36 



Hardwood Record — Veneer & Panel Section 



September 25, 1921 



units in the plywood field is debatable, but there should be no hesi- 

 tancy in developing new uses, new applications and novel adapta- 

 tions of our product. Our trade promotion committee should give 

 this more careful attention. 



"Brookmire is most hopeful in his September 12th Forecaster, 

 stating definitely that 'general business conditions in the United 

 States and Canada have definitely turned the corner and that we are 

 now entering into a new business cycle. In accordance with this 

 judgement of the present business situation, the arrows on the 

 Manufacturers and Business Compasses have been moved into the 

 first period of a new cycle. This changes the advice on the Busi- 

 ness Compass from 'plan for expansion* to 'increase stock ex- 

 pand." On the Manufacturers Compass the general policy is 

 changed from 'increase equipment' to 'accumulate low priced raw 

 materials.' These we believe are the general policies to be fol- 

 lowed by merchants and manufacturers respectively at the present 

 time.* 



Perplexed by Furniture Men 



"We are naturally perplexed by the disposition on the part of 

 the Furniture Manufacturer to produce his own plywood at a time 

 when labor is plentiful and the need for maintaining his skeleton 

 organization is important. It is your president's firm conviction 

 that when costs are fairly figured and overheads are properly dis- 

 tributed, that a well operated plywood plant can produce plywoods 

 at a profit and sell them at what it would cost the furniture factory 

 to make them. 



"W. H. Coye, cost consultant of the .Allied Furniture Trades, has 

 made the following statement: — 



'Generally speaking, no factory making a standard line of fur- 

 niture using plywoods with plain face veneers would be justified in 

 producing them unless their requirements are large enough to 

 operate a complete department full time, and then only if using a 

 large variety of plywoods. It is a mistaken idea that plywood can 

 be produced for less money in a furniture factory than by those who 

 specialize in its production, as those who specialize have the advan- 

 tage of quantity buying and an organization developed and special- 

 ized to a point impossible where the production is limited. Then 

 again, the preparation of the core stock in the dry kilns and 

 factory, as well as the labor required on the built-up stock after it is 

 glued, will interfere with and slow up production of furniture and 

 by so doing reduce output and turnover of investment. 



'When the product of a factory calls for figured veneer, care- 

 fully matched, such stock cannot be produced in a specialized 

 veneer plant more advantageously, owing to the limited quantities 

 required of one kind. In cases of this kind, we recommend that ply- 

 woods be made in the factory requiring same. 



'The character of the material required should be the con- 

 trolling factor in deciding as to the installation, as without ques- 

 tion, the factory with the greatest turnover of investment has the 

 best opportunity for success.* 



Essential Points to Follow 



"The best way to remedy the situation, and to fill our plants with 

 orders, is a perplexing conundrum. Some few points, however, are 

 not difficult to foresee, and our members ought to utilize them in 

 their endeavors to obtain orders. 



"I. Quality will continue to sell goods in the future as it has in 

 the past. The product with a reputation for quality need not meet 

 price competition. 



"2. Neighborliness will continue to be a factor in business. In 

 other words, nearness makes a logical market for each manufactur- 

 ing unit, where freight rates will be low, and service can be effi- 

 cient, prompt and comprehensive. 



"3. Association Co-operation can be made a stronger force in 

 the future than it has been in the past, not along the forbidden 

 line of price agreements, but emphasizing high ideals of quality; 

 establishing standard grades; developing trade ethics; seeking to 

 preserve free and open markets for the raw materials we require; 

 esteiblishing definite and standard cost principles; helping to fight 



our common battle for better freight rates on our raw materials and 

 on our finished products. There never was a time when association 

 co-operation was more necessary, nor when the temptation to slip 

 away from it more insidious. 



"The cost of maintaining our association is just as tryly a part 

 of each inember's overhead as is the maintenance of our individual 

 organizations, and the members must realize that the association's 

 financial problems are not inconsiderable. We must conserve what 

 funds we have, economize on expenditures for the future, and de- 

 vise ways and means to supplement our income. 



"The solidarity of our membership in the past has been most 

 unusual, and it is rarely that any association has come to so strong 

 a position in so short a period of time. 



"According to our Friend Commissioner, the critical time in as- 

 sociation life comes at about three years, and we must watch, as a 

 parent does a growing child, to carry our association through a 

 period that is normally difficult, but is abnormally so under existing 

 conditions. 



"Your president has appreciated the splendid support you have 

 given in the past, and bespeaks the same for the future." 



Decreased Plywood Movement 



In the course of his report Commissioner Wulpi presented a 

 chart indicating the movement of plywood for the past two and one- 

 half years. While for 1920 the average business per quarter year 

 was 3 7 per cent greater per plant than for 1919, the two quarters 

 of 1921 averaged but 19 per cent per plant of the business for the 

 same two quarters in 1920, indicating the extent the line had 

 slumped through the condition in the furniture and building trades. 



A. S. Williams, chairman of the advertising committee of the 

 Mahogany Association, appeared before the meeting and explained 

 his association's efforts in mahogany promotion. He heartily 

 approved the efforts of the plywood association to advertise the 

 virtues of plywood and pledged the co-operation of his association. 



Similar advice was received from the American Walnut Manufac- 

 turers' Association. 



L. H. Sergent. chairman of the Standard Grading Rules Commit- 

 tee, reported that while application of the standard rules was being 

 extended, under present conditions not much effort was being made 

 to further develop them. 



A report w^as made by the Glue Committee to clarify the litiga- 

 tion being conducted by the Perkins Glue Company against alleged 

 violators of Perkins patents. 



The Batesville Lumber & V^eneer Company was elected to mem- 

 bership. 



.A resolution was adopted opposing the proposed import tax on 

 tropical hardwoods and urging retention on the free list. 



The proposed soldiers' cash bonus legislation was opposed and aid 

 to disabled soldiers endorsed. 



The association adjourned to meet in Chicago in conjunction with 

 the meeting of the National Veneer & Panel associaton in De- 

 cember. 



Veneer Consolidation Announced 



The Veneer Manufacturers Comany of Chicago announces the 

 consolidation of its business with that of H. F. Arneman, formerly 

 located at I 622 Monadnock building, Chicago. By this merger Mr. 

 Arneman becomes an officer of the Veneer Manufacturers Com- 

 pany and will be actively interested with Henry P. Walsh, S. J. 

 Glanton and Samuel D. Rowe in the management. In addition 

 to the company's splendid line of figured and plain veneer a large, 

 well selected stock of plywood panels will be carried in the Chicago 

 warehouse for immediate shipment. The advent of Mr. Arneman 

 brings to the company a wealth of experience in the veneer and 

 plywood business which will be of inestimable value to its trade. 



