22 



HARDWOOD RECORD 



January 25, 1922 



that the association is indulging in no activities which should cause 

 them to feel embarrassment over the decision and that the activities 

 will continue until such time as the association may be advised to 

 the contrary. "There is nothing developing out of this decision," 

 he said, "that should cause the members of this association to think 

 that it is going to be broken up." 



The association has met at a critical juncture in its history, Mr. 

 Swan continued, but this crisis does not grow out of the decision 

 in the Hardwood Case. He then explained that the time is critical 

 because it marks the completion of their trade promotion campaigns 

 and the time for deciding on the financing of new campaigns. 



When this question was taken up later the discussion was opened 

 by M. P. McCullough, chairman of the bureau of promotion, who 

 read his annual report of trade promotion activities. He reported 

 the success of the hemlock advertising campaign in the Lake States 

 and of the "Beautiful Birch" campaign throughout the nation. 

 As a result of the several 3'ears of hemlock publicity this wood is 

 "much better known and has a higher standing than it had five 

 years ago," he said. The publicity has made it easier to meet the 

 strong competition offered by fir and southern pine and enabled 

 hemlock to "meet this competition on a basis of a comparison of 

 actual quality and usefulness without so 

 many of the old underlying ideas of preju- 

 dice which had so frequently to be met. 

 And he continued: 



"There is no question but that the slogan 

 'Beautiful Birch' repeated in our advertising 

 two million times per month backed up by 

 the statements explaining the hardness, 

 beauty and adaptability of this wood have 

 given Birch a standing and have created a 

 demand which would not have otherwise 

 existed. 



"During our two best years we had about 

 $25,000 available for Hemlock advertising 

 and almost an equal amount for the Birch 

 advertising. A year ago your committee 

 was faced with a proposition of a greatly 

 reduced income. It was then necessary to 

 decide whether we should cut down the list 

 of publications used so that the work might 

 continue on a reduced scale throughout 1921 

 or to continue the large program of 1920 

 during the first half of last year. Your com- 

 mittee felt that it would be much better to 

 use all the magazines then on our list during 

 the Winter and Spring months, when', our experience shows, peoijlc 

 are most eagerly reading and studying about building problems, 

 and to discontinue the work during the Summer, with the idea that 

 if business improved and it appeared thai our available funds would 

 be increased we would then take up the advertising again in the 

 Fall and Winter. 



"As you know, lumber shipments did not improve during the last 

 half of the past year to an extent justifying the further expendi- 

 tures. The total cost of Hemlock advertising last year was approx- 

 imately $11,000, while that of the Birch will be about $12,000 when 

 all bills are settled. 



"This does not include charges for a great deal of printed matter 

 which is being mailed out continually, but which was printed last 

 year or in earlier years. I am very glad to be able to report that 

 there is no deficit in the Birch account which will not probably be 

 met after final settlements have been made as of January 1st, unless 

 your final shipments reports are much below the careful estimates 

 which we have used as the basis for our expenditures. There may 

 be a deficit in the Hemlock account." 



Mr. McCullough concluded his report with the statement that he 

 believed it would be a calamity for the association to discontinue 

 the advertisement of its woods at this time. He urged the continu- 

 ation of the birch campaign and the spending of more money in 

 order to do this on an enlarged scale. He advocated, also, the 



O. T. Swan, Secretary-Manager 



exploitation of maple, but advised that the hemlock publicitj' would 

 have to be discontinued, as it would be too great a burden to adver- 

 tise three woods at one time. 



Mr. McCullough was followed by Murray Springer of Crosby- 

 Chicago, the agency which has handled the advertising campaigns 

 for the association. Mr. Springer declared that the association had 

 a "tremendous opportunity to capitalize the values already created 

 by their long campaigns of publicity." The advertising has 

 already created a trade mark value in the Birch trade mark, which 

 the association can cash in on with future publicity. He said that 

 the thought on the campaign for the future is to develop outlets 

 for the lower grades. He believed that this might be accomplished. 

 Another reason he gave for continuation of publicity was the 

 "growing preference in the public mind for American woods in 

 American furniture." He cited the remarkable growth of the 

 popularity of walnut as a case in point. 



The annual address of President Fox was characteristic of his 

 commonsense philosophy. It went Lincoln's Gettysburg address 

 better by over 200 words. He said: 



"General business is improving; spring time is near, birds are 

 Qinffing in our trees; taxes are increasing; God is still in His heaven, 

 and all is well." 



Mr. Fox prefaced his "short and sweet" 

 address with the reading of a newspaper 

 clipping, which ridiculed the long drawn out 

 public address. 



In his report as chairman of the Commit- 

 tee on Legislation and Transportation, A. L. 

 Osborne, chairman, addressed himself to the 

 railroad problem and the Supreme Court de- 

 cision, upon both of which he had some very 

 pungent and pointed remarks to make. 



He declared the railroads of the country 

 arc not getting a square deal and that they 

 arc between the Devil of the Interstate 

 Commerce Commission and the Deep Blue 

 Sea of the Bailroad Labor Board. He advo- 

 cated the reduction of wages of railroad 

 labor upon the basis of the wages of lumber 

 and other labor groups. By this and other 

 means he said he would reduce the operating 

 expenses of the railroads by $900,000,000, 

 which should be followed by a rate cut of 

 $600,000,000, leaving a balance of $300,000,- 

 000 for improvement of equipment and serv- 

 ice. He said that as a representative of the 

 association in national transportation matters his first thought will 

 be to see that the railroads get a fair return on their investment. 



Mr. Osborne characterized the Supreme Court decision in the 

 Hardwood Case as reactionary and evidencing an ovorsensitiveness 

 as to the rights of the public as opposed to the rights of business 

 men. He believed that under the Hardwood Case ruling the activi- 

 ties of trade associations are likely to be considerably curtailed. 



By putting the stamp of its disapproval on trade associations, as 

 it had done, Mr. Osborne believed the Supreme Court had done the 

 public great harm, instead of good. Trade associations, he declared, 

 are beneficent, in that they protect the weak and less efficient 

 members of industry. This enables these members to survive periods 

 of depression that might otherwise wipe them out. This tends to 

 stabilize industry and prevent sharp fluctuations of production 

 capacities. Under the old cruel, ruthless method of competition, 

 which apparently the Supreme Court wants restored, the weaker 

 members of industry got no quarter during a period of stress, such 

 as we have just passed through. In the fight for business during 

 a period of low demand they would be eliminated and removed 

 from the field of production. When demand revived, only the strong 

 representing a minimum production, would have survived. Then 

 prices would soar, the strong and ruthless would hold undisputed 

 command of the markets and the public would suffer accordingly. 

 (Continued on paijc 27) 



