HARDWOOD RECORD 



33 



Linked with all tliis is tlie terms of sale basis upon which we transact 

 our business, unstable, irregular, discriminating, unsatisfactory to nearly 

 eTer.Tbody, bujer or seller, and which, considering the vast correspondence 

 during the past six months, will be freely discussed at this meeting, and 

 which will, if once settled satisfactorily, relieve our bureau of informa- 

 tion, collection department and our committee on arbitration from much 

 disagreeable work. 



I had intended to say a further word regarding arbitration between 

 members, but our committee report covers it all and makes some sug- 

 gestions. It seems strange that it is so difficult to find a common plan 

 for handling disputes between members, but I suppose that if it were 

 easy there would also be no cause for arbitration. 



Our association is entitled to a further word because of its standing 

 and real worth as a national factor. Mr. Tatt, while President, in an 

 address given a couple of months ago, among other things said 

 substantially : 



"You will have to have a school from which the new chambers of 

 commerce can draw their secretaries, who will train the new membership 

 in the way in which the organization can be built up, and give them a 

 practical knowledge of how they can do what they are organized to do." 



Mr. Taft, seeing the great influence of local organizations all over 

 the country undirected as to common purpose, suggested the organiza- 

 tion of the Chamber of Commerce of the United States of America. 

 Xow, if it is true and is being recognized that these various organizations 

 can do a greater good with trained secretaries, our lumber associations 

 are to be congratulated on being well in the forefront, for it is conceded 

 Ihat as a class lumber organizations have had the Iwneflt of trained 

 secretaries almost from the first, their only weak point being that neither 

 the association nor their secretaries have profited to the full extent of 

 their opportunities. A school or congress of lumber secretaries and chief 

 executive officers can undoubtedly increase the efficiency of our lumber 

 organizations, and probably we have not been able to do as well as we 

 could because of overlapping of efforts and a waste of time, and a greater 

 exchange of information between sections and interests will be a source 

 of great help. Railroads, for example, need our co-operation as well as 

 our restraint. Information properly distributed will help to present 

 our grievances or needs fairly as would the same principle apply to 

 many things. 



We have always yery wisely steered clear of any price-making schemes 

 or any schemes which may be construed as in any way interfering with 

 the free course of trade in any form. Several of our associations have 

 been organized with one definite object, thus making them specializing 

 organizations. Our own association and some others have co-operated 

 with these just so long as we have been able to see that they were 

 organized on broad principles and for the general good. 



The government's attitude in ^me of the recent suits has unquestion- 

 ably enlightened us as to what may be done through properly organized 

 associations such as ours. It is my opinion that under these enlight- 

 ened conditions we will find membership in our association being eagerly 

 sought by those who are entitled to membership therein, .ind it Is my 

 prediction that during the next couple of years our own association will 

 find corain;,' into its ranks a large number of individuals and firms who 

 desire the information and chance tor co-operative help which is herewith 

 afforded. 



Our offices at G6 Broadway. New York, are constantly being enlarged : 

 our ofljce force is constantly being added to, and the expense of handling 

 our business is constantly increasing. Part of this is met by an increase 

 of membership and part of it is also met by a greater efficiency through 

 the accumulation of material and experience. 



Y'ou will notice by the reports of our committees that there has been 

 an increased work carried on by them for the association during the past 

 year, and while our membership has not increased in numbers It is fair 

 to state, and without casting any insinuations, that the general character 

 of our association membership has greatly improved by accessions during 

 this term. We have been accused of being too anxious to add to our 

 members, and possibly the claims which have been made by some of our 

 members that membership should be sought rather than coaxed is the 

 proper method for us to pursue. 



We have had the usual regular trustees' meetings as provided for, also 

 the several meetings of the executive committee and various other com- 

 mittees as needs demanded. As secretary of the association. I have traveled 

 thousands of miles in the interests of the association work ; have attended 

 the conventions of other lumber association.s, as well as conventions of 

 various other civic organizations in which we found we had a common 

 interest. 



Our railroad and transportation department has kept good pace with 

 the ever-changing positions of the Interstate Commerce Commission and 

 the various other state railroad commissions, all of which will be covered 

 by reports read to you later in this convention. 



I wish to again furtlier urge that this association use its best influence 

 to bring about a better understanding as to what is known as regular 

 uniform terms of sale, so that there may be a greater freedom of competi- 

 tion and less discrimination in the matter of making contracts. It is very 

 generally believed, and our experience leads us to acquiesce in this belief, 

 that a uniform term of sale of lumber will work out to the benefit of the 



entire lumber trade — consumer as well as retailer, wholesaler or manu- 

 facturer. We make our contracts read "regular terms," and fifty per cent 

 of our settlements arc unsatisfactory or disputed because no one knows 

 what 'regular terms" means. I Iwlieve if we can arrive at a point where 

 a definite uniform term of sale may be adopted that there will be a great 

 conserving of mutual as well as financial loss. 



I wish also to emphasize and ask your support for the bureau of in- 

 formation in its eO'ort to make it a uniform practice that flnancial state- 

 ments shall be made before credit is granted, which practice would. If 

 universal, eventually in a great degree eliminate the dishonest merchant 

 not entitled to credit, as fifty failuns during the past year have proven. 



I am pleased indeed to report the association to be. in my opinion, in 

 a strong and flourishing condition, as well equipped to perform its work 

 as at any time in its history. This, of course, because of our accumula- 

 tion of experience. elTort and history, should be expected. 



The members of the association are entitled to a great deal of credit 

 for the unselfish manner in which they have again this year responded to 

 the call whenever occasion required. 



From correspondence received I believe this meeting will be one of the 

 most profitable of any we have had, and the basis will be laid here for 

 a very prosperous coming year. I wish to thank the members of the 

 association for personal favors and support. 



W. \V. Schupner, department manager of the bureau of informa- 

 tion, told of the workings of that bureau. He said that the de- ' 

 mand upon the bureau last year was greater than at any other 

 time, which was shown by records as well as by the voluminous 

 files of correspondence with the subscribers. The report said that 

 during the past year it has been more necessary to follow infor- 

 mation closely, and revise and re-revise reports than ever. Every 

 possible influence has been brought to bear upon the work. Daily 

 conferences were held for the purpose of obtaining more detailed 

 facts concerning financial statements. 



The confidence reposed in the bureau by the trade continues to 

 grow, and voluntary statements are becoming more frequent. This 

 confidence has been very helpful during the last year in bringing 

 about a better condition of affairs. 



Failures last year required considerable attention, not only as 

 regards the payment of accounts but in following up possible after- 

 effects. Lists of creditors have had to be carefully scrutinized 

 with a view of ascertaining if some individual creditor was in a 

 position to stand the probable loss. This, according to the report, 

 necessitated some pretty pointed interviews in correspondence, but 

 no hesitation was felt in going after facts which were pertinent 

 and absolutely necessary for complete and comprehensive reports. 



The cjuestion of signed financial statements occupied a great 

 share of the bureau's attention, and the increased satisfactory 

 replies are most encouraging. The new concerns have usually been 

 most prompt in signing such statements, but a considerable senti- 

 ment is felt on the part of the older concerns against complying 

 with this request. A signed financial statement as a basis on 

 which to secure credit is becoming an instrument which can not 

 be treated lightly, according to the report, because some states 

 have passed laws which make it a misdemeanor to seek credit by a 

 written statement known to be untruthful. The federal govern- 

 ment also has a section in the penal code which imposes penalties 

 in this respect. 



Relating of actual experience by members is a valuable feature 

 of the bureau's report, and their effectiveness can not be doubted. 

 Several hundred written opinions are received at the office each 

 day, which gives an idea of the extent of the cooperation. 



The system of investigating through local attorneys and similar 

 services has been very successful. Frequent interviews are had 

 with the bank credit men resulting iu an accumulation of facts, 

 which find the'ir way into the reports. Some of these interviews 

 and special correspondence from members last year revealed the 

 report current among banking circles that because of the experi- 

 ences of certain banks iu becoming creditors in some large lumber 

 failures, some discredit is caused to the lumber trade and com- 

 mercial lumber jiaper is sometimes regarded skei>tically. This 

 matter was immediately investigated by Mr. Perry, who attended 

 a conference of banking houses, where the character of failures in 

 question was discussed, ami the unjust and erroneous impression 

 at least overcome. 



