manufacture are uninterrupted and the products 

 are guided by a knowledge of what the market 

 demands. 



Not so with the veneer mill. There is little 

 or no advantage in locating near the timber ; 

 logs must be selected for veneer logs and col- 

 lected from every direction, leaving out the poor 

 and unfit logs and accepting only prime, suitable 

 logs for the purpose in view. No logs 

 good : ■ ■ * " 



for 



best are the cheapes 

 ly the cost is Increased proportionally, 

 sawmills sell their best logs to veneer mills 

 than they would bring if sawn 



into lumber 



It follows that the cost of veneer logs greatly 

 exceeds the cost of saw logs. There are some 

 exceptions to this statement, but they only prove 

 the rule. Having paid more for logs and paid a 

 considerable freight tariff because the mill can- 

 not be located near to the timber like the saw- 

 mill, does the veneer mill then find that it has 

 an easier proposition than the sawmill? By no 

 means. The mill cannot proceed to turn out 

 veneer to be marketed (except possibly in the 

 rose of qunrtercd nak veneers). It must proceed 



to ■•.i.i.ni r.i.rv' It must await the pleasure 



.1 1 1 . r.- is no steady, uninter- 



;: 1.1 I ilcrs are often small, the 



I, delays are innumerable 



I i ■ 1.^ are wanted in short 



, ^: "If you cannot ship 



w.' will order elsewhere. 



! ■I:\ and free from knots, 



.1 .: . w- Y"our grading rules 



,11,, -i ,1 I , :,,|nire this for a job that 



11,11 i,,,i .,,j, , I .,, ,1, 1,,!... Other mills will fur- 



,,i,i, i, 11,, ,, , ., ,,111 It. We wish to favor 



i,,,i «iii, 1', ,!, Ill I he stock must be equal 



I,, uii.ii ' II getting from others. 



N,,\v. -i\,' 11- :i - i ii't of veneers and we will 



Mi-iid VI. li .j,.r ;.ii,-ii]e».^. Other people are clamor- 

 ing for it, but we think you can take care of 

 our wants, and we want to get started with 



.Mraost (he entire business of the veneer 

 mill i- ,i,:,,l. ,1], ,f iii-t siu-h exasperating orders. 



I _, • , must be kept on hand. 



. , I. I vat and cut the next 



,i , .1 nut too late, by neglect 



,.i ,,,,i-i III nil III iiHcd In a hurry and ship- 

 ment ■Tnsliert. ' IJut this does not give the 

 veneer mill steadv, continuous work. It makes 

 the operations spasmodic and Its system de- 

 sultory. 



It will be seen that the sawmill has immense 

 advantages in the lower cost of timber and in 

 the character of Its orders ; but the greatest 



