January 25, 1919 



HARDWOOD RECORD 



19 



By H. C. Hallam 



Much dissatisfaction prevails in the lumber trade regarding 

 prices and methods prevailing in the purchase of hardwood and 

 other materials by the railroad administration. Some of the points 

 made in the complaints have been laid before the officials'. In 

 answer it was stated that a plan is in formation by which the rail- 

 road administration will try to get in touch with all producing 

 factors whether they sell direct or through wholesale organizations, 

 not overlooking any one, and to obtain better cooperation between 

 producers, wholesalers and railroad purchasing forces. Lists of 

 hardwood mills on various roads are being compiled together with 

 the methods by which the mills make their sales, and the capacity 

 of the mills. 



It is contemplated that when this information is complete that 

 a plan can be worked out whereby individual roads can send out 

 their bid requests and make purchase direct without reference to 

 the purchasing committee; each purchasing agent having in hand 

 information which vrill give him a good mailing list, an idea of 

 the producing territories, and the best sources of supply, particu- 

 larly keeping out of the hands of brokers. It is not felt, however, 

 that this action can be put in force until uniformity of specifica- 

 tions and grading rules is properly established. 



There has been criticism of methods of purchase which have 

 necessitated too much red tape and have vastly increased the cost 

 of doing business with the railroads, but officials of the railroad 

 administration say they do not see where there should be any 

 necessity for increased cost in doing business with the railroads. 



From the manufacturers' standpoint, it is claimed in Washing' 

 ton, the administration system is better than the old system, because 

 the manufacturer can sell to one road for all roads and does not 

 have to rely on the brokers. 



The practice has been for the order for railroad material to 

 come from the railroad line on which the material originates for 

 other lines, although the payment comes from the final user. Hard- 

 wood men say that this requires a good deal of time in selling and 

 necessitates the selling to two or three people rather than one as 

 formerly. 



As to this, it is stated at the railroad administration that if the 

 lumberman understands the system he need not sell to or see several 

 people, but only one. If he does not understand the system, or if he 

 wishes to try to disregard it, he might approach purchasing agents 

 for several lines, only to be told that he should go to the line on 

 which his material originates in order to dispose of it. This method 

 on the part of the lumberman, it is said, might increase his selling 

 expenses. 



Lumber Representative 



Louis Germain of Pittsburgh, president of the wholesalers' 



bureau, has been suggested for appointment on the national com- 

 mittee of the United States Chamber of Commerce as representa- 

 tive of the wood and wood products industries of America. J. H. 

 Kirby, president of The National Lumber Manufacturers' Associa- 

 tion, has also been nominated for this appointment, which is to be 

 made by Harry A. Wheeler, president of the national chamber. 



The committee, which will contain twelve members representing 

 the twelve basic industries or groups of industries in America, 

 may go to Paris to offer its advice on industrial and reconstruction 

 problems to members of the peace conference. Whether this is 

 done or whether he is apjioiuted to the committee, it is understood 

 that Mr. Germain is contemplating a trip to Paris to represent the 

 wholesalers' bureau and the distributing business of the country 

 as a whole, to gather and give information 'regarding American 

 business problems, especially as to the lumber and distributing 

 businesses, and to see about firospects for American lumber in 

 foreign markets. 



In that connection it is reported that the export sales corpora- 

 tion of the wholesalers' bureau may handle other things besides 

 lumber in its foreign trade. 



The Surplus Lumber Stocks 



Capt. G. M. Chambers, XJ. S. A., resigned, who has gone with the 

 Kendall Lumber Company, Newark, N. J., is reported to have been 

 selected to take charge of the distribution of surplus lumber stocks 

 belonging to the war department. 



A conference is scheduled for Washington during the week of 

 January 20 to get reports from representatives of various branches 

 of the lumber industry, including leading trade associations, on the 

 uniform plan for the disposal of surplus stocks of building mate- 

 rials in the possession of the government that was unanimously 

 agreed to at a joint conference January 8. 



The surplus government stock of building materials is stated 

 to be small, except in the case of lumber. It is further stated that 

 representatives of the building materials industries are pleased 

 with the manner in which the government is arranging for the dis- 

 posal of this material. 



It is reported that there are some 18,000,000 feet of airplane 

 lumber on hand for the government at airplane factories and else- 

 where. This stuff has been cut of special quality and in special 

 sizes and can not be utilized by the trade, it is said, and the opinion 

 is expressed that the best thing for the government to do is to 

 handle it direct. The opinion is further expressed that if the 

 government could utilize or sell to the allied countries or to com- 

 mercial aircraft builders half of the aircraft material or even less 

 at something like the cost of the same, which ranged as high as 

 from $100 to $600 per 1000 feet, that it could afford to burn up 

 or give away the balance of the surplus stock. If the trade were 

 to take the whole stock of aircraft stuff, it is estimated that it 

 could not afford to give more than $15 per 1000 for it. 



It develops that the navy as well as the emergency fleet corpora- 

 tion will have no surplus lumber to dispose of. 



In connection with plans for handling surplus government lum- 

 ber, it is pointed out that lumber manufacturers, who have been 

 expected to take over this stuff and distribute it, labor under a 

 grave difficulty because they have no complete information as to 

 the kind, grade, quantity and location of it. This information will 

 not be at hand in full inventories of government stocks before 

 February 1, according to the present understanding. Yet some 

 officials expect the manufacturers' representatives to offer prices 

 for the surplus stocks. If the manufacturers' agencies do this at 

 this time the national wholesale lumber bureau will do likewise, 

 it is said, although in the dark as to what the government stocks are. 



The United States Housing Corporation is planning to open an 

 office at Thirty-fourth street and Eighth avenue. New York City, 

 in charge of P. R. Iseman, to dispose of surplus furniture and fur- 

 nishings not now required by the government as a result of aban- 

 donment of part of the housing program. Samples of the stuff will 

 be on exhibition there and sales will be made chiefly to jobbers, 

 dealers and contractors. Half a million dollars' worth of stuff, 

 chiefly bedroom furniture, is to be sold, but also including furnish- 

 ings of various kinds. D. M. Kelly, old-time furniture man, will 

 travel around the country and assist in the sale of the surplus 

 furniture. 



Of special interest to the woodworking industries is the action of 

 the house in passing the Dent bill to validate $3,000,000,000 worth 

 of informal war contracts of the government. Industrial firms can 

 now go ahead without bankruptcy, which threatened many of them 

 that had their resources tied up in materials and partly or wholly 

 finished products for the government under informal contracts. 



