February 25, 1917 



The Lumberman's Round Table 



From the Consumer's Standpoint 



One of the best things that could have happened, from the stand- 

 point of the consumer of dimension lumber, was the organization of 

 the association of dimension manufacturers last month. This business 

 demonstrates in excellent fashion the truth of the statement that it is 

 to the interest of the buyer that the seller make a profit on his opera- 

 tions — otherwise he cannot continue to serve the consumer effectively. 

 The dimension business has always been marked by a lack of real 

 knowledge of production costs on the part of those engaged in it; at 

 least, buyers in many cases were able to get stock at figures which, 

 compared with the cost of lumber plus labor and manufacturing ex- 

 penses, appeared ridiculously low. This has not made for good 

 service; in fact, one of the things buyers have been in the habit of 

 complaining about was that specifications were not ftlways carried out 

 with sufBeient care, and that the apparent advantages of buying lum- 

 ber cut to size have been spoiled by practical defects of carrying out 

 the idea. Thus low prices, while seeming to favor the buyer, have made 

 for indifferent service, so that the situation has been satisfactory to 

 neither party. 



The new association will confer a benefit not only on the manufac- 

 turers belonging to it but to consumers of that kind of stock if they 

 put the business on a business basis; bring about the adoption of 

 correct methods of figuring costs, and develop s.elling prices represent- 

 ing something more than guesswork. This may mean that the buyer 

 will have to pay more for stock, but he wUl get better service; and 

 the writer predicts that this will lead to more factory men, instead 

 of fewer, buying dimension lumber than are being supplied that way 

 at present. 



Lumber Trade After the War 

 Lumbermen who are on the lookout for bullish influences would have 

 been interested in a little talk which a Becord correspondent had 

 recently with an officer of a concern which is spending more money than 

 any other to enable the metal bed to stay in the running with that 

 made of wood. Just now the wood bed is on the map in big letters, 

 and the metal bed people are justified in feeling that they have got 

 to fight to hold their own, not to mention increasing the volume of 

 their business. This is good news, of course, for the lumberman; but 

 the attitude taken by this metal bed man with reference to conditions 

 in the lumber trade after the war ought to make the hardwood operator 

 feel pleasant, too. 



' ' We figure, ' ' explained the bed manufacturer, ' ' that we are now in 

 the worst possible position: that from now on conditions will get 

 better and better for us, and less easy for wood bed makers. Eight 

 now, with the war going on, steel prices are 'way up, and steel is hard 

 to get at any price, owing to the requirements of the munitions makers. 

 After the war the situation will be reversed. The demands for steel 

 products wUl fall off, while the requirements of Europe in the way 

 of lumber will certainly force prices up materially. That is the way 

 we have it figured out." 



Assuming that the bed man, who has a $6,000,000 company and 

 enough investment to warrant a careful investigation, knows what he 

 is talking about, the future looks pretty good for those in the hard- 

 wood business. 



The Kitchen Cabinet Trade 

 According to one of the best posted manufacturers of kitchen cabi- 

 nets in the country, whose plant, of course, is located in Indiana, there 

 are more than 120 concerns making kitchen cabinets. This is a few 

 more than one would have thought from a casual inspection of the 

 field, and suggests the extent of the consuming capacity of these 

 concerns. 



The most impressive feature about the kitchen cabinet business, as 

 revealed by an inspection of the Chicago market during January, is 

 the improved construction which is being used in the manufacture of 

 these goods. Instead of being sold because of the novelty of the idea, 

 as in the old days, kitchen cabinets are now staple, and business is 

 secured because of convenience in design and durability of construc- 

 tion. This means that hardwoods are being used in greater amount, 



that the drawers are being made of glued-up stock, that the hardware 

 and the finish are improved, and that, in general, the cabinet is a 

 better piece of furniture. Some of the cabinets sell at from $40 to $50, 

 which suggests that pretty good material and workmanship can be 

 put into them. 



There was recently one exhibition of cabinets shown in the 

 Chicago market in which tops made of black walnut combined 

 with white maple were featured. The tops were made with inch 

 strips of these two materials alternating. Taking it altogether, 

 it looks as if this line offers a better market for hardwoods now 

 than it ever did before. 



The Test of Ability 



An old proverb runs, ' ' If you want a thing done well, do it your- 

 self." The modern business man says, "If you want a thing done 

 well, select your lieutenants intelligently." 



As a matter of fact, with manufacturing being done on such a large 

 scale, and with distribution and sales all furnishing problems for real 

 men to deal with, the development of the right kind of organization 

 is the real test of business ability. There are men who can run a 

 small business successfully, but could never cope with the management 

 of a large one, simply because they do not understand how to pick 

 able assistants, nor how to delegate important details to them. 



A certain hardwood man, whose career during the past ten years 

 has been a continuous record of success, is now operating six or eight 

 sawmOls in various parts of the South, and has as many salesmen scat- 

 tered all over the consuming districts of the country. Each of his 

 mills has an experienced superintendent in charge, and practically 

 runs itself. As a result of having a thorough organization, this manu- 

 facturer is able to give time to the big features of the business. 



This is not to say that department heads do not need supervision 

 and help. But the business which is well organized has the means for 

 determining when and where help is needed, and assistance is ren- 

 dered at the proper time and place. 



Putting it up to mUl superintendents, sales managers and others in 

 responsible executive positions to get things done is the best way to 

 develop ability to do them. 



When Cars Run Short 



When everything is working along nicely, and it is possible for 

 the manufacturer to load cars and deliver material to his custom- 

 ers in minimum time, a good deal of talk is usually heard on the 

 sub.iect of the advantage of letting the manufacturer, whether it 

 be lumberman or veneer maker, carry the stock. All that the 

 user has to do is to unload the material right into his dry-kiln or 

 factory and put it to work, not only cutting down his investment 

 in stock, but getting a much more rapid turn-over of his capital. 



Theoretically, this is fine business, but conditions like the present 

 emphasize the fact that the scheme doesn't always work. A cer- 

 tain rotary veneer manufacturer down South said recently that 

 the car situation is the worst that he has ever known,, and some 

 of the big buyers who seldom order ahead of requirements are burn- 

 ing up a lot of money in telegraph tolls urging rush shipment when 

 cars are almost unobtainable. And it is nearly as bad regarding 

 lumber. 



No consumer would be expected to put enough material in stock 

 to make himself independent of car shortage absolutely, but he 

 should at least have a reserve supply of some sort, so that he will 

 not be entirely at the mercy of conditions of this character. A 

 little investment in lumber and veneers of dimensions which are 

 regularly used in the plant will 'not represent a great addition to 

 the overhead — but it may make things a lot easier for everybody 

 in the production department when shipments are coming through 

 too slowly. 



Knowledge taken from the past is not always a reliable guide 

 for future performances. It must be supplemented by an under- 

 standing of progress and changing conditions. 



—17— 



