HARDWOOD RECORD 



23 



desired, nevertheless atiaiunK'uts iutlicate that 

 there is an opportunity inr just such a depart- 

 ment in our assoL-iation. and 1 bespeak for it 

 carefui consideration on your part. 1 refer to 

 this only because 1 wish to see it supported. 

 Yeau Book and Membership. 

 For years our members have had dithculty in 

 presenting to nonmcmbers the aims and privi- 

 leges nf the association. The compilation of a 

 statement giving these facts liad often been sug- 

 gested and discussed. The possibility of extend- 

 ing our membership into new territory quickened 

 this dfinaud for a more definite, concise state- 

 ment ; therefore, immediately following the last 

 annual meeting I'resident Dill took hold of the 

 subject and in a short time the year book was 

 prepared, containing statements of various phases 

 of w<jrk. together witli a list of officers, commit- 

 tees, members, etc. That this little publication 

 met with favor was fuily evidenced by the de- 

 mand for extra copies, and if "imitation is the 

 siucerest form of tiattery" the compliment is 

 ours, in that the style has been imitated by 

 others for similar use. These booklets were 

 sent to all members, together with a special let- 

 ter roijuestiug that they be used to increase the 

 membersJiip. That the publication of the year 

 bonk was well planued is fully proven by the 

 almost immediate increase in the membership, 

 which together with the efforts of members and 

 other means at our disposal has brought into 

 I In- association this year seventy-three new mem- 



w. i: i.i'j'ciiKJin.i'. r.nsToN. :m.\ss. 



hers, and enables us to report a net gain of 

 fifty-two. The full detailed statement of mem- 

 bership is : 



Membership March 1. li)Oo 314 



Applications received since 73 



Rejected 1 



Elected 72 



386 



Uesignations and withdrawals by reason 

 of going out of business, etc. ." 20 



Association membership Feb. 2S, 1906. 36ti 

 It is well to note in passing that a gain in 

 membership such as noted adds to the year's 

 work much more in detail than shows on the sur- 

 face, such as the appointment by your president 

 of seventy-three committees of from three to live 

 each, investigations, correspondence, etc., regard- 

 ing each applicant, followed by the installation 

 of such new members into our records, mailing 

 lists and supplying them with a large number of 

 reports, general information, etc. 

 Terms of Sale. 

 I believe the time is right for special attention 

 nnd action on the apparently tabooed question, 

 tprms of sale. We receive appeals, requests, 

 threats and complaiuts daily from our members 

 regarding the very indefinite basis upon which 

 sales are made and settlements rendered. It 

 stems to me that the question is one worthy of 

 more seriotis consideration than has as yet been 

 given it. Possibly because of my position I see 

 and lipar mure about it than do others. Buyers, 

 boih wholesale and retail, say they are ready for 

 uniform terms, and united action by the mem- 

 bers of this association alone would accomplish 

 it in one year, but I believe we can get the 

 < ooperation of others if we properly present it. 

 By-Laws. 

 At a meeting of the trustees it was voted to 

 have the book of by-laws prepared in such form 



as to eliminate these sections which are not In 

 practical use and which do not properly provide 

 for the needs of the association and suggest new 

 rules that will be more in accord with "our pres- 

 ent needs. These prepared copies will be sub- 

 mitted at tne meeting for your consideration. 

 Office. 



The office at OG Broadway seems to be a con- 

 venient meeting place fer a large number of 

 members and the meml)ers' rooms are in daily 

 demand for visitors, consultation, etc. The de- 

 mands upon the secretary's time this year has 

 been probablj* greater than in any other year, 

 aud the v;'.riety of same has necessitated an un- 

 usual amount of traveling, while at the same 

 time the details of association work have just 

 as strongly demanded onv attention at the office. 



I feel that 1 can report the general work of 

 the association to be in lirst-class condition, and 

 as stated before will refer you to the committee 

 which will '^ive a full resume of the year's work. 



1 thank ynu foi the uiany courtesies of the 

 year and your attention to this report. 



liespect fully submitted. 



Eugene l<\ Perry, Secretary. 



Report of Treasurer. 



Treasurer Kredericlc W. Cole reported that 

 the association had about .?500 in cash on hand, 

 but there were debts maturing against the asso- 

 ciation of Ijerween $3,000 and $4,000. He ex- 

 jtlained in detail the cause of this deficit, stat- 

 ing that it was anticipated and that the finan- 

 cial plans at hand would speedily wipe it out. 



The committee on fire insurance, of which 

 George M. Stevens, Jr., was chairman, reported 

 as follows : 



Report of the Insurance Committee. 



.Mr. President — Gentlemen : In our report of 

 last year your committee dwelt at some length 

 on the organization of the several fire insurance 

 II mpanies fostered by this association. That re- 

 port shows that in the last ten years this class 

 ot insurance has been steadily gaining the con- 

 fidence of the public at large, until risks amount- 

 ing to over fifty millions of dollars were carried 

 ill the companies, and this figure does not include 

 some of the larger organizations who carry large 

 ris.ks on manufacturing plants. 



The pamphlet issued for general distribution 

 which forms a part of this report shows total 

 risks carried at the present time of $60,198,000. 

 and we feel certain the limit is not yet reached. 

 The pamphlet referred to covers fully the statis- 

 tical feature of our report and has been prepared 

 with a view to giving all necessary Information 

 regarding the various lumber insuring companies. 

 Your committee believes that the developments 

 in the lumber trade tire insurance movement 

 during the past year have demonstrated more 

 clearly than those of auy other similar period 

 since the inception of the movement that trade 

 insurance is not only an assured success, but an 

 :ihsohitely necessary factor in the conduct of 

 our trade. The growth of every company in the 

 held has been of sufficient proportions in both 

 financial stability and business written as to 

 have no doubt in the minds of those interested 

 in the furtherance of this movement that trade 

 insurance is today an accepted institution by 

 tlie lumber trade at large both as a facility of 

 reasonable insurance as well as a protecting in- 

 fluence from arbitrary action by the tariff com- 

 panies. The committee has made a great effort 

 to arrive at some safe estimate in the amount 

 of dollars actually saved policy holders by the 

 several companies writing this class of insurance. 

 We believe a conservative estimate would place 

 the figure at $1,332,000, and this does not take 

 into consideration the saving made through the 

 reduction of premiums by the board companies to 

 meet the competition of the lumber insuring com- 

 panies. 



As an evidence of its practical working in the 

 latter connection, the New York Lumber Trade 

 Association during the past year compiled figures 

 showing the amount of premiums paid by its 

 members during the previous ten years as com- 

 pared with the amount collected for "losses, and 

 presented the same to the Tariff Exchange in 

 New York, requesting a reduction in rates. The 

 figures showed a return of only fourteen per cent 

 in losses of the total premiums paid during that 

 period, on the basis of which rates were re- 

 duced by the tariff companies on lumber yards in 

 the metropolitan district from twenty to twenty- 

 five per cent. While the credit for this reduc- 

 tion is due very largely to the aggressiveness of 

 the New York Lumber Trade Association, your 

 (ommittee has learned that in the success at- 

 tending its efforts, the members of that associa- 

 tion appreciate fully the fact that the business 

 secured by all the trade companies in the met- 

 ropolitan district, by which the tariff companies 

 have lost in the neighborhood of $1,250,000 busi- 

 ness, was no small factor in determining the 

 action of the Tariff Exchange. 



Furthermore, your committee would also re- 

 port that it finds a tardy but nevertheless ready 

 inclination on the part of the old line companies 



throughout the entire count i->- to reduce rates 

 in competition with the trade companies, and 

 while this is extremely gratifying it should be 

 borne in mind that should there eventually be 

 any concerted action, either local or general, by 

 the board companies in reducing rates to meet 

 the present schedule <il the trade companies, 

 there is a minimum rate at whicli business can 

 be written with surety an<I not expect any such 

 action to be immediately followed by another 

 reduction by the trade companies. 



Your committee believes, however, that where 

 our competition is met, is continued aud increas- 

 ing support is accorded the trade companies, 

 further reductions in rates will follow as soon 

 as surticient length of lime has elapsed to show 

 by the loss ratio that such action is expedient 

 from the standpoint of conserving the protec- 

 tion of the policy holder to the highest and 

 safest degree. In expressing this view your 

 committee fully ap|)reciates and strongly re- 

 affirms one of the first principles of trade fire 

 insurance, viz., "The best protection at the least 

 possible cost to the insured." but in attaining 

 that end let us appreciate individually what our 

 eft'orts in this direction have already brought us, 

 and where competition is met give our companies 

 more business and keep our expectations of 

 further benefits from our own companies within 

 conservative bounds and enable them to demon- 

 strate by actual experience their ability or in- 

 ability to still further reduce rates. 



And. right here, your committee wishes to 



IIl'GII MrLi:A\. I'.rKKALl). N. Y. 



nuike a recommendation to every policy holder 

 in or out of this association, and that is, that 

 they keep tlieir yards and mills in a tidy, ship- 

 shape condition and instill into their employes 

 the necessity of this in order not only to prevent 

 (ires but to aid in their property being properly 

 rated. A fire drill once a week, or even once 

 a mouth, would cost practically nothing, and the 

 effective help rendered at the commencement of 

 a fire by having your employes organized might 

 be a means of saving your entire plant. 



The records show all of the companies are 

 doing well aud have demonstrated that lumber 

 property is a good risk at from twenty to thirty- 

 three and one-third per cent less rate than was 

 previously charged, but the past few years have 

 been exceptional, as has been general business, 

 and to say that it is good business at forty to 

 fifty per cent less is impossible until sufficient 

 time has elapsed to prove it by the actual ex- 

 perience of the companies themselves. 



In conclusion, we would also reaffirm another 

 first principle of trade insurance, viz., "the main- 

 tenance of the least possible technical form of 

 contract between the assured and the company.'* 

 We believe the use in either policy or form of 

 any technical or indefinite clause, the meaning or 

 purpose of which is in any way vague or possibly 

 misleading to a layman, is a direct violation of 

 the principle and spirit of trade insurance. We 

 make this point more with an eye to the future 

 than the past, in the belief that only by the use 

 of the simplest contract and the frankest and 

 most direct relations can the future success of 

 this effort be attained. 



George M. Stevens, Jr. 



s. h. fullerton. 



B. H. Ellington. 



R. H. DOWNMAN. • 



W. D. Young. 

 A. L. Stone, chairman of the Committee on 

 Arbitration, made a report showiug that the 



