RECORD 



June 



c. II. \viii;ri:sTi:i;. ciiirAOi), 



VICE I'RESIIJEXT 



ILL., THIKD 



EltAXK F. FISH, 



11 l< 

 1 AKY 



ILL., SECRE- 



V. BABCorK, riTTSr.rRGII, TA., 

 UIKECTUU 



undi'i- this policy with those obtained by the National Ilardwoort Lumber 

 Association. 



Policy Justified 



This (|iiestlon of original Inspection seems vital to our committee for 

 the reason that we look upon our inspection service, available to all our 

 nn'iiilier.s wherever the lumber is located, as one of our greatest assets. 

 The National bonded certificate of inspection is known all over the lundier 

 consuming world, and your conference committee I think correctly repre- 

 sented the sentiment of this association that no change be made in our 

 Inspection service or in the present methods of issuing certificates of 

 Inspection which would detract in any way from its usefulness to our 

 membership. 



The only argument presented in criticism of the custom of making in- 

 spections at points of origin as we are now doing is that mills and shippers 

 in central locations have inspectors more quickly available, and get better 

 service from the inspection department than those less favorably located. 

 This Is a matter of administration and I believe is being handled by the 

 executive office to the satisfaction of our members. 



November 11 came the armistice, putting an end to any contention on 

 the part of government officials as to inspection rules. On December l.S, 

 191S, at Louisville, the Hardwood Manufacturers' Association was amalga- 

 mated with another organization and its inspection rules went out of 

 existence. 



We have every reason to feel proud of our record during the war. Our 

 Inspection department was able to turn our service to the use of the gov- 

 ernment and we submit that this organization, which stood the test of 

 war and is now meeting the test of post-bellum conditions, is one of the 

 chief stabilizing influences in the market today. 



Conferences Come to End 



j\t the meeting of the directors in January a resolution was adopted 

 that further conferences with other organizations on inspection matters 

 were not desirable, but that propositions in relation to changes in our 

 rules of inspection, or in their application, or in the administration of 

 our inspection department, should be submitted and replied to in writing, 

 which correspondence should be given to our members through the official 

 monthly bulletin and to the trade at large through the lumber trade press. 



Recognizing the vital importance of stability, this association has always 

 opposed frequent changes of rules of inspection. Practically no requests 

 for changes were submitted to the inspection rules committee during the 

 past year. During this time our membership has increased more than 

 ever before in the history of the association and many of these new mem- 

 bers are coming in because they agree with the policy of not making 

 frequent changes In the inspection rules. 



It is plain, therefore, that the interests of this association are not op- 

 posed to those of any other organization, but intend only to insure to the 

 buyer and to the seller of hardwood lumber a guaranteed standard of 

 value for the commodity in which they deal. 



Our members come in contact with all industries manufacturing hard- 

 woods and are familiar with the changing conditions in the requirements 

 of the consumer. There is no question, therefore, but that changes in 

 rules as they appear desirable will be proposed by our members from time 

 to time and passed upon by the association as provided by our by-laws. 



Our inspection rules committee is always ready to confer with any of 

 our members on inspection matters. Conferences have been frequently 

 held between this committee and representatives of hardwood lumber con- 



suming industries for the purpose of agreeing upon reasonable and prac- 

 tical specifications covering material required by them. Out of this con- 

 sideration for the consumers of lumber and co-operation with their repre- 

 sentatives has grown a mutual confidence and understanding which has 

 been of great benefit to the members of this association and to the various 

 industries using our products. 



Surplus Government Stock 



In February your president, together with Horace F. Taylor, president 

 of the National Wholesale Lumber Dealers' Association, at the request of 

 Mr. Richard L. Humphrey, then chairman of the Building Material Com- 

 mittee, attended a conference at Washington, with reference to the dis- 

 posal of surplus hardwood lumber, other than mahogany and walnut, in 

 the possession of the war department. It developed that the total amount 

 which might possibly be offered was estimated at about ten million feet, 

 a large part of which was located at different factories which had been 

 working on war orders, and the final amount to be ottered for sale would 

 depend upon how much of thi.s lumber was taken over by the plants them- 

 selves in their settlements with the government. 



Mr. Humphrey stated at this conference that bis purpose in asking 

 representatives of the hardwood trade to attend this meeting was to pro- 

 tect the industry against any possible injury due to any prices being 

 made by the government below the current market values. It was then 

 agreed that this material should be sold to the best advantage, and that 

 in ascertaining market values the services of a committee consisting of 

 Horace F. Taylor, R. M. Carrier and C. A. Goodman, might be called upon. 

 Inquiries as to prices from the departments were to be sent direct to the 

 office of the National Hardwood Lumber Association in Chicago, and from 

 there referred to the most available sources of information. 



Some few requests have come in for prices on different items, whicb 

 information has been furnished promptly and we now understand prac- 

 tically all lumber remaining for disposition in this way has been sold. 



It will thus be seen that the hardwood lumber industry has been for- 

 tunate in not having to deal with a great surplus of its product in the 

 hands of the government, which has been a serious problem in many other 

 lines of business. 



Declined to Enter a Conference 



In March a number of our members were requested to go to Washington 

 to attend a conference with the industrial board of the Department of 

 Commerce. Our officers did not feel that they should take part In this 

 conference as representing our association for the reason that the Na- 

 tional Hardwood Lumber Association has nothing to do with the making 

 of prices. Aside from this, lumbermen will not look with favor upon the 

 policy of inaugurating government price fixing in the hardwood industry 

 during the period of readjustment. 



The proposed conference with the hardwood representatives was to be 

 fixed at a date after a conference already arranged with the yellow pine 

 manufacturers. Therefore it seemed best for us to make no plans for a 

 conference until the yellow pine situation developed, for if no agreement 

 were arrived at between the industrial board and the yellow pine manu- 

 facturers it was very unlikely there would be any effort toward an agree- 

 ment with the manufacturers of other kinds of lumber. 



The yellow pine manufacturers and the industrial board failed to agree 

 upon the principle of fixing prices, and no further conferences were called 

 with any lumber manufacturers. Later the United States Railroad Ad- 



