Decenilii'i- 2"!, IrtlS 



HARDWOOD RECORD 



23 



Submit Resolutions on Grading Rules 



M. B. Cooper submitted ;i ropoit uu tho meeting of the boards of 

 directors whereby tlie amalgamation of the two associations was 

 liniught aljout. In order to bring to a liead the eagerl3' awaited 

 question of grading rules, Mr. Cooper closed liis report with the 

 resolution that the association formulate and administrate its own 

 rides and take proper steps to that end. 



John W. McClure then moved that the organization form itself 

 into a committee of the whole in order to handle this question and 

 that final action be referred to the Wednesday session following 

 the report of tlie resolutions committee. E. L. Jurden was then 

 made chairman of the committee of the whole and the discussion 

 began. 



The first speaker was Fred Arne of Chattanooga, Tenn., who in 

 a resolution recommended the adoption of the National Hardwood 

 Lumber Association rules and that a committee of five be appointed 

 to provide inspection service. He said that the greatest objection 

 to the National rules was in their application and that by adopting 

 the National rules and appl.ying them themselves the eifect would 

 be exactly as desired. 



R. M. Carrier favored the association having its own rules and 

 administering them, maintaining that it was time that the manu- 

 facturers ran their own business. 



Albert Deutsch, Houston, Tex., said there is dissatisfaction in 

 the Southwest with National rules auil tliat the manufacturers as 

 they are now brought together in an amalgamated association should 

 not ask the consent of an\- other organization, but should take the 

 old manufacturers' rules, have the inspection committee perfect 

 them and continue improvement in the cause of the manufacturers 

 and the user. 



B. F. Dulweber said that the very foumlation of tlie manufac- 

 turers association is inspection which represents a basis of values 

 and asked where they could get anywhere without establishing such 

 a basis. He said the greatest question is who should make the 

 rules — the manufacturer or the middleman, that the trade got 

 started wrong on the rules question and has never gotten straight- 

 ened out. He maintained that all rules applied up to now were 

 based on no logical reason but just hapijened, that this is due to the 

 original conditions when the furniture manufacturer as a rule pro- 

 duced a varied line and needed a variety of cuttings. He therefore 

 bought log run on grade, the grades being merely to determine the 

 value of the whole product. Conditions, according to Mr. Dulweber, 

 are now different. There are new uses, more specialized woodwork- 

 ing lines and lumber must now be graded to meet the buyer's needs. 

 Mr. Dulweber said that if the manufacturers endeavored to put 

 lumber onto the user under rules making for excessive waste, the 

 loss must go back on the producer. Therefore it is up to the manu- 

 facturer to handle this question on a more scientific basis. Formu- 

 lation of such rules worked out in consultation with the users will 

 require time, and in the meantime the manufacturers should ap- 

 point a committee for such work and adopt a temporary basis to 

 proceed upon. 



E. A. Lang said that the American association was organized for 

 special functions, one of which is to arrive at production costs, 

 which are directly dependent upon inspection rules. He asked, "Are 

 we going to perform all of these other functions and leave that of 

 rules to another association?" 



Mr. Lieberman of Nashville stated that he had been forty-eight 

 years in the hardwood business and said that he sells only on manu- 

 facturers' rules and that his business is probably as big as that of 

 any other concern in the same class. 



P. E. Gilbert maintained that the manufacturers should make the 

 rules but the buyers should have a voice in the matter. 



M. W. Stark said that the manufacturers should adopt their own 

 rules and should work out their own definition and application so 

 that the buyer will get what he needs and that decrease in quality 

 may be taken into consideration. Mr. Stark's ideas were embodied 

 in a resolution which turned out to be the final resolution as adopted 

 at this session and shown in this report. 



.John W. McClure said that the rules discussion involves two 



opposed theories: One, that manufacturers only havo a right to 

 make rules; two, that the wholesalers should have a voice in their 

 formulation. Inspection rules, according to Mr. McClure, merely 

 express customs and requirements and did not lead into new chan- 

 nels. Both former sets of rules have gotten so close together that 

 they are now practically the same. He maintained that the trade 

 should not think that rules would give direction to business but 

 rather should realize that trade needs must shape rules. .Vocording 

 to Mr. McClure, the average consumer is usually not iu position to 

 definitely state his ideas of what grading rules should be. The 

 National association watches his interest by letting the wholesaler 

 speak in the consumer's behalf. This, according to Mr. M,cClure, 

 he is able to do because of his close contact with the consumer. 

 The wholesaler then should be considered to the extent that he 

 express the consumer's needs better than the manufacturer who 

 operates at a long distance. Mr. McClure maintained that the 

 actual facts and figures show which of the two above named theories 

 has worked out in the most practical manner. He then sulnuitted 

 a resolution which was in turn submitted to the resolutions com- 

 mittee to the effect that the American Hardwood Manufacturers' 

 Association adhere to its former principW of keeping entirely away 

 from rules and carrj-ing on only the other administrative work. 



Wednesday's Session 



Wednesd.ay 's session was featured by three events — an address 

 by General L. G. Boyle, Kansas City, which was followed by further 

 discussion of graxliug rules and the adoption of the majority reso- 

 lution and later l)y the election of officers. 



Gen. Boyle stated that he wanted merely to counsel with the 

 association members and stated that the situation existing at present 

 is distinctly up to the manufacturers. He said they should not 

 cpiarrel about matters in which all are equally interested. 



Gen. Boyle said that other lumber groups have solved problems 

 by getting together and no group needs co-operation more than do 

 the hardwood manufacturers. 



Gen. Boyle spoke emphatically on the evil of the present Sherman 

 law, saying that the collective attention of all industries should be 

 focused upon regulation of that act. He gave a brief review of its 

 formulation, bearing particularly on the difference between the 

 business man 's attitude now and then. He maintained that the 

 spirit of the times demands a more humane contact between men 

 and that selfishness is no longer the governing factor iu business. 

 Hence, as the Sherman law was enacted theoretically to govern 

 selfish motives, it should be either cancelled or re-enacted iu differ- 

 ent form. 



With the war now over, there will be a tendency to return to 

 normal times and business men will be able to give more thought 

 to business, but, according to Gen. Boyle, this legislation is still in 

 effect and business men should not feel that because they were al- 

 lowed to combine under war conditions, they can do so under peace 

 conditions without violating the law. The only way is to remedy 

 the law. 



He then referred to the able discussion and resolution on this 

 question before the reconstruction congress at Atlantic City. He 

 said the matter will be put before Congress and backed by facta 

 taken from the survey of all industries. He said all other lumber 

 groups are now planning so that the facts surrounding their business 

 may be incorporated in this appeal and that the hardwood producers 

 are unable to give this co-operation now because there is no one big 

 organization. 



Gen. Boyle commented on the question of taxation. He said that 

 business men should not be too free with their criticism of Con- 

 gress until they are in position to help Washington in this matter. 

 In this connection the particular feature of the sawmill business is 

 that the sawmill represents nothing but junk when the timber is cut 

 and that the present tax bill did not allow of a sinking fund to 

 take care of depreciation. He maintained that we will have years 

 of high taxes, which alone is sufficient reason for getting together 

 in proper organization. 



Gen. Boyle maintained that in his opinion labor will remain high 



