June 10. 1021 



HARDWOOD RECORD 



21 



oriKinal claims pofid or l)a<3 amount pd to 1 'i r''f <'<'Dt only, and claims 

 subsequently shown lo be gootl amounted to less than one-half of 1 per 

 cent. This is not only a remarkable showlnK but furnishes a record which 

 may be safely offered for comparison with the inspection work of any 

 individual firm, however accurate may be its business practice. Any 

 friendly question as to whether i>ur Association is a successful establish- 

 ment can promptly be answere<l in the affirmative by a disclosure of such 

 an inspection record and of our consistent fcrowth in membership. Arjiu- 

 ment in addition to these facts would hardly seem necessarj'. 



Certain well reco^ized principles upon which individual success is 

 predicated find to a very interesting desrce similar application to the 

 work of a well ordered association. The individual who assumes the world 

 hostile to himself, and who in order to fisht the windmills his imapiination 

 has thus constructed, conducts his business in selfish disregard of the 

 rights of others, may be permitted for a brief time to delude himself with 

 an apparent success. In the same manner an association of business men 

 designed perhaps through want of vision to secure advantage for its own 

 members as against the world, may under favorable conditions enjoy a 

 fleeting vogue. A business life <if real service and commensurate profit 

 must, however. V>e based on broader lines both for the individual or the or- 

 ganized group. The individual instead of attempting to profit at the expense 

 or Those from whom he buys or th(»se to whom he sells, must recognize the 

 Interests of iKith ; an organization of business men. whether in our industry 

 or any other, should properly rest on the sound principle of a generous 

 consideration of the interests of all parties who fall within its sphere of 

 influence, whether within or without its membership. Just as surely as 

 one section, conceiving itself to be a preferred class, organizes and legis- 

 lates for the purpose of monopolizing control of that industry, we may 

 conclude that it is "riding for a fall." 



Selfishness Is Short Sightedness 



The conclusion is to me unavoidable, that it is shortsighted policy for 

 retailers, for instance, to assume to dictate as a group the terms and con- 

 ditions upon which manufacturers and wholesalers shall conduct business 

 with them : and for manufacturers or wholesalers in turn to arrogate to 

 themselves the privilege of formulating restrictive regulations for other 

 branches whose good-will they must seek to cultivate and who will stoutly 

 resent any refusal to take their interests into fair account. It seems 

 almost axiomatic indeed that the individual and likewise the association 

 must so function, as factors in the industrial scheme, as to facilitate and 

 not to hinder the progress of the whole industry ; but peculiarly enough 

 there is occasional evidence that some individuals and some associations 

 still hold to purposes that would seem to ignore this social and economic 

 principle. If perchance instances may be found of associations which have 

 met with failure or indifferent success, may it not be worth while to 

 inquire whether they have not been established upon a mistaken principle 

 of service? And if so, should not our association try to avoid similar 

 pitfalls ■'. 



It seems to me that as memlK-rs of the National Hardwood Luml>er As- 

 sociation, upon the evidence at hand and without false pride, we may 

 eatertain a sound enthusiasm in the fact that our Association in its con- 

 cept of true and sustained usefulness is successful in the attempt not only 

 to serve all its members impartially, but to take into fundamental account 

 the interests of those as well who furnish the consuming market for the 

 lumber we make and sell. Having constructed well upon this theory, but 

 with minds wide open for the adoption of suggestions which have the 

 merit of being constructive as well as new, should we not guard against 

 legislation which may impair our standing, particularly it it threatens to 

 favor the interests of one class of membership against the others ; or if it 

 goes farther and contemplates disregard of the interests of the far-flung 

 and varied clientele with whom in the last analysis it is absolutely essen- 

 tial that we co-operate? Indeed the universal public sentiment regarding 

 actual and threatened monopolies finds no clearer expression than the 

 various attempts of the past few years to dispose of what are commonly 

 called the "trusts." 



The Primary Objects 



A reference to Article 111 of your Constitution and By-Laws indicates 

 that the primary object of this Association is "to establish, maintain and 

 apply a uniform system tor the inspection and measurement of hardwood 

 lumber," and while it is true that this purpose is enlarged in the same 

 article "to promote the welfare and to promote the interests of the hard- 

 wood trade," a study of that instrument indicates no purpose of its authors 

 to establish a general trade organization providing tor such general asso- 

 ciation purposes as universal arbitration, organized traffic or credit bureaus, 

 statistical and price stabilizing ventures, fixed terms of sale, uniformity 

 of contract or any of those activities commonly and properly attempted by 

 many organizations. I do not intend, of course, to construe our purposes 

 as limited to the inspection of hardwood lumber it it should be the wish 

 of our membership to change the original purposes of the organization. 

 It is my earnest recommendation, however, that in contemplating a field 

 we have not heretofore occupied, we should subject every proposition in- 

 volving a material deviation from present and approved practices to tests 

 1 have endeavored in a faulty way to define. 



The primary purpcise of our association, the establishment and applica- 

 tion of a uniform inspection seystem. involves further considerations which 

 in themselves may preclude the safe consideration of other purposes — that 



is to say, regulations providing for a universal lumber inspection system, 

 must be so broadly drawn as to meet In certain terms the widest range of 

 local circumstances. Our regulations must he drawn to pass current 

 ■ everywhere if our grading rules are to be applicable everywhere, and the 

 producer or dealer be enabled to handle bis hardwood lumber upon speci- 

 fications so precise and yet of such universal apidlcatlon as to be accept- 

 able equally to the consumer who makes spools in Vermont or Interior finish 

 in California or to the millman who makes ties In Florida or ship timbers 

 in Texas. In other words, hardwood Inspection means a single universal 

 language. In complete distinction, however, the determination of equitable 

 terms of sale and similar matters may he governed largely by local policy 

 or interest. The requirements of the sawmill man may demand cash set- 

 tlements, and his demand may be entirely justified; a wholesaler, on the 

 other hand, may find it excellent business to assist In financing his cus- 

 tomer by granting the most liberal terms conceivable : he may In fact be 

 influenced by a high conception of salesmanship In so doing. 



Should View Departures Carefully 



The average local or regional association may thus no doubt do many 

 things inappropriate to a national organization having a peculiar purpose 

 such as ours. Please let me emphasize, however, that I am offering this not 

 as a dictum but as a line of suggestion which seems to me to merit your 

 earnest consideration. I anticipate the question in some of your 

 minds as to the occasion of my present emphasis of what seem to me the 

 principles upon which our progress is based. To those of you, however, 

 who have had occasion to follow intimately the activities of the associa- 

 tion, it is unnecessary to remark that the invitation is frequent to deviate 

 from our prescribed path, and the temptation constant and alluring to 

 explore new fields of effort, and 1 deem it a matter of vital concern that 

 we consider such ventures in the light of the proven course which tor us 

 has been one of marked success. 



This Association enjoys the unique distinction of having made an un- 

 paralleled contribution for the benefit of every man who makes lumber and 

 every man who uses it, and President Goodmans remark last year was a 

 wise one, that the "continued growth of this Association Is largely due to 

 the tact that we have made no attempt to enter any other field of effort, 

 but have applied ourselves entirely to the endeavor to secure the best 

 practical rules of inspection and to maintain an Inspection Department 

 qualified to apply these rules honestly and intelligently." 



You gentlemen no doubt know from experience that many activities 

 commonly undertaken by lumber associations are by their nature subject 

 to the frequent local or sectional or individual criticism of those immedi- 

 ately affected. During the last few months many group practices have 

 either properly or improperly been brought even under the ban of the law 

 of the land. With full realization of what this statement means, I do not 

 hesitate to assert that the universal hardwood inspection plan of this 

 association is the most constructive and within legal limits the most 

 profitable contribution ever made to the orderly conduct of the lumber 

 business. To the authors of this plan, and to the organization which for 

 twenty-four years has successfully made it effective, generous credit may be 

 given without immodesty. 



Buckley Is Honored 



One recent act of your Board of Managers will, I am sure, enlist your 

 enthusiastic endorsement. Jit our mid-winter meeting, Edward Kuikley 

 of Manistee, Mich., broached the question of withdrawing from the board 

 because of his partial relinquishment of active business. Your managers 

 were insistent ui)on retaining our veteran director upon the oflicial roll 

 under a suitable title, and without a dissenting voice constituted him a life 

 member of the Board of Managers, To our many members who know Mr. 

 Buckley this will come as a fitting tribute to his consistent loyalty to the 

 principles of this Association. Mr. Buckley has always been esteemed for 

 his warm and constant support of this association, has uniformly observed 

 a spirit of comity toward his fellow-members, and has never falle<l in 

 generous observance of the principle that those with whom he dealt were 

 also entitled to a profit. You will all join the members of the board In 

 wishing Mr. Buckley many more years of health and participation In our 

 meetings. 



As touching the future work of our Association, various matters will be 

 presented to you during this meeting through committee reports and by 

 eminent speakers who have honored us by accepting a place on the program. 

 I commend most heartily to your consideration the carefully considered 

 report of your Inspection Rules Committee. We shall also be keenly in- 

 terested as citizens and not only as lumbermen In an able presentation ot 

 the question of "Forestry Legislation." Whether we invite it or not, there 

 is a popular demand that lumbermen record themselves in connection with 

 the National Forestry Policy, and you may deem it wise to express your- 

 selves upon this matter. Further than this, the conservation of the raw 

 material ot our forests indicates to many the need of a closer cooperation 

 between the maker and the final user of wood products. You will be privi- 

 leged, therefore, to hear an able discussion bearing upon the relation of 

 the producer to the consumer of hardwoods. 



Among other matters for your consideration, there will be presented 



either by your Hoard of Managers or directly by those most interested, a 



carefully considered proposal that our association adopt a "Sales Code." 



Opportunity has already been given to our members to study the form 



(Continued on page 2'I) 



