February 10, 1919 



HARDWOOD RECORD 



31 



(ContinUi'iJ from ptn/c 22) 

 according to Mr. McCullougli, the inquiry for bireli literature 

 increased about 100 per cent, while the increase in inquiries for 

 literature bearing ou hemlock showed an increase of o\'er SOU jier 

 cent over any preceding month. 



In the afternoon session the report of lleorge E. Foster was read 

 by Secretary Swan, showing a strong financial condition. The 

 only other formal report was that of W. H. McDonald, chief 

 inspector. 



The bulk of the afternoon was given over to addresses by Ucan 

 Russell, College of Agriculture of the University of Wisconsin, and 

 George H. Holt of Chicago. Dean Russell's talk covered the ques- 

 tion of close association between the cut-over land problems and 

 the question of taking care of soldiers as they return from France. 



Mr. Holt's talk dealt with the problems manufacturers in all 

 lines must face and solve in connection with the gradual movement 

 back to a peace basis. 



Dean Russell's talk was a practical analysis of the general ques- 

 tion of the development of cut-over regions in the North. He 

 expressed himself as earnestly opposed to the theoretical plans that 

 are being develojied at Washington involving a more or less char- 

 itable distribution of cut-over lands for returning soldiers and 

 advocating the making of such lands available to these men on a 

 long-payment plan. 



Dean Russell expressed himself as believing that one of the 

 reasons for impractical theories being advanced at Washington is 

 the fact that the men in charge have had experience only with the 

 reclaimed arid areas of the West, and really have no conception 

 of the remarkable value and quick-result-producing jiossibilities of 

 cut-over timbered areas. 



The Thursday session was concluded with the appointment of a 

 committee to collaborate with members of the Michigan Hardwood 

 Manufacturers' Association who are supporting the plan for sending 

 a representative abroad to investigate the possibilities of the foreign 

 markets. 



The usual pleasing banquet was tendered by the association to 

 its membership and guests on Thursday evening in one of the 

 private hotel dining rooms. It was very well attended, and while 

 brief, went off very successfully. The banquet broke up shortly 

 before 8 o'clock to enable the members to attend various local 

 theaters. 



Friday's Session 



M. J. Fox of Iron Mountain, Mich., opened the Friday morning's 

 session, telling of the trip he took with J. A. Moore of Fond du Lac, 

 as delegate to the recent meeting of the Chamber of Commerce of 

 the United States at Atlantic City. Mr. Fox brietly reviewed the 

 spirit and purpose of that memorable conference. 



He was followed by M. P. McCullough, who discussed the ques- 

 tion of market values for certain specialized products for the pro- 

 curement of which the government had called upon the northern 

 operators. He particularly referred to pric?s on the selected logs 

 the government had intendeil taking for the manufacture of air- 

 plane veneers. 



J. T. Phillips of Green Bay talked on the work of the committee 

 appointed for the accomplishment of prohibition in Wisconsin, and 

 was followed by A. L. Osborne, chairman of the transportation 

 committee, who gave an exhaustive analysis of the whole trans- 

 portation situation, particularly emphasizing the desirability of 

 returning the roads to private ownership. 



Market Conditions Report 



The opening event of the Friday afternoon session was the report 

 of the market conditions fommittee, which had been anticipated as 

 one of the most important features of the meeting. This was pre- 

 sented by H. H. Butts, chairman. Mr. Butts, by the way, now 

 retires from that chairmanship, as he has given two full years of 

 extreme usefulness and valuable service in that capacity and 

 declines the honor for a longer period. He is succeeded by Alfred 

 Klass of Oconto, Wis. 



Mr. Butts' report was given as follows: 



In assuming the responsibility of backing your government up in offer- 



ing all of your material — in fact, all of your resources — as a means to 

 the successful conclusion of any constructive pnisram they might inaugu- 

 rate it was as simply u unit of a vast collective bmly of InmbcrnuMi (hniugb 

 out the country any one part of which, failing in the tlemanil npun il. cuulil 

 easily shift the burden to sucb organization as could and did. and I believe 

 statistics will show that in no case was the industry as a whole found 

 wanting. Therefore it is now only natural for us to c.\pect, following the 

 old adage that self-preservation is the lirst law of nature, that we turn 

 our thoughts to the rehabilitation of our own individual interests, and as 

 members of this association our interest, naturally common, must work 

 collectively to that end. 



Government rnici:s .\nd Puodi'ctio.n Costs 



This annual meeting, as has been the custom heretofore, was no doubt 

 called that we might review any possible shortcomings in the past, feel our 

 pulse of the present and prescribe for the future, and, while the function 

 of your various committees is presumed to be utilized to one common end, 

 the lietterment of the industry, after all, the main object of our combined 

 efforts, is realization, and particularly is this the goal of yunr comniittee 

 on statistics. 



Let us review briefly, if you please, the status of our business covering a 

 period from the date of our last annual association meeting up to the 

 present one. Something like a year ago our members were called upon 

 for a revision of prices to the government. A schedule was worked out at 

 that time consistent, we thought, with the co.st of production and which 

 lias been followed very closely up to the present time not only to the 

 government but to the comnn-rcial consumption as well ; and while if we 

 were to have followed the custom of other lines of industry working on 

 government contracts on a percentage basis we would have been permitted 

 to increase our prices according to the increased costs of production we 

 stand today practically in the same position that we were at that time, 

 and^et I believe that the most conservative of you will readily admit that 

 our costs have materially increased since then. Take your woods' opera- 

 tions alone, which is a very large percentage of your production, and they 

 have advanced from 40 to 50 per cent, and yet I say we are realizing 

 I)ractically no more for our products than we did a year ago, the govern- 

 ment in a way having established our markets, the same markets naturally 

 followed with other consumption. 



I presume nmst of you are through with your annual inventories, have 

 balanced your books and are at this very moment carrying around in your 

 inside pockets balance sheets of a very satisfactory nature, but I'll gamble 

 there are not 5 per cent of them that actually represent last year's busi- 

 ness but. on the other hand, the large majority of them showing possibly 

 surplus and profits, due to the fact that you have reduced your stocks 

 materially from a year ago, which were produced at considerably under 

 the present costs of production. Whereas, if you were to figure your busi- 

 ness for the year on a basis of what it would actually have cost you to 

 replace your products as against your returns a decidedly diflterent con- 

 dition Avould he reflected. 



True, this would all work out satisfactorily in the end if we were 

 operating continually on a rising market, or with the average business 

 that can replenish its stocks from time to time according to the trend of 

 the market; but what business is there outside of yours that has to begin 

 stocking up so far in advance of the demands of it, carry the .stock indefi- 

 nitely, suffer depreciation and trust to God for a fair return, when it is in 

 shape to dispose of? When you start to produce, as a rule you have got 

 to keep on producing, whether costs advance or not, and I ask how many 

 turnovers do you have in your business in a year that might enable you * 

 to wash off the slate of a few months of possible depression, and more 

 than recover, with the possibility of etiualizing the situation, in the lower 

 costs of raw materials? Your source of supply was purchased five, ten, 

 twenty and thirty years ago and represents cash and the almighty dollar 

 very seldom goes below par. 



Coming Trade 



A prominent nuinufacturer states, "The demand tor lumber will be 

 abnormal and at attractive prices." A wholesaler states, "We have 

 many reasons for expecting a large volume of business during the 

 coming year and at good prices." A conservative retailer states, "In 

 my opinion, the, prevailing prices on lumber can not and should not be 

 reduced," and yet there is an appalling number of our members today who 

 seem to be trying in every way conceivable to make these prognostications 

 fail to materialize. At any event, they are an actual menace to the indus- 

 try and personally I should like to see them liquidate and go into the rag 

 business : they'll find that "picking up" continuously, whether they want it 

 to or not. 



Some Merchandi.sing Pointers 



This brings ine to a recollection of a printed leaflet I found on my desk 

 one morning. Its author I do not know, or the source of its circulation. 

 Theboss may have passed it on to me for careful thought and reflection, 

 after being handed some advance cost figures ; In any event there were 

 some pretty terse statements contained therein and they are worth 

 repeating ■: 



"Selling goods without profit Is injurious to manufacturer, jobber, retailer 

 and consumer." 



"It destroys reputation, depreciates quality and leaves ruin and demor- 

 alization in its path." 



