HARDWOOD RECORD 



27 



too. iissist materially, and many times these small clues reveal a situa- 

 tion that needs watching, or which can be helped by your cooperallon. 



The Collection Department 

 Wo started the year with claims on hand araountlni,' to ?2t;o,ouO : 

 n. w claims amounting to ?272,000 were received ; settled and adjusted 

 saOO.OOO. leaving In course of settlement $233,000 ; $5,000 In fees were 

 lurned over to the treasurer, a gain of $200 over last year and $S00 

 over the previous year. 



This department Is growing in the estimation of members and the in- 

 roasid patronage through claims received is an added credit force which 

 arrles much more weight than the Increase in i/arnings Indicates. The 

 twofold purpose of the collection deivirtment places It on an entirely 

 dilTerent liasis than the ordinary collection agency. When you send an 

 account to us, you know that all the prestige of the association will bu 

 brought to bear to help you get your money, nnd you also Isnow that 

 your experience will add to the general fund of otlicr or previous trans- 

 actions and assist some other subscriber in a similar situation, and when 

 he sends us an account, .vou reap the reciprocal benefit. 



No man's judgment is intallible. and If you lind an account reaches 

 the point where it requires action, we believe the bureau offers the best 

 possible facilities for collection. Numerous instances could be specified 

 where the association obtained results when others failed to do so. and 

 this is not accomplished because of any particular trick or system, but 

 for the simple reason that our demands for payment are backed by an 

 organization prestige whicii the unscrupulous debtor fears, and knows 

 he must respect if he would continue in business. 



Our business is eagerly sought for by leading attorneys everywhere 

 and we are proud of the personal relations thus established as a means 

 of facilitating the handling of your collection and legal business. We 

 have had to fight attorneys who unscrupulously wanted bankruptcy 

 just because trouble was brewing, but we can point to instances where 

 we were instrumental in getting creditors together and obtaining far 

 better results, besides saving a well established business. 



The collection department has so firmly established itself as being not 

 only an agency for collecting accounts but as an important adjunct of 

 the co-operative spirit of the bureau of information, that it well merits 

 your fullest support. It broadens the opportunity for specializing in 

 lumber cre<llts and promptly places the bureau in possession of facts 

 wltich might otlierwise be difficult to obtain. 



No lumberman working alone can grasp every detail necessary to the 

 proper conduct of his business, and especially as a credit man. is he 

 dependent upon his fellow lumbermen for the help and co-operation he 

 can obtain through this organization. The bureau of information is 

 one big business where each subscriber gives some of his time to help 

 the other subscribers. He does this because he knows in this way each 

 -aps the benefit of the other's experience and the bureau is what it is 

 I, ay because of this effective co-operation. The joint effort of the sub- 

 - ribers devoting their thought and time to keeping the bureau informed, 

 and in furnishing facts which a lumberman wants in determining credit. 

 Is the force that places the bureau at the top of lumber credit reporting 

 agencies. 



The report of the arbitration committee was presented by Cliair- 

 man G. M. Stevens, Jr., of New York, who said that serious trouble 

 did not present itself last year. Three cases were referred to the 

 committee and settled. He said that there were fully one hundred 

 oases given consideration at the association headquarters that should 

 have been arbitrated and that the bulk of these were disputed ac- 

 counts between members and retailers, where both parties had ex- 

 pressed themselves as being willing to submit facts and be guided 

 by suggestions through the home office. He said that in these cases 

 the contesting parties had been well satisfied with the adjustments. 

 Mr. Stevens said that in addition to the three cases submitted to 

 the committee, two cases were passed upon by the chairman himself 

 without the opinion of the rest of the committee. He suggested that 

 the members pay more attention to building up the files completely, 

 as this is a very necessary part of arbitration work and materially 

 assists the arbitration committee in handling these disputes. 



The speaker also said that the committee urges the members to 

 refer differences to the association for adjustment instead of resort- 

 ing to the courts, as he believes that results in nine cases out of ten 

 are more satisfactory. 



The morning session was closed by the olTicial report of the trade 

 relations committee delivered by W. E. Litchfiehl, clutirman. This 

 report follows in part: 



Report of Committee of Trades Relations 

 .No association can dispense healthy ti'ar|.> ccnirliiioiis. but wc imiiit wiiii 

 pride to our excellent organization and facilities for gaining and giving 

 linowlodge, through our reporting department. It Is a help to the lumber 

 tl'Cde to have all firms doing business rightly reported as such, and in turn, 

 for all of us to be informed of firms whose conduct of business mnv tend 



to uudcTiuinf and Injure the structure of healthy business activity which 

 we all are working to sustain. We have all witnessed the success of more 

 than one firm who has demanded and extended promptness In its relations 

 with others. 



Our trade is suffering, with all lines in the country, from the tremendous 

 liquidation wc arc passing through. The overhead expi'nsc of many firms 

 i> eating into their surpluses, and in many cases lumber Is belug made and 

 sold at prices which admit of no profit, a proceeding which is, if It is 

 ai.ytlilng, a disgrace to business enterprise and intelligence. The ambition 

 of some of our larger institutions to indefinitely increase their output has 

 brought some disasters. One northwestern lumber magnate confessed 

 that he was trying to run three mills where two would produce all the 

 lumber he h;:d been able to sell. Overproduction and uncalled for develop- 

 ment of all kinds have been carried to such a degree that groat demands 

 have been made and banks have given unusual loans. There is a shortage 

 of money the world over and we cannot hope for better conditions, until 

 (in a sound manner) credit takes the place of cash. I was made somewhat 

 atquainted with the system of Germany in a trip to that country in 1911. 

 A German merchant said to me that he would be glad to do more business 

 with us, but the present American demand of eighty per cent cash with the 

 bills of lading was not reasonable, and we should not expect German busi- 

 ness until we were willing to extend them the same credit that other 

 countries did, that is, a ninety-day basis in buying and selling. He said 

 the average (ierman took pride in paying as he agreed and in every way 

 encouraged his fellow merchant to maintain credit. Credit is a necessary 

 part of the foundation of all business, and few successful men there are 

 who at some time in their career have not needed it. Every member of 

 our association should assist in keeping up to the highest degree of efliciency 

 our credit department. If your statement is asked for record, send it in. 



After touching on the lien laws as affecting the business relations 

 of retailers and speculative builders, the report continued as follows: 

 It lias been thought that the lumbermen ought to appear in the five per 

 cent rate case by going before the Attorney General or Congress to urge 

 the appointment of some commission who could be consiilted for the purpose 

 of determining how far men might go in the matter of joint action for the 

 general good, for purposes of conservation, such as (for example) fostering 

 the idea of curtailing the product for the object of encouraging the manu- 

 facture of the longer trees and including the top-logs ; also that there 

 might he some arrangement in logging to leave the small trees standing. 

 While it is true that we should appreciate what the government is trying 

 to do, we in turn should be guided as to bow we may confer together for 

 economic and beneficial improvements of conditions. A mutual knowledge 

 of facts in our industry would save a tremendous waste of timber by cur- 

 tailing the production when necessary and sparing the great volume of 

 deterioration of stock and sacrifice of valuable efforts. A great many small 

 manufacturers are suffering at the present time because of inadequate 

 knowledge of market conditions led to production of uncalled for stocks 

 ai.d this lumber is being forced on the market at a great loss to manu- 

 facturer, as well as the consumers who made their purchases at fair 

 market values. 



It would seem also that a greater latitude should be allowed along the 

 line of supporting trade ethics, wliereby ever.v merchant b.v his methods 

 and conduct would automatically classify himself, and such as averaged 

 ui; adversely be distinguished to the extent of being obliged to correct and 

 adjust his business to proper standards. This would be a constructive 

 action and yet we are afraid of overstepping a law which we do not 

 understand. 



The report then outlined a plan for working out these suggestions, 

 and then said: 



The administration of some phases of the lumber business is carried 

 0:1 with only a partial improvement over what it was fifty years ago; in 

 fact, in some sections and some lines there has been no change. This has 

 resulted in stacking lumber from habit instead of accurate facts and pros- 

 pects. It seems to me that under the auspices of our organization a 

 monthly bulletin could be sent to our own meinliers and the secretaries 

 of similar organizations, in which significant and important reports could 

 be placed in the hands of those who need them. 



The lumber business, like all others, is in a state of transition. Organiza- 

 tion is simply an element of business : its tendency is not to take the place 

 of Individual effort, but to protect the fruits of such effort. Co-operation 

 dtes not offer anything in the way of artificial props, but simply insures 

 harmony among factors related to each other, whether in close proximity 

 or not. Association has the function of encouraging individual effort and 

 not discouraging it. and it is especially needful in this period of adjust- 

 ment that each one look well to bis own affairs and os far as possible 

 incri'asc his own independence and thus make himself a dependable support 

 to the new strticture which wc are inevitably forming. 



WEDNESDAY AFTERNOON SESSION 



Immediately ;iftcr the roadjounimcut of the afternoon session. 

 President Walcott announced the appointing of committees on nomi- 

 nations and resolutions. K. V. Btibcock of Pittsburgh was appointed 

 chairman of the nominating committee and Lewis Dill of Baltimore 

 chairman of the resolutions committee. 



There then followed a discussion of the proposed five per cent 



