20 



HARDWOOD RECORD 



December 25, 1918 



or trade extension budgets has been marvelous, but we have only scratched 

 the surface of our possibilities. During this past year we have not only 

 advertised to the consumer, but we have advertised to those in our own 

 Industry who have not become as yet fully convinced thiit trade extension 

 is a vital aid to salesmanship. It is most difficult to trace the results of 

 any advertising campaign, but such maximum results have been shown 

 during the past year that a chart has actually been made showing some 

 of the concrete results which have been obtained. 



Never again will opportunity come to increase the use and prestige of 

 hardwood lumber in as great a degree as during this period of recon- 

 struction that Is before us. There Is every indication that the demand 

 for steel products, our principal competitor, will be greater than the 

 ability of the producers to supply, and there will consequently be many 

 avenufs of use opened to us which, if intelligently developed, will create 

 a permanent outlet for our product even after the steel situation has 

 leveled itself to a normal basis again. 



While we have heretofore been content to tai;e care of the development 

 of demand in domestic mariiet, we absolutely must recognize that this 

 country has now become the source of supply for the entire world in the 

 matter of hardwood lumber and we must give very considerable attention 

 to the developments of the export market. 



Artificial conditions during the past eighteen months have contributed 

 to create and maintain a strong demand for hardwoods, but we must 

 not forget that right around the corner iurlts our competitor, substitute, 

 with a big stuffed club labeled "'advertising" ready to knock us silly if 

 we are not prepared with a similar weapon to retaliate and maintain our 

 ground. My own feeling is that we should not play second fiddle to 

 cypress, but it Is probably impossible to prevail on you to spend fifty 

 cents per thousand feet of .your production to insure such increased mar- 

 ket as will enable the present price levels of gum and oak to be main- 

 tained. There is no question but that such an expenditure would more 

 nearly bring about that condition than any other method which could be 

 devised, but if we are not willing to pass abruptly from the creeping to 

 the running stage, let us at least get up on our hind legs and walk. 



A careful review of the situation, and analysis of what it Is necessary 

 to do, calls for a budget for gum of $50,000 and for oak of twice that 

 sum. Figuring on last year's cuts, this would mean assessments of 

 approximately 121/2 cents on gum and 33% cents on oak as maximum 

 amounts, but with the very much Increased membership, that is going 

 to result from the plans consummated at this meeting, these sums will un- 

 doubtedly be cut down considerably and the oak assessmeut especially 

 can probably be put at a much less figure and still bring about the result 

 desired. There is not a member of this association who would not gladly 

 pay on tlie above basis for assurance tliat the lumber he produces during 

 1919 will not tumble off the high perch it now occupies and who believes 

 that without constant repetition of the demand "use wood," the market 

 will not weaken appreciably enough to effect values several dollars per 

 thousand feet. Therefore, this proposed trade extension fund should be 

 considered absolutely in the light of price iusurance. 



As for the proper u.se of any sum allotted for advertising, I feel that 

 the past performances of our department managers for gum and oak 

 absolutely Insures that every dollar will be wisely and economically 

 spent. 



This meeting Is destined to go down in lumber history as the most 

 eventful one ever held and I do hope that it will also be marked as the 

 turning point where we lumbermen cast off our old theories and prejudices 



about advertising being a gift or an expense and consider it instead as a 

 proper and legitimate Item of investment. 



Feeling that the statements I have made merely reflect the individual 

 feelings of the members present I desire to conclude this report at this 

 stage and offer the following resolutions : 



Whereas, This association is founded on the broad principle that in 

 order to create stable and satisfactory conditions in the Industry, it is 

 necessary' to enlarge the demand for its products by legitimate means so 

 that the supply shall not exceed the demand, and 



Wheheas, This purpose has been accomplished In the past by means 

 of advertising and exploiting the products of the industry to the general 

 public in a manner which has greatly stimulated consumption, and 



Whereas, It has I>ecomo apparent that unless much greater efforts are 

 mode in the future than in the past to hold the prestige already acquired 

 for wood, and increase it, the substitutes will encroach on our market to 

 uur great detriment ; therefore, be It 



HcsoJuciI, That the membership of this association recognize fully the 

 needs of a vigorous trade extension campaign on oak and gum and to 

 this end will pledge itself to raise a trade extension fund of $50,000 for 

 gum and $100,000 for oak to be realized by assessment of each member 

 at the rate of not over 12% cents per thousand feet of his gum cut, and 

 331/3 cents per thousand feet of his oak cut for the year 1918. Said 

 assessment to l3e levied and collected in the same manner as heretofore 

 and the expenditure of these funds to be made under the direction of the 

 executive committee of the association in such manner as to accomplish 

 all the recommendations sot out in the reports of the chairman of the 

 onk and gum division. 



The resolution embodied in the report was referred to the resolu- 

 tions committee. 



Report of Assessment Committee 



J. W. McClure, chairman of the assessment committee, said that 

 tliere had been very little workj as the co-operation of the member- 

 sliip had been so general. The general assoeiation work was based 

 on an assessment of 1,110,128,101 feet, gum and oak being based on 

 amounts formerly given. This gave revenues of $.30,806. 29. for the 

 general fund; $11,607.83 for oak, and $22,113.72 for gum, a total of 

 $64,527.84 for total work carried on. 



Mr. MeClure went on to elaborate on the method of assessment 

 .iiiil sliowed the ease witli which it worked. 



Report of Membership Committee 



In the absence of W. A. Ransom, Assistant secretary J. T. Kendall 

 read the report of the membership committee, which showed that 

 including eighty-five members brought in through the amalgamation 

 with the Hardwood Manufacturers' Assoeiation, the total Class A 

 membership was 273. This is offset by the loss of seven, giving a 

 net total of 266. The veneer department gives a membership of 

 twenty two, making a total of 2SS. 



Report on Statistics 



M. B. Cooper then reported for the committee on reports and sta- 

 tistics. He told of a conference with the secretary at which the 



E. A. LANG, CHAIE.MAN FOR OAK 



V. I'lilTCHAED, EE-ELECTED SECRE- 

 TAEY-MANAGEE 



C. L. HARRISON, CHAIRMAN ADVERTISING 

 COMMITTEE 



