THE HARDWOOD RECORD. 



21 



buyer, consumer or inspector, who is following 

 our rigid plans, as our rules are handled so 

 that every encouragement is given to absolute 

 Impartiality. 



To further perfect the system of grading 

 and inspection. I wish to urge that there be 

 made the following changes and additions to 

 our rules and methods : 



1. That without changing the intent of our 

 ■ present rules, they should, wherever necessary. 



be amended so as to make them so plain as to 

 be easily and thoroughly understood by the 

 class of men who inspect and grade lumber, 

 and by those who buy and use it. 



2. That the greatest care should be used in 

 the selection and training of inspectors in the 

 methods prescribed for grading, under our roles. 



3. A determined demand of this association 

 that all its members avoid the demoralizing 

 practice of manipulating or changing established 

 grades so as to enable the unscrupulous to im- 

 pose on the consumers of our lumber. 



4. Every man has, or should have, a .lust 

 pride in the goods he manufactures, and to the 

 end that a manufacturer may not lose his iden- 

 tity in the trade. I would suggest that this asso- 

 ciation make provisions for ji specific trade- 

 mark or brand for every member of this asso- 

 ciation, which he can eithci- stencil or brand 

 upon his lumber in addition to the grade mark. 

 This system would insure a means whereby 

 any piece of lumber manufactured by a member 

 of this association could be traced to its origin 

 which would be a protection to the individual 

 manufacturer, as well as tend to stimulate hini 

 to better methods in production, and to more 

 careful methods in the inspection and shipiiing 

 of his products. 



our practical men to the points of production 

 for the purpose of educating the manufacturer 

 Into uniform methods is one of the features by 

 which we have produced good results, and thus 

 reduced the number of claims by consignee which 

 causes a better feeling between buyer and seller. 

 The financial condition of this association, 

 you will see from the secretary's and treas- 

 urer's reports, is in splendid condition, and we 

 may congratulate ourselves on the condition 

 owing to the past dull season. I recommend 

 that a special committee be appointed to con- 

 sider the question of finance and a constitu- 

 tional amendment which has been offered. 



The Credit System, 



The credit system that has been organized 

 through the office of the secretary, I most 

 heartil.v commend as contributing facts of es- 

 sential importance to every member of this as- 

 sociation. I earnestly thank you for your co- 

 operation in assisting in the maintenance of 

 this feature of our work and recommend that 

 it be still further elaborated and extended so 

 that ever.v member may be posted on the char- 

 acter and financial standing of the ^ lumber- 

 Iniving public of this country and abroad. 



I also commend the information collated 

 tlirough the secretary's office by which the 

 general financial and industrial conditions in 

 the various consuming markets of the countr.v 

 may be gauged, which facilitates in estimating 

 prospective demand and value. I recommend 

 the enlargement *of the detail of this portion of 

 our work. , I 



The Statistical System. 



The logic of commerce points out that all 

 values depend on supply and demand. By 



capita of the wealth of this country was the 

 greatest ever known, came at a period of good 

 crops, at good prices and when financial re- 

 turns in all lines of legitimate business were 

 excellent. The countrv really was suffering 

 from a plethora of wealth rather than of pov- 

 erty. The buying public, however, became 

 frightened and over-cautious. Prospective 



building enterprises were suspended .and rail- 

 road pro,iects for a good year's business for 1904 

 did not fully materialize. The demand for lum- 

 ber gradually declined, and the diminution in 

 demand had a tendency to soften prices. This 

 condition continued until mid-summer, when the 

 business public awakened to the fact that it 

 had been frightened by a bugbear, that the ille- 

 gitimate enterprises of the trust promoters had 

 little to do with the lumber business, or any 

 other honest calling; and in the face of a presi- 

 dential campaign lumber values began to 

 strengthen and at the end of the year they 

 had shown such an accretion that the major por- 

 tion of the decline of the early part of the year 

 has been regained. 



Happily the supply of our products did not 

 show any decided excess at the opening of 

 1904. This association even anticipated the 

 prospective reductiop in the demand, and the 

 ouantity of stock was gauged accordingly, and 

 but few members had lumber at any time during 

 1904 in burdensome surplus. Climatic condi- 

 tions ahso greatly assisted In shrinking the pro- 

 duction of some items of stock. General busi- 

 ness conditions prevailing were fair during the 

 entire year, and in most cases prices advanced 

 materially during the last few months of 1904. 

 Those items that weakened the most during the 

 early part of the year advanced later to a point 



R. Jt CARRIER. 



S. C. LIEBERMAN. 



JOHN W. LOVE. 



5. That a special and universal mark be 

 given to each grade of lumber manufactured 

 by members of this association and that such 

 mark be plainly placed on each piece before it 

 goes upon the market, to the end that the mark 

 may become a recognized grade symbol, and thus 

 be known to every mantifacturer. inspector, 

 buyer and consumer of the hardwood products 

 of this association. By doing this, we will, in 

 my .indgment, command the confidence and re- 

 soect of every buyer and consumer of lumber 

 the world over. 



Before leaving the question of grading and In- 

 spection of lumber. I desire to call your at- 

 tention to the effort heretofore made to amalga- 

 mate and make one rule for the inspection of 

 hardwood lumber. It is not necessary ^or me 

 to announce that tlie National Hardwood Lum- 

 ber Association failed to approve the acts of 

 the joint committee which had been appointed 

 for this purpose. The meeting between the 

 joint committees referred to was done at great 

 expense and trouble by representative men from 

 both associations. I feel sure that this asso- 

 ciation stands ready and willing to reaffirm the 

 action of the Joint committee in regard to the 

 inspection as agreed ui>on and signed in Chicago. 



"VN'e are an established association. Vi'e have 

 established our grading rules and from our 

 secretary's report it will be seen that we did 

 more work last year than ever before. Our 

 plans and principles in handling this have been 

 effected. Our methods have been appreciated 

 by . our members and the consumers who have 

 studied the question thoroughly. The visits of 



means of the statistical department, inaugurated 

 by this association, at regular Intervals there 

 may be determined the quantity and grades 

 of all varieties of hardwood lumber in first 

 hands. This feature of our work is recognized 

 as being of inestimable value in determining 

 how logs shall be sawed, how prices shall be 

 based, and how the best financial results from 

 the manufactured product can be secured. I 

 wish to call .your particular attention to this 

 detail of the work of the association, and im- 

 press upon you the value of hearty co-operation 

 in its support to the minutest detail. By this 

 means, any overproduction of particular grades 

 or thicknesses can be promptly remedied: and 

 any shortage in any particular section caused 

 by lack of water or other climatic conditions 

 may be noted. 



In Retrospect. 



The history of the hardwood business during 

 the last year has been somewhat peculiar. The 

 early part of the year 1904. saw a falling off 

 of values on account of conditions entirely he- 

 .vond the control of lumbermen themselves. ' For 

 some time previous to this, a financial cra^e 

 was developed which manifested Itself in the 

 organization of trusts, by means of which the 

 public was affected to no Inconsiderable extent. 

 The effect of this method of finance was just 

 arriving at the opening of the year 1904. and 

 the wealth of the rich and the savings of the 

 middle class. In many instances, were entirely 

 lost. To no appreciable extent did the result 

 affect the finances of the legitimate Industrial 

 trade. The fiasco came at a time when the per 



where the entire decline was practically re- 

 gained. 



Had it not been for this organization, when 

 the time came that the consumption of lumber 

 was reduced, the timid would have become 

 frightened and we do not know to what extent 

 they would have lowered the prices in order to 

 force their lumber on the market, but we are 

 fully aware that the lowering of prices will not 

 increase the consumption, but decrease It In 

 our line. The association went to work to 

 advise its members of its true condition and 

 the cause of the falling off in the demands, 

 although many other commodities, notably, coal, 

 iron and coke (which are not organized) de- 

 creased in value one hundred per cent, and at 

 no time did the value of lumber decrease more 

 than ten per cent. 



There was one feature In last .year's hard- 

 wood trade that this association watched with 

 no little interest, and that was the experiments 

 made by numerous lumber con.sumers in the at- 

 tempt to substitute other and cheaper woods 

 for the woods they had heretofore used. Re- 

 peated attempts to accomplish this result were 

 made, but in a mtijority of cases the experi- 

 ments proved unsatisfactory, and the buyers 

 have now returned to the woods which they for- 

 merly employed. 



Future Outlook for Other Lines, 



The iron business is recognized as the barome- 

 ter of trade. The iron situation today Is good, 

 both In demand and In values obtained. The 

 steel mills are- all soldahead a long time, and 

 it is alleged that they are still accepting orders 



