32 



HARDWOOD RECORD 



la nil rlfilit other things tisunlly take care of 

 themselves, and there Is no reason why the 

 comlnf; year should not he a fair one. It Is my 

 hellof, while always optimistic, that 1!)0S will 

 he good. I'erhaps the vohiuii' of liuslnoss will 

 not he as large as 1!HI7. propnrlir>nntcly, hut It 

 will be a giHMl year for association life — a year 

 when yon will need the association more. Of 

 cotirse, there are some people In this trade and 

 other lines that don't need associations any 

 time, hut If you will shake hands with thesse 

 gentlemen and look Into their trial balances 

 you will lind they are covering up something. 

 They are not telling the world that they are 

 losing money. There is no successful line of 

 business to<lay that doesn't Include association 

 work; there are four meetings in this hotel 

 right now. of the llvest people In I heir linos. 

 Why do they come together and cvchango notes'.' 

 Why do they come and sit around a table and 

 say. "1 sold my stuff for so much money. 1 am 

 asking so much for such a thing." Why'; I'.i' 

 cause they feel that they are partners and arc 

 benefited by comparing notes with each other. 

 That, of course, is the reason for the existence 

 of this association of veneer men — to bring to- 

 gether people from all over the country — get 

 conlidence In each other- talk over the practical 

 end of their business — and it one Is especially 

 gifted In handling a certain pr(Kluct. give the 

 others the benefit to help them introduce goods 

 by letting them have this information as to how 

 to do it. liut one of the greatest things is the 

 possibility of two or three nu-n catering to the 

 same trade coming together and endeavoring to 

 get a fair price for their goods. 



This association is responsible for the pros- 

 perity of the trade today. I do not believe the 

 man wlio goes 300 miles from his liome every 

 year to attend it will deny lliis statement. I 

 know the men who have been able to get the 

 highest prices in years past — even when every 

 thing was demoralized — have stated thai I lie 

 benefits they have received from the work nl 

 ready were far beyond their expectations. There 

 are always two classes of manufacturers at any 

 time — those who get the highest prices and the 

 low-priced men who want an order at any price. 

 The latter gives himself away the moment he 

 goes into a buyer's office, lie is so anxi<nis Xu 

 get the order that he goes in with his hat in bis 

 hand and says. "I'lease. Mister, give ine this 

 order— yon make the price." We have tried 

 through bulletins to keep the manufacturers gen- 

 erally informed as to what is doing. We have 

 had no one who gave all his time to the work 

 of the association, and hence the spasmodic 

 efforts. 



I believe the poissibililies for inos are great. 

 They certainly are great if we get the right 

 man in the saddle who will make It bis business 

 to study the trade, visit manufacturers, keep in 

 touch and manage the details of tlie "wheels 

 within wheels" in this organization. Your offi- 

 cers are all busy men and have their own af- 

 fairs. While they are always willing to help 

 and do everything possible to advance the Inter- 

 ests of the association, you know what is every- 

 body's business is nobody's business. I liope 

 your committee will make It possible to put this 

 work on the highest possible plane by having a 

 central office where the men from Indiana, from 

 New York. Califorula and Louisiana can meet 

 together any time and get any information that 

 is at hand. 



In this classification matter we Imve seen the 

 possibilities of what miglit be accomplished b.v a 

 man who will just keep everlastingly at the rail- 

 road peoide to give no advantage to any other 

 trade and who will protect the veneer and panel 

 trade as it should be protected — excuse me. I 

 mean the thin lumber trade. I hope you will 

 consider carefully the employment of a perma- 

 nent secretary. We have talked about this at 

 our various meetings, and we have had assist- 

 ance from the minor clubs' officers, who have 

 done good work, but we want a big man. We 



want a nnin thai (he largest nianul'aclurer here 

 would pay live or sl.x thousand dollars a year, 

 and he could make every one of you dividends. 

 You can conduct the various organizations 

 within this one and create more, and at less ex- 

 pense than In any otbei* way. Then, if you get 

 the man you all have confidence In, It will be a 

 great link between manufacturers, and jiractical- 

 ly make the veneer trade a band of brothers, all 

 In partnership with each other — not to rob any 

 one, but to get a fair price for their goods. 



(Jentlemen. we have not Increased our mem- 

 bership as we should have, partially because 

 si>me thought if they Joined (tne of the clubs 

 they did not need the national licKly. When this 

 organization was started in (Mnclnnall Ihere was 

 not an association in the A-eneer and panel 

 ti'ade. Some of the largest manufacturers did 

 not know each other. The fa<'t of the matter 

 Is, they didn't want to know each other. They 

 <-ould see nothing but a wolf in sheep's clothing 

 in any other man in the trade. The result 

 was that the buyer controlled the situation en- 

 tirely. No matter how good a salesman a man 

 might lie. when lie went up against the buyer 

 he found that ttie other man had been there — 

 or so lie was told, whether he had or not — and 

 bad (juoted a price mighty close to cost, or even 

 less. In fact, this same buver would turn 



I). E. KLINE, LOUISVILLE, KY., ItETIHING 

 rUESIDENT. 



hack to bis file and show a liuotalion iicrliaiis 

 two years old, carefully covering ui) the date. 

 This is being done today witli men who are not 

 in toucli with each other in tlie veneer trade. 

 If you do not believe it. I can quote you actual 

 instances. We have not made as much progress 

 as we should in this one thing. I had a con- 

 versation with some one lately in reference to 

 certain territory where several were selling 

 goods. I asked about prices. They said to me 

 that they were not as good as they should 1)6. 

 I asked why. "Well. .John Smith has quoted 

 in this territory so much money." "Can't .vou 

 get liim to sell this stuff for a higher price'/" 

 I said. "No : he said he would not do It." was 

 the answer. I talked the matter up with John 

 Smith, and he told me that the other fellow- 

 had been taking his trade, and there they both 

 were, getting fully 10 or 15 per cent less than 

 I hey should get for that same trade, but had 

 they come together and said, "Here, now, we 

 only want a fair price for this business." and 

 stuck to it. how much better off they would 

 have been. It is easy enough to make a division 

 of this trade — to say. "Now. this customer is 

 close to you and you make certain stock, so 

 you sell him." and by thus dividing up the 



trade all would get a fair price for what Iluy 

 sold, and Iben let somebody else have the next 

 customer. Of course. I know the Attorney (teii- 

 eral doesn't like to have people get together, but 

 I don'l think any man need be ; 'raid to protect 

 his own business fi-om loss — at least I would intt 

 Im> : I would have no hesitation in meellng one 

 or (wo men in my business and talking my 

 affairs over with them. If I'ncle Sam will allow 

 ibe railroads to i)ro(ect themselves against loss 

 by asking a proper price for carrying th<' stock 

 you people make, why shimld he not permit you 

 to iirolect yourselves against loss by talking 

 over iirlces and seeing that none of you demoral- 

 izes the trade'/ rnfortunately we get so anxious 

 lo land business that we .sometimes want orders 

 without regard to price. Now. while this assii- 

 ciali(ui has never been an organization of price 

 makers. I contend that there should be a bulle- 

 tin sent to the trade. Suppose .Tohn Smith, wln) 

 Is 1.000 miles away — suppose he does cut the 

 price. Now, isn't it better for him to have some 

 information as to about what stock ought to 

 sell for than to be left In the dark'; 



Itilly Mershon made a contention a few years 

 ago that I always thought was true. lie says. 

 "It Is cheaper to educate the other fellow than 

 lo let him educate you liy making your prbes 

 for you." Now. If you will look In your uiemor.v 

 liook ten years back you will find that if you 

 crmld have educated Itlll .lones he would not 

 have cut prices near so much and so made you 

 sell your stock so cheap. In other words. I 

 would like to see a committee give out to ibe 

 veneer trade some values as to about \\hai 

 stock ought to sell for — not a tight-bound propo- 

 sition but an educator. It doesn't make any ilif- 

 ferencc if tlie bu.ver does know about il. In 

 another trade where we have had such a list 

 for twelve years we now have ninety men who 

 sell for about the same. There is no agreement 

 to sell at any price, but .iust a recommendatirai 

 from some of tlie livest men in the trade tliat 

 a certain class of stock ought to be sold for a 

 certain prit'e. Of course, where trade is dull. 

 It Is hartler to keep near that price than at other 

 times, hut it's a good tiling. These men are nol 

 large manufacturers, but they are good busi- 

 ness men and appreciate the fact that the other 

 man is in business also and that there is a 

 possibility of their helping each other. Today 

 if they want to take a trip to Europe the.v can 

 do so because the.v have the money In the bank 

 as a result of their open efforts. I do nol 

 want to take up an.v more time, but I hope we 

 will get closer together and make each otlier 

 some money. I want to read you the communi- 

 cation from the Oregon and Washington Lumber 

 ^iamifacturers' Association, to which your presi- 

 dent referred : 



roRTL.VND, Out:., Nov. 10, 1007. 

 Mr. D. E. Kline. President National Veneer and 



Panel Manufacturers' Association. Louisvilh'. 



Ky. 



Dear Sir : The National Kallway Commission- 

 ers' Association at their session held at Wash- 

 ington, D. C, October S-11, adopted the follow- 

 ing amendment to the interstate commerce law : 



"No increase of an Interstate rate or discon- 

 tinuance of a rate affecting an Increase siiould 

 be permitted without opportunity to jirotest be- 

 ing afforded, and upon hearing and determina- 

 tion as to reasonableness when objection Is 

 made In advance of the new rate becoming effec- 

 tive." 



There is probably no Industry In the T'liited 

 States that Is more Interested in permanent 

 freight rates than the lumber business. Upon 

 the stabilit.v of rates depends absolutely the 

 prosperity of any Industry. An effort will he 

 made at the coming session of Congi-ess to amend 

 the Hepburn rate law to provide that the Inter- 

 state Commerce Commission may, upon complaint, 

 suspend a new rate from becoming effective un- 

 til a hearing has been granted to the interested 

 shipper. The justice of this amendment will at 

 once become apparent to you, for it can be 



