June 25, 1919 



HARDWOOD RECORD 



25 



GEORGE E. BREBCB. CHARLESTON. W. VA., 

 DIRECTOR 



E. M. VESTAL, KNOVILLE, TENN., 

 DIRECTOR 



T. M. BROWN, LOUISVILLE, 

 DIRECTOR 



KT., 



ministration refused to accept the industrial board's price on steel and 

 the board passed out of existence. 



It was currently reported that the industrial board was proposing to 

 the lumbermen that the prices of lumber be reduced in order to give impetus 

 to building and stimulate the demand. In the face of conditions governing 

 the manufacture of lumber, and more especially hardwoods, this would 

 be impossible, as costs were advancing and labor conditions and weather 

 throughout the United States were such that so far during the present 

 year manufacturers have been unable to produce lumber in sufficient 

 volume to meet the needs of the consumer. For this reason it was evident 

 that the law of supply and demand would advance the price of lumber, 

 but if prevented by government regulation, the hardwood lumber manu- 

 facturers would be doing business at a loss. The present situation ade- 

 quately proves that price fixing of hardwood lumber for a stated period 

 Is impracticable, owing to the complex and continually changing conditions 

 attending its manufacture and distribution. 



A Traffic Bureau 



In order to bring ourselves in closer touch with .the rate-making and 

 operating departments of our transportation lines, a traffic bureau has 

 been proposed. Ever since the railroads have been under government 

 control there has been a growing complexity in the freight rate situation 

 and In traffic affairs. The movement of lumber has been impeded by 

 unnecessary embargoes and complicated regulations governing the inter- 

 change of cars and switching service, especially in the large centers and 

 on the eastern seaboard. The ordinary lumberman lacks the time and in 

 many cases the technical training necessary to keep himself closely 

 informed as to freight rate matters. Even if this were not so, the desired 

 Information is not always readily available. 



At one time railroad freight rates were practically stationary and 

 shipments were simply and directly bandied in the ordinary course of 

 business. Now the situation has changed. Shippers in order to protect 

 themselves must keep in touch daily with tariffs and traffic regulations. 



It has been suggested, therefore, that owing to the large territory cov- 

 ered by the operations of this association its activities might properly 

 include a traffic bureau. There is no doubt but that a bureau of this kind 

 representing our membership in every section of the country, originating as 

 it does one of the greatest sources of revenue to the transportation lines, 

 would have sufficient prestige not only to correct many existing faults, but 

 by cooperating with the railroad exert a potent influence against unneces- 

 sarily restrictive orders in the future. 



Question op Legisl.\tion 



Aside from this there is the question of legislation, both state and fed- 

 eral, governing railroad rates. This traffic bureau, by keeping in touch 

 with the rate-making powers, should be able to protect the hardwood 

 industry against unjust discrimination, and would provide our association 

 with means to join and cooperate with other lumber organizations against 

 an unfair proportion of the total cost of the transportation systems of 

 the country being placed upon the lumbermen, which now seems to be the 

 tendency. Such a bureau would work along the lines of our other activ- 

 ities, avoiding sectionalism and interesting itself only in such matters as 

 concern the entire organization. 



At the board of directors' meeting in Chicago, January 24 last, a reso- 

 lution was adopted providing for the appointment of a preliminary com- 

 mittee of five to report upon the advisability of a traffic bureau. This 

 committee wiU submit its report for your consideration through W. M. 

 Hopkins as chairman. 



The address by Chairman Goodman was followed by the annual 

 report of Secretary Frank F. Fish, given below in a slightly 

 abridged form: 



Report of Secretary-Treasurer 



The year closing with this, the twenty-second annual convention, has 

 been by far the most prosperous in the entire history of the association, 

 as the figures in detail contained in this report will prove. 



With the ending of the war, the activities of our war service bureau. In 

 large measure, came to an end, but government officials, mindful of serv- 

 ices rendered by the association during the war, have made several calls 

 on us since the armistice was signed, to which we have responded promptly. 



Since the close of the war letters of appreciation have reached us from 

 the British War Mission and French High Commission, and our friends 

 and allies across the sea have received assurance of our willingness and 

 earnest desire as an organization to continue to serve them in locating 

 hardwoods needed, or in any other manner possible. The various navy 

 yards have adopted the plan, on numerous items, of purchasing under the 

 bonded certificate of this association, thus eliminating much of the con- 

 fusion and difficulty formerly in evidence, which resulted in loss to both 

 government and sellers. 



Since the 1918 convention, held in Chicago last June, 194 new applica- 

 tions for membership have been received, of which eight were rejected on 

 account of being undesirable or ineligible. The record of failures and 

 withdrawal from business number forty-six ; twelve have been dropped 

 as delinquent in the payment of dues ; ten have resigned, and four have 

 been dropped from the membership rolls as undesirable. The total number 

 of new applicants favorably passed upon by the directors and admitted to 

 membership during the year is 186, which brings the present number of 

 members in good standing to, 1046. 



A most interesting fact is disclosed from a thorough check of the 

 official bulletin membership record during the six years that this publica- 

 tion has been in use. It shows 633 members lost from all causes, of which 

 445 are no longer in business, leaving 188, and of this number 103 have 

 subsequently retaken membership in the association and are now on the 

 membership list. In other words, during these six years, sixty per cent 

 of the concerns still engaged In business who have withdrawn for any 

 cause have come back into the fold. 



Activities of Members 



A careful review of the new members admitted shows that a majority 

 are operators of saw mills. In this connection, while the policy of this 

 association has been and is now unalterably opposed to any line of 

 demarkation in its membership, it may be of Interest to call attention to 

 the results of the questionnaire sent out in October, 1918, at the request 

 of the director of lumber of the Council of National Defense, which showed 

 1010 saw mills in operation by our members, with annual output of 

 5,907,000,000 feet. Replies to this questionnaire were received from all 

 but about forty of the membership, but as several of those who did not 

 reply are known to be large manufacturers operating saw mills, the total 

 herein reported is- certain to be under the actual figures and therefore 

 can safely be accepted as conservative. At the same time fully ninety-five 

 per cent of the support of the representative and responsible wholesale 

 dealers in all markets was recorded. 



The reporting department shows substantial growth and much credit 

 is due your efficient assistant secretary, H. J. Fuller, for the progress 

 jiade. A large number of congratulatory letters were received from 



