HARDWOOD RECORD 



25 



to the benefit of all the mills. It shoukl further work to the iuterest 

 of the wholesalers in general. A mill that maintains a sales force 

 must get from two to three dollars a thousand more for its stock than 

 a mill that sells through a wholesaler. The wholesalers can then 

 sell at the same price as the mill first mentioned and yet prices all 

 around will be the same — in fact, in the first ease the mill can quote 

 the wholesaler the lower price and do a greater volume of business. 

 The gentleman speaks of grade-stuffing. He is right. There is 

 nothing the legitimate wholesaler has a harder fight against than this 

 evil; but there is another thing (and it should be called an evil) which 

 is detrimental to good business and is against good merchandising 

 policy, namely, the practice of putting up especially fine grades to sell 

 at the same price as the bulk of manufacturers charge for the 

 standard or so-called standard grades. The writer has in mind one 

 West Virginia manufacturer who puts up a grade of number one 

 common that contains about a third of ones and twos. Yet he sells it 

 at a price sometimes less than the market, but mostly at the price of 

 the market. Is it good merchandising to give away cold, hard-earned 

 dollars? The writer wouldn't say a word if this manufacturer asked 

 a price equal to the value of the stock, but this is rank injustice .to 

 other manufacturers of a like grade and kind, as well as a big loss to 

 himself. The writer puts up a grade of red gum that is at least five 

 per cent better than that usually shipped, but he gets a proportionately 

 higher price than the market for the stock. That is, in the strictest 

 sense, good merchandising and, in fact, the only right policy. It 

 seems to the writer that here is a field for co-operation, and perhaps 

 some education administered to these manufacturers would put into 

 practice some of the ideas that co-operation suggests. 



The gentleman hit the nail squarely on the head when he said that 

 costs are receiving too little attention, especially the selling costs. 

 Traveling expenses are always going up, owing to the ever-increasing 

 cost of living. For the latter reason our office help expect more; all 

 salaries are higher, in fact. This must be taken into account in sales- 

 costs and most figures should be revised constantly so that an absolute 

 basis is assured. 



Considering another question, the "frivolous complaints" as to 

 shortage and grade should be carefully investigated. The writer's 

 concern adopts the following policy in all cases wherein either of the 

 above instances the dispute is small. We compare the two tallies and 

 if the difference is something like 300 feet, we enclose both tallies with 

 a letter saying, "We do not claim that our inspectors are infallible 



and there is always a chance for an error. At the same time there is 

 the same chance on the part of your man. For this small difference 

 it would cost us considerably more to investigate or send an inspector 

 than the worth of the disputed stock. Now, you are fair-minded — 

 don 't you think the proper thing to do is to diNide it up, each standing 

 half?" Or in the case of a few hundred feet off grade the same 

 strain could be applied — possibly mentioning the fact that (in the case 

 of a shipment of Xo. 1 common) there might be a corresponding 

 amount of higher grade in the car that had simply been counted and 

 inspected as the grade sold. In nearly every case wo find that these 

 small matters can be so adjusted. Of course, in the case of any par- 

 ticular customer, if tlieso matters hapjiened repeatedly, we would most 

 assuredly make a thorough investigation, and if right make the cus- 

 tomer see the point. 



There are always ways of handling similar matters to advantage — a 

 little thought and experience in close personal contact will soon tell 

 you how to do it. You can never really get away from these small 

 matters and it simply resolves itself into a matter of tactful handling. 



Near the end of the talk referred to the gentleman says, ' ' The more 

 direct and intimate the contact between the producer and the con- 

 sumer, the less there will be of sales costs in proportion." The writer 

 begs to differ in that statement, and he does not look at it from the 

 viewpoint of the lumber business alone. He has closely studied the 

 methods of the largest concerns in other lines — those of national repu- 

 tation — as well as to talk with their sales managers and cost experts. 

 They are all agreed that the wholesalers are the factors of economic 

 distribution. Nearly every article you can think of is handled through 

 wholesalers, even though it is advertised by the manufacturer himself, 

 and if space permitted the writer could show absolute proof of these 

 statements. 



Do you know that nearly every line of business has been through 

 the mill-to-consumer idea and had to give it up because it is not 

 equipped to do it? The men in general at the manufacturing end are 

 not the right type of merchants; they may be efficient in manufactur- 

 ing, but they hardly know the first principles of merchandising. The 

 manufacturer-to-wholesalcr-to-consumer trade channel is the only and 

 proper one — first, because it makes each a specialist, and, second, 

 because it is the most economic. The manufacturer spends his entire 

 time reducing his costs and perfecting his manufacture — he has no 

 sales worries. The wholesaler is then a sales specialist and has no 

 manufacturing worries. Costs in both eases are lower. It has been 

 proved so many times that it is hardly necessary to go into it again. 



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Traffic Matters Around Memphis l^ 



The railroads, as forecasted in the last issue of Hardwood 

 Eecord, have voluntarily withdrawn the increased tariffs, affecting 

 /ihipments of lumber and lumber products from milling points in 

 the South to Canadian destinations, amounting to from two to six 

 •cents per hundred pounds. This advance was strenuously opposed 

 by the Southern Hardwood TraflSe Bureau, representing hardwood 

 lumber interests of this city and section. Hardwood lumber inter- 

 ests from other southern centers also appeared at Cincinnati and 

 St. Louis to give testimony calculated to bring about an order 

 from the commission countermanding the advance. The railroad 

 officials evidently came to the conclusion that the time was inop- 

 portune or that the lumbermen had made out entirely too strong 

 a ease against them. They have therefore voluntarily withdrawn 

 the advance and have thus taken the matter out of the hands of 

 the commission which had it under advisement. It was suggested 

 a few days ago that the Southern Hardwood Traffic Bureau might 

 insist upon a ruling from the commission in connection with the 

 case, but it is now said that the action of the railroads ends the 

 controversy. 



Announcement has also been made that the western lines have 

 cancelled the proposed increase in tariffs from points in Louisiana 

 and Arkansas to Ohio and Mississippi river crossings. The ad- 



vance was to have been about two cents per hundred pounds. A 

 short time ago the western lines withdrew the proposed increases 

 from points in the West to destinations in Kansas and Nebraska. 

 This is only another way of saying that the railroads have volun- 

 tarily withdrawn increased tariffs in three distinct cases. In not 

 a single instance have they been successful in getting an advance 

 approved by the commission. 



The withdrawal of the advance on the part of the western lines 

 has resulted in a change in the schedule of the Interstate Com- 

 merce Commission. A hearing was to have been held at St. Louis, 

 covering the proposed advance which has been withdrawn, but 

 this has been changed from St. Louis to Memphis. The hearing 

 at this point will be for the purpose of taking testimony in con- 

 nection with the proposed increase in rates from Memphis and 

 Mississippi points to New Orleans and it will be well attended by 

 the officials of the Southern Hardw-ood Traffic Bureau and other 

 prominent lumbermen of this city and section. 



- George D. Burgess, president, J. R. Walker, attorney, F. B. 

 Robertson and other officials and members of the Southern Hard- 

 wood Traffic Bureau have just returned from New Orleans, where 

 they went to attend the hearing before the Interstate Commerce 

 Commission in connection with the through bill of lading contro- 



