November 25, 1916 



The LiUmhermans Round Table 



Profit-Sharing Plans 



Profit-sharing is a familiar device in a good many industries, and 

 has played its part in speeding up production and increasing net 

 earnings both for the owner of the business and the man who is 

 helping to run it. But it is not often that it is applied to lumber 

 manufacturing. 



A certain southern hardwood concern recently found itself with 

 an antiquated mill proposition on its hands, in addition to two 

 other operations which were taking the time and attention of the 

 principals. There was considerable cogitation on the important 

 subject of how the third mill should be operated, and finally it was 

 decided that as a means of attracting better than average men, a 

 profit-sharing arrangement should be entered into, whereby they 

 would get a certain percentage of the net earnings, based on inven- 

 tory valuations taken every three months. 



A proposition of this kind naturally appeals to a good man, one 

 who thinks that he can put over a manufacturing enterprise in 

 good style, more than an open-and-shut, dead-level salary arrange- 

 ment, even though it is understood that increases will be in order if 

 the showing which is made is reasonably good. There is more of 

 the sporting element in the other system — and most lumbermen 

 are good sports. Anyway it was found possible by means of the 

 arrangement indicated to get two erackerjack men to take hold 

 of the mill and run it. One of them is a high-grade sawmill man 

 and the other a jim-dandy log buyer, a combination which, it is 

 needless to say, would be pretty hard to beat. 



The plan has been in operation for about a year, and while it is 

 true that conditions have been favorable to money-making during 

 that period, the fact remains that the little mill operating on shares, 

 and making a good deal less lumber than either of the others, is 

 showing a larger net profit than either of them. Not only is the 

 proportion of profit greater, but the gross amount available for dis- 

 tribution has been in excess of the earnings of the other plants. 



This is a showing which suggests a lot of things, among which 

 is the fact that it is men, after all, that make or mar a lumber 

 proposition, and that if you have the right kind of men at the helm, 

 you have a pretty good chance to make money. With indifferent 

 ■executives in charge, good timber and a good sawmill will avail 

 •comparatively little. Profit-sharing may not be the solution of 

 everybody's problem, but in this particular instance it has cer- 

 tainly worked fine. 



The Simple Life 

 Sometimes the lumbermen, especially the chap who is at the 



"practical" end of the game — bj' which is meant being out on the 



job, roughing it, and enjoying few of the softer things of life — 



feels that he has drawn a poor hand of cards. But usually the 



experience gained in this way is worth all it costs — and then some. 



It may look fine to ride in Pullmans and put up at good hotels and 



do nothing but sell lumber, but the salesman has his troubles, too. 



The man who is at the mill has plenty of chances, provided that 



he makes use of them. 



But it is from the physical standpoint that it was intended to 

 write here. Not long ago a certain young lumberman was in busi- 

 ness in one of the big industrial centers. He had an office, and 

 his work of selling was principally an office job. He had had 

 a few years' practical experience earlier in his career, but for some 

 time he had had little to do with actually making the lumber. 



He found himself getting irritable and cross, and out of sorts 

 with himself and other people. He fussed over the telephone with 

 his best customers, and waxed sarcastic in his correspondence with 

 the men who were shipping his stock. Things went from bad to 

 ■worse with him, mentally and financially, and finally he decided to 

 <juit. 



Just about that time he had a chance to tackle a mill proposition. 

 It involved taking hold of a sawmill crew out in the woods, sleeping 

 in a shanty, eating plain food and enjoying none of the conven- 

 iences of life. The salary was comparatively small, but it was shown 



—20— 



that if he made good he would be given a chance at the big jobs in 

 this organization of lumbermen. So he decided to go, just for 

 the sake of the change. 



This young man came back to the big city a few days ago fresh 

 from the mill. He looked fit and clean, hard as nails and clear of 

 eye. He laughed in the old-time way, and declared that he had 

 never felt better in his life. He had been enjoying his wrestle with 

 the woods and with the mill and with the men, and he had pitched 

 in and made good. He was coming back to the general ofiices for 

 a conference before taking hold of another and larger mill in a 

 different location. 



"This is the life," he declared, with a smile. "I used to think 

 that the mill end of the game was too rough, but now I know it's 

 the only thing. For one thing, it's a healthy kind of existence, 

 and I have discovered that if you have your health you own the 

 biggest asset of all. You couldn't give me an office job now if it 

 carried a salary of a million a month." 



And he talked as if he meant it. 



Protecting the Name 



In view of the general disposition on the part of flooring, veneer 

 and occasionally lumber manufacturers to brand their stock, it 

 is well to stop a moment and consider the responsibilities which 

 this involves. The reason branding is favored in a good many 

 cases is because of the selling advantage which it creates — such as 

 having a trade name to build an advertising campaign about, some 

 means of identification by the consumer after the material has left 

 the plant of the manufacturer, and so on. 



But the manufacturer who is branding his product is agreeing 

 to assume responsibility for its giving service and satisfaction 

 to the ultimate consumer, no matter how far removed the latter may 

 be from the producer. The brand lasts, and if mistakes occur, 

 the user is likely to make a mental note, based on the name of the 

 material, and to discriminate against this particular brand there- 

 after. In short, having a brand suggests that the concern using 

 it must exercise greater circumspection regarding the work to 

 which its product is applied than might be necessary under ordinary 

 conditions. 



For instance, one of the best-known hardwood flooring manu- 

 facturers who brands all of his material, thinks so highly of the trade 

 name to which he has given significance and standing that he 

 makes sure that conditions for the important jobs in which it is 

 used are just right so that there will be no chance for a "come- 

 back" which might have a bad effect on his flooring. Not long ago 

 he was asked to supply the material for a big hotel job, but on look- 

 ing it over he found that the floors were damp, and that this con- 

 dition would undoubtedly result in dissatisfaction later on. The 

 conti actor insisted on going ahead, having the consent of the 

 architect, and the flooring man decided not to have his material used. 



This may have seemed like a quixotic policy — but the sequel jus- 

 tified his position, for that floor had to come up later on. Per- 

 haps the flooring concern which furnished the material did not 

 get the blame, and maybe it was all saddled on the contractor; 

 but anybody who knows the building business will agree that the 

 concern which stayed off when it found that the building was not 

 ready to be floored did the wise thing. It had a name to protect 

 and a reputation to conserve, and it did it. 



It pays to look past the immediate dollar of profit sometimes. 



The handle branch of the hardwood industry has enjoyed good 

 business for some time because there has been very active devel- 

 opment in the mining industry, and there are also improved con- 

 ditions in the railway world, and these contribute materially to 

 the volume of demand for heavy tool handles. Meantime pros- 

 perity in the agricultural districts has made a big volume of 

 demand for farm tools and their handles, so that there is a pretty 

 good business all around. 



