24 



HARDWOOD RECORD 



May 10, 1922 



{tUjntinitcd from iiai/c 2U) 

 of Edward Hines it was decided to employ such an expert for this 

 purpose. 



In the discussion of low grade market questions, other means of 

 increasing the sale of low grade were suggested, one member 

 reporting that one lumberman in the North is marketing about 

 30n,000 to 400,000 feet a year of 1x4 and 1x6 dressed and matched 

 low grade hardwood for sheathing, it being pointed out that this 

 field alone is susceptible to considerable expansion. 



In conclusion of his report -and of the morning session, Mr. 

 McCullough discussed plans for advancing the market for maple 

 and birch, reporting his committee had decided to continue on a 

 somewhat reduced scale its former general advertising of upper 

 grade birch, but that now the serious problem is to find some logical 

 way of profitably advertising maple. In this connection a meeting 

 will shortly be held with a representative committee of the Mich- 

 igan Hardwood Manufacturers' Association, which will join the 

 Wisconsin association in its maple advertising effort. 



Following Mr. McCullough 's talk, the members adjourned for 

 luncheon, which was tendered by the association. 



Letlier from Osborn Read 



The afternoon session came to order at 2:30 p. m. The first report 

 was that of the secretary, in which he read a letter to the associa- 

 tion from A. L. Osborn, of the Medford Lumber Co., of Oshkosh. 

 Mr. Osborn, as chairman of the forestry committee, advocates the 

 donation by members of the association of a small sum for the 

 purpose of retaining permanently the services of O. M. Butler, at 

 present forestry editor of the American Forestry Magazine, now- 

 employed for only a single year. Cards addressed to Mr. Osborn 

 were distributed for use by the members in informing him of dona- 

 tions they wished to make. The letter impresses upon the mem- 

 bers the necessit}' of having a man at the head of the forestry 

 publications who is himself a practical forester. Mr. Butler, be- 

 sides having four years experience at the Forest Products Labo- 

 ratory at Madison, is well recommended by the chief forester of 

 the United States Forest Service. 



A report was made on the transportation situation, in which it 

 was stated that immediate, definite prospects for the securing of 

 lower rates for lumber and logs are not in sight, but that indica- 

 tions are that such reductions will be made within a short time. 

 Committees of the Northern Hemlock and Hardwood Manufac- 

 turers met with a committee from the Northern Pine Association, 

 and committees from the various railroads doing the carrying for 

 the lumber companies, on April 27. No result came from fhe con- 

 ference, according to the report, other than the inference from the 

 attitude of the railroad committees that rate reductions would be 

 favorable from their point of view, but that no action could be 

 taken without the consent and approv;il of the Interstate Com- 

 merce Commission. So immediately after the meeting, the joint 

 committee filed a protest with the Interstate Commerce Commission 

 asking for an inquiry into the situation and a reduction in rates. 

 Nothing will be done until the decision in the general case now 

 being threshed out in Washington is reached. It was stated at the 

 meeting that should the decision of the general case on rates not 

 affect the lumber industry, that industry, especially as represented 

 in Wisconsin and Upper Michigan, will fight the matter out along 

 its own line. Considerable discussion followed the reading of the 

 report, in which the attitude of the lumbermen present was clearly 

 shown. It was pointed out by various speakers, that the rate 

 re<luction in the South amounts to discrimination if it is not ex- 

 tended to the Middle West. It was suggested that members take 

 up the matter from their personal positions, and write to authori- 

 ties and the various commissions stating their attitude. It was 

 decided to ask the members of the association to do this, as the 

 feeling prevailed that such a course would result in quicker and 

 more certain action than would mere dependence upon the commit- 

 tee appointed to handle the matter. The consensus of opinion of 

 members speaking seemed to be that rate reductions are in order 

 at this time, and should be granted at once. 



Defends Trade Associations 

 R. B. Goodman, of the Goodman Lumber Co., Goodman, Wis., 

 gave the report on economies, which dealt largely with the atti- 

 tude of the public, and of government officials toward the indus- 

 trial association. Mr. Goodman explained in detail, the purpose for 

 which associations are organized and stated that they were not 

 njcant to kill competition but to create intelligent competition. 

 Trade associations, according to Mr. Goodman, make for the uplift 

 of an industry in which they are organized, because they inevitably 

 lead to better methods of production and marketing, and lead to 

 greater efficiency in the conduct of factories and retailing organ- 

 izations. The attitude of the government, as expressed through the 

 press, and through individuals at Washington, is rapidly becoming 

 one of misunderstanding of trade associations. It is claimed that 

 there are those who hold that an association is a combination in 

 restraint of trade. The report of Mr. Goodman tended to dis- 

 prove this theory, and conclusively showed that such is not the 

 case. It was stated on behalf of the lumbermen that governmental 

 interference in trade activities of the Northern Hemlock and 

 Hardwood Association is not desired, since it is the belief of the 

 association that those in control of its activities can handle its 

 affairs. In pursuance of this belief, and in an attempt to let the 

 public know what the association's reasons for existence are, the 

 the following resolutions were drawn up: 



Declaration of Principles of Northern Hemlock &. Hardwood 

 Manufacturers' Association 



WHEREAS, doubt and confii.sion e.xist in the public mind as to the 

 character, activities and purposes of trade associations, be it 



RESOLVED, the following declaration of principles be made: 



1 — This association is composed of competing manufacturers of 

 hardwood and hemlock lumber in Wisconsin and Upper Michigan, and 

 extends the privilege of membership to all manufacturers in this terri- 

 tory who produce at least 50 per cent of the amount of lumber they 

 sell. 



2 — The general purposes of this association are collectively to pro- 

 mote the interest of the large number of small operators in efficient 

 methods of logging and manufacturing forest products, advocating 

 correct principles of cost and income accounting, forest management, 

 promotion of proper industrial relations with the employees of the 

 industry through sanitary working conditions, continuous employment, 

 and safety appliances, and efficiency in production through elimination 

 of waste — 



3 — And generally to promote the interest of the members in the mar- 

 keting of their products through the study of traffic problems and 

 proper adjustment of lumber freight rates througli technical research 

 as to the quaiities, preservation and efficient use of lumber and other 

 forest products of its members and through advertising and trade 

 extension to enable these products to compete with other species 

 of lumber in the central markets. 



4 — Tliis association, througli its affiliations with other lumber manu- 

 facturing associations, maintains standard rules of inspection for the 

 gi'ading and measuring of lumber and other forest products, so that 

 they may be sold by each member on a fair competitive basis witti 

 every otiier manufacturer of lumber. 



5 — This association collects and disseminates statistics as to the 

 lumber produced and in the hands of its members, and the amount 

 shipped and sold by manufacturers in this territory and in all other 

 principal producing regions of the United States to the end that the 

 indi\'idual member of this association may have a knowledge of con- 

 ditions approximately equal to that possessed by the wholesale buyer 

 of his lumber. 



G — In view of the injunction in the Hardwood Case, this association 

 has discontinued the reporting and discussing prices for wliich specific 

 items of lumber or other forest products are sold to the wholesaler 

 and consuming manufacturer, as an association activity. It is be- 

 liewd, however, that all competing manufacturers of lumber in all 

 regions do continually discuss these topics of vital interest to their 

 business as do the buyers of these products, and we recommend that 

 it is in the public interest in promoting intelligent competition and 

 eliminating destructive competition that this association collect and 

 publish accurate market sales statistics under some plan not in con- 

 flict with the opinion of the Supreme Court. 



7 — As an association we advocate a government of law and not a 

 government of man. We have confidence in the wisdom of Congress 

 to enact just laws defining the economic rights of the public and the 

 individual citizen. We have confidence in the wisdom of the courts 

 impartially to interpret such laws so that the rights of the individual 

 and the public may be safeguarded, and we liave confidence in the 



