32 



HARDWOOD RECORD 



.Tiane 25. 1922 



eral Department of Commerce in the public Interest, tliat we attempt 

 several new lines of work seemingly called for by the present business and 

 economic situation, despite the fact that such excursions Into new fields 

 may not have seemed wise heretofore. I will take occasion, therefore, to 

 mention four or five of these projects. 



Statistical Information 



I suggest that we consider the establishment of a statistical department 

 for our own use and for the benefit of the public through the cooperation 

 of the Department of Commerce, confining our work, of course, within the 

 limits of the law. This would not be entirely a new undertaking, because 

 some months ago at the request of the Department of Commerce, we under- 

 took for a brief period to supply statistical information for the use of that 

 department. It is not necessary to urge that we are in a preeminently 

 favorable position to collect trade data, relating not only to production 

 but to stocks on hand at various points, because of the wide geographical 

 distribution of our membership, covering about thirty-five states and 

 including between 1,400 and 1,500 members We have every reason to 

 infer that the Secretary of Commerce would look with favor upon the 

 efforts of our association to be of service in this particular field. 



Another line of endeavor, in which we would be following a recent sug- 

 gestion of Secretary Hoover, is through the special study of hardwood 

 utilization. Our recent cooperation with the forestry department for the 

 more extensive use of hardwood dimension in order to provide cheaper 

 material for the consumer and to save freight on waste material, already 

 gives us an introduction to such work. It may be desirable for us, how- 

 ever, to set up a department of our association for such work, and, if 

 deemed advisable, to supplement it by giving proper publicity to the merits 

 of various hardwood species and to the economy of their use, in order to 

 meet the threatened inroad of other materials offered in competition. 

 There is no doubt that the establishment of a bureau of hardwood research 

 might call for special income to be provided liy those members who would 

 receive the more direct benefit from its results. 



The recent lumber conference at Washington disclosed some desire on 

 behalf of the consumer which may be construed as calling for a method by 

 which oflicial association inspection can be made available to buyers 

 without regard to their association membership. Such a provision relat- 

 ing to hardwood transactions, if the guarantee of this association were 

 thereby extended to non-members, would, of course, call for some means 

 by which the cost of this insurance, now included In dues and fees as 

 regards membership transactions, would be paid in the case of outside 

 transactions by those who tjeneflted hy such guarantees. 

 Foreign Service 



Another extension of service, and one also suggested by Secretary 

 Hoover, is a means for the protection of purchasers in foreign countries 

 against inferior grades by giving such foreign purchasers guarantees and 

 facilities for reinspection similar to those available to domestic customers. 



Undoubtedly the several suggestions offered will require the most care- 

 ful consideration, if you deem it wise to give them a place in our future 

 program of activity. You may think it well, therefore, to refer them to 

 a special committee or committees, or to your executive committee or 

 board of managers for study and recommendation. 

 Governmental Control 



This report would certainly neglect one of the most difficult problems of 

 business if it made no allusion to the widespread demand at present for 

 governmental control of industry. It is quite useless to debate just now 

 either the occasion for this popular sentiment, or the manner or extent 

 of the official response it receives from the Federal authorities, or the 

 measure and character of the control constituting this new function of 

 government. It is certainly *'a condition and not a theory" that confronts 

 both government and business. We must no doubt be content with the 

 view that it is one of those large movements of the times diflScult to under- 

 stand, but necessarily to be tolerated with patience and with a consider- 

 able measure of faith as to the outcome. 



Our distinguished and honored president of these United States and his 

 chief supporters are beyond doubt guided by the slogan — "Less government 

 in business and more business in government." There is every evidence 

 that responsible officials are attempting to help business, that their motives 

 are beyond question, and tliat they are at the utmost pains to discover 

 and employ measures in this regard that shall be sound and constructive 

 as well as searching and effective. It is, of course, unavoidable that in 

 the application of this principle, through the admitted human limitations 

 of those who represent business as well as of those who represent the 

 government, it is difficult to avoid apparent or real injustice to some of 

 those upon whom the results fall. Confronted as we are with the necessi- 

 ties of a new situation, we can only meet in good spirit the challenge 

 which comes to us as intelligent business men and patriotic citizens, con- 

 fident in the safe destiny of all our common interests. We have one 

 supreme duty, hnwever, in this whole conneetion, and that is to see that 

 aocial and industrial justice is not perverted to the selfish benefit of any 

 class, n>hethfr it be a social class or a favored group in- any branch of 

 business. (Author's italics.) 



Association Work 



As many of you gentlemen are aware, I have made use of several pre- 

 vious opportunities to emphasize what may be called the practical ethical 

 view of trade association work. It has always seemed to me a rather 



common error to lay too much stress upon the joining of hands and 

 resources with a controlling purpose to assert common rights, without 

 giving equivalent attention to the gain that accrues to character, as well 

 as to the bank account, through recognition of the complementary rights 

 of those with whom we have our dealings. There is a wide difference 

 between selfishness and enlightened self-interest. To recognize enlightened 

 self-interest as our individual or association motive requires no apology or 

 defense, and I am sure in the long run has the very practical merit of 

 assuring us the most profit both material and otherwise. If we get 

 together exclusively as producers, or exclusively as distributors, for 

 instance, and carefully nurse and proclaim an imaginary monopoly of 

 either of these little fields, we only succeed in arousing immediately the 

 hostility of our neighbors in adjoining fields, who should be cultivated as 

 our friends. Not only so, but this sort of inbreeding process soon accentu- 

 ates the peculiarities of the type, and the assertion and evidence of exclu- 

 sive and narrow self-interest become more and more emphatic and objec- 

 tionable. For similar reason, it always has been, and now is, my conviction 

 that it is inadvisable for hardwood producers to get together by them- 

 selves )"/ it be chiefiy for the purpose of proclaiming, for ewample, that 

 "lumber grades and measurement must 6e" thus and so, and that "if the 

 buyer does not like our inspection and make settlement therefor according 

 to our particular rules drawn up to suit our ideas of convenience, why then 

 he simply can't have any of our lumber — and that is all there is to it." 

 (Author's italics.) If one cares to develop this line of argument to its per- 

 fectly logical conclusion, it results in nothing but absurdity and the 

 eventual failure of an organization built upon this kind of principle. The 

 curious thing is. that if you put this proposition up to almost any indi- 

 vidual .vou know, he will be quite serious, if not sincere, in his denial that 

 he transacts business In so narrow a way ; and yet the same type of indi- 

 vidual seems to feel that by uniting with others under such a program, 

 each member can hide behind the crowd and the selfish policy can be put 

 across by mass action. This is simply a closed shop idea, and being 

 economically and practically unsound, promises only constant conflict and 

 eventual failure in this American country of ours. 



It rather pleases me to offer this theory again, and especially to the 

 members of the National Hardwood Lumber Association, for in this com- 

 pany I believe it receives a sympathetic hearing. Our association has 

 always tried honestly to avoid this narrow view, and, for instance, has 

 recognized the function of the distributor as entitled to the same serious 

 consideration as the rights of the producer. As to the contrary type, if 

 all the truth were known, the intelligent members of an exclusive manu- 

 facturing group thoroughly understand that distribution is as fundamental 

 as production : that the function of distribution cannot be dispensed with; 

 but there is some ground for apprehension at least, that some of them 

 iMitertain the hope, perhaps not without reason, that through propaganda 

 addressed to the public ear. or that through invoking governmental aid, 

 always so solicitous of the rights of the people, the producer may himself 

 annex and assimilate the job of distributing, and thus restrict competition 

 iiuil eventually cause the consumer to pay more than he now does, not only 

 for the product itself, but in the cost of getting it into his hands. I 

 Iieliove. therefore, that our association is fundamentally right not only in 

 welcoming wholesalers as well as producers In good standing to its mem- 

 bership, but in taking into genuine account the very Important interest of 

 ttie consumers of hardwood lumber. 



At the same time let me repeat that our Inspection rules and service 

 regulations give proper and most welcome recognition to the primary and 

 especial rights of the sawmill man who starts the product on its way. The 

 same principle Is observed absolutely in the general management of the 

 association, for not only does our Inspection rules committee include a 

 majority of hardwood manufacturers, but your board of managers and 

 executive committee show similar relative representation. The malicious 

 statements to the contrary of a very few people who enjoy the harmless 

 sport of trying to Injure our work are without foundation in fact. 



Washington Conference 



I'nusual interest has been aroused as a result of the lumber conference 

 held in Washington iluring the week beginning May 22, 1922, under the 

 auspices of the National Lumber Manufacturers' Association. This meet- 

 ing was held with the approval of Secretary Hoover of the Department 

 of Commerce for the purpose, as expressed, of encouraging standardization 

 within the industry, this to comprise a simplification of grade names, a 

 means of gimrantee to the consumer of the quantity and quality of lumber 

 bought, and a uniformity in lumber sizes. While this meeting was intended 

 by its sponsors to Include lumber manufacturers and consumers only, this 

 association was invited to send delegates, no doubt because of the long 

 step in advance we had already taken in the matter of standardization 

 as affecting hardwoods. You have already been made familiar with the 

 pnrt of our association was permitted to take In these proceedings by a 

 rt'I'i.rt addressed by the president of the association to the membership 

 unilci- date of June 10 last. 



Report of Secretary- Treasurer 



Mr. President and Gentlemen : It is once more my duty and privilege 

 to address this memi)ership upon this, the occasion of the twenty-fifth 

 annual meeting and of the conclusion of the seventeenth year of my service 

 witli the National Hardwood Lumber Association. A degree of peculiar 

 significance and Importance is attached to this gathering, because it is In 

 {Continued on page 34) 



