HARDWOOD RECORD 



27 



Fall Meeting Michigan HardWood dissociation 



I'rpsiili'iit C. A. Bigelou of lUe Michigan 

 Hardwood Manufacturers' Association opened 

 tlie regular fall session of that body at 

 the Hotel Pontchartrain, Detroit, at ten 

 o'clock Wednesday, October 19, witli a brief 

 speech in wliich he commended the members 

 present upon their hearty support of the re- 

 cent recommendations of the market condi- 

 tions committee. 



The first business on the calendar was the 

 roll call, which showed an unusually full at- 

 tendance, there being one or more represen- 

 tatives from thirty-four firms lielouging to the 

 association. Following the roll call Secretary 

 J. C. Kno.\ read the minutes of the last meet- 

 ing and followed with his own report: 



Secretary's Eeport 



It Is not thf iutcntinu ol; the secretary to 

 burden you with a lengthy report today, l)ut 

 just to touch upon a few important fads. 



We wish to compliment you on the prompt- 

 ness yovir reports luive roarliefl us. \V(; mailed 

 stock report blanlis Sopteraber lit, and tlie niorn- 

 InK of Octoljer 14 began printius. We l>elieve a 

 sircater proportion of our members are reporting 

 and keeping in close touch witti our worli than 

 those of any other similar organization. 



We consider the fall meeting of this associa- 

 tion to be one of importance, for as manufac- 

 turers you want to know present conditions be- 

 fore making contracts for the coming winter's 

 cut. We liave a very complete stock report to 

 present to you at this time. On account of 

 closing so e.iriy in order to have it ready for this 

 meeting we were compelled to print with one 

 less member reporting on hardwoods, but with 

 two more hemlock reports in ciunparisou with 

 a year ago. One additional hardwood report 

 was received after we had gone to press but too 

 late to have the figures included in the report. 

 However, this would not have made any ma- 

 terial dilTerence in the total figures. 



.Tuly 1 we prepared report of hardwood stocks 

 sold ahead of the saw, amounting to twenty- 

 nine and one-half million feet, with several large 

 manufacturers reporting they had sold all they 

 would manufacture up to January 1, 1011. This 

 time we obtained similar data, but did not re- 

 ceive as many reports and only eleven million 

 feet were reported sold ahead of the saw, con- 

 sequently we did not print the figures. First, 

 on accoiint of insuIEcient time ; second, because 

 of incompleteness. We can jjrint this report 

 after our return to Cadillac if you so desire. Is 

 it your pleasure that we continue to collect this 

 information, having it ready at the same time 

 with other reports? 



Our treasurer's report will show sufficient 

 funds to carry us through inio. but this is the 

 meeting at which it is customary to provide for 

 the coming year's finances, and the directors 

 will make recommendations to you today along 

 this line. 



This association has been invited to join with 

 the Wisconsin and Minnesota Forestry Associa- 

 tions and lumbermen with a view of promul- 

 gating and guiding uniform forestry legislation 

 that will not be detrimental to the lumber in- 

 terest. Chairman Hanson nt the Forestry Com- 

 mittee will undoubtedly make some recommenda- 

 tion. 



Most of you are interested in the proposed 

 advance in fnught rates, and Chairman Ballon 

 of the Kailroad Committee has something to 

 "ffer along this line. 



We have been asked by some of our members 

 to ascertain the amount of stocks held by the 

 wholesalers, retailers and manufacturing con- 

 sumers. .-\s near as our office can ascertain the 

 facts are that unusually small stocks are held 

 by these parties. You gentletnen present per- 

 haps can throw some light on this sub.iect. 



Chairtnan Odell of the Market Conditions 

 Committee has something to offer you along 

 the line of present conditions, which wc* are cer- 

 tain will be interesting, and you will realize 

 (hat the information given has been tlioughtfully 

 :ind carefully prepared. 



Chairtnan Ballon of the Special Terms of Sale 

 'iitnmitlee will also bring this subject to your 

 attention in a special report. 



The above is respectfully submitted. 



.T. C. Knox, Secretary. 



in the absence of Treasurer C. T. Mitchell 



of Cadillac Secretary Knox presented the 



treasurer's report, which showed a total credit 



of ,$2,354.84 and expenditures of .$964.71, 



leaving a balance on hand of $1,113.1,'?. 



The grading rules committee, of which IJ. 

 H. Day of Glen Haven is chairman, was the 

 first regular committee to report. Mr. Day 

 stated thtit notliing of material importance 

 had occurred in his committee since the last 

 meeting and presented no fortnal report. He 

 was followed by N. Micholson, who made an 

 iijipeal to the association in behalf of hem 

 lock piece stufl'. ilr. Michelson contended 

 that, in order to make the stock uniform witli 

 southern pine and also to lessen freight rates, 

 inanufjictiircrs should be allowed three-eighths 

 instead of one-quarter scant on such stock. 

 He also contended that the term " mercliant 

 able" shottld include No. 2 Common and bet- 

 ter instead of No. 3 Common and better. The 

 suggestion led up to an exhaustive discussion 

 by the various members in which it was shown 

 that there is more or less misunderstanding 

 between members in different sections' of the 

 state as to the exact definition for No. 2 and 

 No. 3 Common. The question was finally put 

 in the form of a motion by Bruce Odell, in 

 which he recommended that it should be sub- 

 mitted to the grading rules committee with 

 a recommendation that on all hemlock piece 

 stuff three-eighths inch scant should apply 

 on width and one-quarter scant on thickness. 

 Committee on Market Conditions Reports 

 Bruce Odell, of Cadillac, chairman of the 

 Market Conditions Committee, consisting of 

 himself, D. M. Kneeland of Lewiston, John 

 C. Eoss of Bay City, G. von Platen of Boyue 

 City, W. L. Mar,':in of Cheboygan, F. L. Rich- 

 ardson of Alpena, and W. C. Hull of Traverse 

 City, presented a report which had been care- 

 fully prepared by that committee. It reflected 

 conditions favorable to sustained or advanced 

 prices on many items. A large number of 

 hardwood men in Michigan are cutting out 

 and there is nothing to warrant the idea that 

 next year's supply will be in excess of the 

 present. The report was discussed by Elmer 

 Klise of Sturgeon Bay, G. von Platen of 

 Boyne City, Bruce Odell of Cadillac, 0. A. 

 Felger of Grand Rapids, D. B. Ward of Bay 

 City, H. Ballou of Cadillac, F. T.,. Richard- 

 son of Alpena, W. P. Porter of Fast Jordan, 

 and others, and was accepted and filed. 



H. Balloti of Cadillac, chairman of the 

 committee on special terms of sale, submit- 

 ted to the association a novel plan for gov- 

 erning that question, which is embodied in 

 the following report : 



Terms of Sale Eeport 



At present the prevailing terms of sale appear 

 to be sixty days from date of itivoiee, with i; 

 pereent off for cash in fifteen days. We find 

 that these terms are imposed upon in a majority 

 of cases. Some of our leading tirms i-eiiort that 

 at least .'iO percent of the discount reniittances 

 run from thirteen to twenty-five days before mak- 

 ing the discount remittance. We have had the 

 matters up with the Northern Hemlock & llard- 

 wocid JIanufactureis' .Association of Wisconsin 

 and it reports that its prevailing terms arc sixty 

 days net. 2 per cent discount in fifteen days. 1 

 per cent discount in thirty days. 



Your committee considered the matter of mak- 

 ing terms net thirty days, but thought it would 

 he t(io radical :i change to propose. We there- 

 fore made a studv of the matter to see it a 

 change in form would not produce better results 

 than the present 2 per cent discount. The point 

 at issue is that so many of our customers are not 



;il,lc to receive the lumber, unload it and nuike 

 comparisons iitid get their remittance in fifteen 

 days from date of invoice. TJudoubtedi-y a ma- 

 joi"ity of them woulil like to deal fair in the 

 matter, but do not like to lose the opportunity 

 of discount even though a few days have expired. 

 Now "J per cent discount m fifteen days means 

 IC, per cent annual interest from the unexpired 

 lieriod ; 1 M; per cent discount in fifteen days 

 amounts to 12 per cent annual interest frcmi the 

 unc'.xjilred period. We have no disposition to 

 criticise the results that can he obtained from 

 discount made on the basis of 1 Vi per cent for 

 lifteen days, but tlie trouble would be that they 

 would overstep the bounds of remitting just as 

 miii-h on that basis as they would on a 2 per cent 

 basis. We therefore propose a scheme for dis- 

 counting that will enable our customers to dis- 

 <-(nint at any per cent within sixty days, be it 

 one. two, three, twenty or thirty days from the 

 date of the invoice, and they will not have any- 

 thing that will give them any excuse for dis- 

 counting contrary to the adopted scheme. The 

 terms we propose are as follows : 



This invoice is due sixty da.vs from its date. 

 If discount is taken we will allow 12 per cent 

 MiUHjal interest from date remittance is made. 

 These terms to apply on all hemlock and hard- 

 wood sales in the state except for cargo ship- 

 ments, which we understand are now well estab- 

 lished at thirty days net from date of shipment. 



We respectfully recommend that the secretary 

 submit the proposed terms of sale to every mem- 

 ber of this association for his signatiu'e and ap- 

 proval and that he submit to this association at 

 the next meeting the names of the members ap- 

 proving them, atul if sufficient number of mem- 

 bers approve of this scheme that this association 

 lix a date at which the same shall go into effect. 



j\Ir. Ballou 's recommendations met with the 

 hearty support of the entire attendance, and 

 in a speech following the reading President 

 Bigelow recommended the adoption of better 

 terras of sale in behalf of both manufacturers 

 and consumers. 



Manager Leonard Bronson of the National 

 Jjumber Manufacturers ' Association sug- 

 gested that, as far as he knew, the plan had 

 never before been attempted in any quarter, 

 and spoke most favorably of its possibilities, 

 ifr. Bronson was of the opinion that terms of 

 sale have been more or less a local question, 

 and he said he believed that the only good 

 terms are those which recognize an average 

 time of delivery. The formal acceptance of 

 tlie report followed. 



.Just before the adjournment for the noon 

 recess A. L. Holmes, chairman of the Trans- 

 portation Committee of the Detroit Board 

 of Commerce gave a brief resume of the 

 fight of allied industries of Michigan against 

 the new ruling on the question of demurrage. 

 Mr. Holmes' remarks are generally embodied 

 ■<ii a letter printed under the report of the 

 Raih'oad Committee. 



APTEENOON SESSION 



Tlie meeting reconvened at about two- 

 tliirty. President Bigelow opening the session 

 willi an appeal to the members personally, 

 ill behalf of the Yale Forestry School Fund, 

 wliich now lacks $2,000 of the requ,ired $100,- 

 'KlO. If the lumbermen of the country will 

 contribute to this cause the latter sum, there 

 will be raised from outside sources an addi- 

 tional $200,000 to go for the same jiurpose, 

 hut conditional upon the ability of the lum- 

 hermen to contribute their share. Contribu- 

 tions should be forwarded to Edward Hines 

 of Cliicago. 



'['lie association had as a guest W. C. Lan- 

 don of Wausau, Wis., president of the North- 

 ern Hemlock & Hardwood Manufacturers' As- 

 sociation. Responding to President Bigelow '3 



