24 



HARDWOOD RECORD 



September 20. 191!1 



Baltimore Exchange Meets 



Till' (lujirtcrly iiuTtliiK ul' tlio ISalliiiiciii' l-uiiiliiT Exchanyu was lieUl hist 

 Monday evening at tho Morcliants* Cliil>, having been postponoii two weeks 

 heyond the usual time because of the intervening of two holidays — Labor 

 Day and Old Defenders' Day, the latter celebrated In commemoration of 

 the Battle of North I'oint. There was a fair gathering of the members, 

 but little business came up for consideration and action, most of tlie 

 iletails having been disposed of at tlie monthly session of the Managing 

 Committee in the afternoon. W. Hunter Edwards, of B. W. Edwards & 

 Hons. the president, occupied the chair, and an excellent luncheon fol- 

 lowed the l>usiness session. 



Plan for Co-operation with Hoover Nearly Mature 



Wilson Compton, secretary-manager of the National Lumber Mauufiu-- 

 turers' Association, and one of the foremost Ijusiness experts and ec(Uio- 

 mists of the United States, has about completed the general plan under 

 which this association will become a recognized worlsing factor in the 

 newly estal)lished policy of the Department of Commerce which looiis 

 toward a strong coalition between tlie government and the business inter- 

 ests of America. Since lumber is second only to agriculture in industrial 

 importance it is manifestly logical that lumber should lead in blazing 

 tile trail liack to national prosperity. It is pointed out that lumlier is in 

 a partieiilariy favorable position to cooperate with Secretary Hoover 

 inasmuch as lumber of all liasic industries has deflated most thoroughly 

 and is now upon approximately the same basis of cost and prices as in 

 1013. The slightly higher prices of lumber at the present time over 

 the 1013 period are entirely accounted for by those elements of manu- 

 facturing cost over which the lumber producers have no control, namely, 

 sucli elements as higher cost of materials, higher taxes, higher freight 

 rates and wages that, w-hile much reduced, are still above the pre-war 

 level. But the lumber industry has liquidated to a point where it can go 

 to the government with clean hands and help in the general restoration of 

 industrial normalcy. 



Secretary Hoover has pointed out that the United States is in the 

 midst of a great industrial depression and that the resistance of a few 

 groups of manufacturers or dealers to lowering prices to the general level ; 

 the resistance of a few groups of workers to accommodation of their 

 wage to the decreasing cost of living, and the necessity of a better day's 

 work : tlie refusal of some people to curtail their extravaganct^ — all justly 

 contribute to our undoing. More than six months ago the lumber industry 

 recognized the economic truths so forcibly presented by Mr. Hoover, and 

 (luring the Intervening period lumber manufacturers have been engaged 

 in a vigorous readjustment that led to rapid reduction in lumber prices. 

 So severe was this readjustment that now the lumber manufacturers of the 

 United States find that in their eagerness to liquidate their business to its 

 foundations they have actually reduced prices at their mills below the 

 cost of production and as a conesquence more than half of the sawmills 

 of the country are either closed entirely or are working half time merely 

 to keep their organizations intact. .\11 of these facts have developed in 

 numerous conferences Iwtween Dr. Compton and officials of the Department 

 of Commerce, and as a result lumber statistics gathered by the National 

 Lumber Manufacturers' Association under authority and direction of the 

 Department of Commerce, will be compiled and distributed through federal 

 agencies and the association itself to the whole United States. This plan 

 of laying all the cards upon the table is not only in accordance with Mr. 

 Hoover's policy and the prerequisite to government cooperation with busi- 

 ness, hut it is something that the lumbermen themselves have sought for 

 years. They are enthusiastic In their desire to cooperate with the govern- 

 ment, for in so doing they will thereby purge themselves completely of the 

 undeserved calumny and slanderous propaganda that has been directed 

 against the lumlier Industry by those who either ignorantly or maliciously 

 impunged every act and purpose of the American lumbermen. 



S. H. T. A. Confident of Securing Reductions 



The Southern Hardwood Traffic Association, in its latest statement to 

 its members, has the following to say regarding the rate case now pending 

 liefore the Interstate commerce commission through which it is seeking a 

 return to the basis of rates on hardwood lumber and forest products In 

 effect prior to August 2G. 1920 : 



'"rt'e are making very rapid progress in the compilation of our exhibits 

 and testimony to be offered the commission in support of our contention 

 for rates in effect last August. We feel very confident as to our ability 

 to obtain substantial reduction in rates." 



Cecil A. New, assistant secretary of the association, will be in Chicago 

 September 21 for an Important conference with officials of the trans- 

 continental carriers regarding a reduction from $1.0614 per hundred 

 weight to 73 cents per hundred on hardwood lumber and forest products 

 moving from Memphis and from Louisiana and .\rkansas points to Pacific 

 Coast destinations, with the usual differentials from other groups. This 

 gentleman held a conference with the same ofiicials last week in Chicago 

 and will return to finish the matter. J. H. Townshend, secretary-manager, 

 is authority for the statement that the bulk of the movement of hardwood 

 lumber from Mississippi Valley territory to Pacific coast destinations is via 

 the Panama canal because of the cheapness of rail and water rates as 

 compared with all-rail rates. He believes that this movement, which Is 

 decidedly against the trans-continental lines, will influence them in making 

 sul)stantial reductions and he confidently looks forward to a material 



lowering of the rates to destinations in question. The association has been 

 working on lowir rates on the iiart of trans continental carriers since last 



Marcli. 



An Exceptionally Strong Program 



Due to the exceptionally strong program which has been arranged for 

 the annual convention of the National Implement & Vehicle Association 

 and also to the unusual conditions confronting the industry it is expected 

 that the twenty-eighth annual meeting of that organization will attract 

 a record attendance. 



The convention will be held in the Florentine Room, Congress Hotel, 

 Chicago, October 12 to 14, inclusive. The opening session will be con- 

 vened by President W. II. Stackhouse at 10 o'clock, Chicago (daylight 

 saving) time. Wednesday, October 12, and the convention will be con- 

 cluded with the annual lianquet on Friilay evening In the Gold Room. 



The more vital problems facing business generally and the farm equip- 

 ment industry particularly, such as cooperation between government and 

 business ; agriculture ; labor ; transportation, and finance will be treated 

 by some of thi^ best known authorities of the country, among them Herbert 

 C. Hoover, Secretary of Commerce ; Henry C. Wallace, Secretary of Agri- 

 culture ; Wm. II. Barr, President of the National Founders' Association, 

 widely known as a speaker on the open shop; Hon. W. P. C. Harding. 

 Governor of the Federal Reserve Board, and General W. W. Attcrbury, 

 Vice President of the Pennsylvania Railroad. 



Lumbermen Told Prosperity Is at Hand 



Gilmer Winston, vice luesiclent of the Union & I'lanters Bank & Trust 

 Company, one of the largest financial institutions in tlie South, told mem- 

 bers of the I^umbermen's Club of Memphis, at their first regular semi- 

 monthly meeting of the fall season at the Hotel Gayoso Saturday after- 

 noon, Sept. 17, that they were on the eve of an era of prosperity that 

 would last for a number of months, and urged them that, if they had 

 held on to their lumber this long, they continue to hold on to it a little 

 while longer with the certainty that they would be the gainers by this 

 process. 



Mr. Winston was decidedly optimistic in his views regarding the busi- 

 ness situation for the next few months, and he based his optimism on the 

 following facts: (1) That the advance in the price of cotton ramifies, 

 in its advantages, throughout the financial and industrial structure of 

 the whole world : (2) that every indication points to easier money and 

 more plentiful funds, with particular reference to increase of bond sales 

 and the discontinuance of short term notes which were so popular when 

 confidence in the outlook was less certain than now ; and (3) that the move- 

 ment of the stock market discloses a substantial advance in values, thus 

 showing what Wall Street and other financial interests think of the 

 situation for the next few months. 



Speaking of the attitude of the banks toward owners of cotton, lumber 

 and other commodities, Mr. Winston said : 



"The banks do not want anybody to go out and sacrifice cotton, lumber 

 or any other commodity. Banks are merchandising credit just as mer- 

 clianfs are selling goods. They have no idea of forcing liquidation. Their 

 policy is rather one of cooperation. Lumbermen who have held on during 

 the depression of the past year should continue to hold a little while 

 longer. If they have nerve for a little while, they will come out all 

 right, because I am confident that we are approaching an era of much 

 greater prosperity which will last for some months and which is not very 

 far ahead." 



J. H. Hines. president, referred briefly to developments in the yellow- 

 pine industry which advances and declines ahead of hardwoods. He stated 

 that the yellow pine market shows a much stronger undertone and that 

 manufacturers are well booked ahead. He also called attention to the fact 

 that one member of the Lumbermen's Club who had made three sales of 

 No. 1 common red gum during the past several weeks had received an 

 advance of $S per thousand on the last as compared with the first. He 

 voiced the hope that the prosperity of which Mr. Winston spoke would 

 materialize between now and the first of the new year, and that it would 

 eventuate in an advance of at least .$10 per thousand for log-run. 



J. W. McClure of the Public Safety Committee of the Memphis Chamber 

 of Commerce stated that lumber and planing mill interests in Memphis 

 were expected to contribute $1,000 to the support of this committee in 

 its efforts to enforce the law in Memphis, and that plans for the collec- 

 tion of this amount would be completed witliin the next few days. His 

 statement followed a brilliant address by Judge Julian Wilson on what 

 the Chamber of Commerce is attempting to do, through the Public Safety 

 Committee, to curb lawlessness. 



Effort to secure passage of resolutions favoring legislation by Congress 

 to insure payment of $500,000,000 to the railroads in settlement of alleged 

 claims growing out of government operation failed signally. W. H. Dick 

 of the Tallahatchie Lumber Company and a member of the Traffic Com- 

 mittee, declared that, with the Southern Hardwood Traflio .\ssociatioii 

 fighting present freight rates, on the ground that the railroads are get- 

 ting entirely too much money, it was not consistent for the club, most of 

 the members of which are identified with the association, to turn right 

 around and ask Congress to provide more funds for the carriers. He 

 stated, among other things, that the Illinois Central earned during the 

 first six months of 1921 at the rate of 18 per cent for the year on it? 

 capital stock. He evidently voiced the sentiment of the entire member- 

 ship because the resolution did not even come to a vote. 



