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Members of the Kational Veneer and Panel Manufacturers ' Asso- 

 tiation held their eighth annual meeting at the Auditorium hotel 

 iu Chicago on December 10 and 11. An unusual attendance marked 

 the meeting. Besides the gratifying attendance, another feature 

 of particular interest was the unusual character of the papers pre- 

 sented and tl^e interest with which the members entered into various 

 discussions. On the whole the meeting can be voted one of the 

 most profitable which was ever held by this association. 



President C. T. Jarrell opened the meeting with an address in 

 which he outlined the development in the veneer industry during the 

 past five or six 3'eaxs. He spoke of conditions as prevailing imme- 

 diately after the panic of 1907, when the mill capacity was very much 

 in excess of the legitimate consumption. This resulted in a continu- 

 ous fight for business regardless of values, which condition prevailed 

 for several years, although there has been a natural and steady 

 increase in demand during that time. In speaking of present condi- 

 tions and the unusual demand. President Jarrell said that, while there 

 is ample market to take care of all the production of the members, 

 still there is also ample manufacturing capacity to meet all possible 

 calls for stock made by the veneer and panel companies. The excess 

 of immediate demand over supply was attributed by the speaker to 

 unusual circumstances. In the South the last winter proved to be 

 the most unfavorable for getting out rough stock that has ever been 

 experienced by the mills in that territory. Northern mills have in 

 many cases been closed down during the fall because of shortage in 

 timber supply, and will be unable to start up again until this can be 

 replenished after the winter sets in. 



President Jarrell sounded a note of warning against overproduc- 

 tion, recalling the dire results on account of increase in capacity in 

 1907. He stated that veneer and panel manufacturers are now in 

 position to realize a profit from their manufactures and that each 

 should resolve to do his utmost to prevent a repetition of the errors 

 of that time. 



Co-operation, according to the speaker, is one of the essentials 

 which the veneer and panel business has lacked to a marked extent 

 since its inception. "In the past," the speaker said, "the veneer 

 and panel manufacturers have been entirely too exclusive in their 

 demeanor, too cold and distant, and too many of them have been for 



—24— 



themselves alone, overlooking the fact that when they are trying tO' 

 help someone else by free discussion of their methods, they are also 

 helping themselves. ' ' The greatest possible good from association 

 work can come from this very point through co-operation. Conditions 

 are ripe at present for complete co-operation and new plans for 

 stronger and more effective co-operation have been made and put iu 

 effect. By reason of these plans, more manufacturers are today 

 interested in the association work than ever before. 



Touching on prices, the speaker said that they are not what they 

 should be and that he feared the item of cost is not claiming sufficient 

 attention. He suggested that every mill should employ an adequate 

 cost system and every manufacturer be able to tell exactly what his 

 goods cost. 



The president deplored the condition of the various states in the 

 matter of industrial liability. He stated that in many instances there 

 is practically no defence in case of accident and that consequently 

 the rates of liability insurance companies have been advanced several 

 hundred per cent. In addition to this factor, the increase in trans- 

 portation cost and the cost of logs and stumpage and labor must be 

 taken into consideration in figuring value of jiroduels. 



Secretary E. H. Defebaugh delivered a strong talk to the members- 

 in which he touched on various vita! questions. The theme of his 

 address, however, was, as with President Jarrell, co-operation. 

 Through co-operation veneer manufacturers will be able to buy logs 

 on a more just basis of cost and will be able to work out many 

 questions vitally affecting individual membership. The speaker 

 brought out the point that in figuring prices, costs of various items-' 

 entering into production as existing a year ago cannot be used. Log 

 values have advanced so materially, cost of labor has changed so- 

 remarkably, and other items have taken on such a different aspect that 

 an entirely new status of conditions prevails. He suggested that 

 overhead charges are usually figured much too low and that contingent 

 expenses, such as are encountered for instance when mills are shut 

 down, are seldom considered concretely in arriving at cost of produc- 

 tion. He strongly urged members to consider that the philanthropists 

 in business are in business for the sake of the buyer only and not 

 for the sake of working out a living profit for themselves and their 

 families. 



