HARDWOOD RECORD 



21 



laid on the question of signed statements of 

 assets and liabilities and tliese have been fol- 

 lowed lip where necessary, or where question- 

 able, by local investigation and corroboration, 

 thereby' eliminating', as far as possible, incorrect 

 or false statements. We have had considerable 

 trouble this year in ferreting out and exposing 

 several fraudulent concerns, and have co- 

 operated with other organizations, trade papers, 

 etc.. in these matters and stopped temporarily, 

 at least, many of these leeches on the trade. 



Through the co-operation of our members in 

 Pittsburg. Cleveland. Buffalo, Trmawanda and 

 other wholesale centers we have been able to 

 emphasize the importance of retailers carrying 

 sufficient insurance to protect their creditors in 

 case of serious fire. We ask your further sup- 

 port in this, and that you refuse credit when 

 this protection to you is not granted. Insur- 

 ance rates are reasonable, and one should not 

 expect credit unless he will carry insurance for 

 you as well as his own protection. 



The weekly pink sheet, upon which w^e ask 

 you to report th^ names of dealers who do not 

 settle in accordance with terms of sale, make 

 unjust deductions, ask for renewals or allow 

 paper to go to protest, or who are in any way 

 unfair, has been the means of furnishing sub- 

 scribers with advance information of impor- 

 tance, and continues to be a successful plan of 

 exchanging experience. A very large part ot 

 the information on the pink sheets are dis- 

 tributed through lists A and B. 



The information which voluntarily comes 

 from our members continues to be considered the 

 most valuable part of the reports issued by the 

 Bureau ot Information. When a wholesale lum- 

 berman wants information on any particular 

 dealer, there are two things he wants to know: 

 f.rst. the probable financial responsibility and 

 second, whether or not the customer has a repu- 

 tation of being fair in his dealings, and makes 

 his settlements in accordance with terms of 

 sale. The bureau has never digressed from its 

 original plan, and its strength still lies in the 

 fact that the combined experience of members, 

 as reported through us. is a good guide as to 

 probable future treatment. Therefore, while our 

 members are relied upon almost wholely for ex- 

 perience and history, we continue to use all pos- 

 sible channels to get at all the facts. We still 

 claim that we have saved our subscribers much 

 money by keeping them from selling to unjust 

 dealers a'nd chronic kickers, as from bad debts. 



About one-half of our subscribers know the 

 Importance of keeping on tile an up-to-date list 

 of customers, and I wish to repeat that these 

 lists are kept strictly confidential, and are so 

 recorded as to furnish immediately the names 

 of any one interested in a weak or failed con- 

 cern. Information comes to the bureau at 

 times which should be promptly forwarded to 

 every creditor interested, and often, after a 

 failure occurs, it is found that some had not 

 received advance information because we had no, 

 knowledge that they were ever interested ; 

 whereas, if this suggestion had been followed, 

 proper methods could have been taken to secure 

 or save the account. Subscribers should not 

 hesitate to file these lists, and to have them 

 corrected monthly. 



These are a few of the systems used by the 

 Bureau of Information in keeping its reports 

 up to date and the subscribers fully informed. 

 In addition to the voluntary information which 

 is supplied in this way. our reports are revised 

 as often as circumstances demand, and the new 

 complete reports, or additionals. are sent to 

 those who are interested. 



Larger and more commodious offices have been 

 secured and the working force increased, in 

 order to take care of all the work properly. A 

 perusal ot the figures reported by the chair- 

 man of the board of managers will give you an 

 idea of the work required to keep our reports 

 alive and up to date. The change in the style 

 of compilation and the general construction of 

 reports, as adopted last year, has met with gen- 

 eral approval, so much so that it is being copied 

 by credit departments and other mercantile or- 

 ganizations. 



The resolution adopted by your board of trus- 

 tees, wherebv the collection or legal depart- 

 ment is placed under the direct supervision of 

 the board of managers of the Bureau of Infor- 

 mation, seems to have met with the approval 

 of the members, and a resolution will be pre- 

 sented at this meeting to amend the by-laws, 

 thus ratifying their action. Since the change 

 became effective on November 1. seventy claims 

 aggregating .$23.72n have been sent in for col- 

 lection, of which $9,637.03 have been settled to 

 date. It is hoped that you will support this 

 collection department by sending .your claim to 

 us, rather than to outside unknown attorneys. 

 We know- by experience that we can give you 

 better service in handling your past dues and 

 disputed accounts than you can get through any 

 other source. We have a complete system by 

 which all claims are promptly and carefully 

 handled, and by which we believe it is impos- 

 sible for the smallest detail to be overlooked. 

 This assures to our members immediate and In- 

 telligent handling of the claims intrusted to our 

 care, and the collection of every possible dollar ; 



or. in other words, to get as much money for 

 our clients as promptly as is possible and at 

 the least expense. It is conceded that our col- 

 lection charges are low. and when it is con- 

 sidered that our out-of-town attorneys are 

 bonded, thus assuring prompt returns through 

 reputable and responsible men. and the reason- 

 ableness ot the bureau's charges, should be ap- 

 preciated and the plan supported. We are 

 pleased to find through the bureau that the 

 prestige of the association counts for a good 

 deal in collecting claims. Delinquent debtors 

 appreciate the standing of the bureau, and its 

 plan of informing the trade of unfair practices, 

 either as to kicks or the stealing of time, and 

 experience has proved that greater effort is 

 made to pay claims presented through tile as- 

 sociation than when sent to the ordinary attor- 

 ney. Therefore, with those who have any de- 

 sire to be well rated, it has the effect of secur- 

 ing collections simply on demand, and at a less 

 expense to the members. 



We believe you owe it to the legal department 

 that it be allowed to collect your claims for 

 you. It enables us to get at tlie reasonableness 

 of the claim, puts us in a position to dictata re- 

 forms, or suggest changes in methods, as well 

 as to estimate financial responsibility. 



The Bureau ot Information is under the im- 

 mediate charge of the board of managers, who 

 are in constant touch with what is being done, 

 and give all important questions their personal 

 consideration, and during the year just closed 

 have aided very materially in making it the 

 most reliable and efficient reporting agency in 

 the lumber traae : and those who have" not 



W. W. KNIGHT, INDIANAPOLIS, TRUSTEE. 



availed themselves of its privileges are urged 

 to give full co-operation and support. One hun- 

 dred new subscribers could be accommodated 

 with very little added expense, while at the same 

 time we would cover a wider field, and with 

 the added impetus, could become still more effi- 

 cient in the conduct of this department of as- 

 sociation work. 



Tou will pardon this lengthy report. I am 

 sure, but I want to impress upon you the im- 

 portance of this department. Argument will 

 not help it. and long reports will not help, 

 nevertheless. I am enthusiastic in my support 

 of its value to a wholesaler, as I know it from 

 the inside. Why those who can profit by it will 

 refuse its help I am at a loss to explain. 



Report of Fire Insurance Committee. 



Geo. SI. Stevens. .Ir.. chairman of the fire 

 insurance committee, reported that the past year 

 had been a fairly successful one for the lumber 

 fire insurance organizations, although the ]o.ss 

 percentage was considerably In excess of former 

 years. The three companies fathered by the 

 association ha%'e shown rapid progress. The re- 

 port showed a decided gain in the amount of 

 business written, as well as in financial re- 

 sources, and still the committee alleged that the 

 results for the year did not denote that the 

 trade at large has awakened to a full apprecia- 

 tion of the great benefits which these companies 

 are ofljering. 



The report showed that the formation of lum- 

 ber mutual fire insurance companies was com- 



menced in 1895 with the organization of the 

 Lumber Mutual Fire Insurance Company of 

 Boston, the Lumber Mutual Fire Insurance Com- 

 pany of Mansfield, 0., and the Pennsylvania 

 Lumbermen's Mutual Fire Insurance Company. 

 .\ll these companies have shown steady growth 

 and bear every evidence of being prosperous. 

 While the members ot the National Wholesale 

 Lumber Dealers" Association have been promi- 

 nent in all these companies, the limitation of 

 risks was such that it was found necessary in 

 1900 to organize the Lumber Underwriters and 

 .Mutual Lloyds and through this system of oper- 

 ation was enabled to assume increased lines ot 

 insurance at a saving in premiums to policy- 

 holders. The success of this organization gave 

 life to the Toledo Fire & Marine Insurance 

 Company of Sandusky. O., and afterward to the 

 Lumber Underwriters of New York, 



Not being satisfied tiiat the best results had 

 been attained, the same gentlemen interested in 

 the three last named companies conceived a plan 

 for the organization of a strictly lumbermen's 

 stock fire insurance company, exactly on a par 

 with the regular tariff stock companies, but 

 which should operate entirely Independently, to 

 be devoted to the insuring of lumber and wood- 

 working risks exclusively, at rates commensurate 

 with the hazard involved. Thus did the Lum- 

 ber Insurance Company of New York enter the 

 field on Jan. 1. 1904. with a cash capital and 

 surplus of .$"90,000. It is saving its policy- 

 holders from 15 to 20 per cent and takes a max- 

 imum rate of $15,000 insurance. 



The morning session was concluded by an 

 address by Justin Peters of Philadelphia on 

 "Mutual Insurance." to which place is given 

 elsewhere : and one by R. H. McKelvey ot New 

 York on "Stock Company Insurance.'" 



Afternoon Session, March 1. 



William <;. Frost, chairman of the committee 

 on arbitration, reported briefly that during the 

 year 190.". five cases had been considered, three 

 ot which had been adjudicated to the evident 

 .sat'sfaction ot the contending parties. Two 

 cases were still before the committee and it 

 was expected that an early decision would be 

 reached. Numerous other eases were success- 

 fully settled by Slecretary Perry, rendering un- 

 necessary that they be submitted to the com- 

 mittee. 

 Hard'wood Inspection Committee Report. 



M. M. Wall, chairman of the hardwood in- 

 spection committee, reported briefly that all 

 members of the committee with whom he had 

 talked or corresponded expressed themselves as 

 pleased with the rules of the National Hard- 

 wood Lumber Association, which had been 

 adopted by this association, and recommended 

 that the said rules be continued. The report 

 concluded that the two associations were work- 

 ing in perfect harmony on the inspection of 

 hardwood lumber at the present time. 



Report of Committee on Legislation. 



Charles M. Betts, chairman of the committee 

 on legislation, reported practically that but lit- 

 tle interest had been taken by members of the 

 association in influencing legislation, although 

 the committee advocated an appeal to the na- 

 tional political conventions, stating that the 

 adoption in their platforms of such planks as 

 "anti-injunction" and "eight hour" would be 

 inimical to the business interests of the United 

 States. In response to several circular letters 

 from E. P. Bacon, chairman ot the Inter-State 

 Commerce Law Convention R. W. Higbie was ap- 

 pointed as delesrate to appear before the con- 

 vention to reprcseut lumber interests. 



Report on RaUroad and Transportation. 



R. W. Higbie. chairman of the railroad and 

 transportation committee, made an elaborate re- 

 port on the subject of the establishment of the 

 Transportation Bureau authorized by the Na- 

 tional WTiolesale Lumber Dealers' Associati«« 

 at its meeting in Washington a year ago. He 

 reported that on Sept. 19, after a careful 

 analysis, this bureau was established under the 



