32 



HARDWOOD RECORD 



nre now only two so(s of hardwood inspection 

 rules, instead of tlie three wiiich we had a year 

 Ego. This bare statement does not. however, 

 fullv express the ehannc wliicli the elimination 

 of the third set of ruios means. Previous to 

 the elimination of this third set of rules there 

 were, in addition to the three sets of rules, two 

 prineiples : for this third set of rules, which is 

 no longer in existence, was the set which had 

 l)ecn formulated and adopted hy the buyers of 

 lumber. For aood and sutflcient reasons the as- 

 sociations which had formulated and adopted 

 these rules would have seen lit to adopt one of 

 the two sets of rules which were formulated and 

 pfomulgated by the sellers of lumber ; so that 

 today, while we have two sets of hardwood rules. 

 thev" are both rules which originated with the 

 sellers of lumber. This, you must admit, is a 

 long step in the right direction. These two sets 

 of rules do not differ in orinciple at all, but only 

 in some of the details, and while they are fos- 

 tered and ajiplied by two different org.-inizations. 

 acting entirely independently and separately of 

 each other, the fact remains that we have to- 

 day more nearly a universal hardwood inspec- 

 tion than ever before. 



I am neither a prophet nor the son of a 

 prophet. I do not care to express any opinion 

 as to whether or not the time will come when 

 these two sets of rules now existing may be 

 amalgamated into one set. I am simply content 

 with sa.^'ing tliat such a consummation is de- 

 voutly to be wished. 



No matter how careful men are. it seems to be 

 impossil)le to avoid differences of opinion over 

 (jusini-ss transactions. In order that these dif- 



-N. n. WAI.rOTT. PROVIDENCli, U. I.. SECOND 

 VICE-PRESIDEIVT 



ferences may b:> adjusted quickly, fairly amicably 

 and with little expense, our association has. 

 among its standitig committees, the committee 

 oil arl)itration. That the work of this com- 

 mittee is appreciated by our members is shown 

 by the fact that, although the services of this 

 committee have been often sought, it has been 

 necessary in only one instance, so far as I am 

 able to learn, to institute legal proceedings to 

 enforce a decision of the committee. This suit 

 is now pending. This does not necessarily mean 

 that the decisions have always been pleasing and 

 satisfactory to both parties to an arbitration, 

 for so long as men are human this would be im- 

 possible: but it does mean that iiur iiiemliiu's are 

 both glad and willing to have their ailferences 

 passed upon by experts and adjusted by friendly 

 and experienced men in whom we all have cori- 

 fidenee. 



I might add that I have never beard of a 

 lawsuit between any two or more of our mem- 

 bers. This speaks volumes for thi' esteem in 

 which the principle of arbitration is held by us 

 all. 



.May I ask your indulgc>nce while we consider 

 for a moment the pending ri'eiproeitv treatv 

 between this country ami Canada? The term's 

 «f this treaty providi'. among other things, that 

 t'anndian lumber will be admitted free" of all 

 duties. Should the treaty be ratified the in- 

 evital'le result will be a large increase in the 

 importations of the low grades of white piiu- 

 and certain kinds of hardwoods. .\nv sub- 

 stantial increase in the supply of thesi' kiiids and 

 grades of lumber must of necessity add to the 

 burdens and iirobloms of the manufacturers of 

 lumber and mak.' the prices for these kinds of 



lumber, already too low, yet lower. This simply 

 means that the airead.v enormous waste in our 

 forests will be materially increased, for the 

 prices of the common grades of lumber are now 

 so low that the lumbermen are barely able to 

 market them at all. 



One of tile cardinal principles of our national 

 conservation policy is that the forests must be 

 conserved : yet the provisions of this treaty 

 would seem "to be such as that our forest waste 

 auist be enormously increased. 



It is not my purpose to enter into any long 

 discussion on this treaty at this time, but the 

 questions which arise from a study of it are 

 ones which tend not to increase either our peace 

 of mind or our optimism for the future. 



The principle of reciprocity we all favor. 

 Everybody w-ants to promote close and friendly 

 relations with our friends on the north, but is 

 it quite right that a few industries should be 

 singled out and asked to pay the price that this 

 treaty demands? Is it quite in accord with the 

 American spirit of "fair play" that a few people 

 should be asked to bear all the burdens which 

 this treaty will bring? Would it not be better 

 to distribute the burdens as well as the benetits 

 of this treaty, so that all our people would be 

 treated fairly and, as nearly as may be, equal? 



For several years the officers and committees 

 on marine and coastwise insurance have be- 

 lieved that an association similar to those which 

 now exist in Cleveland, Ohio, and Norfolk. Va.. 

 could profitably be formed for the benefit of 

 those of our members who have occasion to buy 

 this kind of insurance. Up to the present it has 

 not seemed possible to effect the organization 

 of such an association, but the necessity for 

 such an association is Just as great today as 

 it ever has been, and it would seem as though 

 some plan should be possible whereby such an 

 association could be formed. The benefits to be 

 derived are certainly ver.v great, if we can 

 Judge by the experiences of the ones above re- 

 ferred to. and the reports of the committees to 

 lie submitted for your consideration are respect- 

 fully called to your careful attention. 



The task set for the special Membership Com- 

 mittee has not been an easy one this .vear. The 

 condition of the lumber business in certain parts 

 of the country has been far from satisfactory, 

 with the result that the number of withdrawals 

 from our association during the past year bas 

 lieen larger than ever before : but. on the other 

 hand, in only two other years out of the nine- 

 teen -Of our existence has the uuml>er of new 

 members admitted been so great. The result is 

 a stuall gain in our members. That our special 

 ilembershiij Committee has been able to make 

 such a satisfactory showing in the face of such 

 adverse business conditions, speaks emphaticali.v 

 for their loyalty and industry, and I wish sjie- 

 cially to commend the work of this committee 

 and of our members who have assisted to bring 

 about this result. 



It is very gratifying to be able to report that 

 each .year shows an increased membership, but 

 this is no reason for an.v let-up in our efforts 

 to grow. Constant growth is a sign of health 

 and strength, ^'e have today a membership of 

 about 400. While this is a go"odly number, there 

 are, I believe, at least 100 eligible and desirable 

 lumbermen not now members who have under 

 consideration the question of making applicatioii 

 for membership in our association. With a gen- 

 eral improvement in business conditions, which 

 now seems imminent, it will be much easier for 

 our special Membership Committee to do effective 

 work, and if every member of our association 

 would appoint himself a member of this com- 

 mittee. I firmly believe that we could bring our 

 total u|) to oOft a year hence. 



This matter is respectfully called to your 

 attention and your careful consideration an<l 

 active co-op"ration is asked for. 



It is a pleasure for me to welcome to this 

 convention the delegates from our sister asso- 

 ciations. The relations existing l>etween our as- 

 sociation and all other similar associatifuis are 

 of the friendliest kind, and I know that I voice 

 the sentiments of all the members of our asso- 

 ciation when I express the wish that the pres- 

 ent pleasant relations ma.v long continue. 



In closing I fee! that I want to thank the 

 secretary and all of his office assistants, as well 

 as all the members, for their cordial co-operation 

 in carrying on the work during the past year. 

 It has been a pleasure for me to work with" you 

 and them and at no time have I failed to "re- 

 ceive proper response to such reqviests as I have 

 had occasion to make. 

 Kespeetfully submitted. 



KoEKRT W. Iliiit'.iK. President. 



Following the president's address, tlie sec- 

 retary read his annual report as follows: 



Secretary's Keport 



In making this report we are somewltat in- 

 tiu.Mic. (1 by the fact that the past year has 

 been a difficult and trying period for tlie officers 

 and wiu-king forces of this association, because 

 it is a fact that when trade is poor, or even only 

 ijormal. the demand for information and co*- 

 operation increases. In this truism there is 



conclusive evidence that trade conditions have 

 not been Al during the past year. 



It may not be expected that I should give 

 anything more than a secretary's report but I 

 believe that in giving it, it is my prerogative tu 

 place before you such practical suggestions as 

 may have come to me while occupyibg my posi- 

 tion as secretary. It has been said that "The 

 source of our profits and losses is mainly in 

 the problem of persoijal relationships." 



The conducting of the wholesale lumber busi- 

 ness of fifty years ago is so radically different 

 from the methods as used by the wholesale firm 

 in business today, that all 1 may have to present 

 I believe is pertinent to the fact that this asso- 

 ciation must use its best endeavors to keep pace 

 with, and present to its members each day in the 

 year all the personal information that it 13 

 possible to secure plus such general information 

 as may interest us, and in such manner as well 

 enlighten each, and enable each to occupy the 

 field with the greatest possible efficiency. 



It must be admitted by all that individual 

 effort could never have brought about the pres- 

 ent economic methods of marketing lumber ana 

 which is the result of persistent and intelligeni 

 effort on the part of our association working 

 with others during the past several years, and 

 which has resulted in so sharply ■ defining the 

 channels in which lumber must be handled, as 

 to proper credits, proper manufacturing, grad- 

 ing, etc.. and — not the least important — the 

 question of what is the right trade to sell tt>. 



This latter has been so carefully worked oils 

 and so clearly defined by trade relation confer- 



FREDEllKK W. COLE, NEW 

 TREASURER 



YORK, X. Y., 



ences that the question is now almost never 

 asked b.v our members, — in fact, the principles 

 have forced themselves far beyond the limits of 

 our own membership and away beyond the 

 fondest hopes of the framers of the once mucu 

 despised Boston Agreement which, while in ef- 

 fect only a short term of years, helped to formu- 

 late a system of trade ethics which have led to 

 a great economic saving in the distribution or 

 our lumber products, and is so recognized by 

 those who have been interested enough to study 

 these problems. 



Standards of business are very much alike 

 and trade advantages are being minimized con- 

 stantly by that bond of reciprocity which is sure 

 protection. Our associations have drifted from 

 bl.vklists — (never really effective) — toward a 

 fair list, and toward economic principles: and 

 because of our mutual interests and broad 

 views it has been one of the principles of this 

 .issociation to make a natural channel for right- 

 ing the recognized wrongs of the lumlier busi- 

 ness, ^lany other associations iiave been or- 

 .ganized primarily for the purpose of making 

 money and adding to the individual wealth of 

 the members. It is a source of great' pride to 

 be able to say that this association has been 

 broad enough, and l)ig enough, and fair enough, 

 to io.'ik beyond the individual member and in- 

 ilnde in its work all those with whom we have 

 husine--.s relations. 



In the past year much has been said by the 

 press — the information apparently issuing from 

 certain departments of the government — regard- 

 ing a so-called "lumber trust." but little has 

 been given us in the way of real information, 

 although much may be under cover with which 

 iione of us are acquainted. It is out opinion. 



