December 10, 1918 



HARDWOOD RECORD 



19 



accounting is a correct reflection of the facts, and if you do not want to 

 know the facts as they are in your business you will not be interested in 

 good accounting. 



Assuming that the manufacturer is willing to know the truth about his 

 business, the next obstacle in the mind of the smaller operator is the 

 expense entailed by adequate modern accounting. While it will cost more, 

 • if the system adopted is properly adjusted to the size of the business, its 

 cost will be an insignificant percentage of the money it will save. Wtile 

 it is true that a small operation may not afford a $25,000 manager, it 

 may be equally true that a $10,000 manager is better economy than the 

 man of $5,000 capacity, and a low-salaried accountant may be more 

 expensive to a small operator than one commanding a larger salary ; and 

 the small operator will find the best methods of accounting do not cost 

 any more than, and often not as much as, poorer methods. I am a small 

 operator and this has been my experience. It will he the case with many 

 of us that we have a thoroughly reliable and competent accountant, and 

 we would not like to take a chance on putting in a new man even of 

 greater ability who would be familiar with more correct methods of 

 accounting and neetled for reorgauixing this department. We are dubious 

 about making a change even though we would be willing to pay the 

 increased salary. The answer to this is that the higher-priced man may 

 be the man we now have, after we have given him an opportunity to 

 educate himself to improved methods. 



As the first requisite of proper accounting Is unprejudiced and impartial 

 reflection of phyt^ical conditions, this department must be entirely inde- 

 pendent of the operating department. Beginning in the camps, the camp 



clerk or scaler must bo independent of the camp foreman or woods super- 

 intendent, and this independence must follow on through the accounting 

 work to its head, who must lie accountal)le only to the president. This Is 

 the custom of the larger organizations. It must he followed in principle 

 in the smallest operation to insure correct results. 



The application of correct methods of accounting to the lumber industry 

 is a natiiinal as well as a regional undertaking. " Because of the diverse 

 character of operations, various regions will call for special classification 

 of accounts, and n different emphasis on certain details in one region than 

 in another. It is necessary that these varying conditions should lie con- 

 sidered ami provided for by a single agency so that the statistics of one 

 region may be comparable with the statistics of other regions. In the 

 same manner it is necessary that the adjustments and modifications of 

 accounting, so as to fit it to large, medium and small operations, should 

 be worked out by a single agency so that the statistical result of the 

 small operation may be made comparable with the results of the large 

 operation. 



What will your profits be for the year 1019? Must you work in the 

 dark all through the coming year? Must you remain uncertain as to the 

 answer to this question until the latter part of January. 1920, or do you 

 wish to adopt methods of accounting that will enable you to approximate 

 an answer to this question in advance and to verify your answer month 

 by month throughout the year? This is a new undertaking in National 

 Association work, and this article is written for the purpose of ascer- 

 taining your attitude on this subject. 



T!;^:c?!;!::gE ^^^;^<^;^^^^ ^ 



The Reconstruction Conference 



The splendid address of President Harry A. Wlieeler of the Cham- 

 ber of Commerce of the United States of America opened the recon- 

 struction massmeeting of four thousand American business men 

 delegated to represent all of America's industries at Atlantic City, 

 N. J., Tuesday morning, December 3 to Friday, December 6. His 

 thought was that the three hundred and fifty war boards organized 

 for cooperation and to back the government in the war have served 

 their purpose, but that it was the hope of those calling the confer- 

 ence that the war boards with other delegates of industry meet 

 the problems confronting the nation. 



President Wheeler said in part: 



Peace stands upon the thresholj ot a new day, bidding us lift the curtain 

 upon a -world from which the menace of military autocracy has been for- 

 ever removed. 



How shall we enter in to possess this new world ? With the boastful 

 arrogance of the foolish victor drunk with power, or with the patient 

 humility of a chastened peoples intent only upon building a new civilization 

 and a new code of human ethics on the wreck of the past? 



Yesterday we thought of the period of reconstruction as a distant goal 

 which some day we should attain ; today we are atmosphered by Its prob- 

 lems, confused and perplexed by the adjustments demanding consideration. 



The dangers^of the state upon which the world Is entering arq scarcely 

 less than those from which we have just escaped. The overthrow of 

 European governments. Inviting experiments with unsound principles of 

 government and inducing all kinds of emotional legislation, is likely to set 

 us apart as the most conservative power on earth, and in the measure 

 which we hold the lamp of our experience to guide the feet of those who 

 are groping through new and untried paths. Shall we deserve their love 

 and loyalty and confidence? 



We may assume that commerce will piny an important role in all of the 

 world readjustments, and It becomes imperative that in the peace terms 

 which presently will come under discussion, certain fundamental considera- 

 tions affecting commerce shall not be overlooked. Furthermore, in the coun- 

 sels which shall determine the international political and economic relations 

 of the future, American business, in common with like interests of other 

 nations, should be consulted in framing the peace conditions. 



The principle of economic boycott, often advanced as a punishment to 

 those nations guilty of disturbing the world's peace, is neither politically 

 nor economically sound, nor is the principle of "favored nation" in commer- 

 cial treaties. These would tend only to drive the nations farther apart 

 and increase the unrest in the industrial world. 



May not the United States lead here, also, in a declaration of principles 

 providing tor such adjustments as will ultimately assure a live and let live 

 policy for the whole world? 



Insofar as war contracts are concerned and the control of basic' materials 

 that entered largely into war production, the government must needs adopt 

 a liberal program with regard to the cancellation of orders, and a willing- 

 ness to retain possession of the materials owned and controlled, releasing 

 them only so fast as the market can readily absorb these commodities 

 without breaking prices to an unwarranted extent or stopping production 

 during the period required to digest government controlled stocks. 



The principle of price fixing is another problem that might have your 

 consideration, especially with respect to the desirability of having price 

 fixing machinery maintained temporarily in some form in the effort to 

 stabilize values, to provide against a too rapid price fluctuation seriously 

 affecting inventory values, which, in part at least, must underlie com- 

 mercial credit, and to cushion the recession which must follow a period 



of excessively high prices in a manner that will bring about a gradual 

 adjustment with as little loss and uncertainty as may reasonably be 

 expected in the return to normal conditions. 



An important problem of readjustment is the question of whether the 

 right to combine permitted in foreign trade under the Webb-Pomerene bill 

 should, by amendment of our trust legislation, be extended to domestic 

 operations. 



The period of reconstruction will be short or long, the operation gradual 

 and easy, or difficult and costly, in the measure that American business 

 will coordinate its forces, work in unity, and not only wisely choose its 

 representatives, but support them in their search for facts and back them 

 in their conclusions. 



Upon this conference rests the responsibility of determining what form 

 of organization and what central committee shall plan our policies and 

 make our declarations to those instrumentalities .which the government 

 itself may create to direct the return of the country to normal operations 

 and normal living. 



In the general sessions the main subjects under consideration 

 were: 



How can we secure cooperation in continuing the present shipping pro- 

 gram with the government for the securing of a merchant marine? 



What steps have been taken to take advantage of the Webb-Pomerene 

 Act, which allows combination for foreign trade? 



How to finance foreign credits. 



How to secure government cooperation in investigation with our allies 

 as to protection of industry during the reconstruction period. 



What suggestions can be made encouraging the stimulation ot public 

 work? 



What should the conservation division do on the subject of financial 

 profit? 



What method should be employed to liquidate or adjust obligations to 

 the government, or the government's obligations on a contract? 



Should the Capital Issues committee be continued? 



What legal method or means could be introduced to better stabilize prices 

 during the reconstruction period? 



What method should be employed to dispose of commodities in the 

 government's hands so that it would not injure or disturb the industry 

 and the ultimate consumer? 



When the demobilization of military forces takes place how can these 

 men he best forwarded to their past pursuits, and further, how closely 

 should the conference work for the government bodies in the study of 

 demobilization plans? 



These were answered in the resolutions printed in the general 

 report representing the consolidated opinion of the various related 

 groups, then through a resolutions committee of the major groups, 

 of which there were ten, and finally the resolutions are the result 

 of the work of the sub and general clearance committee, which was 

 the resolutions committee of the convention. 



A keynote of the convention was sounded by W. H. Manss, 

 director of the war service committee of the Chamber of Commerce 

 of the United States at a preliminary meeting on Monday. He said: 



The motives and purposes of this conference are to obtain the views 

 of our representatives of the nation's industries in order to mobilize the 

 forces ot industry for the salvation of the nation. They must be so broad 

 in their principles, conscientious in their conclusions and clear and force- 

 ful in their utterance, that they will be heard around the world. 



A letter to President Wilson by President Wheeler was read ask- 



