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HARDWOOD RECORD 



producer is thoroughly acquainteij with the total quantity of stocks 

 on hand by kind, grade and thickness, of every variety of lumber 

 produced in the state, — every item that is in over-supply and every 

 item that is in short su|iply. This information also generally 

 reaches the consumers of lumber, and with this knowledge ]>os- 

 sessed by both seller and buyer, it is manifest that prii-i-s are 

 regulated by supjily and demand. 



Beyond question Michigan hardwood manufacturers have in 

 their association one of the best and most valuable state organiza- 

 tions tTiat has ever been organized in lumber history. They don 't 

 fool themselves for a minute; neither do they fool the buyer. 

 When supply and demand are unknown factors, it is a pretty easj' 

 thing for a wise buyer to succeed in purchasing short and very 

 desirable items of stock from a good many i)eople at a price very 

 much lower than the paucity of stock and the demand uarraiit, 

 but when both seller and buver are thoroughly acquainteil with the 

 situation, the buyer has to pay about what lumber is worth under 

 prevailing conditions. 



Wisconsin manufacturers also are allied in a similar association, 

 lint operators of this state have not yet succeeded in getting sta- 

 tistics covering the entire pro- 

 duction of the territory into 

 such an accurate shape as have 

 the Michigan men. I'ndeniably 

 Wisconsin operators are get- 

 ting to this point, but the aver- 

 age manufacturer of that state 

 is not nearly as well informed 

 about supply and demand as is 

 the Michigan man. 



It seems to Hardwood Rec- 

 ord that these two hardwooil 

 lumber associations should be 

 taken as models by the operat 

 ors of other hardwood produc- 

 ing states, and that at least a 

 dozen more state organizations, 

 with their work map|)ed out on 

 the same lines, could be under- 

 taken to the manifest profit of 

 everyone concerned. Detailed 

 statistical work that can be ac- 

 complished in a particular state 

 is practically impossible of at- 

 tainment by a national or- 

 ganization, but if every hard- 

 wood producing state had a local organization to collect, collate 

 and distribute lumber statistics, it would be a very easy matter 

 for the national organizations to put this information into a com- 

 prehensive whole to the advantage of all. 



It is held in many quarters that there are too many Ininlicr asso 

 ciations. ami Hardwood Kecord will concede that there are too 

 many that are failing to obtain specific and valuable results, but 

 there is no gainsaying the fact that well organized state organiza- 

 tions, working in harmony with national ones, can accomplish 

 results unattainable by national associations. 



Who Will Survive 



liAKIiwoiiD KE(<)UU has Held tor years that the legitimate 

 lumVter jobber was an absolute essential to the highest efficiency 

 and best attainment in lumber sale and ilistribution, but for some 

 time there has been a growing sentiment on the |)art of a consider- 

 able element of wholesale lumber consumers that it was wisdom 

 to make purchases direct from manufacturers — to "get nearer the 

 stump," as they express it, but really to attempt to eliminate tln^ 

 profit that ensues by reason of lumber going through second hands. 



(Jne comparatively minor manufacturer of hardwood lumber, in 

 analyzing this situation, writes that he has ten wholesale consum- 

 ing customers today where ho had one five years ago. 



This editorial is intended by no means to be argumentative, but 



UNSOLICITED TESTIMONIAL 



Jameg B. Hacep ^ Co. 



Simbpr iFartorH 



Chicago. Mar. 16. 1911. 

 Gentlemen: — We consider HARDWOOD RECORD one 

 of the most valuable trade journals, particularly in regard 

 to the special field it covers, both to the advertiser and 

 the subscriber. We cannot offer better proof of our 

 appreciation of its advertising value than by stating 

 that we have for years continuously carried our adver- 

 tisement in this journal. 



JAMES D. LACEY & CO. 



sinijily a plain statement of facts. Hence it may be recited that 

 there e-\ist many legitimate hardwood .jobbers in the trade who 

 will survive and make money, regardless of any sentiment that 

 may ol>tain among wholesale consumers that they can better them 

 selves by purchasing direct from the manufacturer. 



On the contrary, it is equally patent that the .iobbing element 

 which depends for profit l)y having recourse to salting grades and 

 raising tallies will eventually be driven out of the business. But 

 irregidar ))ractices in lumber transactions are by no means con- 

 fined to lumber jobbers. There are many manufacturers who are 

 resorting to just as many tricks of the trade as the most irregular 

 of the Jobbing element. There are many manufacturers who are 

 just as proue to ship inferior grades as there are jobbers. Busi- 

 ness integrity in the lumber business is by no means confined to 

 any particular element of the traile. Moreover, it is equally patent 

 that the wholesale consuming trade of the country is mal\ing a 

 strong effort to secure the grade it buys, and get a thousand feet 

 for ten hundred, and its trade is being restricted to the element 

 of manufacturers anil jobbers who will fulfill the i)roniise implied 

 in its sales contracts. 



The larger jiercentage of 

 hardwood lumber is still made 

 at small mills, and is made by 

 lic(i|ili' who produce quantities 

 varying from two to ten mil- 

 lion, or less, a year. Manufac- 

 turers producing a million feet 

 or more of lumber a month can 

 |)erha)is secure higher sales ef- 

 ficiency and better profits by 

 organizing and maintaining 

 sales departments, and go di- 

 rect to the wholesale consumer 

 with their product. At the 

 same time it costs a good deal 

 more money to market lumber 

 in this way than it does to sell 

 it in bulk to a jobber, the crux 

 of whose business existence lies 

 in the fact that he has money 

 with which to do business, and 

 ill the second fact, that he has- 

 a large acquaintance and an es- 

 tablisheil trade among con- 

 sumers. However, there is 

 scaj-cely a small ]iroducer im 

 the country who would not be better oft' to market his lumber in 

 Inilk to the legitimate jobber than by attempting to sell it in fine 

 manipulation and in the varied assortment required by the renianu- 

 fact\irer. Moreover, it is the multitude of small ]iroilucers of hini- 

 lii'r who make it possible for the legitimate jobber to make pur- 

 chases aiul redistribute stock to the wholesale consumer at a 

 profit to himself, and at a minimum cost to this class of ]iroducers. 

 There should be no particular variation in the price at which a 

 large lumber jiroducer can afford to sell to the large consumer, 

 and, the price at which the legitimate jobber cairsell to the same 

 custoiiu>r, secure a fair remuneration for himself, and give the 

 snuill producer as nundi money for his lumber as he ciinld by .iin 

 ])0Ssibility obtain in attempting direit sales. 



Surely the trend of the times points to the extincdion of thff 

 salted-and-shorttally hardwood lumber manipulator, whether he be 

 manufacturer or jobber. Buyers are lu'coming wise; jirice buyers- 

 are becoming fewer; people who utilize hardwood lumber are- 

 learning that it is a stainlard coininodity that commanils essen- 

 tially a standard price, and the lower the price thi' poorer and 

 less desirable i-< ilir luiiil er tlu'x s.-c-nrc 



Important Interstate Commerce Decision 



The Interstate Commcne ( Onnnissioii li.as ruled that in all cases 

 where a carri<'r by its tariff h.is estaMishe.l partii-iilar inininuim 



